24 Jan 2011: SEQ: Current fare strategy is not the answer

[ozbob]

Media release 24 January 2011

SEQ: Current fare strategy is not the answer

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport commuters has called for the Queensland Government to reconsider its fare strategy. Increasing fares alone does not guarantee reduced subsidy.

Robert Dow, Spokesman for RAIL Back On Track said:

"The Government's stated aim is to reduce the subsidy per trip from 75% to 70% (1).  RAIL Back on Track believes this is unlikely to be achieved by simply putting up the price.  A number of people will return to driving, and in fact a number of rail commuters appear to have been doing precisely this.  Of concern is that TransLink's own figures show that the subsidy per trip has in fact been increasing (2).  The problem is that rail patronage is stagnating and actually contracted in the middle two quarters of 2009/10.  Another aspect is the Northern Busway delays which were still occurring in the second quarter 09/10, when the highest amount of subsidy per trip was recorded."

"RAIL Back on Track believes the only thing which will reduce the level of subsidy significantly is improved service levels on rail, and particularly the service levels in the off peak periods.  All systems with high fare-box recovery ratios have good off peak frequency.  Examples include London Underground, MTR (Hong Kong), Japan Rail as well as a number of Canadian systems.  Even cities such as Boston and Atlanta show better cost recovery despite having urban densities below that of Brisbane (5). Properly using the rail system would get the best value out of the fixed costs incurred, which are largely unavoidable.  These costs also dominate public transport expenditure.  Why not actually get value for money from the investment?  There are also advantages from increased rail patronage of reduced road trauma and a reduced need for road building as well as congestion reduction."

"Unless the fare strategy is improved and service frequency increased we fear that there will be a vicious cycle of service cuts, which will actually do very little to save money as the rail system's costs are largely fixed costs based on the capacity required in peak hour.  The worsening cost recovery may well be lead to even more drastic cuts (4).  Cost recovery appears to be not really a function of density, which is similar to what Dr Paul Mees has found regarding density (6, 7)."

"It would be one thing if the increased fares occurred with a significantly improving service, but 305 000 extra weekly seats is little more than the growth which was previously occurring.  Growth of 7.4% p.a. was occurring in the year to 2008/09, and the average growth from 2003/04 was higher than this (8).  This growth on a base of 181 million trips works out at an extra 258 000 weekly trips.  Also 44 000 (14%) have been wasted on bus route P88 which would not have been required if sensible city stop locations had not been broken on the opening of King George Square Bus Station."

References:

1. http://www.couriermail.com.au/news/queensland/anna-bligh-lures-commuters-to-go-card-with-giveaway-plan/story-e6freoof-1225786833304

2. Translink Tracker, in particular: http://www.translink.com.au/resources/about-translink/reporting-and-publications/2009-10-quarterly-report-apr-to-jun.pdf p4

3. http://findarticles.com/p/articles/mi_m1215/is_7_205/ai_n6150069/

4. http://www.cphabaltimore.org/pdf/TransitFareboxFactSheet2.06.pdf

5. http://www.itsmarta.com/uploadedFiles/MARTA_Matters/Finances/Efficiency%20Brochure%202nd%20revision%20060710.pdf

6. http://www.smh.com.au/national/units-not-crucial-for-good-public-transport-study-finds-20110104-19f5h.html

7. http://www.3aw.com.au/displayPopUpPlayerAction.action?&url=http://media.mytalk.com.au/3AW/AUDIO/050111_Paul_Mees.mp3

8. http://www.translink.com.au/resources/about-translink/reporting-and-publications/2008-09-quarterly-report-apr-to-jun.pdf

Contact:

Robert Dow
Administration
admin@backontrack.org

[ozbob]

Fare strategy discussion thread --> http://railbotforum.org/mbs/index.php?topic=2877.0

[somebody]

I wonder if we should have included this link: http://en.wikipedia.org/wiki/Beeching_axe

Didn't think of that one in time.

[#Metro]

Yes, why do I suspect that the Sunshine Coast line would be a candidate for Beeching?

[Stillwater]

Think more along the lines of bye-bye Westlander and/or Spirit of the Outback.  Sunshine Coast line needed for freight, although CAMCOS might get shoved out a few more years.  Replacement Sunlander probably will go ahead.