A presentation depicting what are the advantages of publicly owned and operated transportation system over privately owned and operated transportation system with suitable case studies of a few big cities.
3. Public owned & Private owned &
operated : operated:
Non-government
Government-owned
companies. It
corporation or includes public-listed
state-owned and pure private
companies companies
PUBLIC OWNED, OPERATED &
PRIVATE OWNED,OPERATED
4. •Accessibility
•Affordability
•Service Standard
•Safety & Security
•Economic Viability
What do commuters care
•Commuter-Friendliness
about?
•Integration & Connectivity
•Environment Sustainability
•Supports Development & Growth
CHARACTERISTICS OF AN IDEAL
PUBLIC TRANSPORTATION SYSTEM
8. GOVERNMENT takes the first step:
URBAN PLANNING
+
TRANSPORTATION DEVELOPMENT
MARKET FORCES follow:
INCREASED ECONOMIC ACTIVITY
Public planned transportation system leads to
Value Creation
Public transportation is an Investment in Human Capital,
not merely physical assets
9. Since its launch in 1996, TRTC has played an important
role in leading urban development.
• “There is an increased vitality in urban areas, land
usage efficiency is on the rise and a wider diversity
of lifestyle choices has been made available to city
residents…”
(Extract from TRTC’s 2010 Annual Report)
• Tourism development in Xinbeitou, Tamsui
• Commercial development in Neihu
Stimulate Urban Development
10. Cost of INACCESSIBILITY is a Big Concern
• It is isolating.
• It is a downward spiral.
Poor accessibility Poor economic outcome
(joblessness, low wages, restricted upward mobility)
Conversely….
13. Public/mass transportation vs. private transportation
• More efficient use of land & energy resources
• Least pollutive emissions per passenger-km traveled
• Produces positive spillover effect
Well-planned public
transportation system meets
the challenge
14. Georgia Regional Transportation Authority (GRTA)
• Created by legislation in 1999
• Mandate:
Sustain economic growth
Maintain excellent quality of life
For the Metropolitan Atlanta region by…
Combating air pollution;
Traffic congestion; and
Tackling poorly planned development
Reviews developments with regional impact (e.g. transportation)
Sustainability
15. Georgia Regional Transportation Authority (GRTA) – cont’d
Result?
Regional growth policy map Promote
SUSTAINABLE
Regional development plan LAND-USE
Place type & development matrix TRANSPORTATION
DEVELOPMENT
Regional strategic transportation system
Area development Economic opportunities and Community
Target areas:
engagement
Housing Creation of communities
Open green spaces Quality of life
Planning
Sustainability ahead:
Sustainability Blueprint for
the Future (2011)
16. • Paris Metro is extremely concerned with its green
image.
• By 2002, 5000 RATP managers had received
environmental training
• Stated Environmental Goals of RATP: Improve the
ecological performance of the network Investigate
environmental solutions.
• Delhi Metro has won awards for environmental-
friendly practices from the UN, RINA, and the
International Organization for Standardization
• ISO 14001 certified for environmentally friendly
construction
Environmental Friendliness
19. A MORAL issue?
• Is Mobility a basic human need like water or sanitation?
• Is it an Entitlement expected by people from Governments?
Social Equity
20. Mobility tied to Social Well-being & Productivity
• Public service that should at least cater to the lowest
income group.
• Getting to the job is half the battle.
• Differentiated pricing can be used to meet diverse needs
and affordability levels.
Equity & Affordability
21. Public firms provide services even on lightly
used routes to achieve social objectives and
ensure comprehensive coverage to the
entire city.
Greater Coverage (even
on non-profitable routes)
23. • All the metro stations are accessible from any corner of the
city.
• There are feeder buses to serve area more than 10km of
metro stations at very cheap fare.
Fare structure for feeder bus as implemented:
• 0-4 KM: 5 Rs. ( 12 cents approx.)
• 4-10 KM: 10 Rs. (25 cents approx.)
• And more than 10 KM: 15 Rs.
Transport minister said
“We want the growth to be along the metro corridors. These areas should be
commercialized so that people have easy access to such places. We also want more
commercial development over the stations and other such areas.''
Seamless Transfer
24. • Delhi metro is considered one of the safest modes of
transport in India. Security is handled by the Central
Industrial Security Force (CISF).
• Over 3500 CISF personnel have been deployed to deal
with law and order issues in the system.
• Closed circuit cameras, metal detectors, X-ray baggage
inspection systems and dog squads which are used to
secure the system.
Guarantee
Safety & Security
25. Many entertainment centers and Shopping malls
remain open till midnight. Public transport is in most
of the cases made available around the clock to
facilitate transport even till midnight.
Round the Clock
Service
26. • ZVV ( Zurich transport authority) operates round the clock
and the public has practicable access to ZVV’s night-time
services.
• Given that the ZVV’s night-time network is required to
cover its costs (which is not the case for its regular
service), passengers pay only five-franc supplement on top
of the normal fare for the route.
Round the Clock
Service
29. MOSCOW
• Built in the 1930s
• 12 lines
• 180 stations
• 298 km
• World’s 2nd most heavily used subway
system, after Tokyo (~ 7 mil riders daily)
Efficient: service every 90 secs
User-friendly: clean, straightforward
system, no confusing fare zones/peak pricing
Affordable: 28 roubles or S$1.18 per ride with
unlimited transfers
Network expansion continues
Highly Efficient
30. Stockholders: National government (53.4%) &
Tokyo Metropolitan government (46.6%)
Toei Subway Part of Toei Transportation: Public corporation managed by
the Tokyo Metropolitan Government.
• Started in 1920s
• 13 lines
• 274 stations
Service: Obsessed with punctuality. • 8.7 mil riders daily
Delay Certificates are issued online and at the stations.
Any delay 15 min or more is announced on website (PC and
mobile).
Comfort: Manners! Cell phones off, courtesy seats, women-only cars.
Great service
33. • The Thatcher govt embarked on a
1980 programme of deregulation and
privatization of bus services
• Transport Act 1985: all bus services
1986 apart from those in London & Northern
Ireland were deregulated
Thus Public ownership industry declined from
75% to 5%
NOT ALWAYS PROFITABLE
37. • As a result of unhealthy competition between MTL and
Merseybus, both operators set up operations in each
others areas. This led to both operators losing money.
• Several companies had difficulties in competing or
upgrading their fleets due to repayments due to be made
on loans made to finance the privatization.
Moreover…
38. Reason for de-regularization and
privatization in UK:
To encourage
competition between
private companies to
increase services
NOT ALWAYS EFFICIENT
39.
40. • Out of all the companies privatized, just two have
managed to remain independent.
• With most of the UK's publicly owned bus operations
getting into the hands of a handful of larger bus
empires, there really isn't that much competition any
more.
• And so a state monopoly where services were run for
the good of the people, was replaced by one run for
the good of the shareholders.
The Result!
41. Privately operated trains connecting
Moscow and St. Petersburg take more
time and is more expensive while
compared to the Government operated
systems.
NOT ALWAYS EFFICIENT AND
COST EFFECTIVE
42.
43. In Kolkata, Government banned use of 15 year
old vehicles which were responsible for
substantial pollution and not at all fit to
deliver good service. But Private cab and bus
operators launched protest against the
Government with the agenda of letting them
use those old and outdated vehicles.
PROFIT-FOCUSED,
BUT NEITHER ENVIRONMENT NOR
CUSTOMER-FRIENDLY
48. RECAP: Why the PUBLIC MODEL?
• Positive externalities that accrue to the economy as a
whole:
Only the Government is willing to invest for non-financial
benefits (development, economic growth, community
building, environmental impact)
• Government entity that is highly efficient and reliable?
Absolutely possible.
It’s all in the professionalism, pride and dedication to
creating a holistic transportation network.
CONCLUSION
Editor's Notes
YSW: Changed the wordingsShld “profitable” be in there?
Gives rise to higher real estate values due to greater demand, growth of services and businesses that add to the increase in activity (which further enhances the area’s value)It means increased job opportunities and enhanced social lives of people.
Neihu Technology Park, Nangang Economic and Trade Park, Nangang Software Park, and Taipei Nangang Exhibition Center
Disadvantaged neighborhoods can be helped. Provide them with reasonable transportation options.
Estimated cost of congestion: $6 bil annually to Toronto economy
Atlanta: Explosive population growth led to inability to meet Federal Clean Air Act standardsGRTA was set up to manage growth in a sustainable manner & increase competitiveness of the region.GRTA was successful ‘cos it was granted broad power to deal with local govts to achieve the required coordination
Atlanta: Explosive population growth led to inability to meet Federal Clean Air Act standards; still the 3rd fastest growing in 2010 CensusGRTA was set up to manage growth in a sustainable manner & increase competitiveness of the region.GRTA was successful ‘cos it was granted broad power to deal with local govts to achieve the required coordination Model that was successful and continues to be in place. Plan 2040 includes a $61 bil regional transportation plan over 30 yrs.
YES. Government’s purpose is to take care of its people, esp. the most vulnerable groups/lowest strata of society – otherwise who would take care of their interests?
No one should be deprived of service simply because he or she can’t pay for it. Big problem for the working poor not only in developing countries but also first world countries like the US (spend twice the proportion of their income on getting to work vs. the non-poor).Affordable public transportation will help the financially disadvantaged people get to their jobs so that they can be self-sufficient. Stays off public assistance. Relieves the burden on govt.In the absence of a public option, private, informal and paratransit operators will step in. Provide the same service at higher cost (it’s not like the disenfranchised have a choice).Differentiated pricing – peak hours, premium service, express services, higher quality service (economy vs. business class)
More than 8 mil riders daily
YSW: Changed the wordingsShld “profitable” be in there?