Adv Alma Nel

Making cities more competitive: The Economic Case for Public Transport

At the

Month of Transport Celebrations

School of Tourism and Hospitality, University of JohannesburgBunting Road Campus

Auckland Park

1 October 2015

Public transport emerged out of the need for commuters to get from one place toanother for social and economic reasons.

In order to avoid disruptions to economic activity these days, while cars dominateour roads, effective and efficient public transport is critical for getting the workforceto and from work on time.

South Africa faces significant public transport challenges. One of the challenges isthe effects on the economy and transport availability by one of apartheid’s legaciesof urban sprawl in our cities and the fact that the road systems due to this, stillfavours use by private motor vehicles.

Public transport and its economic effects

According to the 20 Year Review: South Africa 1994 to 2014, providing effectivepublic transport systems may be the single most important intervention insupporting environmental, economic and social sustainability.

By making the economic case for public transport, it shows that public transport isthe lifeblood of a city economy and you cannot have a smart city withouthighlighting the important role for public transport. Investment in publictransportation is crucial to improving the quality of life and economic vitality of ourcities.

Effective, efficient, accessible and affordable public transport creates jobs, providesaccess to jobs and supports jobs in many other industry sectors helping to stimulateeconomic growth.

Public transport and its economic effects

Transportation is a part of a complex set of systems which are inter-related and inter-dependent for their efficient functioning; transport, land use, economic development,ecological cycle, formation of a healthy society and infrastructural development are all inter-dependant processes.

Planning scholar Daniel Chatman of the University of California at Berkeley has been studyingthe effects of transport on agglomeration. In their paper “Urban Studies”, Chatman andfellow planner Robert Noland of Rutgers University use concrete numbers to make the casethat transit produces agglomeration based on data from selected American Cities. They reportthat this hidden economic value of transit could be worth anywhere from $1.5 million to$1.8billion a year, depending on the size of the city. And the bigger the city, they find, thebigger the agglomeration benefit of expanding transit simply because they have more peoplesharing the transit infrastructure. On average, across all the metro areas in the study,expanding transit service produced an economic benefit via agglomeration of roughly $45million a year.

Looking at this study, could we argue that transport officials now have a much strongerargument for using taxpayer money to improve public transportation service?

Public transport and its economic effects

In theory, public investments in mass transit can make urban economies more efficient byenhancing employers’ access to a larger labour pool at lower transport costs.

Public transportation services are important in many ways. They provide mobility, can shapeland use and development patterns, generate jobs and enable economic growth, andsupport public policies regarding energy use, air quality and carbon emissions.

Public transport and its economic effects

When transport systems areefficient, they provide socio-economic opportunities andbenefits that result in positivemultiplier effects such as betteraccessibility to markets,employment and additionalinvestments.

When transport systems are deficient in terms of capacity orreliability, they can have an economic cost such as reduced ormissed opportunities.

Public transport and its economic effects

The National Development Plan (NDP) proposes a number of strategic focus areas in transportinfrastructure, which have to be addressed to achieve the ideals outlined for 2030.These areas are:• prioritisation of transport solutions that are safe, affordable and effective options;• a focus on transport as an entire network as opposed to individual transportation modes;• a move to finding ways to become less dependent on transportation by improving spatial

planning in cities so that people can live closer to areas of employment;• convincing South Africans to increase the use of public transport and thereby lower

carbon-intensive transportation mode usage, which will reduce the environmental, socialand economic costs associated with transport.

The NDP says this priority should be continued as well as increasing investment in publictransport, which has already been growing at 15% a year since 2006. The bus rapid transitsystems implemented around the country are cited in the plan as models of the ability toprovide high-quality mass transit systems.

Across all metros there has been a shift towards developing sustainable and reliableinfrastructures that are designed to appeal to commuters of all economic backgrounds, fromCape Town to Durban to Johannesburg, public transport is undergoing a transformation.

The South African Context

During the course of 2011, MEC Vadi had the following to say about publictransport in Gauteng:

“For the first time, the cost of public transport has become one of the top threeitems of concern for Gautengers.”

“Transport has become a service delivery issue like education and health. It affectsmillions of people in the province. We are ultimately a service delivery departmentand have to meet expectations and the growing demands for a high quality publictransport system.”

“My job is to lay out road and transport infrastructure in anticipation of therealisation of this vision. Cities develop along the transportation routes that servethem. We have to visualise what is going to happen and how transport wouldstimulate economic development. We therefore need to be pro-active andforward-thinking in our vision.”

The Gauteng Context

Transport is a core component of urban living, central to the economy and people.Years of under-investment in public transport infrastructure under apartheid left alegacy of ineffectiveness and reliance on private transport.

Throughout Gauteng the following are defining features of our transport systems:the majority of residents travel by bus, public rail or minibus taxis; and there is asteady increase in residents who rely entirely on private car use.

Associated with the above features is the public perception that most publictransport is not safe and reliable. This conversely leads to the reality that thereliance on cars has created widespread congestion.

The Gauteng Context

Gauteng is fighting against and continues to struggle to overcome the apartheidlegacy. Massive strides towards this came with the introduction of Bus RapidTransit (BRT) systems such as Rea Vaya, A Re Yeng and the coming Harambi, andthe Gautrain high speed rail link between Joburg and Pretoria.

Increasing transport costs also present a problem. However, the introduction ofBRT and the Gautrain provides opportunities and indicates that transport inGauteng is developing into a system of high-speed connecting hubs with a strongsupport base of feeder services.

We still support Bus nodes through subsidisation. Not forgetting the continueddiscussions with the Taxi Operators and Associations to further enhance ourtransport system, specifically through the current discussions towardsincorporation of this mode into the public transport operations grant.

The Gauteng Context

Gautrain complements and supplements the other public transport modes in Gauteng, allowingour citizens a safe, efficient and reliable solution.

With the expected global increase in urban populations (increase by 27% over the next 30 years- UITP, Ticket to the Future), and the rapid urbanisation rates in Africa, the provision of a safeand secure rail system like Gautrain in a fast developing Gauteng Province, becomes a toppriority.

The Gautrain Feasibility Study found that on average it is five to ten times safer to travel by railtransport, compared to road transport. Poor transport infrastructure marginalises the poor andlimits certain members of society to move freely, and makes all travel less safe. Gautrain bringsindependence to all, especially to women, learners and people with disabilities. It thereforeassists to lower the socio-economic cost of travel to society.

Urban areas contribute towards economic development and wealth creation, but they cannot perform efficiently without robust public transport networks and services. Gautrain brings economic benefits in that efficient public transport and lower road traffic congestion increase productivity and the economic viability in Gauteng and it decreases the out of pocket cost of transport to the community.

The Gauteng Context

Investment in public transport can be expensive, but the benefits are much greater and projects like the Gautrain help towards achieving long-term economic sustainability.

These secondary factors enhancing the economy include:•Reduced travelling costs;•Reduced need for building vast car parks on valuable land in the city centres that could have otherwise been used as highly priced office or retail space;•Reduced reliance on rapidly decreasing oil supplies;•Reduced reliance on imported fuels;•Job creation;•Increased property value in and around the core business areas and adjacent to public transport stations;•Improved integration between various sectors;•Community development and upliftment; and•Improved living standards.

The Gauteng Context

In addition to reducing costs caused by congestion, public transport creates jobsand supports local economies. According to a study by The American PublicTransportation Association, for every R80 million invested in capital projects forpublic transport, more than 300 jobs are created with a R240 million gain inbusiness. In Europe, public transport creates two to three times more employmentopportunities per passenger kilometre than private transport (Ticket to the Future,UITP, 2009).

Traffic congestion and gridlock accompanied rapid economic growth and thedevelopment of the motor manufacturing industry. Road infrastructure has comeunder immense pressure due to competition for road space from industrial, publicand private road users. Access to economic opportunities is adversely affected bytraffic congestion, as business activities move from inner cities to the outskirts,further increasing the cost of fuel and transportation for all South Africans.

Conclusion

The transformation of public transport requires consistent inter-governmentcooperation and coordination. This is a daunting task and will require the setting ofclear public transport indicators such as reduced travel times, reduced costs, toreduce the percentage of household income spent on transport and thedetermination by the relevant transport authorities of the nature and size ofvehicles to be used, including regular renewal of the public transport fleet andaccess to transport.

Government has committed towards providing South Africans with safe, accessiblepublic transport. This has been emphasised at national, provincial and municipallevel as an aspect that requires immediate attention.

Conclusion

In order to ensure their own economic prosperity, it is up to thecommuter to take advantage of these systems and support their growth,and to push for a future that doesn't see congested roads, bad traffic andmore unnecessary road fatalities.

Conclusion