Transport

1
Transport Society

• Administration, Planning, Funding

2
Todays Questions

• Who does transport and what are their tasks?
• By what means, i.e. funding sources, do they
  accomplish these tasks?

3
I. Transport Actors and Their Tasks
4
Who Does Transport?

• Government
• National Agencies
• Local Administrative Agencies
• Law Enforcement
• Private Firms
• Air, Rail, Bus Service Providers
• Taxis/Jitneys
• Private Road Builders/Operators

5
Government Agencies in the UK

• Department of Transport
• Aviation Authorities
• Rail Authorities
• Highways Agency
• Metropolitan Counties
• London
• Non-Metropolitan Counties Regions

6
UK Highways Agency

• Responsible for Determining
• Scale of Road Network
• Content Priorities for New Construction
• Methodologies for Appraisal of Roads
• Policies for Charging Road Users for Private
  Finance of Roads

7
UK Highways Agency

• Key Tasks
• Deliver Roads in to Time Cost
• Reduce Average Time to Deliver Roads
• Maintain Roads Cost Effectively
• Improve Information Supplied to Road Users
• Mechanisms
• Planning Policy Guidance to Local Authorities
• Transport Supplementary Grants
• Publish Results of Research
• Rural, Public Transport, and Innovation Grants

8
UK Rail Transport

• Nationalized in 1948
• Privatized starting in 1996
• Franchise Passenger Service
• Transfer Freight/Parcel Service to Private Sector
• Separation of Track-Operator (RailTrack) from
  Train-Operators (many)
• British Rails Roles
• Regulate fair application of agreements for track
  access and charging
• Office of Passenger Rail Franchising set service
  standards award monitor franchises
• Grant leases on rail stations
• Develop subsidy arrangements where socially
  necessary
• Re-Nationalization of Track Operations in 2001
• Network Rail, a not-for-profit company

9
UK Metropolitan Counties

• Metropolitan District Council
• Control of Land Development
• Granting Planning Permissions
• Build/Maintain Local Roads, Traffic Management,
  Parking
• Passenger Transport Authority
• Award Agreements to Provide Public Transport
• Administer Concessionary Fare Schemes (e.g. to
  Disabled Elderly)
• Ensure School Transport Services
• Identify Subsidize Socially Desirable Service
• License Taxis Private Hire Cars

10
UK Non-Metropolitan Counties

• Difference from Metropolitan Counties
• Public Transport is Administered Directly by
  Councils, Not by Passenger Transport Authorities

11
UK Land Use Planning with respect to Transport

• Strategic Planning
• London Metro Counties Unitary Plans
• Non-Metro Counties
• County Councils Structure Plans
• Local Governments Local Plans
• Local Planning and Land Use Policies Must
• Promote Development at Locations Highly
  Accessible Without a Car
• Locate Major Generators in Existing Centers with
  High Accessibility Without a Car
• Strengthen Existing Local Centers that Already
  Have Community/Shopping/Employment Opportunities
• Limit Parking Provision to Discourage Reliance on
  the Car

12
II. Transport Funding
13
UK Finance

• Trends and Conditions in the UK
• After Privatization, Reduced Direct Provision
• Funding from Treasury through National Budgetary
  Process
• Funding from the European Community for Links to
  Other Member States
• Rail Access Charges Paid by Train Operators
• Private Investment in Rail Infrastructure
• Block Grants to Local Governments
• Private Capital in Exchange for Planning
  Permission

14
USA Evolving Methodsof Raising Funds

• Report by Martin Wachs
• What funding methods are in decline, and why?
• What funding methods are on the rise, and why?
• What does Dr. Wachs suggest for the future of USA
  transport funding? Why?
• Do these recommendations have any relevance
  outside the USA?

15
USA Evolving Methodsof Raising Funds

• Development Fees
• Property Taxes
• Fuel Taxes
• Transit User Fees (Fares)
• Road User Fees (Tolls)
• Vehicle Registration Fees
• Sales Taxes
• Government Bonds, Paid Back by
• General Funds
• Tolls
• Sales Taxes

16
Fuel Taxes

• Fixed Amount per Volume of Fuel Purchased
• Primarily Federal Government
• Relevant Trends
• Inflation
• Fuel Economy
• Result
• Gas Tax Receipts Sharply Declined Over Last 30
  Years

17
Development Fees

• Developers of Land Required to Construct and Cede
  Streets to the Public
• Local Governments
• Relevant Trends
• Increased Competition Among Local Jurisdictions
• Result
• Local Governments Often Charge Less in Fees Than
  Services Cost

18
Property Taxes

• Percentage Tax on Value of Home
• Primarily Local Governments
• Relevant Trends
• Rapid Increases in Home Values Can Make Taxes
  Overly Burdensome
• Caps on Property Taxes are Common But Limit
  Ability of Receipts to Keep Up with Inflation
• Property Tax Receipts Have Declined

19
User Fees Road Tolls

• Fixed Fee for Use of Roadways
• Primarily State Government
• Relevant Trends
• Very Unpopular and Politically Difficult
• Some Very Old Toll Roads Persist
• Some Recent Increases in Acceptance

20
User Fees Transit Fares

• Fixed Fee for Use of Public Transit
• Local Transit Agencies
• Relevant Trends
• Raising Fares Runs Counter to Increasing Mode
  Share

21
Vehicle Registration Fees

• Annual Fee for Auto Registration May be Fixed,
  or Tied to Value of the Auto
• Primarily State Government, Sometimes Local
  Districts
• Relevant Trends
• Increases with Number Cars, so Tends to Increase
  with Income
• Some have been struck down in court as excessive

22
Sales Taxes

• Percentage Tax on All Sales Transactions
• State Local Governments
• Relevant Trends
• Diffuse Effect, so Less Unpopular
• Increasing in Use

23
Government Bonds

• Government Borrows by Issuing Bonds
• Primarily States
• Relevant Trends
• Must be Repaid by Tolls or Taxes
• Increasing Use by Politicians
• Unsustainable if Overused

24
Future Possibilities

• Fees Adjusted to Reflect Costs on Society
• Charge More to Heavy Trucks
• Electronic Toll Systems
• Tolls without Queues
• Vary with Congestion Level
• Vary with Road Segment

25
Wachss Recommendations

• States Assume Responsibility
• Plan for Widespread Electronic Tolling
• Develop Pricing Strategies for Efficient Use
• Develop Pricing Strategies According to Costs