Technical characteristics and efficiency of urban bus companies: The case of Spain

The aim of the present study is twofold. First, to provide new information concerning the technical characteristics of urban bus companies on the basis of a sample of medium and large-size cities in Spain. Second, to analyze the degree of efficiency of those companies and to quantify the reasons for this efficiency. The results should be useful in evaluating possible changes in public policies relating to urban transport, specifically changes in the way the market is organized and in pricing.The analysis is carried out by estimating a cost function. The sample is made up of a panel data set consisting of observations of nine Spanish companies that operated during the period 1983–1995. The specified functional form is translogarithmic. The output unit of measure adopted is bus*kms run. The cost function includes the network length for each company, thus permitting evidence concerning economies of density and economies of scale.The use of panel data allows us to estimate the cost function, taking into account that each company is affected by the specific characteristics of each individual city, the different features of the network in question and by different levels of efficiency. The economies of scale have been calculated, taking into account that the features of the network and of the city – represented by their specific individual effect – will vary with the company's level of output.Finally, an analysis is made of the relative productive efficiency of the companies, as well as of the variables likely to influence that efficiency.     

Accounting for emissions in the measurement of transit agency efficiency: A directional distance function approach

This paper uses a directional distance function approach to demonstrate the importance of considering a transit agency’s goal of reducing vehicular emissions as well as production of passenger or vehicle-miles, when measuring agency efficiency. This is especially critical given the increased emphasis policymakers may place on efficiency in the allocation of scarce public resources. The analysis includes 43 single mode US bus transit agencies for the year 2000. Results show only five agencies performing efficiently when emission abatement is not included in the analysis, but 22 firms are identified as efficient once emission abatement is considered. Consistent with previous studies, public agencies are found to be less efficient than private agencies, regardless of the efficiency measure used.     

Impact of weather on urban transit ridership

Utilizing daily ridership data, literature has shown that adverse weather conditions have a negative impact on transit ridership and in turn, result in revenue loss for the transit agencies. This paper extends this discussion by using more detailed hourly ridership data to model the weather effects. For this purpose, the daily and hourly subway ridership from New York City Transit for the years 2010–2011 is utilized. The paper compares the weather impacts on ridership based on day of week and time of day combinations and further demonstrates that the weather’s impact on transit ridership varies based on the time period and location. The separation of ridership models based on time of day provides a deeper understanding of the relationship between trip purpose and weather for transit riders. The paper investigates the role of station characteristics such as weather protection, accessibility, proximity and the connecting bus services by developing models based on station types. The findings indicate substantial differences in the extent to which the daily and hourly models and the individual weather elements are able to explain the ridership variability and travel behavior of transit riders. By utilizing the time of day and station based models, the paper demonstrates the potential sources of weather impact on transit infrastructure, transit service and trip characteristics. The results suggest the development of specific policy measures which can help the transit agencies to mitigate the ridership differences due to adverse weather conditions.     

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.     

The dynamics of fare and frequency choice in urban transit

This paper investigates the choice of fare and service frequency by urban mass transit agencies. A more frequent service is costly to provide but is valued by riders due to shorter waiting times at stops, and faster operating speeds on less crowding vehicles. Empirical analyses in the 1980s found that service frequencies were too high in most of the cities studied. For a given budget constraint, social welfare could be improved by reducing service frequencies and using the money saved to lower fares. The cross-sectional nature of these analyses meant that researchers were unable to address the question of when the oversupply occurred. This paper seeks to answer that question by conducting a time-series analysis of the bus operations of the Chicago Transit Authority from 1953 to 2005. The paper finds that it has always been the case that too much service frequency was provided at too high a fare. The imbalance between fares and service frequency became larger in the 1970s when the introduction of operating subsidies coincided with an increase in the unit cost of service provision.     

Coordination of urban transit services: The german model

In Germany, the need for coordination and integration of transport services has been seen as a pre-condition to improving public transportation. A major step in this direction,which attracted world-wide attention, has been the institution of the Transport Federation (Verkehrs verbund). The paper discusses the operation of the Hamburg Transit Federation and considers a number of factors which have created a favorable climate for the development of public transportation in Germany.     

Efficiency of urban public transit: A meta analysis

The aim of this paper is twofold. First, to provide a statistical overview of the literature on public transit efficiency performance. Second, to statistically explain the variation in efficiency findings reported in the literature. To this end, first some key concepts of efficiency analysis will be introduced, while next the different frontier methodologies that are used in the literature will be discussed. The empirical part of this paper consists of a statistical summary of the literature as well as meta-regression analyses for different samples of the literature in order to identify key determinants of technical efficiency (TE) of public transit operators. For a broad sample of observations, we found significant and consistent effects of the type of database, region and output measurement method. For the sample of non-parametric studies we found that the type of frontier assumptions also have an impact on the efficiency ratio. Further results show that there is no statistical difference in TE ratios between parametric and non-parametric studies. Finally, we found a positive univariate relationship between the number of inputs in the estimated specification and the efficiency ratio.     

Effectiveness and efficiency in transit performance: A theoretical perspective

This paper presents a theoretical foundation for selecting effectiveness and efficiency performance criteria and standards by transit firms. The paper demonstrates that a transit firm must first specify its effectiveness and efficiency objectives in order to select performance criteria and standards. The paper does not actually develop standards (since they could vary from firm to firm), but does conclude that a transit firm can not be effective without being efficient; transit effectiveness and efficiency are necessary conditions for transit subsides to be effective; and public transit firms should be evaluated from the perspective of the firm rather than that of government.     

Multimodal traveling and its impact on urban transit network design

Multimodal trip making, that is trips using a combination of several modes between origin and destination, is expected to be beneficial to society and might offer advantages to the traveler as well. This article looks at some of the implications of multi‐modality in trip making for the design of urban transit systems since these play an important role in multi‐modal transportation systems. In this respect, the article looks at the strategic design characteristics of urban transit networks, that is line density, stop density and service frequencies for the case of multimodal access to urban transit networks and for hierarchical network structures in urban transit systems. The analyses show that multimodal access does not require alternative network structures. For hierarchical network structures it is concluded that these are primarily determined by the hierarchy in demand densities and thus by hierarchy in urban structures.     

Estimation of urban bus transit marginal cost without cost data

We develop a method to study the industrial structure of urban bus transit without using cost data. To do so, we estimate the marginal cost function under the assumption that firms compete on frequency and adjust frequency to maximize profits. Our methodology is applied to Santiago, Chile. In this case, demand is modeled with a simplified model of transit network assignment. The goal is to consider how frequency, capacity, and on-board passengers affect the bus line’s demand. The marginal cost function is estimated by using the first-order conditions of the firm’s profit maximization problem, using the results of the demand model as data. We conclude that the urban bus transit industry in Santiago exhibits increasing returns to scale for low levels of demand and that these returns are exhausted rapidly at a moderate demand level. Additionally, firms exhibit economies of network expansion, on average.     

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.     

Productive efficiency and ownership of urban bus services

The established ownership mix of urban bus operations in Australia provides a unique opportunity to investigate the productivity differences between public and private bus service supply. Using duality theory in economics which links economic indices of factor productivity to the cost structure of a firm, we develop empirical measures of total and partial productivity of inputs, and adjust the differences for the effects of ownership status and operating environment. The evidence supports the notion that private supply of public passenger transport in general has performed more efficiently in the past than public supply, although the differences in productivity need not continue in the future.     

Estimating the influence of common disruptions on urban rail transit networks

With the continuous expansion of urban rapid transit networks, disruptive incidents—such as station closures, train delays, and mechanical problems—have become more common, causing such problems as threats to passenger safety, delays in service, and so on. More importantly, these disruptions often have ripple effects that spread to other stations and lines. In order to provide better management and plan for emergencies, it has become important to identify such disruptions and evaluate their influence on travel times and delays. This paper proposes a novel approach to achieve these goals. It employs the tap-in and tap-out data on the distribution of passengers from smart cards collected by automated fare collection (AFC) facilities as well as past disruptions within networks. Three characteristic types of abnormal passenger flow are divided and analyzed, comprising (1) “missed” passengers who have left the system, (2) passengers who took detours, and (3) passengers who were delayed but continued their journeys. In addition, the suggested computing method, serving to estimate total delay times, was used to manage these disruptions. Finally, a real-world case study based on the Beijing metro network with the real tap-in and tap-out passenger data is presented.     

Design of public transit network in urban area with elastic demand

This research focuses on an efficient design of transit network in urban areas. The system developed is used to create, analyze and optimize routes and frequencies of transit system in the network level. The analysis is based on elastic demand, so the shift of demand between modes in network due to different service level is of prime consideration. The developed system creates all feasible routes connecting all pairs of terminals in the network. Out of this vast pool of routes, a set of optimal routes is generated for a certain predetermined number that maintains connectivity of significant demand. Based on these generated routes, the system fulfils transportation demand by assigning demand that considers path and route choices for non-transit users and transit users. Together with the assignment of demand, transit frequencies are optimized and the related fleet-size is calculated. Having an optimal setting of solution, the system is continued by reconnecting the routes to find some other better solutions in the periphery of the optimal setting. A set of mathematical programming modules is developed. Real data from Sioux Falls city network is used to evaluate the performance of the model and compare with other heuristic methods.     

Computer support for operator assignment and dispatching in an urban transit system

The St. Louis Metropolitan Transit Authority, as part of a systematic program to improve maintenance on its buses, is attempting to have operators drive the same vehicle each day. A simulation model was developed for testing the feasibility of the system and testing heuristic rules for parking buses to prevent blockages at scheduled departure times. A mathematical programming procedure is used for assigning buses to runs. An interactive computer system supports parking and dispatching. This article describes the three tools and relates experience with their use.     

An integrated framework for assessing service efficiency and stability of rail transit systems

A well-designed service plan efficiently utilizes its infrastructure and ensures an acceptable level of service stability with consideration of potential incidents that disturb or disrupt the rail transit services. To perform service evaluation, an integrated process combining capacity, resource usage, and system reliability is required to quantify service efficiency and stability in a consistent way. This study adopts capacity-based indices, “capacity utilization” and “expected recovery time”, as the attributes for service efficiency and stability, and develops a comprehensive evaluation framework with three corresponding modules to incorporate capacity, service plan, and system reliability and maintainability simultaneously. The capacity analysis module computes the rail transit capacities under normal and degraded operations. The reliability module classifies and fits the proper reliability and maintainability distributions to the historical interruption data. The service efficiency and stability module analyzes the results of the previous two modules and evaluates the service efficiency and stability of rail transit service plans. Empirical results show that the established evaluation framework can not only evaluate the service efficiency and stability but also identify critical sections and time slots. This tool can help rail transit operators rapidly assess their operational changes and investment strategies related to efficiency and stability so as to provide efficient and stable services to their customers.     

Effects of contracting on cost efficiency in US fixed-route bus transit service

Contracted service comprises a significant proportion of total operating expenses in the provision of fixed-route bus transit service in the US. Despite its importance, the literature on the economic effects of transit service contracting has been limited to only a few studies since the mid-1990s, and is inconclusive due to problems with the nature and methodology of the past studies.This paper examines how the cost efficiency of providing fixed-route bus transit service varies by the degree of contracting. I make several improvements to previous studies and conduct a regression analysis that: (1) addresses the endogeneity problem between the contracting decision and cost efficiency, (2) differentiates between agencies that contract out only a portion of service from those that contract out all service, (3) takes into account the moderating effects of several factors on the effect of contracting on cost efficiency, and (4) uses a relatively larger set of cross-sectional time-series data constructed from the National Transit Database from 1992 to 2000.The analysis results show that the combined effects of contracting lower operating costs by $4.09 and $2.89 per vehicle hour for partial and full-contracting agencies, respectively, in the average case. These average cost savings translate into 7.8% and 5.5%, using the average operating cost per vehicle hour of $53.06. However, this improvement is not universal, because the effects of contracting on cost efficiency vary by factors such as peak-to-base ratio, agency size, the wage gap between bus operators in the public and private sectors, and agency type.     

Measuring the expected locational accessibility of urban transit network for commuting trips

This paper focuses on measuring of the expected locational accessibility (ELA) of urban transit networks for commuters. The ELA of the transit network is measured by a factor named expected locational accessibility index (ELAI), which is calculated based on the expected number of reachable stations with different times of transfers (ENRST) starting from any one transit station on the network. Two approaches, the sample-test-statistics method and the topological analysis method for determining the ENRST are proposed and tested with an example transit network. Finally, the proposed methods are applied to an empirical study for evaluating the ELA performance of bus transit network for commuters of Xiamen City, China. The empirical results show that the ELAI obtained by our two methods are relatively smaller than those obtained by the existing methods. The reason is analyzed to guarantee the accuracy of ELAI measurement.     

Public transit and labor market outcomes: Analysis of the connections in the French agglomeration of Bordeaux

This paper investigates the links between public transport and labor market outcomes in the French agglomeration of Bordeaux. Our objective is to analyze the effects and consequences of the construction of a tramway line in some neighborhoods and municipalities of the agglomeration. These localizations are confronted to isolation and concentration of unfavorable socio-economic characteristics. Among other things, this line has permitted to facilitate the access to the historical job center of Bordeaux for inhabitants concerned. We use difference-in-differences methods to compare labor market outcomes of inhabitants who benefit from this better access with others who do not, before and after the construction. Results show that if unemployment rate has globally decreased on the period observed, the decrease is more important for neighborhoods located close to tramway stations. More generally, it seems that the tramway project helped to reduce some socio-economic inequalities in the agglomeration of Bordeaux.