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PUBLIC TRANSPORT COUNCIL   14/4/2008 The challenges of public transport from the viewpoint of the PTC 21 November 2008 By ...
<ul><li>Overview of the PTC  </li></ul><ul><li>Key challenges  </li></ul>Outline of briefing 14/4/2008
About the PTC  <ul><li>Formed in 1987  </li></ul><ul><li>An independent regulator of </li></ul><ul><ul><li>-  Bus services...
Simple objectives, challenging mandate  <ul><li>PTC seeks to: </li></ul><ul><ul><li>-  assure the quality of basic bus ser...
Partnership in regulation 14/4/2008 Commuters Basic Bus Optrs Train Optrs  Other Bus Optrs  Taxi Optrs  Service Providers ...
<ul><li>How to ensure affordable fares? </li></ul><ul><li>How to ensure bus quality of service? </li></ul><ul><li>How to m...
How to ensure  affordable  bus and train fares?  14/4/2008
a. Put in place a fare review mechanism <ul><li>PTC approves maximum bus & train fares  </li></ul><ul><li>- guided by a fa...
Fare review mechanism 14/4/2008 <ul><li>A formula to cap fare adjustment </li></ul><ul><li>- cap based on macro-economic f...
Track fare affordability 14/4/2008 <ul><li>Affordability Indicator  - % of household income (2nd quintile) spent on bus/tr...
b. Update the fare formula regularly <ul><li>Fare adjustment formula recently reviewed   </li></ul><ul><li>- the revised f...
Why distance-based through fares? <ul><li>Distance-based through fares by 2009 </li></ul><ul><ul><ul><li>Journeys that cov...
c. Have targeted help for needy families <ul><li>While fares remain affordable, needy families may need more help to adjus...
How to ensure q uality  basic bus services? 14/4/2008
14/4/2008 Route-based Operator-based *  Daily basis ^ 1 not announced a. Set realistic QoS Standards  Operating Performanc...
Progressively raise the standards <ul><li>Tightening of QoS Standards in Jul 07 </li></ul><ul><li>-  increased peak period...
b. Put in place a penalty framework <ul><li>Penalty framework w.e.f. Oct 2007  </li></ul><ul><li>-  operators fined twice ...
14/4/2008
c. Consider incentive framework  <ul><li>Centralised planning of bus network </li></ul><ul><ul><li>LTA to take over from o...
How to manage trade-offs moving forward? 14/4/2008
a. Need to consult and engage <ul><li>Preparation of bus master plan </li></ul><ul><ul><li>A new engagement framework that...
b. Need to look at new media <ul><li>Calibrated engagement to explain trade-offs to netizens </li></ul><ul><ul><li>Trackin...
Summary <ul><li>PTC’s mandate is to balance commuters interest and long term viability of operators   </li></ul><ul><li>Ke...
Visit our website at www.ptc.sg (Annual Report is downloadable) 14/4/2008
Thank You 14/4/2008
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NUS Econs Alumni: Public Transport Council (21 Nov 2008)

The challenges of public transport
from the viewpoint of the PTC
-given by Mr Gerard Ee

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NUS Econs Alumni: Public Transport Council (21 Nov 2008)

  1. 1. PUBLIC TRANSPORT COUNCIL 14/4/2008 The challenges of public transport from the viewpoint of the PTC 21 November 2008 By Mr Gerard Ee PTC Chairman
  2. 2. <ul><li>Overview of the PTC </li></ul><ul><li>Key challenges </li></ul>Outline of briefing 14/4/2008
  3. 3. About the PTC <ul><li>Formed in 1987 </li></ul><ul><li>An independent regulator of </li></ul><ul><ul><li>- Bus services & bus operations </li></ul></ul><ul><ul><li>- Bus & train fares </li></ul></ul><ul><ul><li>- Ticket payment services in public transport </li></ul></ul><ul><li>PTC is mandated to balance the need to safeguard commuters’ interests with long term viability of Public Transport Operators (PTOs) </li></ul>14/4/2008
  4. 4. Simple objectives, challenging mandate <ul><li>PTC seeks to: </li></ul><ul><ul><li>- assure the quality of basic bus services </li></ul></ul><ul><ul><li>- keep bus & train fares affordable </li></ul></ul><ul><ul><li>- safeguard public interest in the mode of payment of public transport fares </li></ul></ul>14/4/2008
  5. 5. Partnership in regulation 14/4/2008 Commuters Basic Bus Optrs Train Optrs Other Bus Optrs Taxi Optrs Service Providers Integrated Services EZ-Link Transit Link PTC PTC Act Regulators LTA LTA Act RTS Act RT Act Advisory, Support & Agent
  6. 6. <ul><li>How to ensure affordable fares? </li></ul><ul><li>How to ensure bus quality of service? </li></ul><ul><li>How to manage trade-offs moving forward? </li></ul>3 key challenges 14/4/2008
  7. 7. How to ensure affordable bus and train fares? 14/4/2008
  8. 8. a. Put in place a fare review mechanism <ul><li>PTC approves maximum bus & train fares </li></ul><ul><li>- guided by a fare review framework </li></ul><ul><li>Fare review mechanism adopted since 2005 </li></ul><ul><li>Deterministic fare cap protects commuters </li></ul><ul><li>On-going challenge to balance </li></ul><ul><li>commuters’ interests & PTOs’ long-term viability </li></ul>14/4/2008
  9. 9. Fare review mechanism 14/4/2008 <ul><li>A formula to cap fare adjustment </li></ul><ul><li>- cap based on macro-economic factors: CPI and WI </li></ul><ul><li>- commuters are protected as operators cannot passed on their cost increases by raising fares </li></ul><ul><li>PTC’s flexibility to vary or reject: </li></ul><ul><ul><li>- adverse economic conditions (GDP, unemployment) </li></ul></ul><ul><ul><li>- significant deterioration in affordability </li></ul></ul><ul><li>Reality check using ROTA </li></ul><ul><li>Affordability indicator for tracking </li></ul>
  10. 10. Track fare affordability 14/4/2008 <ul><li>Affordability Indicator - % of household income (2nd quintile) spent on bus/train travel by a characteristic family </li></ul>
  11. 11. b. Update the fare formula regularly <ul><li>Fare adjustment formula recently reviewed </li></ul><ul><li>- the revised formula to be applied from 2008 to 2012 </li></ul><ul><li>Max Fare Adjustment = Price Index – 1.5% </li></ul><ul><li>Price Index = 0.5 ( ∆ CPI) + 0.5 ( ∆ WI) </li></ul><ul><ul><li>CPI = Consumer Price Index </li></ul></ul><ul><ul><li>WI = Average monthly earnings for all workers, adjusted for any change in employer’s CPF contribution </li></ul></ul><ul><li>“ - 1.5%” is the productivity extraction set for 5 years </li></ul><ul><li>- higher factor set: 1.5% compared to previous 0.3% </li></ul>14/4/2008
  12. 12. Why distance-based through fares? <ul><li>Distance-based through fares by 2009 </li></ul><ul><ul><ul><li>Journeys that cover the same distance will have the same fares </li></ul></ul></ul><ul><li>Distance-based through fares provides better choices to all commuters </li></ul><ul><ul><ul><li>Currently, commuters choose different types of journeys </li></ul></ul></ul><ul><ul><ul><li>Transfers more expensive, even if same route and same distance as direct journeys </li></ul></ul></ul><ul><ul><ul><li>Commuters will be better able to choose options that suit them </li></ul></ul></ul><ul><li>Introduced over 2 years to allow a gradual transition </li></ul>
  13. 13. c. Have targeted help for needy families <ul><li>While fares remain affordable, needy families may need more help to adjust to fare increases </li></ul><ul><li>Government and the operators have provided for 130,000 public transport vouchers, of $40 each, to be distributed to needy families </li></ul><ul><ul><ul><li>In 2007: 100,000 vouchers of $30 each </li></ul></ul></ul><ul><li>Additional assistance is available beyond the 130,000 vouchers for needy families </li></ul><ul><ul><ul><li>CCC ComCare Fund is available to provide additional assistance for needy families </li></ul></ul></ul>
  14. 14. How to ensure q uality basic bus services? 14/4/2008
  15. 15. 14/4/2008 Route-based Operator-based * Daily basis ^ 1 not announced a. Set realistic QoS Standards Operating Performance Standards (6) Service Provision Standards (14) Reliability Loading Safety Scheduled trips (1) *Headway adherence (2 ^ ) * Average loading (1) Accident rate (1) Bus breakdown (1) Availability Integration Information 1st, last services (2) Spatial coverage (1) Connectivity (3) Operating hr (1) Headways (3) Pre-trip info (I) Enroute info (2) Timetables (1) ( ) denotes no. of parameters Attributes
  16. 16. Progressively raise the standards <ul><li>Tightening of QoS Standards in Jul 07 </li></ul><ul><li>- increased peak period frequency of all basic bus services to run at 10 minutes (from previous 15 minutes) by Aug 09. </li></ul><ul><li>Introduction of a separate and higher QoS standard for peak hour feeder bus services in Apr 08 </li></ul><ul><li>- at least 90% (from previous 85%) of all feeder bus services to run at headway of not more than 10 minutes during weekday peak hours by Aug 09 </li></ul>14/4/2008
  17. 17. b. Put in place a penalty framework <ul><li>Penalty framework w.e.f. Oct 2007 </li></ul><ul><li>- operators fined twice (Apr 07 & Oct 08) based on review of QoS performance results </li></ul><ul><li>- next 6-monthly performance results in Apr 09 </li></ul><ul><li>Challenge of ensuring practicality of standards </li></ul><ul><li>and yet keep the increase in cost </li></ul><ul><li>within means of the operators </li></ul><ul><li>and hence keep bus fares affordable. </li></ul>14/4/2008
  18. 18. 14/4/2008
  19. 19. c. Consider incentive framework <ul><li>Centralised planning of bus network </li></ul><ul><ul><li>LTA to take over from operators </li></ul></ul><ul><li>Introduce contestability for the market </li></ul><ul><ul><li>LTA to call tenders for bus services and take over bus licensing from PTC </li></ul></ul><ul><li>Performance-base incentive and penalty framework being studied </li></ul><ul><ul><li>Part of licence contracts </li></ul></ul>14/4/2008
  20. 20. How to manage trade-offs moving forward? 14/4/2008
  21. 21. a. Need to consult and engage <ul><li>Preparation of bus master plan </li></ul><ul><ul><li>A new engagement framework that can involve operators, grassroots/community, experts, general public </li></ul></ul><ul><li>Challenge to take on board appropriate inputs and secure buy-in so that the bus network can best meet diverse needs while ensuring financial sustainability of contract packages </li></ul>14/4/2008
  22. 22. b. Need to look at new media <ul><li>Calibrated engagement to explain trade-offs to netizens </li></ul><ul><ul><li>Tracking of views posted on credible online platforms – Sraitstimes and mediacorp. </li></ul></ul><ul><li>Challenge to decipher serious views or trends (from chatters) that warrant responses or intervention so as to manage perception and expectation </li></ul>14/4/2008
  23. 23. Summary <ul><li>PTC’s mandate is to balance commuters interest and long term viability of operators </li></ul><ul><li>Key challenges in ensuring affordability, bus services and managing trade-offs </li></ul><ul><li>There are simply no easy answers </li></ul>14/4/2008
  24. 24. Visit our website at www.ptc.sg (Annual Report is downloadable) 14/4/2008
  25. 25. Thank You 14/4/2008

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