Public Transport Authority for Hai Phong, Vietnam

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Public Transport Authority as an Efficient Solution
for Sustainable Urban Transport Development:
A Case Study in Hai Phong City
HCMC, 20 September 2017
Dinh Van HIEPa Eric TRELb
a Institute of Planning and Transportation Engineering (IPTE),
National University of Civil Engineering (NUCE), No. 55, Giaiphong str., Hanoi, Vietnam.
b Urban Transport Expert, Trel Transit, Amsterdam, The Netherlands.
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• 900,000 motorcycles on a
population of 1.9 million
(474 per 1,000 inhabitants)
21-Sep-17 EASTS-2017 IPTE
Present situation – Haiphong city as a case study
• 8 urban bus lines in operation
(and 2 on Catba island)
• Approx. 7 million passengers per
year (20,000 per day)
• Less than 1% of urban trips
made.

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3Infrastructure & passengers
Subsidy
4Fleet- Haiphong city as a case study
WB project

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 Planning in 2007 for Hai Phong Public Transport:
-> to meet 10- 15% of travelling demand of 18 bus lines. Further it
stated that there should be 33 bus lines in total by the year of 2020,
reaching 20- 25% of travelling demand.
Planning vs. Implementation: Haiphong city as a case study
 In fact (2016), the bus system serves not more than 1.0% of
the transport demand.
How to make it work?
6Urban transport 2015-2025
Population Hai Phong
increases by 10%
Economic growth 8-10%
 Mobility increases
57% more trips per day and more people buy a car
More congestion, pollution
and accidents
The city becomes less
accessible
Hai Phong needs good public transport
to keep the city liveable and accessible

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7How to make the PT successful?
1. Improve
the public transport
2. Make it affordable
and sustainable
4. Manage
the traffic
3. Manage
the operators
8How to make the PT successful?
1. Improve
the public transport
• Network extension
• Passenger information
• Bus Rapid Transit (priority)

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2. Make it affordable
and sustainable
How to make the PT successful?
• Fare structure/differentiation
• Subsidies
• Funding
Fare differentiation:
• Reduction for
target groups
• Reduction for
changing lines
Subsidy:
• available for all
operators (public and
private)
Funding:
• Parking fees
• Advertisement
• …
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3. Manage
the operators
• Establish a Public
Transport Authority (PTA)
• Competitive tendering
• Monitoring and
improvement
Establish a PTA
Contract incl.
specification of
services
Tendering for the
lowest subsidy
Monitoring and
penalties

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4. Manage
the traffic
• Discourage private
transport
• Traffic management
• Parking management
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OrganisationLegislation Financing
The house of public transport
Government policy and priorities
To propose PTA for Hai Phong

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Why a city need a PTA?
• Develop attractive public
transport
• Introduce modern systems:
smart card, real-time
information, BRT
• Contract and monitor bus
operators
• Manage fares and subsidies
Public Transport Authority (PTA)
14Best practices
Curitiba Oslo Singapore
Bologna Portland Madrid

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15Oslo, Norway: bus, tram & metro
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• Fare integration: including
transfer
• Ticket integration: one ticket
for all transport modes
Oslo, Norway: fare integration

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• Public Transport Authority: Ruter As, owned by city 60% and
county 40%, established in 2007.
• Organisation: interdisciplinary teams, customer and
process-oriented.
• Bus and ferry contracts: competitive tender.
• Tram and metro contracts: negotiation and direct award.
• Public transport share 32.5%.
• Fares cover 50% of expenses
Oslo, Norway: PTA
18Oslo, Norway: success
Start PTA

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Transport:
• Ticket and fare integration (smart card)
• Passenger Information System
• Bus Rapid Transit (BRT) & feeding systems
Best practices
Management:
• Public Transport Authority (PTA)
• Service contracts with all operators
• Competitive tendering
• Fare collection organised by PTA
• Subsidy to keep fares affordable
20Function framework for urban transport services
Based on Van de Velde’s approach (1999), the World Bank (2013) has
proposed a function framework for urban transport service as below:

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Diagram of functional classifications of public transport
provision
Shibayama (2011) designed a diagram for comparing organizational structures of
urban public transport utilized in London, Vienna, Tokyo and Seoul
22Government policy (Vietnam)
Management Paper No. 148/TTg-KTN
1/2014
on the implementation of solutions of rational
development of transportation modes in big
cities
Decision No. 13/2015/QĐ-TTg
7/2015
Mechanism and policy on promotion of public
pasenger transportation by bus
Decision No. 280/QĐ-TTg
3/2012
Approving the Proposal on bus public pasenger
transportation for period 2012-2020

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Level Actor Responsible for
STRATEGIC
Long term
GOALS
 Transport policy
 Subsidy budget
 Local regulations
Proposed PTA for Hai Phong city
OPERATIONAL
Short term
OPERATION
 Transport operation
 Investments in fleets/rolling
stock.
 Customer services
TACTICAL
Medium term
IMPLEMENTATION
 Public transport network
 Service levels
 Contracts with operators
 Fare structure and ticketing
 Investments in infrastructure
Operator
Operator
Public Transport Authority
Department of Transport
Hai Phong
People’s Committee
Operator
24Tasks of the PTA
1. Planning
2. Contracting
3. Promotion
4. Development

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Transport planning:
• analyse transport demand
• define the network and services
• advise on new infrastructure
Financial planning:
• calculate costs
• set affordable fares
• assess the need for additional
subsidy
• check the available budget
• if necessary, adjust the service plan
Task 1 - Planning
Combining technical and
financial planning is
essential
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Procurement:
• competitive tendering
Contracting:
• contract duration
• specification of services
• quality criteria and penalties
• subsidy mechanism
Monitoring:
• monitoring of performance
• application of penalties
Annual adjustment:
• annual adjustment of
network, services, fares and
subsidies
Task 2 - Contracting

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Information on bus services:
• On the internet
• On the bus stop
• In the vehicle
Promotion of public transport:
• Try-out tickets
• Social media
• Customer platform
• …
Task 3 - Communication
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• New lines
• New infrastructure
• Smart card
• Real-time information
• Bus Rapid Transit
• Traffic management on bus
routes
Task 4 - Development

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PTA organisation
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Phase 3Phase 2Phase 1
PTA Tasks per Development Phase
Start
1 - Planning
GPS
Bus Rapid Transit
Smart card
3 - Communication
Real-time
Information
2 - Contracting

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Phase
3
Phase
2
Phase
1
PTA proposed Staffing per Phase
Management 1 1 1
Transport Planning 1 2 2
Financial Planning 1 1 2
Procurement 0.5 1 1
Monitoring 2 3 4
Communication 0.5 1 1
Infrastructure Management 1 2
IT Systems 1 2
Supporting staff 4 7 10
Total 10 18 25
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• Establishment of a Public Transport Authority (PTA) sets
the stage for developing and managing successful,
attractive and sustainable urban public transport.
• A PTA should be developed step-by-step, starting with
contract management, performance monitoring and
network design and gradually assuming more tasks.
• A condition for successful urban public transport is the
provision of sufficient subsidy for the operators to renew
their fleet.
Conclusions (1)

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• The introduction of parking fees may provide
for the necessary funding.
• Last but not least, strong political backing and
courage is indispensable to make public
transport successful. That should not only be
reflected in policy papers but also in the
allocation of staff and budget.
Conclusions (2)

Public Transport Authority for Hai Phong, Vietnam

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