Full Version - Issue 7 | November 2011 - LTA Academy

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Different Approaches to Public Transport Provision The annual Public Transport Customer Satisfaction Survey in 2010 found that more than 92% of respondents were satisfied with overall public transport services. train ridership, the LTA is expanding the rail network and increasing capacity on the current network. The LTA is also enhancing competition for the rail and bus markets. The licence duration for rail lines has been shortened from the current 30 years to about 15 years, thereby encouraging the incumbent operators to perform better in order to retain their licences. The LTA is also studying tendering of packages of bus routes in future, in order to inject competition for the bus market and spur efficiency. To cope with increasing train ridership, the LTA is expanding the rail network and increasing capacity on the current network. Conclusion There are different approaches to providing public transport services, each with its merits and shortcomings. Most governments aim to develop integrated and accessible urban public transport systems with reasonable quality of services and at affordable fares. These would ideally be fiscally sustainable, and provided by efficient and financially viable operators. There could be tradeoffs between the different objectives and governments have to strike a balance between public service and economic efficiency. 40 JOURNEYS | November 2011 Nationalisation was popular in the 1940s to 1960s as governments attempted to provide integrated and affordable public transport services which the private operators were increasingly unable to provide. Privatisation of public transport gained ground from the 1980s due to increased importance of operator efficiency and fiscal sustainability. The appropriate approach for each government depends on what its priorities are. As with other policies, there may not The appropriate approach for each government depends on what its priorities are. be a one-size-fits-all model as contexts and imperatives differ among cities. Singapore has adopted an approach which seems to work reasonably well, with some areas for improvement. It could serve as a case study for other cities attempting to improve their public transport systems. References Cox, Wendell. 2004. Competitive Tendering of Public Transport. Presentation to the Urban Road and Public Transit Symposium. Montreal. Gomez-Ibanez, Jose A. 1997. Sri Lanka Transport (A): The Bus Industry. Kennedy School of Government Case Program CRI-97-1377.0. Gomez-Ibanez, Jose A. 2003. Regulating Infrastructure: Monopoly, Contracts, and Discretion. Harvard University Press, Cambridge, Massachusetts, and London, England. Hensher, David A. 2007. Delivering Value for Money to Government through Efficient and Effective Public Transit Service Continuity: Some Thoughts, (including commentary of 8 respondents) Transport Reviews, 27 (4). pp 411-448. Hensher, David A. 2010. Incompleteness and Clarity in Bus Contracts: Identifying the Nature of the ex ante and ex post Perceptual Divide. Research in Transportation Economics, 29 (1), pp. 106-117.
Hensher, David A and Stanley, John. 2010. Metropolitan Bus Service Contracts (MBSC): Thoughts on the Next Round. Institute of Transport and Logistics Studies Working Paper ITLS-WP-10-02. The University of Sydney, Sydney, New South Wales. Hensher, David A and Wallis, Ian P. 2005. Competitive Tendering as a Contracting Mechanism for Subsidising Transport: The Bus Experience. Journal of Transport Economics and Policy, 39 (3), pp. 295-321. LEK. 2008. Cost Review of CityRail’s Regular Passenger Services. Independent Pricing and Regulatory Tribunal, Sydney, New South Wales. PTC (Public Transport Council), Singapore. http://www.ptc.gov.sg. JOURNEYS | November 2011 Different Approaches to Public Transport Provision David A. Hensher is Professor of Management, and Founding Director of the Institute of Transport and Logistics Studies at The University of Sydney. A Fellow of the Academy of Social Sciences in Australia and Honorary Fellow of the Singapore LTA Academy, David has received several awards including the 2009 IATBR (International Association of Travel Behaviour Research) Lifetime Achievement Award in recognition for his longstanding and exceptional contribution to IATBR as well as to the wider travel behaviour community. David is Vice-Chair of the International Scientific Committee of the World Conference of Transport Research, and the Executive Chair and Co-Founder of The International Conference in Competition and Ownership of Land Passenger Transport (the Thredbo Series). David has published extensively and written many books. He is on the editorial boards of leading transport journals, and edited volumes on Handbooks in Transport, Transport Economics, and Transport and the Environment. Australia’s most cited transport academic and number three academic economist, David has advised numerous government and private sector organisations on transportation matters. His interests are transport economics, transport strategy, sustainable transport, productivity measurement, traveller behaviour analysis, choice analysis, stated choice experiments, and institutional reform. Gabriel Wong is a Researcher at the LTA Academy where he does research on land transport policies and developments in Singapore. He was previously with the Civil Service College’s Centre for Public Economics, Centre for Governance and Leadership, and Institute of Policy Development where he has written on Singapore’s experience in the areas of economic regulation, industrial policy, and industrial relations. Gabriel obtained his Bachelor in Social Science (Honours) degree and completed his Master in Social Science in Economics degree on a Research Scholarship at the National University of Singapore. 41
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