Present situation –Haiphong city as a case study · Dinh Van HIEPa Eric TRELb aInstitute of...

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Public Transport Authority as an Efficient Solution for Sustainable Urban Transport Development:

A Case Study in Hai Phong City

HCMC, 20 September 2017

Dinh Van HIEPa Eric TRELb

a Institute of Planning and Transportation Engineering (IPTE),

National University of Civil Engineering (NUCE), No. 55, Giaiphong str., Hanoi, Vietnam.b Urban Transport Expert, Trel Transit, Amsterdam, The Netherlands.

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• 900,000 motorcycles on a population of 1.9 million (474 per 1,000 inhabitants)

21-Sep-17 EASTS-2017 IPTE

Present situation – Haiphong city as a case study

• 8 urban bus lines in operation (and 2 on Catba island)

• Approx. 7 million passengers per year (20,000 per day)

• Less than 1% of urban trips made.

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3Infrastructure & passengers


Subsidy

4Fleet- Haiphong city as a case study


WB project

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Planning in 2007 for Hai Phong Public Transport:

-> to meet 10- 15% of travelling demand of 18 bus lines. Further it

stated that there should be 33 bus lines in total by the year of 2020,

reaching 20- 25% of travelling demand.


Planning vs. Implementation: Haiphong city as a case study

In fact (2016), the bus system serves not more than 1.0% of the transport demand.

How to make it work?

6Urban transport 2015-2025


Population Hai Phong increases by 10%

Economic growth 8-10% Mobility increases

57% more trips per day and more people buy a car

More congestion, pollution and accidents

The city becomes less accessible

Hai Phong needs good public transportto keep the city liveable and accessible

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7How to make the PT successful?


1. Improve the public transport

2. Make it affordable and sustainable

4. Manage the traffic

3. Manage the operators

8How to make the PT successful?


1. Improve the public transport

• Network extension

• Passenger information

• Bus Rapid Transit (priority)

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2. Make it affordable and sustainable

How to make the PT successful?


• Fare structure/differentiation

• Subsidies

• Funding

Fare differentiation:• Reduction for

target groups• Reduction for

changing lines

Subsidy: • available for all operators (public and private)

Funding:• Parking fees• Advertisement• …

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3. Manage the operators



• Establish a Public Transport Authority (PTA)

• Competitive tendering

• Monitoring and improvement

Establish a PTA

Contract incl. specification of

servicesTendering for the

lowest subsidy

Monitoring and penalties

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4. Manage the traffic



• Discourage private transport

• Traffic management

• Parking management

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OrganisationLegislation Financing

The house of public transport

Government policy and priorities

To propose PTA for Hai Phong

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Why a city need a PTA?

• Develop attractive public transport

• Introduce modern systems: smart card, real-time information, BRT

• Contract and monitor bus operators

• Manage fares and subsidies


Public Transport Authority (PTA)

14Best practices


Curitiba Oslo Singapore

Bologna Portland Madrid

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15Oslo, Norway: bus, tram & metro


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• Fare integration: including transfer

• Ticket integration: one ticket for all transport modes


Oslo, Norway: fare integration

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• Public Transport Authority: Ruter As, owned by city 60% and county 40%, established in 2007.

• Organisation: interdisciplinary teams, customer and process-oriented.

• Bus and ferry contracts: competitive tender.

• Tram and metro contracts: negotiation and direct award.

• Public transport share 32.5%.

• Fares cover 50% of expenses


Oslo, Norway: PTA

18Oslo, Norway: success


Start PTA

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Transport:

• Ticket and fare integration (smart card)

• Passenger Information System

• Bus Rapid Transit (BRT) & feeding systems


Best practices

Management:• Public Transport Authority (PTA)

• Service contracts with all operators

• Competitive tendering

• Fare collection organised by PTA

• Subsidy to keep fares affordable

20Function framework for urban transport services


Based on Van de Velde’s approach (1999), the World Bank (2013) has proposed a function framework for urban transport service as below:

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21Diagram of functional classifications of public transport

provision


Shibayama (2011) designed a diagram for comparing organizational structures of urban public transport utilized in London, Vienna, Tokyo and Seoul

22Government policy (Vietnam)


Management Paper No. 148/TTg-KTN1/2014on the implementation of solutions of rational development of transportation modes in big cities

Decision No. 13/2015/QĐ-TTg7/2015Mechanism and policy on promotion of public pasenger transportation by bus

Decision No. 280/QĐ-TTg3/2012Approving the Proposal on bus public pasenger transportation for period 2012-2020

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Level Actor Responsible for

STRATEGICLong term

GOALS Transport policy Subsidy budget Local regulations

Proposed PTA for Hai Phong city


OPERATIONALShort term

OPERATION Transport operation Investments in fleets/rolling

stock. Customer services

TACTICALMedium term

IMPLEMENTATION Public transport network Service levels Contracts with operators Fare structure and ticketing Investments in infrastructure

OperatorOperator

Public Transport Authority

Department of Transport

Hai PhongPeople’s Committee

Operator

24Tasks of the PTA


1. Planning

2. Contracting

3. Promotion

4. Development

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Transport planning: • analyse transport demand

• define the network and services

• advise on new infrastructure

Financial planning: • calculate costs

• set affordable fares

• assess the need for additional subsidy

• check the available budget

• if necessary, adjust the service plan


Task 1 - Planning

Combining technical and financial planning is essential

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Procurement: • competitive tendering

Contracting:• contract duration

• specification of services

• quality criteria and penalties

• subsidy mechanism

Monitoring:• monitoring of performance

• application of penalties

Annual adjustment:• annual adjustment of

network, services, fares and subsidies


Task 2 - Contracting

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Information on bus services:

• On the internet

• On the bus stop

• In the vehicle

Promotion of public transport:

• Try-out tickets

• Social media

• Customer platform

• …


Task 3 - Communication

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• New lines

• New infrastructure

• Smart card

• Real-time information

• Bus Rapid Transit

• Traffic management on bus routes


Task 4 - Development

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PTA organisation

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Phase 3Phase 2Phase 1

PTA Tasks per Development Phase


Start

1 - Planning

GPS

Bus Rapid Transit

Smart card

3 - Communication

Real-time Information

2 - Contracting

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Phase 3

Phase 2

Phase 1

PTA proposed Staffing per Phase


Management 1 1 1Transport Planning 1 2 2Financial Planning 1 1 2Procurement 0.5 1 1Monitoring 2 3 4Communication 0.5 1 1Infrastructure Management 1 2IT Systems 1 2Supporting staff 4 7 10

Total 10 18 25

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• Establishment of a Public Transport Authority (PTA) sets the stage for developing and managing successful, attractive and sustainable urban public transport.

• A PTA should be developed step-by-step, starting with contract management, performance monitoring and network design and gradually assuming more tasks.

• A condition for successful urban public transport is the provision of sufficient subsidy for the operators to renew their fleet.


Conclusions (1)

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• The introduction of parking fees may provide for the necessary funding.

• Last but not least, strong political backing and courage is indispensable to make public transport successful. That should not only be reflected in policy papers but also in the allocation of staff and budget.


Conclusions (2)

Present situation –Haiphong city as a case study · Dinh Van HIEPa Eric TRELb aInstitute of...

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