| The price argument in urban innovative transport strategies Tallinn, 26 October 2012

| Innovation... Road user charging CIty wide free public transport Stockholm Oslo Göteborg London Milano Trondheim Singapore Hasselt Zagreb Perth Controversial Polarising For the bold... Well-studied Often a succes!

| TIDE – Transport Innovation Deployment for Europe  Enhance the broad take-up of 15 innovative urban transport and mobility concepts throughout Europe to establish them as mainstream measures  Make a range of new and feasible solutions easily accessible to address key challenges of urban transport such as energy efficiency, decarbonisation, demographic change, safety, access for all, and new economic and financial conditions 18 June

| Spreading Innovation Figure based on Rogers TIDE Innovative Transport and Mobility Concepts Contribution to Mainstreaming Key Target Groups

| Thematic Cluster 1: New financing models and pricing measures (Milan – WSP) Innovative ConceptsImplementation scenarios in Milan 1.1 Road user charging in urban areas Evaluation and action plan for fine-tuning of new congestion charge scheme 1.2 Parking charge policiesInnovative parking management and enforcement scheme in inner city Additional concepts to select from 1.3 Infrastructure packages and cross financing 1.4 Value capturing 1.5 Incentive based pricing policies

| Thematic Cluster 5: Public transport organisation (BKK – UGdansk) Innovative ConceptsImplementation scenarios in Budapest 5.1 Creation of public transport management bodies for metropolitan areas Institutional integration for transport in Budapest 5.2 Contracting of services focused on improvement of passenger satisfaction & efficiency Innovative elements for bus tendering Additional concepts to select from 5.3 Marketing research as optimisation tools in public transport 5.4 Integration of collective and individual forms of urban transport 5.5 Sustainable urban public transport corridors

| TIDE kicking off! 18 June Call for Champion Cities to be launched mid December! Survey online over the next days. Workshop 28 November, Perugia

| What do cities want to achieve with free public transport schemes?  ‘Accessibility’  Social inclusion (job seekers, -16/+60)  Combat congestion (e.g. Dutch Spitsmijden, corridor approach)  Improve the Environmental situation (e.g. Belgian Ozone Plan)  Make a mark! (Hasselt, a.o.)  Change activity patterns (-16/+60, students)  Help people discover the city (tourist schemes e.g. Basel)  Increase or change economic activity (Free market bus, job seekers)  Road safety (e.g. Free nocturnal PT, New Year’s Night)

| Fare box strategies are only one piece of the puzzle...

| Function of  distance traveled  per time unit  at what cost (financial, physical, psychological)  per destination reached About accessibility Increasing accessibility: “Tamper” with  distances  speed  financial cost  physical accessibility  psychology (travel horizons)  nature and location of destinations

| Reduce psychological barriers Simple network Coupling and linking of lines Visualisation Weekend versus week service Simple fare structure

| Social Inclusion: Eclipse recommendations ObjectiveAction STEP1Allow people to access a transport system… Provide a universally designed Public Transport network that is accessible to all STEP2… that gives access to relevant destinations and services… Give access to specific areas and destinations, bringing services to people STEP3… and that allows people to participate to society at the fullest. Personalised transport promotion and services. Fare Policies

| AccessSkillsAppropriation Modes’ availability Knowledge of the city City image Spatial distribution Perception public transport & measure PriceValues SupplyHabits Kaufmanns Motility Concept

| Motorisation Market share of public transport (mechanised and motorised trips) depending on motorisation rate Parking supply Market share of public transport depending on number of parking spaces per 1000 jobs in CBD. Volume of supply Market share of public transport depending on public transport supply per hectare (vehicle x km / ha) Relative speed Market share of public transport depending on relative speed of cars. – source UITP

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| Free Public Transport strategies will need justification

| Legal justification – link to local planning activities  ‘Accessibility’  Social inclusion  Combat congestion  Improve the Environmental situation Make a mark!  Change activity patterns (spatial planning)  Help people discover the city  Increase or change economic activity  Road safety SUMP! Regulation on Public Service Obligations

| Economic justification – positive CBA (source TNO) consumers, households companies, facilities public transport society primary beneficiaries: they are the passengers of public transport! secondary beneficiaries: these parties can benefit from consumers using public transport

| All costs have to be compensated by benefits Benefits for consumers, households Benefits for companies, facilities Benefits for society Price of the ticket Contracts Subsidies Total:≥ 100 % of costs

| Be ready to discuss the opportunity cost of free public transport!

| Justification – alternative financing models  Third party payment systems (Beer Bus!)  Specific fare policies offer the possibility to financially involve other sectors  Earmarking specific (new) revenue streams

| Justification: Evalution Objectives – targets - indicators  Logical chain of objectives – targets – indicators e.g.  Congestion  Measure congestion  More PT passengers  A substantial share of which are former car drivers  More P&R users  Discovering the city  Destinations reached  Mental mapping

| And how can you assure the city gets value for money?

| Entry point of negotiation with operator  Difference between patronage and operational cost at start level  Total cost per individual user  Objectivation of operational cost in view of growing demand  Quality indicators and service levels guaranteed (ENERQI) Getting value for money

| Mitigate adverse effects  crowding out soft modes  filling in road space  dismantling travel chains and combined trips  capacity and punctuality problems  Lack of opportunity to package mobility solutions  Loss of data about the system (free vs open)

| Good luck! You have our support!

| Contact details  Ivo Cré    June