Summary of doctoral thesis: Research on management model of public transport in Viet Nam cities

Nội dung Text: Summary of doctoral thesis: Research on management model of public transport in Viet Nam cities MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF TRANSPORT AND COMMUNICATIONS VU HONG TRUONG RESEARCH ON MANAGEMENT MODEL OF PUBLIC TRANSPORT IN VIETNAM CITIES Study Field: Transport Organization and Management Code: 62.84.01.03 SUMMARY OF Doctoral THESIS HANOI 2013Training Institution: University of Transport and Communications Supervisor: PROFESSOR. Nghiêm Văn Dĩnh (Dr.Sc) Examination Committee Member 1: ...................................................... ................................................................................. ........................... Examination Committee Member 2: ...................................................... ................................................................................. ........................... Examination Committee Member 3: ...................................................... ................................................................................. ........................... The thesis is defended in front of Examination Committee at University Level In : ..................................................... At ....... , ..... ..... …….. 2013 The thesis can be found in the Information Center of Hanoi University of Transport and Communications.LIST OF AUTHOR’S RESEARCHES PUBLISHED 1 Hans Orn, Vu Hong Truong: Urban transport changes in a Reform Economy: The case of Hanoi; Asia pacific Journal of Transport Volume 11996. 2 Vu Hong Truong: Development of public bus in Hanoi – the solution to minimize the negative impacts to environment; Green Road Journal – June 1999 3 Vu Hong Truong: Urbanization – Risks and Challenges on Urban Transport in Vietnam; Vietnam Road and Bridge Journal – June 1999. 4 Vu Hong Truong: Lesson learnt regarding success and failure of public transport in regional cities; Transport and Communication Journal – September 1999. 5 Vu Hong Truong: Model for rationalizing traffic vehicle structure in big cities in Vietnam; Transport and Communication Journal – April 2001 6 Vu Hong Truong: Additional fee for motorcycles in Hanoi – in the scientific and realistic view point; Transport and Communication Journal – October 2001 7 Vu Hong Truong: Lesson learnt and solutions for public bus development in Hanoi Capital; Transport and Communication Journal – December 2011. 8 Vu Hong Truong: Urban Transport development orients Public transport – the important factor of urban sustainable development; Transport and communication Journal – August 2012. 9 Vu Hong Truong: Management model for public passenger transport in the world and necessary issues for Vietnam; Transport and Communication Journal – September 2012. 10 Bui Xuan Dung, Nguyen Van Thu, Vu Hong Truong,…: Proposal for development and management of public passenger transport in Hanoi during period 19962000. CityGrade Science Study – Hanoi, 1996. 11 Bui Xuan Dung, Nguyen Van Thu, Vu Hong Truong, ... : Develop the organizational and management model for taxi service in Hanoi – Hanoi Department of Public Transport, 1998. 12 Nghiem Van Dinh, Nguyen Van Thu, Tu Sy Sua, Vu Hong Truong: Strategies and development model for urban transport in the big cities in Vietnam orients the industrialization and modernization. Government – grade Study code KHCN 10 02, MOT 2000. 13 Vu Hong Truong: Determine the main solutions for rationalizing traffic vehicle structure in large scale urban areas in Vietnam. Ministry – Grade Scientific Study – Hanoi 2001.

UNIVERSITY OF TRANSPORT AND COMMUNICATIONS

HANOI - 2013

Training Institution: University of Transport and Communications

Supervisor: PROFESSOR Nghiêm Văn Dĩnh (Dr.Sc)

Examination Committee Member 1:

Examination Committee Member 2:

Examination Committee Member 3:

The thesis is defended in front of Examination Committee at University Level In :

At , …… 2013

The thesis can be found in the Information Center of Hanoi University of

Transport and Communications

1- Hans Orn, Vu Hong Truong: Urban transport changes in a Reform Economy: The case of Hanoi; Asia pacific Journal of Transport - Volume 1/1996

2- Vu Hong Truong: Development of public bus in Hanoi – the solution to minimize the negative impacts to environment; Green Road Journal – June 1999 3- Vu Hong Truong: Urbanization – Risks and Challenges on Urban Transport in Vietnam; Vietnam Road and Bridge Journal – June 1999

4- Vu Hong Truong: Lesson learnt regarding success and failure of public transport in regional cities; Transport and Communication Journal – September

1999

5- Vu Hong Truong: Model for rationalizing traffic vehicle structure in big cities

in Vietnam; Transport and Communication Journal – April 2001

6- Vu Hong Truong: Additional fee for motorcycles in Hanoi – in the scientific and realistic view point; Transport and Communication Journal – October 2001 7- Vu Hong Truong: Lesson learnt and solutions for public bus development in Hanoi Capital; Transport and Communication Journal – December 2011

8- Vu Hong Truong: Urban Transport development orients Public transport – the important factor of urban sustainable development; Transport and communication Journal – August 2012

9- Vu Hong Truong: Management model for public passenger transport in the world and necessary issues for Vietnam; Transport and Communication Journal – September 2012

10- Bui Xuan Dung, Nguyen Van Thu, Vu Hong Truong,…: Proposal for development and management of public passenger transport in Hanoi during period 1996-2000 City-Grade Science Study – Hanoi, 1996

11- Bui Xuan Dung, Nguyen Van Thu, Vu Hong Truong, : Develop the organizational and management model for taxi service in Hanoi – Hanoi Department of Public Transport, 1998

12- Nghiem Van Dinh, Nguyen Van Thu, Tu Sy Sua, Vu Hong Truong: Strategies and development model for urban transport in the big cities in Vietnam orients the industrialization and modernization Government – grade Study code KHCN 10-

02, MOT 2000

13- Vu Hong Truong: Determine the main solutions for rationalizing traffic

vehicle structure in large scale urban areas in Vietnam Ministry – Grade Scientific

Study – Hanoi 2001

INTRODUCTION

1- The need for this study

After two decades of innovation, Vietnam has obtained a number of great achievements in socio-economic development The average economic growth rate during period of 1990-2011 is approximately 7.6% per year, which leads Vietnam to become the developing business destination and attracting foreign investment and reaching the social development goals

The rapid economic growth and urbanization lead to the boom of traffic demand in urban areas This is the valuable opportunity as well as threat for the development of urban transport system On the basis of recognizing such issues, right from the beginning of 1990s, the Government and big cities’ authority have been making big efforts to establish appropriate tools in order to solve issues related with urban traffic,

in which public transport development is considered as the key solution Before 2000, bus service only existed in Hanoi and Ho Chi Minh City, but currently bus service is developed in almost big cities in Vietnam

In Hanoi, in comparison with 2001, the number of buses has been increased by 4 times, and the number of bus passengers increased by 30 times from 15.2 million in

2001 to 445 million in 2011 which is similar to the growth rate in Ho Chi Minh City Currently, the public transport management models have been established in Ha Noi and Ho Chi Minh City with a public transport management and operation center under DOTs to implement the function of state management while the bus transport enterprises are responsible for operating and supplying bus services

However, the public transport management and operation centers do not really have sufficient ability to prepare and implement the master plan (managing big investment projects) due to lack of legal authority and practical capacity

Currently, in two big cities, development projects of mass public transport are implemented without any agency having sufficient mandate for managing mass public transport development The development of such transport mode will easily lead to the differences and risks of inconsistency as well as lack of connection among public transport routes in the same network and among different modes

In summary, the actual situation and development of public transport requires a sufficient and systematic study in order to construct a management model for public transport in Vietnam cities applicable in different development periods

2- Purposes of the study

Systematizing the basement for state management in urban public transport, in which development strategies, functions, tasks, and forms of management model are

deeply analyzed and systematized Based on arguments applied to evaluate the actualities and analyze the state management models for public transport in Vietnam cities, the research clarifies which contents are necessary to be further studied

Constructing and proposing state management model in public transport applicable for Vietnam cities in corresponding with condition and development of urban areas in Vietnam up to 2020, and oriented towards 2030

3- Objects and scope of the study

The objects of study are: urban public transport system, focusing in state management issues for public transport such as definition and roles of public transport

in urban areas, economic technical characteristics of public transport modes, state management for urban public transport, forms of state management model for urban public transport

Scope of study: the public transport modes such as bus, metro, BRT, etc The enterprise management model is not studied but only the state management model in public transport is studied for certain range of Vietnam cities (urban areas grade III and upper) The main cities investigated are Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, Can Tho and other cities grade III (cities belong provinces) The data investigated and analyzed in the study are mainly in 2011 and previous years, a few of data has been updated in 2012 The proposal of solutions is prepared for the period to

2020, oriented towards 2030

4- Scientific and realistic contribution of the study

Scientific contribution: to systematize the bases of state management model in

urban public transport and clarify the significant issues raising to Vietnam cities; to analyze and clarify the socio-economic characteristics and nature of traffic demand, vehicles, infrastructure, etc in Vietnam cities which are basis of constructing and improving the state management model for public transport in corresponding for each development period until 2020, oriented towards 2030

Realistic contribution: to show disadvantages and inadequate issues in current

management model of public transport in Vietnam cities; to propose recommendation

to help cities’ authority in application of management model based on the appropriation with development level, public vehicles, and real conditions in each period of each urban area, firstly in Hanoi and Ho Chi Minh City and then in other cities in Vietnam

OVERVIEW OF RESEARCH QUESTIONS

a- Analysis and assessment of Vietnam researches:

Recently, the researches in public transport management in our country are mostly scientific studies such as: Scientific and Technology Program KC10-12 and Scientific and Technology Program 10-02 of MOT coordinated by University of Transport and Communication Some projects financed by abroad organizations also mentioned urban public transport management issues Besides, there are some doctoral thesis studying Public transport However, there has been no research conducted to fully and comprehensively study the management model for public transport in Vietnam cities including all public transport modes

b- Researches in the world:

There are two major forms of management model in public transport including (i) centralization model: there is a state management agency with overall function which public transport is operated under the government control; (ii) decentralization model: the state management agency has the small size with certain several functions while the public transport services are operated in a competitive market It is necessary to review the researches’ results abroad, though it is impossible to apply full results in Vietnam due to the particular characteristics

c- Objectives of the study

Based on reviewing related research results at home and abroad, the study completes the theory as well as realistic basement for the state management model of public transport in Vietnam urban areas

The study aims at solving inadequate issues of management models which are currently applied in Vietnam as well as to propose the state management model for public transport applicable in Vietnam, including all of public transport modes and in corresponding with each category of urban areas until 2020, oriented towards 2030

d- Research methodology

In order to achieve proposed objectives, the methodology of dialectical materialism and historical materialism is applied to comprehensively and objectively analyze the issues In the principle of systematic and simulation approach to analyze, the nature and management of public transport are clarified By synthesis and modeling method, the argument of state management model in public transport is established based on Vietnam reality and pratice

e- Contents of the study

Beside the introduction and conclusion parts, the study report comprises of 3 chapters which are: - Chapter I: Foundation of state management model for urban public

transport; - Chapter II: Analysis and evaluation in management model of public transport in Vietnam cities; - Chapter III: Proposal of state management model for public transport in Vietnam cities

Chapter 1: FOUNDATION OF STATE MANAGEMENT MODEL FOR URBAN PUBLIC TRANSPORT

1.1 Urbanization and urbanization consequences

1.1.1 Overview of Urbanization

Urbanization is a process of works movement from the initial activities to more focused and centralized activities such as production industry, construction, transportation, recovery, financial service, socio-culture, science and technology,… It

is also defined as the process of works movement from agricultural activities to agricultural focused activities in appropriate areas, so-called urban areas

1.1.3 Urbanization and urban areas classification in Vietnam

According to current regulation, urban areas in Vietnam are cities, county towns and towns where population is more than 4.000, among which 65% is non-agricultural labors and classified into 6 urban categories (Special urban area, category I, II, III, IV and V) based on the urban function, population, area, and other socio – economic

conditions, especial criteria regarding urban infrastructure The urban areas from category III are named as “City”

1.2 Overview of Urban Transport and Public Transport

1.2.1 Urban transport and the roles of urban transport in sustainable urban development

The “Sustainable development” mentioned in the study is: “the development to

meet human demand at present without influencing the capacity to meet the demand of future generation”

Sustainable urban transport development is: Establishing a transport system

which plays a good role in supporting and promoting the urban economic development while minimizing un-recycled resources usage; Assuring transport rights and fulfilling transport demand of people at reasonable social expenses; Developing without environmental pollution and with the assurance of environment protection

Roles of urban transport in sustainable urban development: An urban area can

only sustainably develop with a basement of a sustainable urban transport system, and vice versa, a sustainable urban transport system has to be located in a sustainable urban area Developing an urban transport system with the orientation towards public transport is an important element in order to solve the above-mentioned issues

1.2.2 Urban public transport system

Public transport Definition: is a public transport service by different transport

modes in order to meet traffic demands of urban, suburban and regional residents According to this criterion, taxi and pedicab services are modes of public transport However, in classification of public transport modes, there are 2 categories such as transport mode based on operational chart (such as bus, metro, etc) and not based on operational chart

Private Transport: is an option in which vehicle is directly driven by its owner in

order to serve personal traffic purpose such as personal cars, motorbikes and bicycles Components of public transport system are: (i) Vehicles; (ii) Infrastructure; (iii) Route network; (iv) Driver; (v) Operation Characteristics of public transport are considered in aspects of operation scale; vehicles, investment capital; operational costs; and investment feasibility

Roles of urban public transport:

- Development oriented toward public transport is the significant factor of sustainable urban development It is specified as follow: (i) Considering urban transport as an object of urban development plan and land use plan Taking mass public transport to be a spinal column for urban sustainable development; (ii) the public fleet planning must be ahead of transport infrastructure planning; (iii) encouraging the use of public vehicles as well as control the use and ownership of private vehicles, especially cars

- Public transport is the significant factor to save time for people’s traffic in the urban areas, and contributing into increasing social working productivity

- Public transport contributes in ensuring the safety and health for people

- Public transport contributes in urban environmental protection

- Public transport is the factor to ensure the social safeguard

1.3 Background for state management in urban public transport

1.3.1 Overview of state management in urban transport

The nature of state management in urban area is an intervention of Government in urban socio-economic development by authority in order to lead urban areas to become

the regional centers of economy, politics, culture, technology and international exchanges

State management in urban transport is shown in main following aspects:

Establishment and completion of field law system; Issuing policies; Construction investment planning; Infrastructure maintenance; Technical application and training; international cooperation, etc

1.3.2 State management in urban public transport

Main functions of state management in urban public transport:

- Orienting strategies of public transport development in corresponding with general transport development orientation

- Public transport development plan preparation must be ensured to be consistent and compatible with the master plan and transportation plan

- Creating an equalitarian business environment

- Regulating, supervising and handling violations

1.3.3 State management model in urban public transport

State management model definition: is an entity comprising of components which

have certain functions, rights and responsibilities, have interrelationship and be arranged according to certain phases and levels in order to implement management function for achieving proposed objectives

Management model classification:

By the level, management model may comprise of Government level, City/Provincial level, Department/District level, Division/ Ward level

By the function, management model comprises of Legislature (National Assembly), Executive bodies (Government, Ministries, People’s committee), Judiciary (people’s procuracy, courts of justice)

Forms of management model: In the world, at the local level, there are a number

of basic models including: council-based management model and centralist management model Theoretically, there may be a number of management models such as online management model, function-based management model, online function-based management model, online consultancy-based management model, etc

Principles and requirements in constructing the management model: (i)

Management model must serve actual demand with certain benefits; (ii) correspondence with the principles of social labor division; (iii) ensuring the consistency; (iv) appropriately dividing authority; (v) clearly determining scope of management; (vi) ensuring timely and exactly collection of information; (vii)

Management model must be in corresponding with characteristics and scope of managed objects

Factors affecting management model: Vision and macroscopic policies; Level of

government intervention on the market; Objectives, tasks and rights of agencies; Political institutions and socio-economic conditions, etc

Steps of constructing management model:

- Determine the overall goal at the macro level

- Define state and enterprise management functions

- Analyze managed objects (public transport system)

- Determine management tools

- Propose the model (location, name, operational mechanism, )

- Complete definition of tasks and functions

1.3.4 Effectiveness evaluation of state management model in urban public transport

As the new view of approach, it is necessary to evaluate the effectiveness of management model on both the joint responsibility of divisions as well as the entire system A good management model is the model which clearly shows functions and tasks but not overlap with other divisions’, divisions’ functions and tasks are clearly defined which clearly assign personal responsibilities, and the process of information collection and handling as well as decision making is efficiently and effectively implemented

Methods to effectiveness evaluation of urban public transport management:

- Statistic Analysis

- Analytical Hierarchy Process

- Expert interview method

- Cost Benefit Analysis

- Multi – Criteria Analysis, etc

Principles to effectiveness evaluation of urban public transport management:

- Evaluating the effectiveness of public transport on the viewpoint of system and general socio-economic efficiency by shadow price

- Ensuring the harmony of goal and objectives of each object involved in public transport system

- Ensuring the objectiveness of evaluation

- Evaluating by the viewpoint of development

Norms to evaluate the effectiveness of state management model in public transport

- Norms of evaluating the improvement in accessibility, service quality and capacity to meet people’s traffic demand

- Norms of evaluating the assurance of traffic safety

- Norms of evaluating the friendly effect to environment

- Norms of evaluating the uses of energy in public transport

- Norms of evaluating the improvement of investment efficiency and government subsidy in public transport and the improvement of urban economy

1.4 Lessons learnt in public transport management from the world

1.4.1 Public transport development policies

In the case of countries clearly defined objective in sustainable development, public transport is preferred although private transport is still developed This issue contributes in parallel development of public transport and private transport, creates a consistent and combined system of transport which mutually supports for each other but not mutually conflict

1.4.2 Intervention level of Government in the market

Recently, the general trend is gradually moving to competitive market in order to encourage the service providers to reduce expenses However, in the case of public transport development to reduce private transport, competitive business model may not

be the best option due to service quality is always considered to reduce business costs

1.4.3 Regulations for public transport management

The managed objects are mostly similar but the participation of management agencies may be different depended on the size and complication of public transport service Subsidy rates, services quality, service fares, level of synchronization in public transport are different among urban areas

1.4.4 Organizational Structure for public transport management

The public transport management models are mostly online-function based management models In some large urban areas, the public transport management agency also have the function of preparing the master plan as well as combination of urban transport modes

From the fact of development in the world, the study found out the basic reasons

of success or failure in urban transport development, such as (i) awareness shown in urban development policy; (ii) master plan; (iii) public transport development; and (iv) Government regulation role

Summary of Chapter 1:

In chapter 1, the study generally presented matters related to the public transport management model Starting from definitions of urban transport, public transport and

its roles in urban sustainable development; then systematizing the theories of public transport management and organizational model in management, methods to evaluate the effectiveness of management model; and finally, mentioning the lesson leant from success and failure in cities’ urban transport development around the world

Actually, there are many existing/existed management models, each model has certain advantages and disadvantages Based on the managerial objectives and specific condition, an appropriate model is selected

Chapter 2: ANALYSIS AND EVALUATION IN MANAGEMENT MODEL OF PUBLIC TRANSPORT IN VIETNAM CITIES

2.1 Current situation of public transport in Vietnam cities

2.1.1 Current situation of public transport in Hanoi Capital

In Hanoi, the public transport has been developed for more than 100 years It started when the electric bus system was constructed by French and then developed into 5 lines with 31.5 km of total length Electric bus routes became the urban development routes in Hanoi Until 1988, electric bus routes were gradually removed and then there has been only bus system in Hanoi

Bus system establishment and development history in Hanoi is divided into 4 periods as follows: Hanoi bus system before the Innovation period (before 1986) Crisis period of bus system (1986-1992); Rehabilitation period of bus system (1993-2001); and the Total Innovation Period of bus system (2002 up to now)

Development of bus service in Hanoi in the last 10 years:

- Bus service area has been extended with the more and more increasing of passengers: After 10 years (2001-2011), the number of bus routes is increased 2.1 times, the number of bus vehicles is increased 4.0 times and the number of bus passengers increased 30 times from 15.2 million in 2001 to 445 million in 2011

- Bus service positively contributes in decreasing traffic jam and ensuring traffic safety

- Capacity of bus operation has achieved high rate of effectiveness and been reaching the system limitation

- Bus service quality has been improve

- Organization and mechanism: the operational mechanism of bus service in Hanoi has been renovated from service provided by state companies to service provided through contacts with other firms, especially private firms On the other hand, a corporation has been established in the appropriate scale with modern facilities

in order to direct the public transport in Hanoi Capital

- However, there are some limitation existing in bus service such as: the overload

of traffic network that leading to the extension of bus trip duration; poor infrastructure for bus system affecting to the passengers’ accessibility, etc

2.1.2 Current situation of public transport in Ho Chi Minh City (HCMC)

Before 1990, public transport services in HCMC are mainly bus service and three – wheeled taxi service which served 20-50 million passengers per year During the period from 1990-1997, HCMC rejected the system of state budget subsidies, adopted the system of business autonomous This is the slackness period of bus transport service

During the period of 1998-2001, the bus transport market is slightly rehabilitated with 5-15 million passengers per year of ridership From 2001, bus service has been rapidly developed due to the implementation of Government subsidy policies such as encouragement policy in bus vehicles investment, price subsidy policy and other subsidy policies

Development of bus service in HCMC in the last 10 years:

- The number of bus routes increased from 97 routes in 2002 to 147 routes in

2010 The total ridership of bus service in 2010 is 364.77 million passengers which increase 10 times in comparing with 2002 Although the number of bus vehicles did not much increase but the average capacity significantly increased due to increasing of high capacity vehicles and decreasing of low capacity vehicles

- The bus fare is subsidized by HCMC However, the financial burden on city budget due to bus fare subsidy is now more and more significant

2.1.3 Current situation of public transport in Da Nang City

The bus network is comprising of 5 routes with more than 90 medium vehicles in which the function of 3/5 routes is to connect the center of Da Nang City and 03 towns

of Quang Nam province as surrounding bus routes The daily bus ridership is about 15,544 passengers (approximately 5.67 million passengers per year) This number is much lower than expected number as proposal

2.1.4 Current situation of public transport in Hai Phong City

Currently, there are 12 bus routes serving in Hai Phong City in which most of routes are serving with the 15-20 minutes of frequency The most effective route is Dau Khi Hotel – Do Son Beach route due to the highest ridership

2.1.5 Current situation of public transport in Can Tho City

Currently, there are 07 serving bus routes At this time, bus service in Can Tho city has not been applied subsidy policy, the fuel consumption norms for bus vehicles