Operating Subsidies in Urban Public Transit in Latin America: A Quick View

2020 ◽  
Author(s):  
María Eugenia Rivas ◽  
Juan Pablo Brichetti ◽  
Tomás Serebrisky

Operating subsidies to urban transit systems are ubiquitous in Latin America, and most systems lack transparency about them. In 2019, the level of subsidization ranged from 26 percent of transit systems total operating revenue to 69 percent. Although demand-size subsidies are better at targeting beneficiaries, most subsidies in the region are supply-side subsidies (subsidies provided to transit system operators). Both demand-side and supply-side subsidies may be needed to ensure that services are affordable, including to middle-income users. The restructuring of public transit subsidies provides an opportunity to improve the efficiency of transit systems and ensure that subsidies benefit those who need them most.

Author(s):  
Paul Schimek

Public transit systems in Toronto and Boston, two North American cities of similar size and income, are compared. Although Boston has a reputation as a transit-oriented city, there are about twice as many public transit trips in Toronto. Transit service in Toronto runs, on average, twice as frequently as service in Boston on a network of similar size. This level of service can be supported in part because population density does not decrease as much with increasing distance from the center of the city and because employment is more centralized. The transit system in Boston is constrained from emulating the Toronto transit system not only by a less transit-favorable distribution of population and employment but also by operating costs that are twice as high. The Massachusetts Bay Transit Authority’s higher costs are the result of more fringe benefits for employees and disproportionately more managers and fixed facilities.


Author(s):  
Paul Sousa ◽  
Eric J. Miller

This paper presents a new funding model for urban transit systems. The model is performance driven in that it captures the performance of transit systems in attracting riders in a cost-effective manner and recognizes that transit system funding needs vary with transit systems’ scale of operations. The model also allocates funding on a weighted per capita basis and thereby addresses equity concerns. Recent data for Canadian transit systems are used to illustrate the application of this funding model to real-world operations.


2015 ◽  
Vol 2533 (1) ◽  
pp. 141-148 ◽  
Author(s):  
Ranjit Prasad Godavarthy ◽  
Jeremy Mattson ◽  
Elvis Ndembe

The true value of transit systems in rural and small urban areas in the United States has been largely unmeasured, and there are often effects that go unidentified. Many studies have documented the benefits of urban transit systems with benefit–cost analysis. However, not many have looked into the benefits of transit in rural and small urban areas, where there is a great need for public transit, especially for transportation-disadvantaged individuals. This study focused on evaluating the qualitative and quantitative benefits of rural and small urban public transit systems and analyzed the benefit–cost ratio for rural and small urban transit areas for fixed-route and demand-response services in the United States. Data for rural and small urban transit systems from the national transit database (NTD) and rural NTD were used for calibrating the transit benefits and costs. Results were presented at a national level to show the effects of transit investments in rural and small urban areas nationally. Transit benefits in the United States for 2011 were found to be $1.6 billion for rural transit and $3.7 billion for small urban transit, not including the economic effects. Results showed a benefit–cost ratio of 2.16 for small urban transit and 1.20 for rural transit in the United States. Sensitivity analysis showed that increasing the percentage of forgone trips to 50%, increasing the cost of forgone medical and work trips by 25%, and increasing the percentage of medical trips to 30% substantially increased the total transit benefits by 88%, 20%, and 158%, respectively.


2012 ◽  
Vol 39 (8) ◽  
pp. 915-924 ◽  
Author(s):  
Behzad Rouhieh ◽  
Ciprian Alecsandru

Over the past couple of decades the advancements in the areas of information and computational technology allowed for a variety of intelligent transportation systems developments and deployments. This study investigates an advanced traveler information system (ATIS) and (or) an advanced public transit system (APTS) adaptive and real-time transit routing component. The proposed methodology is applied to bus routes with fixed, predefined bus line alignments. It is shown that routing buses on such systems can be modeled in real-time by employing an associated Markov chain with reward model to minimize the impact of congested traffic conditions on the travelers and the overall operation cost of the transit system. A case study using a traffic and transit data from a real-world bus line was used to apply the proposed bus routing approach. It was found that under certain traffic congestion conditions buses should be re-routed to minimize their travel time and the associated system costs. The hypothetical congestion scenarios investigated show that individual bus travel time delays range between 50 and 740 s when the proposed adaptive routing is employed. The proposed methodology is also suitable for application to transit systems that run on a demand-adaptive basis (the bus line alignment changes with the travelers demand). Additional calibration and future integration of the system into specific ATIS and (or) APTS user services will be investigated.


Significance The inefficiency and poor quality of the public transit network has allowed start-ups in this area to grow. Millions of dollars’ worth of investments have recently been secured by companies operating in the rapidly expanding sector, which target middle-income segments of society looking for better quality affordable transportation. Impacts Less traffic congestion will increase productivity and reduce pollution. Ride-sharing will reduce government spending on energy subsidies. Convenient ride options will increase the demand for real estate in satellite cities currently underserved by the public transit system.


Author(s):  
Genís Majoral ◽  
Francesc Gasparín ◽  
Sergi Saurí

The number of e-commerce transactions is increasing worldwide. Deliveries of goods purchased online generate externalities throughout the whole supply chain and, particularly, the increasing concern about the last-mile distribution of goods. The escalating presence of vans in cities contributes to poor air quality, climate change, noise, and congestion. So far, the majority of solutions to address this issue are based on the supply side, such as electric vans, optimizing the routing and pick-up-points, and so forth. Even in other transport sectors, pricing solutions are well known, yet they have not been extended to e-commerce delivery. This paper aims to propose an environmental tax falling on the demand side and equaling the externalities from this activity. The analysis has been particularized for the case of Barcelona. A cost–benefit analysis to assess the impact of such a tax has been carried out. When revenue collection is reinvested in the logistics sector, and for subsidizing electric distribution vehicles, the results indicate that the levying of the tax can generate positive outcomes.


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