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traffiQ – Local Public Transport Authority of Frankfurt am Main

traffiQ – Local Public Transport Authority of Frankfurt am Main. Transport Association and Tariff Integration The European Experience. Sub-plenary Session 1 Stream 2 Sustainable Urban Public Transport in Asia. Workshop BAQ (Better Air Quality) Yogyakarta, Indonesia 13th-15th december 2006.

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traffiQ – Local Public Transport Authority of Frankfurt am Main

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  1. traffiQ – Local Public Transport Authority of Frankfurt am Main Transport Association and Tariff Integration The European Experience Sub-plenary Session 1 Stream 2 Sustainable Urban Public Transport in Asia Workshop BAQ (Better Air Quality) Yogyakarta, Indonesia 13th-15th december 2006 Dr. Hans-Jörg von Berlepsch(CEO traffiQ, Frankfurt am Main)

  2. Transport Associations and Tariff Integration – The European Experience traffiQ – Local Transport Organisation of Frankfurt am Main • Structure of presentation • Character of Frankfurt and Rhein-Main-Region • Transport systems • traffiQ - Public Transport Authority • Transport association and tariff integration • Environmental Innovation through competition – EEV-Busses

  3. Transport Associations and Tariff Integration – The European Experience Region Frankfurt-RheinMain Region Frankfurt-RheinMain • 5 million inhabitants • 2,5 million employees • 185 billion $ gross product • 630 million passengers in public transport (per year) … in the midst of Europe

  4. Transport Associations and Tariff Integration – The European Experience Traffic problems in high density areas Increase in the number of vehicles and their use ► Congestions ► Air pollution ► Noise pollution ► Land use Commuters to Frankfurt (excl. officials, self-employed, school-children and students) amount: 2/3 of the inhabitants

  5. Transport Associations and Tariff Integration – The European Experience Traffic problems in Frankfurt / RheinMain Main causers of air pollution: Traffic Means of landuse in urban traffic (per person excl. parking areas) Vehicles: 100 m2 Trams: 4 m2 In comparison: Buses: 20 m2 Urban railway: 3 m2 Bicycles: 10 m2 Particle emissions (PM10) Frankfurt Höhenstraße Solution: Avoid traffic and change to public transport

  6. Transport Associations and Tariff Integration – The European Experience Transport modes in Frankfurt and the Rhein-Main-Region • Local and regional mobility

  7. Transport Associations and Tariff Integration – The European Experience Local public transport in Frankfurt and the Rhein-Main-Region • Regional Transport (commuter train) • Connection Frankfurt with its surrounding areas • Central tunnel under the city • Electrical trains • Longer stopping distances • High travel speed • 9 lines • 48.000 km per day • 482.000 passengers everyday • 15 to 30 minute frequency

  8. Transport Associations and Tariff Integration – The European Experience Local transport in Frankfurt and the Rhein-Main-Region >> • Underground/metro • fast inner-city light rail • High traveling speed • Central tunnel under the city • 7 lines • 19.000 km per day • 410.000 passengers everyday • 5 to 15 minute frequency

  9. Transport Associations and Tariff Integration – The European Experience Local transport in Frankfurt and the Rhein-Main-Region >> • Trams • Inner-city fine distribution • Tracks above ground • Short distances between tram-stops • 8 Lines • 19.000 km per day • 169.000 passengers everyday • A 7 to 15 minute tact

  10. Transport Associations and Tariff Integration – The European Experience Local transport in Frankfurt and the Rhein-Main-Region • Bus • Shuttle transport • Short distances between stops • Fine-development of residential estates • 44 lines and +9 night buses • 41.000 km daily • 165.000 passengers everyday • 5 to 30 minute tact Dense local passenger transport network in the central city area ► Transport systems - bus, trams, underground and suburban railway

  11. Transport Associations and Tariff Integration – The European Experience Local PTA (traffiQ) - Organisation chart CEO Dr. Hans-Jörg von Berlepsch Administrative Department Division Information Management Municipal Matters Corporate Communication Legal Services Project Office Sector Finance Administration Sector Marketing and Mobility Research Sector Traffic Management Division Tender Planning Division Administration Division Marketing and Customer Service Division Service Ordering and Quality Management Division Financial Management Division Market and Traffic Research

  12. Transport Associations and Tariff Integration – The European Experience Local PTA (traffiQ) - tasks & responsibilities

  13. Transport Associations and Tariff Integration – The European Experience History of transport associations and tariff integration in Germany Germany before 1970 ► every transport company had its own tariff for local public transport ► no transparency in tariffs and no integrated coordination of schedules ► tickets of different transport companies were not accepted by the others ► no coordinated transport planning and marketing Development since 1970 Phase 1: tariff associations (public transport companies accepting each others tickets leading to associated tariffs) Phase 2: transport associations (coordination and increase of transport planning and marketing, coordinated timetables for public transport) Phase 3: tariff and transport associations (contracts on tariffs, distribution of fare income and shared timetables) Today: tariff and transport associations nearly all over Germany >> one tariff – one ticket

  14. Transport Associations and Tariff Integration – The European Experience Organisation of German tariff and transport associations tariff and transport association pt * companies association mixed association (pt* companies + cities/counties) cities/counties association federation of pt* companies operating in the area of association federation of pt* companies operating in the area of association together with the political administration of cities/ counties in this region federation of federal states (e.g. Bavaria) cities (e.g. Frankfurt) and counties operating together increasing complexity: several companies, tariffs, cities, counties, states etc. to integrate * pt means public transport

  15. Transport Associations and Tariff Integration – The European Experience Regional PTA* (RMV) - Structure • Members in the RMV • 27 partners constitute the • RMV-Supervisory Board, thereof • - 15 rural districts • - 4 large cities (e.g. Frankfurt) • - 7 medium-sized towns • The province of Hesse • 368 Global authorities • 153 Transport companies * PTA = Public Transport Authority

  16. Transport Associations and Tariff Integration – The European Experience 3-level-organisation of local and regional public transport political level City of Frankfurt (CoF) / municipality other cities local PTO* traffiQ regional PTO* (RMV) excecutive level non profit organisation formally privatized but 100 % owned by CoF TENDERING and CONTRACTS (competition) privat operators public operator (VGF) [owned by CoF] regional operators German Rail (DB) operational level * PTO = Public Transport Organisation • Organisation in Frankfurt / RheinMain

  17. Transport Associations and Tariff Integration – The European Experience Specific features of a German transport association Neue Chancen der Tarifpolitik Transport Association A legally independent association company Own personnel and own equipment Integration of regional and local transport systems Integration of bus + rail Responsible for tariffs, RSA*, planning, etc. Rhein-Main-Transport Association (RMV) - Integration of approximately 110 tariff rates - approx- 150 transport companies - Region, Districts and large towns as partners *RSA = revenue sharing agreement

  18. Transport Associations and Tariff Integration – The European Experience A common tariff rate Tariff integration means: Harmonization Aggregation >New Opportunities • Tariff leeways • but also synergies • Marketing/market • appearances • Information • Transport planning • … Harmonization of different tariffs could lead to deficits for some parties (depending on the levels of the old tariff compared to the level of the new tariff) Aggregation of fare income that was separated into single tariffs/companies - in former times - leads to defects for some parties (one tariff – one ticket) Example: 1995 - Tariff Integration RMV (Region Frankfurt / RheinMain) ► about 110 single tariffs ► about 150 public transport companies ► 26 cities and counties

  19. Transport Associations and Tariff Integration – The European Experience Scope for tariff and ticket design Tariff and transport association opportunities … Neue Chancen der Tarifpolitik example combination ticket „voucher = ticket“ for public transport (combined with e.g. football World Cup 2006, concerts, events etc.) example job ticket tickets for the whole staff of a company example student ticket tickets for all the students of a university (student identity card is your ticket) example season ticket tickets for a period of time (day, week, month or year) (consistent strategy) 4 % * 22 % * 5 % * Advantages ►low costs for distribution ► more reliability of fare income (because tickets sold as a package) ► political objectives in transportation are easier to achieve ► increase of the usage of public transport in relation to other means of transportation (regarding “Modal Split”) * share of sales, aprrox. 3/4 are generated by time cards and special agreements

  20. Transport Associations and Tariff Integration – The European Experience Ticket types Usual ticket types in German tariff and transport associations cash tickets season tickets ► single ticket ►short distance ticket (up to 2 km) and others … ►dayly ticket ►weekly ticket ►monthly ticket ►annual ticket 5 % * 2 % * 24 % * 14 % * 23 % * * share of sales, aprrox. 3/4 are generated by time cards and special agreements

  21. Transport Associations and Tariff Integration – The European Experience Integrated tariff systems (Examples) Area zone in the polycentric area Ring zones in the monocentric area tariff 3 tariff 4 tariff 5 tariff 6 tariff 7 tariff 17 Example: journey from city of Frankfurt (zone 50) to Wiesbaden (zone 65, yellow) = „tariff 5“

  22. Transport Associations and Tariff Integration – The European Experience Tariff rate as a regulating instrument

  23. Transport Associations and Tariff Integration – The European Experience What we do to make our tariffs understandable for all customers Current web services in 6 languages ►timetable board Information ►timetable ► tariff ► fares ► distribution ► services ►etc. „best routing“ online Type in your request here for connections between any starting point to any destination. www.rmv.de

  24. Transport Associations and Tariff Integration – The European Experience Advantages of an integrated association • Advantages for the customers • ► free choice of transportation system (e.g. bus , tram, regional rail) • ► comprehensible strategy „one tariff - one ticket“ • ► coordinated timetables (best connections) • ► improvement of quality • Advantages for the association • ► synergy effects for marketing, customer information etc. • ► unification of distribution (e.g. ticketing) • ► simple tariff system for all public transport systems • ► consistent market presence • ► higher demand on public transport • Experience of German associations for nearly 40 years (since 1967) • ► increasing demand and increasing fare income

  25. Transport Associations and Tariff Integration – The European Experience Financing of the public transport service in the association basic data RMV 1 fare income about € 550 mio. total costs about € 1.150 mio. subsidies for the association about € 630 mio. fare income per trip 86 ct. potential customers about 5 million * * subsidies by country, state, counties and cities 1 data of tariff and transport association RMV, based on 2004

  26. Transport Associations and Tariff Integration – The European Experience Earnings and expenses Earnings and expenses in billion Euros (development of the RMV) 1,20 1,09 1,10 1,08 1,06 Expenses in 7 years = + 18,3 % 1,03 1,03 1,01 0,93 1,00 Liquidity ratio 44,1% 46,5% 47,6% 48,5% 50,0% 51,8% 52,3% 52,6% 0,60  Earnings in 7 years = + 43,9 % 0,53 0,50 0,59 0,49 0,56 0,57 0,47 0,41 0,40 1996 1997 1998 1999 2000 2001 2002 2003  Tariff increases in 7 years = 18.5 % • Financial effects positive: • Cost coverage ratio has been continually increased • Earnings have been increased by 43.9% in 7 years • >> lower subsidy amounts

  27. Transport Associations and Tariff Integration – The European Experience Innovation through competition - use of EEV buses (1/2) • Demanding EEV Standard in Tender Package A • Initial situation: Emission limiting values for air pollutants covered by the 22nd Federal Emission Protection Regulation (22. BImSchV) must be complied with for particles from 2005 and nitrogen oxides (NOx) from 2010. • Communities are obliged to issue air pollution control plans and action plans. • Action required in the Transport sector: Avoidance of carbon dioxide, carbon monoxide, nitrogen oxides (ozone precursor substances), noise, fine dust • Lot A: Pilot Tender with High Environmental Standards • Minimum standard for exhaust fumes EURO IV + carbon particulate filter being narrowed to EURO V + carbon particulate filter by December 2009 • Optional exhaust fumes standard: EEV Standard • Federal Government subsidies EEV Vehicles and promotes the successful bidder • Federal government supports vehicles with high EEV standards with up to € 1.4 Mio (€ 25,000 per standard or midi bus, € 12,000 per mini bus) through the KfW bank (“Kreditanstalt für Wiederaufbau”) • EEV tendering parties receive an additional bonus on the evaluation of their bid • With this tender Lot A fulfils the potentials of European legal standards • Promotion also comprises the procurement of the necessary reserve vehicles (up to 57 vehicles will be promoted) • Grants will only be given if EEV standard is offered for all vehicles in each category (not isolated for individual vehicles) – irrespective of whether they are driven by natural gas or diesel

  28. Transport Associations and Tariff Integration – The European Experience Innovation through competition - use of EEV buses (2/2) Results and experiences from Frankfurt am Main • All four tenders in lot A were offers with EEV standard • The price of the best offer is significantly below the benchmark • Promotion by the KfW reduces the total price by 5 cents per operational km. Even without this assistance, a good price would still have been achieved • It was again proven that quality can be controlled and significantly improved through competition in the bidding process • Local public transport makes its contribution towards air purity and noise reduction • The automotive industry has responded to the demand for high-quality vehicles • The Package A pilot tender has intensified the system competition of the vehicle manufacturers (natural gas vs. diesel) and constitutes at the same time a contribution towards strengthening the affected companies in European competition

  29. Transport Associations and Tariff Integration – The European Experience traffiQ – Local Transport Organisation of Frankfurt am Main Thank you for attention! Dr. Hans-Jörg von Berlepsch(CEO traffiQ, Frankfurt am Main)

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