0. National Passenger Transport Agenda
AusRAIL 2006
National Passenger Transport Agenda
22 November 2006
L.E.K. Consulting Pty Ltd
Level 35, Freshwater Place
2 Southbank Boulevard
Southbank VIC 3006
Australia t: f:
lek.com

1. Background
Public report: “National Passenger Transport Agenda” being launched at AusRAIL 2006 this week
Commissioned by ARA passenger rail operators (RailCorp, Queensland Rail, Connex, Yarra, TransAdelaide, PTA WA)
Work undertaken by L.E.K. Consulting, with extensive stakeholder consultation
Focussed on metropolitan public passenger transport
Mode agnostic

2. Objectives of the report
Propose a comprehensive national agenda for action to improve public transport
Take a national (metropolitan) approach
Provide new facts and analysis to improve the quality of decision making
Base arguments on evidence and analysis, not emotion

3. Agenda
Status quo
The case for more effective PT
Actions

4. Status quo – ten key findings
PT carries > 3m trips each weekday
Over last 20 years patronage growth = population growth
Mode share is < 10% of trips and has been declining steadily; but much higher in peaks, to / from CBDs
Based on international comparisons we have
very low density cities
very high car ownership rates
very high metropolitan road space per capita
In Australian cities the overall cost of transport to the community much higher (13% v 6-8% for European cities)

5. Status quo – ten key findings (continued)
Spend $5bn pa in operating costs on public transport, but recover only 32% in the farebox; this is very low by international standards
Low cost recoveries are not driven by fare levels, but rather low density networks, low off-peak use, high concession proportion and cost inefficiencies
In the last year high petrol prices have significantly increased patronage, (10-11% in some cities) placing pressure on peak capacity
Australia has no national “moving people” policy; there are anomalous taxation incentives that favour car use
At State level, inconsistent planning and fragmented governance. However state Government have committed > $25 bn to public transport enhancements over next years

6. Three million trips per day; patronage growth effectively = population growth
Total Public Transport Patronage by Capital City ( )
CAGR% ( )
Total
1.1
Adelaide
(1.6)
Perth
2.4
Brisbane
1.2
Melbourne
1.4
Millions of Passengers p.a.
Sydney
1.1
Population Growth
1.3

7. Low density cities and high road length
Population Density in Major Cities (2004)
People Per Hectare
Length of Road Per Capita (2001)
Metres per capita

8. High overall costs for transport
Wealth spent on passenger transport
(1990)
Percent of GRP

9. Total Public Transport Operational Costs* Five Capital Cities (2005)
Low cost recovery
Total Public Transport Operational Costs* Five Capital Cities (2005)
Operating Costs
Fare box
Subsidy required
Billions of Dollars
~1.6
~3.3
Cost Recovery = ~32%
~4.9
* excludes depreciation and interest

10. Fragmented Governance in some States
17/04/2018
Fragmented Governance in some States
Public Transportation
Roads
Infrastructure and Projects
Planning
NSW
Minister for Rail
Minister for Roads / Assistant Minister for Transport
Minister for Infrastructure
Minister for Planning
VIC
Minister for Transport
Minister Major Projects
Minister for Planning
QLD
Minister for Transport and Main Roads
Treasurer and Minister for Infrastructure
Minister for Local Government, Planning & Sport SA
Minister for Transport, Infrastructure and Energy
Minister of Urban Development & Planning WA
Minister for Planning and Infrastructure
Source: Government Websites

11. Agenda
Status quo
The case for more effective PT
Actions

12. No one factor, but range of benefits
Congestion relief
Mitigating rising fuel prices
Reducing social exclusion
Environmental and health benefits

13. Minutes of Delay per KM Travelled Urban Areas (1999 and 2005)
Despite heavy investment in roads, traffic speeds are slowing and delays are increasing
Minutes of Delay per KM Travelled Urban Areas (1999 and 2005)
Morning Peak
Evening Peak
Minutes/ KM
Minutes/ KM
2005
2005
1999
1999

14. Congestion Costs as a % of GDP
Congestion costs are a material proportion of GDP; estimated to rise to $30bn by 2015
Congestion Costs as a % of GDP
(2001 Estimate)
High cost to business and the economy
High social cost
~3.0
Percent
~2.6
~1.9
~1.5
Congestion Cost (Billions)
~$16.5

15. Australia has among the highest greenhouse gas emissions per capita
Greenhouse Gas Emissions / Capita (Various Years )
Australia
Australia
OECD members
Non-OECD countries
Tonnes of CO2 Per Capita

16. Sources of Greenhouse Gas Emissions (2004)
Transport is only 11% of total emissions but the fastest growing segment, and potentially more actionable
Sources of Greenhouse Gas Emissions (2004)
Buses
Waste
Rail
Land Use
Shipping
Fugitive Emissions
Industrial Processes
Civil Aviation
Transport
Trucks
Percent
Agriculture
Stationary Energy
Cars & Motorcycles

17. Lack of transport contributes to social disadvantage, with consequential economic cost
Percentage of Jobs Accessible Within 40 Mins of Travel Victoria (1996)
By Car
By Public Transport
Without a car, very few jobs are accessible within a reasonable time
<3% of jobs
3-25% of jobs
>25% of jobs

18. Public transport modes cost substantially less when externalities are considered
Passenger Transport Externality Costs (2005)
Dollars/ 1000 Passenger kms
Nature and Landscape
Climate Change
Air Pollution
Noise
Accidents
INDICATIVE
Urban Effects
Upstream Process
~160
~74
~35

19. Agenda
Status quo
The case for more effective PT
Actions

20. Everyone has a role to play
17/04/2018
Everyone has a role to play
Commonwealth Government
State Governments
Local Government
Business Community
Transport Operators

21. Commonwealth Government
Many roles the Commonwealth can play, even recognising that service delivery will remain a State responsibility
incentive payments to unlock inefficiencies
performance monitoring and benchmarking
national leadership on key issues eg road pricing
facilitate knowledge sharing
If the Commonwealth adopted a more active stance, it could
develop a national “moving people” policy to guide State and local policy
fund major projects of national significance (as is the case for roads)

22. State Governments Three overriding themes
getting more out of the existing assets and infrastructure
growing the transport system
changing travel behaviour
Many initiatives require political leadership, as well as funding

23. Transport operators Deliver consistent and reliable services
Exploit new technologies
Pursue operational efficiencies
Pursue a more customer centric mindset
First class project delivery

24. Summary
Sufficient evidence to suggest we are at a turning point in the role of transport in our cities
While private car will remain the predominant mode, there are strong economic, social and environmental reasons for a larger role by public transport
To realise these benefits requires a concerted national approach, and co-ordinated effort by key stakeholder groups