16304_LUAS 9/30/04 2:36 PM Page 1

Business 2000 EIGHTH edition

BENEFITS OF TRANSIT FACTORS INFLUENCING Light Rail has emerged in recent years as a very popular addition to public TRAFFIC GROWTH IN transportation systems world-wide.The main benefits of Light Rail are: 1991 1996 1999 2016 ◗ High capacity services: By operating on fixed rails, long Population 1.35m 1.41m 1.46m 1.75m - DUBLIN’S carriages can travel through existing city streets. ◗ Increasing no. 402,000 446,000 521,000 675,000 Excellent reliability: By using dedicated tram paths and providing of households priority at road junctions, a frequent service is possible. ◗ Increase in 452,000 549,000 602,000 878,000 LIGHT RAIL TRANSIT SYSTEM Passenger comfort: With spacious carriages and excellent employment suspension, offer a very smooth ride. ◗ Accessibility to people with physical disabilities: Because trams Growth in car ownership n/a 42% 79% 260% since 1991 (per household) operate at kerb level, boarding trams is easier for wheelchair users. introduction ◗ Environmentally friendly: Trams are powered by electricity, not directly producing exhaust fumes. “A PLATFORM FOR CHANGE” ◗ Safety: Light Rail systems are designed so trams can mingle safely Luas* is the new Light Rail Transit (LRT) or tram system for Dublin city. Light Rail differs from regular "A Platform for Change" with other traffic. train services because it is integrated with road traffic and often shares space with other vehicles.The illustrated the shift in demand challenge of the Luas scheme was to ensure that it could be built to the high standard demanded by the patterns for transport in New Light Rail systems have been implemented across Europe in main project stakeholder, the Government. Stakeholders are the people who are involved in or affected Dublin. A demand pattern is a Strasbourg, France; Stockholm, Sweden; and Manchester, England. As well by the operations of an enterprise. To this end, the Railway Procurement measure of customer demand as direct benefits, there are many indirect benefits of Light Rail. For Agency (RPA) was created in December 2001 with the duty of managing the Luas project. in terms of frequency and example, trams create an opportunity for environmental and economic volume over a period of time. revitalisation by creating links with previously hard-to-access areas.Trams This case study examines the role of the RPA in monitoring the different contracts For example, the number of also proved extremely popular with the public. After the implementation involved in the construction of Luas in the nation’s capital.The study will outline why rush-hour journeys in Dublin of light rail transport in Grenoble, France, public approval was 93%. there was a need for a Light Rail system to service the greater Dublin Area and between 1991 and 1997 show us how Luas will benefit the local economy and the communities it serves. LIGHT RAIL TRANSIT increased by 45%, from 172,000 to 250,000. The RAILWAY IN DUBLIN Dublin Transport Office also forecast that these journeys PROCUREMENT AGENCY A Light Rail system for Dublin was first proposed in the early 1990s by would increase by another the Dublin Transport Initiative. This initiative was created by the 95% by 2016, to 488,000. The RPA was established by the Transport (Railway Infrastructure) Act Government to plan for Dublin’s transport.This type of organisation, like 2001 as a standalone, semi-state organisation responsible for the the RPA, represents an example of the beneficial role government plays While this growth is a cause for concern, it is the manner in which the procurement of railway infrastructure systems. A semi-state organisation in business. In this instance, the Government took responsibility for demand for transport is being met that has caused such problems. The is owned by the State but has its own independent management planning a transportation Dublin Transport Office strategy provided clear evidence of an structure. Other examples of semi-state organisations include ESB, CIE, infrastructure; a task that over-reliance on private cars for transportation and the lack of and Bord na Mona. was unlikely to be addressed suitable alternatives in public transport.These factors have combined to by private enterprise. create a vicious circle of increasing traffic congestion. The RPA was responsible for all planning, management, and communications activities regarding Luas. These tasks were particularly complex because the The work of the Dublin Transport Initiative OPPORTUNITY COST RPA itself did not construct Luas. was transferred to the Dublin Transport OF TRAFFIC CONGESTION Office in 1995. In September 2000, the There are many obvious disadvantages of traffic congestion.These THE LUAS CONTRACT Dublin Transport Office produced a include increased air and noise pollution and more traffic Several years ago, the Government invited businesses from the private sector to tender strategy called "A Platform for accidents. However, the economic cost of congestion can be for the Luas construction project.A tender is an offer by a company to do certain work or to Change". A strategy is a unified, equally damaging. It has been estimated that €25m a year supply certain goods at a fixed rate.The tender that won the contract was submitted as a joint comprehensive, and integrated plan could be saved on road maintenance if traffic levels could venture by two large engineering companies, Ansaldo Spa of Italy and MVM Pty of Australia. A that covers all aspects of an be decreased by 1%.This is the opportunity cost of traffic joint venture occurs as a result of a cooperative agreement between independent enterprises to organisation's operations. The congestion: €25m which could be diverted into other undertake a project together. Dublin Transport Office strategy public services is being lost. An opportunity cost is a outlined a vision for an integrated measure of the amount of income forfeited because the Following the award of the contract, the RPA's goal was to ensure that the benefits of a Light Rail transport system in Dublin to be best choice from a group of alternatives has not been system would be successfully delivered for the commuters of Dublin. Luas* translates into English as “speed” completed between 2000 and 2016. selected.

Business 2000 LUAS - Dublin’s Light Rail Transit System www.business2000.ie EIGHTH edition 16304_LUAS 9/30/04 2:36 PM Page 2

DUBLIN TRANSPORT THE CONSTRUCTION The possible construction of a Metro system in Dublin is another STRATEGY OF LUAS step towards improving the city's public transport. Metro differs from Light Rail because it is physically separated from all other vehicles and can move at greater speeds and with more carriages. The RPA The Dublin Transport Office responded to The RPA had to ensure that Luas would form envisages this system being built as a Public Private Partnership these problems by producing a transport a successful part of the future Dublin (PPP). (A PPP is where the Government enters into agreement with strategy that combined aspects transportation network. One crucial private businesses to deliver a service to the public).This benefits the of demand management with challenge was how to build a large new state because construction and operating costs to the taxpayer are infrastructural improvements. Demand transport system on the streets of a city lower. management refers to actions that with severe traffic congestion.To do this can be taken to reduce growth effectively, the RPA decided to divide Following the successful management of the implementation of Luas, without affecting economic construction into two phases. the RPA can look forward to these challenges with great confidence. progress. The objective of demand management is to encourage a switch Phase One: Site Preparation to alternative modes of transport, and Diversion of Utilities such as public transport, cycling, or Because Luas was to be built along many Glossary ordinary city streets, services such as water, walking. Some suggested measures of its decisions on a wide range of people and understands the need to were: gas, electricity, and telephone lines ran directly beneath the proposed tram lines. As a result, behave as a good member of society. Communications Strategy: The means by which an before any work could commence on the tracks ◗ A limit on the number of city car parking MANAGING THE LUAS LIGHT RAIL PROJECT enterprise identifies its target audience, determines its spaces. themselves, all existing cables and pipes had to be re- communications objectives, and selects the appropriate ◗ routed. This was required to ensure that, in the event of The construction and communications activities carried out the by RPA The implementation of road charging schemes. were made possible by the use of effective planning, organisation, and media for its intended message. ◗ Encouraging companies to introduce flexi-time for staff, so future problems with underground utilities, it would not be necessary to dig beneath the Luas line. control systems. A successful plan normally displays the following that not all employees must travel to work at the same time each characteristics: morning. ◗ Phase Two: Infrastructure and Control Systems It has a set of agreed objectives. ◗ It is precise and not open to misinterpretation. Linked to demand management is the need for an adequate public Phase two involved laying tracks for Luas, constructing stations and ◗ TASKS & ACTIVITIES installing overhead electrical lines. It also involved implementing the It is flexible and can react to changes in operating circumstances. transportation infrastructure. If attractive transport alternatives do not exist, ◗ It is achievable. commuters will be unlikely to leave their cars at home. In response to this, technology required to control traffic on the Luas lines. Business the Dublin Transport Office proposed a fully integrated public transport The organisation of the work that resulted from the plans involved LUAS COMMUNICATIONS 1 a) Define the term "joint venture". network.The key components of the infrastructural improvement plan were: decisions on aspects such as manpower planning, team structures, and STRATEGY internal communications. Finally, for a project as large as Luas the b) Evaluate the use of joint ventures as a means of

◗ Ltd.Technologies Times Ltd. errors any for or omissions in this case study. The Irish Woodgrange or o either A greatly expanded network. implementation of adequate control systems proved an important step. expanding a business. ◗ The implementation and possible extension of Luas. During construction, the RPA maintained close contact with local 2 Contrast Light Rail with motorised transport (cars, ◗ A new metro system. authorities, An Garda Síochána, local businesses, and households.This was Hundreds of people have worked on Luas over its lifespan and millions of etc) under the following headings: to ensure that construction activity could be coordinated and cause euros have been spent. If there are no control and measurement systems COST OF THE DUBLIN TRANSPORT STRATEGY ◗ Safety minimal disruption. A communications strategy was also required to in place, who is to know if the plans are being adhered to? In the case of The total cost of the plan outlined by the Dublin Transport Office was keep everyone affected by Luas up-to-date with progress. Luas this is especially important because the RPA is answerable to the ◗ Safety Cost to the public estimated at 14.15bn between 2000 and 2016. Of this 1.3bn was set Government, who are in turn accountable to the people of Ireland. ◗ Safety Impact on the environment. aside for Luas, with 775m allocated for the construction of the two lines The RPA chose a variety of channels to distribute its message.This included Therefore, the RPA created a control system that allowed it to know if Economics currently in operation. The money for these two lines came from the newspaper advertisements and street signs warning of construction works. work was being carried out as agreed. In such cases, the RPA had the 1 a) Define the term "opportunity cost". Government's National Development Plan (NDP) and the European The RPA also used direct-mail to send newsletters with construction power to ensure that contracts with companies who did not fulfil their b) "The study above outlines projected growth in the Union's Regional Development Fund. updates directly to businesses and homes affected by development. commitments would not be renewed. population of Dublin up to 2016." LUAS AND SAFETY THE FUTURE FOR THE RPA Describe the economic implications for Government in Safety formed a vital part of the RPA planning for such increases in population. communications strategy.With the arrival of trams Now that Luas has been successfully launched in Dublin, the RPA is turning on the streets of Dublin, drivers, cyclists, and its attention to other projects including the development of two new light pedestrians had to be made aware of new hazards. rail projects with the extension of Line B () to Cherrywood The NDP is a blueprint for the long-term A hazard is anything that has the potential to cause and Line A () to the Point Depot. social and economic development of Ireland. harm.With regard to Luas this includes such things It plans for the improvement of Ireland's as slippery metal tracks and the potential for The RPA will also implement an Integrated Ticketing System and construct economic and social infrastructure, the bicycle wheels to become caught in rail grooves.The a new Metro system in Dublin. www.luas.ie development of enterprise, and to satisfy RPA therefore placed prominent advertisements in many local and national education and skill requirements. The European newspapers warning of the new hazards. Integrated ticketing is a system whereby a passenger can transfer from one Regional Development Fund is an initiative of the EU mode of transport to another without having to purchase a new ticket www.rpa.ie that provides funds to less developed states for These actions represented the determination of the RPA to pursue socially each time.This arrangement encourages passengers to move about more

infrastructural investment. responsible business activities.This is a business that considers the effects freely between buses, trams, and trains. While every effort has been made to ensure the accuracy of information contained in this case study, no liability shall attach t

Business 2000 www.business2000.ie EIGHth edition