Cost-effectiveness and financial efficiency are particularly critical for public transport investment and operations in developing countries. Presentations in this session explore public transport business models and and investment appraisal in relationship to those issues.
Analysis of Private Participation Effects in Bus Rapid Transit Projects in Ecuador
Juan Arias, University of WaterlooShow Abstract
Chris Bachmann, University of Waterloo
The two largest cities in Ecuador each implemented three BRT corridors from 1995 to 2013. The projects present similar characteristics, and thus a unique opportunity to analyze factors that influenced their performance. This paper identifies the level of private participation and the extent to which it influenced the outcomes of the projects. Two approaches were identified: 1) including incumbent operators by delegating vehicle acquisitions and operations; and 2) replacing them with a public company. Financial strength and interest of the incumbent operators to continue functioning along parallel routes were major issues. Quito was successful in the implementation of the first corridor through public delivery but failed its attempts with private participation. Guayaquil surmounted the barriers for effective private participation through a Special Purpose Vehicle (SPV) that managed the risk due to the inherent nature of the consortiums. It is expected that a deeper understanding of these processes will contribute to more efficient and sustainable transportation investments in Ecuador.
Procurement Model for Electric Buses in Latin America
Jone OrbeaShow Abstract
Sebastian Castellanos, WRI
Cristina Albuquerque Moreira da Silva, Universidade Federal do Rio Grande do Sul
Ryan Sclar, World Resources Institute
Berta Pinheiro, World Resources Institute
Bus services are fundamental components of the transportation networks in Latin America, but buses often account for a disproportionately large number of environmental externalities. Electric buses (e-buses) are emerging as an effective and pragmatic option for reducing greenhouse gas emissions and local pollutants. However, e-buses are difficult to procure in Latin America due to existing procurement challenges in the region, especially as those challenges relate to forming contracts to deal with high upfront costs and unknown risks. To overcome these procurement issues, this paper presents a new contractual model, based on literature and case study research. This new model suggests the separation of bus service responsibilities into three separate actors: (1) multiple bus procurement companies, (2) one or multiple infrastructure building companies, and (3) multiple bus operating companies. By separating bus service responsibilities, the proposed model would bring about three concrete improvements: (1) lower costs to the transit system, (2) better quality of service, and (3) lower-emission fleet deployment.
Three Revolutions in India: The Relative Costs of Modes Taking into Account Ride-Hailing, Electrification, and Automation
Jai Malik, University of California, DavisShow Abstract
Lewis Fulton, University of California, Davis
Gil Tal, University of California, Davis
Electrification and shared (on-demand) mobility systems are expected to have major impacts on our travel behavior. Electrification will reduce per-trip costs and provides an opportunity to reduce the negative impacts of vehicles on the environment. The advent of ride hailing companies like Uber/Lyft provide an opportunity of comfortable travel to people who do not own a car. On the other hand, it can also compete with public transit for customers. A number of studies have tried to understand the impact of these changes in the context of developed world. Their impact in the ‘developing world’ is much less studied. This paper investigates the per-trip costs of different modes, technologies, and “use cases” in Delhi, India and considers the implications of these costs on current and potential future travel behavior. Both out-of-pocket costs and some aspects of hedonic costs, such as the value of time are considered as the willingness to pay of travelers. Finally, external cost – cost of air pollution – is added to the analysis to understand the change in relative costs of modes. Overall it seems likely that for higher income individuals, on-demand services are competitive, especially for short trips (<5 km), possibly at the expense of transit systems and auto rickshaws. Including external costs of travel like air pollution have no significant impact on the relative costs of travel through these modes.
Latin America and the Cost-Effectiveness of Emissions Reductions from Clean Bus Technologies
Fiamma Perez-Prada, The World BankShow Abstract View Presentation
Bianca Bianchi Alves, The World Bank
Kavita Sethi, The World Bank
Diego Puga Barres, Mobilitas
Yin Qiu, The World Bank
Transport sector in Latin-America accounts for over one-third of CO2 emissions. Although shifting passengers from private vehicles to high capacity public transit has been identified as critical to relieve congestion and decarbonize transport, switching to Cleaner Bus Technologies can provide additional benefits in mitigating GHG emissions while reducing noise and air pollution. Still, the uptake of clean bus technologies in LAC is slower than the markets in China, Europe and the US. This paper focuses on deepening the understanding on the financial barriers for adopting Clean Bus Technologies by developing a cost-effectiveness analysis (CEA) that (i) assesses the marginal cost of reducing an additional ton of CO2 when switching from Diesel Buses to Clean Buses options and (ii) identifies the main drivers that determine this cost. The methodology has been applied to Santiago de Chile and results show that, given the current context, CNG are not a cost-efficient option for this city while and hybrid and electric buses are already a cost-efficient option to mitigate climate change.