1. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs Regulation of public transport system in the City of Skopje: organizational and financial issues Doc. D r Slaven M. TICA, Trans. Eng. Honorary Vice-President UITP Regional Public Transport Seminar Contracting, Financing and Corporate Management in Public Transport

2. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs Territory: 10 urban communities + 9 suburban communities Surface: 1818 km 2 Number of inhabitants: : 506.926 (The 2002 census) CITY SKOPLJE - TODAY 1. Центар 2. Гази Баба 3. Аеродром 4. Чаир 5. Кисела Вода 6. Бутел 7. Шуто Оризари 8. Карпош 9. Ѓорче Петров 10. Сарај

3. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs PUBLIC TRANSPORT - TODAY TRANSPORTATION NETWORK Number of linies: 78 Exploatation length: 1189 km Average stop distance: 0.62 km Density of transport network: 0.99 km/km 2 Number of vehicle: 335

4. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs PUBLIC TRANSPORT - TODAY

5. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs CURRENT SYSTEM - PROBLEMS

6. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs CURRENT SYSTEM - PROBLEMS LEGAL AND REGULATORY FRAMEWORK - System operation is not in line with existing legal and regulatory acts - Conditions for the appearance of "double standards“ - Conditions for production of all types of risks in the system ORGANIZATION AND MANAGEMENT OF SYSTEM -The absence of a clear vision of system development and of the system target function -Unregulated market: unregulated monopoly - expressed unfair competition -The absence of modern concepts of management and organization of the whole system -Lack of system competition -The lack of organization unit within City Authorities that deals exclusively with issues of transportation of passengers, which is necessary taking into account the size and complexity of the system -Interference with the competence and insufficient and unclear delineation of responsibilities between decision makers -There is no concept of development and planning systems at the strategic level -The inability of an integrated and balanced development of the system -Functional integration of multiple jobs with one of the actors in the system SYSTEM PERFORMANCE -The lack of all aspects of integration (physical, tariff, logical) -Difficulty monitoring of efficiency and effectiveness of the whole system -Cost of operation of the system are in imbalance with the performance and efficiency of the whole system work -The absence of balanced subsidies of all actors in the system -The absence of adequate and continuous monitoring and control system operation

7. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs ACTION PLAN FOR IMPROVING THE SYSTEM

8. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs RESEARCH CARRIED OUT IN THE PUBLIC TRANSPORT SYSTEM Were carried out detailed research in real-system in order to obtain the views, opinions and demands of system users, operators and experts in the city of Skopje, covering specific key areas related to the organization, management, operation, financing, promotion and development of the whole system of passenger transport. Research on passenger’s view in public transport system in Skopje (3874 passengers, 10 stops) Research on views of city government, operators and experts in the public transport system in Skopje (60 experts)

9. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs MOST IMPORTANT GOALS OF IMPROVING THE PT SYSTEM IN SKOPJE - EXPERT OPINION Achieving high mobility in public transport, as a precondition for the quality of life in the city and sustainable development Increasing the quality of service in PT system as a whole Enabling mobility of certain social groups at reasonable conditions Creating an efficient system of cost management, revenue, prices and financing systems Decreasing operation costs of the public transport system Adjustment of prices of transport services to the real costs of transport Enabling investment in further development of public transport Other

10. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs MOST IMPORTANT GOALS OF IMPROVING THE PT SYSTEM IN SKOPJE - USER OPINION

11. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs VISION, MISSION AND TARGET FUNCTION PT SISTEM The vision should be directed towards ensuring that the system is an effective, modern organized and rational, facing the production of quality transport services to users of public transport, with a large impact on the implementation of the mobility of the population of Skopje. The mission of the system of public passenger transport in the city of Skopje should be directed to provision of a reliable, stable, available in space and time and quality transport services to customers, under economically favorable and environmentally acceptable conditions. Production of the maximum level of quality of transport services for a defined level of costs, that is the required amount and quality of transport services with a pre-defined costs, implemented with maximum efficiency and effectiveness with minimal environmental pollution.

12. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs ORGANIZATION AND MANAGAMENT Is the organization and management of transport markets in the City of Skopje, in your opinion regulated properly ? Do you think the organization and management of PT system should be given to a special expert body within the City of Skopje ?

13. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs Way to access the market of transport services ?

14. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs THE CONTRACTUAL RELATIONSHIP BETWEEN THE LOCAL ADMINISTRATION AND THE OPERATORS What should be the type of contract between local authorities and operators ? What should be the period of future contracts?

15. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs

16. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs MODEL OF THE ORGANIZATION – BIRD MODEL

17. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs COMPENTENCE AND MANAGEMENT SYSTEM– BIRD MODEL

18. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs Contract on the basis of gross production of transport service

19. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs THE CONTRACTUAL RELATIONSHIP BETWEEN THE LOCAL ADMINISTRATION AND THE OPERATORS

20. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs FINANCIAL ASPECTS - REVENUE 2009 2010 - 2,62 %

21. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs QUALITY OF SERVICES AND PRICE RELATIONSHIP

22. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs CUSTOMER SATISFACTION INDEX BY THE USER

23. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs AVERAGE RATING OF THE QUALITY OF TRANSPORT SERVICES PROPERTIES – USER OPINION

24. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs 26,00 % 48,28 % 25,73 % The views of local authorities and operators on the costs of primary income from the sale of the transportation services

25. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs The views of local authorities and operators on how to cover the difference between actual revenue and actual costs in the system The difference between actual costs and revenues should provide the local government The difference between actual costs and revenues should provide the operator

26. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs Sources to cover the difference between actual costs and revenue systems

27. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs ACTION PLAN FOR IMPROVING THE SYSTEM

28. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs Thank you Благодариме

29. University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: tice@eunet.rs, slaven.tica@sf.bg.ac.rs OPŠTI POJMOVI