IEM FORUM 11Jul09 Sustainable Public Transportation Framework

8/8/2019 IEM FORUM 11Jul09 Sustainable Public Transportation Framework

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Sustainable Public Transportation Framework:Transformation from LPKP model to PBT model

Public Transport is not a technical problem

It is not even a financial problem

Most often, it is a political problem

Dr Rosli NekmatURusbudi Transplan Sdn Bhd

Presented at the OPEN FORUM on SUSTAINABLE PUBLIC TRANSPORTATIONOrganised by the Institute of Engineers Malaysia, 11 July 2009

Petaling Jaya, Selangor, Malaysia


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Sustainable Public TransportIEM Open Forum

Presentation by Dr Rosli Nekmat 11jul09 2

Urban TransportationSustainability Strategies

Strategy 3Reduce Emissions from Vehicles

Strategy 1

Reduce Transport Demand

Transportation Demand ManagementTransit Oriented Development

Strategy 2Increase the Share of Public Transportation

Less RoadsMore Transit

Green Technology


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The Race Motorization


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Public Transport is Losing


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Public Transport viscious cycle


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Public Transport vs Cities

Seoul, Korea

Singapore

Bus IntensivePublic Transport System

Busway asQuick Wins

ReformedBus Industry

Transit as part of a long termSocial Engineering

Jakarta


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Political WillYAB Datuk Seri Najib Tun RazakPrime Minister of Malaysia

YAB Tun Dr Mahathir MohammadX Prime Minister of Malaysia

Datuk Seri Najib Tun Razak enteredoffice confronted with challenges that noother incoming prime ministers had to

face but has made a good start andshown political will for change JocelineTan, FOCUS Sunday STAR 5 July 2009


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PublicRisk

PrivateRisk

Franchising

Concessions

Gross costservicecontracting

Net costservicecontracting

PublicMonopoly

Managementcontracting

Quantity licensing Quality licensing

Open market

Revenue

Operations Revenue

Operations

Unregulated

Social

ALTERNATIVE

TRANSIT SERVICEPROCUREMENTAPPROACHES

Unhealthy Competitive Regime

Low QualityWar for centsLimited capacityunsustainable

LoSF++

Monopolistic Regime

High capex low ridersHigh SubsidyLow productivitySustainabilty suspected

LoSE,F

Competitive Regime

Quality ServicesLow/no subsidyMore ridersLongterm sustainability

LoSC,D


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Existing PT InstitutionalFrameworks (Quality Licences)

MULTIPLE BUSOWNERS/ OPERATORS

Rolling stocksService provision

Depot & maintenance

LPKP

Act 334

PT VehicleLicences by bus

PBT

JPJ

PT FaciltiiesAct 171

RTA 1987

Permitted Ops(Licence holdersOperate Own buses)

Vehicle RegRoad Worthiness

MULTIPLE BUS OWNERSRolling stocks

Service provisionDepot & maintenance

LPKP

Act 334


PBT

JPJ


RTA 1987

Rent Taker Ops (Pajak)(Licence holders rent their

buses to operator/driver)


Vehicle & licenceLeased toDrivers/operator

MULTIPLE BUSOPERATORS

MULTIPLE BUSOWNERSRolling stocks


LPKP


PBT

JPJ


RTA 1987

Consortium (branding) Ops(License holders assign/renttheir buses to a Consortium)


Vehicle & licenceLeased toDrivers/operator

MULTIPLEBUS OPERAT

SingleConsortiu

Act 334


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Recently Introduced PTInstitutional Framework (Monopolistic)

SPNB- RAPIDKL(Bus operations by RapidKL under an operationagreement with the buses owner and vehicle licencesholder SPNB

SINGLE BUS OWNER (SPNB)

Rolling Stocks & Facilities

SINGLE BUS OPERATORS (RapidKL)

Service provisionRoute planning & schedulingDepot & maintenance

LPKP

Act 334

PT VehicleLicences bus

PBT

JPJ


RTA 1987


OperationAgreement

PUTRAJAYA-NADI PUTRA(Vehicle Licence Holder(PJC) own buses but operateby Pengangkutan Awam Putrajaya Sdn. Bhd onoperations contract basis)

SINGLE BUS OWNER (PJC)Rolling Stocks & Facilities

Route planning & scheduling

SINGLE BUS OPERATORS(Pengangkutan Awam Putrajaya s/b))


LPKP

Act 334

PT VehicleLicences bus

PBT

JPJ


RTA 1987


OperationAgreement


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COMMERCIAL VEHICLES LICENSINGBOARD ACT 1987 (Act 334)

Act 334 is for PT vehicles licensing not regulating PT service

19 (3) The holder of the licence or any person using, causing or permitting the use of a vehiclein respect of which a licence has been issued under this Act who fails to comply with any ofthe conditions attached to the licence under this section shall be guilty of an offence and shall onconviction be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term notexceeding one year or to both.

Act 334 do not specify that Licence Holder must be the vehicle owner but is impliedunder definition. "authorised vehicle", in relation to any licence issued under this Act, means a vehicle specified

in such licence and authorised to be used there under "registered owner" means the person registered as the owner of a motor vehicle under the Road

Transport Act 1987;

Act 334 allow CVLB to issue vehicle licenses without consultation of PBT (or existingoperators) but implied do so in CVLB Circulars 16. (1) Subject to this Act, the Board on an application for a licence under this Act shall have

full power in its discretion (a) to grant the application in full or in part

Act 334 allow CVLB to issue vehicle licenses without any details of route, schedule andfares structure. 19. (1) Subject to this Act, the Board may attach to any licence granted under this Act such

conditions as it may think fit and in Particular (a) in relation to a specified class of publicservice vehicles licence (i) that specified fares shall be charged; (ii) that where desirable in thepublic interest, the fares shall be so fixed as to prevent wasteful competition ; (iii) that theservice shall be operated within the specified areas or routes and in accordance with a specifiedtime-table or in accordance with specified hours of operation and specified frequency;


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Public

Risk

PrivateRisk

Existing Quality Licensing

Revenue

Operations Revenue

Operations

Competition

Social

TRANSIT INDUSTRY

CONTINUM

Monopolistic Regime

USAFranceGermany

China

SPNB/RapidPJC/Nadi Putra

Curitiba

Singapore

London

Bagota

Seoul

Competitive Regime

Japan

Malaysia



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Institutional Framework BenchmarkLondon Buses, Greater London, England

London Buses (London Bus Services Limited(LBSL)), is the subsidiary of Transport for

London (TfL) that manages bus services withinGreater London, UK. Transport for London (TfL) is the local

government body created by the Greater LondonAuthority Act 1999, responsible for most aspectsof the transport system in Greater London inEngland. Its role is to implement the transportstrategy and to manage transport services

across London. Buses are required to carrysimilar red colour schemes and conform to thesame fare scheme

Transport for London's key areas of directresponsibility through London Buses are: planning bus routes specifying service levels monitoring service quality management of bus stations and bus stops and

other support services providing information for passengers Common ticketing system

The actual bus services are operated by 20 busoperating companies which work under contractto London Buses.

Transport

For London

LondonBuses

Mayor of London

Service Contract

20 Bus Operating Companies


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Institutional Framework BenchmarkTransMelinio, Bogota Columbia


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Sustainable Public TransportIEM Open Forum Presentation by Dr Rosli Nekmat 11jul09 15

Institutional Framework BenchmarkTransJakarta, Jakarta Indonesia


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Institutional Framework BenchmarkTransport Dept, Hong Kong China

FranchiseBy Route


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Institutional Framework BenchmarkSemi-public operation system, Seoul South Korea

the acute funding crisis of Seoulspublic transport system hasprompted a complete re-examination of ways to improveservice quality while keeping costsand subsidies affordable.

the Seoul Metropolitan Governmentgreatly increased its control overbus routes, schedules, fares, andoverall system design. It introduced

what it calls a semi-public operationsystem that retains private busfirms but leaves route, schedule,and fare decisions to the SeoulMetropolitan Government.Moreover, it now reimburses busfirms on the basis of vehicle km ofservice instead of passenger trips

Fares are now based only ondistance traveled, with free transferspermitted between bus lines as wellas between metro and bus.

Central feature is an integrated hightech Bus Management System(BMS)


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Institutional Framework Benchmark:Lesson Learned from best practices

Public Transport problem is a local issue of servicesnot so much a nationwide issue of vehicle licences

Strategic leadership by a Local Government body (PTA)focus on PT and its infrastructure (eg. TfL, City Mayor,

Regional Administrator, Metropolitan Government, etc) Special Purpose Vehicle (SPV) to undertake tactical

issues (eg. London buses, Transmelinio, HK TransportDept, etc)

Private bus operating companies perform the servicesat the operational level based on a local servicecontract and in compliance to national regulationsunder a common branding

Sequence of decisions is Appropriate Institutionalframework Best strategy Right tactics (HW &SW) Quality operations.

Institutional framework should be able to cater for multi-modalism and transit coverage area (multi PBT).

PTA through SPV provide infrastructure (eg. busway,signal priority) and the use of technology (eg. BMS,

ITS) to monitor, control and manage the services. Off vehicle fare collection and common ticketing

managed through SPV not by respective operators.Revenue distribution to operators as per contract basedon km-run

Ultimate test, user acceptance and general publicapproval.

Strategic

Tactical

Operational

Transit Users & Gen Public

ServiceContract

Regulations& Permits

Public

Public/Private

Private

Branding

Infra


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Local Government Act 1976(Act 171): Legislative Framework Part XII Further powers of local authority

101 In addition to any other powers conferred upon it by this Act or by any otherwritten law a local authority shall have power to all or any of the following things,namely --- (o) subject to the provisions of any law relating to road traffic , to establish, acquire,

maintain and carry on within or without the local authority area public transportservices.

(dd) to enter into any contract with any other local authority or with any person to secureor further the carrying on without the local authority area of any work or undertakingwhich the local authority is authorised to carry on;

Part XIII By-Laws 102 In addition to the powers of making by-laws expressly or implied conferred

upon it by any other provisions of this Act every local authority may from time totime make, amend and revoke by-laws in respect of all such matters as arenecessary or desirable for the maintenance of the health, safety and well-being ofthe inhabitants or for the good order and government of the local authority area andin particular in respect of all or any of the following purposes --- (l) to provide for the establishment, maintenance, regulation and control of public

transport services and to prescribe fares to be charged; (n) (i) to regulate, supervise and license trishaws and carts and to prescribe the rates or

fares (o) to provide for the licensing of bicycles and tricycles;

103 By-laws to be confirmed by State Authority Every by-law, rule or regulation made shall not have effect until it is confirmed

by the State Authority and published in the Gazette.


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Local Government Act 1976 (Act 171):PBT-Based Public Transport Authority By Law

PTA By-Law(Act 171)

Urban RegionPublic Transport

Authority(PTA)

Strategic

Tactical

Operational

Transit Users & Gen Public

ServiceContract


Public

Public/Private

Private

Branding

Infra

PTA Transit FundManagementagreement

TransitFund

Urban RegionPublic TransportSPV

Service DeliveryAgreement

CommercialTechnicalOperational

Policy/Strategy

Infrastructure

MULTIPLE BUS OWNERS& OPERATORSRolling stocksService provisionDepot & maintenance

Route ServiceFranchiseContracts


ServiceContract

Infra

PBT1 PBT4PBT3PBT2 PBTKPKT

UPEN J

ACT 171

Regional Authority


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J MarinKP Keretapi

Railway Act

Railway SchemeOperation Licence

LRT/MRT Operators

Proposed PBT-based PT InstitutionalFramework (Competitive Franchise)

LPKP

PT VehicleLicencesBus/Routes

MULTIPLE BUS OWNERS& OPERATORS

Rolling stocks


JPJ

RTA 1987


Act 334

SPAD

ControlCenter

RouteService FranchiseContracts

Transit Fund

Managementagreement

TransitFund

PTA By-Law(Act 171)

Urban RegionPublic Transport

SPV

Urban RegionPublic TransportAuthority

(PTA)

Service DeliveryAgreement

CommercialTechnicalOperational

Policy/StrategyInfrastructure

$

$

$

Ridership

Federal &State Fund

$

$


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Proposed TransformationExisting Regime Proposed Regime

COMPETITIVE REGIME

(Vehicle Licence holders Operate ownbuses under IMPT service contract )

MULTIPLE BUS OWNERS/OPERATORS

Rolling stocksService provisionDepot & maintenance

LPKP

Act 334


PBT

JPJ


RTA 1987


UNHEALTHY COMPETITIVE REGIME(Vehicle Licence holders Operate Own busesunder Quality Licences)

MULTIPLE BUS OWNERS/OPERATORS

Rolling stocksService provisionDepot & maintenance

LPKP

Act 334

PT VehicleLicences by Route/bus

PTA

JPJ

Act 171PTA By-Law

RTA 1987


PT SPV RouteService FranchiseContracts

PBT

Transformation


Competitive Regime

LPKP Model

PBT Model

transformation of the Countryin a holistic, wholesome andcomprehensive manner, notmerely superficially. Datuk Seri NajibTun Razak, Prime Minister of Malaysia, 7 July 2009


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Customer Oriented vsTechnology Driven Decision

Vehicle licences Technology Driven

Service Contract Customer Driven


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Transit Evaluation Matrix


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How much transit RM4 billion buy?

Which one haveThe most impactTo resolve PT problem?


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Cost Comparison


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Passenger Flow (Capacity)


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What the Customer Want?


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Terima Kasih

Dr Rosli Nekmat

Urusbudi Transplan Sdn Bhd

[email protected]

IEM FORUM 11Jul09 Sustainable Public Transportation Framework

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