PE - Planeación estratégica de TIC

• Railway-based transport

In the group of MDCs, including Hanoi, HCMC and Bangkok, the urban rail public transport has been existing only in Bangkok, from1999. It was estimated that 3% of person trips were

Problems of quality and quality management for public transport in motorcycle dependent cities

made by mass rapid transit (MRT) (World Bank, 2007). The urban mass rapid transit (UMRT) is still under construction in both Hanoi and HCMC.

Figure 3-4: Illustration of development of railway-based transport

• Road-based transport

Road public transport modes consist of bus and paratransit system, e.g. tuk-tuk in Bangkok and motorcycle taxis in Hanoi and HCMC. There are also minibuses providing supplementary bus services around the city of Bangkok (Hossain and Iamtrakul, 2009).

Urban bus services in MDCs are nearly provided by a state monopoly where state-owned companies cover more than 50% of the market share. For example, Transport Service Company (TRANSERCO) in Hanoi, a state-owned company, occupied up to 92.23% of the total bus passengers. Bangkok’s urban bus services are provided by a state monopoly and supplemented by private operators under subcontracts.

Figure 3-5: Illustration of bus system

Authorities are generally not permitted to operate buses that are older than 10 years but due to Bus in Bangkok

Photo source: Tulyasuwan, N. (2013)

Bus in Hanoi

Photo source: Truong (2012) MRT in Bangok.

Photo source:

http://en.wikipedia.org/wiki/Mass_Rapid_Transit _Master_Plan_in_Bangkok_Metropolitan_Regio n

UMRT construction in Hanoi.

Photo source:http://thethaovanhoa.vn/xa-hoi/du- an-duong-sat-do-thi-ha-noi-cham-tien-do-hang- loat-goi-thau-n20130318084322618.htm

Problems of quality and quality management for public transport in motorcycle dependent cities

financial pressure, buses are being utilised for longer periods. For example, in late 2006, the average age of the BMTA fleet was 14 years, 1.83% of vehicle in TRANSERCO had age of over 10 years.

• Production and Efficiency

A significant indicator of productivity is the number of passengers carried in relation to the capacity of the system (Armstrong-Wright et al., 1987). A threshold value for a well- performing company is 1,000 - 1,500 passengers per bus per day. Based on this value, it is evident that Hanoi was quite successful in increasing bus usage in the last decade, with 1,176 passengers per bus per day. HCMC and Bangkok are unsuccessful cases, where a bus carries only 331 and 317 passengers per day, respectively (Table 3-2).

Table 3-2: Public transport performance in selected cities

Main operator Hanoi HCMC Bangkok

TRANSERCO SAMCO BMTA

Size of bus operating system

Bus fleets size 983 2,871 3,506

No_{. of staff 4,899 - 16,516}

Service characteristics

No_{. of routes 71 150 108}

Average No_{. of buses per route 14 19 32}

Total operating length (km) 1,188 2,164 2,593

Average route length (km) 16.7 14.4 24.0

Average distance between stops (km) 0.5 0.45 -

Total km operated per day (km) 227,567 350,193 725,438

Service km per bus per day 232 109 207

Financial performance

No_{. of passengers per year (10}6 _{pax) 402.6 414.3 -}

Daily bus passenger (106 _{pax) 1.15 1.06 1.1}

Daily No_{. of passenger per route 16,278 7,089 10,299}

Daily No_{. of passenger per bus 1,176 331 317}

Revenue (106 _{USD) 18.8 44.32 -}

Cost (106 _{USD) 48.84 79.19 -}

Subsidy (106 _{USD) 29.99 34.87 -}

Revenue per cost 0.385 0.559 -

Cost per kilometre (USD) 0.59 0.62 -

Cost per passenger (USD) 0.12 0.28 -

Problems of quality and quality management for public transport in motorcycle dependent cities

A further indication of the productivity is the total distance travelled by buses in service. This is expressed in terms of average kilometres per operating bus per day. A reasonable run bus service is from 210 to 260 kilometres per bus per day (Armstrong-Wright et al., 1987). HCMC continuously provided a fall-well outside of this range, at 109 kilometres per bus per day. Bangkok nearly reaches the threshold value with 207.

The revenue to cost ratio indicates that at present the company is operating under loss. Armstrong-Wright et al. (1987) recommends the revenue to cost ratio to be between 1.05: 1 to 1.08:1 for the system to be self-sufficient and avoid subsidies. Germany is a success example of financial sustainability in public transport, revenue have accounted for 77% of operating expenses (VDV, 2001-2008). Meanwhile, the share of government subsidies in public transport operating budgets in MDCs expresses a unproductively and inefficient system, data from TRAMOC (2012) and MOCPT (2012) show that revenue only covers from 38.5% to 55.9% of total operating costs, respectively. Hanoi and HCMC need a huge subsidy to maintain public transport system (30-35 million dollars).

Comparative analysis between MDCs shows that Hanoi seems to be more successful than HCMC because the costs (per passenger and per vehicle-km) of Hanoi have remained lower than that of HCMC. However, the annual growth rate of cost per passenger of HCMC has increased more slowly than that of Hanoi (8.2% vs 12.5%).

Table 3-3: Comparative study of cost in Hanoi and HCMC

Criterion Year/Period Hanoi (1) HCMC (2) Difference

(3) = (1) - (2)

Cost per pax (USD/HK) 2010 0.12 0.29 - 0.17

Cost per kilometre (USD/KM) 2010 0.62 0.65 - 0.03

Average growth rate of total

cost (%/year) 2005-2010 20.72% 17.51% + 3.21%

Average growth rate of cost

per pax (%/year) 2005-2010 12.51% 8.18% + 4.33%

Average growth rate of cost

per kilometre (%/year) 2008-2012 15.95% 14% + 1.95%

Source: TRAMOC (2012); MOCPT (2012);

In the components of public transport cost, fuel cost and salary contributed to the highest share in the total cost with more than 60%. While labour cost component in industrialized cities accounted for the highest percentage, at the current situation, labour cost in MDCs seems to stand at the second position under fuel cost. However, as income per capita increases, labour cost component will increase, thus the total cost of public transport will continuously increase.

Problems of quality and quality management for public transport in motorcycle dependent cities

Figure 3-6: Comparative analysis of cost components for public transport in selected Asian cities

Data source: Htun (2011), TRAMOC (2012).

3.2 Quality Management for Public Transport in Motorcycle Dependent Cities