Bus Transport

Demand, Economics, Contracting, and Policy

David A. Hensher

• Publisher: Elsevier
• Year: 2020
• ISBN:
  9780128203934
• Topic: Technology & Engineering
• Subtopic: Transportation & Navigation
• Index: Technology & Engineering

Bus Transport: Demand, Economics, Contracting, and Policy examines in one source the most critical and current research themes of public transport relevant to regulators, planners, operators, researchers and educators. It highlights the wider economic impacts of public transport and compares energy usage across all public transport modes. The book examines the evolving debate on Mobility as a Service (MaaS) and includes discussion of such themes as; public image issues, performance measurement and monitoring, contract procurement and design models, travel choice and demand, and global public transport reform. The book reflects the leading perspectives on the preservation and health of the bus sector, intending to move public transport reform forward.

• Compiles in one source up-to-date insights on important public transport themes, issues, and debates
• Examines a wide range of public transport topics in the multidisciplinary fields of economics, policy, operations, and planning
• Bridges the gap between scientific research and policy implementation

Chapter 1

Introduction

Abstract

This introduction to a book on Bus Transport provides a brief synthesis of the focus of the book and acknowledges the source of the original pre-edited version of each chapter. It also lists contributors to each chapter and acknowledges those who have contributed over many years to the authors knowledge on bus transport economics.

Keywords

Author recognition; Bus transport; Intelligent mobility; Planning; Policy; Public transport contracting

Public transport is a theme of enormous importance in all societies. The bus is the most patronised of all land–based public passenger modes. It is however seen as a somewhat unglamourous means of supporting mobility and accessibility (in contrast to rail – heavy and light), yet offers so much to the travelling public as well as offering attractive sustainability opportunities. We recognise however that attracting and retaining public transport patronage in general, and bus in particular, is a growing challenge in many countries, developed and developing, rich and poor, and will be further exacerbated in economies that are moving towards a high level of economic efficiency and wealth, where the desire and ability to own and use an automobile will continue to impact the future of all forms of land-based public transport, especially for the majority of urban and regional travel. This future may be at further risk with the introduction of autonomous cars.

There is no doubt that the role of urban public transport is continuing to change. The gradual loss of market share in large metropolitan centres, typical of many western cities (despite some promising signs of a reversal in some cities), is a product of public transport being unable to be responsive to the changing needs of the market, while the car, due to its inherent attributes of flexibility and convenience, keeps pace with people's ever changing transport needs. If there are three overriding characteristics portraying the current market profile, it is increasing real wealth for most groups but not all, greater complexity of activities undertaken in the daily life cycle, and the flexibility offered by alternative forms of transport (and non-transport responses such as working from home). These are strong forces of change, which move conventional regular fixed route public transport even further away from meeting many mainstream demands. Certainly, there are some signs of increasing use of public transport, although modal shares are going the other way – for many reasons such as longer train trips to lower priced residential locations, but the impact on the overall transport task is often small.

In many western societies and a growing number of developing economies, motorised urban public bus and rail transport is a niche market provider and looks like being so for the foreseeable future, even with new opportunities enabled by the increasing availability of digitally supported technology to better inform the public of the service opportunities provided by public transport. It is also unclear what role the bus might play in and future multi-modal developments associated with Mobility as a Service (MaaS), although there is a growing sense that without public transport at the centre of MaaS, it will be nothing more than a car-based offering that will be opposed by governments globally. But what market niches are we talking about? The answer lies in the realm of the diversity of customer needs (both real and latent) and the types of services that can be offered through public transport to capture some (even if small) amounts of particular passenger markets. For example, commuters with a fixed workplace, travelling during the morning and evening peak between two locations with plenty of traffic, and who have no commitments before or after work, other than to get to and from home, are good candidates for public transport use; school children; adults on very low household incomes; special events (sporting, cultural etc.), and the elderly in declining health who cannot drive.

This book reflects the author's perspective on issues of importance to the preservation and health of the bus sector. The thirty four (34) chapters are edited versions of papers and reports written over the last twelve years, many of which have been published in journals and edited conference proceedings, while some are reports commissioned by transport authorities and associations. The research presented in this volume is intended to capture the debate on the role and relevance of the bus sector.

In preparing this document, I have selected papers that cover the themes of institutional reform, performance measurement and monitoring, service quality, travel choice and demand, integrated bus-based systems (referred to a bus rapid transit, busways, transitways), energy contrasts between PT modes, challenges in promoting bus over rail, and public transport policy, especially challenges in growing patronage, disruptive technology and mobility as a service (MaaS).

I have been privileged to work with many fine researchers who have co-authored earlier versions of many of the chapters. I am indebted to Yale Wong (Chapters 3, 5, 18, 32 and 33), John Stanley (Chapters 3,6 and 30), Corinne Mulley (Chapters 8, 14, 19, 20, 27, 29, 32 and 33), Neil Smith (Chapter 8), Chinh Ho (Chapters 12, 14, 19, 20, 28 and 32), Louise Knowles (Chapter 12), Zheng Li (Chapters 16, 17, 22 and 23), Loan Ho and Geoffrey Clifton (Chapter 18), Camila Balbontin (Chapters 20 and 30), Alejandro Tirachini (Chapters 24 and 25), John Rose (Chapter 24), Julieta Legaspi (Chapter 26), Baojin Wang (Chapter 26), Glen Weisbrod (Chapters 27 and 28), Richard Ellison (Chapter 28), David Cosgrove (Chapter 29) and Janet Stanley (Chapter 30).

I also wish to thank the many researchers who have provided an opportunity for dialogue on the many issues discussed in this book. In particular, I acknowledge the support of Michael Apps, Bill Greene, Sergio Jara-Diaz, Chandra Bhat, Ian Wallis, Juan de Dios Ortuzar, Juan Carlos Munoz, Ricardo Giesen, Jackie Walters, John Nelson, Darryl Mellish, Matt Threlkeld, Stephen Rowe, Didier van de Velde, John Preston, Chris Nash, Neil Smith and David Bray.

Part I

Reviews

Outline

Chapter 2. Public service contracts in the bus sector

Chapter 3. Disruptive technology and moving people

Chapter 4. The influence of the Thredbo series

Chapter 5. Competition and ownership in land passenger transport: the Thredbo story

Chapter 2

Public service contracts in the bus sector

Abstract

The chapter draws on the wider literature in economics that explores the role of contracting in the delivery of efficient and effective services as a way of revealing the potential strengths and weaknesses of alternative ways to garner greater performance from the delivery of bus services that are primarily under the control of the public sector, but which are increasingly delivered by the private sector on behalf of the public sector. We consider the case for competitive tendering versus negotiated contracts, and the role of effective actionable benchmarking under both contract regimes and suggest a practical way to undertake benchmarking.

Keywords

Bus contracts; Contract theory; Agency theory; Risk; Competitive tendering; Negotiated contracts; Benchmarking

2.1. Introduction and background

The provision of route bus services in many economies has changed considerably over the years. Following an initial situation that typically involved private sector provision up until the 1970s, as is still common among most developing economies, public sector monopolies became the norm. A substantial swing to private sector service provision then began in the 1980s, largely driven by a desire to reduce the growing call of services on the public purse and to provide scope for private sector innovation, which was thought likely to improve customer services and reduce costs (Hensher and Wallis, 2005).

In the developed world, there has been a growing interest in creating a competitive environment in which to deliver improved passenger transport services that not only grows patronage but also reduces the amount of subsidy payment from government to operators, be they public or private. In most locations where competition was deemed suitable, the rights to provide service have been increasingly achieved through competitive tendering (CT). The enthusiasm for private delivery of route bus services through CT has varied between countries, with negotiated contracts still popular in mainland Europe with a few exceptions such as Norway, Sweden and the Netherlands; however the winds of change have begun to revise the agenda as a result of European Union competition policy. Australia has always had a significant private sector presence in bus service provision, and the role of the private sector was increased through tendering out of services, initially in Adelaide and Perth in the 1990s (Wallis and Hensher, 2007). Sydney moved (in 2013) from negotiated contracts to CT but only for private operators, protecting the less efficient public operator (see Hensher, 2015 for full details), until 2018 when one of the public operator regions was put out to tender with a private operator winning the right to deliver services (including for the first time a component of demand responsive services). Singapore in early 2015 put all of its bus services out to tender, with 11 bidders. In the USA we mainly see management contracts that involve another party running services under contracts that are owned by the State.

Interest in public sector contracts has clearly been growing among those involved with public passenger transport. As governments move towards separation of regulation from operations, explicit contracts are becoming more ...

Table of contents

• Cover image
• Title page
• Table of Contents
• Copyright
• Dedication
• List of previous sources of publication
• About the author
• Chapter 1. Introduction
• Part I. Reviews
• Part II. Contracting
• Part III. Bus rapid transit
• Part IV. Image
• Part V. Elasticities
• Part VI. Crowding
• Part VII. Transport appraisal
• Part VIII. Energy
• Part-IX. Social exclusion
• Part X. Mobility as a Service (MaaS)
• References
• Index