Fiji Bus Industry: improving through greening
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1 Fiji Bus Industry: improving through greening Paul Starkey and Dr Sion Haworth ADB Transport consultants
2 Presentation outline Bus industry in Fiji: a few highlights Context of COP 23 and Fiji Presidency Aim of current ADB-supported study Some preliminary findings Preliminary ideas on greening plan
3 LTA Bus Industry study
4 Greening the Fiji bus industry
5 Fiji has one of the best bus services in the world (but it needs improving)
6 A social good, providing daily access to most of the population Half a million passenger-trips/day
7 Regular and predictable, operating to timetables even at off peaks times and at weekends
8 Run by private sector Cheap for the Government with few subsidies
9 Comprehensive routes and services
10 Generally comfortable and affordable Very popular but taken for granted and criticised for imperfections
11 Well regulated Generally safe with passengers insured Generally profitable and affordable and complying with regulations
12 Bus industry is very popular, affordable and safe
13 But... old-fashioned image as fleet improving slowly but not yet green
14 Still poor roads Suva congestion Some problems Unfair competition Still issues of corruption and interference
15 E-ticketing Still high demand LED route identifiers Some positives Bus industry surviving modal competion issues Regulatory improvements
16 Fiji Government transport strategy Integrated transport system Safe Affordable Accessible to all Environmentally sustainable Regular and predictable Meets economic needs Provides social good access to health, education Economically sustainable Modal shift to bus use Green and healthy, low emissions, contributing to climate mitigation
17 COP23 gives a new window of opportunity Fiji s contributions to mitigating global warming Reduce the emissions of the bus industry with improved standards, regulation and practices Better for the climate, Better for fuel efficiency Better for the health of all
18 Context of current study Prior to Fiji taking presidency of COP23 Assess bus industry status (fleet, routes, operations) Assess ways of improving operational efficiencies Consider fleet renewal and scrappage options Develop fleet upgrade plan that can contribute to Fiji s COP23 National Determined Contribution (NDC)
19 Objective of study With bus industry stakeholders: Assess ways of improving operational efficiencies Within-industry issues and improvement priorities External issues and improvement priorities Provide the context for future discussions on lower emissions in coming years through: More efficient diesel engines Hybrid diesel/battery power Electric buses Prepare a bus replacement and scrapping programme that: Is compatible with Fiji s transport objectives; Delivers lower greenhouse gas emissions; and Can be included in Fiji s NDC for COP23
20 Potential for self-improvement in bus sector Fleet maintenance Driver quality (fuel efficiency, passenger relations, meeting traffic regulations etc) Computerised record keeping for financial and passenger planning Interior bus design GPS for operations and passenger information More fuel efficient vehicles Reducing CO2 and noxious emissions Others
21 Findings to Date Operators still highly concerned about illegal competition which is abstracting passengers and eroding revenues, not being properly enforced by LTA Operators still concerned about the half price concession for school students By and large, operators welcome QuaMS system which will improve maintenance regimes and reduce operating costs Meeting QuaMS requirements means operators have to invest in equipment and sometimes more land
22 Findings to Date Some operators in a fragile state, and we expect to see more consolidation in the industry Electronic ticketing with GPS will bring a range of benefits both to operators and passengers There will be initial problems with e-ticketing and government should remain committed to the principle and the kind of technology Fares are low in international comparison relative to ability to pay Route Licensing requirements are too prescriptive and tend to stifle innovation (and to some extent competition)
23 External improvements for buses Better bus stops (shelter, lights, bay size, information) Bus priority measures Enforcement against illegal operators Adjust school services (fares, compensation, timing) Better terminals (esp Suva bus station) Improved road conditions Emission testing (as indicator of low fuel efficiency) Imposition of more fuel-efficient vehicles Designation of low emission zones (urban areas) Others
24 Government Initiatives National Budget contains measures to assist bus operators. Reduction of import and excise duties on buses (16+ seats) for companies with an annual turnover of under $1.5 million (zero duty for new buses and 5 per cent excise duty on used buses). Recognition that Road Route Licences can be used as lending collateral Reserve Bank of Fiji s Import Substitution and Export Finance Facility of $100 million for mainstream banks to lend to small operators at no more than 5 per cent interest. Renewal of Road Route Licences to be for 15 years from 1 October 2017, instead of five to 10 years previously.
25 Findings to Date Some operators are prepared and are already renewing their fleets with: Better interior layouts (2x2) benches and wider aisles Air conditioning Free WiFi Lower emission engines (sometimes with only marginal fuel savings) Dot matrix destination and route signs
26 Our Findings Any move towards very low or zero emission (especially CO 2 ) buses needs to be part of a tripartite agreement that sees: 1. Operators strengthen themselves through value for money investments 2. Public sector agencies prioritise (where appropriate) public transport and walking in infrastructure design and operation 3. Enforced regulations that give confidence to the bus industry and its investors
27 Our Findings Operators are enthusiastic about moves towards greener buses Most of this is based on commercial considerations We detect a positive attitude towards radical initiatives for low emission vehicles Operators appear positive about agreeing to a potential tripartite agreement
28 Preliminary Conclusions Operators will sign up to radical initiatives so long as there is no adverse financial consequence There will be an adverse financial consequence which can be mitigated through a range of measures that could for example: Assist bus operations (infrastructure and regulatory) Raise fares Reduce lending rates for appropriate vehicles Provide grants for cost increments for vehicle replacement
29 Preliminary Recommendations Raise the regulation for new bus entry to Euro IV or better by 2020 and prepare operators for this immediately Anticipate, foster, and if necessary financially incentivise, import of hybrid buses in the short term Prepare FEA for the practical implications of providing suitable electrical services for electric bus fleets Pilot and test operational capability of electric buses in Fiji Anticipate, foster, and if necessary financially incentivise, import of electric buses in the medium term
30 Phasing in Green Buses
31 Potential Emission Reduction Plan
32 Preliminary commitments to COP23 Reduce CO 2 emissions from the bus subsector by: 50% by % by 2045
33 The Fiji Bus Industry is great: please help it to get much greener and even better! Vinaka!
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