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5. Operational efficiency, public transport fares, asset condition and payment technologies
5. Operational efficiency, public transport fares,
asset condition and payment technologies
5.1 Introduction and contents
The preceding chapters have looked in detail at trends in travel demand and
transport operational performance in London, thereby quantifying the changing
context and background to the MTS, in terms of aggregate travel demand and
transport supply.
The following six chapters cover the wider canvass of MTS objectives. This chapter
looks at aspects of TfL’s operational efficiency, covering outcomes relating to TfL’s
operating costs and asset management, trends in public transport fares levels and
changing payment technologies.
5.2 Key trends – operating costs, asset condition and public
transport fares
Over the period since 2008/09, TfL has significantly reduced operating costs per
passenger kilometre, reflecting real efficiencies in operations and the strong growth
in patronage on the public transport networks. Asset condition, in terms of the
average age of key assets, has been maintained, although very significant ‘step’
changes such as the wholesale replacement of the train fleet on the sub-surface
Underground lines, are counterbalanced by the wider ageing process that affects all
of TfL’s assets. This highlights the point that continued investment is needed just
to stand still.
• TfL’s operating costs, measured in passenger kilometre terms, reduced over the
period between 2010/11 to 2014/15 – that for which comparable
measurements are available. This reflects both actual efficiencies in terms of
how TfL provides and operates services, but also a rapid growth in passenger
demand.
• Gross expenditure on operating services in 2014/15 was £4.7bn, compared with
£4.1bn in 2010/11, with gross operating costs per passenger kilometre of 23
pence respectively. In terms of net expenditure, TfL spent £401m in 2014/15
(equivalent to 2 pence per passenger kilometre) against £702m in 2010/11
(equivalent to 4 pence per passenger kilometre). Passenger kilometres grew by
15 per cent over this period.
• TfL is a public body, with no shareholders or parent companies, which means
we can reinvest all surplus income in the transport network. For every pound we
receive, 65 per cent is spent on operating the network, and 35 per cent on
improving it for the future.
• The percentage of TfL’s key assets deemed to be in ‘good’ condition (this
measure mainly relates to asset age and not to safety-critical aspects) has been
maintained at around 90 per cent consistently over the period since 2008. This
reflects continued investment in new infrastructure and the inevitable fact that
all assets age with the passage of time.
• Real public transport fare levels increased in the latter years of the last decade
but have been relatively stable over more recent years. Real fares in 2014, based
on a weighted average indicator across the main public transport networks,
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