TBLI EUROPE 2015 - Sustainable Transport Infrastructure - Beat Mueller
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Transcript of TBLI EUROPE 2015 - Sustainable Transport Infrastructure - Beat Mueller
ENHANCING FUNDING IN PUBLIC TRANSPORT
Beat Mueller Director International Markets, PostAuto Schweiz, Switzerland
Chair of the UITP Transport Economics Commission International Association of Public Transport (UITP)
20 November 2015 TBLI Conference, Zurich (Switzerland)
UITP
OVERVIEW OF PUBLIC TRANSPORT
Market organizations: 1. Local public monopoly: historical model 2. Open market: open entry market found mostly in UK and developing
countries or for commercial services 3. Concessions through competitive tendering or direct award:
upcoming current trend applicable in most EU cities
Europe works under the PSO 1370/2007 regulation which provides the framework where service provision, tendering procedures and public contributions are well defined, notably:
• Separation between planning authority and operator • Transparent contract between both • Public contributions for clearly defined services • Multi-year certainty, but maximum up 10 years contracts allowed
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State and politics
Authorities Operator Users Citizens
Provide regulation, framework and strategy
Define mobility strategies
Delivers services
End users of mobility services
Provides acceptability of strategies and direct beneficiaries of
UITP
OVERVIEW OF OPEX AND CAPEX
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Taxes / Budget
Earmarking
Commercial revenues
Administrative
TechnologySoft loans, grants, tax
credits
Debt
Maintenance
Operations
Capital expenditures (CAPEX)
Operating expenditure (OPEX)
User fees
Infrastructure (greenfield
and brownfield)
EquityDebt Service
UITP
FARES AND COMMERCIAL REVENUES
Fare revenues: ➢ Reconciling commercial
and social objectives ➢ Fare regulation and
adjustment ➢ Revenue Management
Commercial Revenues: ➢ Covers between 5-7% of
revenues (EU) and 20-25% in Asia
➢ Commercialisation of assets and know-how
➢ Emerging branding and commercial strategies
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UITP
THE LIFESTYLE BUSSINESS IN PT
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Life-style business for 17m daily passengers:
➢ Advertising ➢ Retail: ‘Ekinaka’ (in-station)
shopping zone ✓ 25 Locals ✓ Luxury or every day products
➢ Shopping centers, office buildings, Hotels
➢ Regional revitalisation: creating links with local communities (childcare facilities and local products)
Ratio of non-transportation revenues is 40%
JR East seeks to ensure that capital investments target transport service and station quality harnessing synergies between transport and non-transport activities.
UITP
TRANSPORT FOR LONDON COMMERCIAL STRATEGY
Identified opportunities to grow non-fare incomes from 1.9bn GBP to 4.5bn GBP (2.6bn EUR to 6.2bn EUR) over the next 10 years.
Objective: reinvesting commercial assets while reducing public public funding (grants and loans).
Activities envisioned: ❖ Property partnership to generate 2.7bn GBP creating
9,000 residential units next 10y ❖ Enhance commercial and retail activities ❖ Develop digital hub (Old street)
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UITP
ENHANCING LOCAL REVENUES FOR PUBLIC TRANSPORT
Raising funding tools at the local level is becoming increasingly paramount for the (re)investment of infrastructures.
1. Increased calls for devolution enabling the active participation of direct or indirect beneficiaries (Europe and US)
2. New trends focusing on parking policies and payroll taxes have become of increasing interest
3. Interest in including indirect beneficiaries in the contributions for transport infrastructure
4. Much attention is now given to the synergies between land development and transport
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UITP
TOLL RING IN OSLO
The new financing projects in greater Oslo are designed to improve road and public transport investments.
Oslo Package III (2008-2030): the toll ring will be the main source of financing: ❖ Total costs are estimated at 7bn EUR,
with 5.3bn EUR generated by the road toll.
❖ In 2011 around 255 million EUR were collected to transport projects in the region.
❖ Around 60% of the income from the road toll is reserved for improving infrastructure rolling stock, operating public transport.
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UITP
WORKPLACE PARKING LEVY
Workplace Parking Levies originated in Australia (Sydney, Perth and Melbourne).
In Nottingham it was passed ‘with the aim to offer realistic alternatives to the use of private cars by delivering high quality sustainable public transport’
Benefiters:
❖ 2 Nottingham Tram Routes, totalling 17km and extending the existing tram network, with WPL meeting 34% of the cost.
❖ the Nottingham railway station hub redevelopment project – due for completion 2014,
❖ Acquisition of the 'Link' bus network (60 City Council owned buses)and 'green' bus trials using ethanol, hybrid, electric power.
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UITP
LAND VALUE FOR PUBLIC TRANSPORT
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“London has the densest network of stations and services, with 94% of properties within 1.5km of a station, compared with 72% in Greater Glasgow and 69% in Greater Manchester.” (Nationwide 2014)
Land value capture consist of an aggregation of tools, where the most popular are:
! Betterment taxes (London) à Tax Increment Finance (Chicago) à Joint Development (Copenhagen)
UITP
BUSINESS CONTRIBUTION IN LONDON
Crossrail 1: A special increase in business property tax levied since 2011 for the next 24 years on all businesses in Greater London. This is projected to create a fresh revenue stream of £4.1bn of a total of £16bn for the new line.
The estimated supplement is 2p per £1of rateable value, exempting the businesses with a rateable value of £50,000 or less.
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A betterment tax is a tax on the land value added by public investments. It targets beneficiaries of improved accessibility, lower congestion and lower transport costs due to public investments.
UITP
TORONTO’S INVESTMENT STRATEGY
The 2013 Big Move strategy, is 25 year integrated mobility plan. The infrastructure changes expected have been estimated at $16 billion CAD worth of transit expansion.
4 revenue potential tools, were selected which are expected to raise 2bn CAD annually:
1. Harmonized sales tax, 2. Fuel tax, 3. Business parking levy and 4. Development charges levies,
The selected sample of tools would provide GTHA with a stable funding package.
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WHAT IS RESILIENCE?
There is no silver bullet, in a context of constrained available public funding, it is required:
➢ Cost effective service delivery ➢ Fares which reflect the quality expected by customers ➢ Development of other commercial revenue ➢ Creation of earmarking funding sources from indirect
beneficiaries
Ensuring a financially sound system enabling the longevity of the system and its capacity to resist to external shocks.