Post on 14-Aug-2015
PPP for solving Public Transport woes in India
For World Bank Group Online course onPublic-Private Partnerships: How can PPPs help deliver better services?
24.06.2015By
Amit Kumar Jain
8
Parking Difficulties
Noise
Pollution/Emissions
Urban Transport Problems - 2
Source: World Wide Web
10
Benefits of Public Transport
Time savings – benefit to transit users
Fuel savings from transport operations
Air quality improvement (reduced emissions)
Green house gas reduction
Noise and vibration reduction
Other environmental improvement (reduced solid and liquid
waste, reduced impact on flora and fauna)
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Public Transport system employment
Commercial sector
Social benefits
City image
Urban form
Political
Amenity benefits to passengers: comfort, prestige
Benefits of Public Transport - 2
BASIC PREMISE
• The TRANSPORT SYSTEM of a city is the SUM of ALL MEANS of TRANSPORT
• Different MODES should be COMPLEMENTARY, not competitors.
WHY INTEGRATION ?
• Rational
• Cost-effective
• Efficient Public Transport System=Integrated & Optimized Modes • But also Improving the passenger’s experience in PT
WHY INTEGRATION?
• PAX desire “non stop-non transfer” journeys
• But the Transport Network is composed by different systems (buses, trains, mototaxi, etc)
• Commuters has to transfer between modes, with a feeling of “time loss” and “discomfort”.
• “minimise the need to transfer but maximise the opportunity to transfer”
HOW TO INTEGRATE?
• Integrated planning- low PHPDT by bus, high PHPDT by MRTS
• Seamless passenger interchange among different modes- station/stop planning
• Unified ticketing
• Adequate signages- information, pamphlets
• Complementary scheduling of services
• Fare concessions on using multiple modes
What services are to be provided and are these services affordable?
• The cities need an effective, efficient & affordable public transport services to meet the transportation demand.• The cities need to create Integrated Mobility Plans with an objective
to provide adequate, affordable & low carbon public transport system.• An integrated public transport may be sum of Mass Rapid Transport
system (MRTS), conventional bus system, autorikshaw, bicycles, pedestrians depending upon the demand along different corridors.
• However, transportation being capital incentive, the user fee to cover complete costs may be prohibitively high. The public authority may have to arrange Viability Gap Funding (VGF) to make the project financially sustainable and attractive to the private sector.
What are the reasons that the private sector would want to participate?
• The private sector may charge an appropriate user fee (fare) from the users to cover his capital and recurring cost.
• The private sector may also be interested in generating revenue from commercial activities like advertising, renting & leasing of commercial spaces etc.
What are the reasons that the private sector would want to participate?
• However, transportation being capital incentive, the user fee to cover complete costs may be prohibitively high. The public authority may have to arrange Viability Gap Funding (VGF) to make the project financially sustainable and attractive to the private sector.• If a private player is given right to develop all the modes of transport
in the city, he would select the most efficient one for a particular corridor as per demand. Like for high demand corridors- the Mass Rapid Transit System (MRTS) would be required, for low demand corridors- autorikshaw based service would suffice the demand. The private player would be more interested in operating all modes of transport to avoid inter modal competition.
Risk Allocation
• As a principle, the risks should be allotted to one who can best manage it. As such the risks may be allotted in following manner:• The risks pertaining to availability of land for the project, traffic
regulations, change of law, change in tax structure, should rest with the public authority.• The risks pertaining to construction, procurement of rolling stock,
operation & maintenance of system, timely completion of the construction and start of operations shall rest with the private player.