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GLOBAL TRENDS IN GLOBAL TRENDS IN TRANSPORT POLICY: TRANSPORT POLICY: What Lessons we can What Lessons we can learns learns GLOBAL TRENDS IN GLOBAL TRENDS IN TRANSPORT POLICY: TRANSPORT POLICY: What Lessons we can What Lessons we can learns learns Amal S. Kumarage Amal S. Kumarage University of Moratuwa University of Moratuwa -------- -------- 5 th th October 2002 October 2002

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Page 1: GLOBAL TRENDS IN TRANSPORT POLICY: What Lessons we can … · 2015-03-22 · • Integrated Transport Planning in dictating the nature of urban redevelopment in early 70s – Strategically

GLOBAL TRENDS IN GLOBAL TRENDS IN TRANSPORT POLICY:TRANSPORT POLICY:

What Lessons we can What Lessons we can learnslearns

GLOBAL TRENDS IN GLOBAL TRENDS IN TRANSPORT POLICY:TRANSPORT POLICY:

What Lessons we can What Lessons we can learnslearns

Amal S. KumarageAmal S. KumarageUniversity of MoratuwaUniversity of Moratuwa

----------------55thth October 2002October 2002

Page 2: GLOBAL TRENDS IN TRANSPORT POLICY: What Lessons we can … · 2015-03-22 · • Integrated Transport Planning in dictating the nature of urban redevelopment in early 70s – Strategically

Major Policy AreasMajor Policy Areas

– Social Inclusion– Urban Regeneration– Health Impacts– Health Impacts– Reforms for Reducing Costs,

Subsidies & Increasing Competition– Policy Delivery– Sustainability

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Social InclusionSocial InclusionBy providing access and mobility,

transportation helps determine where people can live, shop, work, go to school,

and recreate. Transportation is therefore about opportunity and equity.

• Social Inclusion attempts not to exclude – Communities (by geographic areas)– Social Groups (by income levels)– Individuals (by physical abilities)

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• A socially inclusive & equitable transport system should:– ensure all members of the community can move

around to fulfil basic needs;

– be secure, safe and affordable;– be secure, safe and affordable;

– involve the community in the development and management of the system; and

– ensure the costs of providing transport are shared equitably.

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• Indian Railways sees itself not just as a train operator but as a force for national unity, where people of all communities and castes meet communities and castes meet together as equals.

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Major Policy AreasMajor Policy Areas

– Social Inclusion– Urban Regeneration– Health Impacts– Health Impacts– Reforms for Reducing Costs,

Subsidies & Increasing Competition– Policy Delivery– Sustainability

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Urban RegenerationUrban Regeneration

Research by CfIT has found five generic 'themes' of best practice which underpin effective urban regeneration in Europe:

– Balanced use of street space;– Balanced use of street space;– Public transport co-ordination, quality and

affordability;– Effective promotion of alternatives to car use.– Integrated institutional and funding

arrangements;

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Balanced use of street space;Balanced use of street space;

• 30 kph speed limits on non-strategic roads throughout urban areas;

• pedestrianization of plazas and courtyards, areas around interesting or historic buildings, streets with high concentrations of cafés, bar and restaurants, and the main shopping streets; and

• segregated cycle lanes on faster major roads • segregated cycle lanes on faster major roads (speed limits in excess of 30 kph) and busier minor roads (30 kph limits) which form a comprehensive network of routes to popular destinations.

• Road space converted to use of Light rapid transit and Bus lanes.

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Urban RegenerationUrban Regeneration

• Research by CfIT has found five generic 'themes' of best practice which underpin effective urban regeneration in Europe:

– Balanced use of street space;

– Public transport co-ordination, quality and affordability. co-ordination, quality and ffordability;

– Effective promotion of alternatives to car use.

– Integrated institutional and funding arrangements;

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Public transport coPublic transport co--ordination, ordination, quality and affordabilityquality and affordability

• co-ordination – with carefully planned routes, integrated timetables and ticketing as essential to make public transport easy to use;

• quality – to ensure that services meet • quality – to ensure that services meet people’s needs and expectations; and

• affordability – to present good value for money.

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Effective promotion of Effective promotion of

alternatives to car usealternatives to car use….….

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Urban RegenerationUrban Regeneration

• Research by CfIT has found five generic 'themes' of best practice which underpin effective urban regeneration in Europe:

– Balanced use of street space;– Balanced use of street space;– Public transport co-ordination, quality and

affordability;– Effective promotion of alternatives to car use.– Integrated institutional and funding

arrangements;

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Effective promotion of Effective promotion of

alternatives to car usealternatives to car use….….

Some examples

– Barcelona, Spain– Barcelona, Spain

– Munich, Germany

– Singapore

– Curitiba, Brazil

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Barcelona, Spain

KEY SUCCESSESKEY SUCCESSES• Shorter trips and more walking and

motorcycle/scooter use brought about by high urban densities and mixed land uses

• Car use discouraged and managed with strictly enforced on-street parking controls and

• Car use discouraged and managed with strictly enforced on-street parking controls and transport telematics

• Low fares on public transport and integrated ticketing forecast to increase ridership by 15%

• Low pedestrian accident rates, despite high pedestrian mode share

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Munich, GermanyKEY SUCCESSESKEY SUCCESSES• Choice of high quality public transport modes, comprising

regional rapid transit (S-bahn), subway (U-bahn), trams and feeder buses

• Car modal share remained at 40%, despite 50% increase in car ownership in last 20 years

• 10% fall in traffic entering city due to successful park in car ownership in last 20 years

• 10% fall in traffic entering city due to successful park and ride strategy,

• Range of mobility initiatives to encourage public transport use and promote social inclusion, including car sharing, bike rental, free school travel and job tickets

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SingaporeKEY SUCCESSESKEY SUCCESSES

• Effective Ownership restraint policies matched by reducing the desire and need to own a private vehicle.to own a private vehicle.

• Effective Use restraint through pricing mechanisms such as tolls, permits and cross subsidy for public transport

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Curitiba, BrazilKEY SUCCESSESKEY SUCCESSES

• Integrated Transport Planning in dictating the nature of urban redevelopment in early 70s– Strategically located transfer points– free feeder buses encouraged peripheral development for

housinghousing– 60 kms of the 1100 km road network dedicated to bus use– 25 transfer stations and 221 tube stations.– 10% growth p.a. in bus travel since 1974.– 89% ridership approval rating

• The Result….’The Most Livable City in Latin America’

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Major Policy AreasMajor Policy Areas

– Social Inclusion– Urban Regeneration– Health Impacts– Health Impacts– Reforms for Reducing Costs,

Subsidies & Increasing Competition– Policy Delivery– Sustainability

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Health Impacts: The Health Impacts: The Promotion of Cycling & Promotion of Cycling &

WalkingWalking

• European countries in particular have been successful in encouraging cycling as an alternative to the car for short journeys.

• While walking distances have fallen, marginally, the facilities have improved marginally, the facilities have improved significantly.

• Shift from Private transport to Public reduces traffic accidents as vehicle trips are reduced and passengers safety is also enhanced.

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Deregulation of Passenger Deregulation of Passenger Transport ServicesTransport Services

Some examplesSome examples– Bus Sector Deregulation in New Zealand

– Queensland, Australia considers Bus deregulationderegulation

– Taxi deregulation in the US

– Deregulation of Taxis in Sweden

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New Zealand Considered Bus Sector Deregulations..

• Apart from the potential for patronage declines, the review committee was of the opinion that:– ‘on the road’ competition would be limited;– The government funding requirement would not fall

significantly and might even rise because of the reduced ability of operators to cross-subsidise;

– industry structure would become increasingly concentrated;concentrated;

– vehicle quality would probably fall and investment in vehicles deferred;

– timetable and fare changes would occur more often than is currently the case.

• Taking these factors into account, the review committee concluded that the costs of the current regulatory regime are outweighed by its benefits to the community as a whole.

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Queensland Policy States that ….Queensland Policy States that ….

• The operation of public passenger services should be regarded as a commercial business aimed at pursuing and maximising patronage.

• The public interest will best be served by ensuring that the providers of passenger transport operate in a framework transport operate in a framework characterised by greater accountability, competition and contestability.

• Government regulations should be minimised and restricted to ensuring high levels of safety and the efficient meeting of consumer needs.

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Taxi markets in the US…• A number of US cities deregulated their taxi

industry between the 1960s and 1980s. Reviews– of the outcomes of deregulation in the US are indicate

that deregulated taxi markets had few benefits and many costs when compared to regulated markets.

– Entry did not typically lead to improved service levels, with many cities experiencing increased waiting times, particularly in the phone-booked market. particularly in the phone-booked market.

– Similarly, fares generally rose after deregulation and price competition proved to be the exception rather than the rule.

• Many of the cities that deregulated their taxi services have since re-regulated to varying degrees.

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The Swedish taxi industry was deregulated in 1991

• First barriers to entry were removed, • Second, fare controls were removed. • Third, the requirement for all taxis to belong to a

centralised phone booking company was removed.• Fourth, geographically restricted operating areas were

eliminated and, eliminated and, • Fifth, regulated operating hours were removed.• The outcome of the Swedish deregulation included

– an expansion in the number of taxis and – An increase in the real fare. – No increase in the demand for taxis was found and – there were no new types of services emerging after deregulation. – Vehicle utilisation and driver income both declined.

Page 34: GLOBAL TRENDS IN TRANSPORT POLICY: What Lessons we can … · 2015-03-22 · • Integrated Transport Planning in dictating the nature of urban redevelopment in early 70s – Strategically

Major Policy AreasMajor Policy Areas

– Social Inclusion– Urban Regeneration– Health Impacts– Health Impacts– Reforms for Reducing Costs,

Subsidies & Increasing Competition– Policy Delivery– Sustainability

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Reforms for Decreasing Reforms for Decreasing Costs, Subsidies & Costs, Subsidies &

Increasing CompetitionIncreasing Competition

Competition also seemed to have little downward impact on fare levels.

– In the United Kingdom, real fares increased by 23 per cent between 1985-96 with real fares in metropolitan areas outside of London increasing by 53 per cent.

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Basis of Costing…Basis of Costing…

• Transportation differs from the typical commodity of price theory texts in that users play a producing role not just a consuming role.

• Transport demand can be dealt with as if the • Transport demand can be dealt with as if the price of a trip equals whatever the fare is charged plus the money value the traveller attaches to the time. – Such as the frequency of service, waiting time spent at

bus stops, and user delays caused by services departing at times which do not suit users.

Page 37: GLOBAL TRENDS IN TRANSPORT POLICY: What Lessons we can … · 2015-03-22 · • Integrated Transport Planning in dictating the nature of urban redevelopment in early 70s – Strategically

Pricing & SubsidiesPricing & Subsidies• Many resources are under (or over) priced. Roads

are often mentioned as being underpriced in relation to private vehicle use and heavy vehicle use such as containers.

• While the ‘first best’ optimal response is to price • While the ‘first best’ optimal response is to price roads properly. In the absence of a first best option, the theory of ‘second best’ suggests that there may be a case for subsidising an alternative mode to move the modal split towards the optimal level.

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State Support in EU

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Results of funding……

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ReformsReforms--some some observations….observations….

• Many transport sector reforms report that, in general cost savings are realized through: – reduced labour costs,– increases in staff productivity, mainly as a result of

reductions in staff numbers and reductions in staff numbers and – also as a result of an increase in operators and rolling

stock.

• In a few cases however (e.g. Buses in Sri Lanka) costs have gone up, but

• While costs have fallen, fares have, in general, increased.

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Major Policy AreasMajor Policy Areas

– Social Inclusion– Urban Regeneration– Health Impacts– Health Impacts– Reforms for Reducing Costs,

Subsidies & Increasing Competition– Policy Delivery– Sustainability

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Policy Delivery RequiresPolicy Delivery Requires• Regional planning and co-ordination – to better

integrate land use and transport planning and co-ordinate transport policies at the regional and subregional levels.

• A single public transport authority – responsible for planning, coordination, tariff setting and promotion of services. promotion of services.

• Funding – public sector investment in new infrastructure to encourage sustainable transport and to provide revenue support for public transport.

• Public Support- systematic public awareness and political support.

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Public Attitudes in Graz, Public Attitudes in Graz, AustriaAustria

• 1973 "the time for change":– major opposition to plans for an autobahn passing through the city;– 53% of population in favour of restricting motorising vehicular traffic – awareness of the negative aspects of traffic raised by pressure

groups.• 1974-92:

– increasing support for restricting car use and fostering alternative modes of transport;modes of transport;

– overnight increase in concern for the Graz environment and health following a smog-alarm in December 1988;

• 1992 Onwards:– opposition from traders and business owners who were seeking a more

car oriented society;– articulation of the idea of a 'gentle mobility' in the "holistic integrated

transport concept– transport policy referendum (1995) confirmed a small majority in

favour of the existing environmentally-friendly policies but was undermined by a small turnout;

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Major Policy AreasMajor Policy Areas

– Social Inclusion– Urban Regeneration– Health Impacts– Health Impacts– Reforms for Reducing Costs,

Subsidies & Increasing Competition– Policy Delivery– Sustainability

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SustainabilitySustainability…

• In order to achieve a sustained development Transport Investments should be balanced with other development investments.

• Transport investments should provide for net benefits that translate to sustainable economic

• Transport investments should provide for net benefits that translate to sustainable economic growth.

• New Investments should in particular be examined viz. a viz. the commitment to sustain existing assets and the impact of smaller investments for their improvement.

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Thank You….