Travel Plans as Money Saving Tools or

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Travel Plans as Money Saving Tools or
Building the Business Case Adrian
Taylor Sustainable Transport Team Leader Mon
7th October 2002Manchester
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What is a Travel Plan?

• A package of measures to efficiently manage the
  transport impact of an organisation

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What does a Travel Plan cover?

• Staff commuter trips
• Trips by visitors, clients, students or patients
• Business trips
• Fleet
• Suppliers
• Most people concentrate on commuting trips but
  for retail and leisure devts shoppers or visitors
  are the most important.

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Travel Plans should have plenty of E numbers

• E ffective
• E quitable
• E nergy Efficient
• E ngaging
• E conomical
• Last point economical doesnt necessary mean
  cheap. Often we need to sell them to the money
  men as being the cheaper option ie good business
  sense!

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What are the potential impacts of Travel Plans

• Ligtermoet (1998 study in NL)
• Studied the GTP of 2000 organisations
• Basic GTPs can achieve an 8 decrease in SOV
• Luxury GTPs which incorporate financial
  incentives and disincentives can achieve a 15 to
  20 decrease in SOV
• Schreffler (1996 study)
• Impacts range from 6 to 32 in NL and from 6 to
  50 in USA.
• Trip reduction measures were most sucessful
  where programes contained a mixture of incentives
  and disincentives. The least effective GTPs were
  those that contained soft incentives only.

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Impacts Achieved

• Hewlett Packard in Scotland
• SOV 65 in 1997, 59 in 1999
• Royal Bank of Scotland
• Proportion car sharing rose from 25 to 35
• Ministry of transport, Hague, NL
• SOV went from 31 in 1991 to 22 over 2 years
• City of Irvine University in California
• Compressed Working Week 1991 - 2001
• 16 reduction in sick leave
• 17 reduction in overtime
• 10 reduction in commuting journeys
• Southampton Uni Hospital NHS Trust
• 12 reduction in SOV ( cash out, 175k on
  subsidised buses)

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Target Setting
4,760
5,762
5,762
0
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So What

• Whats this got to do with the Business Case?

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Impact on Parking
616
Increase in Parking requirement
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Cost of Parking Spaces

• 616 surface level parking spaces
• Capital cost _at_ 1k - 3k 616,000 to 1.85m
• Annual cost _at_ 200 each 123,200 pa
• 616 Multi-storey car park
• Capital cost _at_ 5k-7k each 3.1m to 4.3m
• Annual cost _at_ 300 each 184,800 pa
• 616 space Underground car park
• Capital cost _at_ 12k each 7.39m
• 616 space Automated car park eg Edinburgh
• Capital cost _at_ 10k each 6.16m

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• Hence a Travel Plan that delivers a 20 decrease
  in No of cars can save capital costs ranging from
  600,000 to 7 million
• This could be your Travel Plan budget

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Mileage Allowances

• Warwick District Council
• Located close to Leamington Town Centre
• 12-15 minute walk to station with London
  connection
• 450 staff
• Car mileage payments for 1999/00 was 620,000 ie
  1,380 per person on average
• Reduce this by 20, creates a budget of 124k per
  annum

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Reduce Mileage Allowance How?

• Reduce mileage reimbursement rates eg 60p/mile to
  48p/mile would this be disastrous?
• Scrap higher rates for larger engine sizes.
• General restructuring of rates (essential user
  etc)
• Notts CC saved 4m in 4 years
• Oxfordshire CC restricted mileage allowances in
  1993 and saved 100k
• Encourage use of more fuel efficient cars
• Hire car agreements. You are the boss.
• Dont accept what Hertz/Enterprise/National/Avis
  etc try to sell you. Tell them what you want

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Hire Cars/Pool Cars
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Cheaper (cleaner) Fuel - LPG

• Cost of conversion is 1,300
• Can get up to 75 of conversion cost from
  Powershift
• Can save 1.70 to 2.00 per gallon using LPG
  compared to unleaded
• If do 12,000 miles pa, org or individual can save
  700 pa

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Management Information

• Specify to Hire car company the management info
  you require
• Redesign expense claim forms ie separate code for
  hire car petrol, pool car petrol, Co car petrol,
  own car petrol.
• For inter-site transport, separately identify
  mode used, time of travel and costs claimed

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Raising Revenue

• Ensure its Ringfenced and not lost in a black
  hole somewhere
• Charge for Parking Permits
• Charge for parking on a daily basis

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Parking Permits

• Charge for Parking Permits
• Renew on annual basis
• Charge a rate that makes people think. 20 a year
  will hardly cover admin costs. PT passes cost
  400 pa
• Control issue. One Hospital working for has
  issued 4,000 passes at one site and has less than
  2000 staff.
• If issue passes, can then buy them back in the
  future, can see if staff are parking in
  residential areas, enable you to prioritise who
  gets one and can raise revenue.
• Decent revenue stream - 500 space car park can
  generate 50k pa up front if charge 100 per pass
  pa

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Parking Charges

• Bristol University
• Charges 0.006 of salary as a daily parking
  charge
• Somebody on 30k pa pays 1.80 per day
• Average charge is 250 pa
• Raises 220k per annum.
• Jont Coles Cash Cow
• Derriford, Plymouth Hospital
• Staff pay 50p per day generates 120k pa
• Visitors pay 1 per day, generates 300k pa
• Manchester Airport
• 4000 spaces, charges orgs 240 per space. Raises
  1m

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Other cost savings ways to justify Travel Plan
budget

• Video conferencing RBoS saved 70k per month
  through video-conferencing
• Fuel Economy
• Driver training
• Education re air con, tyre pressure,
• Compressed working week Irvine Uni reduced sick
  leave by 17 and overtime cost by 17 in 1991

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Other Potential Cost savings

• Workplace Parking Charges eg Nottingham CC plan
  to charge orgs in 2004 1 per space per day.
• Save cost of Section 106 conditions
• One Hospital Trust will have to pay for full
  signalisation of a junction if traffic flows
  exceed trigger levels outside main entrance est
  250k!
• Cost of inter-site transport Midlands Hospital,
  3 sites cost 1m pa
• Expanding? Then Build on your car parks prime
  location, close to other offices, no re-location
  issues

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Summary

• Many of you are struggling to implement a WPTP
  with very little budget and very little effective
  support
• Despite your best efforts, you are unlikely to
  achieve more than a modest decrease in car trips
  unless you
• Provide good incentives to those not travelling
  by car
• Increase the cost of parking
• Decrease the availability of parking
• Decrease mileage allowances
• Promote the use of fuel efficient hire cars, pool
  cars, fleet vehicles and company/lease cars
• A combination of some or all of the above

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Summary ( Cont)

• Provide good incentives to those not travelling
  by car
• Increase the cost of parking
• Decrease the availability of parking
• Decrease mileage allowances
• Promote the use of fuel efficient hire cars, pool
  cars, fleet vehicles and company/lease cars
• The ones highlighted in yellow help you raise
  revenue .
• Unless you are working for a cash rich,
  philanthropic organisation, you will need these
  to help you justify the costs of decent WPTP
  measures.

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Final Thoughts

• Identify whats driving your need for a Travel
  Plan
• Normally needs more than environmental concern
• If you plan to subsidise/fund bus services or
  provide cash incentives to non driving staff,
  then you probably need a budget of in excess of
  100k pa
• If you need to reduce existing or future No. of
  car trips or parking demand, then
  incentives/disincentives required
• Use potential cost savings to help justify WPTP
  budget
• Make sure any additional parking revenues or
  mileage savings are ring-fenced, hypothecated,
  earmarked, set aside.

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• The Site Specific Advice scheme still available
  but it has been re-branded
• www.transportenergy.org.uk/bestpractice

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• Adrian Taylor
• Sustainable Transport Team
• Atkins
• Adrian.taylor_at_atkinsglobal.com
• 0121-483-6198