Manfred Breithaupt

Trends in Transport 

Demand Management: 

concepts within a 

sustainable urban 

transport framework 

Manfred Breithaupt 

Senior Transport Advisor, GIZ

� Liveable Cities & Urban Life 

What means Liveable? 

�A liveable city is a city that provides a high quality of life 

for its citizens 

�This requires:Economic strength,Social balance,Ecological viability 

�All these elements are interdependent 

London Brussels 18.05.2011 

Vienna

What influences Liveability? 

Direct transport related factors: 

� Infrastructure 

� Accessibility 

� Quality of architecture 

� Urban design 

� Public Transportation 

� Public places 

� ...etc. 


Other factors: 

�Safety/Crime 

�Schools and education 

�Recreation 

�Political stability 

�Availability of 

goods/services 

�Economic/Business 

conditions 18.05.2011


� In a survey conducted among companies of the services sector in 

London access to public transport was ranked the most 

important location factor. 

18.05.2011 

Source: CB Richard Ellis, 2008.

Liveable Cities & Urban Life 

Rankings of Quality of Living (1) 

Mercer Quality of Living Survey 2010 – Top 10 (worldwide): 

� Vienna, Austria (1st) 

� Zurich, Switzerland (2nd) 

� Geneva, Switzerland (3rd ) 

� Vancouver, Canada (tied 4th) 

� Auckland, New Zealand (tied 4th) 

Source: VBZ Zurich, 2009, http://vbz.ch. 

� Düsseldorf, Germany (6th) 

� Frankfurt, Germany (7th) 

� Munich, Germany (7th) 

� Bern, Switzerland (9th) 

� Sydney, Australia (10th) 

18.05.2011 

Vienna Zurich Munich

Trends in cities 

� Rapidly increasing car 

ownership and use 

� Failures in Urban and Transport Planning 

� Declining mode share of public 

transport, walking, and cycling 

� Declining city centres; rapid 

decentralisation into caroriented 

suburban sprawl 

Focus was given to road 

design: 

� More infrastructure 

for cars 

� More space for 

motorized vehicles 

� Unsustainable focus 

Source: Xie/GTZ 2006, Beijing 

18.05.2011

Traffic growth outpaces 

population and job growth… 

but expanding roads yields no long-term 

relief because it induces more traffic

Relationship between GDP per Capita and 

Individual Motorised Modal Share 

Decoupling of economic growth and individual motorised 

transport achievable! 

Source: IEA, Energy Technology Perspectives, Paris 2008

The challenges in urban transport and 

TDM 

• Urban areas require 

proper road networks 

• New roads attract more 

traffic and reduce the 

viability of public 

transport 

• Transport benefits will 

be offset by future 

congestion 

Transport Demand Management shall 

• reduce the total volume of traffic 

• promote shifts towards more 

sustainable modes of transport 

with the objectives to 

• reduce traffic congestion 

• reduce adverse effects on the 

environment or public health 

• generate additional revenue to 

improve public transport and NMT 

by pricing mechanisms

We Can’t Build Our Way Out of 

Congestion 

Transportation systems worldwide are undergoing a shift 

from supply side techniques to demand management 

New 

highways 

Public 

transport 

improvements 

Supply side Demand side 

Toll roads 

Adding 

lanes 

HOV 

lanes 

HOT 

lanes 

Adapted from Derek Turner Consulting 

Area 

license or 

fee 

Cordon 

tolls 

Public transport 

priority 

Parking 

control 

Congestion 

charges 

Taxation 

policy

Transport Demand Management 

measures 

Transport demand management measures (including fiscal policies) 

� Land use development controls 

� Public transport integration 

� Parking controls and management 

� Regulatory controls such as odd/even systems 

� Physical measures such as bus and pedestrian priority 

� Pricing & charges through fuels, annual taxes 

� Congestion charging 

TDM policies cannot be implemented as isolated 

instruments, but – for being successful – have always to 

be embedded in a comprehensive framework of 

Transport Demand Management measures.

Examples of TDM measures:

Examples of TDM travel impacts 

GIZ, 2009

TDM as part of a 

sustainable transport system 

GIZ, 2009

TDM - Checklist 

Planning 

Instruments 

Regulatory 

Instruments 

Economic 

Instruments 

Information 

Instruments 

Integration of Land Use and 

Transport Planning 

e.g. Transit-oriented 

developement 

Public Transport Promotion e.g. Priority at Intersections 

Strategies for Non-Motorised Modes e.g. Cycling Policy 

Physical Restraint Measures e.g. Pedestrian zones 

Traffic Management Measures ITS 

Regulation of Parking Supply Maximum parking limits 

Low Emission Zone In City Center 

Speed Restrictions (30 km/h) In built up areas 

Road Pricing e.g. during peak hours 

Tax Incentives e.g. for cleaner vehicles 

Parking Pricing Off- and on-street parking 

Public Awareness Campaigns E.g. participation in Mobility 

Weeks 

Stakeholder Conferences On transport policy documents 

Driver Training / Eco Driving e.g. for City drivers 

Promotion of Mobility Management 

in Companies 

e.g. Employer Passes, flexible 

work hours 

Technology Promotion of Cleaner Technology e.g. Green Procurement 

Good 

example 

s score 

more 

than 10 

out of 

the 16 

criteria

The push and pull approach 

Source: Müller, P., Schleicher-Jester, F., Schmidt, M.-P. & Topp, H.H. (1992): Konzepte flächenhafter Verkehrsberuhigung 

in 16 Städten”, Grüne Reihe des Fachgebiets Verkehrswesen der Universität Kaiserslautern No. 24.

Land use development controls: 

Modal split in various European cities 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

28% 

7% 

37% 

28% 

Zürich 

1992 

22% 22% 

32% 

10% 

18% 

21% 

30% 

6% 

22% 

13% 

26% 

25% 24% 21% 

10% 17% 

16% 

21% 

37% 39% 39% 41% 43% 44% 45% 

Münster 

1994 

Freiburg 

1998 

Frankfurt 

1998 

München 

1997 

Dresden 

1998 

23% 22% 22% 23% 

Karlsruhe 

1992 

car public transport bicycle foot 

Major shifts in the modal split 

12% 11% 10% 

Hamburg 

1991 

15% 

52% 

Urban 

Areas 

1997 

11% 

56% 

West 

Germany 

1997 

Münster 

54% of all trips are 

by non-motorized 

means of transport 

(walking, bicycle). 

Zurich 

private car use is 

smaller than 30% 

whereas public 

transport covers 

nearly 40% of all 

trips. 

Major shifts in the modal split proved possible (e.g. in Zurich, Freiburg, Münster) when 

the local authorities implemented a comprehensive and integrated urban policy.

Why Zurich is so successful? 

Context 

Two major projects for 

underground 

transportation systems 

were rejected by voters 

in referendums in 1962 

and 1973 

The town council saw 

this as a mandate to 

continue working with 

the existing transport 

system based on trams 

and buses and to 

develop these into a 

modern, efficient and 

attractive transport 

system 

Reasons for the success of 

today’s public transport 

Visible predominance in the streets 

• Frequent bus and tram circulation 

High quality of services 

• Comprehensive network 

• High frequency 

• Clear timetables at each stop 

Telematics system 

• Priority for buses and trams at intersections 

Integrated Networks and Timetables 

• Complete integration of the suburban railway 

lines into the city„s network 

• Integrated fare system, coordinated timetables 

Investment and operating costs 

• In comparison to underground transportation 

investment costs are only a fraction 

(e.g. the whole telematics system costs only as 

much as half a kilometer of a metro tunnel)

Source: Internationales Verkehrswesen, 100 Jahre 

DVWG, p. 17 

� International Experiences 

Examples: Berlin – Shared Space in Berlin 1908 

Unter den Linden/ Friedrichsstraße: 

The street belonged to everyone: 

automobiles, buses, carriages, 

pedestrians 

In this era, people were enthusiastic 

about technology and the 

achievements of modernity; while at 

the same time they felt anxious 

about the rapid and radical changes 

in their social and economic life. In 

Germany, this contradictory 

experience was especially harsh 

and perceptible in the urban 

metropolis of Berlin.

Singapore in the 70’s…before 

congestion charging 

Source: LTA

Singapore today… 

after 30 years of road pricing and 

public transport investment 

CBD and 

motorway toll 

rates adjusted 

4x/year to keep 

traffic speeds 

at peak system 

performance

Case Study: Beijing 

Travel Demand Management 

Through odd and even License plate number policy 

During Olympic road traffic reduced by 23% 

Traffic volume before and in Game time on west 3rd. Ring road in morning peak hour 

Source: Dr. Guo Jifu

Source: Dr. Guo Jifu 


Vehicle Growth



Modal Split Change

10 

8 

6 

4 

2 

0 


Traffic Congestion Index 

月平均交通拥堵指数变化(工作日) 

2007年 2008年 2009年 

1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 

Heavy 

Congestion 


Moderate 

Congestion 

Light 

Congestion 

Smooth 

Traffic 

Free 

Flow

Daily 

Mileage(km) 



Challenges 

Car Usage 

City Parking fee 

(Rmb/H) 

NY 70 

Tokyo 40 

Hong Kong 8-40 

Beijing 10 

Shanghai 10-20 

Jakarta 2-3 

Tokyo LA HK London Beijing 

14 43 39 30 45


The new policy in Beijing 

�Make Public Transport the first choice 

�Rethink role of NMT 

�Travel Demand Management is 

extremely important 

�Green Transport 

Source: Dr. Guo Jifu

The three basic routes to improve energy efficiency 

REDUCE 

Reduce or avoid travel 

or the need to travel 

• Integration of transport 

and land-use planning 

• Smart logistics 

concepts 

• … 

SHIFT 

Shift to more environmentally 

friendly modes 

• Transport Demand 

Management 

• Mode shift to Non- 

Motorized Transport 

• Mode shift to Public 

Transport 

• … 

IMPROVE 

Improve the energy 

efficiency of transport 

modes and vehicle 

technology 

• Low-friction lubricants 

• Optimal tire pressure 

• Low Rolling Resistance Tires 

• Speed limits Eco-Driving 

(Raising Awareness) 

• Shift to alternative fuels 

• …

Starting point: 

A household 

requires a wide 

range of goods, 

with varying 

frequency. 

Traffic generation & Carbon emissions: 

What aspects should we concentrate on? 

First decision: 

How far do you 

have to go? 

Example: Shopping 

Second decision: 

Which mode of 

transport will you 

(have to) use? 

10 km 

? 

2 km 

Smart infrastructure 

planning: Reduces 

need for travelling! 

AVOID/REDUCE 

Encourage use of 

non-motorized and 

public transport! 

SHIFT 

Third decision: 

Which type 

of vehicle + use? 

? 

Reduce car 

size and 

consider using 

alternative fuels! 

IMPROVE

Source: GIZ, 2011 

Modes of Transport & Carbon emissions: 

Some modes are greener than others 

How far can I travel with 1 ton of CO2?

Induced Traffic: 

Build It And They Will Come 

From Michael Replogle 

�For every 100% increase in 

road capacity expect a 30%- 

120% increase in traffic (with 

80% typical) 

�Expanding roads to solve 

congestion: like buying bigger 

pants to cure obesity 

�When road capacity is 

removed, much of the traffic 

disappears

Copenhagen 

bike network 

EVERY major 

arterial has a bike 

lane

MODAL SPLIT: 

36% go to work on bicycle 

23% use car 

33% use public transport 

Induced 

Bicycle 

Traffic 

Cycling in 

Copenhagen 

increased by 

100% from 

1990 to 2000

Traffic Cells: Making Walk and Bike Access Central 

�Direct paths with priority for pedestrians, bikes, public 

transport 

�4 of 5 internal trips by walk/bike 

�Development focus around public transport station 

�Examples: Houten, Delft, Gronigen (Neth.); Gottenberg 

(Sweden); Davis, California, Bremen (Germany); Japan

Reform Zoning, Street Codes for 

Expanded Choices 

�Channelize traffic with medians, traffic calming, street design 

�Adopt codes for “Complete Streets” so pedestrians and 

bicycles are routinely & safely accommodated & encouraged 

�Adopt street design codes accommodating Bus Rapid Transit 

�Ensure public transport is extended to areas of development

Financial: National Instruments 

1. Fuel Taxes and Surcharges 

Charges on fuels levied by governments, 

sometimes additional fuel surcharges by 

provinces of cities 

Characteristics: 

• Simple, cost-efficient and reliable way of 

charging 

• Most appropriate way to focus on the 

user-pay-principle 

• Political acceptability sometimes 

problematic, political pressure sometimes 

keep fuel prices low 

“On a global level between 80 to 90% of 

all revenues derived from the transport 

sector are being raised from fuel taxes” 

Case Study: Fuel surcharge in Colombia 

•In all Colombian cities a 20% surcharge to all gasoline sales is levied 

•Half of revenues are used for Bogotá‟s TransMilenio System 

•Private vehicle owners finance one third of a mass transport system 

•72% of passengers belong to low income citizens


1. Fuel Taxes and Surcharges 

Retail Prices of gasoline in US cents per litre, 2008 

Figure by GTZ, 2009 

“As a rule of 

thumb, a level of 

revenue equal to 

10 -15 US cents 

per litre of fuel is 

usually adequate 

to cover the costs 

of maintenance 

for the whole road 

network of a 

country. 

Mechanisms must 

be placed to 

channel such 

national-level 

resources also to 

the local level.”


2. Vehicle related Taxes and Charges 

Tax or charge on car ownership 


• Taxes are very flexible, can be 

varied depending on engine size, 

carbon emissions, environmental 

standards, income, weight or 

number of axes 

• Taxes are able to reflect 

externalities 

• Political acceptability may be 

problematic 

Considerations: 

• Liaise with central government to set the optimal tax for the local context 

• Differentiate the charge to reflect external costs



EU countries 

• 17 of the EU„s 27 member 

states meanwhile apply CO 2 – 

based car taxation 

• 15 countries also offer cash 

incentives for buying electric 

vehicles



Overview ( Car taxation in France) 

Eco Bonus 

CO² Emission Rate 

(Grams/Km) 

Amount 

2010 2011 2012 

≤60 5 000 5 000 5 000 

>60≤90 1 000 1 000 1 000 

>90≤95 1 000 1 000 700 

>95≤100 700 700 700 

>100≤105 700 700 700 

>105≤110 700 700 700 

>110≤115 700 700 200 

>115≤120 200 200 200 

>120≤125 200 200 0 

>125≤130 0 0 0 

Source: http://www.french-property.com/news/money_france/car_emission_tax_bonus/ 

Eco Penalty 

CO² Emission Rate 

(Grams/Km) 

Tax Amount 

2010 2011 2012 

≤150 0 0 0 

>150≤155 0 200 200 

>155≤160 200 750 750 

>160≤165 750 750 750 

>165≤190 750 750 750 

>190≤195 750 1 600 1 600 

>195≤200 1 600 1 600 1 600 

>200≤240 1 600 1 600 1 600 

>240≤245 1 600 2 600 2 600 

>245≤250 2 600 2 600 2 600

Financial: Local Instruments 

1. Road Pricing/Congestion Charging 

Direct charging for using public road 

space 

Types: 

• Cordon pricing 

• Time-independent tolling 

• Electronic road pricing 


• Directly charges use of scarce public 

space 

• Flexibility 

• Leads to reduction of congestion, 

pollution, noise, traffic accidents 

• political acceptability often difficult 

Photo by Liamond 

Photo by Carlos F. Pardo 

Considerations: 

• Revenues should be used for 

public transport improvements to 

foster a modal shift and increase 

of public and political 

acceptability


1. Road Pricing/Congestion Charging 

Impacts 1 (Congestion Charging in London) 

Traffic 

20% 

(-20,000 veh/day) 

37% 

(17 km/hr) 

Travel 

Speed 

Congestion 

Delay 

30% 

14% 

Bus 

Ridership 

72% 

Bicycle 

Use 

+ 

- 

1 in the monitoring period after implementation


1. Road Pricing/Congestion Charging (II) 

Impacts 1 (Congestion Charging in London) 

+ 

Taxi 

Travel 

Cost 

-20-40% 

Bus 

Congestion 

Delay 

50% 

Air 

Pollution 

16-19% 

4.7% 

Retail 

Activity 

Road 

accidents 

70 less 

per year 

1 in the monitoring period after implementation


2. Parking Management 

�Increased parking supply means more 

driving 

�Restraining parking supply, boosting 

parking cost helps reduce driving 

�Limits set on parking supply in many 

places. Not minimum but maximum 

parking standards. 

�Bollards installed to limit sidewalk 

parking (Bogota, Columbia) 

�Information-based parking 


management in Europe, US, Japan

Measure it, Manage it, Price it 

�Parking regulation, management, enforcement, pricing is 

key TDM strategy – needs legal, institutional support 

�London sets parking charges to keep average 85% 

occupancy 


Illegally parked cars block bikeways 

and sidewalks in Changzhou

Transport demand management: 

Regulatory controls 

Prohibition on motor vehicles from being driven into 

central areas on certain days of the week 

“Odd-even” or other licenseplate 

based schemes attempt 

to keep each vehicle from 

being driven 1-2 days a week 

•Mexico City 

•Bogota 

•Sao Paulo 

•Manila 

Multiple side-effects limit their 

effectiveness

Making number plate restrictions work 

Mechanisms to avoid purchases of second cars 

(otherwise, number plate restrictions can encourage 

used car purchases) 

1. Apply restriction to peak periods only 

2. Ban four numbers each day (instead of 

two) 

3. Change number combinations quarterly 

or bi-annually 

4. Vehicle registrations at the same 

address receive same ending plate 

number 

5. Require new number plates for used 

car purchases

Socialization and Marketing: 

Building Public Support 

�Consumption patterns, attitudes respond to 

marketing, education, choices, pricing 

�Community and private sector involvement key 

to winning acceptance of reforms

Car Free Days 

�Changing cultural & institutional perceptions 

�Showing biking as fashionable, high status activity and 

good fun for middle and upper class 

�Building economic development opportunities, support 

for bikeway development 

�Good models: Bogota, Curitiba

Today leaders will put TDM at the heart of their efforts 

to foster healthy, economically successful cities 

3

Transportation Demand Management (TDM) 

Training document 

Contents 

• Road Pricing and Congestion 

Charging 

• Parking measures 

• Physical restraint measures 

• Fuel pricing, vehicle taxation, 

environmentally oriented taxation 

• Land use 

• Public transport 

• Case studies of TDM measures 

Available in English and Spanish 

Free download at 

www.sutp.org

For more information and documents 

www.gtz.de/transport 

www.gtz.de/fuelprices 

www.gtz.de/climateandtransport 

www.gtz.de/roadsafety 

www.sutp.org

GIZ SUTP project 

sutp@sutp.org 

transport@giz.de

Manfred Breithaupt

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