institutional framework and cooperation...

SPUTNIC – Strategies for Public Transport in Citieshttp://www.sputnicproject.eu/

Strategies for Public Transport in Cities

Funded by the EU

WG 3 Market Organisation

29-30 March, Sitges/Barcelona, Spain

2nd Working Group Meeting on

Institutional Framework and Cooperation

IntroductionMartin Ruesch, Rapp Trans AG

Zurich, Switzerland



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Contents

• Cluster Partners• Problems / Challenges addressed• Topics addressed in WG Meeting• Objectives / expectations for the meeting• Questions to be discussed• Programme for the WG Meeting• “Communication Rules”



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Profile Rapp Trans AG, Switzerland• Consulting company in traffic

and transport

• Established in 1896

• Private limited company basedin Switzerland

• Subsidiaries in France (Paris), UK (London) and theNetherlands (Amsterdam)

• Around 70 transport and trafficconsultants

• More Information: www.rapp.ch

• Services in public transport– Public transport network and

service planning– Planning of tariff and fare systems– Planning and design of tariff and

transportation associations– Development of revenue distribution

systems– Development of financing models– Tendering projects– Organisation models– Monitoring/Controlling projects– Institutional consulting (regulation,

etc.)



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Profile VTI, Stockholm, Sweden

www.vti.se• VTI, Statens väg- och transportforskningsinstitut, carries outapplied research in the fields of infrastructure, traffic and transport.

• State owned, 170 staff in four towns, turnover 20 M €,• Public Transport and its links to urban planning, retail patterns and regional

development• Several Light Rail projects for instance costs compared to other forms of

guided transport and buses • Competition and Tendering in the Transport Sector• New contract forms in the PT sector

http://www.vti.se/



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Profile VVO – Public Transport Authority of Upper Elbe Region

Halle

BautzenGörlitz

Dresden

Leipzig

Plauen

Zwickau

Chemnitz

•established in 1998•4.800 m²•1,2 Mio. inhabitants•194 Mio. passengers per year•16 PT operators

Halle

BautzenGörlitz

Dresden

Leipzig

Plauen

Zwickau

Chemnitz

•established in 1998•4.800 m²•1,2 Mio. inhabitants•194 Mio. passengers per year•16 PT operators

• One of 5 PTA´s in the State of Saxony

• Main tasks of VVO:– Integration of

several Public Transport modes

– Timetable integration

– Integration of tariff and fare system



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Challenges relating to Market Organisation

• Decreasing public ressources for public transport and lack of funds to finance investments and operation

• Low integration between local and regional(and national) transport networks and services, in overall mobility and transport planning

• Missing integrated tariff and fare systems• Low contribution of revenues to cost coverage• Low co-operation between PT companies• Unstable or unclear regulatory setting• Unclear division of responsiblities between actors in PT• Frequent political interference• Low implementation of quality and performance

monitoring• Few incentives for PT operators to cut costs and

increase revenues



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Actors and interrelations looked at

Main Focus

Public TransportAuthorities

PT Company PT Company PT Company

TariffUnion

TransportationAssociation

Public PlanningAuthorities(transport planningand land use)

National Authorizingagency

„Organizing Authority“

Systems suppliersand manufacturers

MobilityService Providers

Other private parties



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Adressed topics within Market Organisation

• Topic 1: Integration and Tariff Systems

• Topic 2: Institutional Framework and Cooperation

• Topic 3: Innovative Financing Models

• Topic 4: Incentive Contracts and Monitoring Systems



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Problems and Challenges adressedProblems• Changes in EU –regulation need for adaptation• Financial and organisational vacuum due to changes in the

responsibility from the state to regional/local authorities • Unstable or unclear regulatory setting• Frequent political interference • Unclear division of tasks, responsibilities and risks between

authorities and PT operators

Challenges• setting-up of sound and stable legal framework conditions• setting up of sound urban/regional organisational model• the implementation of Public Service Contracts that clearly define

the actors rights and obligations, thereby allocating opportunities and risks for operators and authorities in a fair and motivating way



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Scope of the Working Meeting



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EU institutional framework (new regulation)• Regulation covers road and rail PT with exclusive rights or

compensation• Rules cover

– Provision of PT Services of general economic interest– Conditions for imposing/contracting PSO and compensation– Public Service Contracts– Tendering (transparency, comparability)– Duration of contracts and conditions for extension– Freedom for setting social and quality standards– Self-provision and access to call for tenders– Subcontracting– Risk of disruption of PT services– Overcompensation– Transition– ……………………….



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Institutional Framework and Regulation (Swiss example)

regulated issue national regional local

PT as general public service

responsibilities and competencies

right of initiative

minimum amount of PT provided

contracting and tendering process

compensation mechanisms

rules for financing

coordination and integration

financing of PT supporting measures



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Organisation Models (1)• Classification of

organisational forms in Europe

• Authority initiated regimes, e.g.

– Switzerland– France outside Paris

region• Market initiated regimes,

e.g.– Great Britain

• Different roles of authorities:

– Licensing, authorising, concessionning, regulation, enterprising, subsidising

(MARETOPE Handbook)



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Organisation Models (2)• Important to define the

decision making and the responsibilities on framework, strategicand operational level

• Different organisationalmodels on regional / local level

• Split of responsibilitiesis different

framework level

strategic level

operational level

Authority

organising entity

Operator

supply planningfinancing

tariff policyPR / Marketing

revenue distributionsale / distribution

control centrequality management

transport service

[adapted from: traffiQ, 2006 ]

framework level

strategic level

operational level

Authority

organising entity

Operator

supply planningfinancing

tariff policyPR / Marketing

revenue distributionsale / distribution

control centrequality management

transport service

[adapted from: traffiQ, 2006 ]

framework level

strategic level

operational level

Authority=

Operator,

or owner of the operator

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Operator

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Operator

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organising entity

Operator

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Operator

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level

strategic level

operational level

Authority=

Operator,

or owner of the operator

aa

Operator

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ity

Authority

Operator

Authority

organising entity

Operator

Authority

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Objectives for the meeting

• To identify and validate main problems, trends and challenges in CEEC related to institutional framework and cooperation

• To exchange information, experiences and know how and information on institutional framework and cooperation between CEEC and other European cities/urban areas

• To present and discuss good practices examplesfrom operators and authorities from CEEC and other European Countries

• To derive conclusions on challenges and need for action



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Important questions to be discussed

• How to react on changes of the EU regulation with the (national), regional and local institutional set up?

• Which laws and regulations make sense on urban/regional level under what conditions?

• Which are the roles, tasks and responsibilities of authority/PTA and PT operator?

• Which organisational model is suitable for urban/regional transport? How to design an organising authority?

• How to organise the market to be ready for competition? (concessions, tendering etc.)



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Programme: Day 1 14:30 – 14:50 Working Group Session Introduction

Rapp Trans

14:50 – 15:30 Working Group Session Part 1: Verification/Validation of current situation, problems and challenges relating to institutional framework and cooperation

Rapp Trans

Results from the Inquiry

Current situation, problems and key challenges in CEEC and other countries related to institutional framework and cooperation (statements by the experts and discussion)

Validation of current situation, problems, trends and key challenges in CEEC Countries

15:30 – 18:00 Working Group Session Part 2: Institutional framework and regulation on EU level

VTI

Short introduction by VTI

Presentation on EU regulation from the Commissions view by Peter Faross, EU Commission, Directorate-General for Energy and Transport

Presentation on EU regulation from the operators view by Steffen Tippach, CEEP General Secretariat

Presentation of special examples from Sweden


Structured group discussion on EU regulation and impacts on national, regional/local institutional framework addressing the key questions and conclusions

Moderation: Martin Ruesch

Moderation: Bertil Hylén



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Programme: Day 2 (morning)9:30 – 11:00 Working Group Session Part 3: Institutional framework

and regulation on national/regional/local level

Rapp Trans

Introduction by Rapp Trans including overview on national, regional/local regulation


Presentation on institutional framework and regulation on national/regional/local level by Michel Quidort, Veolia France

Further examples and statements by experts on national/regional/local regulation

Structured group discussion addressing the key questions and conclusions

11:00 – 11:15 Coffee break

11:15 – 12:30 Working Group Session Part 4: Organisation models for regional / local public transport and co-operation between authorities and PT operators (Part A)

VVO

Introduction by VVO Organisation models for regional / local public transport and co-operation between authorities and PT operators (including examples from Germany and experiences from transportation association Oberelbe)


Discussion of results

12:30 – 13:30 Lunch

Moderation: Dieter Egger

Moderation: Lutz Auerbach



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Programme: Day 2 (afternoon) continuing 13:30 – 15:45

Working Group Session Part 4: Organisation models for regional / local public transport and co-operation between authorities and PT operators (Part B)

VVO Presentation on the organisation model for regional / local

public transport and co-operation between authorities and PT operators in Brno by Kvetoslav Havlik, KORDIS, Brno, CZ

Presentation on Sweden – some examples of contracts and co-operation by Bertil Hylen, vti, Sweden

Further examples and statements by experts on organisation models and cooperation

Questions to speakers and structured group discussion on good practice/experiences addressing the key questions and conclusions

15:45 – 16:00 Outlook on further activities in WG 3

Rapp Trans

16:00 – 16:30 Coffee Break

16:30 – 17:30 Closing session (Plenary)

UITP

20:00 Dinner

Moderation: Lutz Auerbach



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„Communication Rules“

• Discussions are the main part of the working meeting

• Presentations feed the discussions

• Try to keep the focus on the topic institutional frameworkand cooperation (already broad enough)

• Statements and inputs from your experiences are verywelcome



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Working Group Session Part 1: Verification/Validation of current situation, problems and challenges relating

to institutional framework and cooperation (14:50 -15:30)

• Results from the Inquiry (Input)• Discussion of results• Validation of problems/challenges • Importance of problems/challenges



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Most pressing problems relating to current legal framework (results from inquiry) (1)

Main problems with current legislation (mentioned more than once):

• missing rules for integration of PT (local, regional, national): • coordinator/integrator lacks legal power• local and regional authorities are forced into competitive positions• different modes (bus, tram, trolley, metro, rail) are regulated by different

laws which hinders integration especially in large cities

• unclear responsibilities of actors (planning, financing)• missing rules for financing infrastructure and for state subsidies

• unclear procedures for awarding contracts and setting the transport schemes



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Most pressing problems relating to currentlegal framework (results from inquiry) (2)

Further problems with current legislation (mentioned once):

• no national technical standards for payment by card technologies• lack of effective enforcement of legal obligations• law is not detailed/precise enough• missing power of ticket inspectors against irregular passengers



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Most pressing problems relating to cooperation between authorities and PT

operators (results from inquiry) (2)Problems related to cooperation :• Missing compensation rules

– High Quality and Service requirements without willingness to pay– Decision and coordination on tariffs and subsidies

• Lack of power of PTA’s• No organisational integration of local/regional transport• Interest Conflicts

– Contractual relationship to own public company is not always in line with PT interests

– Direct award to inhous operator• Not clear rules for cooperation missing organisation/agreement?• Not enough lobbying for public transport by authorities weak policy

or weak enforcement of policy?



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Most pressing problems relating to cooperation between authorities and PT

operators (results from inquiry) (2)Further problems related to cooperation:• Insufficient investments:

– Providing investments for improving infrastructure / Infrastructure development financing rules?

– Unsufficient renewal of rolling stock rules for depreciation rates or financing?

• Insufficient Controlling/Monitoring– Constantly growing costs monitoring and incentive contracts, financing

models?– Service quality possibility for monitoring, incentive contracts?– Low efficiency of public operators– Lack of incentives in PSC

• Powerful position of trade unions in authorities daughter companies• Incompetence of smaller PT operators



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Questions for the discussion

• Which are the most pressing problems/challengesrelating to institutional framework and cooperation?

• Are the results of the questionnaire complete and valid?

• What is the importance of theses problems / challenges?



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Working Group Session Part 2

15:30 – 18:00 Working Group Session Part 2: Institutional framework and regulation on EU level

VTI

Short introduction by VTI

Presentation on EU regulation from the Commissions view by Peter Faross, EU Commission, Directorate-General for Energy and Transport

Presentation on EU regulation from the operators view by Steffen Tippach, CEEP General Secretaria

Presentation of special examples from Sweden


Structured group discussion on EU regulation and impacts on national, regional/local institutional framework addressing the key questions and conclusions

institutional framework and cooperation...

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