Transition of Mobility: the Case of Budapest. Dávid

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1 Transition of Mobility: the Case of Budapest Dávid

2 1963

3

4 Key facts and figures about Budapest Capital city of Hungary (since 1873) 525 square kms 1,700,000 inhabitants - stagnating +800,000 in the metropolitan region Complex geography (Buda and Pest) and governance (23 independent local districts) River Danube: transport bottleneck, 7 bridges Motorized modal share of PT around 58% Including non-motorized modes:

5 Key facts and figures about Budapest Transport data

6 Main trends after 1990: decreasing share of public transport but demand still remain strong

7 Main PT trends after 1990: deteriorating services, lack of investment, no customer focus, ad hoc financing, soaring fares, corruption cases

8

9 Main trends after 1990: suburbanization, rise of car ownership, road congestion

10 Main trends after 1990: stronger NGOs advocating better PT and cycling

11 Why was BKK set up? 1. Integrated transport governance: multimodal transport planning, policy and implementation 2. Professional management of public transportation: supervision of inhouse PT operations and more focus on passenger satisfaction

12 Setting up a new transport authority: main benchmark was Transport for London

13 2010: setting up an integrated transport authority BKK became the new main integrator and transport competence centre

14 New governance model: tasks of BKK Transport strategy and development Organising public transport (Budapest & partially its metropolitan area) Routes, schedules Passenger information services Sales and marketing, ticketing Supervision of operations Road traffic: Road network operation and reconstruction management on the PT-network Traffic management on all local roads Supervision and licensing of taxi services Parking management (fees, rules and P+R operations) Freight transport access management Bike-sharing

15 Integrated transport governance Integrated transport strategy can be delivered only if mobility governance and policy is integrated Instead of demand-driven transport management policies should influence commuting choices through: allocation of public spaces and development funding traffic priorities fare policies (parking, PT) integrated services (bike-sharing, journey planning and information)

16 Integrated transport governance: renewal and reallocation of public spaces and roads in central Budapest fotó: Google

17 fotó: Google

18 fotó: origo

19 fotó: origo

20 fotó: Google

21 fotó: Google

22 fotó: Google

23 fotó: Funzine

24 fotó: origo

25 fotó: hvg.hu

26 Integrated transport governance: multimodal information systems

27

28 Integrated transport governance: traffic priority for public transport Grand Boulevard : cars: 3000 people per direction per hour trams: 9000 passengers per direction per hour Priority for trams instead of cars: 7% more capacity on the trams journey times down by 2 mins per direction

29 Integrated transport governance: cycling revolution, comprehensive network plan

30 Integrated transport governance: new bike-and-ride facilities and urban bike racks

31 Integrated transport governance: MOL Bubi new bike-sharing system bikes state-of-the-art: on-board computers to avoid full stations fares integrated with public transport solar panels on stations for flexibility

32 New governance in public transport: new authority to act as an engineer

33 Public Service Contract Structure from 2012

34 Financing model of transport in Budapest from 2012 P+R Fees

35 BKK acts as a customer on behalf of the City In-house post-socialist operator BKV facing double pressure: a strong customer on the state side and competition: I. New PSO contract between BKK and BKV with continuous financing, performance based penalties, bonus/malus quality incentives II. Competitive tendering of bus services on gross cost basis: 45% market share of new operators Cancelled departures ratio caused by technical breakdowns (buses, BKV operated):

36 Prompt action : 200+ low floor used buses

37 Competitive tendering since 2012: 550 new low-floor buses entered service

38 Results of bus fleet renewal programme Ratio of low floor buses in 2010 in CEE capitals: Budapest Praha Warsaw Vienna

39 New ways of operation: on-demand rail feeding minibus services in suburban areas

40 Rolling stock upgrade: new buses, new trains, new trams

41 Development in public transport services: tram revolution

42 New metro line M4 opened in 2014

43 Public consultation of bus network changes introduced by BKK - first successful online interactive consultation for M4

44 Sales, customer focus and experience in 2010

45 Sales, customer focus and experience in 2010

46 Sales, customer focus and experience in 2010

47 Passenger information and customer experience challenges...

48 BKK takes action: 300 new TVMs, selling passes too, accepting credit cards, 24/7 available

49 New customer service centers in major junctions (and at the airport), new design, integrated services (PT, bike-sharing, etc.), no standing in line

50 BKK s new system for 24/7 supervision of operators and services: new GPS-based real time traffic management system

51 Better information for better customer experience More sales channels = more revenue

52 New customer experience: more passengers, more satisfaction

53 Public transport fares were soaring in the 2000s: 10% price reduction to make public transport more attractive Lack of stable financing resulted in continuous price increases, sustainability and competitiveness were neglected In % price increase resulted in 2% revenue loss - passengers were avoiding the services or not paying for them 10% price reduction of most popular monthly passes from 2014 How many monthly passes would an average salary buy? (2012 data) Inflation and fare trends Inflation Fares *2012-es átlagbér, 2013-as aktuális árak Budapest Bratislava Warsaw Praha Bucharest Vienna

54 Focus on customers: 20% revenue growth in 4 years Sales and revenue policy : New methods for revenue protection New sales channels (TVMs, customer service centers, etc) Ticket sales on board Front-door only boarding policy introduced on 63% of bus network Fare discounts remained unchanged 10% price-cut on monthly passes Revenue growth of 20%

55 Next step: Automated Fare Collection Blank page = shortcut from obsolete to cutting edge, from paper-based to NFC New project started by BKK - idea taken from TfL Customer Experience Team in 2011 when they started the contactless initiative EBRD loan in the amount of EUR 54.5m Revenue increase expected: EUR 16.7m per annum (5%) Contract signed with Scheidt & Bachman in 2014 Ready for contactless payment (bank card, NFC, Apple Pay, etc.) - server based system Investment in the framework of the project: Complete IT background system and central system Ticket validating machines: 2,100 vehicles, 120 stations 9,000 card readers, 3 million cards 700 portable hand-held control devices 300 ticket vending machines (TVM) to be integrated

56 What didn t we achieve?

57 57111 Integration of all regional services and suburban rail services around Budapest: fare zones and ticketing connections, stops and stations passenger information

58 Airport rail connection

59

60

61 ...and to convince all stakeholders and local politics about the advantages of integrated transport strategy, projects, policies and governance

62 Thank you for your attention! Dávid Vitézy

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