Improving the Urban Public Transport in Developing Countries: The Design of a New Integrated System in Santiago de Chile Antonio Gschwender agschwen@yahoo.com Thredbo 9 5-9 September 2005 Lisbon, Portugal Santiago de Chile • Modal split (motorised trips) Year Public Transport (%) Car (%) Others (%) 1977 1991 2001 83.4 70.5 51.9 11.6 19.7 39.2 5.0 9.8 8.9 • Public transport in 2003 – Buses • • • • • 380 lines, average length 60km 8,000 buses 4,000 private “companies” No operational subsidy Bad service – Metro: good service (fast, reliable, clean) 2 Diagnosis of the Bus System • Negative aspects – On-the-street competition • High accident risk • Unpredictable waiting times – Lack of cleaning and preventive maintenance – Routes designed to compete with other bus lines and metro – Institutional design • Absence of Transport Authority: attributions divided into many public bodies • Almost no participation of the authority in the planning of the system 3 Diagnosis of the Bus System • Positive aspects – High frequencies • Low waiting times – High routes density • Low walking times – Low transfers • Due to overlapping of many long routes • ... and fare structure: ”pay each time you board” – Positive aspects should be maintained 4 Main Aspects of the Proposed New System • New routes structure – Three complementary networks • Metro • Main bus routes • Feeder and local bus routes 5 Main Aspects of the Proposed New System • New fare structure and ticketing system – Integrated fare • Bus and metro • Reduced (zero) transfer fare – Contactless smartcard • Only paying device • Already used in the metro (1,4 million in 2004) 6 Main Aspects of the Proposed New System • Transport authority externalises: – Operation of the buses – Finance administrator • sells tickets • administrates revenues • provides ticket-reading machines – Information manager • manages operational information • generates operational reports • users’ information 7 Main Aspects of the Proposed New System • New property structure for the bus industry: several big companies – Main routes • 5 tendering units • Some 500 buses each unit – Feeder and local routes • 10 local areas = 10 tendering units • Some 200 buses each unit – Maximum 4 concessions per operator 8 Main Aspects of the Proposed New System • Financial balance – No operational subsidy • And fares cannot rise – New costs • Ticketing system • Information manager • Infrastructure in transfer points – Reduction in bus operation costs • Better match between demand and capacity (coordination between routes) – Fares are a result of the tenders • 0.45 EUR estimated average adult fare 9 Additional Description of The Proposed New System • Buses – 18m articulated buses introduced – Fleet: 4,500 vehicles • (Metro network is doubled) • 1,600 new low floor/entrance – Euro III emission norm 10 Additional Description of The Proposed New System • Infrastructure plan: segregated busways (14km), transfer stations, etc. – Cost: 210 million EUR • 25% publicly financed; 75% private investment charged to users’ fares • Yearly cost of the system – 570 million EUR: fares revenue 32% metro 5.5% finance adm. and information manager 5.5% infrastructure 43% main bus routes 14% local and feeder buses 11 Final Comments • Current situation – Design of the plan began in 2001 – Bus operation tenders • Awarded in January 2005 • Between 2 and 8 offers per tender unit • Old and new (foreign and Chilean) operators – Finance administrator • Awarded in April 2005 – Information manager • Not awarded yet – Implementation • Begins in October 2005 • Finish by the end of 2006 12 Final Comments • Change in the whole bus system – Political dimension • Already tendered services (since 1991) • Very bad public opinion about current bus system • Successful experiences in other Latin-American cities (e.g. Bogotá) – Technical dimension • Data availability • Modelling capacity: Joint design of 160 lines in a 5.4 million inhabitants city – Design model – New bus routes: heuristics – New frequencies: min Cop+Cusers • Knowledge of the particular situation 13 Final Comments • No strong political figure promoting and defending the plan over all its steps – Together with unclear institutional design: problems • Competition existed in bus operation tenders – Financial risk of the bus operators was reduced by several mechanisms • Massive introduction of smartcard was attractive for banks • Transfers increased from 0.2 to 0.8 per trip 14 Final Comments • Some future challenges – – – – – Transport authority? Congestion-free infrastructure for the buses Extension of integrated fare to other modes Travelcards? Product differentiation? (price-quality) 15 END of the presentation 16 Improving the Urban Public Transport in Developing Countries: The Design of a New Integrated System in Santiago de Chile www.transantiago.cl Antonio Gschwender agschwen@yahoo.com Thredbo 9 5-9 September 2005 Lisbon, Portugal 18 Fare Structure 19 Additional Description of The Proposed New System • Financial risk of the bus operators – Reduced by: • Minimum income guaranteed: between 85 and 60% • Patronage semi-guaranteed: only 10% of the variation is transferred to operator • Concession period can be extended up to 24 months if income is low • Revenue adjustments in case of patronage changes due to commercial speed variations • Compensation fund: assures payment in first months and if drops in the demand occur • If fares reach an upper limit, measures to rationalise the use of car will be introduced 20 Additional Description of The Proposed New System • Infrastructure plan – – – – 14km of new segregated busways (11km already exist) 2 big interchange stations 35 smaller transfer stations Road surface and geometric improvements in 63km of main roads – 2 strategic road connections – Improvements of 5,000 busstops – Cost: 210 million EUR • 25% publicly financed • 75% private investment charged to the users’ fares 21 Additional Description of The Proposed New System • Awards and penalties scheme – Income generated by the penalties is returned to the operators (awards) • Operators’ payment adjustment – Mathematical formula (production factors), as before – Impacts users’ fare • Avoid need of legal changes • Avoid intensive requirements of new infrastructure 22 Santiago de Chile • Motorisation rate – 1977: 80 cars per 1,000 inhab – 2001: 148 cars per 1,000 inhab • 10.2 million daily motorised trips • Modal split 2001: – – – – – – 36% walking 26% bus 24% car 4% metro 4% taxi and shared-taxi 6% other modes • 1,600 million trips in public transport in a year (2003) – 290 yearly trips per inhabitant in PT 23 END 24