Public transit service operation strategy under indifference thresholds‐based bi‐modal equilibrium

This paper investigates public transit service (fare and frequency) operation strategies in a bi‐modal network with assumption of indifference thresholds‐based travelers' mode choice behavior. Under such behavior, users would switch to a new mode only if its utility is larger than the utility of current mode plus a threshold. The concept of indifference thresholds‐based bi‐modal equilibrium (ITBE) and the properties of the ITBE solution are explicitly proposed. Considering transit operator's different economic objectives (profit‐maximizing, no‐deficit and total system cost‐minimizing), the effect of indifference thresholds on transit fare and frequency schemes is studied. Some numerical experiments are accompanied to verify the theoretical results. Copyright © 2016 John Wiley & Sons, Ltd.     

What Happened to the National Road Carrier in a Post‐Communist Country? The Case of Poland's State Road Transport

Abstract

The purpose of this article is to seek to reconstruct the ownership transformation involving Poland's State Road Transport (PKS) companies passed through after 1990. Data collected from various sources (above all the Internet) were used to establish the degree of advancement of the transformation processes. Despite the passage of 18 years since the new economic reforms were launched, privatization processes are not well advanced. State ownership remains dominant, in the form of Treasury companies as well as state‐owned enterprises. Privatization processes have encompassed fewer than half of all firms, the most popular form taken (in about a quarter of all analysed cases) involving leasing by workers. This would seem of major interest, attesting as it does to the greater activity of some worker's teams, as well as the passive role of the state in privatization processes. A much smaller number of firms (26) have been purchased by external investors, the only important international concern among these being Veolia, which had taken control of 11 PKS companies as of mid‐2006. By and large, it is the firms carrying passengers or passenger and goods that are in a much better situation, as opposed to the companies that are commodity‐carriers only. The majority of the latter have collapsed, or have undergone the kind of privatization that involves simultaneous shutdown. Mixed passenger and goods carriers have had to reduce their level of activity in commodity transport.     

Organizational form and performance in urban mass transit

Ownership and management for urban mass transit organizations have taken many forms over the years, with publicly‐owned and managed systems now dominant. In recent years, however, strong economic and political forces have increased pressures for privatizing urban mass transit services. This review analyses 20 studies from three countries (predominantly the U.S.A.) on the relationship between organizational form and fixed‐route bus transit performance. It concludes that previous research has not made a persuasive case for the whole‐scale privatization of either ownership or management of urban mass transit organization. Conclusions here are intended to apply to the U.S.A. as well as other countries with mixed enterprise systems in which choices about organizational form may have some consequence for performance.     

Organizational and Ownership Transformation in Poland’s Urban Transport Companies

Abstract

This paper seeks to reconstruct the organizational and ownership transformation involving Poland’s urban transport that companies passed through after 1990. Data collected from various sources (above all the Internet, including the Bulletins of Public Information) were used to establish the degree of advancement of the transformation processes. Despite the passage of nearly two decades since the new economic reforms were launched, the privatization processes involving enterprises of municipal origin are not well‐advanced. There is not a single private company among the organizers of urban transport. Instead, an absolute domination of budgetary‐sphere entities may be noted. Furthermore, there are seven transport municipal unions. Among the operators (carriers) public ownership remains dominant in the form of single‐person local authority companies, local government companies, municipal union ownerships, municipal companies as well as budgetary units. Privatization processes have encompassed fewer than 10% of all operators in the form of companies with foreign participation, workers’ companies and companies with Polish non‐public sector participation. Moreover, in 20 localities urban transport is supplied by multi‐trade municipal services enterprises (as of end‐2008). Thus, transformation processes, though started earlier than in the case of Poland’s State Road Transport coach companies, are much less advanced.     

Public transport enterprises in transition

Since the mid-1970s many western governments have felt that liberalization of market forces through deregulation and better control or privatization of public enterprises would raise productivity and reduce inflation and government deficits. This paper reviews the recent literature on public enterprise and draws on the Canadian experience. It discusses the rationale for and concept of public enterprise and focuses on two reform proposals, accountability and privatization. To increase the degree of accountability would require, on the one hand, that the government establish a formal mandate and role for the enterprise and periodically provide formal government directives, and on the other hand, provide an appropriate evaluation framework. Government compensation for imposed public duties is addressed. Full or partial privatization should be pursued when the rationale for a public enterprise has been significantly altered. This applies particularly to public transport enterprises which are in competition with the private sector.An earlier version of this paper was presented at the Fourth World Conference on Transport Research, Vancouver, Canada, 1986. The author wishes to acknowledge the financial support of the Research Branch of the Canadian Transport Commission, and the valuable input provided by Dr Gennady Orzornoy.     

Approximate procedures for planning public transit systems: A review and some examples

The approximate analytical models of public transit systems are reviewed. First, the derivation and formation of the standard model form is presented. Once the model is explained in general terms some practical planning applications are considered and evaluated. The model type presents an invaluable tool to the transit planner but a few operational problems need to be considered. Further benefits to the planning professionals would be realized if researchers were to devote more effort to sensitivity analysis as a means of determining which system parameters have the greatest impact upon the operation of the transit system.     

Transit pricing research

Several decades of research on transit pricing have provided clear insights into how riders respond to price changes in both the transit and automobile sectors. For the most part, riders are insensitive to changes in either fare levels, structures, or forms of payments, though this varies considerably among user groups and operating environments. Since riders are approximately twice as sensitive to changes in travel time as they are to changes in fares, a compelling argument can be made for operating more premium quality transit services at higher prices. Such programs could be supplemented by vouchers and concessionary programs to reduce the burden of higher fares on low-income users. Also, cross-elasticity research suggests that higher automobile prices would have a significantly greater affect on ridership than lower fares. Most research on transit fare structures shows that the common practice of flat fares is highly inequitable, penalizing short-distance and off-peak users. Free fare programs have proven quite costly for each new transit user attracted and have rarely lured motorists to transit. Free fares limited to downtowns have been more successful than systemwide free fare programs. While prepayment schemes have met with success in the U.S. and Europe, honor fares have suffered from excessive revenue losses in at least one case in the U.S. Some of the more noteworthy fare policy successes in North America have been Bridgeport's combined pass-fare program, Allentown's deep discounts, Ottawa's major fare reduction and differentiation, and Columbus's substantial midday discount. As paratransit and other new transit alternatives to conventional bus continue to emerge, new, more differentiated fare practices can be expected in the future.     

Local public support for an innovative transit system

Little is known about the sources of public support for transit systems even though the perceptions of transit users and potential users have been extensively documented. Research reported here examines dimensions of public support for the first U.S. downtown people mover during three critical phases in the system's life: construction, shakedown, and operations. The method employed was a community sample survey with home interviews. Data analysis showed that the public—who were virtually all nonusers—were largely favorable toward the system during the construction phase. During the shakedown phase, when system reliability was extremely low, many attitudes toward the system became less favorable, especially perceptions of performance and direct community impacts. Later, reliability improved, and attitudes which had become less favorable tended to grow more favorable once again. It is suggested that a system's performance can influence many aspects of public support for a transit system, even among nonusers. This pattern has implications for system planners who must depend on public good will for continuing support of transit systems. In particular, extensive pretesting of new systems should occur before the fare gates are opened to patrons.     

Port privatization policy and practice

In recent years a significant number of countries have implemented policies aimed at reforming their port industry. In the belief that it will improve efficiency and reduce the heavy financial burden placed upon governments that attempt to support such a capital-intensive industry, privatization has often formed an important strand of such policies. A key claim in favour of privatization is that the transfer of ownership from public to private hands will ultimately lead to an improvement in economic efficiency and, hence, financial and operational performance. This paper investigates the theoretical underpinnings and practical validity of this claim and concludes that privatization is only a partial cure for what ails the world's ports and that, if implemented in isolation, it simply cannot deliver the much-needed panacea for the industry's woes.     

An economic theory of the public transit firm

This paper presents an economic theory of the public transit firm that considers the public transit firm's operating objectives related to size maximization and cost minimization as well as its operating options and passenger quality-of-service characteristics. The theory indicates that the variables to be used in the performance evaluation of a public transit firm are its operating options and fare. A single measure for transit performance evaluation is the shadow price in maximizing passengers subject to an overall deficit constraint (to be financed by government).     

The methodology of multiple criteria decision making/aiding in public transportation

The paper presents methodological overview of the application of Multiple Criteria Decision Making/Aiding (MCDM/A) in public transportation. It explains why MCDM/A methodology is so important while dealing with different categories of decision problems that arise in mass transit systems. Major features and basic notions of MCDM/A methodology are presented. Different categories of MCDM/A methods are characterized and classified. Two case studies demonstrate possible applications of MCDM/A methodology in public transportation. In the first case study multiple objective evaluation of the mass transit system developments' scenarios is carried out. Four variants of the mass transit system are evaluated by a consistent family of criteria with an application of ELECTRE III method. The second case study refers to optimization of the crew size in the mass transit system operated by a public transportation company (PTC). Multiple objective mathematical programing problem is formulated and solved by a combination of an original, customized heuristic procedure implemented in a computer software PEOPLE and the Light Beam Search (LBS) method. Copyright © 2010 John Wiley & Sons, Ltd.     

Appropriate mass transit for developing cities

This paper is concerned with the majority of developing nations who lack large resources for public sector projects. It questions the basis of much mass transit planning and attempts to put forward a more efficient way of reaching decisions. It calls extensively on experience of Metro Manila, capital of the Philippines, where an innovative system of metropolitan planning and administration is throwing a new light on ‘appropriate’ investment in such developing cities.

Mass transit systems as currently conceived in such developing cities—fully segregated rail‐based systems—are unlikely to be affordable (at least for many years) and in consequence scarce resources should not be devoted to developing and evaluating them. Rather, the principal objective should be to provide low‐cost, affordable mass transit—affordable to governments and to passengers. This almost certainly points to road‐based systems, or predominantly at‐grade light rail transit (LRT) systems, which are usually regarded as ‘obviously unworkable’ in developing city environments.

This judgement is questioned and it is suggested the potential of LRT to provide appropriate low‐cost mass transit is not being realized. An approach to determining its potential applicability is proposed. If feasible it should be evaluated against road‐based systems before decisions to implement new mass transit systems are taken.

While circumstances vary between countries the central message of this paper—that public sector resources have a very high opportunity cost which make all but the lowest‐cost mass transit systems very difficult to justify—will hold in all but the higher‐income developing economies.     

Characterizing,measuring, and managing transit service quality

Recent studies to evaluate the quality of transit service are generating a good amount of renewed interest in an old idea, the passenger's perspective; this new interest stems from recognizing that transit service quality should be characterised, measured, and managed by parameters capturing both passenger and transit operator perspectives. However, although the selected parameters are user‐oriented in their input, the output may not be as user‐oriented as considered, and the number or the percentage of passengers is often neglected. As a result, the findings are often misleading because the perspectives of transit operators dominate. Therefore, academics and practitioners must rethink their strategies of quality analysis of public transportation by stressing more on the role of passengers. These challenges are addressed in this paper with a practical, simple, and holistic framework, for Transit Quality (TRANSQUAL). This framework provides for the involvement of all stakeholders in the characterisation, measurement, and management of the stages of quality monitoring, which is jointly analyzed at different planning levels. In the characterization stage, the framework supports the selection of parameters to be monitored. The measurement stage sets and measures four quality areas in terms of percentage of passengers who expect a predefined level of service, for whom the service is designed, who receive the planned service, and who perceive the service as delivered. The management stage computes the differences between these percentages, points out criticalities, and recommends corrective actions. These stages are investigated in‐depth, integrated, and discussed in a real‐life case study. Copyright © 2016 John Wiley & Sons, Ltd.     

Consequences of public ownership and subsidies for mass transit: Evidence from case studies and regression analysis

The trend toward public ownership, public regulation, and public subsidization of the U.S. transit industry has recently come under attack. Many argue that the result has been reduced productivity, increased costs, and very little real benefit. This article examines the impacts of subsidies and public ownership in four large transit systems that cover a range of transit system types and financing arrangements. Evidence from the case studies is compared to the results of both time-series and cross-section regression analysis of operating and financial statistics for large samples of bus systems. Although the case studies and the regressions rely on different datasets and different techniques, they support the same conclusions. Increased subsidies and public ownership have kept down fares and permitted service expansion, but have also encouraged wasteful cost escalation. Thus, transit riders unquestionably have benefited from public takeovers of transit systems and burgeoning subsidies, but not nearly as much as they would have benefited if costs had not skyrocketed at the same time.     

On the financial viability of mass transit development: the case of Hong Kong

Mass transit projects are often a top contender of many cities to meet their increasing demand for travel. Despite the global trend of privatization, mass transit services, as public goods, remain largely being provided and operated by the public sector. Hong Kong is one of the few exceptions that all mass transit services are commercially operated. Both rail and bus services in Hong Kong are reputable for their quality and profitability, often serving as benchmarks for new projects. In this study, we investigate the factors contributing to this success. In particular, we ascertain the quality of transit service provision by the private sector over the past two decades. Then, we conduct an in-depth analysis of the account books of leading railway and bus operators in Hong Kong so as to shed light on their financial viability. Through this study, we hope to present crucial factors for providing financially viable private transit services.     

Survey of pedestrians' crossing time at non‐signalized mid‐block street crossing

At non‐signalized mid‐block street crossings in China's cities, pedestrians often weave between motor vehicle flows. This paper investigated the influence patterns of the gender and age of pedestrians, the presence of a pedestrian group, vehicles' interference and the crossing direction on the crossing time at non‐signalized mid‐block street crossings in Changsha, China. The results show that the crossing speed is approximately 1–1.1 m/s; the crossing time increases with increasing age, and the crossing speed of a pedestrian will be quicker when the time gap between the pedestrian and the oncoming vehicle is smaller if he/she decides to cross. This paper also analyzed the crossing time pattern when pedestrians cross lane by lane and found that pedestrians spend the most time crossing the first lane and the least time crossing the middle lane, regardless of whether they are crossing from the curb to the central island or from the central island to the curb. The crossing speed is an important input to the design of pedestrian facilities, so these findings can be applied to the assessment of pedestrian crossing safety in China's cities and can provide a basis for the design of pedestrian crossing facilities. Copyright © 2017 John Wiley & Sons, Ltd.     

Bus routing strategies in a transit market: A case study of Hong Kong

Conventionally, the objective of transit routing is often set either to minimize the total operational cost, subject to a given level of service quality, or to maximize the service quality at a given acceptable cost. In a deregulated, commercial‐based environment however, such as bus and railway operations in cities of the UK and Hong Kong where several private firms compete in route‐based or area‐based market, routing becomes one of the means for higher returns rather than just for cost saving. In such a case, how do the transit providers set up their routes for profit‐maximization? Will the routing based on the provider's objective meet the user's objective? How do government regulations and policies affect the choice of transit provider's routing strategy? To answer these questions, we first examine the relationship between the objectives of users and transit providers, set up criteria for transit routing quality, and then investigate the possible routing configurations/patterns for a hypothetical case. These criteria include (1) the load factor of transit, (2) the level of route directness, (3) the level of route overlapping, and (4) the total number of routes and (5) the average of route length. These measures are finally applied to a real case in Hong Kong to examine the route changes of Kowloon Motor Bus from 1975 to 1995. The result of the empirical case reveais how key measures such as load factor are controlled by the bus operator and affected by government policies and how the bus routing pattern was adjusted to meet users' need. Facing the dilemma as evident in Hong Kong between the route directness and the efficiency of road use, we suggest that a rational multi‐modal routing structure be put in place if an institutional solution is introduced so that bus and other transit modes can form a sharing program or an alliance.     

From ‘Our Air Is Not for Sale’ to ‘Airtrack’: The Part Privatization of the UK's Airspac

Air traffic in the UK has increased rapidly in the past two decades and is forecast to grow at a rate of 4.3% per annum between 1998 and 2020. The failure to develop the air traffic system in order to cope with this growth has had undesirable consequences, e.g. a rise in flight delays and near misses. Given the investment required in air traffic control systems to cater for this growth, the UK government in 2000 part privatized the National Air Traffic Services (NATS), the body in charge of the UK's airspace in a public–private partnership (PPP). The UK Airline Group acquired 46% of NATS and effective operational control, though the government retains a share in NATS and safety regulation is in the public sector. However, serious doubts about safety were raised during the debate on the PPP. Similar moves towards a commercial operation (i.e. corporatization) of air navigation services have been made in New Zealand and Canada over the past decade and these provide useful insights into the results of the corporatization process. This paper analyses the main issues surrounding the part privatization of NATS. First, it highlights the experience from New Zealand and Canada of the major issues involved in corporatized air navigation services in six different categories: funding, new technology and project management, safety, pricing regime, international opportunities, and customer responsiveness. The likely impacts for NATS given the lessons from New Zealand and Canada are considered. The UK government's provisions for the PPP and their implementation in the post‐PPP NATS are then outlined for these six categories. Finally, the 11 September 2001 terrorist attacks have had major impacts on air travel and their consequences for NATS in the six categories are highlighted. This paper concludes with some of the issues that need to be addressed to ensure the success of the PPP for NATS.     

Transport in Brasilia: the limits of aesthetics

The idea of moving the capital of the country from the coast to Brazil's vast but isolated interior goes back nearly two centuries. The basic motivation was to encourage construction of a national highway system, which in turn would encourage economic development of the interior and reduce regional disparities. The construction of Brasilia was an integral part of President Kubitschek's national development programme in the late 1950s, accompanied by expansion and sophistication of the energy, steel, automotive and road building industries. By 1975, highway transport times and costs had been reduced to some 20–26% of their former levels in most regions, with the Central‐West, where Brasilia is located, being the area with the greatest cost reductions. Despite the success of this development package, Brasilia's transport system has been less successful on a local and regional basis. Most of the problems within the city proper (the Pilot Plan), are due to the excessive emphasis on facilitating car traffic to the disadvantage of buses and non‐motorized traffic, while there are no local rail services. The regional transport problem stems from the location of the satellite cities far from the Pilot Plan, forcing low‐income bus riders to spend 3–4 hours daily in transit and up to 30% of the minimum wage on the journey to work. Improvements depend on institutional and policy changes affecting locational patterns, demand peaks and modal split.     

Transit trip distribution model considering land use differences between catchment areas

Sustainable land use planning and advanced public transport system are believed to be effective solutions to traffic congestion. To this end, it is important to reveal the relationship between transit ridership and land use. However, current Direct Ridership Models only focus on the relationship between single station's boarding volume and the corresponding catchment area land use. This paper analyzed the ridership distribution between transit stations by considering the land use difference between catchment areas. Land use difference was calculated from point of interest (POI) data extracted from an electronic map of Beijing; transit trip distribution volume was obtained from ‘automatic fare collection’ facility. After data specification, a transit ridership distribution model was proposed and calibrated. The calibration results suggest that land use difference has a directly proportional correlation with transit ridership distribution. The research findings build a bridge between detailed urban form and public transport, which is of significance for the further research of sustainable urban planning. Copyright © 2016 John Wiley & Sons, Ltd.