University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091

University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIAPhone: +381(11) 3091 226, +381(11) 3091 346, Fax: +381(11) 3096 704, e-mail: [email protected], [email protected]

Regulation of public transport system in the City Regulation of public transport system in the City of Skopje: organizational and financial issuesof Skopje: organizational and financial issues

Doc. Dr Slaven M. TICA, Trans. Eng.

Honorary Vice-President UITP

Regional Public Transport SeminarContracting, Financing and Corporate Management in Public Transport


Territory: 10 urban communities + 9 suburban communities Surface: 1818 km2

Number of inhabitants: : 506.926 (The 2002 census)

CITY SKOPLJE - TODAYCITY SKOPLJE - TODAY

1. Центар2. Гази Баба3. Аеродром4. Чаир5. Кисела Вода6. Бутел7. Шуто Оризари8. Карпош9. Ѓорче Петров

10. Сарај


PUBLIC TRANSPORT - TODAYPUBLIC TRANSPORT - TODAY

TRANSPORTTRANSPORTATIONATION NETWORK NETWORK

Number of linies: 78Exploatation length: 1189 kmAverage stop distance: 0.62 kmDensity of transport network: 0.99 km/km2

Number of vehicle: 335

Number oflinies

Exploatationlength

Averagestop

distance

Density oftransportnetwork

Number ofvehicle

Number oflinies

Exploatationlength

Averagestop

distance

Density oftransportnetwork

Number ofvehicle

PUBLIC TRANSPORTSYSTEM IN SKOPJE

35

43

393 km

796 km

0.55 km

0.71 km

1.69 km/km2

0,65/km2km

247

88

City transportation network

Suburban transportation network


PUBLIC TRANSPORT - TODAYPUBLIC TRANSPORT - TODAY

Working hours

0,780 0,768 0,7780,798

0,851

0,500

0,600

0,700

0,800

0,900

1,000

2006 2007 2008 2009 2010

million

Transport work (vehicle km)

14,91

15,87

15,2114,70 14,73

5

10

15

20

2006 2007 2008 2009 2010

million

Transported passengers(passenger / year)

48,2248,63

45,6542,70

48,30

20

25

30

35

40

45

50

55

2006 2007 2008 2009 2010

million


CURRENT SYSTEM - PROBLEMS

PUBLIC

TRANSPORTSYSTEM

IN SKOPJE

Legal and

regulatory framework

Vehicle fleetand

maintenance

Transportnetwork

Tariff systemand farecollection

Quality ofservice

Organizationand

managamentof system

Humanresources

Systemperformance


CURRENT SYSTEM - PROBLEMS

LEGAL AND REGULATORY FRAMEWORKLEGAL AND REGULATORY FRAMEWORK

- System operation is not in line with existing legal and regulatory acts

- Conditions for the appearance of "double standards“

- Conditions for production of all types of risks in the system

ORGANIZATION AND MANAGEMENT OF SYSTEMORGANIZATION AND MANAGEMENT OF SYSTEM

- The absence of a clear vision of system development and of the system target function

- Unregulated market: unregulated monopoly - expressed unfair competition

- The absence of modern concepts of management and organization of the whole system

- Lack of system competition

- The lack of organization unit within City Authorities that deals exclusively with issues of transportation of passengers, which is necessary taking into account the size and complexity of the system

- Interference with the competence and insufficient and unclear delineation of responsibilities between decision makers

- There is no concept of development and planning systems at the strategic level

- The inability of an integrated and balanced development of the system

- Functional integration of multiple jobs with one of the actors in the system

SYSTEM PERFORMANCESYSTEM PERFORMANCE

- The lack of all aspects of integration (physical, tariff, logical)

- Difficulty monitoring of efficiency and effectiveness of the whole system

- Cost of operation of the system are in imbalance with the performance and efficiency of the whole system work

- The absence of balanced subsidies of all actors in the system

- The absence of adequate and continuous monitoring and control system operation


ACTION PLAN FOR IMPROVING THE SYSTEMACTION PLAN FOR IMPROVING THE SYSTEM

T h e re se a rc h re q u ire s

st ak eh old e rs to t h e PT sy ste m

The PT syste m o f

lim ited c o m p e titio n

D ere g ula te d

PT syste m

I m p a c t A n a lysis

Phase 0 Phase II

Analysis of the current PT system in Skopje and identification problems

- Defining minimum standards of quality- - Improving the transport network- Designing a new tariff system- Standardisation of costs for the acquisition and distribution of income- The distribution of rights, obligations and risks in thePT system in Skopje- The new contract between the City and Operator- - - A study of long-term development of the PT system in Skopje

The study of transport needs and requests

Continious monitoring of key system performance indicatorsContinious research on quality of transport service and system customization to user needs

R

PT S e

esearch and defining the objectives and policies to system in kopj

N

PT S

ew model of the organization and management to

system in kopje

Phase I

E x p a n d in g

2010 2011 2012 2013 2014


RESEARCH CARRIED OUT IN RESEARCH CARRIED OUT IN

THE THE PUBLIC TRANSPORT PUBLIC TRANSPORT SYSTEMSYSTEM

Were carried out detailed research in real-system in order to obtain the views, opinions and demands of system users, operators and experts in the city of Skopje, covering specific key areas related to the organization, management, operation, financing, promotion and development of the whole system of passenger transport.

Research on passenger’s view in public transport system in Skopje (3874 passengers, 10 stops)

Research on views of city government, operators and experts in the public transport system in Skopje (60 experts)


MOST IMPORTANT GOALS OF IMPROVING MOST IMPORTANT GOALS OF IMPROVING

THE PT SYSTEM IN SKOPJETHE PT SYSTEM IN SKOPJE - - EXPERT OPINIONEXPERT OPINION

1,922

2,838

4,827

4,764

3,614

5,335

4,804

7,355

0 1 2 3 4 5 6 7 8

C1

C2

C3

C4

C5

C6

C7

C8

Average rank

Achieving high mobility in public transport, as a precondition for the quality of life in the city and sustainable development

Increasing the quality of service in PT system as a whole

Enabling mobility of certain social groups at reasonable conditions

Creating an efficient system of cost management, revenue, prices and financing systems

Decreasing operation costs of the public transport system

Adjustment of prices of transport services to the real costs of transport

Enabling investment in further development of public transport

Other


MOST IMPORTANT GOALS OF IMPROVING MOST IMPORTANT GOALS OF IMPROVING

THE PT SYSTEM IN SKOPJETHE PT SYSTEM IN SKOPJE - - USERUSER OPINION OPINION

Information; 4,089

Spatial accesibility ; 3,749

Stop comfort; 3,464

Accesibility in time; 3,001

Personnel; 2,997

Tickets and prices; 2,857

Vehicle comfort; 2,501

Reliability of service; 1,669

0 0,5 1 1,5 2 2,5 3 3,5 4 4,5

Importance rank


VISIONVISION, , MISSION AND TARGET FUNCTION MISSION AND TARGET FUNCTION PTPT SISTEM SISTEM

VISION

MISSION

TARGET FUNCTION

The vision should be directed towards ensuring that the system is an effective, modern organized and rational, facing the production of quality transport services to users of public transport, with a large impact on the implementation of the mobility of the population of Skopje.

The mission of the system of public passenger transport in the city of Skopje should be directed to provision of a reliable, stable, available in space and time and quality transport services to customers, under economically favorable and environmentally acceptable conditions.

Production of the maximum level of quality of transport services for a defined level of costs, that is the required amount and quality of transport services with a pre-defined costs, implemented with maximum efficiency and effectiveness with minimal environmental pollution.


ORGANIZATION AND MANAGAMENTORGANIZATION AND MANAGAMENT

Is the organization and management of transport markets in the City of Skopje, in your opinion regulated properly ?

Yes6,21%

No93,79%

No9,66%

Yes90,34%

Do you think the organization and management of PT system should be given to a special expert body within the City of Skopje ?


Way to access the market of transport servicesWay to access the market of transport services ? ?

Concession after negotiations with the

existing public operators for most of the market, and for

the rest of the market to announce an open public tender

65,56 %

Open public tender for the whole market of transport services

6,08 %

Concessions after talks with existing

operators

28,36 %


THE CONTRACTUAL RELATIONSHIP BETWEEN THE THE CONTRACTUAL RELATIONSHIP BETWEEN THE LOCAL ADMINISTRATION AND THE OPERATORSLOCAL ADMINISTRATION AND THE OPERATORS

Contract on the basis of gross production of

transport service

61,31%

Contract on the basis of net

production of transport service

5,54%

Contracts for Management

28,90% Other

4,25%

7 - 10 years

42,28 %At least 5

years

27,67%

Other

25,02%

5 - 7 years

5,03%

What should be the type of contract between local authorities and operators ?

What should be the period of future contracts?


.


LOCAL AUTHORITYADMINISTRATION

(L A A)

DEPARTMENT OF PUBLIC

TRANSPORTATION(D P T)

PUBLIC COMPANIES

(P C)

TYPE Political body

RELATIONSUnder

democratic control

SERVICEAREA

Expert body withexclusive jurisdiction

PT system

Hierarchical controlled by L A A

Urban and suburban areas of Skopje

The contract agreement onthe minimum quality of

service with the DPT after negotiations for greater

market share (70%)

For most of the metropolitan area (70%)

PUBLIC TRANSPORTSUBSYSTEMS

OPERATORS

BUSsubsystem

SLOBODAPREVOZ

Public transport companies

The contract agreement on the minimum quality of

service with the DPT after thepublic tender for a smaller

market share (30%)

All subsystems of public transport

passengers MINIBUS subsystem

MAKTRANSJGSP SKOPLJE“ ”

Futuretramway

subsystem

Private transport companies

PRIVATEBUS COMPANIES

(P B C)

Urban and suburban areas of Skopje

BUS subsystem

MODEL OF THE ORGANIZATION – BIRD MODELMODEL OF THE ORGANIZATION – BIRD MODEL


LOCAL AUTHORITYADMINISTRATION

(L A A)

DEPARTMENT OF PUBLIC

TRANSPORTATION(D P T)

PUBLIC COMPANIES

(P C)

PRIVATEBUS COMPANIES

(P B C)

Strategic levelTactical level Operational level

COMPENTENCE AND MANAGEMENT SYSTEM– BIRD MODELCOMPENTENCE AND MANAGEMENT SYSTEM– BIRD MODEL

Transport policy

Tariff policy

Public discussion

Minimum standards for mobility

Standards for accessibility

Integration services

Minimum standards for quality of service

Line network

Time table

Organization and management

Personnel management

Vehicle scheduling

Fleet Maintenance

Suggestions for Improvement

Crew rostering

Monitoring and Control

Vehicle type


MODEL OF THE ORGANIZATION - MODEL OF THE ORGANIZATION - IMMEDIATE EFFECTIMMEDIATE EFFECT

Contract on the basis of

gross production of

transport service

Contract on the basis of

gross production of

transport service


THE CONTRACTUAL RELATIONSHIP BETWEEN THE THE CONTRACTUAL RELATIONSHIP BETWEEN THE LOCAL ADMINISTRATION AND THE OPERATORSLOCAL ADMINISTRATION AND THE OPERATORS


FINANCIAL ASPECTS - REVENUEFINANCIAL ASPECTS - REVENUE

94,1%

5,9%

8,9%

91,1%

Ticket Revenue

Subsudies

2009

2010

Ticket Revenue Ticket

Revenue

Subsudies Subsudies

2009 2010

- 2,62 %- 2,62 %


QUALITY QUALITY OF OF SERVICES AND PRICE RELATIONSHIP SERVICES AND PRICE RELATIONSHIP

79,95

73,83

69,19

69,59

18,01

23,4

27,33

25,68

2,04

2,77

3,49

4,73

0% 20% 40% 60% 80% 100%

Daily users

Several times a week

Several times a month

Rarely use the system

The corresponding price High price Low price


CUSTOMER SATISFACTION INDEXCUSTOMER SATISFACTION INDEX BY THE USER BY THE USER

3,39 3,49 3,443,63

0,00

1,00

2,00

3,00

4,00

5,00

Daily users Several times a week Several times a month Rarely use the system


AVERAGE RATING AVERAGE RATING OF OF THE QUALITY OF TRANSPORT THE QUALITY OF TRANSPORT SERVICES PROPERTIESSERVICES PROPERTIES – – USER OPINIONUSER OPINION

1,54

1,68

1,81

2,39

2,43

2,71

2,72

2,75

2,76

2,92

0,00 0,50 1,00 1,50 2,00 2,50 3,00

Reliability (There is no system breakdown)

Stability of service (There is no excessive detorioration of the quality of service)

Accuracy (Does vehicle arrive and leave according to planned schedule)

Vehicle comfort (Do not crowd the vehicle)

Clean Vehicles

Ticket Price

Security and safety systems

The frequency in space and time

Stop comfort

Comfort in the vehicle (Air Conditioning and Heating)

Average rating


Operating costs

Operating costs + capital investment

costs (one part)

Operating and capital investment costs

0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00 50,00

26,00 %26,00 %

48,28 %48,28 %

25,73 %25,73 %

The views of local authorities and operators on the costs of primary income from the sale of the transportation services


The views of local authorities and operators on how to The views of local authorities and operators on how to cover the difference between actual revenue and actual cover the difference between actual revenue and actual costs in the systemcosts in the system

93,89 %

6,11 %

The difference between actual costs and revenues should

provide the local government

The difference between actual

costs and revenues should provide the

operator


Sources to cover the difference between actual Sources to cover the difference between actual costs and revenue systemscosts and revenue systems

0,12 %

2,73 %

1,25 %

53,05 %

42,85 %

0 10 20 30 40 50 60

From the budget of thecity of Skopje

The percentage of theprice for parking

The percentage ofpassenger cars using

From other sources

The combination ofprevious methods

Rating


ACTION PLAN FOR IMPROVING THE SYSTEMACTION PLAN FOR IMPROVING THE SYSTEM

T h e re se a rc h re q u ire s

st ak eh old e rs to t h e PT sy ste m

The PT syste m o f

lim ited c o m p e titio n

D ere g ula te d

PT syste m

I m p a c t A n a lysis

Phase 0 Phase II

Analysis of the current PT system in Skopje and identification problems

- Defining minimum standards of quality- - Improving the transport network- Designing a new tariff system- Standardisation of costs for the acquisition and distribution of income- The distribution of rights, obligations and risks in thePT system in Skopje- The new contract between the City and Operator- - - A study of long-term development of the PT system in Skopje

The study of transport needs and requests

Continious monitoring of key system performance indicatorsContinious research on quality of transport service and system customization to user needs

R

PT S e

esearch and defining the objectives and policies to system in kopj

N

PT S

ew model of the organization and management to

system in kopje

Phase I

E x p a n d in g

2010 2011 2012 2013 2014


Thank youThank youБлагодаримеБлагодариме


OPŠTI POJMOVIOPŠTI POJMOVI

Documents

University of Belgrade – Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, SERBIA Phone: +381(11) 3091 226, +381(11) 3091