0
Jorge Rebelo
Four Pillars for Urban Transport Sustainability in Large
Metropolitan Regions of Latin America:
Issues and Options
SHAPING TRANSPORTATION
18 - 19 June 2013, London
1
Presentation contents
Relevance of urban transport interventions
Main urban transport problems in large and medium-size
cities of Latin America Cities
Strategy to improve urban transport: The four pillars
Examples from World Bank portfolio
Conclusions and Recommendations
2
Presentation contents
Relevance of urban transport interventions
Main urban transport problems in large and medium-size
cities of developing countries
Strategy to improve urban transport: The four pillars
Examples from World Bank portfolio
Conclusions and Recommendations
3
High levels of urbanization in the developing world Ever-growing share of countries GDP generated in cities Cities concentrate big pockets of poverty Positive link between economic growth and urbanization, between transport efficiency and labor market efficiency.
Relevance at the macro level. Impact on economic growth
Potential gains from urbanization are sensitive to local conditions
Local public services affect business costs in cities, and thus the potential
gains from agglomeration
Urban Transport is one of these crucial public services
4
Long travel times, up to three hours per day in big cities Low quality transport generates social exclusion, poor accessibility to job opportunities, to schools, to hospitals, etc.
Urban transport represents a high % of households expenditures (higher than all other utilities combined, up to 25% in São Paulo)… except for the poorest who end up not traveling at all or walking / bicycling.
Relevance at the micro level. Impact on poverty.
Santiago: 40% of the poor walk (compared
to less than 10% for the upper quintile).
Same numbers in São Paulo
0
10
20
30
40
50
60
70
80
90
1 2 3 4 5
Quintil de gasto
Gasto
absolu
to (
$/m
es)
0
2
4
6
8
10
12
Gasto
porc
entu
al (%
gasto
)
Absoluto
1997
Absoluto
2002
Porcentual
1997
Porcentual
2002
Buenos Aires : % of household expenditures on urban
transport per quintile before and after the crisis.
[ mayor a 1.599.999 $]
[ 450.000 - 1.599.999 $]
[ menor a 450.000 $]
bus metro
auto otros caminata
5
Presentation contents
Relevance of urban transport interventions
Main urban transport problems in large and medium-
size cities of developing countries
Strategy to improve urban transport: The four pillars
Examples from World Bank portfolio
Conclusions
6
Your Task
Imagine that you are asked by your government ,
a financing institution or a consulting company
to assess the urban transport sector of a large or
medium size metropolitan region
What would you do ?
What are the issues you would identify and the
options you would offer to make the sector
sustainable ?
7
Most Likely you would identify the following problems:
Very High Congestion and high pollution due to road-based vehicles
Growth in Motorization Rates
Increasing Home-to-work travel times
Bus predominance
Small and inefficient suburban rail and metrorail networks
Increasing proliferation of informal transport and of motorcycles
No specific financing mechanisms
High environmental costs due to road based Transport
High number of accidents
High % of low-income salaries to pay for UT home-to-work trips
8
Most Likely you would identify the following problems:
Scarce money for maintenance of equipment and consequent progressive
degradation
No or little money for new investment and rehabilitation
Heavy involvement of government in operation of rail-based systems
Several levels of government (Federal, State, Municipal) involved with
conflicting objectives and no coordinating authority
Lack of Modal and Fare Integration and of uniform tariff and subsidy policies
Too many huge investment projects proposed by different levels of government
competing for scarce funds
Lack of Integrated Land Use, Urban Transport, Air quality strategy
No recent Origin-Destination Surveys
Lack of trained staff in Transport planning
9
A simple diagram illustrates the “vicious circle” of urban transportation in developing countries …
CARS MORE
ATTRACTIVE:
GROWING
MOTORIZATION
MORE
CONGESTION
AND DELAYS
PUBLIC
TRANSPORTA-
TION SLOWER
AND LESS
ATTRACTIVE
LESS DEMAND,
DECREASING
REVENUE,
HIGHER COST
PER PASS.
INCREASED
FARES,
REDUCED
FREQUENCIES
URBAN EXPANSION WITH
LOW DENSITY
INCREASED POLLUTION, ACCIDENTS and OVERALL
CONGESTION. LOWER GAINS of AGGLOMERATION,
NEGATIVE IMPACT on GDP GROWTH
POVERTY AND SOCIAL
EXCLUSION RISE OF INFORMAL
TRANSPORTATION
TRANSPORT OPERATORS
FINANCIAL CRISIS.
POSSIBLE NEED FOR SUBSIDIES
LEADING to ADDITIONAL FISCAL
BURDEN
The vicious circle
of urban
transportation
10
… and allows for the identification of several major, interrelated sector issues
RAPID URBANIZATION, GROWING CONGESTION,
POLLUTION AND NOISE
LACK OF COORDINATION BETWEEN LEVELS OF
GOVERNMENT IN METROPOLITAN REGIONS
THE ORGANIZATION OF BUS TRANSPORT
EXPLOSIVE GROWTH OF INFORMAL SECTOR (VANS)
LOW-INCOME USER: ACESSIBILITY, AFFORDABILITY,
AVAILABILiTY, ACCEPTABILITY
TARGETED VS. GENERAL SUBSIDIES
URBAN TRANSPORT PLANNING, FINANCING, STAFFING
MAIN
SECTOR
ISSUES
Inefficiencies within the urban public transport system generate negative social and environmental impacts, and weaken cities as growth engines
11
Rapid urbanization and motorization result in growing congestion, pollution and noise
Motorization: a major trend in developing countries. Automobile growth is high (+245% in
Santiago from 1991 to 2001) ; and induced by poor public transport.
Private automobile main producer of emissions. Trucks and buses very noisy
Congestion exists in major cities, and is responsible for substantial negative externalities
Limited road space is taken by private auto with very limited priority for public transit Increasing door-to-door travel times. NEED TO GIVE PRIORITY TO PUBLIC TRANSPORT
12
Lack of coordination between levels of Government in metropolitan regions
No formal metropolitan regions defined
No formal metropolitan coordination bodies
Need to use federal/national power to create these bodies to avoid duplication of efforts and
wastage at the metropolitan region level
Municipal buses, inter-city buses and rail/metro are not integrated neither physically nor tariff wise
CAPITAL FEDERAL
Commuter
Trains
FEDERAL
GOVMT.
PROV, OF
BS.AS.
LOCAL
MUNICIP.
CITY OF
BS. AS.
Taxicabs
Buses within Bs.As.
City
Buses City – Prov.
of Bs.As.
Buses between PBA
municipalities
Buses within PBA
municipalities
Metro
13
The organization of bus transport is inefficient and often not properly regulated
Private monopoly without competitive bidding, mainly permissions passed from generation to generation
Multiple routes; trend to oversupply and overlapping
Need for competitive bidding of routes
Bus vs. informal vans:
Duplication of routes, high tariffs, bus congestion, lack of hub-and-spoke services, no tariff integration
Formal
articulated
buses in
Bogotá
Informal
transport
in Lima
14
The explosive growth of informal sector (vans) complicates urban transport even further
Why are they multiplying? Lower price (tariffs reductions, financial aids), unemployment
Can they be turned into an ally rather than being seen as the enemy?
How can they be controlled ?
How can they be used to foster competition with the formal bus system and integration with rail?
They add to congestion if they don’t work as feeders, are more often than not illegal, are unsafe, stop where they want, don’t pay taxes, but people like them because they
are door-to-door transport
Lima
15
Low-income users often complain of lack of accessibility, affordability, availability and service acceptability
Huge concentration of poor/low-income users in the periphery of metropolitan areas or in pockets close to downtown
They spend over 20% of their net income in home-to-work trips
They often have money for one leg but cannot afford returning home
Access to closest public transport hard and unsafe
Availability is low
Leave very early to get to work return very late home: family problems
Sao Paulo
Number of walking trips almost
40% of daily trips, long distances
Non recipients of subsidies paying
almost 20-25% of their gross
incomes for UT
Users of trains mainly between 2
and 4 Minimum Salaries
As a result, access to employment, health and education facilities is becoming more and more difficult for the poor
Buenos Aires after the crisis
Poorest households switch out of
public transport towards walking
and cycling (12% first quintile)
Budget share absorbed by public
transport rises substantially among
lowest quintiles
16
Targeted vs. general subsidies
Targeted (vale-transporte) vs. blanket
The impacts of flat fares in large cities
What are the advantages and disadvantages of alternative subsidies to the poor?
How can subsidy fraud be controlled ?
Is the Bank willing to finance initial subsidies out of loan proceeds?
Targeted subsidies are theoretically better and they might be enhanced and better controlled by the smart card. But they must be offered to both formal and informal employees
17
Public urban transport financing is a major issue; in Latin America, the private sector has a relevant role
Where do the funds for investment, maintenance come
from when revenues are not sufficient to cover costs ?
Should we favor an urban transport fund ?
What are other financing mechanisms ?
How to establish financing priorities ?
Designing adequate and reliable urban transport
financing mechanisms is a priority in all LAC countries
Private Sector Financing
Traditional in the bus industry
Revenue perception, guarantees
Concession or Public-Private
partnership (PPP) laws
How to foster Private Sector
Participation ?
PPP are possible and desirable with
the proper risk mitigation and an
enabling environment for the PS as
well as a good regulatory agency
18
Presentation contents
Relevance of urban transport interventions
Main urban transport problems in large and medium-size
cities of developing countries
Strategy to improve urban transport: The four pillars
Examples from World Bank portfolio
Conclusions
19
The Approach to break the vicious circle is based on 4 main pillars which must be properly tailored to each metropolitan region
ESTABLISHMENT OF A
REGIONAL TRANSPORT
COORDINATION
COMMISSION
FINANCING MECHANISMS
TO ENSURE LONG-TERM
FINANCIAL
SUSTAINABILITY
PROGRESSIVE PRIVATE
SECTOR PARTICIPATION
IN OPERATIONS AND
INVESTMENT WITH
ADEQUATE REGULATORY
OVERSIGHT
This pillar will ensure that funds are available for investment and operation subsidies through general budget and other mechanisms created for that purpose
This Transport Authority will coordinate planning and policy and prioritize investments from different levels of government, as well as tariff and subsidy policies. It will also seek the necessary funding
This pillar is an attempt to decrease the burden on government and allow for the creativity of the private sector
INTEGRATED URBAN
TRANSPORT, LAND USE
AND AIR QUALITY
STRATEGY
This pillar will ensure a smooth coordination between urban transport investment and operations, land use policy and regulations and air quality policies
20
Pillar 1: Detailed Look
Coordination of transport planning with land use and air quality policies, at a regional level with representation of all levels of government, operators and users
INTEGRATED URBAN TRANSPORT,
LAND USE AND AIR QUALITY
STRATEGY
ESTABLISHMENT OF A
REGIONAL TRANSPORT
COORDINATION COMMISSION
• Best Examples in the World are : Madrid, Paris, London, Vancouver
•Best Practices in developing world: Recife, Lagos
•Representatives of 3 levels of government,
operators and users
•Prioritize project from the MR’s standpoint using
economic evaluation
•Ensure the necessary funding is available
•Establish uniform tariff and subsidy policy
•Promote modal and fare integration
•Update on a regular basis the Integrated Urban
Transport, Land Use and Air Quality Strategy
•Promote User participation in decision-making
through user surveys, state television
announcement of big projects, web contacts
21
Pillar 1- Some points to consider
Why is it so difficult to establish regional transport authorities
in most developing countries?
What are the problems that one faces when there is no
transport authority?
Do you have any suggestions for your country?
22
Pillar 2- A detailed look
INTEGRATED URBAN TRANSPORT,
LAND USE AND AIR QUALITY
STRATEGY
REORGANIZATION AND
IMPROVEMENT OF THE
URBAN TRANSPORTATION
SYSTEM
ORIENTED TOWARDS THE
POOR AND VULNERABLE
USERS
High capacity modes on trunk corridors:
BRT, rail transit, LRT
Intramodal and intermodal service
integration
Fare integration
Integrate Land Use with Transport in
several scenarios
Choosing the most adequate vehicles and
fuels
Evaluate noise , vibration and visual
intrusion of equipment and infrastructure
Parking Policy
Reorganizing network layout with formal
services over trunk and feeder corridors
Congestion pricing
Design networks targeting the poor
accessibility
Fare levels affordable by low income
users
Emphasis on non motorized transport
(pedestrians, bicycles)
Gender issues
Attention to disadvantaged groups
Examples of good Strategies: São Paulo (PITU), Santiago
(PTUS), Rio (PDTU)
23
Pillar 2- Some points to consider
You must tailor this pillar to the needs of your metropolitan region. For example, in most
developing countries the main issues are the reorganization of the public transport
system and the proliferation of informal transport and motorcycles and lots of
accidents. And of course the vulnerability of the poor to high costs and poor quality
of urban transport.
A common question is : Should we go for a BRT or for a rail-based solution?
This pillar is normally reasonably well dealt by most developing countries particularly
those which have a loan from a bilateral or multilateral institution because those
institutions require such a plan to lend.
It is here that the creativity of local planners may help in shaping the options according to
the needs of the main users of public transport in the metropolitan region.
The most common problem is not to find adequate data on Origin-Destination surveys and
costs . This makes demand modeling very difficult .
Also finding trained staff is a challenge Need for very powerful software linking urban transport, land use and air quality and
quicker data collection methods so that we do not waste so long to model the present
situation
24
Pillar 3- A Detailed Look
FINANCIAL MECHANISMS TO
ENSURE LONG TERM SUSTAINABILITY
• Budget and non budget
sources for financing capital
costs and subsidies if any
•Advertising
•Real Estate
•Urban Operations
Good Practices : São Paulo, Rio, Santiago, Medellín, France (versement-
transport); In the world: Hong Kong, Washington, Madrid, Barcelona,
Osaka, Tokyo
25
Pillar 3
Without timely funding , it is impossible to keep new investments and existing subsidized
operations going. Where do you find the money?
Normally it would come from the general budget of National, Provincial or Municipal budgets.
But often there is no money or it is too little.
If it comes from General Revenue , there are so many needs that often urban transport only
gets more money when there are crisis.
If there are earmarked funds , that is funds to be used just for urban transport, then in general
these funds are secured through a gasoline tax or a tax on salaries. Te problem is that
economists do not like earmarked funds.
One good example of earmarked tax is the “ versement transport” in France, a tax on the
payroll iof ech company with more than 6 people , which will beused for investments
Another is the “vale-transporte” which is paid by employers who pay the difference between
6% of gross salary and the actual costs of home-to-work trips for those employeees whose
travel costs exceed 6% of their gross income.
26
Pillar 4- A Detailed Look
PROGRESSIVE PARTICIPATION
OF THE PRIVATE SECTOR IN
OPERATION AND INVESTMENT
WITH REGULATORY
OVERSIGHT
• BOT, PPP,
•Concessions,
•Management Contracts
schemes in rail projects and
BRTs
Good Practices : São Paulo, Rio, Buenos Aires; In the world:
London, Sweden
27
Pillar 4-Some points to consider
Partnering with the private sector may allow the Government to reduce operating subsidies in an
existing operation (e.g, Rio de Janeiro and initially Buenos Aires)
May also provide funds that the Government does not have at a certain moment in time such as
the PPP for operations and maintenance with provision of rolling stock in the São Paulo Metro
Line 4 project.
But private sector participation demands that Government complies fully with its obligations the
same way that the private sector concessionaire must comply with its contract. This contract must
be monitored by a regulatory body.
If there is a failure in the compliance of obligations, the results can be catastrophic such as in
Buenos Aires concessions of some suburban rail
The regulatory authority is different from the transport authority and she must be capable of
being impartial in its judgments and wherever necessary penalize the State
Proper participation of the private sector could be a very efficient way of reducing subsidies and
/or postpone State investments, and at the same time be more responsive to the public needs.
28
Presentation contents
Relevance of urban transport interventions
Main urban transport problems in large and medium-size
cities of developing countries
Strategy to improve urban transport: The four pillars
Examples from World Bank portfolio (Latin America)
Conclusions
29
Projects in the portfolio are characterized by improvement of public transport service and infrastructure and its orientation to the poor,
addressing the other basic pillars with different emphasis
PROJECT
Lima Transport
Colombia Urban
Transport
Sao Paulo Metro Line
4
Recife (Brazil) rail
decen. Program
Buenos Aires Mass
Transit project
Santiago urban transport
Rio Mass Transit
projects
REGIONAL
TRANSPORT
COORDINA-
TION
partial
yes
partial
yes
low
partial
partial
STRATEGY
INTEGRATED
WITH LAND
USE, AIR
QUALITY
low
partial
high
yes
yes
high
high
EMPHASIS IN
FINANCIAL
SUSTAIN-
ABILITY
high
high
high
low
medium
high
high
PRIVATE
SECTOR
PARTICIPA-
TION
high
high
high
low
high
high
high
MAIN FEATURES
BRT (busway and feeders), non
motorized transport
BRTs in Bogotá and medium
size cities
Turnkey and concession of a
metro line
Suburban rail rehabilitation,
decentralization
Metro and suburban trains
rehabilitation, planning
Integr. transport system (metro,
buses, urban toll roads)
Suburban rail concession,
urban redevelopment
All projects promote the development of efficient public transport systems, which
are accessible, available, affordable and acceptable particularly for low-income
classes
30
In a simplified typology, World Bank urban transport operations can be categorized under three type of projects
Several cities in one
country
Strengthen national
authority and local
authorities
Mix urban development
and urban transportation
I.e.: missing links, paving,
sidewalks, lighting
Traffic light systems
Venezuela First Urban
Transport Project
Brazil First and Third
Transport Project
Mexico Medium Cities
Urban Transport Project
Focusing on one or
several corridors
BRT or rail mass transit
Integration with other
modes
Urban improvement in the
proximity
Private sector
participation
Non motorized transport
such as bikeways
Lima BRT
Colombia´s BRTs
Brazil CBTU rail
decentralization
São Paulo Metro Line 4
project
Integrated urban transport
system (operational and
fare integration)
Linked with air quality and
urban development
policies
Establishment of a
regional transport
coordination
Private sector
participation
Chile´s Transantiago
Main
Characteristics
Examples
Typology
MULTI – CITY
MULTIPLE TRANSPORT
COMPONENTS
MASS TRANSIT CORRIDORS
SINGLE CITY
INTEGRATED TRANSPORT
SYSTEM
31
Curitiba: the precursor-How do you go from a successful BRT system to a “metrorail system” in the same axis without affecting land use and providing smooth integration?
Segregated busways
and transit-oriented development
32
HOW DO YOU UPGRADE CAPACITY IN A SUCCESSFUL BRT SYSTEM
CORRIDOR?
33
Rio de Janeiro-PDTU
34
Rio de Janeiro: Integrating Metrorail, BRTs and Ferries
35
BOGOTÁ-Transmilenio established a new paradigm in the region and the world- How do you build BOGOTÁ’S first Metro Line and adequately complement Transmilenio?
Segregated
Busways
Dedicated bus
stations
Smart Cards Facilities for
persons with
disabilities
36
Infrastructure (State)
•Exclusive lanes
•Stations
•Accessways
•Parking Lots & Maintenance Shops
Operation (Private Sector)
•Operation companies
•Buses
•Operation Employees Collection System (Private Sector)
•Equipment
•Card Based
•Fiduciary Management
Plannning, Operation and
Control:
TRANSMILENIO S.A,
Alcaldía Mayor de Bogotá
TRANSMILENIO
Bogotá, Colombia
37
Lima BRT project followed the same principles as Transmilénio: How do
you connect this system with Lines 1 and proposed Line 2 of Metro
38
Santiago of Chile- TRANSANTIAGO …- How do you completely restructure the urban transport system?
39
Transantiago
Heavy and Light Metro Network Bus Trunk Network
40
Local/Feeders Network Trunk Business Units
41
The Sao Paulo CPTM trains modernization project: How do you modernize an old and decaying suburban rail system?
42
São Paulo Metro Line 4 project , the first PPP in Brazil:How do you start a PPP in
a public system network?
43
First fully automatic operation
in Latin America
The driverless system allows
speed regulation according to
need, giving more flexibility
to the operation
Headway can achieve 90
seconds in normal operation,
75 seconds in situations of
highly concentrated traffic
Automatic Operation
44
Or would the Line 15 monorail prove a
faster and cheaper solution in São
Paulo?
45
Presentation contents
Relevance of urban transport interventions
Main urban transport problems in large and medium-size
cities of developing countries
Strategy to improve urban transport: The four pillars
Examples from World Bank portfolio
Conclusions
46
Conclusions
Urban Transport sustainability requires : – Large agglomerations to strengthen institutional organization at the metropolitan level and
avoid wastage that comes with duplication of investments, poor and uncoordinated tariff and subsidy policies. They should pool resources to implement an integrated plan and ensure financing mechanisms are in place and new ones are found.
– Adequate Integrated Planning is very important but the sustainability of the sector depends heavily on proper coordination and adequate funding which are often overlooked
Mid size cities should follow the same path but start early anticipating capacity problems in
major corridors and inducing better urban development land use patterns
Urban transport training deserves more attention in schools of developing countries
because their major cities are well behind the people’s needs and they require immediate
action. More trained specialists in modeling and institutional frameworks are key to
strengthen the sector.
Could Quicker Data Collection Methods using Cell Phone data and Social
Networks help decrease preparation time of models ? Could More
powerful software integrating Urban Transport, Land Use and Air quality
be very useful in decreasing lead times for proper decision –making?