4. Financial Analysis
4.1 Introduction
Today the role of public transport is perceived very seriously in terms of urban mobility and sustainable development, but even though the financial resources available are insufficient. Acquiring appropriate financing mechanisms is not only imperative for the development of transport system but also for the holistic growth of urban pockets.
The local government all over the world face financial constraints due to disparity between costs and revenues. Many urban planners think that revenues cannot be covered from fare box alone. Indian cities are also facing the same challenges. But due to some funding through JnNURM the city officials find some relief in procuring buses of high standards like present in developed countries.
There are two types of costs associated with transport system: one is capital cost and other is operating cost. Capital cost constitutes of infrastructural support, procurement of buses, and construction of bus stations. Whereas operating cost includes expenses incurred in fuel, technological services, salaries to operators of buses, and upgrading buses to better quality with time. Hence financial aspect takes a big role, because without investment of money, a huge infrastructural project is not possible. Other dilemma which urban planners face is setting correct fares in order to attract maximum users and save the system to run into losses.
In this section of my case study, I focus upon the financial burden of
Transportation financial matters, the investigation of the portion of transportation assets keeping in mind the end goal to address the issues of a general public. In a macroeconomic sense, transportation exercises shape a part of a country's aggregate financial item and assume a part in building or reinforcing a national or local economy and as an impact in the advancement of area and different assets. In a microeconomic sense, transportation includes relations in the middle of firms and individual buyers. The interest for and supply of transportation for both travelers and cargo, transportation evaluating, and the reasons why the transportation framework is both managed and deregulated are among its worries. Reference acquired from :http://www.britannica.com/topic/transportation-economics)
Most firms in the public transportation management market are aware of the transition away from traditional transit models. Tow of First Transit’s largest competitors, MV Transportation and TransDev, have invested millions of dollars in research to create the technology to broker delivery of this non-traditional mobility service. Both firms are well financed and have hired top industry personnel to lead these
The team addresses that the main purpose of the study is to address long-term inter-regional transportation problems and opportunities and to consider alternative actions to addrees these issues as part of developing an integrated, multi-modal transportation system that permits the capable movement of people and goods, and provides better economic and transportation linkages between urban growth centres in the GTA west study area (figure 1) (Transportation development strategy report, 2012). In order to finalize the purpose of the study, the project team identified the specific transportation problems and opportunities within the study area (Transportation development strategy report, 2012). They developed, assessed and evaluated a range of Area Transportation System Alternatives to address the identified issues relating to transportation, and opportunities presented within the study area (Transportation development strategy report, 2012). Lastly, the team recommended a Transportation Development Strategy based on the Area Transportation System Alternatives supported onward from the assessment (Transportation development strategy report,
I’m suggesting the city government show increase the number of public transport in the city.
Toronto must further improve its public transit system. Firstly, improving transit reduces commute time as well as the amount of cars that are on the road. Secondly, people depend on public transit so an improvement would be a great convenience for many people. Lastly, the improvement of public transit will create less pollution in Toronto.
Bus carriers have different stops in the city, so travelling from one direction it is better to chose a carrier with the closest bus stop to the final destination.
There are really many challenges if we try to improve public transportation, the government will be cost a lot of
Railways, as well as roads, are crucial inventions not only from the perspective of the governmental prosperity but also from the individuals' conveniences. While some people claim that the authorities should assign a budget for improvement of railways, others assert that a capital has to be allocated to roads system. In my opinion, both railroads and highways have significant advantages. Therefore, the officials should assign money in a balanced way.
The more modern life, the higher traveling. One country cannot develop without traveling. Thus, governments should give more money, and policies to improve the quality of streets, roads, highways and besides, governments have to increase more public transportation such as buses, trains, subways.. to service the needs of traveling.
There are two main culprits of the public transport industry responsible for this mess. These are namely the bus and rail companies who despite, receiving large government subsidies, simply can't rectify their problems.
Public transportation is serious need of a massive overhaul in this nation. We are in desperate need to catch up to the European standard of public transportation in this country. In Europe, citizens can travel across cities, bodies of water, and even counties with their state of the art public transportation system. Europeans are not nearly as reliant on cars and oil as the United States is because they have the much more practical option of taking the transportation provided to them by the government to where ever they need to go. They have set a model that the United States needs to strive for and meet in the near future.
Trains are everywhere in our society, we have jokes, toys, movies, and children’s television shows, but did you know rail transport started in 6th century Greece? The city of San Antonio, Texas is a fast-growing metropolitan city that has a very tremendous amount of people. It has been estimated that the city will grow by another million people in the next ten to twenty years. San Antonio’s traffic is becoming a huge issue and is quickly approaching to be one of the most congested areas in the states. The public transport in San Antonio consists of a very complex bus system, taxicabs, Trolley’s downtown, and the growing market of ridesharing drivers. San Antonio has had many talks and negotiations throughout the last two decades on getting a Light Rail system constructed to help with public transportation. This proposal is for specific businesses, the city of San Antonio and Bexar County to come to a funding agreement.
Less Cost - Road transport not only requires less initial capital investment, the cost of operation and maintenance is also comparatively lower. Even if the rate charged by road transport is a little higher than that by the railways, the actual effective cost of transporting goods by road is less. The actual cost is less due to road transport saving ion packing costs and the expenses of intermediate loading, unloading and handling charges.
As quoted by Rodrigue, J-P (2013), “the most important transport problems are often related to urban areas and take place where transport systems fails to satisfy the various requirements of urban mobility because of several reasons. Productivity of any urban area is highly dependent on its transport system and also its efficiency to regulate goods, workers and consumers between multiple origins and destinations”.
Competitors in the public buses industry includes GoAhead, Tower Transit and SMRT, all of which operates under the Bus Contracting Model whereby the Land Transport Authority (LTA) determines the bus routes that these buses operate, pays them a fixed fee to do so and retains the fare revenue. As such, SBS Transit will receive a smaller portion of the total fees given that they will be running lesser bus routes as compared to before due to the increased competition. They also ought to continue offering exceptional services to their passengers to stay ahead of the competition and prove to the LTA that they are able to take on more bus routes in