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JOURNEYS

PublisherLTA Academy

Land Transport Authority

1 Hampshire Road

Singapore 219428

Editorial TeamNaleeza Ebrahim

George Sun

Mageret Ely

Foo Jong Ai

All feedback, suggestions and contribution of papers for future issues are welcome.

Please address all correspondence to:

JOURNEYS

LTA Academy


1 Hampshire Road

Singapore 219428

Fax: 65 6396 1890

Email: [email protected]

JOURNEYS is also available online at www.LTAacademy.gov.sg

© 2011 LTA Academy, Land Transport Authority, Singapore

All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or by

any means without the prior written permission of the LTA Academy, Land Transport Authority, Singapore.

The opinions and views expressed in this publication are those of the authors and do not necessarily reflect

the views of the LTA Academy or the Land Transport Authority, Singapore.

ISSN: 1793-494X

Contents

07. Urban Sustainability and Transportation: Research Framework for Medium and Long Term Transport Planning

K.W.AXHAUSEN AlexERATH 20. Transport Mobility Management:

Small Changes - Big Impacts DamianPRICE AmyLEATHER

Best Practices

31. Different Approaches to Public Transport Provision

DavidA.HENSHER GabrielWONG

42. Recommendations for Improving Transportation Energy Efficiency in APEC Economies

LauraVANWIEMCGRORY

52. Achieving Green Freight in Asia SophiaPUNTE YanPENG

References

60. Passenger Transport Mode Shares in World Cities

71. Comparison of Public Transport Operations

Sustainable Urban Transport

5JOURNEYS | November 2011

Dean’s Words

time scales and in their interactions with all

elements of the future city. The project has

both medium and long-term perspectives.

The authors say that the integration of the

medium and long term horizons in the

research is a significant methodological

innovation that will enable a global analysis

of complex issues related to mobility in the

future.

From Mott MacDonald, Damian Price

and Amy Leather explore what is still

considered a relatively new element of the

transport practitioner’s toolbox, Transport

Mobility Management (TMM). They present

examples of international best practices in

TMM and examine the degrees of success.

They have found that the more successful

TMM initiatives are those embedded in the

wider transport approach of a government,

authority or service provider. The authors

have even distilled the Top Ten Measures for

success in TMM to share with our readers.

Collaborating at the LTA Academy, Professor

David Hensher and Gabriel Wong examine

the different approaches to the provision

of public transport in various cities around

the world. These approaches include

government operation, competition in the

market, government regulation of fares

and services, competitive tendering, and

negotiated performance-based contracts.

What emerges is that there is no one-size fits

s we publish yet another issue

of JOURNEYS, the contributions

of our authors attest to the

fact that matters relating to urban and

transport planning continue to challenge

governments, policy makers and societies all

over the world. It is clear that great minds

are kept busy with ideas and concepts on

how to move people, goods and services in

the best possible way. The issue is getting

more complex with greater urbanisation in

every country, and as the global village gets

smaller, as more people want or need to

travel or transport things. Yet, rising to the

challenge, urban and transport planners

are unstinting in their efforts to make

improvements and chart the way forward.

Professor KW Axhausen and Alex Erath

from ETH Zurich (Swiss Federal Institute of

Technology Zurich) give a glimpse of the

research on Mobility and Transportation at

the Future Cities Laboratory. The goal is to

derive tools to manage, plan and optimise

the flow of people and goods at different

Mohinder Singh

Dean

LTA Academy

A

6 JOURNEYS | November 2011

all approach. Cities, governments and policy

makers have to test out and decide which

model suits them, their ultimate aim being

to develop integrated and accessible urban

public transport systems with reasonable

quality of services and at affordable fares.

At the Alliance to Save Energy, Laura Van

Wie McGrory puts together the consensus

reached at the 2009 APEC Workshop on

Policies that Promote Energy Efficiency

in Transport (WPPEET). Specifically, the

agreement was that APEC economies

should aim to increase transit-oriented

development and integrated land-use

planning while minimising private motorised

transport. It also proposes that APEC has

a role in promoting energy efficiency in

transportation, through projects and the

coordination of bodies that advise leaders

of the APEC economies. Furthermore,

these measures in APEC may also be used

to enhance other global transportation

initiatives.

Sophie Punte and Yan Peng, both from

Clean Air Initiative Asia, raise the less

common topic of freight’s contribution

to air pollution and what can be done

to reduce their emissions. The authors

reveal how a small trucks pilot project in

Guangzhou led to a larger freight project

in Guangdong, which eventually paved the

way for a national freight programme in

China. According to them, these initiatives

on greening the freight and logistics sector

are expected to be replicated in other Asian

countries, with strong support from private

sector. These revelations should certainly

spell good news across these societies as the

movement of freight is a major component

of their economic wealth, while conversely

contributing to poor physical health due to

their pollutant emissions.

I would like to thank all the authors for

their myriad of ideas and concepts, proving

that transport planning continues to be

an intriguing and exciting topic. I am sure

readers will find it so. More than that,

hopefully, their contributions help to bring

us closer to solutions.


The goal of this research is to derive tools to manage, plan and optimise the flows of people and goods at different time scales and in their interactions with all elements of the future city.

IntroductionThis century will, for the first time, see over

half the world’s population living in cities

(UN 2007). Making these urban structures

environmentally, economically and socially

sustainable and liveable is one of today’s great

challenges. Due to the central importance

of cities’ infrastructure and performance,

one key element to meet this challenge is

transportation infrastructure. Embedded in

the Singapore National Research Foundation’s

initiative, Campus for Excellence and

Technological Enterprise (CREATE), and with

the objective to advance research into the

complexity of land transport, the research

outlined in this article addresses this challenge.

The research is one of the nine modules of

the Future Cities Laboratory, the first research

programme of the Singapore-ETH Centre for

Global Environmental Sustainability (SEC). The

research is performed in close collaboration

with the other FCL modules, the ETH Institute

of Transport Planning and Systems based

in Zurich, and the Interdisciplinary Research

Groups of the SMART MIT Future Mobility and

TUM CREATE initiatives based in Singapore.

The goal of this research is to derive tools to

manage, plan and optimise the flows of people

and goods at different time scales and in their

interactions with all elements of the future city.

The project has two perspectives: medium- and

long-term (Figure 1). The medium term refers

to the change across all degrees of freedom

of the system (population, infrastructure, land

use, regulation and pricing), but still taking

the given situation as the starting point. The

long-term processes make it possible over time

to consider the changes required to achieve

overarching policy goals and to account for

Urban Sustainability and Transportation: Research Framework for Medium and Long Term Transport Planning

Urban Sustainability and Transportation: Research Framework for Medium and Long Term Transport PlanningK.W. AXHAUSEN and Alex ERATH

AbstractThis paper presents an overview of the research of the module, Mobility and Transportation, one out of nine modules of the Future Cities Laboratory (FCL), the first interdisciplinary research group of the Singapore-ETH Centre for Global Environmental Sustainability (SEC). The aim of the module is to advance research into the complex arena of land transport, which derives from the demands of managing, planning and optimising the flow of people and goods at different time scales and the interaction of these aspects with all elements of the future city.


Figure 2: MATSim model for Zurich morning peak traffic at 7am. (Source : Visualisation courtesy of senozon AG Zurich)

The research will be based on a calibrated

and validated version of the multi-agent-

based travel demand simulation MATSim

for Singapore. This model will provide the

simulation environment needed for both the

medium-term and the long-term developments.

Medium TermFor the medium term time s ca l e , two

subprojects are envisaged. The first will develop

an approach to scheduling activities over the

course of a week. The second is dedicated

to the simulation-based optimisation of two

aspects of urban transport systems: transport

demand management and bus network

optimisation.

• Weekly Activity SchedulingCurrent activity-based models are generally

one-day equilibrium-based models.

This one-day restriction is becoming

increasingly problematic, as many policies

Figure 1: Research Framework

Implementation of MATSim Singapore

Preparatory work

Medium Term

Research

Long Term

their benefits and costs. Both perspectives will

be developed in an integrated manner based

on the same software framework and are

presented in the following sections.

Research FrameworkBasis: Large-scale, multi-agent,activity-based transport demand model

The research framework is provided by the

multi-agent-based travel demand simulation

MATSim (MATSIM-T 2011). Open-source

MATSim is one of a group of agent-based

models that have recently been developed

to realise the potential of the activity-based

approach in practice (Bradley and Bowman

2006). In line with the activity-based approach

(Jones et al. 1983), MATSim is based on the

idea of the 24 hour daily activity schedule as

the basic behavioural unit. In contrast to most

other current agent-based models, it fully

integrates traffic flow simulation to calculate

the generalised costs of travel implied by the

schedule. In addition, MATSim is designed for

speed and scale, which allows it to address

large-scale and finely detailed scenarios. For

example, the Switzerland implementation has

7.5 million agents, 1 million links and 1 million

destinations (Figure 2), and is still able to

find a steady state solution within acceptable

computing time (Balmer et al. 2010). Besides

Switzerland, MATSim has been successfully

implemented in Toronto, Berlin and Tel-Aviv.



aim to reshape demand across longer time

horizons; taking peak-spreading beyond a

single day. Furthermore, it has been long

recognised that this time horizon is too

short, as at least a weekly rhythm is natural

for the choices of many recurring activities.

One way to overcome this constraint is to

reformulate MATSim so that it can be run

open-ended. This redesign has to consider

factors such as the rhythms of the year, the

rhythms of major events, the business cycle,

and long-term changes in the population

and in the facilities (see below for the work

on the agents and modules addressing the

choices implied here).

The key design decision will be the choice

of the learning mechanism with which the

agents adapt their behaviour to the patterns

they experience. While MATSim+ will not

impose the strict maximiser implied by

stochastic user equilibrium, it will still assume

that the agents want to improve their daily

experience.

Based on the idea of an ‘activity calendar’

of desired, but not yet undertaken activities,

the project will develop an approach to

schedule these activities over the course

of a week (Axhausen 2006). The work of

Feil (2010) will be the starting point for

the development of the approach. It will

integrate the idea of a committed core

schedule around which the travellers build

...many policies aim to reshape demand across longer time horizons; taking peak-spreading beyond a single day.

Based on the idea of an ‘activity calendar’ of desired, but not yet undertaken activities, the project will develop an approach to schedule these activities over the course of a week.

• Simulation Based OptimisationIn terms of transport demand management,

an integration of an optimisation approach

for ERP will be developed, which will be

based on the information available from

the simulation. In contrast to the agents

added for the long-term horizon, this

optimiser will have a definite time horizon

of one day. Furthermore, and again based

on information of the transport simulation,

research on the optimisation of bus network

design and operation will be conducted, a

topic of special importance to Singapore

with its large public bus network.

i. Optimising Traffic And Transport

Demand Management Strategies

The derivation and evaluation of traffic and

transport demand management strategies

their week. It will not adopt a fully continuous

view of activity generation as arising out of

an understanding of incremental need

build-up. Still, the model will be rewritten

to enable such an open architecture. This

path-dependent MATSim will combine

the weekly horizon with the ability to be

integrated in the longer-term considerations

of a year and their development over time.

The new processes to be added in the next

element of the project will therefore have

a suitable environment for people to age,

move house, change jobs, etc.



...to perform both fast and reliable simulation optimisation for congested networks, information from the simulation tool should be combined with information from a network model that analytically captures the structure of the underlying problem.

ii. Optimising Bus Systems

The optimisation of bus networks and

its operation is a highly complex, multi-

attribute problem (Figure 3). Besides

dynamic demand, it features a range of

variables such as number and location of

the bus stop, bus routes, service frequency,

availability of bus lanes, integration with

other modes of public transport and

even fare collection methods. Due to the

complexity of the system, the problem will

be decomposed into sub problems but

all results will be evaluated based on the

MATSim framework.

The network design problem will be based

on earlier work by Daganzo (2010) which

describe the network shapes and operating

characteristics that allow an efficient transit

system, and by Fletterman (2008) which

applies metaheuristics for network design.

Special attention will be paid to the impact

of separate bus lanes (Daganzo 2006).

Based on this research, the city of Barcelona

reorganised its bus network (Institute of

Transportation Studies 2010). However, it

has not yet been tested within a multi-agent

for urban road networks typically relies

on the use of microscopic simulation

tools that capture in detail the behaviour

of drivers, as well as, their interaction

with the network infrastructure.

Unfortunately, this degree of detail and

realism comes at the cost of non-linear

objective functions with no available

closed form and potentially containing

several local minima. To integrate these

non-linear, stochastic and evaluation-

expensive simulation models within an

optimisation framework is a difficult

and intricate task. In order to perform

both fast and reliable simulation

optimisation for congested networks,

information from the simulation tool

should be combined with information

from a network model that analytically

captures the structure of the underlying

problem. The objective of this subproject

is to derive efficient simulation-based

optimisation methods for traffic and

transport demand management.

New simulation-based optimisation

algorithms for the generation of road

pricing strategies and speed control will

be developed, implemented, and tested.

The algorithms are designed for offline

operations on medium time scales. This

work is likely to consist of the further

development of research previously

conducted at EPFL (Osorio 2010) and

TU Berlin (Lämmel and Flötteröd 2009);

and have been already successfully

implemented for MATSim scenarios

(Mezdani 2011). Interfaces of the

realised algorithms to the simulation system

are implemented and tested.



Figure 3: Representation of the public transport supply in Singapore in first quarter of 2010. (Width indicates capacity, brown lines represent buses, and other colours represent various MRT/LRT lines)

transport demand model, which allows

further refinement of the approach.

In terms of bus operations, the research will

build on earlier work proposing an adaptive

control scheme to mitigate the problem of

bus bunching (Daganzo 2008). The MATSim

simulation allows for integration of the

proposed scheme which dynamically

determines bus holding times at control

points based on simulation-based, real-time

headway information. Finally, the findings

of Tirachini and Hensher (2011) on the

influence of fare collection systems and

optimal infrastructure investments will be

incorporated and applied to the Singapore

scenario.

Long TermThe urban system is constantly evolving. It

is changing at different speeds and scales.

Endogenous and exogenous agents and forces

accelerate or delay these changes. Current

urban land use and transport models focus

their attention on the impact of accessibility

changes arising from shifts, reductions or

increases in the general transport cost surface.

They do so by employing spatial aggregates

or zones as their reference system. They

assume many atomistic actors, who interact

freely in an open land and housing market.

So far, the first characteristic has been the

result of data availability considerations and

not of theoretical desirability. The second

assumption reflects both American and

European conditions, but is clearly untenable

for other places such as China or Singapore,

where land availability, land use and household

capital availability are jointly regulated by the

government. In Singapore, for example, the

government controls land use, a vast share

of the property market and pensions through

instruments, such as, government land sales,

Housing and Development Board (HDB) or

Central Provident Fund (CPF) and their various

rules and regulations (Phang 2001).



The microscopic adaptations of the residents and firms on exogenous planning scenarios will be the centre of the work in the long-term part of the project, as they are generic in their methodology and transferable to other locations.

Figure 4: Overview of Long Term Framework

• Advanced Location Choice ModelCurrent software systems, such as, MATSim

and UrbanSim (UrbanSim 2011), and others

as well, are moving from an aggregate

description of the land use system to a

parcel-based one. This has the advantage

that all agents in the simulation correspond

to individual ent i t ies : residents, their

households and residences, firms and their

branches, institutions and their locations,

the associated vehicle fleets, transport firms

and their services. This consistency in model

resolution is not matched yet in some of

the behavioural models, most importantly,

residential location choice, activity location

choice, location choice of firms and

institutions.

The current choice models cannot fully

characterise the individual alternatives, as

centra l var iab les are miss ing. The

construction of the very large choice sets

is still computationally very expensive and,

therefore, often not properly addressed.

The microscopic adaptations of the residents

and firms on exogenous planning scenarios

will be the centre of the work in the long-

term part of the project, as they are generic

in their methodology and transferable to other

locations. The research is organised based on

three main pillars (Figure 4), namely, object fine

location choice, service provider agents and

social network geographies. The forecasting

procedure is based on steps of one year. For

each year, information on exogenous factors,

such as, new property developments, is fed in

the loop whereupon the different agents react.

Based on their reactions, a new state for year

n+1 is computed which serves as the basis for

the next loop run.


Hedonic regressions, facilities database

Location choice-object-fine-social network informed-secondary location choice

Service provider agent-location choice-choice of location size-regulations

Social network-evolution-ageing

ProcessingAnalysis, figures,evaluation

Initial demand year n +1

Information year n+2-new housing-new work places-new service locations


The construction of the very large choice sets is still computationally very expensive and, therefore, often not properly addressed. Previous work has served to highlight the shortcomings and issues, but has not yet integrated the proposed solutions into a working system,

• Service Provider AgentsThe agent-based models do not model the

choices of the suppliers of these services,

so-called service provider agents, i.e.,

retailers, car sharing companies, restaurant

chains, banks, etc. For a long-term model

of land use and transport at the parcel level,

it is not possible to ignore the moves of the

firms in response to transport and land use

policies.

The design of the agents will be developed

based on a review of the existing

literature about the strategies of the

service providers, so that the scope of the

capabilities is both realistic and appropriate.

In case of retailers, the project can draw

on initial work undertaken at ETH, where

detailed interviews of retailers (Löchl

2010) were undertaken (Arentze and

Timmermans 2007). The design phase will

specify the internal model of agents, which

will be used to adapt their network of

locations, capacities and service/price levels.

While formal optimisation techniques are a

possibility, the preferred approach at this

time is, for example, a guided adaptation

(Ciardi et al. 2008).

Previous work has served to highlight the

shortcomings and issues, but has not yet

integrated the proposed solutions into a

working system, which is the only way to

verify if the parts work together or if other

solutions have to be found.

The description of the alternatives will

include the usual variables: attributes of

the apartment, accessibility, etc., for the

case of residential location choice, and

generalised cost elements for the given

schedule (including parking variables), store

size brand name, etc., for the activity and

firm location choice. However, to address

the issues of choice set size but also to take

advantage of new available data sources,

the description of the alternatives will have

to be enriched by further elements, such

as, capacity effects, quality of service, price

levels, target markets and brand visibility.

A further strategy to control the size and

actual relevance of the choice set will be

based on existing approaches (Horni et al.

2009, and Scott 2006), to incorporate the

time-space constraints of the schedules

(Hägerstrand 1970). Those approaches

have improved the performance of the

choice models. However, since they still lack

a coherent way to estimate the appropriate

endogenous size of the time-space prisms,

the research will particularly focus on this

problem.

The incorporation of social networks and

analysis of its impact to location choice

problems is a further aspect of the research

and described later in this article.



(Lanzendorf 2003), the survey planned

here will combine the capture of the

Most work so far has centred the social networks on the contacts, which are relevant for joint leisure, but has omitted the fact that people also have attachments to particular places and firms.

In addition to the literature review, the

design phase needs to be complemented

with local information. A series of qualitative

interviews will be undertaken with service

providers in the industries of interest. The

interview results will detail the software

design and provide initial estimates for the

necessary parameters (e.g., minimum store

sizes, minimum-maximum catchment areas,

investment costs, labour pool preferences,

etc.).

The software design of the service provider

agent will be rather generic so that the

concept can also be adapted for the medium

term model. In that spirit, agents will be

implemented to manage and optimise, for

example, the taxi fleet.

Following on the design phase, the agents

will be implemented and tested in isolation

to see that the code performs as designed.

The capabilities will include the definition of

chains, the addition and removal of locations,

choice of service and price levels for each

location of a chain. Once the software runs

stable and delivers meaningful results, a joint

test will be performed in order to understand

the interactions better and various future

scenarios will be tested.

• Social NetworksAs pointed out above, the second element

missing for a destination choice at the

parcel level is the understanding of the

social network structures influencing these

choices. In this context, an original survey

will be undertaken in Singapore to capture

the structure of local social networks and

investigate the impact of social networks in

joint decision-making.

The survey will feature a name generator,

as this methodology has a long history in

sociology (Marsden 1990). However, so far

the geographic spread of the contacts has

normally been omitted or downplayed (Frei

and Axhausen 2007) in such surveys. Recent

work in transportation has three directions:

building models of the dynamics of social

networks, generating spatially distributed

social networks in agent-based simulations

(Hackney 2009) and, finally, capturing the

geography of the social networks (Mok and

Wellman 2007), (Carrasco 2006), (Carrasco

et al. 2008), (van den Berg et al. 2009),

(Frei and Axhausen 2011b) (Figure 5). While

Axhausen et al. (2006) had focussed on the

interaction with the mobility biography

...the design phase needs to be complemented with local information. A series of qualitative interviews will be undertaken with service providers in the industries of interest. The interview results will detail the software design and provide initial estimates for the necessary parameters...



The survey will be conducted as an ego-centric survey of contacts with whom the respondents spend their leisure time and fulfil the priority of obtaining a general and broad understanding of the network geographies. Special care will be taken to involve both citizens and foreign residents to get as complete an overview as possible.


networks in a first approximation. The

in format ion about the place and

firm attachments complements the social

geography. Information about the mobility

biography will place the current situation

into the biographical context of the

respondents.

Implication Of Social Network On Location ChoiceThe survey results will allow to do two

things, firstly, generalise the social networks

to the population as a whole (Arentze and

Timmermans 2006), (Hackney and Marchal

2008), (Frei and Axhausen 2011b), (Arentze,

Kowald and Axhausen 2011) by linking the

agents via a probabilistic model, and secondly,

establish new model structures to capture joint

decision-making in destination choice (Frei and

Axhausen 2011a).

Based on the substantial literature on joint

household decision-making in transport

(Zhang et al. 2007) and on-going work within

the SustainCity project (SustainCity 2011),

suitable model structures will be developed

to capture the joint choice of locations within

social networks, in particular, for leisure

social network with the network of links

and preferences to particular places and

brands. Most work so far has centred the

social networks on the contacts, which are

relevant for joint leisure, but has omitted

the fact that people also have attachments

to particular places and firms.

The survey will be conducted as an ego-

centric survey of contacts with whom the

respondents spend their leisure time and

fulfil the priority of obtaining a general

and broad understanding of the network

geographies. Special care will be taken to

involve both citizens and foreign residents

to get as complete an overview as possible.

The survey will give insights, as discussed

above, in the number and geography of

social networks of the Singapore residents

and of the frequency of their interactions.

The uses of ‘clique’, an item tested in

the current work at ETH Zurich (Kowald

and Axhausen 2010), will allow us to

characterise the internal structure of the

Figure 5: Residential locations of the respondents (Zurich only) and acquaintances, as reported in Frei and Axhausen (2011b)


Key Impacts And OutlookThe integration of the two time horizons,

m e d i u m a n d l o n g , is a s i g n i f i c a n t

methodological innovation that will enable

a global analysis of complex issues related to

mobility in the future, as the various modules

of the system can be integrated as the issue

concerned requires. Hence, this framework

allows large-scale policy tests for various

temporal dimensions. However, the system

will be first explicitly tested for stability of

the simulation results, multiple equilibria and

heterogeneous demand- and supply-side

agents.


The integration of the two time horizons, medium and long, is a significant methodological innovation that will enable a global analysis of complex issues related to mobility in the future, as the various modules of the system

can be integrated as the issue

concerned requires.

activities. The challenge will be to integrate this

within the MATSim approach of modelling the

whole daily schedule. The interaction of the

joint choice on the then partially coordinated

schedules will be the focus of the work. It is

open at this point whether the most productive

path will be a joint optimisation/satisfaction

approach or an explicit discrete choice model.

Both options will have to be explored and

tested.

From a medium-term horizon, the generalised

cos t s of moving persons, goods and

information can be derived from the new

framework. Policymaking is interested in

lowering these generalised costs of movement

as these induce more efficient labour and

goods markets. Policymaking also requires a

detailed account of the winners and losers of

any change in the supply, regulation and costs

of transport infrastructure and services. The

proposed framework targets in this direction

and allows, due to the highly disaggregated

approach, detailed analysis of winners and

losers of change, either in infrastructure or

policy.

For policymaking over time horizons of several

years, an account of the daily flows and the

form and structure of the urban environment

is needed. The development of a spatially

detailed, path-or iented, land-use aware

transport model for Singapore will provide

new insight into the possible risks and benefits

of different policies.

The p ro j e c t will p u b l i s h its results

t h ro u g h appropr iate working papers

on the Future Cities Laboratory website

(www.futurecities.ethz.ch), peer-reviewed

journals, and supplement this with papers and

presentations at peer-reviewed, as well as,

professional conferences. The code written will

be licensed as GNU public licence and where

appropriate, it will become part of the then

current MATSim release.


References

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Arentze, T. A. and H. J. P. Timmermans. 2007. A multi-agent activity-based model of facility location choice and use. Transportation Research Record 43 (3): 33–44.

Arentze, T.A., M. Kowald and K.W. Axhausen. 2011. A Method to Model Population-Wide Social Networks for Large Scale Activity-Travel Micro-Simulation, Working Paper, 698, IVT, ETH Zurich, Zurich, Switzerland.

Axhausen, K. W. 2006. Moving through nets: An introduction, ed. K. W. Axhausen. Moving Through Nets: The Physical and Social Dimensions of Travel: 1–7, Elsevier, Oxford, UK.

Axhausen, K. W., A. Frei and T. Ohnmacht. 2006. Networks, biographies and travel: First empirical and methodological results. Paper presented at the 11th International Conference on Travel Behaviour Research (IATBR). Kyoto, Japan.

Balmer, M., K. Meister, R. A.Waraich, A. Horni, F. Ciari and K.W. Axhausen. 2010. Agentenbasierte Simulation für location based services, Final Report, F&E Förderung: Science to Market: KTI 8443.1 ESPP-ES, Datapuls AG, IVT, ETH Zurich, Zurich, Switzerland.

Bradley, M. A. and J. L. Bowman. 2006. Design features of activity-based microsimulation models for U.S. metropolitan planning organizations. Paper presented at the Innovations in Travel Demand Modeling (ITM’06). Austin, USA.

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Acknowledgement

The authors thank National Research Foundation of Singapore which is funding this research programme, and the Future Cities Laboratory as part of the CREATE initiative. Furthermore, we are grateful to the numerous data providers, especially Land Transport Authority of Singapore, Urban Redevelopment Authority, Singapore Land Authority, SingStat, and Housing Development Board, to name a few. Finally, we appreciate the collaboration with the colleagues from Future Urban Mobility, MIT SMART and from TUM CREATE.



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K.W. Axhausen is Professor of Transport Planning at the ETH Zürich.

Prior to this, he worked at the Leopold-Franzens Universität, Innsbruck,

Imperial College London, the University of Oxford and the Universität

Karlsruhe. He has been involved in the measurement and modelling

of travel behaviour for the last 25 years, contributing especially to the

literature on stated preferences, micro-simulation of travel behaviour,

valuation of travel time and its components, parking behaviour, activity

scheduling and travel diary data collection. His current work focuses on

the agent-based micro-simulation toolkit MATSim (see www.matsim.org) and on the land-use/

transport interaction.

Alex Erath is currently senior researcher and research module

coordinator at the Future Cities Laboratory. He obtained his PhD

from the Swiss Federal Institute of Technology ETH where he studied

the vulnerability of transport infrastructure. He was also involved

in various projects focusing on measuring and modelling transport

related decision processes. His MSc. thesis in Civil Engineering at

ETH on shopping location choice was awarded with the VSS price

for the best thesis in Road and Transportation research.


Transport Mobility Management: Small Changes - Big Impacts

What is Transport Mobility Management?Transport Mobility Management (also known

as Transport or Travel Demand Management)

has been a key tool in transport planning since

the early 1990s. The idea that the demand

for transport could and indeed should be

managed marked a shift in attitude from the

earlier ‘predict and provide’ approach, where

future transport demand was predicted and

the necessary infrastructure was provided.

At the core of its definition is the ability to

influence travel behaviour and shift travel

activity to achieve a desired site or location

specific objective. This could be a reduction

in car use to ease congestion and improve

journey times along a particular route, or an

increase in the use of a particular mode of

transport to support its operation. A study

carried out by the European Union defines

mobility management as follows:

‘‘Mobility management is primarily a

demand-oriented approach to transport

that involves new partnerships and a set of

tools to support and encourage change of

attitude and behaviour towards sustainable

modes of transport. These tools are usually

based on information and organisation,

coordination and require promotion.

Mobility management addresses specific

target groups and has developed a range of

instruments, best known are the mobility centre

and the mobility plan. Mobility management is

a constant process of development”Source: European projects,

MOSAIC and MOMENTUM

The phrases in bold are at the heart of the

mobility management approach. The set of

tools that can be used as part of an overall

TMM strategy are wide-ranging. The crucial

issue is that ‘hard’ infrastructure measures

Transport Mobility Management: Small Changes - Big Impacts Understanding TMM in the Urban ContextDamian PRICE and Amy LEATHER

AbstractAlthough Transport Mobility Management (TMM) is still considered a relatively new element of the transport practitioner’s toolbox, it is increasingly being adopted by governments and city planners as a dynamic approach that can support a wide range of environmental, economic and social goals. This paper presents three examples of international best practices in TMM and examines their success in the implementation of a variety of measures and initiatives. It argues that the more successful TMM initiatives are those that are embedded in the wider transport approach of a government, authority or service provider. It goes on to identify the top ten factors for success that should be considered when taking forward TMM.



are supported by ‘soft’ measures that include

engagement, marketing, and information

provision. These ‘soft’ measures are

the elements that make TMM distinctive

from traditional forms of transport planning;

they complement and reinforce the ‘hard’

infrastructure measures, thus maximising the

potential impact. Table 1 shows the various

TMM strategies that can be adopted and

examples of corresponding hard and soft

measures that can be implemented. Some of

these measures can be adopted at the city

level, for example, the provision of a new bus

route; whilst others can be adopted at a site

specific level, for example, limiting the car

parking availability at a particular organisation.

Today, an increasingly multi-disciplinary

approach is being taken to transport planning,

where it is recognised that the application

of mobility management principles can

successfully support not only environmental

goals by encouraging the use of more

sustainable goals of travel, but also a wide

range of land use planning, economic and

social goals.

Mobility Management in PracticeTo date, governments in the UK, USA, Europe

The idea that the demand for transport

could and indeed should be managed

marked a shift in attitude from the

earlier ‘predict and provide’ approach,

where future transport demand

was predictedand the necessary

infrastructure was provided.

and Australia have been the most proactive

in adopting and applying TMM tools and

strategies. Generally, the key objectives

have been to reduce traffic congestion and

associated negative effects, such as increased

journey times, and to achieve a shift in travel

behaviour towards the use of more sustainable

modes. Two established examples of best

practices in TMM in the UK and Ireland are

discussed below, followed by the example of

Abu Dhabi, which is currently developing its

own comprehensive TMM strategy.

London Borough of Sutton, UKThe application of TMM measures at a small

scale can still be highly effective in achieving

sustained changes to travel behaviour. The

Smarter Travel Sutton project was launched

in 2006 as a three year, £5m scheme, to

introduce measures and initiatives that would

encourage sustainable travel behaviour. The

project focused on soft measures, such as,

the provision of travel information, marketing

and promotion, rather than installing new

infrastructure. The key measures adopted and

their achievements are shown in Table 2.

The Smarter Travel Sutton project

was launched in 2006 as a three year,

£5m scheme, to introduce measures

and initiatives that would encourage

sustainable travel behaviour.

Project planning took place as part of an annual

cycle of activities, with a feedback loop built into

the process to ensure that lessons were learnt and

continual improvements were made. Figure 1

illustrates the annual cycle of phased activity.



Table 1: The Transport Mobility Management Toolkit

TMM Tools Hard Measures Soft Measures

Provision of improved travel options

• New public transport routes / services

• Private shuttle buses for employers

• Dedicated cycle lanes and other cycling support facilities

• Improved pedestrian footways and other walking support facilities

• Provision of travel information, e.g., route maps which show safe walking and cycling routes

• Implementation of a car sharing database

• Cycle training

Incentives to use more sustainable modes / disincentives to travel by car

• Reduce availability of car parking spaces

• High Occupancy Vehicle priority• Provision of cycle parking

• Cycle training • Discounted tickets for use on public

transport services

Land use management

• Transit Oriented Developments • Streetscape improvements, e.g.,

pedestrianisation

• Parking pricing strategies

Policy and institutional reform

N.A. • Requirement for site specific TMM plans to be prepared and implemented for new developments

• Policy changes to encourage transport service competition and efficiency

• Integration of land use and transport planning agencies

Marketing, awareness, promotion and engagement

N.A. • Special events, e.g., ‘Walk to Work on Wednesday’ and ‘In Town Without My Car Day’

• Branding, e.g., logos• Provision of travel information, e.g.,

on company websites • Social marketing campaigns• Promotional initiatives to support

new / existing specific elements of TMM

Travel reduction initiatives

N.A. • Flexible working, smarter working methods, e.g., working from home, compressed working hours

Implementation Tools • Workplace TMM plans• School TMM Plans• Visitor TMM Plans• Residential TMM Plans• Personal TMM Plans

N.A.


Table 2: Key Measures Adopted in the Smarter Travel Sutton Project

Initiative Key Achievements

Workplace travel planning – support and advice offered to larger employers to assist them in the development and implementation of their own travel plan

• All major employers engaged; 16,000 employees covered

• Average 2% reduction in car use for work trips

School travel planning – each school was offered support and advice in the development and implementation of their own travel plan

• First London Borough with 100% school travel plan coverage

• Average 5% point reduction in car use for trips to school (some schools achieved reductions as high as 17%)

Personalised travel planning – every household was offered tailored travel information and incentives to use appropriate sustainable modes. Residents were also targeted through doctor referrals

• 52% of the participants who participated in the doctor referral scheme reported reducing their car use

Car clubs – on-street vehicles that can be booked in advance and rented out by the hour by car club members

• 300 car club members and 16 vehicles in the scheme

• Average utilisation equates to six hours per day per car

Promotion of cycling – provision of cycle training, additional on-street cycle parking spaces, themed events

• 50% increase in the number of recorded cycle trips compared to stable levels across other outer London Boroughs

Marketing, awareness and promotions – major festivals, events and roadshows, direct marketing campaigns, incentives and rewards

• Increase in awareness of available alternative travel modes

• Contribution to mode shift results, e.g., 13% growth in the number of bus passengers in the borough compared to a 9% increase in an adjoining borough

The case study of Sutton offers some

interesting and useful lessons in behaviour

change that should be considered in the future

application of TMM. Although the project has

achieved measureable success, the adoption of

some behavioural change theories could have

increased the level of effectiveness of the overall

approach taken. The Diffusion of Innovation


model explains how a new technology or

idea becomes adopted by a population.

Those people who are first to adopt the new

technology or idea are described as Innovators,

followed by Early Adopters, Early Majority, Late

Majority and Laggards. They can be arranged

linearly on a bell curve as shown in Figure 2.


Figure 1: Sutton Smarter Travel Project Delivery Cycle (Source: ‘Smarter Travel Sutton: Lessons Learnt in the Delivery of a Behaviour Change Programme, Summary Report,’ November 2009).

Although the project has achieved

measureable success, the adoption

of some behavioural change

theories could have increased the

level of effectiveness of the overall

approach taken.

Although one of the key objectives of the

project was to target the Early Adopters and

the Early Majority through the initiatives set out

in Figure 2, it may have been more effective

if baseline consumer research was carried out

into the characteristics of these Early Adopters.

In addition, for some of the key measures,

such as, the promotion of cycling and the

introduction of car clubs, it may have been

more effective to focus on the likely Innovators,

given that relatively few people in Sutton were

using these modes at the outset of the project.

Smarter Travel IrelandIn some cases, the move towards the

application of TMM is facilitated by the

introduction of an overarching national policy

on sustainable travel. In the case of Ireland,

it was the adoption in 2009 of the ‘Smarter

Travel: A Sustainable Transport Future’ strategy

published by the Irish National Government

that led to increased investment and interest in

the promotion of sustainable modes of travel.


Figure 2: Diffusion of Innovation Model (Source: ‘Smarter Travel Sutton: Lessons Learnt in the Delivery of a Behaviour Change Programme, Summary Report,’ November 2009).

Innovators 2.5%

EarlyMajority 34%

EarlyAdopters 13.5%

LateMajority 34%

Laggards 16%

100

75

50

25

0

Markets Share %

Strategydevelopment

Forwardplanning

programmeand budget

forecast

Programmeand budget

management

Projectmanagement

and staffmanagement

Monitoringand evaluation

Reportingdissemination

andimprovement


As resources to implement such policy

initiatives are limited, one of the key initiatives

developed by the Irish Government in support

of the Smarter Travel strategy is a national

funding competition that was established to

deliver outstanding and innovative examples

of sustainable travel in areas across Ireland.

Local governments are required to develop

an appropriate package of measures and

demonstrate adequate stakeholder support for

such measures. Such a competition means that

only those strategies and measures considered

to be most effective are funded.

One of the 11 shortlisted Stage 1 applicants

that were invited to progress to Stage 2

is Limerick City Council. Limerick and the

other shortlisted applicants competed for

funding of up to £50m over five years to

transform them into world class Smarter Travel

demonstration zones. Limerick City Council’s

overarching programme contains four separate

geographical areas of focus, each with their

own distinct target groups:

1. City Centre – employees;2. Southill – regeneration;3. Corbally – residential; and4. Castletroy / University – mixed use.

Specific initiatives and campaigns were

developed for each target group or hub, which

sat underneath the over-arching, area wide

TMM programme. Thus, the local authority

had the ability to amend or ‘tweak’ its TMM

approach in order to engage more appropriately

with relevant target groups. These hubs are

the key local trip attractors and generators in

Limerick and therefore form a suitable basis for

the development of smarter travel initiatives. It

is proposed that local champions be designated

for each hub, who will provide a recognisable

‘face’ behind the initiative and help to achieve

maximum levels of public awareness and also

local ownership. Each hub will be the focus of

a number of initiatives, summarised in Table 3 .

In some cases, the move towards the

application of TMM is facilitated by

the introduction of an overarching

national policy on sustainable travel.

One of the key factors in Limerick’s successful

bid was that it demonstrated a high level of

political and stakeholder support for the

measures it proposed. Limerick City Council

and Limerick County Council worked together

in partnership with the University of Limerick

to develop the overarching programme. In

addition, the measures proposed not only

encourage sustainable travel, but also a shift

to more healthy and sustainable lifestyles.

One of the key factors in Limerick’s

successful bid was that it demonstrated

a high level of political and stakeholder

support for the measures it proposed.


Implementation of TMM in Abu Dhabi

The Emirate of Abu Dhabi took the decision to

develop a TMM strategy as part of its Surface

Transport Master Plan process in 2008. The

Emirate is experiencing significant changes; a

potential trebling of the population by 2030

and extensive plans for the development of

public transport. Prior to 2007 there were few


Table 3: Overview of Measures Proposed as Part of Limerick City Council’s Smarter Travel Bid

Measures

Cycling / Walking • New cycle lanes and walkways.• Installation of Advanced Stop Lines (ASLs) for cyclists at traffic signal

junctions• New covered cycle parking• Adult cycle training lessons• Provision of bike racks on local bus services

Travel Planning • Appointment of Mobility Co-Ordinator• Employer Travel Plan Networks• School / residential / student / station travel planning• Car sharing management tool

Research and Marketing • Local campaigns and events to support the use of particular modes e.g. electric vehicles

• GIS mapping of commuters

Policy Changes • Introduction of thresholds for travel planning into local policy• Park and Ride scheme• Real time bus information• Parking regulations• Parking management• Speed limit changes

supplement this with a light rail system and a

metro system. Despite the economic downturn

of 2009, there is still considerable development

taking place across the Emirate; most markedly

within the city centre.

TMM development began in January 2011 and

is scheduled for completion at the end of the

year. Core elements of the Abu Dhabi TMM

approach include:

The Emirate is experiencing significant

changes; a potential trebling of the

population by 2030 and extensive plans

for the development of public transport.

• A review of wider transport activity to

understand how and where TMM can fit into

the ongoing development of the transport

network;

• A review of international best practices in

TMM to understand the strategies and tools

that work well and those that don’t;

• Pilot TMM plans at a range of sites across the

Emirate, including workplaces, schools and

visitor attractions;

• The development of various surveying tools

that will facilitate the adoption of a robust,

standardised approach to monitoring that

will substantiate further development of

TMM;

• Modelling and quantitative assessment, to

better understand the potential impacts

of TMM on congestion, trip numbers and

carbon emissions;


or no alternatives to the private car. The newly

developed bus network already experiences

significant demand and there are plans to



• The development of a brand for TMM in

Abu Dhabi and an associated marketing

programme;

• Identification of the legislative and policy

changes needed to support TMM;

• Guidance on the incorporation of TMM in the

development process;

• The deve lopment of a short - term

implementation programme and action plan;

• The preparation of a TMM Toolkit that

organisations can use in taking forward their

own TMM plans; and

• An overarching TMM strategy that sets out

how the concept can be moved forward.

This programme is the most ambitious

application of TMM in the region. As it is also a

relatively new concept, a number of challenges

have arisen. A summary of the key issues that

the TMM programme has needed to address is

provided in Table 4.

Critical Factors for SuccessWhilst TMM is still considered a relatively

new element of the transport practitioner’s

toolbox, the examples cited above are part of

a growing evidence base of TMM approaches

and applications across the world. The more

successful TMM initiatives are those that are

embedded in the wider transport approach of

a government, authority or service provider.

TMM is not a stand alone concept; it is a

dynamic approach that can maximise the

potential of new and existing infrastructure

and policy (Table 5).

Table 4: Core Challenges for TMM in Abu Dhabi

Challenge Approach Taken to Address Challenge

1. A lack of awareness of TMM

An extensive stakeholder engagement programme to inform and secure buy-in

2. The view that TMM is solely a European / USA concept

The need to keep driving home the message that TMM is about delivering site specific / locally appropriate initiatives that meet the needs of local users.

3. The need to understand the potential Abu Dhabi specific benefits of TMM

Close engagement with pilot organisation to assess the role that TMM can play and where the benefits lie. The key output was that TMM will play a useful role in the Corporate and Social Responsibility agenda.

4. The need to quantify the potential benefits

An impacts assessment undertaken to show the potential benefits. This, along with the use of international best practice examples helps to facilitate the roll out of the TMM programme.

5. A lack of TMM skills and experience that are needed to ensure momentum is maintained

Whilst TMM is not an expensive initiative in comparison to new infrastructure projects, it is labour intensive. It requires ongoing input from those that understand TMM to upskill new individuals and organisations. This can be done quite quickly but cannot be ignored.

TMM is not a stand alone concept;

it is a dynamic approach that can

maximise the potential of new and

existing infrastructure and policy.


Table 5: Top Ten TMM Measures for Success

Top Ten TMM Measures for Success: These factors are by no means exhaustive.

However, they do provide a useful core checklist that can contribute to the successful

implementation of TMM.

1. A National Approach TMM needs to be defined at the national level, with a consistent approach adopted countrywide. This is not to say that initiatives need to be on a national scale. However, the core TMM objective and philosophy needs to be set out at the highest level.

2. Integration with Land Use Planning and Wider Policy

TMM is not a stand alone element of transport planning. Our earlier examples highlight how the impact of TMM measures can be increased when incorporated into wider planning and transport impacts. When any transport or planning decision is being made, the question should be asked, ‘What is the role of TMM in this?’

3. Incorporation into the Development Process

TMM can have the biggest impact when incorporated into new developments. Many countries across the world require new developments above a specified size to develop a site specific TMM plan that mitigates the transport impact on the surrounding network. The TMM plan does not facilitate additional traffic – it pro-actively reduces it.

4. High Level Commitment

TMM needs to have senior level support and buy-in. It needs to have ‘innovators’ who support the concept from the outset.

5. A Robust Stakeholder Engagement Approach

A key element of TMM is the way in which it achieves stakeholder involvement from a wide range of societal sectors. These could be business leaders who facilitate the implementation of TMM plans in the workplace, or schools which influence student travel. A robust TMM programme needs to identify who it should engage with, when, how and why (refer to the Bell Diffusion of Innovation Model noted earlier).

6. Pilot Studies to Gather Evidence of Success

It is important to understand which are the site specific TMM quick wins in a particular area. What are peoples’ views on TMM? These will differ from city to city and country to country. Therefore, the best way to ensure that a TMM programme is right for an area is to undertake pilot studies. This also ensures that quick wins can be implemented; thus people can see the benefits immediately.



7. Targeting and Segmentation

A number of different messages can be used to achieve TMM objectives. For this to be done successfully, specific target groups need to be identified, for example, employees in a particularly congested part of the city, all Central Government employees or those with a strong interest in the environment. For each group, the message and initiatives will differ – as will the propensity to change travel behaviour. This influences the direction of the TMM programme.

8. Branding, Marketing and Social Marketing

Awareness is key to the success of any TMM programme. Therefore, it is useful to have a central, recognised branding strategy. This can be supported by area wide marketing activities to promote specific initiatives; for example, the development of a new car sharing tool. However, the next level – social marketing – is where the benefits can truly be realised. This is where campaigns and events are targeted at specific groups; for example, a TMM roadshow for employers along a particular public transport route, or a sustainability themed event for a particular community.

9. Emphasising the Site

Specific Nature of

TMM

Not all TMM measures are suitable everywhere. Some need to be

enhanced or refined to meet particular local needs. Others are only

appropriate in particular locations. For example, in Abu Dhabi, the

potential for cycling in the summer months is limited due to the hot

climate.

10. Recognition that

TMM is for the

Longer Term

The definition at the beginning of this paper highlights that TMM is a

continuous process. It does not stop at a particular point. TMM is an

ongoing concept that changes over time to best meet and address the

needs of the target groups it is designed for.


ConclusionMobility management has the power to create a shift in overall attitudes and perceptions to travel

and transport. It has achieved significant success in a variety of cities across the globe and could

be an integral part of the forward planning of many more.

References

Mott MacDonald Ltd. 2009. ‘National Smarter Travel Areas Competition: Limerick City Council and Limerick County Council in Partnership with the University of Limerick’, October 2009.

www.smartertravel.ie (accessed 13 September 2011).

The Mayor of London, the London Borough of Sutton and Transport for London. 2009. ‘Smarter Travel Sutton: Lessons Learnt in the Delivery of a Behaviour Change Programme, Summary Report’, November 2009.



Damian Price is a Senior Project Manager at Mott MacDonald. He has

extensive international experience in sustainable transport and mobility

management and has been appointed to:

• Transport for London’s Travel Plan Site Specific Advice Panel;

• The Olympic Delivery Authority’s Travel Advice to Businesses Panel of

Advisors; and

• The Irish Department of Transport’s Panel of Expert Technical

Advisers for ustainable Travel.

Amy Leather is a Transport Planner in Mott MacDonald’s Singapore office.

Amy has been involved in the development of a wide range of TMM plans

in the UK, Ireland and the Middle East and has successfully delivered

sustainable travel initiatives on behalf of public sector agencies and for

private organisations, including workplaces, residential developments and

event venues. Amy is currently developing policy guidance on behalf of

Abu Dhabi Department of Transport to integrate the requirement for TMM

plans into the planning process. She is also developing a TMM Plan Toolkit, which provides best

practice guidance in the development of TMM plans for workplaces, educational institutions,

residential developments and visitor attractions.

Damian is currently Project Manager for the development of an Emirate-wide TMM strategy for

Abu Dhabi, which aims to promote sustainable transport behaviour and facilitate a sustained

change in attitudes to travel.


IntroductionTravelling is part and parcel of modern urban

living – people travel for work, education,

recreation and many other reasons. For

those who do not own motor vehicles,

public transport could be their main means

of travel. Because of its economic and social

importance, public transport is considered

an essential service in most cities, much like

electricity, water and telecommunications.

Hence ensuring effective and efficient

provision of public transport services is a

priority of most governments.

Different cities have adopted different

approaches to public transport provision, each

with their own pros and cons. The history of

public transport in many cities shows how

views on the appropriate method of provision

have evolved over time. This article aims to

provide a brief survey of different approaches

Different Approaches to Public Transport ProvisionDavid A. HENSHER and Gabriel WONG

AbstractPublic transport is an essential service, and ensuring its effective and efficient provision is a priority of many governments. Different cities have adopted different approaches to public transport provision, each with its merits and shortcomings. This article provides a brief overview of the main approaches – government operation, competition in the market, government regulation of fares and services, competitive tendering, and negotiated performance-based contracts – with some real-world examples. There is no one-size-fits-all model, and cities have to decide the appropriate approaches for themselves based on their contexts and priorities. Singapore adopts an approach where the government regulates public transport fares and services provided by private operators. This has worked reasonably well, with some room for improvement.

of public transport provision and Singapore’s

approach. A global perspective is provided

in the many papers from the International

Conference Series on Competition and

Ownership of Land Passenger Transport

(the “Thredbo Series” http://www.thredbo-

conference-series.org/papers/).

Historical Trends in Public Transport ProvisionThere was a wave of nationalisation in the 1940s

to 1970s followed by privatisation from the late

1970s in many countries. At the core of the

nationalisation and privatisation waves were

those industries providing essential services,

such as public transport, telecommunications,

electricity and gas.

In the first half of the 20th century, urban public

transport services in the UK and the US were

mainly provided by private enterprises.

Different Approaches to Public Transport Provision



operators to be efficient, innovative and reduce

costs. These would in turn reduce the need for

government subsidies, hence lightening the

fiscal burden on governments and taxpayers. In

addition, lower unit operating costs of private

operators could also lead to lower fares.

In many cities, privatisation was accompanied

by the introduction of competitive tendering

for public transport provision in the 1980s

and 1990s, which usually led to substantial

unit cost reductions. However, in several cases,

unit costs actually increased in subsequent

competitive tenders without corresponding

service improvements. This has led to

discussions over the need for an alternative

approach to competitive tendering in the form

of negotiated performance-based contracts

(Hensher 2007).

Public Transport Industry Structure Similar to electricity, water, gas and

telecommunications, a large proportion

of public transport costs comes from

expenditure on infrastructure, for example,

bus interchanges, rail stations and tracks, and

operating assets, such as trains and buses. The

other main cost component is the costs of

operations and equipment maintenance. Due

to the high fixed costs relative to operating

However, rapidly rising automobile ownership

after the Second World War led to a drastic

decline in public transport ridership and

revenues. Public transport service levels fell as

these transport enterprises cut costs to survive.

To maintain service provision, governments

decided to nationalise their decrepit public

transport industries by taking over the failed

transport enterprises in the 1940s to 1960s.

Due to inefficiency and the lack of

incentives to reduce costs, unit operating

costs in many government-operated public

transport enterprises increased steadily after

nationalisation. Public transport operations

had to be heavily subsidised to maintain

service levels and affordable fares. With rising

government debt in many countries since the

1970s, it became increasingly unsustainable

to continue subsidising public transport. The

lack of funds also led to significant under-

investment in public transport infrastructure

and assets.

Since the 1980s, many cities in Australia,

Europe, the UK and the US have privatised public

transport provision, in attempts to harness the

market to keep costs down and tap on private

finance for infrastructure investment. It was

believed that, under private ownership and

operation, the profit motive would incentivise

Due to inefficiency and the lack

of incentives to reduce costs, unit

operating costs in many government-

operated public transport

enterprises increased steadily after

nationalisation.

In many cities, privatisation was

accompanied by the introduction

of competitive tendering for public

transport provision in the 1980s and

1990s which usually led to substantial

unit cost reductions.


costs, public transport, especially in local

urban contexts, can be considered a natural

monopoly with significant economies of scale.

This means that one large operator can supply

public transport services at lower costs than

two or more smaller operators.

While there are potential benefits, there are

also risks associated with privatisation. Basic

economic theory warns of the dangers of

monopoly, public or private. Driven by the profit

motive, private monopolies could exploit their

market power to charge much higher prices

than would have been possible with market

competition. They may also reduce costs by

lowering service levels, such as reducing service

frequencies and equipment maintenance

levels. An effective regulatory framework with

price control must be in place to ensure that

monopoly exploitation does not occur.


Government OperatorsSome would argue that, since private

monopolies are likely to abuse their market

power, it would be preferable to nationalise

public transport. Nationalisation can be

defined in several ways, for example, it could

mean the government taking over transport

planning, ownership of infrastructure, or

service provision. In this article, nationalisation

is defined specifically as government provision

of public transport services.

Proponents believe that government-run public

transport operators which are not profit-driven

would be less likely to abuse their market power,

and would place greater priority on public

service objectives, such as affordable fares and

service enhancement. The government would

also have more direct control over fares, supply

of services, and service quality.

However the lack of a profit motive provides

little incentive for government operators to

be efficient. While it is possible to set clear

performance objectives for public enterprises,

the experience in several countries has shown

that government operators have generally

failed to operate efficiently and their unit costs

have increased steadily over the years. They

would also face greater political pressure to

provide unprofitable services.

A benchmarking study done in 2008 compared

Sydney’s government-run rail operator CityRail

with Melbourne’s private rail operator Connex

(LEK 2008). Both operators were comparable in

scale but there was a disparity in cost efficiency.

Using data from 2006/7, the study found that

Connex’s costs were lower than CityRail’s.

Connex’s annual rolling stock costs were 40%

Due to the high fixed costs relative

to operating costs, public transport,

especially in local urban contexts, can

be considered a natural monopoly

with significant economies of scale.

This means that one large operator

can supply public transport services

at lower costs than two or more

smaller operators.

Some would argue that, since private

monopolies are likely to abuse their

market power, it would be preferable

to nationalise public transport.



less than CityRail’s. Connex’s crewing costs per

service kilometre were about half of CityRail’s,

while the former’s station costs per passenger,

overhead costs per service kilometre, and

employees per service kilometre were less than

half of the latter’s.

Competition in the MarketAt the other extreme, the government could

deregulate (through relaxing price and quantity

controls) the public bus services market and

allow private operators to compete in the

market. Operators are allowed to choose

the routes they wish to serve and set fare

and service levels. This could lead to cherry-

picking where only profitable routes with

high commuter demand would be served,

sometimes by more than one operator, as is the

case in New Zealand. Competition between

the operators, however, encourages them to

be cost efficient and reduce their operating

costs, and could lead to increased choice and

lower fares for commuters, but the evidence in

urban areas is that natural monopoly tends to

result in a single service provider.

However, competition in the market, with more

than one operator providing bus services on

the same routes, leads to wasteful duplication

of fixed costs and may prevent operators

from reaching sufficient size to benefit from

economies of scale. In addition, unprofitable

routes with low commuter demand would not

be served. This could lead to a fragmented

public transport system with poor connectivity

and accessibility where commuters have to

make several transfers and journey times are

long. Competition for passengers between

buses could also lead to unsafe driving and

unreliable schedules.

Although unit costs fell after privatisation and

deregulation of bus services, the experiences

of Sri Lanka with ‘peoplisation’ in the 1990s

(Gomez-Ibanez 1997) and Britain (outside

London) after deregulation in 1986, show

the shortfalls of competitive and unregulated

bus markets. Their bus networks were not

integrated, leading to unserved corridors and

timings with low demand. Bus drivers drove

recklessly to compete for commuters and

waited at bus stops until their buses were full.

In Sri Lanka, buses were often overcrowded,

old and not well-maintained. Singapore’s

experience with an unregulated bus market

before the 1970s was similar to Sri Lanka’s.

In Britain, bus services in some areas are

monopolised by large operators after they

priced out smaller competitors and fares would

rise.

Proponents believe that government-

run public transport operators

which are not profit-driven would

be less likely to abuse their market

power, and would place greater

priority on public service objectives,

such as affordable fares and service

enhancement.

Competition in the market, with more

than one operator providing bus

services on the same routes, leads to

wasteful duplication of fixed costs

and may prevent operators from

reaching sufficient size to benefit

from economies of scale.



Government Regulation of Fares and ServicesWith privatisation of essential services,

governments often have to be more involved

in regulating monopolistic operators to prevent

abuse of market power. They may have to

regulate prices and service levels to ensure

affordability and minimum service standards.

Fare regulation involves the regulator

controlling fares that the public transport

operator could charge. The criteria for deciding

an appropriate fare level could include operator’s

costs, rate of return on assets, improvements

in productivity and fare affordability. If such

criteria are applied correctly, the resulting

subsidy is optimal in terms of value for money.

To prevent operators from cutting corners

to increase profits, it may be necessary

for regulators to specify minimum service

standards that operators have to comply

with or be penalised for non-compliance.

The standards could include service coverage,

frequency, crowding and vehicle breakdowns.

To improve public transport accessibility,

regulators may require that operators serve

some unprofitable routes and off-peak hours

as a condition for the rights to operate services.

The success of government regulation requires

that regulators be able to approximate the

optimal level of fares and service standards.

Optimal fares have to be affordable to most

commuters, but allow operators to provide

reasonable quantity and quality of services

and earn adequate profits for shareholder

dividends and capital investment. This is

difficult due to lack of information. The public

may also judge the success of the regulatory

regime based on their perceptions. Public

acceptance would drop if the operators are

perceived to be making excessive profits from

high fares or providing poor quality of service.

Singapore’s current approach to public transport

provision, which will be discussed below, is an

example of government regulation.

Competitive TenderingCompetition is important to ensure that

privatisation improves efficiency. Many cities

have introduced competition for the market

through competitive tendering (CT) of licences

to operate public transport services for a

specified duration, for example, 15 years

to operate a rail line or 5 years to operate

a package of bus services. Cherry-picking

of profitable routes could be prevented by

packaging unprofitable routes with profitable

ones or by provision of government subsidies.

Licences could be awarded based on a number

of criteria, for example, track record, proposed

fares and services, or required amount of

government subsidies.

In Britain, bus services in some areas

are monopolised by large operators

after they priced out smaller

competitors and fares would rise.

To prevent operators from cutting

corners to increase profits, it may be

necessary for regulators to specify

minimum service standards that

operators have to comply with or be

penalised for non-compliance.



Interested operators would submit competitive

bids proposing high levels of service, low

fares and low level of government subsidies

in order to win the tenders. If there is intense

competition for the tender, the winning bid

would be close to the outcome with market

competition. The transport regulator would

enter into a contract with the winning operator

based on the proposed terms. The operator

has the incentive to be as efficient as possible

to maximise profits for the limited duration

of the licence. Extension of the licence could

be contingent on the incumbent operator’s

performance. The threat of replacement after

expiry of the licence incentivises the incumbent

to maintain good performance.

Due to the durable, immobile nature of

transport investments and the essential service

nature of public transport, both parties –

the operator and the regulator acting on

behalf of commuters – are vulnerable to

opportunistic behaviour of the other party.

A long-term contract could protect both

parties from opportunism by establishing

clear commitments. The level of commitment

depends on the completeness of the contract;

a more complete contract is able to cover

more contingencies (Hensher 2010). However

it is undesirable and impossible to write a

complete contract with a long duration if the

environment is changing rapidly. A contract

that is overly prescriptive may be inflexible to

changing circumstances. Drafting a relatively

complete contract may be too difficult and

the transactions costs too high (Gomez-Ibanez

2003).

London’s bus system is the oft-cited example

of how one of the world’s largest urban bus

systems has benefited from CT at the route

level. London began privatising its government-

run bus operator and tendering bus services

in 1985, and the conversion was completed

by 1999. An expert (Cox 2004) compared

the situation in London before and after the

conversion, and found significant productivity

improvement and cost reductions. Prior to

privatisation and CT, bus costs per vehicle

kilometre had risen 79% between 1970 and

1985. This trend was reversed with costs per

vehicle kilometre falling by 48% from 1985

and 2001. Annual capital and operating

expenditures dropped 26%, despite service

expansion of a similar magnitude in the same

period. Unit costs fell 48% and productivity

measured by level of service per unit of currency

increased 91%. Government subsidies were

reduced substantially and reached a low of

zero subsidies in 1997/8. Similar benefits were

observed for Copenhagen, Stockholm, San

Diego, Denver and Las Vegas after CT was

introduced (Cox 2004).

These cost savings, however, were often once-

off, a windfall gain. Many of the cities which

experienced cost savings after introducing CT

Cherry-picking of profitable routes

could be prevented by packaging

unprofitable routes with profitable

ones or by provision of government

subsidies.

The threat of replacement after

expiry of the licence incentivises the

incumbent to maintain good performance.



saw unit costs rising in subsequent tenders,

for example, in London, Copenhagen and

Stockholm (Hensher and Wallis 2005), despite

the primary focus of CT being to lower costs,

subject to prescribed service levels. This

has stimulated discussion on alternatives to

CT, such as negotiated performance-based

contracts (NPBCs) between regulators and

operators, where there is greater emphasis on

service improvement.

Negotiated Performance-Based ContractsThrough negotiations and performance

incentives, NPBCs may better enable the

regulator to tap an operator’s expertise to

facilitate innovation, patronage growth and

service improvement. In addition, transactions

costs of NPBCs are likely to be lower than CT

as operators do not have to spend significant

sums of money to prepare tender proposals.

Efficient incumbent operators also face less

uncertainty associated with renewal of licences,

thus encouraging them to make long-term

investments. Importantly, negotiation increases

trust between the regulators and the operators

which enables better communication and

quicker resolution of issues arising from the

inevitable incompleteness and lack of clarity

in contracts, thus saving time and money

(Hensher and Stanley 2010). Critics point out

that there are risks of regulatory capture and

collusion by operators with NPBCs. However

these risks are also present in CT. NPBCs

could complement CT, with CT as a last resort

when incumbent operators fail to meet their

contractual obligations.

Analysis of a survey of bus contracts throughout

the world confirmed the effects of increased

trust in improving operators’ perceived clarity

and completeness of contract obligations,

which in turn improves the effectiveness

of NPBCs and reduces the uncertainty with

negotiations (Hensher 2010).

The Need for BenchmarksWhere there is only one operator providing

public transport services without competition

(e.g., under regulatory or contractual regimes),

it may not set fares at competitive and

affordable levels. The regulator may have to

dictate fare levels to ensure efficiency and

affordability, but this is difficult because the

regulator does not have as much information

on costs as the operator. Without benchmarks,

it is difficult for the regulator to ascertain

whether the public transport operator is

efficient. Thus the operator is likely to request

for fare increases every time its costs increase,

but it is difficult for the regulator to turn down

the request on the basis of inefficiency. The

presence of other operators under similar

cost conditions could provide benchmark

comparisons for efficiency. The regulator could

compare costs of the various operators to get

Many of the cities which experienced

cost savings after introducing CT

saw unit costs rising in subsequent

tenders...

Analysis of a survey of bus contracts

throughout the world confirmed the

effects of increased trust in improving

operators’ perceived clarity and

completeness of contract obligations...



more information, before deciding whether to

approve applications for fare increases.

In Sydney (Australia) an effective benchmarking

programme is in place (developed by Hensher

and Saha International) that is used on an

annual basis to identify bus operators (and

soon to include rail and ferries) who satisfy a

number of performance measures and those

who do not. A process is in place to warn

operators who do not pass on at least 6 of

the 8 key performance indicators (of which

cost efficiency and safety are mandatory). The

approach not only ensures operator efficiency

but also provides important data to understand

the performance of the sector, something that

is often missing under CT.

Singapore’s ApproachSingapore’s approach to public transport

provision is based on sound economic theory

and practical considerations. As with most

goods and services in the economy, the

Government believes that public transport

services could be more efficiently provided

by commercially run operators. There are

two multi-modal operators providing rail and

bus services in Singapore. Each operator has

exclusive rights to operate its rail lines and bus

services in its distinct Area of Responsibility.

The Land Transport Authority (LTA) develops the

public transport infrastructure and purchases

the rail operating assets which it leases to the

operators to operate and maintain. Operators

pay licence charges for rights to operate public

transport services. They retain revenues from

fares and rental of commercial spaces in rail

stations and bus interchanges, and pay for the

operating costs without government subsidies.

Recognising that public transport has the

characteristics of a natural monopoly, the

Government has established a tight regulatory

framework to prevent the operators from

abusing their market power to set excessively

high fares and cut corners.

The Public Transport Council (PTC), which is

responsible for regulating bus and rail fares,

uses a Fare Adjustment Formula to determine

the maximum allowable fare increase each

year, based on inflation in the operators’ costs

and a productivity extraction to be shared

with commuters. The average productivity

improvement of the two operators is used

to determine the productivity extraction.

This encourages each operator to be more

efficient than the other. The presence of two

operators allows for benchmark comparison,

and gives a better idea of reasonable costs and

service levels.

The presence of other operators

under similar cost conditions could

provide benchmark comparisons

for efficiency. The regulator could

compare costs of the various

operators to get more information,

before deciding whether to approve

applications for fare increases.

Recognising that public transport has the

characteristics of a natural monopoly,

the Government has established a tight

regulatory framework to prevent the

operators from abusing their market

power to set excessively high fares and

cut corners.



The PTC would deliberate on operators’ applications for fare increases, taking into

account the macro-economic environment,

operators’ re turn-on- tota l -assets and

affordability of fares. The PTC has often not

granted the maximum allowable fare increase.

The PTC also has the power to initiate decreases

in fares, if this is justified. This approach to

fare regulation has ensured that fares remain

affordable to most Singaporeans (Figure 1).

The PTC also regulates bus services by

establishing basic Quality of Service (QoS)

standards which comprise Operat ing

Performance Standards (OPS) and Service

Provision Standards (SPS). OPS measure

minimum daily or monthly operational

deliverables at the bus network or route levels,

such as bus reliability, loading and safety.

SPS measure overall bus route planning and

provision of services which covers service

availability, integration and provision of

information (PTC). The LTA imposes minimum

Operating Performance Standards (OPS) for

rail services which measure service quality,

safety assurance and equipment performance

through indicators, such as service availability,

schedule adherence, and severity of service

disruption. Operators would be fined for failure

to meet these standards.

The annual Public Transport Customer

Satisfaction Survey in 2010 found that more

than 92% of respondents were satisfied

with overall public transport services.

However recently there has been some public

unhappiness over overcrowding on buses and

trains during peak hours and the irregular

frequencies of buses. Since 2010, the LTA

has worked with the operators to review and

improve bus and train services. More bus

and train trips have been added to address

overcrowding. To cope with increasing

Figure 1: Public Transport Fare Increases

The presence of two operators allows

for benchmark comparison, and gives

a better idea of reasonable costs and

service levels.

Index Value1.70

1.60

1.50

1.40

1.30

1.20

1.10

1.00

0.901997 1998 1999 2000 2001 2002 2003 2004

Year

Avrg MonthlyEarnings

Fare AdjustmentCap

2005 2006 2007 2008 2009 2010

Overall PublicTransport Fares



Nationalisation was popular in the 1940s to

1960s as governments attempted to provide

integrated and affordable public transport

services which the private operators were

increasingly unable to provide. Privatisation

of public transport gained ground from

the 1980s due to increased importance of

operator efficiency and fiscal sustainability.

The appropriate approach for each

government depends on what its priorities

are. As with other policies, there may not

be a one-size-fits-all model as contexts and

imperatives differ among cities. Singapore

has adopted an approach which seems to

work reasonably well, with some areas for

improvement. It could serve as a case study

for other cities attempting to improve their

public transport systems.

References

Cox, Wendell. 2004. Competitive Tendering of Public Transport. Presentation to the Urban Road and Public Transit Symposium. Montreal.

Gomez-Ibanez, Jose A. 1997. Sri Lanka Transport (A): The Bus Industry. Kennedy School of Government Case Program CRI-97-1377.0.

Gomez-Ibanez, Jose A. 2003. Regulating Infrastructure: Monopoly, Contracts, and Discretion. Harvard University Press, Cambridge, Massachusetts, and London, England.

Hensher, David A. 2007. Delivering Value for Money to Government through Efficient and Effective Public Transit Service Continuity: Some Thoughts, (including commentary of 8 respondents) Transport Reviews, 27 (4). pp 411-448.

Hensher, David A. 2010. Incompleteness and Clarity in Bus Contracts: Identifying the Nature of the ex ante and ex post Perceptual Divide. Research in Transportation Economics, 29 (1), pp. 106-117.

The appropriate approach for each

government depends on what its

priorities are.

train ridership, the LTA is expanding the

rail network and increasing capacity on the

current network.

The LTA is also enhancing competition for the

rail and bus markets. The licence duration

for rail lines has been shortened from the

current 30 years to about 15 years, thereby

encouraging the incumbent operators to

perform better in order to retain their

licences. The LTA is also studying tendering

of packages of bus routes in future, in order

to inject competition for the bus market and

spur efficiency.

ConclusionThere are different approaches to providing

public transport services, each with its merits

and shortcomings. Most governments aim

to develop integrated and accessible urban

public transport systems with reasonable

quality of services and at affordable fares.

These would ideally be fiscally sustainable,

and provided by efficient and financially viable

operators. There could be tradeoffs between

the different objectives and governments have

to strike a balance between public service and

economic efficiency.

The annual Public Transport

Customer Satisfaction Survey in

2010 found that more than 92% of

respondents were satisfied with

overall public transport services.

To cope with increasing train

ridership, the LTA is expanding the

rail network and increasing capacity

on the current network.



Hensher, David A and Stanley, John. 2010. Metropolitan Bus Service Contracts (MBSC): Thoughts on the Next Round. Institute of Transport and Logistics Studies Working Paper ITLS-WP-10-02. The University of Sydney, Sydney, New South Wales.

Hensher, David A and Wallis, Ian P. 2005. Competitive Tendering as a Contracting Mechanism for Subsidising Transport: The Bus Experience. Journal of Transport Economics and Policy, 39 (3), pp. 295-321.

LEK. 2008. Cost Review of CityRail’s Regular Passenger Services. Independent Pricing and Regulatory Tribunal, Sydney, New South Wales.

PTC (Public Transport Council), Singapore.http://www.ptc.gov.sg.

Gabriel Wong is a Researcher at the LTA Academy where he does

research on land transport policies and developments in Singapore.

He was previously with the Civil Service College’s Centre for Public

Economics, Centre for Governance and Leadership, and Institute of

Policy Development where he has written on Singapore’s experience

in the areas of economic regulation, industrial policy, and industrial

relations. Gabriel obtained his Bachelor in Social Science (Honours)

degree and completed his Master in Social Science in Economics degree

on a Research Scholarship at the National University of Singapore.

David A. Hensher is Professor of Management, and Founding Director of

the Institute of Transport and Logistics Studies at The University of Sydney.

A Fellow of the Academy of Social Sciences in Australia and Honorary

Fellow of the Singapore LTA Academy, David has received several awards

including the 2009 IATBR (International Association of Travel Behaviour

Research) Lifetime Achievement Award in recognition for his long-

standing and exceptional contribution to IATBR as well as to the wider

travel behaviour community. David is Vice-Chair of the International

Scientific Committee of the World Conference of Transport Research, and the Executive Chair

and Co-Founder of The International Conference in Competition and Ownership of Land

Passenger Transport (the Thredbo Series). David has published extensively and written many

books. He is on the editorial boards of leading transport journals, and edited volumes on

Handbooks in Transport, Transport Economics, and Transport and the Environment. Australia’s

most cited transport academic and number three academic economist, David has advised

numerous government and private sector organisations on transportation matters. His interests

are transport economics, transport strategy, sustainable transport, productivity measurement,

traveller behaviour analysis, choice analysis, stated choice experiments, and institutional reform.



...for developing economies, an emphasis on the economic and other co-benefits of energy efficient transport policy can help leaders overcome the perceived trade-off between economic growth and adopting measures to cut emissions.

Introduction

The Asia Pacific Economic Cooperation

(APEC) Workshop on Policies that Promote

Energy Efficiency in Transport (WPPEET) –

held at the APEC Secretariat in Singapore on

24-25 March, 2009 – provided a lively forum

on a range of transport topics, including fuel

economy standards, operational efficiency

programmes, freight efficiency, mass transit,

reducing road congestion, and land use

and urban planning. While the workshop

focused on policies that could decrease the

energy intensity of the transport sector in

APEC economies, participants unanimously

recognised the importance of energy

efficiency and transportation within the larger

context of climate change and sustainable

economic development. Discussion also

focused on how to write transportation into

global climate policy.

Particularly for developing economies, an

emphasis on the economic and other co-

benefits of energy efficient transport policy

can help leaders overcome the perceived trade-

off between economic growth and adopting

measures to cut emissions. For instance,

reduced road congestion resulting from a

modal shift from private-motorised transport

to public transit – such as, a bus rapid transit

or subway system – significantly improves

road safety, local air pollution, and economic

productivity.

Recommendations for Improving Transportation Energy Efficiency in APEC Economies

Recommendations For Improving Transportation Energy Efficiency In APEC EconomiesLaura VAN WIE MCGRORY

AbstractThe March 2009 APEC Workshop on Policies that Promote Energy Efficiency in Transport (WPPEET) produced broad consensus that APEC economies should aim to increase transit-oriented development and integrated land-use planning, and minimise private motorised transport. The workshop recommendations for APEC economies included methods of overcoming institutional barriers and information gaps, as well as, the adoption of best practices to both improve the energy efficiency of vehicles and promote efficiency in the entire transport system. The workshop recommendations also suggested a stronger role for APEC in supporting needed research into key areas related to energy efficiency in transportation, and acting as a clearinghouse of information.


There was broad consensus among

WPPEET participants that transit-oriented

development, integrated land-use planning,

and minimised private motorised transport

should be among every economy’s primary

development goals.

The “Avo id -Sh i f t - Improve” framework

used by the Asian Development Bank provides

a succinct lens for evaluating transport policy:

Comprehensive transportation policy aims

simultaneously to avoid travel, encourage

a shift from motorised to non-motorised

and low-carbon transport, and improve the

efficiency of existing systems and vehicles.

The WPPEET participants recommended the

introduction of this framework into further

discussions of APEC activities related to

efficient transportation policy.

RecommendationsThe recommendations emerging from the

presentations and discussions at WPPEET fell

into three categories:

Recommendations for APEC Economies: Overcoming Barriers M a n y e c o n o m i e s f a c e c h a l l e n g e s

integrating transportation policies with

energy and planning p o l i c i e s . The

WPPEET experts suggested measures for

overcoming institutional barriers and the lack

of reliable and comprehensive information,

and for ensuring effective education of

policy-makers and the public.

Recommendations for Economies: Best Practices in Transport Policy The workshop recommendations also

included specific policies for APEC economies

to consider in addressing transportation

energy efficiency. The policies are divided

into strategies for improving the energy

efficiency of vehicles, and strategies for

promoting energy efficiency in the entire

transport system (Table1).

A Role for APEC APEC has an important role in supporting

needed research into key areas related to

energy efficiency in transportation, and

acting as a clearinghouse of information on

these issues. WPPEET workshop participants

specifically recommended two measures;

firstly, studies to improve and fill gaps in

information, and secondly, the creation of a

forum on energy-efficient transportation.


Table 1: Policies to encourage vehicle and transport system efficiency

Policies to Encourage Vehicle Efficiency Policies to Encourage TransportSystem Efficiency

• Increasing Fuel Economy of New Vehicles • Reducing Road Congestion

• Improving Operational Efficiency • Land Use and Urban Planning

• Energy Efficiency in Freight • Mass Transit


Recommendations for the APEC EconomiesIn addition to providing key information and

resources, APEC can also encourage its 21

member economies to consider certain policy

strategies and goals. Despite the great diversity

of economic and political climates of APEC

members, workshop participants identified a

number of common challenges that almost

every economy faces, such as, the lack of

reliable and comprehensive information, the

need for effective education of policymakers

and the public, and institutional barriers.

All levels of government, from municipal to

national, face challenges in the coordination

of transportation and energy policy. These

challenges are both horizontal (e.g., difficulty

in coordinating policy among agencies at

the same level) and vertical (difficulty in

coordinating policy among agencies at

different levels of government). To address

overlapping (and sometimes conflicting)

interests among different layers of government

and different agencies, as well as, jurisdictional

issues, po l i c ymake r s should consider

establishing cross-cutting task forces or

consolidating leadership in transportation

planning under one overarching agency .

Another significant challenge is educating the

public on the transportation options available

to them, the considerable benefits of a

comprehensive transportation policy, and the

urgent need for action to ensure a sustainable

future. In a difficult economic climate, an

effective education/outreach campaign

can help create the political will to make long-

term investments in sustainable transportation.

Public outreach also can help address cultural

preferences and promote positive attitudes

about using mass transit as an alternative

to personal motorised transport. Lastly,

ongoing education for policymakers on the

interrelated impacts and challenges of energy

and transportation, possible solutions, and

potential benefits will facilitate every stage of

this process.

A third challenge is the problem of collecting

reliable and consistent data and then

translating and communicating those data in

meaningful ways to the different government

agencies with a stake in a new, comprehensive

transportation and development strategy.

Below are some recommendations on how to

address these challenges.

Institutional RecommendationsAPEC economies should establish official

mechanisms of coordination among their

ministries of transportation, energy, and

environment. Often, the greatest barrier to

effective policy making on energy-efficient

transport is the lack of clear jurisdiction for a

given programme, or the lack of communication

among agencies regarding their needs and

goals and possibilities for finding synergies

among them.

APEC has an important role in supporting needed research into key areas related to energy efficiency in transportation, and acting as a clearinghouse of information on these issues.



Data Collection and Goal Formulation Recommendations APEC economies should prioritise the

collection and analysis of data relating to their

transportation energy consumption, to enable

the characterisation of their transportation

systems. This effort will benefit greatly from the

development and harmonisation of common

methodologies currently under development

by the Asian Development Bank and other

organisations.

Policy/Programme Recommendations for Improving Vehicle Efficiency

• Increasing Fuel Economy of New Vehicles

The key recommendations for increasing

new vehicle efficiency in all economies

centre around fuel economy standards.

Economies with fuel economy standards

already in place are recommended to

develop implementation and enforcement

plans to ensure the standards have the

desired maximum impact, and to consider

adopting more stringent standards – e.g.,

those advocated by the International

Energy Agency (IEA)’s 50 by 50 Global Fuel

Economy Initiative. Economies that do not

have fuel economy standards are urged to

develop and adopt them, and to prioritise

the harmonisation of new standards with

existing ones in the region or coordinate

with neighbouring economies to facilitate

manufacturers’ compliance with new

standards.

Other recommendat ions inc lude

internalising the external costs of

transportation energy consumption by

increasing fuel taxes and removing fuel

price stabilisation policies; investing in

research and development for new high-

efficiency vehicle technologies; providing

economic incentives (e.g., tax credits)

to promote market penetration of high-

efficiency vehicles; and complementing

policies with economic disincentives

for the use of inefficient vehicles, such

as, higher fuel taxes or excise taxes on

vehicle sales.

Often, the greatest barrier to

effective policy making on energy-

efficient transport is the lack of clear

jurisdiction for a given programme,

or the lack of communication among

agencies regarding their needs and

goals and possibilities for finding

synergies among them.

The key recommendations for

increasing new vehicle efficiency

in all economies centre around fuel

economy standards.

This initiative proposes making vehicles 50%

more efficient by 2050. Though aggressive,

GFEI maintains that this goal can be achieved

with existing technologies, and in the short

term will have a high impact on reducing fuel

consumption and carbon emissions.


The 50 by 50 Global Fuel Economy Initiative (GFEI)


Two-wheelers in Asia The predominance of two- and three-wheelers

is a growing phenomenon in Asian cities.

Transportation and planning policies should

find ways to consider their impacts and

• Improving Operational Efficiency

Several recommendations focus on

improving the operational efficiency of

all vehicles on the road. These include

implementing a vehicle lifetime or

scrappage policy–being mindful of

unintended impacts to the import/export

market for used vehicles and parts. A

dedicated study on the topic of the Import/

Export of Used Vehicles and Parts could

help inform on this issue. The workshop

experts also recommended that economies

that import and export vehicles coordinate

actions to develop and enforce standards

on imported used vehicles.

Other recommendations include adopting

fuel-quality standards; designing driver

education, training, and enforcement

programmes to improve driving behaviours

(which can raise a vehicle’s effective fuel

efficiency by as much as 35 percent);

implementing centralised inspection and

maintenance programmes; and supporting

the development of policies regulating two-

wheeler (Figure 2) operational efficiency,

particularly in Asian cities.

• Energy Efficiency in Freight

For the freight sector, the following three-

pronged approach is recommended for

improving the energy efficiency of freight

operations:

Figure 2: Two-wheelers in Asia

i) Improve the energy efficiency of freight

vehicles by providing incentives (e.g.,

rebates and tax credits for the purchase

of fue l -e ff i c i ent freight veh ic le s ,

or subsidies for their manufacture), and

investing in research and development for

more fuel-efficient freight vehicles.

ii) Improve freight logistics by providing

incentives for higher cargo volume per

trip, and for two-way shipping (i.e.,

ensuring that vehicles transport cargo

on return trips). Both incentives and

new infrastructure are also important for

encouraging switching from truck freight

to rail and ocean freight.

iii) Provide driver education and training,

e.g., by requiring freight drivers to attend

courses that teach them how to improve

accommodate these fleets as they continue

to grow. Chinese Taipei, for example, has

implemented a highly successful inspection and

maintenance programme for two-wheelers.



a vehicle’s operational efficiency through

such measures as reducing speeding,

minimising gear changing, and scheduling

regular inspections. As a complementary

measure, economies are urged to

implement programmes aimed at raising

the awareness of freight companies and

drivers about the link between fuel-efficient

driving practices and safe operations, as

well as, the fact that saving 10 percent on

fuel costs can increase a freight company’s

bottom line by 15-35 percent.

Policies to Encourage Transport System Efficiency

• Reducing Road Congestion

To mitigate road congestion, the workshop

recommendations include implementing

demand-centric measures to reduce

congestion on existing roads, before

implementing supply-centric measures (e.g.,

building more roads), since experience has

shown that the addition of more roads does

not alleviate congestion. Another strategy

is to price parking in commercial business

districts at a rate that prevents congestion

due to “parking cruisers”. Studies have

shown that the ideal price for parking may

be one that ensures a 15 percent vacancy

rate at any given time, so that vehicles

looking for parking will not contribute to

congestion and emissions by circling city

blocks.

Congestion pricing systems can also be

extremely effective, particularly when

they are designed to maximise congestion

reduction rather than revenue generation.

Charging for congestion rather than, or

in addition to, car ownership enables

policy to shape marginal behaviour,

(iii) An annual vehicle capacity tax (based on

cargo capacity)

To incentivise fuel efficient freight vehicles,

Japan reduces the level of all three taxes for

fuel-efficient vehicles.

...economies are urged to implement

programmes aimed at raising the

awareness of freight companies and

drivers about the link between fuel-

efficient driving practices and safe

operations, as well as, the fact that

saving 10 percent on fuel costs can

increase a freight company’s bottom

line by 15-35 percent.

...Studies have shown that the

ideal price for parking may be one

that ensures a 15 percent vacancy

rate at any given time, so that

vehicles looking for parking will

not contribute to congestion and

emissions by circling city blocks.

Freight Tax Incentives in Japan In Japan, three types of taxes are imposed on

freight vehicles:

(i) A one-time vehicle acquisition tax

(ii) An annual vehicle tonnage tax (based on

weight)



so those who choose to own cars can

still make energy-efficient decisions.

Electronic congestion pricing systems

(Figure 3) can further promote energy

efficiency in transport by varying charges

according to vehicle fuel efficiency.

• Land Use and Urban Planning

Recommendations for improving land

use and urban planning include incentivising

mixed-use development – to ensure that

retail, commercial, and residential areas

are developed together (Figure 4) to reduce

the need for car trips. Economies should

adopt a long-term vision for land use that

integrates transportation goals, along with

medium-term plans to achieve the vision.

Other recommendations include investing

in infrastructure, such as, underpasses

Congestion Pricing in SingaporeSince 1975, Singapore has addressed the issue

of road congestion with a road pricing system,

which charges vehicles a fee to travel congested

roads during peak hours. The system, which

has been electronic since 1998, has increased

the speed at which traffic flows through the

central business district by 20 percent. Prices

are set with a goal of maintaining an optimal

speed range of 45 to 65 km/h for expressways

and 20 to 30 km/h for arterial roads.

Figure 3: Congestion Pricing in Singapore

Figure 4: Mixed-use development

• Mass Transit

One key workshop recommendation

for mass transit is to focus on improving

ridership on exist ing mass transit

s y s t e m s b e f o r e expanding these

systems or building new ones. Other

suggestions include funding repairs and

expansions of mass transit systems through

tax revenue on land whose value has

increased due to the development of the

systems; and reforming mass transit pricing

and covered walkways, that create a

safe and comfortable environment for

pedestrians (to provide an alternative to

driving), and connecting non-motorised

transport users to mass transit systems

so that pedestrians and bikers can access mass transit systems.



based on distance rather than multiple

trips to make it more convenient and less

expensive at modal interfaces.

When deciding which mass transit system

to build first, it is recommended that

economies consider time horizons for

system completion (since the culture of

personal vehicle ownership may become even

more entrenched during the time it takes

to complete a major system); integration

of commercial and residential development

around the system; and difficulties involved

in developing the route (e.g., can a new

right-of-way be built, or must it be carved

out of existing road space?).

In addition, the cost-per-unit-of-energy-

saved of a given system is a key factor. It

is important to consider what level of

investment is required to yield the resulting

energy savings, because there may be other

transportation programs or policies that can

reduce energy consumption at a lower cost.

This calculation must take into account

several factors, including:

i) The energy consumption of a given system;

ii) The energy consumption displaced by that

system, which will be determined largely by

ridership levels (a system with low ridership

may actually consume more energy than it

displaces);

iii) The cost of building the system; and

iv) The lifetime of the system. Systems that

require a good deal of infrastructure are

more expensive initially, but the system may

last much longer, reducing the cost of the

system over time.

...it is recommended that economies

consider time horizons for system

completion (since the culture of

personal vehicle ownership may

become even more entrenched during

the time it takes to complete a major

system)...

Urban Planning in Shanghai, People’s Republic of China

Shanghai has made efforts to control the

rate of growth in private vehicle ownership

through a multi-modal system of urban

development. The city has built mass transit

systems (Figure a), such as, light rail and bus

lines to minimise the rate of growth in personal

vehicle ownership. In addition, it has provided

bike lanes and pedestrian walkways to enable

commuters to connect to the mass transit

system. Unlike Chinese cities with similar rates

of population growth, Shanghai has stabilised

the growth rate of private vehicle ownership

Figure a: Maglev in Shanghai



A Role for APECWithin the institutional framework of APEC,

there exist many opportunities for promoting

energy efficiency in transportation, both

through projects and through the coordination

of working groups and other bodies that

advise the Ministers and Leaders of the APEC

economies. APEC can play a unique role in

improving information on current practices

and policies in the region. The results of

APEC studies and other information-sharing

strategies can be used to enhance other global

initiatives focusing on transportation in the

context of the sector’s impacts on energy use,

economic development, health, and climate.

Potential ProjectsAPEC could undertake the following events

and analyses, the results of which would be

made available to the member economies for

use in the development of transportation plans

and policies.

• Workshops on Transportation Energy

Efficiency Improvement Potential, with a

focus on potential energy savings from

various policy options and the pace at

which overall energy efficiency in transport

could improve over time.

• Detailed Study of Bus Rapid Transit and its

potential benefits in terms of reduced oil

The results of APEC studies and other

information-sharing strategies can

be used to enhance other global

initiatives focusing on transportation

in the context of the sector’s

impacts on energy use, economic

development, health, and climate.

imports, greenhouse emissions, and road

congestion.

• Detailed Analysis of Transit-Oriented

Development to assess the most effective

means to reduce automobile traffic

through strategies that stress the clustering

of commercial and residential buildings

around urban transit routes.

• Detailed Analysis of Intermodal Freight to

examine the energy savings, greenhouse

gas reductions, and transport system

benefits of shifting freight from energy-

intensive modes (such as trucking) to

energy-conserving modes (such as ships,

barges, and rail).

• Detailed Study of Import/Export of Used

Vehicles and Vehicle Parts to characterise

the import/export market of used vehicles

and vehicle parts in APEC economies and

provide recommendations on retirement/

scrapping, recycling of vehicle parts, and

geographical and topical opportunities for

saving energy through addressing import/

export issues.

• Case Studies and Success Stories from the

APEC Economies to provide a clearinghouse

of information and support for the Asia-

Pacific economies.

• Development of Common Methodologies

and Metrics to provide consistent and

comparable metrics (e.g., energy intensity,

carbon emissions, and vehicle miles traveled)

to help policymakers make a strong business

case for sustainable transportation policies.

Coordination of APEC Working GroupsIntegrating the activities of APEC’s Energy



Laura Van Wie McGrory, Vice President of International Programs with

the Alliance to Save Energy, has managed the Alliance’s international

energy efficiency projects since 2008. Before joining the Alliance, she

worked with the Environmental Energy Technologies Division at Lawrence

Berkeley National Laboratory for nine years, managing the Washington

DC office of the Lab for the last two. Laura previously worked with the

Intergovernmental Panel on Climate Change, and was a consultant to the

US EPA’s Global Change Division, and the World Bank. She has a B.A. in

Geography and Environmental Studies from Dartmouth College, and a Master of International

Affairs from Columbia University’s School of International and Public Affairs.

Acknowledgement

This article is based on a recommendations report - “Improving Energy Efficiency in the Transportation Sector of APEC Economies” – prepared for APEC as a follow up to the APEC Workshop on Policies that Promote Energy Efficiency in Transport (WPPEET) In 2009. The original recommendations report was co-written by Diana Lin, Sally Larsen, and Laura Van Wie McGrory of the Alliance to Save Energy.

and Transportation Working Groups could

provide significant assistance in coordinating

the development of energy and transportation

policy in APEC economies. Effectively improving

the energy efficiency of transportation systems

requires close coordination by ministries

that in many cases have traditionally worked

separately. The energy challenges that the

APEC economies face cannot be addressed

without considering transportation policy,

and the transportation challenges cannot

be addressed without incorporating energy

issues. The establishment of an APEC forum

on energy efficient transportation that involves

and informs the APEC ministries of transport,

energy, and the environment could:

• Provide focus on the need to reduce the

energy intensity of, or the carbon emissions

from, the transport sectors of the APEC

economies; and

• Ensure that the results of transport-related

studies reach APEC ministers and encourage

them to use the results to strengthen the

business case for sustainable transport

policies.

Best Practices and Case Study ResourcesResources available to policymakers include:

i) “Avoid–Shift–Improve:

An Action Plan to Make Transport in

Developing Countries More Climate-

Friendly,” Asian Development Bank

ii) “50 by 50 Global Fuel Economy Initiative,”

International Energy Agency

iii) “Bellagio Memorandum on Motor Vehicle

Policy,” International Council on Clean

Transportation.

Effectively improving the energy

efficiency of transportation systems

requires close coordination by

ministries that in many cases have

traditionally worked separately.



emissions from transport. The potential for

savings is huge; fuel costs can be 60% of truck

operating costs in Asia, making it an even more

attractive area for cost reductions than in the

US, where driver wages are the largest cost

component.

Whether it is the introduction of cleaner

fuels, fuel economy standards, tax incentives

or investments in infrastructure to improve

transport, the freight sector is seldom given

attention and often ignored. People either

drive cars or ride the bus and so trucks are not

in the public eye. Within cities, trucks are often

allowed along specific corridors only at night,

as a way to reduce traffic congestion during

the day. Freight is clearly the “Cinderella” of

the transport sector.

The high percentage of empty hauls combined with systemic overloading of trucks is common and results in economic loss, higher fuel use and emissions, and safety issues.

Introduction

The efficient movement of goods and services

contributes significantly to the economic

growth of countries. As the Asian economy

continues to grow at a rapid pace, an increase

in freight activity is also expected. It is

estimated that by the year 2050, medium and

heavy freight trucks worldwide will consume

1,240 billion litres of fuel (gasoline equivalent),

138% more than 2000 levels. The global share

of trucks operating within Asian countries is

expected to increase from 19% in 2000 to

34% in 2050. In China, more than 24 billion

tonnes of freight were transported in 2010,

twice as much as in the United States, with an

annual growth rate of 14% in freight turnover.

The high percentage of empty hauls combined

with systemic overloading of trucks is common

and results in economic loss, higher fuel use and

emissions, and safety issues. Trucks are a main

cause of greenhouse gases and air pollutants.

For example, 4% of Chinese vehicles are trucks

but they are responsible for 57% of particulate

Achieving Green Freight in AsiaSophie PUNTE and Yan PENG

AbstractRoad freight is the ‘Cinderella’ of the transport sector because of policy, technological and financial barriers which result in intense fuel use and increased emissions. This paper describes how a small trucks pilot project in Guangzhou led to a larger freight project in Guangdong and paved the way for designing a national freight programme in China. These initiatives on greening the freight and logistics sector are expected to be replicated in other Asian countries with strong support from private sector, as it is in their interest that common policies and integrated programmes are established.

Achieving Green Freight in Asia


Barriers to a Sustainable Road Freight Sector

Some of the main challenges that Asian

countries must overcome to effectively

address sustainability issues of the freight and

logistics sector are policies and institutional

arrangements, characteristic of the freight

sector, technologies and financing mechanisms.

Policies that deal with the environmental

performance of trucks and the trucking

industry are often lacking or limited, and poorly

enforced. Freight is seldom included in the

design and planning of urban transport systems

and in policy development, resulting in ad hoc

measures to accommodate urban freight. The

wide range of government agencies with a

stake in freight also makes it difficult to assess

and formulate policies to develop the sector

more sustainably.

The trucking sector in China is highly

fragmented with almost 90% of trucks owned

by individual drivers and only 0.1% belongs

to companies with more than one hundred

trucks. This makes it difficult for government

agencies to reach them with information and

policies on, for example, new technologies.

Furthermore, the adoption of cleaner

technologies is vital for developing Asia as

many trucks are old and poorly maintained.

Driver training and technologies can render

significant fuel savings, which is important

in developing Asian countries where the fuel

costs are the largest component of a truck’s

operational costs. Widespread technology

adoption becomes challenging due to limited

availability, fragmented suppliers’ network,

and scarce case studies for Asia.

Financing green technologies is hampered

by high investment costs (despite potential

large savings and short payback periods), the

reluctance of banks and financiers to lend

money to trucks drivers and small companies,

and the lack of experience of ESCOs (energy

service companies) with trucking fleets.

Financiers often do not know how to appraise

financing of technologies for trucks and

policymakers have minimal experience in

applying economic instruments to the trucking

sector.

Local, national and regional initiatives are

needed to green freight and logistics in Asia.

Piloting Green Trucks and Freight Logistics in China

It all started with a truck pilot project in

Guangzhou, a key transportation hub and

capital of Guangdong Province, China (CAI-

Asia and World Bank 2010). The pilot project

started in 2009 and analysed the truck sector

through research and a survey, developed

Freight is seldom included in the design and planning of urban transport systems and in policy development, resulting in ad hoc measures to accommodate urban freight.

Financiers often do not know how to appraise financing of technologies for trucks and policymakers have minimal experience in applying economic instruments to the trucking sector.



and tested training materials for truck fuel

efficiency and carried out a technology

pilot. It was a collaborative effort between

the Guangzhou transport and environment

agencies, three trucking companies, Clean

Air Initiative for Asian Cities (CAI-Asia), U.S.

Environment Protection Agency (US EPA), U.S.-

based Cascade Sierra Solutions (CSS) and the

World Bank.

CAI-Asia tested tyre and aerodynamics

technologies on ten long-haul and short-haul

trucks of private companies, and garbage trucks

(CAI-Asia and World Bank 2010). Technologies

were selected based on successes achieved in

the United States under the US EPA SmartWay

programme. Fuel and emissions savings for

garbage trucks equipped with low rolling

resistance tyres and a tyre pressure monitoring

system (Figure 1) were about 18%. This figure

is much higher than the savings seen in the

United States, most likely because aside from

reducing friction with the road, the new tyres

also made the truck more stable, thus reducing

fuel use.

Fuel savings of long distance trucks was about

6.6%. This was less than expected because

the trucks in the pilot travelled at lower speeds

than the 75 km/hour needed for aerodynamics

technologies to significantly reduce drag and

fuel use. Still, the savings are high enough

for companies to be interested in these

technologies.

To complement the technology pilot, truck

drivers and truck fleet managers from the pilot

companies participated in a training course

on how to reduce truck fuel use. The course

covered truck specifications, technologies,

route planning, maintenance and inspection,

and driving behaviour. The importance of driver

training was highlighted as the difference in

fuel efficiency between the best and worst

Figure 1: Low rolling resistance tyres and pressure monitoring systems

Single-wide tyres or Dual low rolling resistance tyres reduce rolling resistance

Gap fairing reduces the tractor-trailer gap

Aluminium wheels reduce weight

Skirts reduce wind underneath the trailer

Automatic tyre pressure monitoring systems keep tyre pressure more constant

Nosecones reduce turbulence



driver in the US can be as high as 35%. A

10-minute video of the technology pilot

(CAI-Asia and World Bank 2010) and driver’s

training materials are available in both English

and Chinese.

The survey involving 1,040 truck drivers and

43 companies revealed that maintenance

practices are poor as most drivers only use a

hammer to check tyre pressure and 14% check

pressure less than once per week (CAI-Asia and

World Bank 2010).

The pilot showed that Guangdong’s 825,000

heavy duty trucks have the potential to reduce

diesel use by 3.8 million hectolitre, CO2

emissions by 8 million tonnes and particulate

matter (including black carbon) by 1.2 million

tonnes each year through proper management

and technologies. This helped convince

Guangdong authorities to start a three-year

USD $14 million Green Trucks Demonstration

Project (CAI-Asia and World Bank 2010) co-

financed by GEF and covering the whole

Guangdong Province.

Launched at an International Green Freight

Fair in October 2011, this new project will

install new technology on Guangdong trucks

and explore technology financing options. The

project will also investigate ways to optimise

freight logistics and address fuel wastage from

the estimated 40% empty hauls of trucks.

To help design the project, CAI-Asia, US EPA

and CSS hosted 19 government officials from

Guangdong Province in June 2010 to visit

truck fleets, the California Air Resources Board

and several non-governmental organisations

in California and Washington State. A visit

to Europe in August 2011 gave insights into

innovative freight logistics practices in Finland,

Sweden and Switzerland (Figure 2).

Establishing a Green Freight China ProgramThe Guangzhou and Guangdong pilot became

a springboard to establishing a national green

freight programme. With Energy Foundation

support, CAI-Asia designed a Green Freight

China Program with five components: Clean

Technologies, Freight Logistics, Financing

Mechanisms, Knowledge & Capacity, and

Partnerships between government and the

private sector (CAI-Asia and World Bank

2010). Its design is based on the US SmartWay

Partnership programme, and comes at the

right time for China. “Energy efficiency is a

The importance of driver training was highlighted as the difference in fuel efficiency between the best and worst driver in the US can be as high as 35%.

The pilot showed that Guangdong’s 825,000 heavy duty trucks have the potential to reduce diesel use by 3.8 million hectolitre, CO2 emissions by 8 million tonnes.

Figure 2: A visit to Europe to benchmark freight logistics practices in Finland, Sweden and Switzerland



who can organise the labour capacity to

move freight in China will be the winners”

commented Schneider Logistics, pointing to

the highly-fragmented truck sector.

CAI-Asia will further develop the programme

design with stronger collaboration among

local, national and regional stakeholders from

the freight sector.

Expanding Efforts to AsiaGreen freight efforts in other Asian countries

are also gaining traction. This is a welcome

development, since tackling the barriers to a

sustainable road freight sector would certainly

require a common framework across Asia,

especially with the freight movement going

beyond international borders.

Improved freight transport efficiency is one

of the sustainable transport goals under the

...tackling the barriers to a sustainable road freight sector would certainly require a common framework across Asia, especially with the freight movement going beyond international borders.

key factor in making the freight sector in China

more competitive,” stated Mr. Xu Yahua,

Deputy Director-General, Road Transportation

Department, Ministry of Transport.

At the 1st Green Freight China Seminar last

May 2011 (Figure 3), over ninety Chinese

government officials, private sector and civil

society representatives discussed how to

advance green freight in China and several

organisations committed to collaborate on

policy research and pilot studies. The Seminar

was organised by CAI-Asia with support from

the Road Transportation Department of the

Ministry of Transport, the Vehicle Emission

Control Center of the Ministry of Environment

Protection, Energy Foundation, US EPA, World

Bank and CSS.

Companies such as C.H. Robinsons, Schneider

Logistics, Xin Bang Logistics and GITI Tires

shared their experiences in introducing clean

technologies and logistics solutions. “Those

The Guangzhou and Guangdong pilot became a springboard to establishing a national green freight programme.

Figure 3: Delegates at the 1st Green Freight China Seminar in May, 2011.



Bangkok 2020 Declaration signed by 15 Asian

countries in August 2010 during the Fifth

Environmentally Sustainable Transport Forum.

A report highlighting the strategies and best

practices for green freight in Asia will be

released as a briefing paper for policy makers

from transport and environment ministries

during the Sixth Environmentally Sustainable

Transport Forum to be held in Delhi, India in

December 2011.

Interest in pilots and programmes on freight and

logistics management has also sparked. The

Society of Indian Automobile Manufacturers

(SIAM), together with CAI-Asia, will hold a

Green Freight India Seminar in January 2012 to

engage truck manufacturers and government

officials on establishing a programme design

for improving fuel efficiency and reducing

emissions from freight. Likewise, low carbon

projects to reduce emissions from freight are

also being implemented along the economic

corridor of Thailand, Laos and Vietnam, also

known as the Greater Mekong Sub-region.

Private sector support is pivotal to make these

initiatives work. In the process of developing

the Green Freight China Program design, CAI-

Asia has brought together shippers, carriers

and logistic service providers operating in

China to discuss the role of the private sector

in emissions reductions from freight and

logistics. A follow-up meeting will be held

before end of 2011, supported by Logistics

Institute - Asia Pacific and the Deutsche Post

DHL. It will initiate the establishment of an

informal partnership of private sector and

other collaborating organisations to advance

green freight programmes in China and other

countries in Asia.

Improving freight logistics would involve

integration of truck companies, as well as,

logistics centres. To facilitate this, CAI-Asia

established a dedicated Green Freight website,

www.greenfreightandlogistics.org. The goal is

to improve access to information on policies

and programmes, technologies and logistics,

contacts and data relevant to the freight sector,

especially for developing countries.

Conclusion The China experience has shown that there

is an untapped opportunity to reduce fuel

use and emissions from the fuel-intensive

freight and logistics operations. As proven by

the green freight pilot project in Guangzhou,

truck performance can be improved through

technologies and drivers’ training to realise fuel

savings and emissions reduction.

City level and regional level projects for the

freight sector can be successful and sustained

if an integrated policy is in place nationally.

This programmatic approach will only work

if supported by stakeholders especially

carriers, shippers, logistics providers and the

government.

...low carbon projects to reduce emissions from freight are also being implemented along the economic corridor of Thailand, Laos and Vietnam, also known as the Greater Mekong Sub-region.



Notes

1. More information on the global share of trucks and their worldwide fuel consumption can be found in (WBCSD and IEA 2004).

2. The full copy of the technology pilot report can be found at http://cleanairinitiative.org/portal/GreenTrucksPilot

3. The viewing of the video may be accessed at http://cleanairinitiative.org/portal/knowledgebase/videos/GreenTrucksPilotProjectinGuangzhou%28video%29

4. More information on Guangdong GEF Green Freight Demonstration Project can be found at http://cleanairinitiative.org/portal/GuangdongGEF

5. More information on Development of Green Freight China Program can be found at http://cleanairinitiative.org/portal/projects/GreenFreightChinaProgram.

Acknowledgement

The authors want to thank Energy Foundation, World Bank, US EPA, Cascade Sierra Solutions, DHL, SSCCAP and Chinese government authorities for their support to advancing green freight in China and Asia. We would also like to acknowledge Bert Fabian, Sudhir Gota, Alvin Mejia, Su Song, Mingming Liu, and Parthaa Bosu from CAI-Asia for their role in green freight research and project implementation.

References

CAI-Asia and World Bank. 2010. Green Trucks Pilot Project in Guangzhou: Final Report . http://cleanairinitiative.org/portal/GreenTrucksPilot

6. In order to highlight the issue of freight to senior decision makers in Asia, CAI-Asia prepared a background paper on the “Challenges and Opportunities for an Environmentally Sustainable Road Freight Sector in Asia” for the United Nations Centre for Regional Development’s Fifth Environmentally Sustainable Transport Forum held in Bangkok, Thailand on 23-25 Aug 2010 (see http://cleanairinitiative.org/portal/node/6340).

7. Challenges and Opportunities for an Environmentally

Sustainable Road Freight Sector in Asia. 2010. Background paper prepared by Sophie Punte, Bert Fabian, Sudhir Gota and Alvin Mejia for the 5th Regional Environmentally Sustainable Transport Forum in Asia.

World Business Council on Sustainable Development (WBCSD) and the International Energy Agency (IEA). 2004. Sustainable Mobility Project. http://www.wbcsd.org/includes/getTarget.asp?type=p&id=MTQ0



Sophie Punte is Executive Director with the Clean Air Initiative Asia

(CAI-Asia) in Manila, which promotes reductions in air pollution and

greenhouse gas emissions in all sectors, including trucks and freight.

She leads the work on green freight in China together with the CAI-

Asia China office. For four years she worked at the United Nations in

Bangkok to lead a UNEP energy efficiency and climate change project

for Asian industry in nine countries. Prior to joining the UN, Sophie was

senior manager with audit and advisory firm KPMG in Australia and

The Netherlands, a policy analyst with the New Zealand Environment

Ministry and an environmental scientist with an engineering firm. She holds a Master of Science

(Biology) and a Master of Environmental Management from the Netherlands.

Yan Peng has been the China Representative of Clean Air Initiative Asia

(CAI-Asia) in China since 2005. Prior to joining CAI-Asia she worked

with the UK Department for International Development (DFID) and

consulting firm ERM in China. She has a Master of Law degree from

Peking University and studied at the Johns Hopkins University-Nanjing

University Center for Chinese and American Studies, and the University

of Toronto, Canada. Her areas of specialty are environment public policy,

social impact assessments. Yan leads CAI-Asia’s China Network of 13

cities and the annual Air Quality Management city workshop held together with the Ministry of

Environmental Protection. She also leads CAI-Asia’s work in China to improve energy efficiency

and reduce greenhouse gas and air pollutant emissions from freight and logistics.



References

Passenger Transport Mode Shares in World Cities

Passenger transport mode share refers to the

percentage of passenger journeys or trips by

the main mode of transport and is typically

reported through travel surveys. Comparing

passenger transport mode share across

different cities is a challenging task. As travel

surveys are typically conducted for long-term

strategic planning purpose, such surveys are

not conducted frequently and detailed reports

are not always published. The situation is

further complicated as the surveys are often

commissioned by local governments. The

geographical areas covered, sampling and

interviewing techniques, questionnaire and

stratification methods deployed by travel

surveys vary greatly in different countries.

For example, the definition for a pedestrian

trip or a public transport trip may be different

in different countries. In cities like Hong

Kong, mode share is based on the number of

boardings by mode of transport (or journey-

stages). In most cities, however, mode share

is reported on the basis of the number of

journeys, which may consist of a series of

boardings on different modes of transport and

the main mode is reported as the transport

mode.

Mode share is affected by household incomes,

land use patterns, and many other economic

and social factors. Therefore, the figures may

not be directly comparable. They should be

analysed together with the historical, social

and economic situation of the city.

The mode share information of some major

metropolitan cities in the world is presented.

They include the traditionally advanced

cities (e.g. London, Paris, New York and

Tokyo), newly developed cities (e.g. Hong

Kong, Seoul), cities often cited in transport

innovations or sustainable transport surveys

(e.g. Bogota, Osaka), and emerging mega-

cities (e.g. Shanghai, Bangalore) (Table 1).

For cities where mode share information of

different geographical coverage is available,

the geographical area that is approximately in

a similar pattern to Singapore is used (e.g. land

area, population density).

Table 1: List of Selected Cities

Asia

Ahmedabad, Bangalore, Beijing, Delhi,

Guangzhou, Hong Kong, Mumbai, Osaka,

Seoul, Shanghai, Singapore, Taipei, Tokyo

Australia

Melbourne, Sydney

Europe

Barcelona, Berlin, London, Madrid, Paris,

Prague, Rome, Vienna

North America

Chicago, New York City, Toronto

South America

Bogota, Curitiba


References

AHMEDABAD

Population: 5.6 million

Land area: 281 km2

Mode shareBased on the number of journeys by main mode of transport. It includes all modes for all purposes. Mass transit constitutes 16% of all

journeys.

Data Sources:Census of India 2011Ministry of Urban Development, 2008. Study on Traffic and Transportation Policies and Strategies in Urban Areas in India

Figure 1: Mode Share in Ahmedabad

BANGALORE


Land area: 226 km2

Mode shareBased on the number of journeys by main mode of transport. It includes all modes for all purposes. Mass transit constitutes 35% of all journeys.


BARCELONA


Land area: 98 km2


journeys.

Data Sources:Urban Transport Benchmarking Initiative Year Three, Annex A1. Common Indicator Report 2006

Figure 2: Mode Share in Bangalore

Figure 3: Mode Share in Barcelona

Privatetransport25%

Publictransport35%

Walk26%

Para-transit7%

Cycle7%

Privatetransport42%Public

transport16%

Walk22%

Para-transit6%

Cycle14%

Privatetransport35%

Walk38%

Publictransport26%

Taxi1%


BEIJING1


Land area: 1,368 km2


journeys.

Data Sources:Beijing Yearbook 2011Beijing Transport Report 2005 (in Chinese only, 2005 北京市交通发展年度报告)

Figure 4: Mode Share in Beijing

BERLIN


Land area: 892 km2


Data Sources:Berlin Traffic in Figures 2010

BOGOTA




journeys.

Data Sources:Travel survey of Bogota and the Region 2008 (in Spanish only, Observatorio de Movilidad de Bogotá y la Región, Camara de Comercio de Bogotá), Colombia

Figure 5: Mode Share in Berlin

Figure 6: Mode Share in Bogota

References

Privatetransport32%

Publictransport26%

Walk29%

Cycle13%

Other2%

Walk15%

Cycle2%

Privatetransport

15%

Taxi4%

Bus & BRT62%

Privatetransport20%

Taxi1%

Rail2%

Bus21%

Others3%

Walk21%

Cycle32%


CHICAGO


Land area: 589 km2


Data Sources:Chicago Regional Household Travel Inventory: Mode Choice and Trip Purpose for the 2008 and 1990 Surveys, Chicago Metropolitan Agency for Planning

Figure 7: Mode Share in Chicago

CURITIBA


Land area: 430 km2


Data Sources:ICLEI EcoMobility Case “Curitiba, Brazil - A model of transit oriented planning”

DELHI


Land area: 431 km2



Figure 8: Mode Share in Curitiba

Figure 9: Mode Share in Delhi

References

Walk19%

Cycle1%

Taxi1%

Privatetransport63%

Rail5%

Bus11%

Others1%

Walk21%

Privatetransport

28%

Bus & BRT45%

Cycle5%

Walk21%

Cycle12%

Privatetransport19%

Para-transit6%

Publictransport42%


GUANGZHOU2



Mode shareBased on the number of journeys by main mode of transport. It includes onlymotorisedmodes for all purposes. Mass transit constitutes 49% of motorised journeys.

Data Sources:Guangzhou Yearbook 2010Guangzhou Urban Transport Report 2010 (in Chinese only. 2010 年广州市城市交通运行报告)

Figure 10: Mode Share in Guangzhou

HONG KONG



Mode shareBased on the number of boardings by mode of transport. It includes onlymotorisedmodes for all purposes. Mass transit constitutes 80% of all boardings.

Data Sources:Hong Kong in Figures 2011Travel Characteristics Survey 2002, Transport Department, Hong Kong

LONDON




Data Sources:GLA Intelligence Update 11-2011, Greater London Authority, U.K.Travel in London, Supplementary Report: London Travel Demand Survey (LTDS) 2011, Transport for London, U.K.

Figure 11: Mode share in Hong Kong

Figure 12: Mode Share in London

References

Taxi11%

Privatetransport40%

Rail14%

Bus35%

Others1%

Privatetransport

11%

Taxi8%

Rail25%

Bus / Tram55%

Walk30%

Cycle2%

Privatetransport

40%Taxi1%

Rail12%

Bus / Tram15%


MADRID


Land area: 606 km2



Figure 13: Mode Share in Madrid

MELBOURNE




Data Sources:Victorian Integrated Survey of Travel and Activity 2007

MUMBAI


Land area: 603 km2



Figure 14: Mode Share in Melbourne

Figure 15: Mode Share in Mumbai

References

Walk36%

Taxi1%

Privatetransport

29%

Publictransport

34%

Others1%

Walk13%

Cycle2%

Privatetransport77%

Rail4%

Bus3%

Walk27%

Cycle6%

Privatetransport15%

Para-transit7%

Publictransport45%


NEW YORK


Land area: 790 km2


Data Sources:Census 2010, U.S. Census BureauNational Household Travel Survey 2009, New York City

Figure 16: Mode Share in New York

OSAKA


Land area: 222 km2


Data Sources:Osaka Prefecture Travel Report 2000 (in Japanese only, 大阪府全体の人の動き第4回パーソントリップ調査から, Japan)

PARIS (Paris et Petite Couronne)3


Land area: 762 km2


Data Sources:National Transport Survey 2008 (in French only, Enquête Nationale Transports et Déplacements)

Figure 17: Mode Share in Osaka

Figure 18: Mode Share in Paris et Petite Couronne

References

Others6%

Walk39%

Privatetransport33%

Rail12%

Bus10%

Walk27%

Privatetransport39%

Rail32%

Bus2%

Walk4%

Cycle1%

Privatetransport32%

Taxi1%

Publictransport62%


PRAGUE


Land area: 496 km2


Data Sources:The Yearbook of Transportation 2009, Prague

Figure 19: Mode Share in Prague

ROME





SEOUL


Land area: 605 km2

Mode shareBased on the number of journeys by main mode of transport. It includes onlymotorisedmodes for all purposes. Mass transit constitutes 63% of motorised journeys.

Data Sources:Seoul Statistics – Population Trend in 2010Seoul Statistics – Composition of Daily Passenger Transportation in 2009

Figure 20: Mode Share in Rome

Figure 21: Mode Share in Seoul

References

Walk23%

Cycle1%

Privatetransport33%Public

transport43%

Walk21%

Privatetransport59%

Publictransport20%

Others5%

Privatetransport26%

Taxi6%

Rail35%

Bus28%


SHANGHAI4




Data Sources:Shanghai Yearbook 2011Shanghai Construction and Transport Commission 2009 (data provided directly)

Figure 22: Mode Share in Shanghai

SINGAPORE


Land area: 712 km2


Data Sources:Singapore in Figures 2011Travel Survey 2011, Land Transport Authority, Singapore

SYDNEY




Data Sources:2009/10 Household Travel Survey-Key Indicators for Sydney

Figure 23: Mode share in Singapore

Figure 24: Mode Share in Sydney

References

Walk22%

Cycle1%

Privatetransport29%

Taxi4%

Rail19%

Bus25%

Others2%

Walk18%

Privatetransport69%

Rail5%Bus

6%

Privatetransport20%

Walk27%

Cycle10%

E-bike10%

Publictransport33%


TAIPEI


Land area: 272 km2


Data Sources:Taipei Yearbook 2010, Taipei City Government, TaiwanAnalysis of Taiwan Transport Modes (in Chinese only, 臺灣地區相關運具使用率指標簡析及探討) 2009. MOTC , Taiwan

Figure 25: Mode Share in Taipei

TOKYO (23-Ward)5


Land area: 622 km2


Data Sources:Tokyo Statistical Yearbook 2009, JapanTokyo Metropolitan Area Travel Survey 2008 (in Japanese only, 東京都市圏パーソントリップ調査（交通実態調査）平成20年, Japan)

TORONTO


Land area: 630 km2


Data Sources:2006 Transportation Tomorrow Survey

Figure 26: Mode share in Tokyo 23-Ward

Figure 27: Mode Share in Toronto

References

Others1%

Walk15%

Cycle4%

Privatetransport46%

Taxi2%

Rail14%

Bus18%

Walk23%

Cycle14%

Privatetransport12%

Rail48%

Bus3%

Others1%

Cycle &Walk8%

Privatetransport

67%

GOTrain2%

LocalTransit22%


VIENNA


Land area: 415 km2


Data Sources:Vienna Modal Split 2010 (in German only, APA-Grafik Modal Split, Wiener)

Figure 28: Mode Share in Vienna

Notes

1. For Beijing, this includes the traditional urban area, which is only part of the area administered by the Beijing Municipality.

2. For Guangzhou, this includes the central districts (i.e. Liwan, Yuexiu, Haizhu, Tianhe, Baiyun, Huangpu) only, which is only part of the area administered by the Guangzhou Municipality.

3. For Paris, this includes the city of Paris and the surrounding districts collectively called “Petite Couronne” (Little Crown, or Inner Ring): Hauts-de-Seine, Seine-Saint-Denis and Val-de-Marne.

4. For Shanghai, this includes the traditional urban area and the Pudong New District, which is only part of the area administered by the Shanghai Municipality.

5. For Tokyo, this includes the traditional urban area collectively called “23-Ward”, which is only part of the area administered by the Tokyo Metropolitan Government (TMG).

References

Walk28%

Cycle5%

Privatetransport31%

Publictransport36%


Comparison of Public Transport Operations

Comparing the performances of public

transport operators helps surface some

understanding of the best practices employed in

the industry. Here, key performance indicators

have been identified for three functional areas,

namely: system utilisation, fare level, and

operational efficiency.

We recognise that these indicators do not

represent the complete picture of the company’s

performances, and some of them may not be

directly comparable because of the differences

in operational scales, organisational structure

and accounting practices. These indicators

should be interpreted together with other

performances such as service quality, safety

and security, employee and public relations, as

well as the planning, design, development and

regulatory regime within which they operate.

Key Indicators in Comparison

A list of performance indicators of selected

public transport operators are compiled in

terms of system utilisation, affordability, and

operational efficiency for reference (Table 1).

System utilisation measures the level of

assets being utilised - adequate utilisation

is essential to generate revenue to fund

operations. However, excessive utilisation may

imply crowding (an aspect of service quality)

during peak periods if the demand is not well

distributed.

The purpose of public transport is to provide

basic amenity and mobility to the society; thus

it is critical that the fare level is affordable to the

general public. As an indicator of affordability,

the fare is normalised using PPP conversion

Table 1: Key Performance Indicators (KPIs)

Functional Area

Indicators Description/Remark

System Utilisation

Average passenger-kmper vehicle-km

This indicator measures the average system loading, in other words, how well the operating capacity has been utilised. A higher value suggests better utilisation.

This indicator can be used to measure the performance of both bus and rail systems. However, as the information of passenger-distance travelled is not always available in bus systems, this indicator is used in the comparison of rail systems only.

Annual ridership (million) per station

This indicator normalises the ridership by the number of stations in the rail system. A higher value suggests a better utilisation of the system infrastructure.

Annual ridership (million) per bus

This indicator normalises bus ridership by bus fleet size, and reflects the asset utilisation. A higher value means that on average, a bus carries more passengers and suggests better asset utilisation.

References


Functional Area


Affordability(Fare Level)

Average fare per passenger-km

This indicator measures how much a commuter pays for one kilometre he/she travels in the public transport system. As fare structures may be distance-based (e.g. Singapore and Hong Kong) or Zone-based (e.g. London), therefore, removing the effect of travelling distance provides a fair comparison among operators. A lower value means that commuters pay less for every kilometre travelled.

This indicator is used only in the comparison of rail systems due to a lack of information for bus systems.

Average fare per boarding

Average fare per boarding is computed using total fare revenue divided by total ridership. Different from the previous indicator, this indicator measures average fare per trip directly. The comparison of this indicator is still meaningful as commuters usually would not compute how long they have travelled; instead, they care more for how much they have been charged for a trip. This indicator applies to both bus and rail operator comparisons.

Subsides are excluded from fare revenue. In some cities, the government subsidises concession travel (e.g. the difference between normal fare and concession fare) and pays the difference to operators accordingly. Such subsides are excluded from fare revenue computations as they are paid by the government, instead of commuters.

Operation Efficiency

Operating costs per passenger-km

This indicator measures the cost required to deliver every kilometre a passenger travels. As operating cost is largely fixed (e.g. manpower cost, fuel cost) once the route and schedule are determined, a higher ridership and longer trip distance would lead to higher operational efficiency.

As different development stages and financial methods result in different depreciation of rail assets, the depreciation cost is removed from the operating cost for a fair comparison across rail operators.

Operating costs per boarding

This indicator measures the operating cost (excluding depreciation cost of rail assets) for every passenger trip. A higher value refers to higher efficiency.

Farebox ratio Farebox ratio is computed by total fare revenue over total operating cost. In rail comparison, depreciation cost is excluded from operating cost.

This indicator measures the financial viability of an operator without subsidy. A ratio above 1 suggests that the operator is able to recover its operating cost (excluding depreciation of rail assets) with fare revenue. If operators could not recover their operating cost from fare revenue, then government subsidy or other income is required to maintain the fare level and service quality.

factor, as it takes into account both cost of

living and exchange rates.

Operational efficiency is essential to keep the

fare affordable. A high operating efficiency

ensures that lower revenue is able to cover

operating cost. Subsidies may be required

by operators who are unable to recover their

operating cost from fares.

Public Transport Operators (PTOs) in Comparison

Public Transport Operators (PTOs) are selected

based on their performance, geographical

References


Functional Area


Affordability(Fare Level)

Average fare per passenger-km

This indicator measures how much a commuter pays for one kilometre he/she travels in the public transport system. As fare structures may be distance-based (e.g. Singapore and Hong Kong) or Zone-based (e.g. London), therefore, removing the effect of travelling distance provides a fair comparison among operators. A lower value means that commuters pay less for every kilometre travelled.

This indicator is used only in the comparison of rail systems due to a lack of information for bus systems.

Average fare per boarding

Average fare per boarding is computed using total fare revenue divided by total ridership. Different from the previous indicator, this indicator measures average fare per trip directly. The comparison of this indicator is still meaningful as commuters usually would not compute how long they have travelled; instead, they care more for how much they have been charged for a trip. This indicator applies to both bus and rail operator comparisons.

Subsides are excluded from fare revenue. In some cities, the government subsidises concession travel (e.g. the difference between normal fare and concession fare) and pays the difference to operators accordingly. Such subsides are excluded from fare revenue computations as they are paid by the government, instead of commuters.

Operation Efficiency

Operating costs per passenger-km

This indicator measures the cost required to deliver every kilometre a passenger travels. As operating cost is largely fixed (e.g. manpower cost, fuel cost) once the route and schedule are determined, a higher ridership and longer trip distance would lead to higher operational efficiency.

As different development stages and financial methods result in different depreciation of rail assets, the depreciation cost is removed from the operating cost for a fair comparison across rail operators.

Operating costs per boarding

This indicator measures the operating cost (excluding depreciation cost of rail assets) for every passenger trip. A higher value refers to higher efficiency.

Farebox ratio Farebox ratio is computed by total fare revenue over total operating cost. In rail comparison, depreciation cost is excluded from operating cost.

This indicator measures the financial viability of an operator without subsidy. A ratio above 1 suggests that the operator is able to recover its operating cost (excluding depreciation of rail assets) with fare revenue. If operators could not recover their operating cost from fare revenue, then government subsidy or other income is required to maintain the fare level and service quality.

Comparisons among Rail OperatorsThe rail operations in this comparison refer

to those of mass rapid transit systems (MRT,

metro, or subway, as it is called in some cities).

They do not include operations of inter-city

rail, commuter rail and light rail systems

because the operating cost, demand (volume

and distance) and fares of these systems are

generally different from that of the MRT system

coverage, and data availability (Table 2). Data

here is obtained mainly from annual reports

and financial statements published by the

operators.

Notes: [r] rail; [b] bus

Asia / Australia Europe North America

SMRT, Singapore[r] [b]

SBST, Singapore[b]

MTR Corporation, Hong Kong[r]

KMB, Hong Kong[b]

Shanghai Shentong Metro[r]

Taipei Metro[r]

Toei, Tokyo[r] [b]

Tokyo Metro[r]

Sydney Bus[b]

London Underground[r]

London Bus[b]

Nexus Tyne & Wear Metro[r]

Dublin Bus[b]

TMB Barcelona[r] [b]

SL Stockholm[b]

MTA New York[r] [b]

Chicago Transit Authority[r] [b]

MTA Washington[b]

Translink Vancouver[b]

Table 2: Key Performance Indicators (KPIs)

0 50 100 150 200 250 300 350 400 450

CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

Nexus Tyne & Wear

Shanghai Shentong

SMRT-Singapore

Taipei Metro

TMB-Barcelona

Tokyo Metro

Toei - Tokyo

km

Infrastructure - Rail Length

References

and therefore, not directly comparable.

The infrastructure (including length and

number of stations of the rail network) is

presented as supplementary information. It is

used to normalise some indicators, such as,

annual ridership, for a fair comparison. The

infrastructure here shows the status at the

point of comparison and it may not be the

latest figure. For example, the Circle Line Stage

4&5 in Singapore is not included in SMRT

(Singapore) rail length as its revenue operation

only started on 8 Oct 2011. For Shanghai

Shentong metro, only Line 1 was included as

the other lines were not accounted for under

Shanghai Shentong, the public-listed company.


0 2 4 6 8 10 12 14 16 18

CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

Nexus Tyne & Wear

Shanghai Shentong

SMRT-Singapore

Taipei Metro

TMB-Barcelona

Tokyo Metro

Toei - Tokyo

System Utilisation - Annual ridership (million) per station

CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

Nexus Tyne & Wear

Shanghai Shentong

SMRT-Singapore

Taipei Metro

TMB-Barcelona

Tokyo Metro

Toei - Tokyo

Infrastructure - Number of Stations

0 50 100 150 200 250 300 350 400 450 500

0

CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

SMRT-Singapore

Taipei Metro

Tokyo Metro

Toei - Tokyo

10 20 30 40 50 60 70 80

System Utilisation - Average passenger-km per vehicle-km

References


CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

SMRT-Singapore

Taipei Metro

Tokyo Metro

Toei - Tokyo

$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45

Fare Level - Average fare per passenger-km

S$, PPP

CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

Nexus Tyne & Wear

Shanghai Shentong

SMRT-Singapore

Taipei Metro

TMB-Barcelona

Tokyo Metro

Toei - Tokyo

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50

Fare Level - Average fare per boarding

S$, PPP

CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

Nexus Tyne & Wear

Shanghai Shentong

SMRT-Singapore

Taipei Metro

TMB-Barcelona

Tokyo Metro

Toei - Tokyo

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00*Operating cost excludes depreciation

Operation Efficiency - Operating cost per boarding*

S$, PPP

References


Comparison of Bus OperatorsThe bus operations in this comparison refer

to those of public buses in a city. They do not

include school bus, company bus, inter-city bus

and tourist bus, etc., because the operating

cost, demand and fares of these systems are

generally different from public buses and

therefore, not directly comparable.

The infrastructure (i.e., bus fleet of the

operators) is presented as supplementary

information. It has been used to normalise

annual ridership to compare system utilisation

as operators are running at different scales.

CTA-Chicago

London Underground

MTA-New York

MTR-Hong Kong

Nexus Tyne & Wear

Shanghai Shentong

SMRT-Singapore

Taipei Metro

TMB-Barcelona

Tokyo Metro

Toei - Tokyo

0.0 0.5 1.0 1.5 2.0 2.5*Operating cost excludes depreciation

Operation Efficiency - Farebox ratio*

Translink-Vancouver

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Toei - Tokyo

TMB-Barcelona

Sydney Bus

SMRT-Singapore

SL-Stockholm

SBST-Singapore

MTA-Washington

MTA-New York

London Bus

KMB-Hong Kong

Dublin

CTA-Chicago

Infrastructure - Fleet Size

References


Translink-Vancouver

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35

Toei - Tokyo

TMB-Barcelona

Sydney Bus

SMRT-Singapore

SL-Stockholm

SBST-Singapore

MTA-Washington

MTA-New York

London Bus

KMB-Hong Kong

Dublin

CTA-Chicago

System Utilisation - Annual ridership (million) per bus

Translink-Vancouver

0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0

S$, PPP

Toei - Tokyo

TMB-Barcelona

Sydney Bus

SMRT-Singapore

SL-Stockholm

SBST-Singapore

MTA-Washington

MTA-New York

London Bus

KMB-Hong Kong

Dublin

CTA-Chicago

Fare Level - Average fare per boarding

Translink-Vancouver

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5

S$, PPP

Toei - Tokyo

TMB-Barcelona

Sydney Bus

SMRT-Singapore

SL-Stockholm

SBST-Singapore

MTA-Washington

MTA-New York

London Bus

KMB-Hong Kong

Dublin

CTA-Chicago

Operation Efficiency - Operating cost per boarding

References


Conversion Factor : PPP Conversion Factor 2009 (World Bank); Exchange rate 2010 (Monetary Authority of Singapore) where PPP is not available.

CTA-Chicago : Public Transportation Fact Book 2010, American Public Transportation Association;Chicago Transit Authority Financial Statements and Supplementary Information 2010;Annual Ridership Report 2010.

Dublin Bus : Bus Atha Cliath Annual Report and Financial Statements 2010.

KMB-Hong Kong : Transport International Holdings Ltd Annual Report 2010.London Bus & London Underground

: Transport for London – Annual Report and Statements of Accounts 2010/11;Transport for London – Travel in London Report 1-3.Transport for London – Keyfacts (www.tfl.gov.uk)

MTA-New York : Public Transportation Fact Book 2010, American Public Transportation Association;Metropolitan Transportation Authority Annual Financial Report 2010.

MTA-Washington : Washington Metropolitan Area Transit Authority Financial Report 2009;Public Transportation Fact Book 2010, American Public Transportation Association.

MTR-Hong Kong : MTR Annual Report 2010.Nexus Tyne & Wear : Nexus Annual Report 2011.SBST-Singapore : SBS Transit Ltd Annual Report 2010.Shanghai Shentong : Shanghai Shentong Annual Report 2010 (in Chinese only, 上海申通地铁股份有限公司2010

年年度报告).SL-Stockholms : AB Storstockholms Lokaltrafik Annual Report 2010.SMRT-Singapore : SMRT Corporation Ltd Annual Report 2011.Sydney Bus : NSW State Transit Authority Annual Report 2008/2009;

State Transit Authority of New South Wales Auditor-General’s Report to Parliament 2010 (Vol 9).Taipei Metro : Taipei Metro Annual Report 2010.TMB-Barcelona : TMB Annual Report 2010.Toei-Tokyo : TOEI Annual Financial Statements 2009 (in Japanese only, 東京都交通局平成21年度決算);

Tokyo Statistical Yearbook 2010 – Transport and communication.Tokyo Metro : Tokyo Metro Financial Statements March 2011 (in Japanese only, 东京地下铁株式会社决算

情报平成23年3月期）;

Tokyo Metro Securities Report No. 7 (in Japanese only, 有价证券报告书第7期，东京地下铁株式会社）;Tokyo Statistical Yearbook 2010 – Transport and communication.

Translink-Vancouver : Translink Annual Report 2009.

References

Translink-Vancouver

0 0.2 0.4 0.6 0.8 1 1.2

Toei-Tokyo

TMB-Barcelona

Sydney Bus

SMRT-Singapore

SL-Stockholm

SBST-Singapore

MTA-Washington

MTA-New York

London Bus

KMB-Hong Kong

Dublin

CTA-Chicago

Operation Efficiency - Farebox ratio

References

The LTA Academy’s Advisory Board provides high-level advice on strategic directions and major initiatives for the Academy to establish itself as a leading land transport institution in the world. The Advisory Board comprises the following international ensemble of distinguished members:

Professor Cham Tao Soon (Chair)Chancellor and Chairman, SIM University, SingaporePresident Emeritus, Nanyang Technological University, Singapore

Professor Henry FanProfessor, School of Civil and Environmental Engineering, Nanyang Technological University, Singapore

Professor Fwa Tien FangDirector, Centre for Transportation Research, National University of Singapore, Singapore

Professor Phang Sock YongProfessor of Economics and Interim Dean, School of Economics, Singapore Management UniversitySingapore

O P AgarwalVice President, Institute of Urban Transport, India and Senior Transport Specialist, World Bank

Professor Lu Hua PuDirector, Institute of Transportation Engineering, Tsinghua University, China

Professor Anthony MayEmeritus Professor of Transport Engineering, University of Leeds, United Kingdom

Michael ReplogleGlobal Policy Director, President Emeritus and Founder, Institute for Transportation and Development Policy (ITDP), United States of America

The LTA Academy was launched in September 2006 by the Singapore Land Transport Authority. The Academy aims to be a global knowledge hub in urban transport. It serves as a one-stop focal point for government officials and professionals around the world to tap on Singapore’s knowhow and exchange international best practices in urban transport management and development.

JOURNEYS is a biannual publication of the Academy. It provides a platform for the Academy to showcase and share urban transport trends, policies, technologies and challenges in different cities. It is also one of the key resources to complement and enhance the learning experience of participants at the Academy’s programmes.

LTA Academy


1 Hampshire Road

Singapore 219428

www.LTAacademy.gov.sg

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