Transcript Funding opportunities of public transport – approaches

Funding opportunities of integrated public
transport – approaches from Germany
Key-note speech at the croatian pro-rail alliance conference
"Public passenger transport in role of Regional Development"
BSL Transportation Consultants GmbH & Co. KG
Cölln Haus
Brodschrangen 3 - 5
20457 Hamburg
Zagreb, 26 March 2015
[email protected]
www.bsl-transportation.com
Agenda
Introducing BSL
Transportation
Our team, portfolio and
references (excerpt)
Funding of
public
transport in
Germany
Questions and
panel
discussion
Joint discussion and / or
bilateral talks
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© BSL Transportation Consultants GmbH & Co. KG 2015
Funding structures of
German PT at a glance
Introducing BSL
Transportation
Funding of
public
transport in
Germany
Questions and
panel
discussion
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© BSL Transportation Consultants GmbH & Co. KG 2015
Agenda
BSL Transportation is a consultancy specialised on the Transportation
and Logistics sectors with a focus on Public Transport

Founded in 2010 as a spin-off of the market leading
(public) transport consultancy in Germany

Four partners with more than 50 years of
experience in consultancy

Highly experienced and senior team

In-depth market knowledge and comprehensive
methodological expertise

Strongly committed to quality and innovation

Holistic approach ranging from strategy development to operational process reengineering

Partner of top and senior management of our
clients
© BSL Transportation Consultants GmbH & Co. KG 2015
PROFILE
Source: BSL Transportation Consultants
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Our approach enables us to comprehensively and efficiently support all
market players
BSL’S APPROACH AND BUSINESS AREAS

Specialised: As experts in various
business areas, we focus on and have
accumulated profound knowledge of the
markets, stakeholders and processes
Innovative: We continuously strive to
develop new consulting instruments and
methods and to improve existing ones

Interdisciplinary: We provide full service
from strategic consulting to implementation
consulting at operational and technical level

Cooperative: We are operating in a broad
network

International: We provide support to clients
all over the world
Transport
Short
Distance
Passenger
Transport
(Heavy)
Railways
Rail
Cargo
Logistics
© BSL Transportation Consultants GmbH & Co. KG 2015

Source: BSL Transportation Consultants
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BSL Transportation offers a wide consulting portfolio – focus of today‘s
presentation is organisational concepts and marketing and sales
CONSULTING PORTFOLIO
 Operational and
organisational
structure
 Change management
 Funding and financing
Process analysis





Operations
Maintenance
Overhead
Sales
…
FOCUS
Marketing and sales
Strategic concepts
Benchmarking/target costing
 Cost / productivity analysis
 Target costing
 Analysis of wage level
 Market entry / bid support
 Restructuring process
 Innovation and technology
agreements
 ...
management
 …
IT-Support
Asset Management
 IT-Strategy
 Process optimisation using
 Procurement
planning
 Investment and
maintenance mgmt.
 ...
tools like Depot Management Systems, ICTS etc.
 …
M&A
 Customer surveys
 Ticketing and fare
systems
 Revenue sharing
agreements
Controlling/management tools
 Balanced score cards
 Quality management
 Controlling
concepts
 ...
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© BSL Transportation Consultants GmbH & Co. KG 2015
FOCUS
Organisational concepts
Introducing BSL
Transportation
Funding of
public
transport in
Germany
Questions and
panel
discussion
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© BSL Transportation Consultants GmbH & Co. KG 2015
Agenda
Benchmarks between european cities show that fare revenues only
cover part of the financial needs of public transportation
INTERNATIONAL FUNDING STRUCTURES
6%
20%
51%
56%
36%
60%
61%
Other revenues
Fees (Versement Transport)
Public funding
Fare revenues
48%
49%
Berlin
44%
Barcelona
40%
39%
39%
Madrid
Amsterdam
Paris
© BSL Transportation Consultants GmbH & Co. KG 2015
19%
32%
Brüssel
Source: Friedrich-Ebert-Stiftung
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In Germany fare revenues on average only cover 37% of the total public
transport costs – high operational subsidies needed
GERMAN FUNDING STRUCTURE (1/2)
Revenue structure public transport in Germany (bn EUR)
24.6
2.2
© BSL Transportation Consultants GmbH & Co. KG 2015
10.7
2.7
6.3
2.7
9.0
Total costs Tarif loss
Other
compensations subsidies
Other
Fare
revenue
revenues
(advertising,
etc.)
ex TA -Fare
revenues
TA Fare
revenues
4.0
2.3
Thereof
season
tickets
Pay by ride
Source: BSL Transportation Consultants Research
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Germany has a complex funding system, however, the regionalisation
funds are an efficient financial instrument to assure operations
GERMAN FUNDING STRUCTURE (2/2)
Simplified
FEDERAL GOVERNMENT
Regionalisation funds
Regionalisation
funds
Municipality
transport
financing
Other financial
instruments
FEDERAL STATES
Contracts
Public transport
allocation
MUNICIPAL LEVEL
School traffic
RAILWAY COMPANIES


Contracts
Funding of
transport
association
MUNICIPAL OWNERS
© BSL Transportation Consultants GmbH & Co. KG 2015
Infrastructure
Deficit financing
BUS COMPANIES
Fare revenues
PASSENGERS
Source: Friedrich-Ebert-Stiftung (2010)
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In Germany transport companies joined to 40 transport associations1
(“Verkehrsverbünde”) which account for 70% of total fare revenues
TRANSPORT ASSOCIATIONS IN GERMANY
6,295
Verkehrsverbund Hegau-Bodensee
36
Verkehrsverbund Oberelbe
150
174
204
228
339
….
Verkehrsverbund Bremen/ Niedersachsen
134
Mitteldeutscher Verkehrsverbund
437
30%
70%
530
580
Großraum-Verkehr Hannover
Verkehrsverbudn Großraum Nürnberg
© BSL Transportation Consultants GmbH & Co. KG 2015
TA tariffs
Karlsruher Verkehrsverbund
63
69
Verkehrsverbund Rhein-Neckar
Verkehrs- und Tarifverbund Stuttgart
639
Verkehrsverbund Rhein-Sieg
Hamburger Verkehrsverbund
876
Company
tariffs2)
Münchener Verkerhs- und Tarifverbund
Rhein-Main-Verkehrsverbund
965
Verkehrsverbund Rhein-Ruhr
Verkehrsverbund Berlin-Brandenburg
Revenues (m€)
1) N=40; in addition, there are more than 20 tariff associations
2) Mainly consisting of Deutsche Bahn AG
Source: BSL Transportation Consultants Research
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The main reason for transport companies to work jointly in transport
associations is the increase of their total fare revenues
CHARACTERISTICS OF AN INTEGRATED NETWORK
Transport offer
Fare system
Sales system
Communication

Joint traffic
planning
 Timetable
coordination
(connection
assurance)
 Constructional
aspects and
infrastructure
(e.g. stations)

Integrated fare
system for using
bus and rail in
common
 Travel distance
determines price
instead of the
change of the
traffic carrier

One ticket valid
for both, bus and
rail
 Shared ticket sale
by all associated
transport
companies
 Same distribution
technology

Joint marketing of
the provided
transport offer
 Common timetable information
and enquiry
management
 Marketing of
targets instead of
companies
Revenue sharing agreements
Source: BSL Transportation Consultants Research
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© BSL Transportation Consultants GmbH & Co. KG 2015
BUS UND ZUG
Three financial impacts are linked to the foundation of transport
associations
FINANCIAL EFFECTS OF TRANSPORT ASSOCIATIONS

Significant increase in passenger numbers and
fare revenues
 Improved transport offer and joint marketing leads
to significant passenger growth

Tariff losses
Administrative
costs
The price of two separate tickets (e.g. bus and
train) exceeds the price of one combined ticket for
the same route length
 Losses due to accociation tariffs can be calculated
exactely and does not have to be that high
Positive effects
resulting from
passenger increase
usually clearly
exceed tariff losses
and administrative
costs

Costs occur for the implementation of transport
associations e.g. for personnel and marketing
 In Germany administrative costs amount to
approx. 2-4 percent of the yearly fare revenues of
transport associations
Source: BSL Transportation Consultants Research
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© BSL Transportation Consultants GmbH & Co. KG 2015
Mehrverkehrtraffic
Increased
We provide extensive know-how in the area of developing integrated
public transport…
LNVG, Hannover
 Realisation of a state-wide fare
system for rail and bus
 Implementation of a revenue
sharing system
LVS, Kiel
 Realisation of a state-wide fare
system for rail and bus
 Implementation of a revenue
sharing system
VRT (Trier), VSN (Göttingen)
 Realisation of integrated
transport systems
 Development of fare systems
and revenue sharing systems
Berliner Verkehrsbetriebe
 Development of a market
strategy
 Action plan for fare system and
sales system
Deutsche Bahn, Frankfurt
 Design of a nationwide
transport association
 Study for the future
organisation of the association
HHA (Hamburg), SWM
(München), IFTEC (Leipzig)
 Analysis of the ticket
distribution technology
 Costs, productivity, quality and
revenues
1) LVS: Landesweiten Verkehrsservice Gesellschaft, VRT: Verkehrsverbund Region Trier, VSN: Verkehrsverbund Südniedersachsen,
HHA: Hamburger Hochbahn, SWM: Stadtwerke München, LNVG: Landesnahverkehrsgesellschaft Niedersachsen
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© BSL Transportation Consultants GmbH & Co. KG 2015
CREDENTIALS1
… and are able to support our clients from the strategic planning of an
integrated public transport system until the implementation process
Comparing single tickets South American and Chinese metro
systems have the lowest price level, Europe the highest
EXAMPLES
[$]
Min/Max
Single Ticket sorted by price level
Exchange rates normalised
international benchmarks of fare systems
GIS-based market analysis
3,75
3,5
3,0
Heutige Netzabdeckung mit 320 Privaten Agenturen
(Ist: Ende 2005)
2,5
2,0
1,5
Ø 1,21
HANNOVER
1,0
0,5
0,18
Stadtgebiet Hannover
Anzahl Verkaufsstellen 2005
0,0
0028-019\presenta\0028_019_Vorstand_230306_Druck2
© BSL 2006
Optimisation Preisspielraum
models for fare system
Seniorenticket
– 21 –
Einnahmen in
[T EUR]
Live is live! Verschiedene Geräte-Typen und Bedienkonzepte
 Angebot eines Senioren Abos und
einer Jahreskarte für Senioren
40.000
550 €
35.000
500€
30.000
450 €
441€
406€
25.000
24,1
350 €
20.000
17,2
15.000
250 €
10.000
10,4
150 €
5.000
50 €
20%
30%
40%
50%
30%
40%
50%
0
60%
70%
80%
Marktausschöpfung in [%]
172,3
229,7
287,2 = Senioren in Tausend
– 57 –
Introduction of new sales system
Erläuterung
Preis p.a.
[EUR]
Bahn-Haltestelle
Bus-Haltestelle
HEM M INGEN
Bei einer Marktausschöpfung von 30% sind Mehreinnahmen von
ca. 10,4 Mio. EUR realisierbar
2006/9999001/charts/fares_CHINA.xls/Analysis_Dollar_Single_Ticket/Dia 5 CH75
2006/Projekte_2006/9999001_LRR_Fare_Bench/praesenta/9999001_fundus_actual_mit_namen.ppt
© BSL 2006
1 (118)
2 (45)
3 (13)
(8)
4
(4)
5
(1)
6
RONNENBERG
 Beispielhafte Preisstaffelung:
 Preisstaffelung Jahreskarte AB:


438
172
387
230
Funktionen des neuen FKA (1)
€ (33% Rabatt) bei
Tausend Senioren
€ (38% Rabatt) bei
Tausend Senioren
Beleuchtete
Vorderseite
 Preisstaffelung Abonnement AB:


451
172
399
230
€ (33% Rabatt) bei
Tausend Senioren
€ (38% Rabatt) bei
Tausend Senioren
 Kalkulatorische Gewinnspanne im
Tarifgebiet ABC:
 10,4 Mio. € bei 30% MA
 17,2 Mio. € bei 40% MA
 24,1 Mio. € bei 50% MA
Kalkulatorische Einnahmen
Preissetzung bei konstantem Umsatz
Gewährung von 80% Rabatt des Preises bei konstantem Umsatz
Bedienelement
 15‘‘ Display mit
Touchscreen
Beleuchtete
Ausgabeschale
 Thermodruck mit min.
2 Papierrollen à 5.000
Tickets bzw. 2.500 Cards
Münzeinwurf
 Annahme aller Euromünzen
 Aus Einnahmen selbstfüllende Münzspeicher
 Zusätzliche Münzspeicher
 Last in - first out - Verfahren
PinPad für ecCash
Kartenlesegerät
für ec-Karte,
Geldkarte und
Kreditkarte
BanknotenVerarbeitung
 Annahme von
5 / 10 / 20 / 50 Euro
 Kein Banknotenwechsel
21
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© BSL 2007
– 105 –
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© BSL Transportation Consultants GmbH & Co. KG 2015
Berlin
Munich
London
Toronto
Melbourne
Montreal
New York
Paris
Vienna
Tokyo
Chicago
Barcelona
Milan
Madrid
Washington
Rome
Boston
Los Angeles
Seoul
Budapest
São Paulo
Prague
Santiago
Moscow
Singapore
HongKong
Tianjin
Beijing
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St
Nanjing
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Shenzhen
Chongqing
Guangzhou
Wuhan
Changchun
Buenos Aires
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innerhalb eines 500m-Radius um Haltestellen
Introducing BSL
Transportation
Funding of
public
transport in
Germany
Questions and
panel
discussion
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© BSL Transportation Consultants GmbH & Co. KG 2015
Agenda
© BSL Transportation Consultants GmbH & Co. KG 2015
BSL Transportation Consultants GmbH & Co. KG
Cölln Haus
Brodschrangen 3 - 5
20457 Hamburg
[email protected]
www.bsl-transportation.com
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