stcp - costaebertstanislau - presentation

Departamento de Engenharia Civil (DEC) Doctoral Programe Transportation SystemsDepartamento de Engenharia Civil (DEC) - CITTA

EWGT201316th Meeting of the EURO Working Group on TransportationSession C3. Economic Appraisal

Linking managerial decisions and performance in urban public transport: the case of Porto

lvaroCosta,[email protected],[email protected],[email protected]


PublicTransport,ManagementandDecisionMaking PublicTransportandProduction ResearchRational BenchmarkingMethods

STCP DEAResults DecisionAnalysisandPerformanceLink

Conclusion

Part1:Introduction

EWGT2013 -16th Meeting of the EURO Working Group on Transportation4 September 2013 Session C3. Economic Appraisal COSTA, EBERT, STANISLAU (2013): Linking managerial decisions and performance in urban public transport: the case of Porto

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Part2:CaseStudy


Introduction


PublicTransportshouldallowforhighlevelsofmobilityasameaningfulalternativetocostintense,congestionproneprivatetransport.TheadequatefunctioningofPublicTransportcontributesmainlytoacity'squalityoflife!

PublicTransportManagementfacessomerestrictions:growing/decreasingdemand,soaringenergycosts,environmentalrestrictions,financialshortagesinpublicsector,EUobligations,changingregulatoryenvironment,...

ManagerialChallengeHowtoactinnovativeandentrepreneuriallysoundinthiseconomicenvironment(whilefocusingontheproduct)?

Managersdrivingwheel:setofdecisions(decisiontoolbox)!

PublicTransportandManagement


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Decisionshaveacertainimpactonthecompany'sperformance Performanceanalysisrequirestothinkproductionterms

DecisionToolBoxDecisionCategory Specification

Networkcreation,alterationoreliminationoflines//additionalservices//additionalmodes //mergersandlinkedtransportsystems//...

Financialchangesandadjustmentsinthepricingpolicy//fares//revenuesbyadvertisement//...

Personnel numberofstaff//useofsocialprograms//totalworkhours //training//Fleet numberandcomposition//technology//maintenance//...

Schedule alterationinthefrequencyofroutes//schedulingofroutes//...

Servicetechnical:newequipmentonvehiclesoperated//ontimeinformation//...operational:operationalandcommercialIT:provision,processingandanalysisofoperationalinformation


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Relationbetweentheresourcesused andthequantities/qualityofserviceproduced Keyconcepts:Productivity,Efficiency,Effectiveness

ProductionProcessinPublicTransport

Figure 1 Simplified public transport process


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Status quo: Lack of knowledge on the relation between management decisions andeconomic performance of urban public transport systems

Unknown: To which extend (quantitatively, temporally ) do management decisionsaffect performance over time? Decisions need time (timelag) to unfold, most studiesfocus on a rather short time frame!

Goal: extend/use the concepts of productivity, efficiency and effectiveness byincluding the decision framework (in economic, technical or legal terms ) of publictransport companies

Benefit: an economic preassessment/model/theory on the effects of strategiccompany choices would be helpful for decision makers (company level, political level)

ResearchRational


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BenchmarkingMethods

Figure 2 Overview on benchmarking measures


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CaseStudy


Founded 1946; 83 routes (including 11 late nightonly routes; 4 tram routes);472 buses; 8 trams; daily ridership: 370.000

Extensive records of operational activity and organisational management datawas available for 1946 to 2004 Approach: 59 years timeseries; DEA (BCC,inputoriented), singlecity

Step 1: DEA1 (Performance Analysis)

Step 2: Decision Analysis

Step 3: DecisionPerformance Link

1input: staff, fleet; output: vehiclekm (efficiency) or number of passengers (effectiveness)

CaseStudy:SociedadedeTransportesColectivosdoPorto,S.A.(STCP)

LiteratureReview


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STCP:DEA Results

LiteratureReview

Year Efficiency Effectiveness Year Efficiency Effectiveness Year Efficiency Effectiveness1946 1 1 1966 0.942591185 0.827696081 1986 0.718867 0.9288663571947 1 1 1967 0.779821362 0.655694603 1987 0.7518898 11948 0.923971448 0.910551658 1968 0.814996625 0.678896692 1988 0.7400359 0.9160464141949 0.932342844 0.889129277 1969 0.817450728 0.698055875 1989 0.7283213 0.9605130011950 0.920778131 0.883208584 1970 0.815804829 0.679568872 1990 0.7433105 0.9585790671951 0.93632465 0.878598932 1971 0.825052636 0.647463313 1991 0.7607714 0.9227026581952 0.968532954 0.900520453 1972 0.821495587 0.670191241 1992 0.7870174 0.9172865071953 0.959128148 0.882177624 1973 0.801422582 0.696953043 1993 0.8092022 0.9032640041954 0.958369884 0.88785922 1974 0.763198815 0.695076763 1994 0.8364091 0.8829206141955 0.94487776 0.890757227 1975 0.751625014 0.675469404 1995 0.9108853 0.9255921091956 1 0.908364894 1976 0.7150455 0.703747429 1996 0.9464738 0.9360195281957 0.963512247 0.879134788 1977 0.6076476 0.64909782 1997 0.9677963 0.9365489721958 1 0.915954158 1978 0.6323497 0.727308308 1998 1 0.9575272431959 1 0.868937242 1979 0.6703846 0.873649545 1999 0.9081547 0.9335862761960 0.991112227 0.842000714 1980 0.7028293 0.991169509 2000 0.8897139 0.9232575361961 0.999815536 0.8458549 1981 0.6977549 0.996433862 2001 1 0.9106436631962 0.989713751 0.835047681 1982 0.7131688 1 2002 0.9295056 0.9463321751963 1 0.8507314 1983 0.7453633 0.988262913 2003 0.9439455 0.9233272111964 0.979120951 0.834887066 1984 0.7209929 0.943667001 2004 1 11965 1 0.868144018 1985 0.7337879 0.973077436


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No.ofDecisionsp.a.(06) Efficiency Effectiveness Frontier PAXp.a. Vehiclesp.a.

STCP:EfficiencyandEffectiveness

LiteratureReview

First half: more efficient than

effective

Second half: more effective than efficient

Last 15 years: convergence

1966 -76: massive drops in both values


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Figure 3 Performance STCP 11946-2004


Efficiency/EffectivenessMatrixandDecisionAnalysis

LiteratureReview

Figure 5 Decision count and shares1946-2004Figure 4 Efficiency-Effectiveness Matrix 1946-2004

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Network FincancialPersonnel Fleet Schedule Service(tec)

Service(op)

Service(IT)

early stage = network decision:

product creation

later stage = service decision:

service creation


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DecisionAnalysis

LiteratureReview

Category Observations,MajorDecisions&Comments

Network

focusondeveloping,constructingandimprovingthelinesandroutesduring19501965;Portoconcessions 1956:addingseveralperipheralzones;longbreakofalmost20years(1980 1998)waslatercompensatedbynetworkchanges(alteration,creationofnewlines,introductionofadditionalservices,e.g.touristbus,etc.)

STRATEGY: create,experiment,exploitandobserve,andthenalterorupdateaccordingtonewlyemergedrequirements

Fleetevenlydistributedoverobserved period,indirectindicatorofoperationsdevelopmentanddemandcapacitygrowthincreasingthenumberofoperatedvehiclesandfleetrenewal

STRATEGY: createefficientandwellmaintainedfleetinordertoprovideefficientservices

Schedule intenseinthebeginningofthecompanysoperations(years1946 1964);almostabsentinthesecondhalfoftheyearsinvestigated

Financial extensivelydevelopedinthesecondhalf(startingfrom1966),changesandrevisionsofthefaresystem(1981 1985),interrelatedwiththeexternaleconomic(social)context

Personnel evendistributionthroughouttheentireperiod;socialbenefits,training:1952,19601963;singleagentpolicy1970to1986;staffreduction1988;

Servicing 19501965:relatedtotransportinfrastructure;1989 2004:relatedtomodernizationoftechnicalinfrastructure;moreintenseinthelast1015years(duetoinnovativeapplications)

Context oilpricesincreaseandenergycrises,socialrevolution,subsidizingpolicy,organizationalchangesinthesector,competition(MetrodoPorto)


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DecisionPerformanceLinkandTimeLags

LiteratureReview

19461950:STCPwasmanagedbythecitycouncil;mostlynetworkdecisions 10%effectiveness

19511965:reorganisationofnetworkforelectrictrams,revisionofthefaresystem +/ 2%efficiencychangesathighlevels,effectivenessdecreasing19681975:effectsfromgrowthsupportivedecisions(increaseofcapacity,changesinfaresystem,personnelbenefitsincrease)wereabsorbedbyexternalshocks(deficiencyfleet,completeredesigningofservices,oilpriceincreasefollowedbyanenergycrisis,andthesocialrevolutionof1974)

lowperformanceofbothindicators

1976:implementationofsocialfareseffectivenessincreasedupto100%,efficiencydecreased(timelagof4years)

1979:implementationofsingleagentpolicy(majordecision) efficiencyincreasedupto100%(timelagofupto10years)early80s:ceasingofelectrictramsoperationandextensionofthebusnetwork effectiveness+5%

90s:customerorienteddecisions(newtickets),recoveringofconcessions effectiveness+3%(timelag5years)

early00s:busleasingagreement efficiencyincreasedupto100%(timelag1year)


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Dynamics: although the efficiency and effectiveness values display some differences, thescores do not move in opposing directions

Performance:major decisions (increase of social benefits and privileges, implementation of asingle agent policy, operational fleet leasing )and external factors (social revolution, oilcrisis) were identified

Timelags: on average medium term periods from 2 to 4 years (exceptionally up to 10 years)

Further research fields: empirical proof of timelags; Extension of case studies, Existence ofrules (e.g. decision A leads averagely to B % efficiency) in public transport management;Are the decision patterns comparable among public transport companies?; Identification ofperformance types among PT companies (e.g. rather efficiency oriented, effectivenessoriented); Costs of performance (link to investments); Disturbances by external factors as acause for weak performance?; Additional mode appears effects (Metro do Porto?)....

PreliminarConclusions

LiteratureReview


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Futurecasestudies(planned)

ProposedMethodology

Country Portugal Spain Germany

City,mode Porto,STCP Lisbon,Metro Lisbon,Carris Madrid,Metro Madrid,EMT Barcelona,TMB Berlin,BVG Dresden,DVB

Porto,Metro competitors,citybasedcasestudysamemode,

Portuguese case study samemode,crosscity,Iberiancasestudy

partiallysamemodeIberiancasestudy

partiallysamemodeEuropeancasestudy

Porto,STCP x samemode,crosscityPortuguesecasestudy samemode,crosscityIberiancasestudy




Lisbon,Metro x competitors,citybasedcasestudysamemode,crosscity,Iberiancasestudy



Lisbon,Carris x samemode,crosscity,IberiancasestudypartiallysamemodeIberiancasestudy



Madrid,Metro x competitors,citybasedcasestudypartiallysamemodeIberiancasestudy


Madrid,EMT x partiallysamemodeIberiancasestudypartiallysamemodeEuropeancasestudy


Barcelona,TMB xsameoperationalform(oneentity)European

casestudy

sameoperationalform(oneentity)

Europeancasestudy

Berlin,BVG xsameoperationalform(oneentity)/citybasecasestudy


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THANK YOU FOR YOUR ATTENTION !

stcp - costaebertstanislau - presentation

Documents

engenharia civil

urban public transport

managerial decisions

economic appraisal costa

case of porto418departamento

case of porto518departamento

case of porto218part2

cittaewgt201316th meeting