1 Integration as a competitiveness instrument for Public Transport in rural areas Helder Cristóvão, José M Viegas Integration as a Competitiveness Instrument.

1 Integration as a competitiveness instrument for Public Transport in rural areas

Helder Cristóvão, José M Viegas

Integration as a Competitiveness Instrument for Public Transport in Rural Areas

Workshop A: Design and Innovation of Competitive Public Transport do foster Patronage6th September 2005

9th Conference on Competition and Ownership in Land Transport

2 Integration as a competitiveness instrument for Public Transport in rural areas

Context

Evaluate the economic feasibility and the social interest

associated to the operation of 5 hypothetic short-range road

services to be Integrated with the existing railway supply,

aiming at the mid and long distance travellers

Present the main aspects to take into account in the

implementation of these services

3 Integration as a competitiveness instrument for Public Transport in rural areas

Contents

1. Approach

2. Context Analysis & Detection of Opportunities

3. Key Elements during Design Stage

4. Results & Conclusions

4 Integration as a competitiveness instrument for Public Transport in rural areas

Integration as a Competitiveness Instrument

Easier balance of supply & demand along the network

Possibility to provide services in new environments

More freedom in the design of the network

Promotion of use of more

than one vehicleCost

reduction

Economies of scale and

density

Reduction of Externalities

Customer Satisfaction

Economies of network

More travels

More Travellers

*If marginal passenger is

profitable

More revenue More

profit*

Less subsidy

*Longer

trips

More Competitiveness

Effects of Integration

Need to provide integration attributes

Cost increase

1. Approach

5 Integration as a competitiveness instrument for Public Transport in rural areas

Agents and Accounted Costs and Benefits

• Benefits– User: Consumer Surplus– Bus Operator: Revenue of the Service– Rail Operator: Railway Revenue Rise– Society: Fall of Non-covered Externalities

• Costs– Operation costs of the service– Railway cost rise not considered (existing slack capacity)

1. Approach

6 Integration as a competitiveness instrument for Public Transport in rural areas

Location of the studied services

200Km

Ourém

Atalaia

Golegã

Pego

S. MiguelRio Torto

100Km

Abrantes

Caxarias

Entroncamento

1. Approach

7 Integration as a competitiveness instrument for Public Transport in rural areas

Portuguese Market of Interurban mobility to rural areas

• Demand factors– High percentage of non-frequent users – High value they apparently tend to give to accessible and reliable

transportation

• Supply factors– Sprawl and low density in rural areas– Low extension of the railway network– Low accessibility (by road based PT) to the interurban railway stations

• Difficult environment for the operation of Public Transport

1. Approach

8 Integration as a competitiveness instrument for Public Transport in rural areas

Present Supply & Demand

• There are few direct services

• There are Hubs nearby that concentrate a considerable amount of services

• Private car is almost universally used on the access to the Hubs– Reduced number of local connections to the Hubs– Poor integration level of the PT system

• In general, private car is predominant in interurban mobility– Vehicle insecurity and capacity problems in Park & Ride

2. Context Analysis & Detection of Opportunities

9 Integration as a competitiveness instrument for Public Transport in rural areas

Integration influence on PT attractiveness

• Integration and Modal Choice Factors: – 3 out of 8 Modal Choice Factors are directly connected to integration– Other 2 may be indirectly connected

• Integration and the abandonment of PT: – 48% of PT abandonment is directly related to the lack of integration– Other 12% may be indirectly related

2. Context Analysis & Detection of Opportunities

Railway demand Atalaia Golegã Ourém Pego S. Miguel

No Integration 87% 25% 4% 73% 28%

With integration 92% 92% 64% 89% 76%

Railway present demand and in good conditions of integration

10 Integration as a competitiveness instrument for Public Transport in rural areas

Design Stages

• Basic Properties Design (before demand potential estimation)– Interchange location choice– Travel Time estimation– Definition of Interchange duration– Definition of Comfort conditions on board

• Full Design (according to the estimated demand potential)– Fleet size– Service Schedule– Crew Composition– Crew Schedule– Vehicle size

3. Key Elements during Design Stage

11 Integration as a competitiveness instrument for Public Transport in rural areas

Basic Properties Design

• Interchange location choice– Proximity– Diversity, frequency and pace of available services (coordination)

• Definition of Interchange duration– User’s composition and number– Vehicle’s capacity, door width and gap with the platform– Pathway’s extension, signs, stairs and obstacles– Need to buy tickets during interchange

3. Key Elements during Design Stage

12 Integration as a competitiveness instrument for Public Transport in rural areas

Full Design

• Service Schedule– Objective: Minimization of time lost per passenger or Maximization of

passengers benefiting from good connections– Restrictions: basic properties– Importance of Reliability: low average speeds or extra times for delay

absorption and work breaks

• Crew Schedule– Drivers per day: minimal break and maximum daily driving times– Drivers per week: minimal duration of the weekly period of rest– Allocation of daily shifts: minimal duration of the daily period of rest

3. Key Elements during Design Stage

13 Integration as a competitiveness instrument for Public Transport in rural areas

Need for cooperation between agents

• In most cases:– Operation Costs are not covered by the Benefits of a single agent– Benefits from all agents together cover the Operation Costs

4. Results & Conclusions

Annual Total costs and benefits

Town Atalaia Golegã Ourém Pego S. Miguel

Costs 111358€ 121604€ 119209€ 91071€ 75658€

Benefits 176209€ 141227€ 617196€ 99798€ 61168€

14 Integration as a competitiveness instrument for Public Transport in rural areas

Advantages for Local Operators

• Higher service feasibility with:– Redistribution of benefits– Price discrimination – Use of idle resources– Use of different vehicles according to demand variations

• Local operators:– Best position to achieve a more efficient use of resources

4. Results & Conclusions

15 Integration as a competitiveness instrument for Public Transport in rural areas

Opportunities, Strengths and Weaknesses

• These services bring:– Significant amount of travellers– Important accessibility improvements– Economically balanced operation

• Technical barriers are not significant:– Simple tariff integration schemes avoid the need to buy tickets during

interchange

• Main difficulties may be the need for enterprise and cultural changes:– Significant improvement on the quality standards– Cooperation between agents

4. Results & Conclusions

16 Integration as a competitiveness instrument for Public Transport in rural areas

[email protected], [email protected]

Integration as a Competitiveness Instrument for Public Transport in Rural Areas

Workshop A: Design and Innovation of Competitive Public Transport do foster Patronage6th September 2005

9th Conference on Competition and Ownership in Land Transport