THEPTA Thessaloniki bus network contracting and tendering Feasibility Study
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1 THEPTA Thessaloniki bus network contracting and tendering Feasibility Study Prof. Panos Papaioannou Dimitra Komnianou 10 September 2012
2 Problem Statement THEPTA, being the responsible Public Transport Authority, within the geographical area of the Regional Unity of Thessaloniki, must get prepared for undertaking in the near future the additional responsibility for Public Transport Services tendering and contract awarding, according to Reg. 1370/07 Contract awarding on a competitive basis will be required for the period after the expiry of the contract of the current PT operator. The expiry date is linked to the operation effective date of the METRO System which is currently under construction One of the main problems to be addressed is what are the necessary actions and steps THEPTA needs to deal with in order to be successful in fulfilling this new responsibility
3 Contribution of EPTA project to THEPTA goals By participating in EPTA project, THEPTA gains in the following areas: Takes advantage of the existing good practices at different PTA functions in other cases where similar problems have been faced Builds on the existing knowledge and on the European experience on similar topics Exploits the networking possibilities with several International bodies such as UITP, POLIS, EMTA, etc. Designs and implements within the project a tailored made feasibility study addressing the specific THEPTA problems
4 Aims of THEPTA Feasibility Study Main aim: to increase THEPTA current knowledge and develop personnel skills in tendering, contracting, and contract management procedures for PT services on a competitive basis Secondary aims: to establish criteria and grounds for fruitful cooperation with operators based on quality, effectiveness and efficiency to examine all related aspects (PT services contract models, creation of competitive environment in the area, etc.) by formulating the necessary FS scenarios to identify the primary and secondary factors (legal, institutional, technical, cultural, etc.) which affect the Public Transport Service tendering and contracting process
5 Objectives of Feasibility Study to compare Public Transport Service procurement alternatives in terms of sustainability factors and indicators (i.e. economic, social and environmental) for the Thessaloniki Area to set up a sound and applicable approach for carrying out similar feasibility studies to identify possible interactions with the other PTA functions to exploit knowledge from similar exercises in other cases
6 Main Questions [1/2] Public Service Tendering How many lots for bus services tendering? Route bundles instead? PT system planning Is bus route planning affected by number of lots? Is it wise to do the same exercise twice, once before and once after Metro Operations? Fleet size and vehicle types How the above choices/decisions affect fleet size and vehicle type or being affected by them? How strongly they affect performance and effectiveness indicators (KPI)
7 Main Questions [2/2] What will be the contract award criteria? What is the best way to incorporate quality factors into the contract? What are the necessary measures to secure a competitive environment and minimize residual risks emerging from various imperfections? What is the relationship between contract managing effort/cost and number of contracts to be managed and the implications to the OA organisational structure How all the above are taken into account in the Feasibility Study?
8 Feasibility Study Steps Finalise Feasibility Study objectives Finalise Feasibility Study tasks and time schedule Formulate alternative scenarios to be compared Identify relevant bibliography and cases from different sources (UITP, EMTA, International Conferences, Journal articles, European Programmes and projects, EPTA partners, etc.) Obtain additional material for the FS purposes Define methodology to be used Set criteria for comparative analysis Define indicators to be used in the FS Carry out FS
9 FS Breakdown into tasks [1/3] The FS presumes that the following are already available: Restructured PT system plan with Metro line in operation This plan is the result of an integrated approach Transfer between modes is kept to a minimum as a result of planning optimisasaion Network, fleet size and other economies have been already considered Operation cost for bus operator are known based on historical data. Cost models are available Most important KPI are known or they can be calculated Metro operation cost is known from studies
10 FS Breakdown into Tasks [2/3] Define main criteria for grouping / segregating bus routes Define number of lots and respective geographical areas/route bundles for tendering purposes (based on previously defined criteria) Define tendered main service data (hours of operation, effective vehkms, etc.) per lot and set indicator target values Set main award criteria for PS tendering process Obtain for each tendering alternative scenario financial offers per lot, by employing a Monte Carlo approach tailored to match similar offers from existing international experiencerecalculate main indicator values based on offers per lot Estimate, using international experience, additional organisational cost for Organising Authority (THEPTA) Calculate total cost (economic, social, environmental) for all involved (operators, public authorities, users, society, etc.) per contract and group them per scenario
11 FS Breakdown into Tasks [3/3] Compare costs and benefits per scenario and analyse final results (CBA) Define Sensitivity Analysis cases Perform Sensitivity analyses and repeat all necessary steps Make scenario comparisons with sensitivity analyses results Define Risk Analysis framework Perform Risk Analysis and obtain results Compare overall results Draw main conclusions from FS results
12 Tendering process cases to be exploited Transfer of knowledge and examples of good or bad practices will be made from different cities in Europe. Potential examples to take into account: DIJON (F) : TENDERED NETWORK MANAGEMENT CONTRACT FRANKFURT/M. (D): TENDERED ROUTE BUNDLE CONTRACTS HAARLEM (NL): FUNCTIONAL TENDERING OF NETWORK CONTRACT HALMSTAD (S): TENDERED NETWORK CONTRACT WITH ADDITIONAL INCENTIVES LONDON (GB): TENDERING OF GROSS-COST BUS ROUTE CONTRACTS LYON (F) : TENDERED NETWORK MANAGEMENT CONTRACT MANCHESTER (GB): TENDERING NON-COMMERCIAL ROUTES MUNICH SUBURBS (D): TENDERING OF ROUTE CONTRACTS OVIEDO (E): TENDERED NETWORK CONTRACT SANTIAGO DE COMPOSTELLA (E): TENDERED NETWORK CONTRACT SONDRIO/LOMBARDY (I): TENDERING OF ROUTE BUNDLES STOCKHOLM (S): TENDERED ROUTE BUNDLES GROSS-COST CONTRACTS SUNDSVALL (S): TENDERED NET-COST NETWORK CONTRACT TRIESTE (I): TENDERED NETWORK CONTRACT WARSAW (PL): TENDERING OF ROUTE CONTRACTS
13 Quality system indicators Indicative list of indicators for the purposes of the FS scenarios 1. Cost per user (fleet renewal, operational cost and vehicle maintenance) 2. Trip generation (New trips generated from the redesign of the routes) 3. Travel time (Travel time savings) 4. Revenue per user (ticket, time saving) 5. Mode shift from car to bus 6. Demand to capacity ratio 7. Decrease of Congestion 8. Decrease of Road accidents 9. Energy consumption per vehicle kilometre 10.Bus related air pollution per Vehicle Kilometres travelled
14 Questions?
15 THANK YOU FOR YOUR ATTENTION!!!!
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