This document discusses mass transit and transit consulting. It provides definitions and statistics about different types of transit systems in the US. It then outlines various areas where transit agencies may need consulting assistance, such as developing strategies, financial management, and project development and implementation. The document discusses the consultant's experience providing various transit consulting services to agencies, governments, and vendors. It also provides examples of typical transit consulting projects and cases studies. Finally, it discusses future trends in transportation, including mobility as a service and autonomous vehicles.

1. MASS TRANSIT
CONSULTING
RICH LOBRON
ADJUNCT PROFESSOR – TEMPLE UNIVERSITY
CONSULTANT – LCLADVISORS, INC.

2. WHAT IS TRANSIT?
• Mass Transit = the transportation of large numbers of people by
means of buses, subway trains, etc., especially within urban areas
• 1,295 Rural Public Transit Systems.
• 927 Urban Public Transit Systems.
• 4,500+ Non-Profit Transit
• 48% of trips = Bus
• 47% of trips = Rail  87 Systems – Light, Heavy, Commuter
• Paratransit / Demand Response
• 36 agencies in Penna – 2 rail = SEPTA + PAT
• Funded through
• Federal Transit Administration
• State DOTs
• Farebox Revenue
Source – APTA Public Transportation Factbook

3. TRANSIT NEED FOR CONSULTATION
•Assist in developing strategies
• Capital Programming
• Operations
•Assist in financial development + management
• Craft Grants Management
• Develop fare policies, sales and collection systems
• Coordinate banking + finance arrangements
•Assist in project development / implementation

4. My Transit Experience
• Directed Agencies + Government Agencies + Vendors
• Overall, Finance, Operations, Procurement, Project
Management
• Consulting to Agencies – Big and Small
• Financial Management – grant development, capital planning,
banking, finance
• Project Development – plan payment systems, develop operations
• Project Implementation – deal with problem projects, develop
solutions, manage implementation
• Consulting to Vendors – domestic + international
• Vendor financing schemes, Delivery Issues, Design Issues, Proposal
Development
• Consulting to Governments – federal, state, local, int’l
• Draft Regulations, Reorganize agencies, Cost/Benefits Analyses,
Management Reviews, Assess + Define Internal Controls - Reorg’d
FTA, ICQ for Transit, Capacity for DRC, 20 agencies for NJ

5. MY CLIENTS
Governments Agencies Vendors

6. TYPE OF CONSULTATION NEEDED IN TRANSIT
• A + E Firms – Engineering, Design
• Financial Support – financial ops, banking, financing
• Operational Support – labor, procurement, technical
• Maintenance & Transportation Operations

7. Notes re: Transit Consulting
•Transits have dual clients - government sponsors + riding public
• Environment is political as well as standard business
• Often face severe financial impediments
• Most have sensitive relationships with bargaining units
• Manage interface to senior management + Board + press at all
times
• Demonstrate financial / operational impacts of all proposals
• Management (and consultants) must be Flexible and Creative

8. Sensitivity to Public Concerns
•Sensitivity to public sensitivities – fares and on-time
• Primary Public Interface with system = farebox
• Must run on-time
• No embarrassments
•Other Key Factors
• Need Pleasant / Happy Operators
• Safe, Comfortable, Reliable Equipment
• Safe Operations – Speed, Suspension, Fire Prevention
• No embarrassments

9. Government Sponsor Concerns
• Financial Solvency
• Reduce strain on public resources
• Provide “ribbon-cuttings”
• Avoid issues with major projects
= schedule, budget, minor scope issues
• Ensure safe operation
• Address Public Concerns
oMaximize on-time performance
oMinimize fare impacts
oAttractive services for specials = seniors, disabled, students
oDiscounting for specials = seniors, disabled, students
oNo embarrassments

10. Types of Issues / Solutions
•Capital Project Management
• Project Selection
• Project Financing
• Project Management functions- budget, scope, schedule, HR, QC, Risk,
Communications, Procurement; Red / Yellow / Green Projects
•Craft fare policies – manage fare ratio
• (farebox revenue / operating expense)
•Care of Vehicle Fleets
• Design / Delivery of new fleets
• Periodic Overhauls – engines, transmissions, brakes, HVAC
• Standard Preventive Maintenance protocols
•Care of Facilities
• Periodic Overhauls – roof, HVAC, painting, etc.

11. CASE STUDY - Payment System Project
• Project Scope = install ”smart card” system for transit ops.
• Project 3 years behind schedule
• $8 million expended to date with no results
• 500,000 patrons daily
• 62 Revenue Instruments; Base Fare = $1.00; Fare Ratio = 12%
• New system required to allow fare restructuring + save operating costs
• Major news story in region – TV + Press
• TASK FOR CONSULTANT - Can YOU get system turned on?
• CONSULTANT QUESTIONS
• What is wrong?
• Why is Project Late?
• Does Technology Work?
• How get project on track?
• How improve financial benefits from program (ROI)?

12. CASE STUDY QUESTIONS
• How determine project status? Why is it late?
• Does Technology Work?
• How ascertain issues to get project back on-track?
• What steps to take to resolve identified issues?
• Will system improve agency finances / public interface?

13. TIME TO THINK / DISCUSS

14. QUESTIONS FOR CONSULTANT TO EXPLORE
•Who is in charge of project?
•What is technical status of deliverable?
•Can issues be resolved? How?
• Technical issues?
• Procurement issues?
• Project Management issues?
•Financial impacts of new technology – how maximize impact?

15. ACTUAL CASE FINDINGS
• Who is in charge of project? NOONE
• What is technical status of deliverable?
 ALL COMPONENTS FAILED TESTS
• Can technical issues be resolved? How?
 REPLACE VENDOR, Do new procurement with better project mgmt.
• Financial impacts of new technology – how maximize impact?
MODIFY DISCOUNTING, USE NEW CAPABILTIES

16. CONSULTING TASKS NEEDED
• Technical
• Test Systems
• Determine if replacement technology needed
• Procurement
• produce new RFP and transaction using federal and state rules
• Financial – develop new discounting / fare structures
• Operating – define new methods for O+M and driver actions
• Marketing – define new interface with public
• PR – present ongoing project status to TV news and press
• Labor – deal with bargaining units on new functions
• Policy – deal with Board on new fare policies, change orders

17. ACTUAL CASE ACTIONS
•Establish person in charge
•Deal with vendor on resolving technical issues
•Replace vendor and find alternative path
•Define new sales and tolling structures using
• Define new revenue instruments to public – 62 to 1
• Revise Discounting – 5 for 50
• New Sales methods = Ambassadors
• New Tools to perform transactions = BBR – back of bus with store + internet
•Define Marketing protocols

18. RESULTS FROM CONSULTANT
• Defaulted original vendor (national leader)
• Designed, procured and installed new system in 6 months
• Prove Proposed System in Revenue Service in past 2 years
• Established new sales program
• Ambassadors to teach public new systems
• Improved fare ratio by 25% with no change to base fare, new
discount – 5 free rides for 50 paid
• Provided new method of reloading cards – BBR on bus
• 80% using cards vs. cash to board
• 85% use BBR to reload vs. stores or website

19. Consulting Projects Defined
•Six Years at site
•Finished smart card project
•Proceeded to deliver toll road project – also 3 years late
• Find vendor for toll systems
• Manage design and installation of highway + collection system
• Manage toll policy development
• Develop creation of new tolling operation

20. Future of transit = Mobility as a Service (MaaS)
• Through a mobility management program, the patron is provided
 Access to multiple modes with a single source of information,
 Ability to pay for multiple modes with a single payment device
 Mechanism to plan travel using multiple modes + carriers.
• MaaS delivers
 Multi-Modal Transportation
 Managed First-Mile / Last Mile movements using non-public providers
• MaaS requires partnerships + communication among transport providers
• MaaS focuses on meeting individual customer needs through a wide range of
transportation options and service providers Link trip planning with payments
• Mobility managers serve as policy coordinators, operations service brokers, and
customer travel navigators.

21. Transit
TNC
Taxi
SOV
TNC
All Modes
Metro
MaaS is ACCESSIBLE

22. Single Transportation Payment Tool
• Link tolls, transit fares, parking, ride/bike share payment tools
into single methods for patrons
• Allows better management / delivery of Demand Response /
Paratransit Service
• Better fleet management / dispatching capabilities
• Better method to collect / manage revenues
• With linkages between public transit and private ride and bike-
share operators, a patron can plan and pay for a trip using
multiple providers using a single payment instrument and
transaction.

23. Effective mobility management programs
• Require tools such as:
• Consolidated payment technology with acceptance and settlement across
multiple providers
• Trip planning with information from fixed route transit, shared ride, shared
bike, demand response transit
• Vehicle siting sourced from fixed route transit CAD/AVL, transit demand
response, shared ride and shared bike sources.
• Data generated by the fully integrated trip planning and payment
tools can provide
• regional planning organizations (MPOs) and operators with exceptional “Big
Data” protocols that can be employed to effectively manage transportation
movements in a region through better curb management and traffic planning

24. MaaS Creates
ENERGY
• Decreased Congestion
• Promotes Alternative Fuels
SOCIAL EQUITY
• Increases alternatives for disadvantaged
users (Disabilities, Language, Income)
INCREASE MODAL
OPTIONS
• More green modes
SUSTAINABILITY
• Adaptable to
new technology
• Services
motorized and
non motorized
modes
SAFETY
• Reliable, safe options
• Reduce SOV travel
• Reducing congestion
GEOGRAPHICALLY AGNOSTIC
• Urban
• Rural
FEASIBLITY
• Can implement by Dec 2019

25. Success of MaaS
•Will rely heavily on development of open architecture and
system integration capabilities
• Link legacy planning payment systems to singular platform
• Mechanisms such as a APIs to allow separate systems to work together
with legacy systems in delivering payment planning and analytical
services.

26. OTHER FUTURE TRENDS IN
TRANSPORTATION
•Autonomous / Connected Vehicles
•Subscription Services – consolidate costs
for vehicle ownership into single payment
tool = all maintenance + insurance
addressed by OEM

27. THANK YOU
•Rich Lobron – LOBRON@TEMPLE.EDU
LCLADVISORS.COM