Privatization of urban transit: The Los Angeles jitney experience

This paper reports on a recent attempt to provide private transit in the form of jitney service in downtown Los Angeles. It describes the process undertaken to initiate jitney service and the resultant organization's structure and operation. A survey of jitney passengers provided information on the users and their tripmaking characteristics. A group of loyal jitney riders emerged who patronized the service because of its lower travel times and more personalized atmosphere. This group formed the core of frequent users. The Los Angeles experience is analyzed in terms of the economic feasibility of jitney service and the impact on the financial status of public transit. The public transit agency experienced a slight negative financial impact as a result of the jitney service. Ridership during peak hours declined somewhat but the jitney service was not frequent enough to carry sufficient passengers to allow the transit agency to cut costly peak hour service. This analysis shows that the jitney service ultimately was not an economically successful operation. The factors which would have increased the likelihood of success were increased frequency of service and higher fares, which would have been sustainable if not for unexpected developments in public transit financing. A labor pool willing to work for low wages, high transit use in the central city, relatively high transit fares and the availability of inexpensive vehicles appear to be prerequisites to a successful urban jitney operation.     

Optimal transport strategies for European cities

A new procedure for generating optimal transport strategies has been applied in nine European cities. A public sector objective function which reflects concerns over efficiency, environmental impact, finance and sustainability is specified and a set of policy measures with acceptable ranges on each, identified. Optimal strategies based on combinations of these policy measures which generate the optimal value of the objective function, are identified, and compared between cities. Resulting policy recommendations are presented. The results demonstrate the importance of an integrated approach to transport strategy formulation. They emphasise the role of changes in public transport service levels and of fares, and of charges for car use. By contrast, new infrastructure projects are less frequently justified. In the majority of cities the revenues from car use charges are sufficient to finance other elements in the strategy. However, private sector involvement either in initial financing or in operation may be desirable. Revised objective functions to reflect private sector involvement are specified, and optimal strategies with private sector operation of public transport are also identified. The requirement to meet private sector rates of return for public transport operation typically results in lower frequencies and higher fares; charges for car use then need to be raised to satisfy public policy objectives, but system performance is reduced. This revised version was published online in June 2006 with corrections to the Cover Date.     

Public–private partnerships: a review of economic considerations with particular reference to transportation projects

The paper sets in context some of the more recent work that has been conducted on public–private partnerships (PPPs) in the provision and operation of infrastructure. PPPs essentially involve a government or its agent signing an agreement with a private company or consortium to supply it with services with the private sector actor involved in major elements of designing, building, temporarily ‘owning’, and running the physical assets; basically they are long-term development and service contracts between government and a private partner. The paper outlines the development of economic thinking regarding the rationale behind PPPs, the extent to which unbundling is optimal and the forms that it may take, the nature of the contracts that are enacted and their renegotiation, the awarding of contracts, and matters of possible corruption. By way of focus, it also provides some indication of what empirical studies in the transportation have thrown up regarding the outcomes of PPPs.     

Suburban service in North America today—Which way will we go?

The current situation of suburban rail services is reviewed. Differences between seemingly similar services—urban transit, commuter service, suburban rail service and regional rail -are discussed. The suburban rail commuter is described as the true intermodal traveler. Differences of the political backgrounds of the inner-city compared to the suburbs complicate implementation of programs to improve service and suggest deep problems over the long term. Because the transition of suburban rail service from the private to public sector has been so recent, it is difficult for many to recognize that the profit of the service is in the lower total transportation costs for the community as compared to a cash dividend. Existing railroad lines in many cities have the potential of being a cost-effective solution to traffic problems, although the specific solutions vary widely, ranging from the operation of new commuter trains over the lines of a heavy duty railroad (Toronto) to a completely new light rail system (San Diego).     

Reducing the cost of peak hour transit service through contracting out service

Transit service contracting has responded to fiscal and financial woes of public transit agencies as the most uniquely attractive cost‐saving strategy at present. Most transit service contracting, however, has been in the traditional provision of entire fixed route bus service or commuter express bus service, and exclusive demand responsive service for the general public or for special disadvantaged population groups such as the elderly and/or the handicapped. This paper presents a new module in transit service contracting whereby the public and private operators jointly provide the peak service on the same route and at the same time. While the public agency provides the base demand of the service, the private provider provides the excess demand, both following the same schedules and similar service arrangements. In this paper, proposed service arrangements, costing and contracting procedures are discussed. It is also reported that substantial cost savings ranging from 32 to 57% with an average savings of 48% can be achieved if the excess peak hour bus transit service on highly peaked routes in public transit agencies is contracted to competing private operator(s).     

Private tollroads in urban areas

Governments of all persuasions are increasingly seeking the participation of the private sector in the supply of transport facilities and services. Private sector participation in the financing, construction, operation and maintenance of infrastructure is considered a serious option in a number of countries in the search for ways of providing much needed investment which would otherwise be deferred. This paper considers some economic and financial problems in the private sector provision of major road infrastructure within urban areas. The main issues are attaching prices (i.e. tolls) to the provision of the service, the value of government rights which are being given up either permanently or temporarily, and the identification required by the promoters of the cost of capital which is essential information in establishing the risk. Broader environmental and equity issues are not addressed. If the approach to establishing a private presence in a previously public supply context is handled properly from the outset, the benefits can be significant. Contrarily however, the prospects could be quite undesirable if badly managed, despite the presence of an extended public purse.requests for offprints     

Commuters’ behavior towards upgraded bus services in Greater Beirut: Implications for greenhouse gas emissions,social welfare and transport policy

Climate change is one of the most critical environmental challenges faced in the world today. The transportation sector alone contributes to 22% of carbon emissions, of which 80% are contributed by road transportation. In this paper we investigate the potential private car greenhouse gas (GHG) emissions reduction and social welfare gains resulting from upgrading the bus service in the Greater Beirut Area. To this end, a stated preference (SP) survey on mode switching from private car to bus was conducted in this area and analyzed by means of a mixed logit model. We then used the model outputs to simulate aggregate switching behavior in the study area and the attendant welfare and environmental gains and private car GHG emissions reductions under various alternative scenarios of bus service upgrade. We recommend a bundle of realistic bus service improvements in the short term that will result in a reasonable shift to buses and measurable reduction in private car emissions. We argue that such improvements will need to be comprehensive in scope and include both improvements in bus level of service attributes (access/egress time, headway, in-vehicle travel time, and number of transfers) and the provision of amenities, including air-conditioning and Wi-Fi. Moreover, such a service needs to be cheaply priced to achieve reasonably high levels of switching behavior. With a comprehensively overhauled bus service, one would expect that bus ridership would increase for commuting purposes at first, and once the habit for it is formed, for travel purposes other than commuting, hence dramatically broadening the scope of private car GHG emissions reduction. This said, this study demonstrates the limits of focused sectorial policies in targeting and reducing private car GHG emissions, and highlights the need for combining behavioral interventions with other measures, most notably technological innovations, in order for the contribution of this sector to GHG emissions mitigation to be sizable.     

An actuary method for the estimation and comparison of urban bus transit cost of services

This paper presents a new cost allocation method developed for estimating the fully-allocated costs of the excess peak hour bus transit service provided by two public transit systems. The estimates were produced for the explicit purpose of carrying out a realistic comparison of these costs and the costs of the potential provision of the same service by private operators. The method utilizes the same service data for the analysis. The pragmatic estimation of the fully allocated costs of service by the public and private sectors enables a more accurate estimation of potential cost savings. Sensitivity analysis was also performed using the same costing procedure to determine the range of cost savings that are feasible in a competitive contract arrangement of private sector providers. The new method separates costs of the direct provision of service from other indirect costs and thus facilitates the identification of each cost item and its significance in comparative cost estimates.     

Managing with declining resources

Urban public transport has had broad political appeal and escalating financial support since the late 1960s. The preference has been for public ownership and operation of services with only limited private sector involvement in the provision of services in a highly regulated environment. The financial standing of public transport coupled with the likelihood of a sustained period of fiscal restraint, perhaps even a decline in available resources, has created an imperative for change. This paper argues that broad‐based acknowledgment of the financial realities, clear definition of quantifiable objectives and increased authority and control for public transport management is required if public transport agencies are to meet the challenge. A new balance between service, ridership and revenue is required. Managing with declining resources will require a financial planning approach, separation of policy and planning from operations, removal of restrictions on user choice and operator competition and increased involvement of the private sector. Substantial changes in internal organization, procedures and structures and a cost‐effectiveness orientation will be necessary.     

船检机构服务船舶修造业的策略研究

文章结合广西民营造船产业的现状,分析了民营船厂现阶段存在的主要问题,阐述了广西船检机构的技术优势,并在此基础上提出了船检机构服务民营船舶业、推动民营造船业健康发展的三方面对策。     

The independence of volume-capacity ratio of private toll roads in general networks

In a general traffic network under some widely used assumptions, this paper proves that the level of service, represented by the volume-capacity (v/c) ratio, offered by a profit-maximizing private firm on a private toll road is independent of another competitor’s choice of capacity and toll rate for another private toll road. The v/c ratio will be the same as the one provided by a centralized welfare-maximizing traffic authority. Moreover, the ratio remains the same even in a regulated market where the authority imposes a cap for the generalized travel cost on the private toll road.     

Real-time partway deadheading strategy based on transit service reliability assessment

This paper presents a partway deadheading strategy for transit operations to improve transit service of the peak directions of transit routes. This strategy consists of two phases: reliability assessment of further transit service and optimization of partway deadheading operation. The reliability assessment of further transit service, which is based on the current and recent service reliability, is used to justify whether or not to implement a partway deadheading operation. The objective of the second phase is to determine the beginning stop for a new service for the deadheaded vehicle by maximizing the benefit of transit system. A heuristic algorithm is also defined and implemented to estimate reliability of further transit service and to optimize partway deadheading operation. Then, the partway deadheading strategy proposed in this paper is tested with the data from a transit route in Dalian city of China. The results show the partway deadheading strategy with the reasonable parameters can improve transit service.     

上海轨道交通清分系统架构中应用云计算技术的探讨

通过对上海轨道交通清分系统构架的现状分析,明确清分、线路中央计算机、车站计算机等系统之间业务功能的调整方向。根据云计算技术的特点,阐述在城市轨道交通自动售检票系统中如何建立私有云计算系统、不同服务层次服务的对象以及实施的技术路线,并提出城市轨道交通自动售检票系统云计算构架的设想与模型。     

Analysis of the efficiency of local government services delivery. An application to urban public transport

In recent years in the European Union (EU), we have witnessed an externalization process of the provision of local government services, in order to separate the political responsibility and the direct delivery of the service. The reasons that justify this process are focused on the belief that the private sector is more efficient in carrying out economic activities, the pressure to reduce the public deficit and the public debt, the search for management systems that bypass public administration procedures, and the increase of control on local governments in auditing and accountability issues.The objective of this paper is to compare the efficiency of public and private sectors in the provision of urban transportation services. This paper shows the results of an empirical study commissioned by the Regional Audit Office of Catalonia (Spain), in order to evaluate the efficiency with which urban transportation services are delivered in the most important cities of this region. This efficiency study has been carried out using the Data Envelopment Analysis (DEA) model, multiple linear regression and logit and cluster analysis. The results allow us to conclude that, in the cities studied, exogenous factors are not relevant and the private management of urban transport service is not more efficient than public management.     

Inviting travelers to the smorgasbord of sustainable urban transport: evidence from a MaaS field trial

A Mobility-as-a-Service (MaaS) concept, UbiGo, was implemented in Gothenburg, Sweden, and used for a 6-month period by 195 individuals in 83 households. Four participant subgroups were identified: Car shedders, Car accessors, Simplifiers, and Economizers. A qualitative analysis revealed that the subgroups had different reasons to join the service and different expectations of the change that would occur on the basis of the altered preconditions offered by the service. Previous car users reduced their use of private car and increased their use of public transport and active modes. Participants who did not have access to a privately-owned car but thought they needed one discovered that they managed well without. Other participants were reinforced in their existing behaviors but in ways they did not envisage, depending on which goals they had at the outset of the trial. Overall, the participants were also satisfied with the service, as well as with stated changes and non-changes, even if this in some cases meant more planning. Based on the empirical findings it could be argued that a service approach, such as UbiGo, has the potential to reduce the need for private car ownership, and enable people to change their mode choices and travel patterns. The potential relies however on a number of specific features of the service of which flexibility and a need- rather than a mode-based approach are key features.     

Perceived accessibility,mobility, and connectivity of public transportation systems

Although public transportation is considered effective at reducing the external cost of driving private vehicles, many urbanites do not use public transportation. This study develops measures employing accessibility, mobility, and seamless connectivity for an entire public transportation service chain as indicators for evaluating public transport services, prioritizes underperforming scenarios from the perspective of urban travelers, and derives various market segmentation strategies that consider different socio-demographic characteristics. A conceptual model is set up herein to assess these latent constructs that describe unobservable and immeasurable characteristics. As a Likert ordinal scale can generate misleading statistical inferences, the Rasch model is used to eliminate bias generated by an ordinal scale when measuring these three latent constructs separately. The Rasch model compares person parameters with item parameters, which are then subjected to logarithmic transformation along a logit scale so as to recognize specific difficulties of service scenarios that cannot be easily eliminated by certain urban travelers. The multidimensional Rasch model also measures the perceptions of urban travelers in terms of the interactions between accessibility, mobility, and seamless connectivity of this public transportation system. While comparing urban travelers of two large cities in Taiwan, Taipei and Kaohsiung, the empirical results demonstrate that perceived accessibility, mobility, and seamless connectivity differ based on travelers’ age, frequency of weekly sports activities, and environmental awareness. This paper also advances appropriate improvement strategies and provides policy suggestions for urban planners, public transportation service operation agencies, and policy makers when they seek to create user-friendly public transportation services. The proposed approach can be generalized in other cities by considering their local context uniqueness and further evaluating their public transport services.     

Developments of CO2-emissions and costs for small electric and combustion engine vehicles in Germany

Electric vehicles have the potential to lower emissions in the mobility sector, but especially high costs might hinder their market development. This paper aims to access environmental and economic impacts and potentials by comparing CO₂-emissions and costs of small vehicles. Considering actual data it is analysed, if and under which conditions electric vehicles are financially competitive for private consumers and under which conditions emissions can be saved. For this, a multiple-stage approach is focusing on (1) emissions during production and operation, (2) private costs and (3) external costs of emissions. A model of total cost of ownership is applied for the analysis of private and external costs.Results show that emissions of electric vehicles exceed emissions of combustion engine vehicles in the production phase, but electric vehicles cause fewer emissions during operation. Total emissions can be saved by electric vehicles even with low annual driving distances (2500–5500 km/a today). Results highly depend on the form of electricity production.Today, private costs of electric vehicles exceed the costs of combustion engine vehicles. Due to cost decreases electric vehicles can gain financial advantages in the future. External costs are high, especially for combustion engine vehicles (up to 15% of private costs), but in none of the considered cases high enough to give electric vehicles a financial advantage today. This picture will change in the future.     

Solving network equilibrium problems on multimodal urban transportation networks with multiple user classes

The capacity of the high‐speed train to compete against travel demand in private vehicles is analysed. A hypothetical context analysed as the high‐speed alternative is not yet available for the route studied. In order to model travel demand, experimental designs were applied to obtain stated preference information. Discrete choice logit models were estimated in order to derive the effect of service variables on journey utility. From these empirical demand models, it was possible to predict for different travel contexts and individuals the capacity of the high‐speed train to compete with the car, so determining the impact of the new alternative on modal distribution. Furthermore, individual willingness to pay for travel time saving is derived for different contexts. The results allow us to confirm that the high‐speed train will have a significant impact on the analysed market, with an important shift of passengers to the new rail service being expected. Different transport policy scenarios are derived. The cost of travel appears to a great extent to be a conditioning variable in the modal choice. These results provide additional evidence for the understanding of private vehicle travel demand.     

Subsidizing and pricing private toll roads with noncontractible service quality: A relational contract approach

In private toll roads, some elements of the private operator’s performance are noncontractible. As a result, the government cannot motivate the private operator to improve them through a formal contract but through a self-enforcing contract that both parties are unwilling to deviate unilaterally. In this paper, we use noncontractible service quality to capture these performance elements. By employing a relational contract approach, we aim to investigate the optimal subsidy plan to provide incentives for quality improvement. We show that government subsidy is feasible in quality improvement when the discount factor is sufficiently high and marginal cost of public funds is sufficiently small. Under feasible government subsidy, we have demonstrated the optimal subsidy plans in different scenarios. Moreover, some comparative statics are presented. Based on the derived subsidy plans, we further investigate the optimal toll price. We find that the optimal toll price generates zero surplus for the private operator and positive surplus for consumers. We then make two extensions of our model to re-investigate the government’s optimal decisions on subsidy plan and toll price when her decision sequence is changed and when government compensation is present upon termination of the relationship. Some implications for practice have been derived from our model results.     

Modelling and simulation of transportation system effectiveness to reduce traffic congestion: a system dynamics framework

ABSTRACT

This paper is designed to evaluate and improve the effectiveness of transportation systems and reduce traffic congestion through the use of simulation models and scenario development. A system dynamics framework is used to test and evaluate the alternatives of future strategies for the city of Surabaya, Indonesia. Some factors affecting the effectiveness of transport systems include operational effectiveness and service effectiveness, as well as uncertainty. To improve the effectiveness of transportation systems, several strategies can be implemented, such as subsidizing public transportation, increasing the cost of private vehicle parking fees, raising taxes on private vehicles, and reducing delays in public transportation through scenario development. Scenario results show that, by pursuing these strategies, effectiveness could be improved by 80% as the impact of the increase in operational and service effectiveness, helping to mitigate traffic congestion. Congestion could be reduced to 70% (on average) due to the decrease in daily traffic.