3 industry reform rtm final
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Transcript of 3 industry reform rtm final
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Strategy for Public Transport Revitalization
The Reform of the Urban Bus Industry: Industry Structure, Planning, Regulation and Institutions
Richard MeakinLegal and Institutional Specialist
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Challenges• Falling bus ridership, increasing car and m/cycle use• Traffic congestion affecting buses – a vicious cycle • Private vehicle restraint is not politically feasible until
public transport offers an acceptable level of service• Must avoid escalating subsidy: buses must be:
– demand-responsive– efficient– value for money
• Consolidation of the bus industry is complex:– many stakeholders– well-entrenched– low cost/low quality equilibrium
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Key Constraints on Bus Industry ReformCurrent System Proposed System
Route permits & control card. Perpetual, no service obligations
Limited-duration contracts with performance standards
Fleet owned by individuals, organised into cooperatives No service obligations
Fleet owned by company
Setoran daily rental to drivers Drivers employed, paid a wage
Flat fares Graduated fares based on distance, service quality
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Opportunities • Jakarta (non-BRT) buses all recover operating costs from revenue.
Retain this key threshold. • Commercial operation and cost recovery imperative will impose
financial discipline and market sensitivity on planners, operators, regulators.
• BRT and MRT will adopt electronic ticketing– enables flexible pricing, data collection, secure revenue, passenger
convenience.
Promote a common ticket.• MRT ridership will depend on effective integration• Tendered contracts promote competition and demand-responsive• Operation by companies will:
– mobilize market incentives, management expertise, capital– enable internal cross-subsidy– enable performance standards– consolidate bus industry into a manageable number of clients
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Requirements for Successful Management of Urban Buses
1. A coherent and progressive policy with clear objectives and time frame
2. A manageable industry structure
3. An appropriate regulatory framework (laws, regulations, standards etc)
4. A capable institution for monitoring, planning and regulation
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Keberhasilan Pengelolaan Bis
Empat Pilar Keberhasilan Pengelolaan Bis
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Pillar 1 - A Coherent Policy
Keberhasilan Pengelolaan Bis
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Why Draft a Policy Statement?
• Encourages a formal, rational and comprehensive approach
• Successive statements enable a progressive, long-term, approach
• Notifies stakeholders and community of government’s proposals and provides a focus for consultation
• Difficult dilemmas require community consensus and support
• Guides day-by-day decision-making
• Discourages short-term, political expediency
• Government’s performance can be measured against its policy
• Promotes investors’ confidence
• Can develop common strategies for many cities - mutual learning
• Provides a basis for transport law
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The Mayor of London’s Transport Policy 2009
Fast ForwardCopenhagen 2003
Draft for Consultation
Examples of Urban Transport Policy Papers
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Does Jakarta have a Transport Policy?No specific policy paper
Policy can be inferred from a variety of sources:
Government publications:• Pola Transportasi Makro (PTM) 2007 - a transport infrastructure plan
• Grand Design draft 2010 - management principles, (not published)
Consultants studies:• JAPTraPIS* 2012 a transport masterplan, advocates bus industry consolidation
Laws and regulations:• Law UU 22 of 2009 on Transport
• DKI Perda of 2013 on Transport
Ministers statements and actions
DKI Transport Policy is not coherent, progressive
Still scope for short-term, ad hoc, expedient measures
Laws tend to pre-empt policy, most transport operations now illegal
* Jabodetabek Public Transport Policy Implementation Strategy’ (Japtrapis)
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Keberhasilan Pengelolaan Bis
Pillar 2 – An Industry Structure Amenable to Regulation, Responsive to Demand
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Current Industry is too Fragmented to Regulate Effectively – Must Consolidate
14,000 angkots2,200 medium bus1,600 big bus
• Each vehicle licensed separately by Route Permit and Control Card - no service obligations
• Each setoran vehicle is a separate business, must recover costs each day
• Co-operatives act as intermediaries • Illicit regulation fills the ‘regulatory vacuum’• Setoran separates owners from drivers • Nobody is accountable for service delivery
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Keberhasilan Pengelolaan Bis
Pillar 3 – A Regulatory Framework Appropriate to Industry Composition and Policy Objectives
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Some Principles of Regulation
• Operators’ incentives should align with policy objectives, eg to maximise ridership, respond to demand
• Competition is the most effective incentive
• Operators must be accountable for service delivery
• Some functions should be left to the operators: eg minor changes to fares and routes
• Severing the link between revenue and cost (eg by pay-by-km) requires complex management, financial accountability, and incurs a high risk of escalating subsidy
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Conditions to Attract Private Investment
Contracts must attract commercial, corporate operators with experience, qualified management and financial resources
Government must minimize risks:
– Risk of ‘unfair’ competition (low cost, low quality, no service obligations) from angkots, illegal modes, and government buses
– Risk of fare constraints for socio-political reasons despite rising costs
– Risk of congestion reducing bus productivity and efficiency
– Risk of imposing unprofitable service obligations
– Risk of high front-end investment (eg depots)
Contract conditions must give a reasonable assurance of cost-recovery over the life of the contract
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Best Practice in Commercial Contracts
• Minimum contract - one route. Can be area network
• Private companies with resources and management skills
• Operating under multi-year, fixed-term, contracts
• Service obligations with sanctions
• Competition for contracts
• Market incentives, some commercial freedom
• Cost recovery, no operating subsidy
• Fares to reflect market and costs
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The National Law Provides for Bus Reform National Law UU22 on Transport:• Encourages ‘healthy competition’ (198)• Main routes must be served by big buses (158) • Small buses may not operate parallel to big buses (158)• Operating right may be a limited-duration contract, or an
area network (174)• Contracts to be awarded by ‘selection or tender’ (174)• No individual may operate a fixed-route transport service
(139)• Fares for non-economy routes set by the operator (185)• Non-economy services may not be subsidised (185)• All public transport operators to comply with minimum
service standards, to be elaborated by regulation (198)• No Ministers regulations yet made under UU22
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The DKI Perda of 2013 – A Missed Opportunity?• Does not expand the reform provisions of UU22• Many matters left to Governor’s regulation • May subsidise passengers (conflicts with UU22)• Route or area contracts awarded by ‘selection’ or tender,
but 5-year Route Permits and 1-year control cards retained (97–106)
• Operators submit monthly performance reports (102)• Maximum age of buses 7-10 years (Art 51). Euro 2 (54). • Small buses to be replaced by large buses on expiry (52)• DKI government to ‘monitor and evaluate’ each bus route
annually (112) • Head of Dishub must evaluate the performance of the
transport system every year (205)
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Keberhasilan Pengelolaan Bis
Pillar 4 - A Capable Agency to Manage Reform and to Plan, Monitor, Regulate
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Key Roles of the Agency
• Manage the reform process• Plan
– Annual 5-year network, service and financial planning cycle – Coordination with other government agencies (economic affairs, land
use, infrastructure, police etc) – Draft transport policy and strategy
• Monitor– Monitor the performance of the PT system and all operators vs
demand, affordability, policy objectives – Introduce measures to address deficiencies in the annual plan
• Regulate– Procure transport services under contracts– Take measures to remedy deficiencies, improve performance– Maintain balance of supply/demand, revenue/cost/affordability
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• Established and defined by a regulation
• Governed by an appointed board
• Clear objectives
• Accountable for performance
• Some autonomy, within legal limits:
- revenue and expenditure
- staffing and conditions
- operations
Features of a Transport Authority
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• To procure public transport services using formal and transparent competitive procedures
•To coordinate and integrate several transport modes, eg to manage the modal share between bus and rail
• To coordinate transport strategies and financial arrangements between multiple local governments
• To provide political accountability for subsidies from public funds
•To concentrate limited resources – expertise and funds.
• To reduce opportunities for direct political interference in service provision
• To focus policy attention and funding on urban transport
• To coordinate the programmes of different departments responsible for different aspects of urban transport.
• Sometimes a condition of donor project funding to manage funds, ensure supervision and accountability.
Functions of a Metropolitan Public Transport Authority
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Steps in the Transition Towards a Jabodetabek Transport Authority
Phase 1 - Strengthen Dishub’s capability: – to plan, monitor, regulate– to manage the consolidation and reform of the industry
Phase 2 – Create a DKI Public Transport Authority based on the strengthened Dishub public transport division
Phase 3 – Extend the jurisdiction of the TA to Jabodetabek