Financing Public Transport - The Example of Belgrade
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1 UITP International Seminar on the Renewal of Public Transport Bus Fleets Skopje September 2012 Financing Public Transport - The Example of Belgrade Doc. Dr Slaven M. TICA, T.E. Honorary Vice President of UITP Dr Slaven M. TICA, T.E. University of Belgrade - Faculty of Transport and Traffic Engineering, Vojvode Stepe Belgrade, SERBIA Phone: ; tice@eunet.rs slaven.tica@sf.bg.ac.rs
2 Vicious circle - More private cars - More congestion - Slower PT system - Lower PT quality - Less PT customers - Lower PT revenue - A higher level of subsidy - Urban sprawel - More people dependent on car use - More roads - Decrease in PT supply - Inner cities are less attractive - Transfer of activities to the outskirts Source: UITP and TICA S.
3 LetꞋs break out of the vicious circle - More private cars - More congestion - Slower PT system - Lower PT quality - Less PT customers - Lower PT revenue - A higher level of subsidy - Urban sprawel - More people dependent on car use - More roads HIGER QUALITY OF URBAN LIFE SUSTAINABLE PUBLIC TRANSPORT - Less car traffic - Less congestion - Creating a balanced urban transportation system - Possibly more funds for PT - Decrease in PT supply - Inner cities are less attractive - Transfer of activities to the outskirts - Urban sprawl under control - More attractive cities and city centres - Less subsidies needed - PT more market oriented - More PT independence - More efficient use of road infrastructure - Higher individual transport costs for car users Source: UITP and TICA S. - Commercial speed of PT system increases - More cost-efficient PT operation - Beter quality for passengers - More Customer Satisfaction Index - More PT customers - More PT revenue
4 Key Topics Vision, Mission and Goals of the PT System, Transport Market, Organization and Management, PT Revenue, Tariff System and Fare Collection System, Quality of Service, Efficiency and Effectiveness, etc
5 Operators and number of vehicles in Belgrade SUBURBAN RAIL BEOVOZ (PUBLIC COMPANY), 10 MINI BUS PRIVATE COMPANIES, 60 SUBURBAN BUS SP LASTA (PUBLIC COMPANY) 143 CITY BUS PRIVATE COMPANIES, 407 CITY BUS GSP BELGRADE (PUBLIC COMPANY)) 685 TROLLEYBUS GSP BELGRADE (PUBLIC COMPANY) 97 TRAMWAY GSP BELGRADE (PUBLIC COMPANY)
6 (milion) Number of transported passengers passenger / year Modal Split TRAMWAY 15 % TBUS 8 % BUS 77 % Source: Statistical Yearbook of Belgrade
7 Number of transported passengers passenger /day SUBURBAN BUS 8.23% MINIBUS 0.1% SUBURBAN RAIL 1.21% TRAMWAY 15.23% TROLLEY BUS 8.73% CITY BUS (PRIVATE OPERATORS) 20.42% CITY BUS (GSP BELGRADE ) 46.14%
8 (milion) Operation work vehicle km / year Modal Split TRAMWAY 8,8 % TBUS 4,4 % BUS 86,7 % Source: Statistical Yearbook of Belgrade
9 Operating speed km/h km/h km/h km/h km/h km/h 0 TROLLEYBUS TRAMWAY CITY BUS MINI BUS SUBURBAN BUS SUBURBAN RAIL
10 Vision Mision Goals Vision: Vision of the urban public transport of passengers should include strategic choices and values that define the view of the purpose and mode of existence of the system. Mission: The mission of the public urban passenger transport should define the reasons and purpose of the system. Mission statements should be current and future business and operations of the system. Goals: Maximum level of quality of produced transport services for a defined level of costs, with maximum efficiency and effectiveness of the system of minimum negative impact on the environment.
11 Transport Market
12 The Transport Market in Belgrade General information Welcome to the city of future of south Europe Coordinates: 44 O north latitude 20 O east longitude 116,75 m elevation Number of inhabitants: urban and suburban area urban area Area: ha Public transport service operates on continualy built area of 10 urban and 7 suburban municipalities in 52 urban units which cover area of ha.
13 Modal Split Bicycle 0,55% Motorcycle 0,10% Ostalo 0.53% On weekday about 1.6 million passengers are transported in PT Private car 21,55% Public transport 52.86% Walking 24,41%
14 Organizational Model CITY GOVERMENT (C G) DIRECTORATE FOR PUBLIC TRANSPORT (D P T) BUS TRANSPORT COMPANIES (B T C) COMPANIES USING THE ELECTRICAL NETWORK (C E N) FARE COLLECTION COMPANY (F C C) TYPE Political body Expert s body Public companies Private companies Public companies Private company RELATIONS Under democratic control THE SCOPE OF SERVICE All companies Urban and suburban area Urban and suburban area Urban and suburban area PUBLIC TRANSPORT SUBSYSTEMS BUS SUBSYSTEM BUS AND MINIBUS SUBSYSTEMS TROLLEYBUS SUBSYSTEM RAIL SUBSYSTEMS (TRAMWAY & SUBURBAN RAIL) BUS, TROLLEYBUS AND TRAMWAY SUBSYSTEM OPERATORS GSP BEOGRAD MORE PRIVATE COMPANY GSP BEOGRAD & BEOVOZ APEX SOLUTION TECHNOLOGY
15 Risks in contractual relations The risk of production of transport services Revenue risk Financial risk Planning risk Environmental risk THE CONTRACT BETWEEN THE CITY GOVERNMENT AND THE OPERATOR
16 Generate income in the Public Transport Revenue from the core business, Subsidy from the City budget, Credit arrangements with banks Other sources (parking fees at the cost of private vehicles, fees for the use of private cars in the City, etc...)
17 Billions RSD 20,00 Total Revenue in the PT 15,00 10,00 100,00% 5,00 0, Public Transport - The structure of total revenue TOTAL REVENUE PUBLIC OPERATORS PRIVATE OPERATORS 43,88% 40,82% 45,45% 51,41% 42,99% 46,21% 48,38% 50,00% 56,12% 59,18% 54,55% 48,59% 57,01% 53,79% 51,62% 0,00% Revenue from the core business Subsidy from the City budget
18 100,00% Public Operators - The structure of total revenue 44,29% 40,44% 43,94% 49,36% 40,52% 42,79% 45,64% The Structure of Total Revenue 50,00% 55,71% 59,56% 56,06% 50,64% 59,48% 57,21% 54,36% 0,00% 100,00% Revenue from the core business Subsidy from the City budget Private Operators - The structure of total revenue 42,54% 41,92% 49,39% 56,40% 49,17% 54,04% 54,71% 50,00% 57,46% 58,08% 50,61% 43,60% 50,83% 45,96% 45,29% 0,00% Revenue from the core business Subsidy from the City budget
19 New Fare Collection System
20 New Fare Collection System Effects of the introduction of a new fare collection system After the introduction of a new fare collection system (february - august 2012) + 11,15% Before the introduction of a new fare collection system (february - august 2011) 0,00 1,00 2,00 3,00 4,00 5,00 6,00 Billions RSD
21 Reconstruction of the bus fleet The government of Japan has donated 93 new buses in (75 articulated and 18 standard) Purchased about 600 new buses (60 % low-floor) in the period from 2004 to (10 buses powered by CNG) It is planned to buy about 400 new low-floor buses in the next four years (280 articulated and 120 standrad CNG buses).
22 Reconstruction of the trolleybus fleet Athens city (Greece) has donated 30 reconstructed trolleybuses in Purchased 105 new modern low-floor trolleybuses in the period from 2005 to 2010.
23 Reconstruction of the tram s fleet City of Basel (Switzerland) has donated 35 reconstructed trams and 35 tram trailers. Purchased 30 new modern low-floor trams in 2009.
24 Reconstruction of the tram s network Plan: The total reconstructed network length of tram lines (tracks, power network, electric power substation): 33.9 km Funding model: 50 % EIB (European Investment Bank) : 50% City budget
25 Reconstruction of the tram s network The value of completed and reconstructed tram network section is about 6,8 billion RSD (approximately 70 million EUR).
26 Quality of Service Customer Satisfaction Index How did passengers evaluate PT? Other 3,17 Student 3,28 Pupils 3,36 Unemployed 3,39 Employed 3,41 Users who occasionally work 3,46 Retired people 3, Source: Tica S. - Research quality parameters of transport services in public transportation in Belgrade, Belgrade 2010
27 Project for the first line of LRT system Estimated first LRT line investment is about 400 million EUR
28 Thank you for your attention!
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