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 Patronage 6th September th 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 vehicle Cost 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. Miguel Rio 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 demandAtalaiaGolegãOurémPegoS. Miguel No Integration87%25%4%73%28% With integration92% 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 TownAtalaiaGolegãOurémPegoS. Miguel Costs111358€121604€119209€91071€75658€ Benefits176209€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 Integration as a Competitiveness Instrument for Public Transport in Rural Areas Workshop A: Design and Innovation of Competitive Public Transport do foster Patronage 6th September th Conference on Competition and Ownership in Land Transport