1 Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu ENVS 3029 Transport Policy and Planning Fare Reduction on TfL’s Tube and Rail Services by Mayoral Candidate: Caroline Pidgeon Consultancy Group 6: Jannat Al-Khanizi, Shivani Bhatnagar, Aishah Mazlan, Janey Lin Zhao, Weihan Zhu
19
Embed
2016 Mayoral Candidate Caroline Pidgeon's Transport Policy Report
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
ENVS 3029 Transport Policy and Planning
Fare Reduction on TfL’s Tube and Rail Services
by Mayoral Candidate: Caroline Pidgeon
Consultancy Group 6: Jannat Al-Khanizi, Shivani Bhatnagar, Aishah Mazlan, Janey Lin Zhao, Weihan Zhu
2
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
Content
1. Introduction 1.1 Inequality of Transport Pricing on Lower-Income Workers 1.2 Overcrowding 2. Policy Context 2.1 Existing Conditions 2.2 Proposed Policy 2.2.1 Policy Objectives 2.2.2 Funding Scheme
3. Policy Assessment 3.1 Case Studies 3.1.1 Singapore 3.1.2 Melbourne 3.2 Critique- Social Purpose: Improve the Welfare of Lower-Income Workers 3.2.1 Unclear Implementation 3.2.2Benefitinggroups 3.3 Critique- Transport Purpose: Tackle overcrowding and spreading peak demand 3.3.1 Travel patterns of lower-income workers 3.3.2 Price elasticity 3.4 Funding Mechanisms
4. Conclusion (Improvements) 4.1 Social Purpose Improvement 4.1.1 Eligibility Requirements 4.2 Transport Purpose Improvements 4.2.1 Focused Implementation 4.2.2 Designated Transport Links for Implementation 4.2.3 Discount to Card Users Only 4.3 Funding Scheme Improvements 4.3.1 Long-Term Funding Mechanisms 4.3.2 Transferable Funding Mechanisms from Case Studies
5. References
3
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
1. Introduction
In May 2016, London is looking to elect its new mayor. In this crucial time, candidates have
strategically addressed the city’s daily and chronic challenges by devising transportation
policies. A prominent theme is to address the rising costs of public transport, and the inadequate
capacity of the transportation system following the growing demand (Mayor of London, 2013).
challenges albeit from a social standing. Her campaign launched with a commitment to tackle
thebarriersthat‘’make London a city that serves the few, not the many” (Webber, 2016).
4
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
Challenges to be AddressedThisreportwillexaminethe‘HalfPricebyHalfSeven’.Thechallengesthatitattemptstosolveare: 1.1 Inequality in Transport Pricing for Lower-Income WorkersA critical problem with public transportation in London is the associated cost. A study by London Travel Watch (2015) showed the disproportionate expenditure of travel costs incurred by lower versus higher earners. Where higher earners spend 6.8% of their income on travel, low earners spend as high as 9.2% (p.3).Pidgeon’spolicyaddressesthisgapthroughafarereductionschemetargetingthelower-incomeworkers.
1.2 OvercrowdingOvercrowding in a successful and busy transport system does not only occur because of a shortage of infrastructure, but more importantly due to passenger behaviour (House of Commons, 2003). Figure 1visualises thecapacity forLondon’sbusiestOverground,UndergroundandDLR routes.Therefore,candidatePidgeon’spolicyalsoattempts to intervenewithpassengerbehaviour todistributedemandbeyond and across peak hours in order to ease congestion and minimise delays.
Figure 1: Tube and DLR Spare Capacity (Source: Mayor of London, 2013)
by spreading modal usage over a wider time period. In addition, it would minimise travel delays occurring
from overcapacity.
2.3 Funding Scheme
The scheme will be funded in the first two years through a variety of methods. The main funding
mechanisms will be withdrawing funding from capital expenditure by supporting less costly infrastructural
projects. In addition to transfering funds from other operational expenditures.
Figure 4: Methods of Funding in 1st and 2nd Mayoral Years combined Source:
(Akt-uk, 2016, BBC News, 2016, Boff, 2015 and Coates, 2016)
Figure 5: Methods of Funding in annual subsequent years (Atk-uk, 2016, Boff, 2015
and Coates, 2016)
44
10
6
Methods of Funding (£ Millions) Year 1&2
End TFL Nominee Travel Card
Scrapping Garden Bridge
Silvertown Bridge instead of Silvertown Tunnel
22
10
Methods of Funding (£ Millions) Annual Funding from Year 3 onwards
End TFL Nominee Travel Card
Silvertown Bridge instead of Silvertown Tunnel (?)
?
7
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
Objective: Spread morning peak hour crowds to pre-peak hours and ease crowding (Singapore LTA, 2013).
Figure 6: Total number of commuters exiting the 16 city centre stations on weekdays (Souce: Singapore LTA, 2013)
3. Policy Assessment3.1.1 Case Studies- Singapore
Delivery: The scheme was funded by the Government and implemented by Land Transport Authority (LTA) of Singapore (IPS Commons, 2015) and more trains were injected into the system to provide additional capacity in ridership during off peak hours. More than 50 organisations partnered with the Travel Smart Programme to encourage people to shift to off-peak travel by creating flexibility for the employees to start work before 8 am (Singapore LTA, 2015).
Policy:It began as a one year trial to provide free travel on the MRT in the core city area (16 out of total 109 stations) before 7:45 am on Weekdays (excluding public holidays). Commuters exiting at these stations between 7:45 am and 8:00 am received a discount of up to 50 cents to act as a buffer measure (adult fares vary between $0.79 to $2.67). The scheme is not applicable to people beginning their journey at any one ofthespecified16stations,butattheexitstation (Singapore LTA, 2013).
Applicability to London:1. More trains were injected during the pre-peak hours to accommodate the shift which would have added to the costs.2. Trial scheme before full implementation.3. Implemented supplementary policies and work incentives to promote the early travel scheme and encourage participation (Singapore LTA, 2015).
Outcome:1. Sustained reduction of 7-8% in number of commuters during the peak morning hours.2. Ratio of travel from morning peak (8am- 9am) to pre-peak (7am- 8am) travel fell from 2.7 to 2.1- resulting in a more evenly spread ridership pattern (on the basis of commuters exiting at the designated 18 stations).3. Allowed other travel demand management schemes to be facilitated alongside it for example- Travel Smart Programme, Travel Smart Rewards and an Off-Peak Pass.4.TheschemewasextendeduntilJune2016duetoitssuccess.Afterthefirstyear,2additionalstationswere included in the free travel zone (Singapore LTA, 2015).
8
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
3.1.2 Case Studies- Melbourne
Objective: The policy aimed to shift demand from peak to pre-peak to relieve overcrowding effects.
Policy:An early bird ticket offers free travel to all passengers who complete their journey before 7:00 am. The discountwasonlyofferedfortherailelementsofpeople’sjourney.Furthermore,staffheldtheauthoritytopermit late exits due to late train services (Currie, 2010).
Delivery: 1. The scheme cost $6 million Australian dollars (approximately US$5.64 million). Most of this expense was the result of loss in fare revenues.2. The scheme was trialled on 2 out of the 15 lines on the MRT network for one year before being rolled out on all 15 in 2008.3.Theprogrampaysforitsrevenuedeficitbyrunning2.5-5lesspeaktrainloads.Furthermore,thelackofnew infrastructural requirements made this scheme a cheaper option than others to enable relatively quick change.
Applicability to London:1. Trial scheme before full implementation.2. Implemented supplementary policies and work incentives to promote the early travel scheme and encourage participation.3. Cost of running the scheme was recovered due to having to run less trains during the peak hours.
Outcomes:1. An estimated 23% of passengers have actively shifted their pattern of travel by around 42 minutes (2,000-2,600 passengers). 77% did not shift their time of travel: 67% travelled at this time originally and 10% were new commuters as the result of a growing market.2.Peaktimecrowdshavesubsidedby1.2-1.5%ofpreviouslevels.Thisequatestouptofiveaveragetrainloads being saved during the peak hours (3% of total peak trains). However, demand has grown to outweigh this effect and overloading has increased since the introduction of this scheme.3. Peak travel during 7:00-8:00 am has reduced however the results between the more critical time period of 8:00-9:00 am are low.
8
9
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
3.2 Critique - Social Purpose: Improve the Welfare of Lower-Income Workers
This section will assess the impacts of the policy objectives and the viability of each based on available
scheme will be funded beyond the two years discussed in section 2.3. There is ambiguity on how much
funds will be allocated towards the policy beyond the second year if there were less freed funds from
projects such as SIlvertown bridge for example.
13
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
Figure 12: Funding Mechnism Critique
14
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
4. Conclusion (Improvements)ThispolicysubmittedbyCarolinePidgeondoesnotsuggestaspecific timeframe for implementation.With the proposed improvements, this policy has the potential to become a more viable option in the long term. Improvements provided in this section tackle the critiques that have been discussed earlier (section
3).
4.1 Social Purpose Improvement4.1.1 Eligibility Requirements
people must switch to earlier travel to run fewer trains during the peak hours. Secondly, the pre-peak
frequency of trains should accommodate the extra load from the modal spread without need for an extra
injection of trains into the system. If the pre-peak number of trains stays the same and the peak number
of trains decreases, TfL could recover money on the lost revenue through fare reduction. Additionally in
Melbourne, the fare reduction scheme induced demand, increasing the amount of fare paying customers
which also contributed to compensating for the implementation costs (Currie, 2009).
17
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
5. ReferencesAkt-uk.com, 2016. Silvertown Bridge, [online], Available at: http://akt-uk.com/projects/silvertown%20bridge, [Ac-cessed: 17 March 2016].
Apsco, (n.d.). Which London Underground tube line has the wealthiest commuters?, Available via: http://www.apsco.org/article/which-london-underground-tube-line-has-the-wealthiest-commuters-1569.aspx, [Accessed: 10 March 2016].
BBC News, 2016. Lib Dems pledge to halve London morning commuter fares. [online] Available at: http://www.bbc.co.uk/news/uk-england-london-35236209, [Accessed: 13 March 2016].
Boff,A.,2015.ScrappingFreeTravelForTheLodgersAndFlatmatesOfTflStaff.1sted.[ebook]London:GreaterLondon Authority. Available at: http://glaconservatives.co.uk/wp-content/uploads/2015/05/Free-Ride.pdf [Accessed: 18 March 2016].
Chieppo,C.,2015.What’saFairFare?.Governing.[online]Availableat:http://www.governing.com/blogs/bfc/col-public-transportation-income-based-fare-discounts.html, [Accessed: 23 March 2016].
Coates, N., 2016. Latest News - No to Silvertown Tunnel. [online] No to Silvertown Tunnel. Available at: http://www.silvertowntunnel.co.uk [Accessed: 13 March 2016].
Currie,G.,2009.ExploringtheImpactofthe‘FreeBefore7’CampaignonReducingOvercrowdingonMelbourneTrains, in Australian Transport Research Forum. Monash University: Auckland, New Zealand, Available via: http://www.cmnzl.co.nz/assets/sm/4653/61/1100B-CurrieG.pdf,[Accessed:17March2016].
Currie,G.,2010.QuickandEffectiveSolutiontoRailOvercrowdingFreeEarlyBirdTicketExperienceinMelbourne,Australia, Available via: http://trrjournalonline.trb.org/doi/pdf/10.3141/2146-05, [Accessed: 16 March 2016].
Department for Transport DfT, 2013. Support to help with the Cost of Transport, Available via: https://www.gov.uk/government/publications/support-to-help-with-the-cost-of-transport/support-to-help-with-the-cost-of-transport, [Ac-cessed: 10 March 2016].
Department for Transport DfT, 2014. Drivers of Demand for Travel in London: A review of trends in travel demand and their causes.1sted. [ebook]London:Transport forLondon.Availableat: http://content.tfl.gov.uk/drivers-of-demand-for-travel-in-london.pdf [Accessed: 19 March 2016].
Donovan,T.,2015.RiverThamesGardenBridge:MayoraccusedofmisleadingLondoners.BBCNews.[online]Available at: http://www.bbc.co.uk/news/uk-england-london-31741802 [Accessed: 13 March 2016].
Edwards,T.,2016.SadiqKhan’s fare freezewouldcost£1.9bn,saysTfL, [online],Availableat:http://www.bbc.co.uk/news/uk-england-london-35443206, [Accessed: 22 March 2016].
Harris,S.,2015.FreetravelperkforfamilymembersandflatmatesofTfLstaff‘costsLondoners£22m.ITV.[on-line]Availableat:http://www.itv.com/news/london/2015-05-26/free-travel-perk-for-families-and-flatmates-of-tfl-staff-costing-londoners-22million/, [Accessed: 23 March 2016].
Hoscik,M.,2013.Boris:AxingTfLnomineepasseswon’tmakemoneyand isn’tworth theaggro. [online]May-orWatch. Available at: http://www.mayorwatch.co.uk/boris-axing-tfl-nominee-passes-wont-make-money-and-isnt-worth-the-aggro/, [Accessed: 23 March 2016].
18
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
Hoscik, M., 2015. Tories renew calls to axe free travel for TfL staff spouses. [online] MayorWatch. Available at: http://www.mayorwatch.co.uk/tories-renew-calls-to-axe-free-travel-for-tfl-staff-spouses/,[Accessed:23March2016].
House of Commons, 2003. Overcrowding on Public Transport, Available via: http://www.publications.parliament.uk/pa/cm200203/cmselect/cmtran/201/201.pdf, [Accessed: 15 March 2016].
IPS Commons, 2015. Shifting Travel Demand, Available via: http://www.ipscommons.sg/shifting-travel-demand/, [Accessed: 16 March 2016].
Kockelman, K., Chen, D., Larsen, K., Nichols, B., 2013. The Economics of Transportation Systems: A Reference for Practitioners. Available via: http://www.utexas.edu/research/ctr/pdf_reports/0_6628_P1.pdf [Accessed: 16 March 2016].
London Travel Watch, 2015. Living on the edge: The impact of travel costs on low paid workers living in outer Lon-don,Pp.3,Availablevia:http://www.londontravelwatch.org.uk/documents/get_lob?id=4100&field=file, [Accessed:10 March 2016].
McCollom, B. 2004. Traveler Response to Transportation System Changes. Transit Pricing and Fares. [online] Transit Development Corporation. Available via: http://onlinepubs.trb.org/onlinepubs/tcrp/tcrp_rpt_95c12.pdf, [Ac-cessed: 21 March 2016].
Mayor of London, 2013. London Infrastructure Plan 2050: Transport Supporting Paper, Available at: https://www.london.gov.uk/sites/default/files/Transport%20Supporting%20Paper_3.pdf,[Accessed:10March2016].
Newmark,G.L.,2014.ReducedFareProgramsforOlderAdultsandPersonswithDisabilities:APeerReviewofPolicies. Center for Neighbourhood Technology: Chicago.Pidgeon, C., 2015. Caroline Pidgeon to halve TfL fares for all journeys before 7.30am, Available via: http://www.carolinepidgeon.org/node/1285, [Accessed: 9 March 2016].
RMT, 2012. Threat to Withdraw Staff Nominee Travel Facilities, Available at: http://www.rmtlondoncalling.org.uk/content/threat-withdraw-staff-nominee-travel-facilities, [Accessed: 20 March 2016].
Singapore LTA, 2013. Travel Early Travel Free on the MRT, Available via: http://www.lta.gov.sg/apps/news/page.aspx?c=2&id=c3983784-2949-4f8d-9be7-d095e6663632, [Accessed: 16 March 2016].
Singapore LTA, 2015. Free Pre-Peak Travel Extended until 30 June 2016, Available at: http://www.lta.gov.sg/apps/news/page.aspx?c=2&id=02518312-ad79-43d6-948d-05729743a222, [Accessed: 16 March 2016].
Sullivan, C., and Powley, T., 2015. London Transport Funding Faces Squeeze, Available at: http://www.ft.com/cms/s/0/05d0f084-e524-11e5-a09b-1f8b0d268c39.html#axzz43oVjEllT, [Accessed: 16 March 2016].
Transport for London TfL, 2010. Understanding Visitor Ticketing, [PDF].
TfL, 2011. Travel in London, Supplementary Report: London Travel Demand Survey (LTDS), Available via: http://content.tfl.gov.uk/london-travel-demand-survey.pdf,[Accessed:19March2016].
TfL, 2014a. Drivers of Demand for Travel in London: A review of trends in travel demand and their causes. 1st ed. [ebook]London,pp.3-4.Availableat:http://content.tfl.gov.uk/drivers-of-demand-for-travel-in-london.pdf,[Accessed:23 March 2016].
19
Alkhanizi, Bhatnagar, Mazlan, Zhao, Zhu
TfL,2014b.Understanding the travelneedsofLondon’sdiversecommunities.1sted. [ebook]London,pp.246-279.Availableat:http://content.tfl.gov.uk/understanding-the-travel-needs-of-london-diverse-communities.pdf, [Ac-cessed 23 March 2016].
TfL,2015.LondonUndergroundPerformanceReport,[pdf],Availablevia:http://contenax.tfl.gov.uk/lu-performance-report-period-9-2015-16.pdf, [Accessed: 15 March 2016].
Tfl,2016.WhichLondonTravelPassisRightforMe?,[online],Availablevia:https://visitorshop.tfl.gov.uk/help/ticket-comparison/, [Accessed: 17 March 2016].
Wainwright,O.,2015.London’sgardenbridge: theendof the road?.TheGuardian. [online]Availableat:http://www.theguardian.com/artanddesign/architecture-design-blog/2015/oct/01/london-garden-bridge-lambeth-council-tfl-funding-end-of-road[Accessed:19March2016].
Walker,P.,2016.London’sgardenbridge:will ‘tiaraon theheadof fabulouscity’everbebuilt?.TheGuardian.[online] Available at: http://www.theguardian.com/uk-news/2016/jan/03/london-garden-bridge-will-tiara-on-head-fabulous-city-ever-be-built, [Accessed: 19 March 2016].
Webber, E., 2016. London Mayoral Elections: The Contenders, Available via: http://www.bbc.co.uk/news/uk-eng-land-london-33675875, [Accessed: 15 March 2016].