Lec 3, Ch. 2 Transp Systems & Organization Understand the nation’s transportation system is the result of independent actions (through reading) Understand the nation’s transportation system is the result of independent actions (through reading) Understand the nation’s transportation is in a constant state of flux (through reading) Understand the nation’s transportation is in a constant state of flux (through reading) Understand each mode has its own niche to serve Understand each mode has its own niche to serve Know typical modes for passenger and freight transportation Know typical modes for passenger and freight transportation Know major transportation organizations (through reading) Know major transportation organizations (through reading) Understand the interaction of supply and demand Understand the interaction of supply and demand (Objectives)

What we discuss in this lecture… Forces affecting the nation’s transportation Forces affecting the nation’s transportation Typical modes for passenger and freight transportation and modal networks Typical modes for passenger and freight transportation and modal networks Niches of transportation modes and intermodalism Niches of transportation modes and intermodalism Interaction of supply and demand Interaction of supply and demand Term project guidelines Term project guidelines

Forces that change the transportation system Market ForcesGovernment Actions Technology Economy, competition, costs and prices of service Regulation, subsidy, promotion Speed, capacity, range, reliability At any point in time, the nation’s transportation is in a state of equilibrium as expressed by the traffic carried for each mode and the level of service provided (like time, cost, frequency, and comfort).

Typical Modes & Niches for Passenger Transport  Good for low density residential areas. Not so good for high density residential and commercial areas  Good for high density areas and for delivering passengers to various parts of the urban area. Work as feeders to railway stations  Good for long distance travels that cannot be served rails and buses (Travel time is crucial)  Good for high volume low to medium travel distance, high volume areas or connecting high volume areas. In the U.S. not much used for long distances.  Good for any areas and short distance trips. Preferably flat terrain, good bike facilities needed for safety

How do we select a mode?: Advantages and complementarity of modes “Each mode has inherent advantages of cost, travel time, convenience, and flexibility that make it “right for the job” under a certain set of circumstances. Example 2.1: 400 mile trip Select the best mode among the followings: ModeCost Travel time Air$250 5 hours Auto$200 8 hours Rail$ hours “Cost saving” in travel time = $25/hr

Intermodalism example: Salt Lake City Intermodal Station U Intermodal Station – near the Current Amtrak St. Downtown SLC SLC Airport Sandy Terminal Provo/Orem Payson “Commuter Train”

Interaction of Supply and Demand The state of the economy which produces the demand for transportation The extent and quality of the system in place which constitutes the supply of transportation facilities and services Supply and demand reaches a state of equilibrium when the user’s need is met by the existing supply.

Figure 2.2 A new bridge to the mainland Mainland Island Proposed toll bridge Cost/mi Traffic volume (1000 units/day) Demand & Cost relationship Supply side: Cost = Fixed Cost +Toll + Travel Time Since the facility capacity is fixed, more demand means higher travel cost due to delay. Shows how the available supply is affected by the volume of traffic that uses the system (demand). Equilibrium state Demand side: Less cost, More demand Inaccessible at present $0.2 (Toll) 2 Supply & Cost relationship

Problem 2-3 (a) C: Cost/veh V: Volume Supply side: C = V Fixed cost + Travel time cost Demand side: V = 2500 – 10C i.e. C = 250 – V/10 Equilibrium 50¢ fixed cost 2500 (a) Asks for Volume at current equilibrium

Problem 2-3 (b) C: Cost/veh V: Volume New Supply side: C = V FC + Toll + Travel Time Demand side: V = 2500 – 10C i.e. C = 250 – V/10 Old Equilibrium 50¢ fixed cost 2500 (b) Asks for Volume at the new equilibrium New Equilibrium

Problem 2-3 (c) Extra toll booth, less travel time cost C: Cost/veh V: Volume Supply side: C = V Fixed cost + Travel time cost Demand side: V = 2500 – 10C i.e. C = 250 – V/10 Old Equilibrium 50¢ fixed cost 2500 (c) Asks for Volume at the new equilibrium after the service is increased New Equilibrium

Problem 2-3 (d) Max revenue with a toll (Toll agency’s desire) Revenue = Toll * Volume R = T * V Find V first from V = *(C) V = *( *V + T) So, V = 2500 – 500 – 5V –10T Hence V = (2000 – 10T)/6 Plug this V in R = T*V = T*( T)/6 =(2000T – 10T 2 )/6 You know what to do to get optimal T  dR/dT = 0 T R dR/dT = – 20T = 0 Hence T o = 100 cents ToTo