City of Cape Town Transport and Urban Development Authority - Competition Commission Market enquiry into Land-based Public Passenger Transport ...
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City of Cape Town
Transport and Urban Development Authority
Competition Commission
Market enquiry into Land-based
Public Passenger Transport
Industry
21 June 2018
[v2.0 20180620]
OUTLINE OF PRESENTATION
• Submissions to Competition
Commission
• Need for change
• Integrated Public Transport Network:
• CoCT’s integrated public transport
methodology
• 10 point plan
CoCT Submissions to Competitions
Commission to date
• CoCT = City of Cape Town
• Initial submission
2017-09-13 (16pp)
• Response to detailed questions
Nov 2017 (28pp and 17 documents)
• Comment on Statement of Issues
2018-05-25 (5pp)
THE IPTN BUSINESS PLAN Need for change
NEED FOR CHANGE
• Cape Town’s transport system is facing very significant
challenges.
• A fundamental transformation of Cape Town’s public
transport system is required
• MyCiTi service has provided part of the solution,
however …
• Will not aim to replace all minibus-taxis (MBTs)
• Will still rely on improved conventional bus
• Will work with and enhance new generation
services
• BUT: What are the costs of not significantly improving
Cape Town’s public transport system?
Need for public transport investment Failure to significantly improve public transport twill lead to …. 1. Increasing inequality 2. Worsening congestion 3. Constraints on economic growth and development 4. Increasing negative environmental impacts. BUT: Must ensure that it is • Fiscally and financially sustainable • Resilient and flexible to respond to change • Enable spatial transformation and TOD
• Failure to significantly improve Integrated Public Transport Network will lead to increasing inequality, worsening congestion, serious constraints on economic growth and development and increasing negative environmental impacts. Majority of Cape Town’s population in the Low Income bracket are located on the periphery, between 45-70km from jobs
• Failure to significantly improve Integrated Public Transport
Network will lead to increasing inequality, worsening congestion,
serious constraints on economic growth and development and
increasing negative environmental impacts.
Income groups per mode
• Majority of low income bracket
dependent on public transport
• The poorest people travel the
longest distances
• High cost of access: if no
change is made, residents will
spend more time and more
money getting to work and
other destinations than ever
before.
User Access Priorities Across Cape Town (NHTS 2013)
• Failure to significantly improve Integrated Public Transport
Network will lead to increasing inequality, worsening congestion,
serious constraints on economic growth and development and
increasing negative environmental impacts.
• High levels of congestion
on Cape Town’s road
network
• Peak period
extended from 2hrs
to 4hrs in last 10 years
• Minibus-Taxis and
most buses are stuck
in traffic
• Cannot build our way
out of congestion
• Failure to significantly improve Integrated Public Transport Network will lead to increasing inequality, worsening congestion, serious constraints on economic growth and development and increasing negative environmental impacts.
THE IPTN BUSINESS PLAN • Integrated public transport methodology
IPTN Business Plan’s
Integrated public transport methodology
BRT and
Passenger Rail Quality Bus
City-wide
integration,
infrastructure, • Oversight
• Integrated network
strategic
design
Nature of management • Integrated fare system
integrative role • Station services
differs for • Control through an
different sectors integrated technology
• Regulation and
MBT & new enforcement
(eg rail • Infrastructure provision
generation and
infrastructure other • Infrastructure
built by PRASA) Maintenance
services
• Depots
• Etc.Prioritising scarce resources is key:
We need an approach which
aims for optimal outcomes ...
but can accommodate what actually happens
Flexible and robustImplementing IPTN over time: Prioritising scarce resources is key • Start with the ‘best’ and most financially sustainable services which have the most impact • Risk mitigation: If revenue is reduced through reduced grants or fare income the affordability threshold falls
The IPTN BP 10 point plan
10. Regulation, 9. Revenue
Enforcement, optimization 8. Physical
Network priority for
Management public
1. Enhancing transport
demand
patterns (TOD
and TDM) 7. IT/tech
ONE integrated,
strategies/
AFC
2. Rail multimodal network
6. NMT
3. BRT along
key corridors 5. ‘Hybrid’
minibus taxi
4. Quality solutions
BusCrucial for enhancing
access at reduced cost
1. Enhancing
demand patterns
(TOD and TDM)Transit Orientated
Development (TOD)
Key reason why City of Cape
Town formed the Transport and
urban Development Authority
• Deal with Apartheid nature of
settlement in Cape Town
• Low income people live far
from work opportunities
• Cannot solve transport
problems without
engagement in urban
development / Built
Environment
• That is why national Green
Paper on Transport wanted
urban public transport to
reside with citiesCrucial for enhancing Transport Demand
Management (TDM)
access at reduced cost measures such as peak
1. Enhancing spreading – This has
demand patterns been the impact of
(TOD and TDM) the recent changes to
Ideal long term profile
the peak faresChanges in Land Use – TOD
Scenarios
1. Land-use Variables Business
as Usual
Peak reverse flow demand 25%
Seat turnover factor (all stop) 1.3
Seat turnover factor (express) 1.1
Peak hour pax demand as %
16.0%
of whole dayChanges in Land Use – TOD
Scenarios (proxies)
TOD Comprehensive
1. Land-use Variables Business
as Usual achieved
Long term
by 2032
Peak reverse flow demand 25% 70% 36%
Seat turnover factor (all stop) 1.3 2.5 1.6
Seat turnover factor (express) 1.1 2.1 1.4
Peak hour pax demand as %
16.0% 12.0% 15.0%
of whole day1. Enhancing Rail is the City’s Public
demand patterns
(TOD and TDM) Transport Backbone
2. Passenger
Rail
Excellent for high volume trunks in peak
over long distancesTrunk: Rail
• Need the very important Blue
Downs link to be implemented
in short-medium termTrunk: Rail
• Direct link between Metro South East and Bellville
• Creates scope for establishing a circular route offering
new options for efficient operational designs
• reducing trainset requirements for deployment
elsewhereTrunk: Rail
• Major operational
improvement required
throughout system to
reverse decline
• Extend
integrated fare
system to rail
• Assumes PRASA/national take full financial responsibility
for passenger rail improvements
• Highlights need for City involvement to help ensure
integration and quality1. Enhancing • Long term network
demand patterns vision: BRT trunks to fill
(TOD and TDM) in network not
covered by rail
2. Passenger • Comparative
Rail advantage in serving
fairly dense corridors
with high seat
renewal
3. BRT along
key corridors
IPTN Implementation Plan (March 2017)
• Determines prioritisation of BRT trunk
corridor investment and high level
rollout programme• BRT projects must be viewed as property
development projects as well
1. Enhancing
demand
patterns (TOD
and TDM)
2. Passenger
Rail
3. BRT along
key
corridors
Higher density
Commercial, Business
Residential use Low density, mainly
residential use
BRT
dedicated
lanesAtlantis
Existing services
PHASE 1 AND N2 EXPRESS
Table View /
Du Noon
18m
Century
Joe City
Slovo
Airport
12m Inner
City &
Sea
Point Khaye-
litsha
Mitchells
Camps Bay Plain
9m Hout BayExisting services
MyCiTi quarterly Passenger Journeys 2011 to 2018
* A passenger journey is the full journey from origin to destination and often includes trunk and feeder segmentsExisting services - Moderation gains
Fare revenue covering an increasing Cost recovery
on T01 trunk
proportion of direct operating costs route currently
(trunks and feeders) close to 80%.
MyCiTi: Fare Revenue vs Direct Operating Costs (%)
First moderation Optare maintenance
Implemented commences
50% 46% 47% 46%
46% 43% 46% 45% 44%
45% 43% 42%
40% 41%
39% 39%
40%
34%
35%
29%
30%
25%
25%
20%
15%
10%
5%
0%Competition and efficient business
models
• CoCT is committed to creating the conditions for fair
competition amongst service providers
• Do not support the traditional view of public transport that there
should be no competition in same area
• CoCT supports competition for the market and in the market
• Three operators in MyCiTi Phase 1
• In terms of agreed national approach contracts were based on
negotiation with existing operators – mainly MBT operators
• Will be tendered in future
• Scope for competing for additional services on ongoing basis
• Similar approach for future phases of BRTKey changes needed to ensure sustainability
IPTN BUSINESS PLAN: SENSITIVITIES TO OPERATING COSTS
Contribution to operating deficit after deducting fare income and other funding from costs
400 subsidised scheduled
feeder buses
Full No scheduled
feeders feeders
Scheduled feeders
Bus operating variables
Competitive VOC rates
Business Full TODC
as usual
Land use and travel demand
patterns
TODC achievable by 2032 Non-fare revenue funding
Positive swing
Negative swing
-R6,000 -R5,000 R-4,000 -R3,000 -R2,000 -R1,000 R0 R1,000 R2,000 R3,000 R4,000 R5,000RISKS
Sensitivity of outcome to key variables
• Scheduled feeders: Reduce extent of MyCiTi feeder, increase
direct services – facilitate new generation services
(fewer scheduled feeders, increased use of direct services, extensive use of New Generation minibus-taxi
services supported, investment in e-hailing technology)
• Bus operating variables
(increase speed, larger vehicles, ensure buses are full in the peak, less positioning kms and fewer spare buses)
• Competitive Vehicle Operating Company (VOC) rates
(reduce VOC rates through competitive tendering)
• Reduce indirect costs
(reduce cost of station management, fare management, enforcement, oversight)
• Sensitivity to land use scenarios (TOD) and transport demand
management
(improved reverse flow, seat renewal, reduction in travel distance and in demand, widen times of travel)
• Non-fare revenue funding increased
(Additional rates income, widen parking management, new parking levy, securing other subsidies)Golden Arrow Bus Services
1. Enhancing
demand patterns
(TOD and TDM)
2. Passenger • Quality Bus mode
Rail • Core feeders and direct services
• Peak only and all day services
(depending on viability as TOD
materialises)
3. BRT along
• Integration with MyCiTi BRT trunks
Current characteristics
key corridors
•• Easy transfers
Established management
•• Ticketing
Many seats integration
per vehicle
•• Timetable
Not good integration
for seat renewal and level
• Branding
boardingintegration (irrespective of
4.4.Quality
Integrate
GABS into • which
But good VOC foroperates buses)point to
long distance
Bus
network • Same infrastructure (1 system)
point trips
•• Real time information
Net contract and monitoring
helps manage risk
although leads to monopoly supply
Some
•• Requires
anduse of BRT
other dedicated
complexities
assignment lanes and
of Contracting
priority infrastructure at key congestion
Function
pointsSeeking to create competition in provision
of conventional bus services (GABS)
• Currently GABS operates in terms of one single
contract for the whole metropolitan area
• Best mechanism for introducing competition is not
yet agreed
• GABS ownership of depots makes introduction of
competition difficult
• New entrants will not be able to compete
• City considering buying depotsIntroducing competition into conventional
bus services
• Possible stagger tenderingBut challenges experienced in assignment
of contract to CoCT
• Applied for assignment of contracting function in
2012 in terms of NLTA
• Not yet granted
• NLTA Amendments remove the provision for
assignment of the GABS contractMinibus taxis will form a key part of
1. Enhancing
demand patterns
the envisaged system
(TOD and TDM)
• Well positioned to benefit from
“New Generation” technologies
2. Passenger • Slides to follow under
Rail
technology approach
• Transformation of industry
3. BRT along • Infrastructure must be designed
key corridors for their integration into the
network
4. Quality Bus
5. Hybrid
Minibus-Taxi
solutionsPassengers unhappy
National Household Travel Survey for
the Western Cape (StatsSA)
51%
Behaviour of taxi drivers
towards passengers
50%
Taxis are too
crowded
41% Overall are
dissatisfied with the
taxi services
Weekend Argus - 11 April 2015I N D U S T R Y T R A N S F O R M AT I O N
Towards a Future State
Facilitate the formation of RTC VOC
1
Association-based Transport
Operating Companies (TOCs)
across the City as a precursor
to the formation of PTI-based TOC
RTCs and contract-based VOCs
A
AssociationI N D U S T R Y T R A N S F O R M AT I O N
Towards a Future State
Facilitate the transfer of all
2
Operating Licenses from individual
operators to Association-based
Transport Operating Companies
(TOCs)I N D U S T R Y T R A N S F O R M AT I O N
Towards a Future State
3 Invest in building the capacity
of these TOCs in the same
way the City has invested in a
3 year capacity building
programme for the 2 taxi-
based N2 Express companiesI N D U S T R Y T R A N S F O R M AT I O N
Towards a Future State
Once the TOCs are formed and
4 functional and able to form Regional
Taxi Companies (RTC) contract the
PTI management function (security,
cleaning and minor maintenance) to
these RTCs
Other contracting opportunities eg.
advertising rights at PTIs
Land for depots/fuelling facilitiesTaxi recapitalisation
• Over planned lifespan of 7 1200
TRP Objectives
R7.7 billion over 7 years
Projected
Expenditure
years of the TRP: Actual Expenditure
• ~ R3.2 billion 1000
expenditure
?
TRP EXPENDITURE (R MILLIONS)
• objective: R7.7 billion 800
• ~ 51,000 vehicles 600
scrapped
• objective: 100,000+ 400
vehicles
200
• Allocation to TRP 0
included in MTEF
projections
• But mechanisms to Source: compilation of data from NT expenditure
review
achieve increased
utilisation are not clearPossible improved vehicle
renewal scheme
• Create a new Vehicle Renewal Programme (TRP V2)
• Incentivise larger vehicles? Link to tracking and real time info?
• Structure the transaction to partially “secure” vehicle
financing
• Provide sufficient upfront capital to reduce the debt required and
improve the debt to asset ratio
• Establish a First Loss Facility in addition to a capital support
programme?
• Renewal should be through a revolving fund
• Current TRP was largely designed as a once-off
• But revolving fund has significant advantages in maintaining a high
quality fleet into the future (e.g. 400 000km or 5 – 7 years age)1. Enhancing
demand patterns
(TOD and TDM)
2. Passenger
Rail
3. BRT along
key corridors
4. Quality Bus
6. NMT
5. Hybrid
Minibus Taxi
solutions1. Enhancing
demand patterns
(TOD and TDM)
• The foundation for ‘New
2. Passenger
Rail Generation’ services
• See slides that follow
• New approach to AFC
3. BRT along
key corridors
7. IT/tech
strategies/AFC
4. Quality Bus
6. NMT
5. Hybrid
Minibus Taxi
solutionsTechnology change
“If I had asked people what they wanted,
they would have said faster horses” –
Henry FordUber
• Rapid growth
• Shifted people from private cars to public transport
• Solved safety issues
• Improving metered taxis
?
51Example of a
minibus-taxi type
service with e- A POOL SERVICE –
hailing and flexible where the needs of
routes passengers are
pooled and served
together
52Supply Demand
e- Supply Demand
Pooled service: How does it work?
Tell us where you are. Choose when you want to Book days or minutes in
Tell us where you want to leave advance
go
Know the fare before you Walk to your pick-up spot Track your Pool service
book in real timeE-hailed Pool Services Example 1: Direct service
E-hailed Pool Services Example 2: Feeder to trunk
Convenient
Passenger choice
Car competitive
Supply Cost effective
Demand
Easy to regulate
Safe
Inter-modal
Passenger voiceSelect which
option you want
and get price, e-
waiting time, ETA
for each option
Via settings or Trunk Personal Price
Pool Personal
in real time only Pool direct
plus plus
(BRT / direct (metered
Trunk Trunk taxi) Time
Rail)
Other options
possible By Universal
Driver rating Access
Requires a centralized
e-hailing platform to
connect users to range
of transport services and
payment mechanismsWHAT DOES THIS MEAN FOR THE IPTN?
• Prioritization for public transport remains key…..
• Whatever new technologies are available, if public transport is
stuck in congestion its advantages will be limited
• Trunk services required for high volume movement along
corridors
• But, creates scope for
• Better tailored and more cost-effective feeders to the trunks
• More use of direct services using MBTs or larger (eg 15-25
seaters), and car competitive small vehicle options
• Implications to be considered:
• Design to facilitate open transfers at key trunk stations, much
improved PTIs needed for transfer between MBT and Trunks
• Incentivising transfers for passengers/operators – ie transfer
subsidy to passengers8. Physical
priority for
public
1. Enhancing transport
demand
patterns (TOD
and TDM) 7. IT/tech
strategies/
AFC
2. Rail
Capital funding availability6.toNMT
implement
3. BRT along BRT corridors with PTNG within reasonable
key timeframe5.across
‘Hybrid’
city is challenging
corridors minibus taxi
4. Quality • System wide improvements
solutions to general
Bus public transport, aligned to ongoing
road maintenance and investment
• PT priority lanes must include
enforcement measuresAnd highways - the other mobility backbone…
• Huge investment
• Fast, no intersections
• Congested by single
occupancy vehicles
• Limited priority use by
public transport
• N2 BMT lane the
only public
transport facility
on freewaysEfficiency of BMT lane
Surveyed on 12th April 2016
Lane Type Buses Taxi Cars Other Total
BMT Lane 198 774 441 19 1 432
Occupancy 70 15 1.5 0
Passengers 13 860 11 610 662 0 26 132
% Pax Modal Split 53% 44% 3% 0% 100%
• A normal traffic lane gives a total of only 2 700 people per
hour – carried by 1800 cars.
• This is only 11% of the number of people transported in the
BMT lane in one hour, illustrating the overwhelming
advantage of a BMT lane in transporting people.• Further optimizing fares
• On-street parking fees
9. Revenue
• Increased rates allocation optimization
8. Physical
to 6% as integrated public priority for
transport network expands public
1. Enhancing transport
demand
• Newpatterns
local(TOD
revenue 7. IT/tech
and TDM)
sources to be developed: strategies/
- Parking levy AFC
- 2.Other
Rail
sources
6. NMT
3. BRT along
key corridors 5. ‘Hybrid’
minibus taxi
4. Quality solutions
BusProjected growth in passenger trips for MyCiTi Ph1, Ph2A, Quality Bus and New Passenger Trips Generation services (avg/month)
How secure is PTNG? how secure is PTOG? and BFI?
DORA Allocation to Cape Town for PT Investment
DORA allocation to CT for public transport investment
2012/13 DORB allocation in current Rands (Adj. For inflation)
MYFIN 2018 assumed PTNG allocations (excl. discretionary)
Apply for discretionary 25% - 76m(2019/20);R80m(2020/21);R85m(2021/22)
Linear (DORA allocation to CT for public transport investment )
2 500
2 000
ZAR in Millions
1 500
1 000
500
-
2012/2013 2013/14 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
• Current Rands i.e. escalated per year
• Excludes adjustment fundingFinancial big picture (real)
Excludes GABS faresRequires the right
10. Regulation, 9. Revenue
combination of business
Enforcement optimization
and Network
models, management 8. Physical
priority for
Management and technology public
1. Enhancing transport
demand
patterns (TOD
and TDM) 7. IT/tech
strategies/
AFC
2. Rail
6. NMT
3. BRT along
key corridors 5. ‘Hybrid’
minibus taxi
4. Quality solutions
BusPlanning Authority Operating Licence and Route Consideration
The City, as Planning Authority, to determine the need for any particular public transport service in terms of the CITP and direct as such; or If CITP is not yet finalised or inadequate, then such direction must be based on due inquiries and investigations carried out
The City, as Planning Authority, thus have the duty to direct in terms of regulated competition in the public transport industry
Operating Licence Applications When is Planning Authority direction required? - Granting of an operating licence - Renewal of an operating licence - Amendment of an operating licence - Transfer of an operating licence
Operating Licence Administration
Operating Licence Relationships
Driver
Can have many Can only have one
Operating
Licence
Driver
Owner(s)
Vehicle
Can only have one
Driver
Validity Period Authority Service Line / Segment A
Service type
Can only have one
Segment B
Authority Service Line /
Validity Period Segment C
Service type
Can only have one
Authority Service Line /
Validity Period
Service typeTransport Service Determines Need TDA Input Required Minibus Taxi - 9 – 35 Seater Vehicle CPTR Information (TRS) Direction - 4 – 7 Seater Vehicle (Amaphela) CPTR Information (TRS) Direction Metered Taxi - Rank Business Plan Direction - Base Business Plan Direction - E-Hailing Business Plan Direction Scholar - Private Contract with school or parents Direction - WCED WCED Contract None Staff Contract with Employer Direction Contracted - MyCiTi Negotiated Contract (S41) None - Dial-A-Ride Tender Contract None - GABS Interim Contract (46) None Long Distance CPTR Information (TRS) Concurrence Tuk-Tuk Commercial Services Contract None Cross Border Determined by CBRTA Concurrence Charter Determined by PRE None Tourist Determined by the NPTR None Special Event
Routes belongs to the Planning Authority, who in turn grant public transport operators the authority to operate on any particular route for a specific period.
Public Transport Routes Planning Authority Consideration Is this is a new taxi route or an amendment of one? Is support for registration of a new route association is required? A, B and via point consideration Agreement required if more than one taxi association operate along the same route or a large section thereof Is it affecting any existing minibus taxi routes? Is the re any possibility of conflict between taxi associations? Is there ranking space available at A, B or via Point? Any stops required along the proposed new route?
10. Regulation, 9. Revenue
Enforcement, optimization 8. Physical
Network priority for
Management public
1. Enhancing transport
demand
patterns (TOD
and TDM) 7. IT/tech
ONE integrated,
strategies/
AFC
2. Rail multimodal network
6. NMT
3. BRT along
key corridors 5. ‘Hybrid’
minibus taxi
4. Quality solutions
BusConcepts underlying IPTN Business Plan (provided in first submission) 1. Mobility and access and the importance of urban form 2. Creating integrated multi-modal networks 3. Anticipating technological change 4. Economic growth and fiscal constraints 5. Incrementalism versus stepped change 6. Competition and efficient business models 7. Responding to unpredictability 8. Transformation agenda
THANK
YOU
Dawie Bosch
Business Planning
021 400 9135
dawie.bosch@capetown.gov.zaYou can also read
