Study on economic andfinancial effects of theimplementation ofRegulation 1370/2007on public passengertransport services

Final ReportFebruary 2016

Our ref: 22765001Client ref: MOVE/ A5/5ER/2014-356/512.698871

Study on economic andfinancial effects of theimplementation ofRegulation 1370/2007on public passengertransport services

Final ReportFebruary 2016

28- 32 Upper Ground

London SE19PD

Our ref: 22765001Client ref: MOVE/ A5/5ER/2014-356/512.698871

European Commission

28 Rue de Mot

B-1049 Brussels

Steer Davies Gleave has prepared this material for European Commission. This material may only beused within the context and scope for which Steer Davies Gleave has prepared it and may not be relied

upon in pat or whole by any third party or be used for any other purpose. Any person choosing to useany part of this material without the express and written permission of Steer Davies Gleave shall be

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therefronl_ Steer Davies Gleave has prepared this material using profeSSIonal practices and proceduresusing inforrnation available to it allhe tirne and as such <my new information could altN the validity ofthe results Jnd conclusions made.

Executive Summa ry ii

Conclusions ii

Recommendatiors v

1 Introd uction 1

Background 1

The main provisions of Regulation 1370/2007 3

The need for this study 3

Purpose and orga nisation of this report.. 4

2 Methodo logy 5

Introduction 5

Stakeholder consu Itation 5

Desktop research 9

Expert workshop " 13

3 Economic and financial performance of public transport in Europe 15

Introduction 15

Overview of market structure and performance 15

Definitions of performance 23

Objectives for public transport.. 24

Factors affecting the performance of public transport 27

Performa nce ana lysis 30

Conclusions 41

4 Background information of the provision of public transport services 42

Introduction 42

Key aspects of public transport operations 42

Key aspects of Regulation 1370/2007 52

5 Case studies 60

Introduction 60

Stockholm metro (Sweden) 62

Emilia-Romagna (Italy) 68

Budapest (Hungarv) 78

Burgasbus (Bulga ria) 85

Grenoble (France) 92

Ulm Stadtwerke (Germany) 98

Manchester Metrolink (United Kingdom) 103

Bus Eireann (Ireland) 109

Overall conclusions from the case studies 116

6 The impact of Regulation 1370/2007 119

Introduction 119

Influence of the Regulation on the case studies 119

Impact of the Regulation across the EU 127

Specific issues .. 131

Summary 136

7 Best practices 138

Introduction 138

Existing sources of information 138

Stakeholder comments on best practice 141

Knowledge base summary 148

8 Conclusions and Recommendations 161

Key findings 161

Recommendations 165

Figures

Figure 2.1: I\pproach to stakeholder engagement for the study 6

Figure 2.2: Workshop participants 14

Figure 3.1: l.ocal public transport journeys by bus, tram and metro in the EU, 2000 to 2012 .. 19

Figure 3.2: Profitability trend in a typical public transport bus contract 23

Figure 3.3: illustration of performance and its relation with stakeholders 26

Figure 3.4: Interactions between the factors that influence performance of a network 26

Figure 3.5: Sbrmlands Ian: average revenue per vehicle-kilometre by route length 31