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<DIV><FONT size=2 face=Arial>Dear Sujit, </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>I completely agree with you that it depends on the
objectives. This is why I stressed in my first posting the importance of talking
to the customers. We need to understand what is important to them and their
relative priorities. This applies to all of us 'experts' - city
authorities, bus operators, planners, researchers, consultants, and
advocacy groups.</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>If the customers tell us that air-con,
low-floor, modernity and self-image are the most important things, then we must
focus on quality and spend more on each bus. But if they tell us that what is
important is to be able to get to many different places (i.e. more routes in a
well developed network) or that they want more frequent services, or they want
less crowding, or they want cheap tariffs, then we probably need to focus more
on volume. Of course, we have different groups of customers using the same
services, and they are likely to have different priorities each from the other.
</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>We have to consider those who already travel with
us; those who are eager to use the public transport if we make it more
available to them; and those who today don't desire to use public transport
and it is up to us to make it attractive to them. How do we balance these
interests?</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>I believe that there is no single 'right answer' to
this. The value of a forum like Sustrans is that we can share our views and
experiences. Ideally this would give us a broader perspective when we are faced
with bus investment decisions. </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>With best wishes, </FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><FONT size=2 face=Arial>Brendan.</FONT></DIV>
<DIV><FONT size=2
face=Arial>_______________________________________________________________________________________________________________<BR>Brendan
Finn e-mail : <A
href="mailto:etts@indigo.ie">etts@indigo.ie</A>
tel : +353.87.2530286</FONT></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=patwardhan.sujit@gmail.com
href="mailto:patwardhan.sujit@gmail.com">Sujit Patwardhan</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=etts@indigo.ie
href="mailto:etts@indigo.ie">Brendan Finn</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Cc:</B> <A
title=adhiraj.joglekar@googlemail.com
href="mailto:adhiraj.joglekar@googlemail.com">Dr Adhiraj Joglekar</A> ; <A
title=sustran-discuss@list.jca.apc.org
href="mailto:sustran-discuss@list.jca.apc.org">sustran-discuss@list.jca.apc.org</A>
; <A title=litman@vtpi.org href="mailto:litman@vtpi.org">Todd Alexander
Litman</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Friday, June 19, 2009 9:02 PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [sustran] Re: How much money
should we spend on nicer buses?</DIV>
<DIV><BR></DIV><BR>It depends on ones objectives. Even when the priority is
for improvement of the basic city bus service, one must understand that
introduction of better quality, semi-low floor or low floor buses, AC buses
and even BRT are perfectly valid efforts that deserve to be supported by
Citizens/NGOs involved in sustainable transportation advocacy. It's not enough
to say that one can buy three ordinary buses for the cost of one high quality
AC bus. <BR><BR>This is because the poor image of bus based public transport
needs an urgent make-over if it is to win the support and ridership from the
elite class of citizens, who today are strongly pushing for more and more
infrastructure for the automobile dominated transportation model - such as
flyovers, elevated roads, and free/cheap parking facilities - all of which
work against NMT and Public Transport. <BR><BR>--<BR>Sujit<BR><BR>
<DIV class=gmail_quote>On Sat, Jun 20, 2009 at 12:53 AM, Brendan Finn <SPAN
dir=ltr><<A href="mailto:etts@indigo.ie">etts@indigo.ie</A>></SPAN>
wrote:<BR>
<BLOCKQUOTE
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class=gmail_quote>
<DIV bgcolor="#ffffff">
<DIV><FONT size=2 face=Arial>Dear Todd, </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>I think we are facing one of the big
differences between bus operations in the Western economies and in so-called
'Global South', which is the area primarily under discussion in the Sustran
forum. </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>In both cases the bus industry is
labour-intensive - even more so in 'Global South' - but labour rates in
Western economies are many multiples of their counterparts in other
parts of the world. In many countries labour and fuel do indeed account for
almost 100% of the costs. However, this is often because the companies
are operating fully depreciated vehicles - which would be considered
life-expired elsewhere - and the operators are avoiding proper
maintenance costs.</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>In my experience (and I very much welcome other
views) four issues are faced in Global South that are not so important in
the developed/high-wage economies:</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>1) The cost of new and higher quality vehicles,
along with more expensive maintenance requirements and spare parts,
represents a much higher proportion of the total costs. From the payback
viewpoint, a single fare might cost $1.00 in USA and $0.10 or less in
Africa or parts of Asia. It takes the revenue of 10 passengers in
many African/Asian cities to match the revenue from 1 North
American or European passenger, but the bus and the spare parts cost the
same amount in both countries. </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>2) Capital for investment is usually not
available under the same payment terms. In 'Global South', bus operators are
often required to make the repayments over a short period (e.g. 3-5
years) at higher interest rates, with a significant deposit, and sometimes
with unreasonable collateral requirements. This means that a lot more of the
daily earnings go to bus repayment in the early years, even if you do fully
own the bus after 5 years. However, you might have gone bankrupt in the
meantime. </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>3) Availability of finance is tougher, and
quite often it is not possible to raise enough finance to meet what you
would like to do. This forces many cities/operators to choose between (a) a
smaller number of high-quality buses insufficient to meet the need - leading
to unmet demand or keeping the bad-quality vehicles in circulation for a few
more years; or (b) going for a higher number of lower-cost buses that meets
the need and brings in more revenue immediately. </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>4) There is less security of tenure, of
necessary tariff increases, of subsidies, of reimbursement for free/reduced
rate passengers, of protection from encroachment and illegal operation.
In some cases there may be disruption of social order and
stability. The more you spend and the longer your payback period, the more
vulnerable you become. </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>The above are, of course, generalisations.
Data on any of these aspects from our Sustran colleagues would be most
welcome. This would be a good opportunity for some of our 'silent' members
to share their knowledge with us. </FONT></DIV>
<DIV class=im>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>With best wishes, </FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>Brendan.</FONT></DIV>
<DIV><FONT size=2
face=Arial>_______________________________________________________________________________________________________________<BR>Brendan
Finn e-mail : <A
href="mailto:etts@indigo.ie"
target=_blank>etts@indigo.ie</A>
tel : +353.87.2530286</FONT></DIV></DIV>
<DIV>
<DIV></DIV>
<DIV class=h5>
<BLOCKQUOTE
style="BORDER-LEFT: rgb(0,0,0) 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV
style="FONT: 10pt arial; font-size-adjust: none; font-stretch: normal">-----
Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: rgb(228,228,228); font-size-adjust: none; font-stretch: normal; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial"><B>From:</B>
<A title=litman@vtpi.org href="mailto:litman@vtpi.org" target=_blank>Todd
Alexander Litman</A> </DIV>
<DIV
style="FONT: 10pt arial; font-size-adjust: none; font-stretch: normal"><B>To:</B>
<A title=adhiraj.joglekar@googlemail.com
href="mailto:adhiraj.joglekar@googlemail.com" target=_blank>Dr Adhiraj
Joglekar</A> ; <A title=sustran-discuss@list.jca.apc.org
href="mailto:sustran-discuss@list.jca.apc.org"
target=_blank>sustran-discuss@list.jca.apc.org</A> </DIV>
<DIV
style="FONT: 10pt arial; font-size-adjust: none; font-stretch: normal"><B>Sent:</B>
Friday, June 19, 2009 7:46 PM</DIV>
<DIV
style="FONT: 10pt arial; font-size-adjust: none; font-stretch: normal"><B>Subject:</B>
[sustran] Re: How much money should we spend on nicer buses?</DIV>
<DIV><BR></DIV><FONT size=3><BR>I think it is very important to start
improving public transit service quality, including nicer buses, reduced
crowding, faster and more reliable service, nicer waiting areas, and
amenities such as on-board wireless services. Unfortunately, many transit
service performance indicators (such as cost per vehicle-kilometer or
passenger-trip) encourage cost minimization rather than service
maximization. If we fail to improve service quality we are encouraging
economically successful travelers to purchase a car and abandon public
transit because the system is only intended to serve the lower end of the
market.<BR><BR>The largest costs of public transit service are labor and
fuel. Vehicle capital costs represent 5-10% of total service costs. If
spending a little more on the vehicle improves service reliability or
attracts more riders (particularly discretionary travelers who would
otherwise drive) it is a worthwhile investment. <BR><BR><BR>Best
wishes,<BR>-Todd Litman<BR><BR><BR>At 08:01 AM 19/06/2009, Brendan Finn
wrote:<BR></FONT>
<BLOCKQUOTE type="cite"><FONT size=2>Good points raised by Adhiraj. What
it comes down to is which value-set drives the decision-taking process.
Do we spend a lot of money needlessly for the brand name and the fancy
stuff? Or do we spend money wisely where we balance quality and
long-life against the possibility to buy and deploy a larger number of
less-expensive models? <BR></FONT><FONT size=3> <BR></FONT><FONT
size=2>Before comparing the merits, I think we have to acknowledge that
the expectations of users has risen a lot compared to when we were
growing up. People do want air-con in hot climates and they want buses
that don't break down. Cities demand buses with clean(er) engines and
fuels, although often the pressure for this comes from donors. Even at
the lower end, buses and engines have become more sophisticated, and all
the extra bits make them more expensive. That said, there has been a
huge advance over the past decade in the quality of the buses coming
from China and India, so you really do have high-cost and low-cost
options for most situations. <BR></FONT><FONT
size=3> <BR></FONT><FONT size=2>In my opinion, there are three main
factors to consider: <BR></FONT><FONT size=3> <BR></FONT><FONT
size=2>1) What do the people want? What do they demand as a minimum
acceptable standard, what are their aspirations, and is there such a big
gap in price to go from acceptable minimum to something that makes them
feel good? There is only one way to find out and that is to consult with
the current and target future users. It sounds so obvious, but how many
city authorities and bus operators actually consult their customers? How
many truly try to understand what features they like and hate about the
buses they have today, what would they like to keep, what are they
crying out to change? Where do we waste money on features that do not
interest the customer and where do we waste good opportunities that make
people happy and cost little? <BR></FONT><FONT
size=3> <BR></FONT><FONT size=2>2) What is the life-time cost of
the vehicle, including maintenance, spare parts, fuel consumption,
offset by its residual/resale value after 10-12 years? How important and
what is the economic value of reliability in the later years of the
vehicle life, so that a vehicle gives the same performance in its 10th
year as in its first? Traditionally, this is where Volvo, MAN, Mercedes
and some other makes gave an overall lifetime benefit. How much ground
have the Chinese, India, Korean and other brands caught up in the
cost-quality curve?<BR></FONT><FONT size=3> <BR></FONT><FONT
size=2>3) What can we afford compared to the urgency of the task to be
undertaken? If a city desperately needs 1,000 buses
additional/replacement buses, is it better to solve the supply-side
issue now with low-cost/lower-performance vehicles, in full knowledge
that many of these vehicles may only have a 5-7 year economic life and
have to be replaced relatively soon? But we can offset the shorter life
by the opportunity to develop the business and revenue streams now that
will provide the affordability of better quality buses later.
<BR></FONT><FONT size=3> <BR></FONT><FONT size=2>I don't think
there is a universal right answer for this, despite the many inflexible
"orthodoxies" we hear. As always, each city needs to assess its own
situation. In some cases the more expensive bus might turn out to be the
best solution, in others we might find we can do a lot more with scarce
investment money.<BR></FONT><FONT size=3> <BR></FONT><FONT
size=2>For me, this discussion highlights the importance of following up
on previous bus investment projects. We need to evaluate the actual
outcomes compared to the original objectives and justifications. We need
to learn where they vary from our original expectations (for good or
bad), and share that knowledge among practitioners and decision-takers.
<BR></FONT><FONT size=3> <BR></FONT><FONT size=2>With best wishes,
<BR></FONT><FONT size=3> <BR> <BR></FONT><FONT
size=2>Brendan.<BR>_______________________________________________________________________________________________________________<BR>Brendan
Finn e-mail : <A
href="mailto:etts@indigo.ie" target=_blank>etts@indigo.ie</A>
tel :
+353.87.2530286<BR></FONT><FONT size=3> <BR></FONT><FONT
size=2>----- Original Message ----- </FONT><FONT size=3><BR></FONT><FONT
size=2>From: "Dr Adhiraj Joglekar" <<A
href="mailto:adhiraj.joglekar@googlemail.com" target=_blank>
adhiraj.joglekar@googlemail.com</A>><BR>To: <<A
href="mailto:sustran-discuss@list.jca.apc.org" target=_blank>
sustran-discuss@list.jca.apc.org</A>><BR>Sent: Monday, June 15, 2009
1:12 PM<BR>Subject: [sustran] Re: Beijing to build "public transport
city"<BR></FONT><FONT size=3><BR></FONT><FONT size=2>>I find the
comments from Carlos very interesting. Yes, more investment needs to
happen in public transport but sometimes one has to wonder if the monies
are being put in the right place. For example, the general push in India
is to invest in better buses - but how does one define a 'decent bus'? I
grew up using buses in Mumbai, these cost a fifth or so of Volvo buses
that seem to be the craze for now. I never felt the buses in Mumbai were
any inferior in cleanliness or the comfort - they used to sport
cushioned seats with green leather like upholstery. Having travelled on
London buses for past 8 years and being a medic I can say the
Mumbai buses had seats that did more justice to one's spine than the
reclined back rests that are increasingly common.<BR>> <BR>>
Coming to the point - the whole idea of spending on a Volvo is justified
by authorities on the basis of a policy called differential pricing -
i.e. posh buses will pull posh people out of their cars and<BR>> that
they will be happy to spend more on the tickets.<BR>> <BR>> On
paper, this may seem logical, but I have yet to see evidence of people
leaving their cars simply because the bus is a Volvo and now has an
aircon in it. If anything the regular loyal bus user shifts to<BR>>
these buses and pays more or indeed the train users in Mumbai who are
fed of super-ultra-crush loads switch to buses.<BR>> <BR>> I find
public transport a great equaliser of sorts, its great to see someone in
a decent suit sitting next to someone who may be struggling to get food
to the table each day. But ethical and moral reasons<BR>> apart, one
needs to know for sure if people switch to PT only because it got
'nicer'.<BR>> <BR>> I would be interested in knowing if there is
research in this regard elsewhere which rules out people switching to PT
due to confounders such as simultaneous improvement in route and
frequency<BR>> rationalisation or TDM measures like congestion
charging.<BR>> <BR>> Cheers<BR>> <BR>> Adhiraj<BR>>
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