Implementing

Real TOD

Dr Chris Hale
Department of Infrastructure Engineering
The University of Melbourne
 Agenda
• Defining TOD - ridership maximisation
• Defining TOD - customer service approach
• Link to transit operational finance
• Capital investment programs
• Rail + Property model

• Transport performance
benchmarks for TOD
 Transit: Ridership & Critical Mass

Consider this perspective:

“The goal of a transit agency should be to maximise
ridership...”
Transit: Customer-service principles

“the goal of a transit agency should be to

optimise the quality of journey experiences...”
a “network” concept

5
5
Transition into ‘tiered transit’

• Fully embrace appropriate modal technologies

• Fully integrate the system
• Far higher rates of transfer
• Each transit mode to play its “natural” role

6
MASS TRANSIT STRATEGY - Embrace growth

• Growing overall ridership

• Economies of scale
• Growing off-peak, non peak-
directional ridership
• Attention to market
segments
• Enlightened fare structures
• Targets for ongoing growth
Operational Finance
Approximate passenger demand and operating ratio
selected mid-size networks

Agency Daily riders (Approx) Operating Ratio (Approx)

Hong Kong MTR 4.4 million 190%

Munich MVV 2 million 70%
Singapore SMRT 1.72 million 126%
Washington DC Metro 750,000 weekdays 76% - 80%
Sydney CityRail 900,000 + 30%
Melbourne Metro 585,000 29%
SF Bay Area BART 362,000 73%
New Jersey NJT 270,000 36%
Brisbane CityTrain 170,000 30%
Revenue-side opportunity
 143 382
Brisbane QR CityTrain 170

Perth -Transperth 67 173

200

162270 860
New Jersey NJT

San Francisco Bay Area BART 43 170 362

200 830
Melbourne Metro 585

Washington DC Metro 89170 750

Network length (km)

87
93
Nagoya Subway 1,000 No. Stations

300 1,600
Sydney CityRail 1,000
Daily PAX (thousands)

278 803
Hamburg HVV 1,500

90
51
Singapore SMRT 1720

245 540
Munich MVV 2000

183
130
Hankyu Corporation 2100

130
123
Osaka OMTB 2250

100
108
Tokyu Corporation (Tokyo) 2700

Hong Kong MTR 85175 4400

0 500 1000 1500 2000 2500 3000 3500 4000 4500

 Asset Utilisation - Peak to Base Ratio
System/city Defined peak-to-base ratio

Hong Kong MTR 30/70

Munich MVV 35/65
SF Bay Area BART 57/43
Sydney CityRail 61/39
New Jersey NJT 62/38
Washington DC Metro 65/35
Melbourne Metro 70/30
Brisbane CityTrain 72/28
A workable capital finance model
Location Project Project Project Cost $US Value capture or Mechanism
Timeframe innovative
(May 2011 rates) finance:
% project cost
Los Angeles Red Line Metro Completed 1993 $1.42b 9% Benefit assessment district

Los Angeles Exposition Boulevard LRT 2012-2015 $1.63b 57% Bond finance, repaid by local sales tax
phase2 increase
Los Angeles Regional Connector LRT 2015-2025 $1.32b 12% Bond finance, repaid by local sales tax
increase
Los Angeles Crenshaw Transit Corridor 2012-2018 $1.47b 82% Bond finance, repaid by local sales tax
LRT increase
Los Angeles Gold Line Eastside extension 2022-2035 $1.31b 97% Bond finance, repaid by local sales tax
LRT increase
Los Angeles Gold Line Foothill extension 2010-2017 $758m 97% Bond finance, repaid by local sales tax
LRT increase
Los Angeles Green Line LAX extension 2012-2028 $200m 100% Bond finance, repaid by local sales tax
LRT increase
Los Angeles Green Line extension to 2028-2035 $280m 97% Bond finance, repaid by local sales tax
South Bay Corridor LRT increase
London Crossrail 2007 - 2018 $26b 7% TOD/joint development
London Crossrail 2007 - 2018 $26b 50% Bond finance, repaid by “business rate
supplement” within Greater London
Authority Area
Hong Kong South Island Line (East) 2011 - 2014 $1.6b 100% “Rail plus property” model
Hong Kong Kwun Tong Line Extension 2010 - 2014 $681m 100% “Rail plus property” model

San Francisco Transbay Transit Centre 2009 - $4.12b 33% TIF and assessment district
Washington DC New York Ave Metro Station Opened 2004 $110m 23% Assessment district
Virginia Dulles Metro Corridor 2010 - $5.25b 14% Assessment district
extension
Atlanta Atlanta beltline 2007- $2.8b 61% Tax increment financing
Dallas DART LRT Green Line Opened 2010 $868 m 18.5% Tax increment financing
Portland Portland Streetcar Opened 2001 $103m 40% TIF & assessment district
 East Asian Rail/Property Model
- transit agencies as TOD leaders
Hong Kong MTR
Corporation

Hong Kong MTR – non fare revenue performance

(source: HK MTR 2008, p11)

Financial year
2007 2006 2005 2004 2003

Non-fare
revenue as a %
33.4 31.6 31.4 29.0 27.7
of turnover
 Japanese Private Railways

Indicative non-transport revenues at

Japanese rail companies
Source: Saito 1997, p5. Figures are generally for 1995

Rail % total revenue from

company non-ticket sources
Tobu 26
Seibu 61
Keio 23
Odakyu 37
Tokyu 60
Keikyu 35
Sotetsu 72
Kintetsu 22
Hanshin 52
Meitetsu 30
21
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 But remember – the role of quality

27
Singapore SMRT
 Mode Shift - goals, targets and outcomes...
50

45 44 44
43
40 40
40 38
37
36
35 35
35
30
30 28
Mode share

26 26
25 24

20
Transit
15
Walk/cycle
10 Total
5

0
 90
85

80

70
70 67
63

60 58 58 58 57 56
53
Mode share %

50

40

30 Transit
Walk/cycle
20
Total
10

0
Thanks...