[sustran] Re: UK Funding switch from Light Rail to Busway

[Brendan Finn]

For what it's worth :

In Dublin we will soon have two new tram/LRT lines in operation. The UK
National Audit seems to have triggered a little freedom of information here.

The Rail Procurement Agency (RPA) has entered into a contract with CONNEX
who will operate the system. We are told that this contract will have a
value of 20 million Euro per year. We are also told that the forecast
carryings are 20 million passengers per year, and the forecast revenue
(collected by RPA) is 20 million Euro per year. Following the UK National
Audit, the RPA has assured us that the forecasting was done to
"international standards" - whatever these actually are.

The "optimistic" forecast, therefore, is that revenues barely cover direct
operating cost. "Optimistic" means that there is zero contribution to the
700 million Euro plus investment, zero contribution to the maintenance costs
(not in the CONNEX contract), zero contribution to customer-facing services
such as ticketing and information, and zero surplus for future development.
Incredibly, that's the "optimistic" version based on the "international
standard" forecasts.

Forgive my cynicism as I point out that the capital investment on these two
LRT lines is equivalent to 4 years total costs (note : full costs, not
subsidy) for the bus network which always has and always will carry the vast
majority of public transport passengers in Dublin. It is also about 10 times
greater than the extensive and excellent Quality Bus Corridor Network which
is well under way.

Trams are very nice to use, and it was very considerate of previous
generations to make the investments for many cities. They are truly a legacy
to any city. However, transport professionals should maintain their
integrity and not pretend either that they make economic sense or that they
are the most effective mobility solution, especially when compared with the
very best bus-based alternatives.

With best wishes,

Brendan Finn.
_______________________________________________________________________
Contact details are : e-mail : etts at indigo.ie   tel : +353.87.2530286
----- Original Message -----
From: "Alan Howes" <Alan.Howes at cbuchanan.co.uk>
To: ">" <SUSTRAN <sustran-discuss at list.jca.apc.org>
Sent: Monday, April 26, 2004 10:20 AM
Subject: [sustran] Re: UK Funding switch from Light Rail to Busway


I never suggested anyone should rely on the UK government's viewpoint (I
gave that up myself a long time ago).  I gave the information so that people
could find out why the UK government is doing what it is doing.

My own view, FWIW, is that UK government policy has switched from being too
much pro-tram to being too much anti-tram - such abrupt policy changes are
not helpful, but are unfortunately all too common.

But I also feel that where cash for transport investment is scarce, as is
often the case in the developing world (but should NOT be the case in the UK
which is crying out for better transport infrastructure), bus-based systems
can often offer better value for money than rail-based ones.  An over-short
summary of my views, but I don't have time for more at present.

Alan

--
Alan Howes
Associate Transport Planner
Colin Buchanan and Partners

4 St Colme Street
Edinburgh      EH3 6AA
Scotland
email:  alan.howes at cbuchanan.co.uk
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>>> Eric Bruun <ericbruun at earthlink.net> 25/04/04 23:09:06 >>>

Normally, I just read and learn from this discussion group. But this is the
second time in the recent past that I simply have to say something.

The UK is a very special case. The Central Government's definition of what
is good performance is not the same as in Europe or in North America.
Because of the Private Finance Initiative, the rates of return required are
higher than for public projects. Projects also might be based on the
investors getting some of the fare revenue. The Croydon Tramlink in London
would be considered a success elsewhere, but it is not a financial success
for the private investors through no fault of their own. Transport for
London sensibly is introducing Smart Cards with integrated fares, so that
there are fewer fares collected than anticipated, but the investors are not
being compensated for this change of plans.

This experience is causing potential investors to be cautious. It is not
helped by the fact that the Government doesn't allow coordination with bus
networks so that there may be massive duplicative service.

The last two issues of Urban Transport International have had interesting
articles about this. I would not rely only on the Government's viewpoint.

Eric Bruun



-----Original Message-----
From: Alan P Howes <alan at ourpeagreenboat.co.uk>
Sent: Apr 25, 2004 9:54 PM
To: sustran-discuss at list.jca.apc.org
Cc: Jerry Schneider <jbs at peak.org>
Subject: [sustran] UK Funding switch from Light Rail to Busway

That's two people now who have asked about the above.  Most of the
coverage I have seen of this is in the UK specialist magazines Local
Transport Today and Transit - neither of which publish on-line.
Though I will see if I can find an article to scan.

There's some fairly good coverage though, on the BBC website at
http://news.bbc.co.uk/1/hi/uk/3651587.stm  Useful links to follow too.

Another source is the UK Department for Transport website.  It's big,
and I haven't yet found a definitive article.  But if you take a look
at -
http://www.dft.gov.uk/pns/DisplayPN.cgi?pn_id=2003_0170
[UK DfT > Home > Local Transport > Local transport plan - process and
initiatives > Local transport capital settlements > Local transport
plans settlement - December 2003]
you will find details of DfT capital grants for local transport.  Lots
of busways - no trams!  If you dig around on the DfT site you might
find more.

Then, hot off the press (April 23rd) there is a report from the UK
National Audit Office at http://www.nao.org.uk/pn/03-04/0304518.htm

I haven't had time as yet to read the exec summary, let alone the full
report.  But basically it is pointing out the fact that tram schemes
in the UK have mostly fallen short of meeting planned performance, and
looks at why.

Regards, Alan
--
Alan P Howes, Perthshire, Scotland
alan at ourpeagreenboat.co.uk
http://www.users.zetnet.co.uk/alanhowes/  [Needs Updating!]