foil 1 traffiq – local public transport authority of frankfurt am main dr. hans-jörg von...

foil 1

traffiQ – Local Public Transport Authority of Frankfurt am Main

Dr. Hans-Jörg von Berlepsch (CEO traffiQ, Frankfurt am Main)

Workshop BAQ (Better Air Quality)Yogyakarta, Indonesia13th-15th december 2006

Transport Association and Tariff Integration

The European Experience

Sub-plenary Session 1Stream 2

Sustainable Urban PublicTransport in Asia

Transport Associations and Tariff Integration – The European Experience foil 2

Structure of presentation

Character of Frankfurt and Rhein-Main-Region

Transport systems

traffiQ - Public Transport Authority

Transport association and tariff integration

Environmental Innovation through competition – EEV-Busses

traffiQ – Local Transport Organisation of Frankfurt am Main


RegionFrankfurt-RheinMain

… in the midst ofEurope

Region Frankfurt-RheinMain

► 5 million inhabitants

► 2,5 million employees

► 185 billion $ gross product

► 630 million passengers in public transport (per year)


Traffic problems in high density areas

► Congestions► Air pollution► Noise pollution► Land use

Increase in the number of vehicles and their use

Commutersto Frankfurt (excl. officials, self-employed, school-children and students)

amount: 2/3 of the inhabitants


traffic; 48%

coal-burning power plant ; 42%

heater (priv. households); 3%

industry; 7%

Traffic problems in Frankfurt / RheinMain

Main causers of air pollution:Traffic

Particle emissions (PM10)Frankfurt Höhenstraße

Solution: Avoid traffic and change to public transport

Means of landuse in urban traffic(per person excl. parking areas)

Vehicles: 100 m2

Trams: 4 m2

In comparison:Buses: 20 m2

Urban railway: 3 m2

Bicycles: 10 m2


Transport modes in Frankfurt and the Rhein-Main-Region

Local and regional mobility


Local public transport in Frankfurt and the Rhein-Main-Region

Regional Transport (commuter train)

►Connection Frankfurt with its

surrounding areas

►Central tunnel under the city

►Electrical trains

►Longer stopping distances

►High travel speed

► 9 lines

►48.000 km per day►482.000 passengers everyday

►15 to 30 minute frequency


Local transport in Frankfurt and the Rhein-Main-Region >>

Underground/metro►fast inner-city light rail

►High traveling speed

►Central tunnel under the city

►7 lines

►19.000 km per day

►410.000 passengers everyday

►5 to 15 minute frequency


Local transport in Frankfurt and the Rhein-Main-Region >>

Trams►Inner-city fine distribution

►Tracks above ground

►Short distances between tram-stops

►8 Lines

►19.000 km per day

►169.000 passengers everyday►A 7 to 15 minute tact


Local transport in Frankfurt and the Rhein-Main-Region

Bus►Shuttle transport

►Short distances between stops

►Fine-development of residential estates

►44 lines and +9 night buses

►41.000 km daily

►165.000 passengers everyday►5 to 30 minute tact

Dense local passenger transport network in the central city area► Transport systems - bus, trams, underground and suburban railway


DivisionTender Planning

Sector Traffic Management

Division Service Ordering and Quality Management

DivisionAdministration

Sector Finance Administration

Sector Marketingand Mobility Research

Administrative Department

Division Information Management

Division Financial Management

Division Marketing and Customer Service

DivisionMarket and Traffic Research

CEODr. Hans-Jörg von Berlepsch

Municipal Matters

Corporate Communication

Legal Services

Local PTA (traffiQ) - Organisation chart

Project Office


TRAFFIC-MANAGEMENT

FINANCE + ADMINISTRATION

MARKETING + MARKET RESEARCH

Service planning

Network planning

e. g. PT general planning Time table Coordination with municipality Definition of requirements of infrastructure

Finance

Central services

Administration

e. g. Budgeting Personnel

Marketing

Customer relationship

Traveler information

e. g. Strategy development Mobility counseling Clients‘ requests

Competitive tenderingQuality management

e. g. Quality standards Tendering Contracting Service charges Contract execution Controlling

Financial management

e. g. Billing with operators Financing of public transport Administration and allocation of resources

Market researchTransport research

e. g. Passenger counts Passenger surveys Service quality Customer satisfaction

Local PTA (traffiQ) - tasks & responsibilities


Germany before 1970► every transport company had its own tariff for local public transport

► no transparency in tariffs and no integrated coordination of schedules

► tickets of different transport companies were not accepted by the others

► no coordinated transport planning and marketing

History of transport associations and tariff integration in Germany

Development since 1970

Phase 1: tariff associations (public transport companies accepting each others tickets leading to associated tariffs)

Phase 2: transport associations (coordination and increase of transport planning and marketing, coordinated timetables for public transport)

Phase 3: tariff and transport associations (contracts on tariffs, distribution of fare income and shared timetables)

Today: tariff and transport associations nearly all over Germany >> one tariff – one ticket


federation ofpt* companies operatingin the area of association

pt * companiesassociation

mixed association(pt* companies + cities/counties)

cities/countiesassociation

tariff and transport association

Organisation of German tariff and transport associations

increasing complexity: several companies, tariffs, cities, counties, states etc. to integrate

federation ofpt* companies operatingin the area of association together with the politicaladministration of cities/counties in this region

federation offederal states (e.g. Bavaria)cities (e.g. Frankfurt) andcountiesoperating together

* pt means public transport


Regional PTA* (RMV) - Structure

Members in the RMV

27 partners constitute theRMV-Supervisory Board, thereof

- 15 rural districts- 4 large cities (e.g. Frankfurt)- 7 medium-sized towns- The province of Hesse- 368 Global authorities- 153 Transport companies

* PTA = Public Transport Authority


local PTO* traffiQnon profit organisationformally privatized but100 % owned by CoF

City of Frankfurt (CoF) / municipality

TENDERING and CONTRACTS (competition)

privatoperators

public operator (VGF)

[owned by CoF]operational

level

politicallevel

excecutivelevel

regional PTO*(RMV)

3-level-organisation of local and regional public transport

other cities

regionaloperators

GermanRail(DB)

* PTO = Public Transport Organisation

Organisation in Frankfurt / RheinMain


Specific features of a German transport association

Neue Chancen der Tarifpolitik

A legally independent association

company

Transport Association

Own personnel and own

equipment

Rhein-Main-Transport Association (RMV)- Integration of approximately 110 tariff rates

- approx- 150 transport companies- Region, Districts and large towns as partners

Integrationof regional and local transport systems

Integrationof

bus+

rail

Responsiblefor tariffs,

RSA*,planning,

etc.

*RSA = revenue sharing agreement


A common tariff rate

Harmonization Aggregation

Tariff integration means:

>New Opportunities

- Tariff leeways but also synergies- Marketing/market appearances- Information - Transport planning- …

Harmonization of different tariffs couldlead to deficits for some parties

(depending on the levelsof the old tariff compared to the level of the new tariff)

Aggregation of fare income that was separated into single tariffs/companies - informer times - leads to defects for some parties

(one tariff – one ticket)

Example: 1995 - Tariff Integration RMV (Region Frankfurt / RheinMain)

► about 110 single tariffs

► about 150 public transport companies

► 26 cities and counties


Scope for tariff and ticket design

Neue Chancen der Tarifpolitik

example

combination ticket„voucher = ticket“

for public transport(combined with e.g.

football World Cup 2006, concerts, events etc.)

example

job tickettickets for the whole staff of a company

example

student tickettickets for all the

students of auniversity

(student identity cardis your ticket)

Advantages

► low costs for distribution► more reliability of fare income (because tickets sold as a package)► political objectives in transportation are easier to achieve► increase of the usage of public transport in relation to other means of transportation (regarding “Modal Split”)

example

season tickettickets for a period

of time(day, week,

month or year)(consistent strategy)

Tariff and transport association opportunities …

4 % * 22 % * 5 % *

* share of sales, aprrox. 3/4 are generated by time cards and special agreements


Ticket types

cash tickets season tickets

Usual ticket types in German tariff and transport associations

► single ticket

► short distance ticket (up to 2 km)

and others …

► dayly ticket

► weekly ticket

► monthly ticket

► annual ticket

* share of sales, aprrox. 3/4 are generated by time cards and special agreements

23 % *

5 % *

2 % *

24 % *

14 % *


Integrated tariff systems (Examples)

Area zone in the polycentric area Ring zones in themonocentric area

tariff 3tariff 4tariff 5tariff 6tariff 7tariff 17

Example:journey from city of Frankfurt (zone 50) to Wiesbaden (zone 65, yellow) = „tariff 5“


Tariff rate as a regulating instrument

Objectives (as examples) Corresponding tariff measures

Acquiring occupational travellers for local passenger transport system

Job tickets and favorable time cards

Acquiring schoolchildren/students at an early stage as “future” user potentials

Semester tickets, special offers for schoolchildren, annual cards for schoolchildren

Equalization of passengers demand (in vehicles) in the course of the day

Offers limited to certain hours, more expensive during main transportation hours or special offers in non-main transportation hours

Maximizing tariff revenues Simultaneously prepare, implement and analyze tariffs adjustments and simultaneously product range changes and uniformly prepare, implement and analyze the aforesaid correspondingly.

Encouraging trade fair visitors, football fans, etc. to use the local passenger transport system (alleviation of parking situation on the spot)

Combi-ticket agreements with the organizers of trade fairs and events, etc..


What we do to make our tariffs understandable for all customers

www.rmv.de

Information

► timetable

► tariff

► fares

► distribution

► services

► etc.

„best routing“ onlineType in your request here for connections between any starting point to any destination.

Current web services in 6 languages ►timetable board


Advantages of an integrated association

Advantages for the customers► free choice of transportation system (e.g. bus , tram, regional rail)

► comprehensible strategy „one tariff - one ticket“

► coordinated timetables (best connections)

► improvement of quality

Advantages for the association► synergy effects for marketing, customer information etc.

► unification of distribution (e.g. ticketing)

► simple tariff system for all public transport systems

► consistent market presence

► higher demand on public transport

Experience of German associations for nearly 40 years (since 1967)

► increasing demand and increasing fare income


50%

50%

Allowances Ticket income

Financing of the public transport service in the association

basic data RMV 1

fare income about € 550 mio.

total costsabout € 1.150 mio.

subsidies for the associationabout € 630 mio.

fare income per trip86 ct.

potential customers about 5 million

* subsidies by country, state, counties and cities

1 data of tariff and transport association RMV, based on 2004

*


0,40

0,60

1,00

1,20

1996 1997 1998 1999 2000 2001 2002 2003

Expenses in 7 years = + 18,3 %

Earnings in 7 years = + 43,9 %

Liquidity ratio 44,1% 46,5% 47,6% 48,5% 50,0% 51,8% 52,3% 52,6%

0,931,01 1,03 1,03

1,08 1,091,06

1,10

0,410,47 0,49 0,50 0,53

0,56 0,570,59

Tariff increases in 7 years = 18.5 %

Earnings and expenses

Earnings and expenses in billion Euros (development of the RMV)

Financial effects positive:

- Cost coverage ratio has been continually increased

- Earnings have been increased by 43.9% in 7 years

>> lower subsidy amounts


Innovation through competition - use of EEV buses (1/2)

Demanding EEV Standard in Tender Package A Initial situation: Emission limiting values for air pollutants covered by the 22nd Federal Emission Protection Regulation (22. BImSchV) must be complied with for particles from 2005 and nitrogen oxides (NOx) from 2010. Communities are obliged to issue air pollution control plans and action plans. Action required in the Transport sector: Avoidance of carbon dioxide, carbon monoxide, nitrogen oxides (ozone precursor substances), noise, fine dust

Lot A: Pilot Tender with High Environmental Standards Minimum standard for exhaust fumes EURO IV + carbon particulate filter being narrowed to EURO V + carbon particulate filter by December 2009 Optional exhaust fumes standard: EEV Standard

Federal Government subsidies EEV Vehicles and promotes the successful bidder Federal government supports vehicles with high EEV standards with up to € 1.4 Mio (€ 25,000 per standard or midi bus, € 12,000 per mini bus) through the KfW bank (“Kreditanstalt für Wiederaufbau”) EEV tendering parties receive an additional bonus on the evaluation of their bid With this tender Lot A fulfils the potentials of European legal standards Promotion also comprises the procurement of the necessary reserve vehicles (up to 57 vehicles will be promoted) Grants will only be given if EEV standard is offered for all vehicles in each category (not isolated for individual vehicles) – irrespective of whether they are driven by natural gas or diesel


Results and experiences from Frankfurt am Main

All four tenders in lot A were offers with EEV standard

The price of the best offer is significantly below the benchmark

Promotion by the KfW reduces the total price by 5 cents per operational km. Even without this assistance, a good price would still have been achieved

It was again proven that quality can be controlled and significantly improved through competition in the bidding process

Local public transport makes its contribution towards air purity and noise reduction

The automotive industry has responded to the demand for high-quality vehicles

The Package A pilot tender has intensified the system competition of the vehicle manufacturers (natural gas vs. diesel) and constitutes at the same time a contribution towards strengthening the affected companies in European competition

Innovation through competition - use of EEV buses (2/2)


Thank you for attention!

traffiQ – Local Transport Organisation of Frankfurt am Main

Dr. Hans-Jörg von Berlepsch (CEO traffiQ, Frankfurt am Main)

foil 1 traffiq – local public transport authority of frankfurt am main dr. hans-jörg von...

Documents

transport associations

transport modes

main slide

european experiencefoil

region local

frankfurt hhenstrae

asia slide

year slide