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Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional Public Transport Seminar Contracting, Financing and Corporate Management in public transport 13 October 2011 Skopje, Republic of Macedonia

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Page 1: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Innovative ways of Financing Public Transportation:

Best Practices from Different Cities

Kaan YıldızgözRegional Projects Manager &

Turkey Manager

Regional Public Transport Seminar

Contracting, Financing and Corporate Management

in public transport

13 October 2011Skopje, Republic of Macedonia

Page 2: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

PTX2

Page 3: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

5 axes for succesful public transport

Page 4: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Adaquate and Stable Funding

4 pillars: 1. increased patronage 2. enhanced efficiency 3. diversified revenue4. stable funding

Supporting the financial sustainability of the sector and helping

reduce dependency on subsidies.

Page 5: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Conventional Public Budget Sources and Fare are not the only sources for PT!

Page 6: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

TRANSIT + PROPERTY

Page 7: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

“Buyers who predict new road and rail links can make a fortune”

12 February 2003

Thanks to D.Wetzel

Page 8: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Don Riley has shown that land

aroundThe Jubilee Line

Extension stations has increased by £13 bn when the

line itself only cost £3.5 bn to build

Page 9: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Hong Kong - MTR

Page 10: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Dubai Metro

Page 11: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

So many cities! New Projects!

• Madrid5 New Metro, 2 Suburban R. StationsProperty Development 150 m Euro

Page 12: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Copenhagen - Orestad

-20000

-15000

-10000

-5000

0

5000

1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050

Page 13: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Bogota Metro – Taxing property owners over price increases

Page 14: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

SPONSORSHIPS & NAMING RIGHTS

Page 15: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

General

Station & Stop Name

Line Name

Sponsorships for Events

Duration of 3-25 Years

Mainly Co-Naming Agreements (with different applications)

Long term partnership in comparision with classicadvertisement

Page 16: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Station Naming Rights

Dubai Metro –13 Stations– 10 Years–490 mio $–3.77 milyon $ per station/year

New York Metro–Barclays –Atlantic Avenue Station–4 milyon $

Page 17: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Mall of Emirates Station

Page 18: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

New York Subway Barclays Station

Page 19: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Philedelphia AT&T Station

Page 20: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Line Naming Rights

Clevland BRT–Euclid Bus Line “Healthline” –Under the sponsorship of Cleveland Clinic ve University Hospitals– 25 Years–6.45 mio $

Page 21: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Las Vegas Monorail

Page 22: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

System Sponsorships

London Cycle Hire –Barclays Bank–“Barclays Cycle Hire” – “Barclays Blue”–25 mio Sterlin–>Corporate Social Responsibility Budget of Private Companies

Page 23: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Events Sponsorhips

Page 24: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

PARTNERSHIP MARKETING & LOYALTY MARKETING

Page 25: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional
Page 26: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional
Page 27: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Partnership Marketing Programmes

Page 28: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional
Page 29: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Main Modes of PT

Taxi Parking

Museum& Theather&

Cinema

Other Municipal Services

Toll Bridges

Schools Restaurant & Super Market

Attendence Control

Social Card& Citizenship Serfvices

Advertisement Place

Data Intelligence

Partnership Marketing

Other Transport Services

Low Expenses

Other Applications

Banks GSM Companies

Supermarkets Retail Other

Payment System

New Sales Channel

& Additional Platform

Page 30: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional
Page 31: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional
Page 32: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Thank You!

Kaan Yıldızgöz

Regional Projects Manager& Turkey ManagerE-mail: [email protected]

Page 33: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Innovative ways of Financing Public Transportation:

Best Practices from Different Cities

Kaan YıldızgözRegional Projects Manager &

Turkey Manager

Regional Public Transport Seminar

Contracting, Financing and Corporate Management

in public transport

13 October 2011Skopje, Republic of Macedonia

Page 34: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Advantage Card 75 mio USD’ye

HSBC’ye satıldı

Page 35: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

The Economist, 6 January 2005:

Frequent flyer miles – In terminal decline?

Page 36: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

Loyalty Programmes

Page 37: Innovative ways of Financing Public Transportation: Best Practices from Different Cities Kaan Yıldızgöz Regional Projects Manager & Turkey Manager Regional

SEGMENTATION