IMPROVE THE PERFORMANCE EFFICIENCY OF PUBLIC TRANSPORT SYSTEM IN URBAN AREAS

In this context, how to improve the performance public transport system to satisfy the travel demands of citizens and meet the goals of sustainable development and urban socio-economic i

MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF TRANSPORT AND COMMUNICATIONS

* * * * * * * * * * * * * * * * * * NGUYỄN THỊ HỒNG MAI

IMPROVE THE PERFORMANCE EFFICIENCY

OF PUBLIC TRANSPORT SYSTEM

Training Institution: University of Transport and Communications

Supervisors: 1- Assoc.Prof.Dr Tu Sy Sua

2- Dr Le Xuan Lan

Examination Committee Member 1: Prof.PostDr Nguyen Huu Ha

Examination Committee Member 2: Prof.Dr Ngo Thang Loi

Examination Committee Member 3: Prof.Dr Bui Xuan Phong

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

In : The University of Transport and Communications

At , ………… 2014

The thesis can be found in the Information Center of The University of Transport and Communications

INTRODUCTION 1- THE NEED FOR THIS STUDY

The rapid economic growth along with the urbanization led to the explosion of travel demand in urban areas, especially in metropolitans

To meet the increasing travel demands of urban transit has been also a challenge of public transport system The Government along with the urban authorities have been trying to explore several tools to deal with this position, in which urban public passenger transport is considered an effective solution

Over the past decade, Ha Noi and HCM city has taken steps to develop polices and public transport system, but the fact that the capacity of this components limited (satisfied about 10% travel demand

in Hanoi, and in HCMC is approximate 7%); in contrast, this rate is actually high in the similar cities in the global There are many objective and subjective reasons leading to this situation, which must include asynchronous development of urban transport network, the weakness of the infrastructure serving public transport and the disproportionate number of public transport vehicles Besides that, the poor management, enforcement the performance of vehicles on streets leads to low service quality and decrease the attractions of public transport to passengers

The low proportion of public transport users will lead to the low effective of system performance In this context, how to improve the performance public transport system to satisfy the travel demands of citizens and meet the goals of sustainable development and urban socio-economic issues are top concerns of urban government

From the urgent problems posed by reality and perfection requires reasoning about the performance of public transport system,

the author chose the subject of the thesis: “Improve the performance

efficiency of public transport system in urban areas"

2- PURPOSESOF THE STUDY

Systematize and clarify the rationale of performance efficiency

of public transport system in urban areas; Analyze the status quo of system performance and suggest solutions to improve performance

efficiency of Hanoi bus system, concentrated on performed solutions 3- OBJECTS AND SCOPE OF THE STUDY

The objects of study are:performance efficiency of bus system

Scope of study:In study’s field: Bus system and its performance

efficiency; In space: Vietnamese large and special cities, particularly is Hanoi; In time: data in period of 2002-2012, Governmental and Hanoi’s oriented indicators until 2020 and visions to 2030

4- SCIENTIFIC AND REALISTIC CONTRIBUTION OF THE STUDY

Scientific contribution:Systematize the rationale; Analyze

perspective of efficiency and evaluated indicators; suggest solutions to

improve performance efficiency of bus system

Realistic contribution:Evaluate the performance efficiency and

existing problems of Hanoi bus system; Summarize the experience form large cities on the world; Suggest solutions to improve performance efficiency of bus system

OVERVIEW OF RESEARCH SITUATION IN VIETNAM AND

ON THE WORLD 1-Research situation in Vietnam

Until now, the researches on public transport and efficiency of public transport system are mostly achieved form science schemes as Ministry-level projects No KC10-02 and KHCN 10-02 of Ministry of Transport and directed by University of Transport and Communications; or several project funded by international organization such as Project of improving Vietnamese urban transport

by SIDA in 1994; Master Plan of urban transport in Hanoi and Ho Chi Minh city by JICA; Research project preparation urban transport development in Hanoi and Ho Chi Minh city by World Bank conducted during 2004 – 2007; Urban bus transportation scheme in Hanoi (2010 - 2020) Besides that, there are several related thesis researching on efficiency of public transport system in different aspects

In general, the analyses of urban transportation’s effectiveness remained incoherent; the effectiveness was presented in several certain aspects, have not applied to assess specifically to establish orientations and solutions to improve effectiveness of urban transportation system

2- Research situation on the world

Researches to assess effectiveness of urban transportation: Richard Layard and Stephen Glaisteranalyzed benefits and costs of urban

transportationeffectiveness of urban transportation; Geoff Gardner

(United Kingdom) analyzed benefits and costs to select public mass transportation vehicle; Bruno De Borger et al (Belgium) represent the analyzing model of social costs of urban transportation DimitriosTsamboulaand George Mikroudis stated the EFECT

(Evaluation Framework of Environmental impacts and Cost of

Transport) combining multi correspondence analysis (MCA) and cost – benefit analysis (CBA)

Researches became the foundation to improve effectiveness of urban transportation: Vukan R.Vuchic in Urban transit: operation, planning and economics assessed effectiveness and represented basis of vehicle performance improvement; Johan Holmgren researched on performance effectiveness of urban transportation by random variable analysis; analyze operation effectiveness on urban transit system of Sampaio et al (2008) conducted on 12 systems in Europe and 7 systems in Brazil

The study focused on performance issues over investment costs, operation costs, comparing and evaluating the results of operations and investment policies to support public transportation The issue of urban structure, distribution of power between beneficial groups, competition issues and constraints to create differences between the actual cost and the optimal cost of the investment plan,modal choice behavior of users has been studied and considered However, network structure, hierarchical routing capabilities to optimize transport capacity of the transportation system, improving connectivity for passengers, increasing operational efficiency has not been thoroughly studied

3- OBJECTS OF THE THESIS

Based ondomestic and international research results are concerned, thesis tried to make up and complete both the theoretical basis and practical of performance efficiency of the public transport system in urban areas

Research on existing problems which decrease efficiency of current bus system As a result, suggest solutions to improve performance efficiency of bus system based on combining rationale and practical of improve performance efficiency

4- METHODOLOGY OF THE THESIS

Thesis used several general research methodology such as dialectical materialism and historical materialism; Specialized research methodology such as deduction, induction, analysis, synthesis, comparison and assessment Moreover, thesis also used several other methodology such as passenger survey and interview, economical mathematics, optimizing mathematics

4- CONTENTS OF THE THESIS

Beside the introduction and conclusion parts, the study report comprises of 3 chapters which are:

Chapter 1: Rationale and practices to improve performance of urban transit systems

Chapter 2: Analyze and assess the current efficiency of public transport system in Hanoi

Chapter 3: Improve efficiency of public transport system in cities

CHAPTER 1: RATIONALE AND PRACTICES TO IMPROVE PERFORMANCE OF URBAN TRANSIT SYSTEMS

1.1 URBAN AREA AND URBAN TRANSPORATION SYSTEM

1.1.1 Urban - Urbanization

1.1.1.1 Concept and classification of urban area

a-Definition:Urban area is the concentrated high-density area,

mostly non-agricultural workers, people live and work in urban style, the general center or specialized centers have a role to promote the economic

1.1.1.2 Urbanizationis a process that transforms the area into urban

territory, it is an inevitable trend of historical objectivity of social development.Besides the positive side there are many problems, especially the increase in travel demand and pressure to solve urban transportation issues and ensuring environment

1.1.2 Travel demand in urban area

1.1.2.1 Concept and classification of travel demand

* Travel demand is the average trips of a person in a certain time unit Trip is the movement on purpose of a person with the distance not less than 500 metres

* Travel demand is classified by Travel purpose, land boundary, Trip behaviour, Trip distance

1.1.2.2 Characteristics of travel demand: Travel demand is a derived

demand, travel demand could be filled by different vehicles, travel demand is difficult to replace, price impacted slowly to travel demand, travel demand is a seasonal and timed demand, travel demand displays profound social feature

1.1.3 Urban transit system

1.1.3.1 Struture of Urban transit system

- Urban Transport system:including dynamic transport system and

static transport system

- Urban transit system:including transport modes and vehicles

1.1.3.2 Characteristics of Urban transit system:High density of road

network; Low traffic speed;High investment and operation cost …

1.2 URBAN PUBLIC TRANSPORTATION IN URBAN AREA

1.2.1 Definition: Urban public transportation is the combination of all

transport modes and infrastructure serving for vehicle performance and services supporting for travel demand of citizens

1.2.2 Role of Urban public transportation:Create relationships

between the areas of the city; Being effective measures to reduce traffic density on the road; Being primary solutions to improve efficiency of transport infrastructure; Reduce traffic accidents and reduce pollution; Contributing to cost savings for society

1.2.3 Transport modes of Urban public transportation

- Metro/Mass rapid transit (MRT)

1.3 RATIONALE FOR EFFECTIVENESS OF URBAN PUBLIC TRANSPORTATION IN URBAN AREA

1.3.1 Rationale of efficiency

1.3.1.1Definition:Efficiency is a concept used to describle the

relationship between the results of the operational objectives of the

subject and that subject waste to spend to achieve that result in certain conditions

1.3.1.2 Classification of efficiency:According to the field of social

work; In view of the benefits; According to calculations; Under the

scope of impact

1.3.1.3 The principles of effective assessment: The principle of the

relationship between goals and performance indicators; The principle unification of benefits; Principles of accuracy, adequacy and science Principles to ensure realistic

1.3.2 Efficiency of urban public transportation

1.3.2.1 Definition:Efficiency of urban public transporation reflect the

use of resources are invested to achieve certain goals staining related to the field of socio-economic and environmental issues

Efficiency of urban public transportationis assessed through 3 aspects: By state’s view, aimed to reduce environmental pollution, to promote social equality, rational land use; By operator’s view, maximizing the profit or minimizing costs; By passenger’s view, gaining best service quality on minimum trip cost

1.3.2.2 Method of evaluating the efficiency of urban public transporation

Method of comparison

Method of marking evaluation

Method of multi indicator analysis

Method of cost-benefit analysis

1.3.2.3 Indicator to assess the efficiency of urban public transporation

a-By state’s view

1- Benefit by saving on infrastructure costs

2- Benefit for society on costs

3- Benefit for environment on costs

4- Ratio of travel demand satisfy

5- Average total cost for one passenger delivered (C HK

) 6- Average subsidy for one passenger (M TG HK)

b-By public transportation operator’s view

1- Efficiency of inputs

2- Rate of returns of inputs

3- Average operating costs for one passenger (CHK)

4- Average operating costs for 1 kilometer vehicle operated

5- Average operating costs for 1 hour vehicle operated

c-By passenger’s view (public transport user’s view)

1- Time from origin to destination

2- Total cost for one trip

3- The indicators to evaluate public transport service

1.3.2.4 Factors influencing to efficiency of urban public transportation

a- Objective components:Transport infrastructure, Travel demand and

characteristics of travel demand, institution and policies, inputs of public transport

b- Subjective components:Human factor;Public transport operation;Public transport management and enforcement, Public transport service quality

1.3.3 Improving performance effectiveness of urban public transportation by bus

There are 3 ways to improve efficiency:

(1)- Increase results (benefit) obtained at the output on the basis of

unchanged inputs (or input increases with slower speed);

(2)- Maintaining the results obtained on the basis of reduction of inputs; (3)- Increase results (benefit) obtained at the output on the basis of reducing the inputs and this is the most efficient path

1.3.3.1 By state’s view:Improve efficiency is to find the way saving

investment cost for infrastructure, reduce subsidy and increase social and environmental benefit

1.3.3.2 By public transportation operator’s view: Improve efficiency is

to find the way saving operating costs and improve service quality to

attract passenger and also increase revenue

1.3.3.3 By passenger’s view:Improve efficiency is find solutions to

provide a rapid, cheap and qualitative public transport service This will

be the determined factor of modal shift from private to public transport, therefore generally improve the efficiency of urban public transportation system

1.4 CASE STUDY OF IMPROVE EFFICIENCY OF PUBLIC TRANSPORT SYSTEM IN SEVERAL CITIES ON THE WORLD

Streamline planning and spatial development of urban functional areas Urban public transport planning becomes the backbone of land use planning, in public transport planning, concentrating on urban transit

Develop public transport’s infrastructure insynchronization and compatibility Public transport’s infrastructure could be co-financed by people benefited from increasing property values

Establish classified transport network clearly (backbone line operated by MRT or BRT, bus route covered the rest of network) Cooperate all transport mode with unique agency has responsibilities in operation and management of public transportation (PTA)

Applied ITS to operate and manage urban public transportation system

Provided information for passenger more accurately and adequately Information might be accessed via mobile phone and internet

Control the growth of private vehicle by the regulated role of government

To conclude, chapter 1 provided an overview of issues relating

to urban public transport and its performance; systemize and establish more detailedindicators of efficiency of public transport system by the view of government, operators and passengers; analyze the factors influencing to system performance efficiency, concentrated on bus system and the methods to evaluation Particularly, the thesis argued the issues of improving the efficiency of bus system Also in this chapter, the thesis introduced several case studies in operating public transport system in representative cities, thus concluded lessons learned

to establish a better and effective public transport system

CHAPTER 2: ANALYZE AND ASSESS THE CURRENT EFFICIENCY OF PUBLIC TRANSPORT SYSTEM IN HANOI 2.1 OVERVIEW OF PUBLIC TRANSPORT DEVELOPMENT IN VIETNAMESE URBAN AREAS

Until 2012, there are 755 urban areas, including 2 special cities are Hanoi and HCMC, 10 cities type I, 12 cities type II, 47 cities type III, 50 urban areas type IV and 634 urban areas type V Bus is currently

the only mass transit system in urban areas Buses are only priority in public transport development in Hanoi and HCMC, but in other urban municipalities including type I, the role of it is still fuzzy

Table 2.1: Results of bus system performance in central cities

No Indicators Unit HảiPhòng HàNội ĐàNẵng TP

HCM CầnThơ

up 20% and 27% respectively, circular routes only take around 5% With this proportion, the biggest issue is the possibility of duplicating routes in main corridors, especially in city centre

2.2.2 Current status of bus vehicles:

There are 3 types of bus: minibus (24 – 30 seats), medium bus (45 – 60 seats) and large bus (from 80 seats).The vehicles are changing frequently, however, over-5-year-old vehicles still made up high proportion (over 50%), in contrast, the ratio of under-2-year-old vehicles is 16% and 2-to-4 year-old is 28% The bus vehicle are various

on type and operated commonly

2.2.3 Current status of infrastructure

2.2.3.1 Termini: There are 63 termini, however, only several coach

stations such as Hadong, Nam Thang Long, Giap Bat, My Dinh coach station and parking places such as Den Lu, Long Bien, Thuy Khue, Nguyen Cong Tru, Lac Trung, Kim Ma, Thanh Xuan having the peculiar parking area for bus vehicles The others are using temporary on-street parking

2.2.3.2 Interchanges: There are 3 interchanges for bus, such as Long

Bien, CauGiay and Nhon in recently

2.2.3.3 Bus stops and bus shelters: There are 1812bus stops, but oly

including 360 bus shelters

2.2.4 Current status in management

2.2.4.1 Operations: Normal-form operation conducted on 67 subsidized

route at whole the time in a day Rapid-form operated in peak hours with low frequent

2.2.4.2 Management and Enforcement

a- Model of government management in public transportation

Figure 2.1: Model of government management in public transportation

DEPARTMENT OF TRANSPORT

Division of

Transportation

Division of Vehicle Management

Division of Public transport

Other division

HANOI TRANSPORT MANAGEMENT AND OPERATION CENTRE

Bao Yen Bus

Bus

Bac Ha Bus

Other bus companies

b- Revenue management: Tramoc managed single ticket, ticket stamps

releasing, managed ticket sales

c- Enforcement: Based on the ordered contracts and the bidding

contracts between management unit and operators

2.2.5 Current status of ticketing

Monthly ticket (single route, multi route) and single ticket are mainly in paper form Smart card is only applied in Route No 32

2.2.6 Performance results of public transport system

Bus network coverage is expanding, passengers increase day; Positive contribution in reducing traffic congestion; Increase passenger load factor; Powerful Innovation in mechanism of bus operations

TRANSPORT SYSTEM IN HANOI

a- Ratio of travel demand satisfied:In 2012, public transport served

10,04% travel demand of Hanoi’s citizens, however, comparing to the

target of 30-35% travel demand, the ratio was truly low

b- Performance efficiency: During 2002 to 2012, the rate of passenger

volume growth was around 1,3 time, revenue increased 1,28 time per year; however, costs also upturned 1,32 time and subsidy, therefore,

raised with the highest ratio of 1,46 time per year

The growth rate of revenue was lower than costs, notwithstanding the increasing rate of cost was lessened than passenger volume, and the amount of subsidy was expandedat the highest level