LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
The Italian intercity market model
Paolo Beria,
Raffaele Grimaldi,
Antonio Laurino
Dipartimento di Architettura e Pianificazione
Politecnico di Milano
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
Associazione Nazionale Autotrasporto Viaggiatori
1
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
CONTENTS
Long distance coach transport in Italy
Carachteristics of LD coach transport
Ideas for a future of the industry
Conclusions
2
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
An unknown sector
Long distance coach services are almost unknown in Italy, despite its
quantitative importance:
 users usually only know the line they use;
 non users often ignore the existence of a significant alternative network to rail
services ;
 public opinion ignores the sector;
 public policies tend to concentrate only on rail. No specific policies for coach.
The industry in Italy is already mature and developed, even if liberalisation is
expected to change and further develop it a lot.
This study, commissioned by ANAV and recently presented, tries
to shed a light on the sector
3
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
Regulation
Local public transport
(incl. 2-regions services)
Interregional services
(more than 2 regions)
Charter
services
“Interregional road services of State competence”
“Passenger services supplied by coaches on road, with undifferentiated supply,
operated continuously or periodically on paths linking more than two regions” D.Lgs. 285/2005
The sector was liberalised since 2007, moving from exclusive concessions to
non-exclusive authorisations. Up to 31 December 2013 firms can keep existing
concessions.
A monitoring activity is foreseen to control liberalisation effects and avoid possible
disruptive competition.
4
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
Integration or competition
Historical framework of long distance public transport in European countries.
Modal competition
Hierarchic / planned
Air
Bus and coaches
Air
Rail
Rail
Bus and coaches
Strong core rail network + feeding buses
Competition among modes allowed
(e.g.UK, Sweden, Italy future ...)
(e.g. France, Germany, Switzerland)
Bus and coaches
Competition, but with areas of
protection of rail
Air
Rail
(e.g. Italy past)
5
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
ANAV coach companies
Bus-km 2010
8.000.000
7.000.000
 Method:
2010 supply estimation: > 90 millions
bus×km/year
Reconstruction of all 2011 services from
timetables
Survey of 2010 data on supply (incopmplete)
6.000.000
More than
19 millions
bus-km
 Sample:
- ANAV companies which gave data for 2010;
5.000.000
- Only State competence services (no
services among two regions).
(estimated)
4.000.000
72,8 milions
bus-km
3.000.000
Dato 2010 fornito (42 aziende)
2.000.000
(sccounted)
Dato simulato da orario, linee stagionali escluse
1.000.000
0
* TRASPOL simulation on 2011 timetable
6
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
National services in Italy
Assuming an average load factor of 30 passengers per vehicle, we estimate about 3.000
millions passengers-km.
Passengers 2010
National coaches (own approximate estimate)
~ 3,000 mln. pax-km
Trenitalia medium-long distance:
(Balance Sheet 2010)
- Market services
- Subsidised “Universal Service”
- “Non subsidised/non market” services
11,476 mln. pax-km +2.9% since 2009
7,012 mln. pax-km -18.2% since 2009
2,149 mln. pax-km -10.3% since 2009
Total Trenitalia medium-long distance
20,637 mln. pax-km
-6.7% since 2009
Universal Service (Servizio Universale) is the name for subsidised long distance trains in
Italy (see later). Subsides are directly awarded to Trenitalia (no public tenderings).
“Non subsidised/non market” are services that Trenitalia claims to be operating without
subsides though loosing money. These have been kept (up to now) for political reasons.
7
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
National services in Italy
Graphical representation of
weekly services, per
region/geographical area.
1. Significant North-South
services
2. Maximum number of
services between Rome
and the South
3. Important internal
relations in the Centre
and in the South
4. Limited services in the
North.
(note: obviously, frequencies can’t
be summed up, because of
different paths)
8
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
National services in Italy
Graphical representation of
weekly services, per
region/geographical area.
1. Significant North-South
services
2. Maximum number of
services between Rome
and the South
3. Important internal
relations in the Centre
and in the South
4. Limited services in the
North.
(note: obviously, frequencies can’t
be summed up, because of
different paths)
9
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
National services in Italy
National coaches in Italy nowadays serve mainly:
1. Long distance services, in partial competition with rail and air transport
2. Medium distance services, where rail service is poor, uncomfortable (needs
interchange, etc.), too expensive (HSR) or not existing at all
3. Tourist services (usually seasonal)
10
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
The Italian intercity market model
IRU Bus and Coach Workshop
RESEARCH CENTER ON TRANSPORT POLICY
Long distance coach transport in Italy
I servizi nazionali
70
Roma - Siena
(Gruppo Baltour)
63
direction
per
Weekly
frequency,
direzione
settimanale per
Frequenza
56
Roma - Macerata
(Roma Marche Linee)
49
Line withcon
restrictions
(no in/out in some stops)
Autolinea
vincoli salita/discesa
Roma - Fermo
(Roma Marche Linee)
42
Autolinea
senza
vincoli salita/discesa
Line without
restrictions
Long distance coaches cover the whole
distance range (100 -1630 km)
35
28
21
14
Marsala - Siena - Milano
(Salemi)
7
0
0
200
400
600
800
1000
Line
lenght
11 linea
Lunghezza
[km]
1200
[km]
1400
1600
1800
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Long distance coach transport in Italy
International services
Frequenze settimanali per paese di
destinazione finale
ALTRI; 37
Repubblica
Ceca; 7
Francia; 39
Belgio; 7,5
Marocco; 9
Romania; 35
Spagna; 12
Svizzera; 12
Bulgaria; 14
Germania; 15
Polonia; 28
Frequenze settimanali per paese
attraversato
Francia
ALTRI; 74,5
Romania
Polonia
Bulgaria; 14
Germania
Belgio; 14,5
Bulgaria
Slovenia;
Svizzera
16
Spagna
Germania;
Marocco
26
Belgio
Repubblica Ceca Polonia; 28
ALTRI
Repubblica
Ceca; 28
Svizzera; 79,5
Francia; 67,5
Austria;
36
Romania; 36
Svizzera
Francia
Austria
Romania
Repubblica Ceca
Polonia
Germania
Slovenia
Belgio
Bulgaria
ALTRI
Stagionalità
10%
solo stagionale
annuale (con eventuali
rinforzi)
90%
12
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
CONTENTS
Long distance coach transport in Italy
Carachteristics of LD coach transport
Ideas for a future of the industry
Conclusions
13
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Characteristics of LD coach transport in Italy
Main characteristics and comparison with other modes
Strenghts
 Extensive geographical coverage, even in very low density and dispersed areas
 High flexibility and ability to fit changes in demand
 Low costs and, as a consequence, low fares, without any public subsidy: the industry
does not cost anything to the State
 Commercial viability for direct services where impossible for rail because of low density
of demand
 Higher perceived personal security for passengers, especially on night services
Weaknesses
 Poor visibility, still developing and fragmented marketing policies
 Low commercial speed, although good in terms of door-to-door for many relations. In
congested contexts possible uncertainties on travel times
 Difficulty of movement on board requires stops on longest trips (further reducing
commercial speed)
14
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Characteristics of LD coach transport in Italy
Main characteristics and comparison with other modes
Example of geographical
coverage in Puglia region
(southern Italy) of services
from northern Italy:
Marino network
(not the only coach company!)
vs.
Trenitalia network
15
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Characteristics of LD coach transport in Italy
Terminals
The attitude of local administrations towards terminals is differenciated in Italy:
hostility
integration
(terminals outside city centres,
claiming to reduce congestion)
(terminals as a part of multimodal
interchange stations)
expulsion
Marginality
Problems for remaining users
Progressive loss of users
coachway interchanges
Lower accessibilty and need for
effective linking infrastructures
Marginality and lower visibility
Higher commercial speeds
city terminals
Long diversion times
Higher visibility
Possibly difficult integration
with the city structure
Easier integration in the city
Good practices: Bologna, Roma Tiburtina TiBus (though claims for inadequate capacity),
Catania. Partially good: Milano (good design, but distant from city centre).
16
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
CONTENTS
Long distance coach transport in Italy
Carachteristics of LD coach transport
Ideas for a future of the industry
Conclusions
17
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
New markets or consolidation of existing industry?
Three perspectives for Italian market:
1. Consolidation of existing market, inside the
new liberalised context
 more efficiency
 quality
2. Market expansion towards new users (generated
or diverted from rail thanks to low fares)
 new (and new kind of) services
 marketing and communication
3. Integration/substitution of rail in the “universal service”
(subsidised long distance trains)
 political choice!
18
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
Trenitalia “rail universal service”
2011 National coaches
Just changed
& reduced…
(Dec 2011)
2011 Trenitalia “universal service”
Supply: 90 Mbus-km
Supply: 27 Mtrains-km
(further reduction in 2012)
Public subsides: 0 €
Public subsides: 250 M€/y
19
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
IIl servizi
servizionazionali
universale Trenitalia
70
63
Roma - Siena
(Gruppo Baltour)
Frequenza settimanale per direzione
56
Rail services (subsidised “universal service”)
are almost perfectly superposed to national
coaches: similar average frequencies, same
distance range!
Roma - Macerata
(Roma Marche Linee)
49
Autolinea con vincoli salita/discesa
Roma - Fermo
(Roma Marche Linee)
42
Autolinea senza vincoli salita/discesa
Treno
ES Roma - Reggio C.
(Trenitalia)
35
28
EXP Torino - Palermo
(Trenitalia)
21
14
Marsala - Siena - Milano
(Salemi)
7
0
0
200
400
600
800
1000
20 linea [km]
Lunghezza
1200
1400
1600
1800
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
Il servizio universale Trenitalia
70
63
56
Frequenza settimanale per direzione
Air transport
reference market:
long distances,
at least daily frequencies
LD rail transport
reference market:
<800km services,
high frequencies
49
Autolinea con vincoli salita/discesa
Autolinea senza vincoli salita/discesa
42
Treno
35
28
Market “in competition”
with rail “universal service”
21
14
7
Coaches “exclusive” market
0
0
200
400
600
800
1000
21 linea [km]
Lunghezza
1200
1400
1600
1800
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
Il servizio universale Trenitalia
70
63
56
Frequenza settimanale per direzione
Air transport
reference market:
long distances,
at least daily frequencies
LD rail transport
reference market:
<800km services,
high frequencies
49
Autolinea con vincoli salita/discesa
Autolinea senza vincoli salita/discesa
42
Treno
35
28
21
Field of potential (partial)
substitution with
rail “universal service”
14
7
0
0
200
400
600
800
1000
Lunghezza
22 linea [km]
1200
1400
1600
1800
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
Trenitalia “universal service” – costs estimate
U nit average cost
Coach company 1
Coach company 2
Coach company3
Coach company 4
Coach company5
Coach company 6
Coach company 7
Coach company 8
Coach company 9
Coach company 10
Coach company 11
Coach company 12
Trenitalia Eurostar
(servizio universale)
Trenitalia Conventional LD train
(servizio universale)
1.40
1.97
1.07
0.96
1.17
1.34
1.82
1.28
1.35
1.36
1.10
1.80
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
€/bus -km
Data
Data
Data
Data
Data
Data
Data
Data
Data
Data
Data
Data
25.00
€/train-km
Estimate
20.00
€/train-km
Estimate
LD coach: 2.7 €cent/seat-km (50 seats/coach)
LD train: 4 €cent/seat-km (500 seats/train)
23
Data received
from 12 firms
(27 million km)
suggest
average unit
costs of 1.34
€/bus-km
(min 0.96 max 1,97)
Most likely higher
than market service
costs because of
less economies of
density (scale?)
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
A new “universal service”
A typical night train of the “universal service” in Italy nowadays often serve both as:
- InterCity service on short/medium distance during the evening and the morning among
places internal to northern and southern Italy;
- long distance night service among northern and southern Italy.
In some cases, the reorganisation of existing services, separating functions, might allow
for significant cost savings and, in some cases, for a better service, using different transport
mode.
Although no disaggregated public data on patronage of those (subsidised) services are
available, possible multi-modal reorganisations with combined rail, air and coach transport
might require less subsides.
24
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
A new “universal service” - example
Present situation:
4 daily night trains from Torino,
Milano, Bolzano and Trieste 
to Foggia, Bari e Lecce
Nothing is known about demand
Estimated Trenitalia cost: approx
62 M€/year
25
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Ideas for the future of the industry
A new “universal service” - example
(one) Possible rationalisation:
 4 InterCity trains,
Torino + Bolzano + Trieste + Milano
 Rimini for commuters
 3 regional trains Foggia/Bari 
Lecce for commuters
 10 night bus lines to connect all
O/D with no more than 1
interchange
(example: Venezia - Padova - Terme Euganee Monselice - Rovigo - Ferrara - Ravenna - Rimini
(HUB) - Foggia - Barletta - Bari)
Note: bus lines on the
map are not
representative of the 10
simulated paths
More complex, but sufficient to serve all relations. Estimated cost: 35M€/year instead of
62M€/year with rail. Room for possible additional services during peak days (also with train)
26
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
CONTENTS
Long distance coach transport in Italy
Carachteristics of LD coach transport
Ideas for a future of the industry
Conclusions
27
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Conclusions
Inside the industry and towards the outside
Coach transport will face significant changes in regulation inside and
outside the industry. Starting from a deeper knowledge of itself,
significant opportunities for change will be at stake:
- Evolution inside the industry;
- Evolution towards other markets.
In order to do so, it needs to adopt adequate technological tools (e.g.
yield management) and learn from what happened in other industries,
especially air transport, and abroad.
28
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Conclusions
Inside coach transport…
Ideas:
1. Overcoming focus of firms over their historical catchment areas to better take
advantage of the liberalisation:
Many small markets  a unique (bigger) Italian market
2. As for operating costs: in this sector “medium-small is better”!
But for commercial aspects: useful to consolidate on bigger average
dimensions (difficult for very small firms to make advanced marketing). Better
using consortia, to avoid cost increase typical of bigger firms.
3. Unique internet website, where users can find the whole supply, to be
perceived as a unique network as for air transport (even without delegating the
commercial functions).
29
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Conclusions
… and towards the outside!
Opportunity for completely rethink the concept of “universal service” (also
because Italy needs to cut public expenses): ensure mobility all over the
country, but not necessairly by train!
Example (but other outcomes are possible):
 Subsidised trains (but even non subsidised!)  relations with high demand and
among major cities;
 Coaches  long relations with low demand, with polarised and dispersed
demand (e.g. north-south) and to improve geographical coverage;
 Busses  medium-short relations with low demand;
 Airplanes  social (subsidised) fares on some long relations.
30
Brussels , 29 February 2012
LABORATORIO DI POLITICA DEI TRASPORTI
TRASPOL
RESEARCH CENTER ON TRANSPORT POLICY
The Italian intercity market model
IRU Bus and Coach Workshop
Thank you for your attention!!!
paolo.beria@polimi.it
raffaele.grimaldi@polimi.it
31
Brussels , 29 February 2012