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Section 4. Transit and Ground Passenger Transportation

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Section 4. Transit and Ground Passenger Transportation Transit and Ground Passenger 4Transportation 46 employment in new York city’s Transportation sector The transit and ground passenger transportation subsector makes cities run: transit agencies operate light and heavy rail (subways), buses, and transportation for special- ized populations; the private sector operates taxis, lim- ousines, and charter buses, and private shuttle services. Urban residents rely more heavily on transit and ground passenger services than do people residing in suburbs. nAICS definition of the Transit and Ground This is especially true in New York City, which operates Passenger Transportation the largest public transportation authority in the coun- subsector (nAICS 485) try and the only transit system in the world that oper- This subsector includes several 1 ates year-round, 24 hours a day, seven days a week. passenger transportation, such as urban transit systems; char- tered bus, school bus, and The subsector is more accurately described and scholarly literature. Section B relies interurban bus transportation; as two disparate sets of industry groups mainly on analyses of analyses of quanti- and taxis (including limousines with very different dynamics and needs. tative data available for the private sector and “black cars”). Within the subsector, there are scheduled On the one hand, the private sector serves only. In Section C, we review findings from industry groups (urban transit, almost no role in the United States in the analyses we were able to conduct on both interurban and rural bus trans- provision of transit services, with the excep- industry groups, representing the entire portation, and school and tion of paratransit (special van and bus ser- subsector. employee bus transportation) and nonscheduled industry vice intended for people with disabilities, groups (charter buses and taxis the elderly and the infirm), which is often A. Urban Transit Industry Group and limousines). Other transit contracted out. On the other hand, ground and ground passenger trans- portation includes paratransit passenger transportation is dominated by economic And indusTrY (transportation for the elderly, the private sector: charter buses, private DynAmics people with disabilities, and the shuttle services, and privately owned taxis, The urban transit industry group (NAICS infirm) and shuttle services. and limousines. 4851) is a critical underpinning of the urban NOTE See Appendix for a full In light of these differences, and the economy. Especially in New York City, no list of transportation subsec- tors and a brief explanation of associated differences in the extent to enterprise would function without it. Trip the NAICS. which data gathered for this report covers destinations (e.g., office or other work site, one or the other of the respective industry meetings with others, conferences, culture groups, we have separated our treatment and recreation) are always of value to the of the two industry groups in this section passenger, and so, the mode of transporta- of the report. Section A on the urban tran- tion to get to these destinations is also of sit industry group mainly relies on expert inherent value. In addition to direct employ- interviews and our review of relevant trade ment in the subsector, maintenance and Transit and Ground Passenger Transportation 47 infrastructure building also creates tens of tion cleaners, train announcers, and pension thousands of jobs in other sectors because fund managers. There are all kinds of func- of its tremendous resource and service tions and all kinds of jobs needed to meet needs. Transit infrastructure projects require the enormous demand. Public transit is a broad variety of goods (e.g., fuel, cement, about as diverse as any complex enterprise steel) and consulting services (e.g., planning can be. and management). The transit industry group is also dis- The most frequently cited benefits of tinctive in its high degree of unionization urban transit is that it eases traffic conges- — essentially, all line-level transit employ- tion; creates and sustains jobs; stimulates ees are union members as is some portion economic development; reduces energy of the ground passenger transportation consumption; increases real estate values; workforce. The largest unions in the subsec- improves the mobility of seniors and people tor are the Transit Workers Union (TWU), with disabilities; improves mobility during Amalgamated Transit Union (ATU), the emergencies; saves households money; and Bridge and Tunnel Officers Benevolent is safer than driving.2 Association (BTOBA), and the railroad work- ers unions (Teamsters). Nationally, there are about 370,000 pub- lic transportation employees working in over 6,400 transit agencies; fares collected The most distinctive characteristic of transit is its in 2006 amounted to over $11 billion dol- sole focus on meeting a huge daily public demand. lars.3 A 1999 study conducted by private research firm Cambridge Systematics esti- mated that “every dollar taxpayers invest in public transportation generates about $6 in economic returns.”4 Transit agencies receive about 40 percent The most distinctive characteristic of of their funding through passenger fares transit is its sole focus on meeting a huge and other agency sources (tariffs, purchased daily public demand. Every day, the public agreements, and subsidies from other agen- transit system must determine how many cies); the remaining funds come from finan- and which cars, buses, and railcars will be cial assistance or targeted taxation from needed, how many and which ones will local, state, and federal governments.5 Any be inspected, repaired, or maintained. The slowdown in the general economy — such transit system not only must ensure that it as the one being currently experienced has sufficient equipment capacity, it must throughout the nation at the time of this also schedule the equipment to meet con- writing — translates to lower tax receipts, sumer demand. In addition, support ser- so there is less money available for transit vices are needed to manage and operate services.6 the system such as station attendants, sta- 48 employment in new York city’s Transportation sector According to Professor Robert Paaswell, neW York city’s urbAn Director of the University Transportation TrAnsiT indusTrY GrouP Research Center at City College and for- New York City is the largest transit agency mer Chief Executive of the Chicago Transit in the nation with over 1.8 billion trips in Authority, there is underway in the sub- 2006, more than five times the number of sector a national movement to replace passenger trips than the next largest (Chi- mechanical parts and systems with com- cago), and more passengers than the next puters and electronic parts and systems. six largest transit agencies combined.7 A New vehicles use new and more comput- key stakeholder interviewed for this study erized technology with standard modules reported that the New York City region that can be popped in and out; it is more accounts for about one-third of the public cost effective to convert to the new sys- transit ridership in the country with approx- tems because of parts standardization than imately 8 million riders a day (5.5 million to attempt to repair the older mechani- of whom are subway riders). Ridership is cal parts. Moreover, transit agencies are on the upswing too: according to the New increasingly running out of options: at some York City Economic Development Corpora- point, suppliers simply will not make the old tion, 2007 ridership alone was 131 million, buses and rail cars anymore. an increase of 4.3 percent from the previ- Finally, and perhaps most salient to the ous year.8 immediate prospects for the subsector, is New York City’s transit activities are the effect of fuel prices. As fuel prices have entirely overseen by the Metropolitan risen to more than $4.00/gallon as of this Transportation Authority (MTA) with an writing, drivers are more likely to turn to operating budget of about $11 million dol- rapid transit systems in an effort to avoid lars a day. Separate units operate the sub- the high costs associated with refilling their ways, buses, and paratransit (New York City family- or employer-owned cars. Rider- Transit); railroad (Metro North and Long ship benefits can also be expected to be Island Railroad), and bridges and tunnels mitigated somewhat for transit agencies. (Triborough Bridge and Tunnel Authority). First, the public sector must foot the bill for Out of the approximately 69,000 employ- materials to be transported to them from ees working within the MTA, about 49,000 manufacturers and from site to site within are employed at New York City Transit the system. Second, some city buses and (NYCT) (Table 4.1). paratransit vans still operate on diesel fuel. New York City’s transit system con- For the private sector — namely shuttle, fronts several challenges and opportunities taxi, and limousine services — operating in the years ahead. Chief among them are costs are rising and these will need to be the three cited by Professor Paaswell and passed on the consumer. Valerie Bynoe-Kasden, Esq., Vice President, Human Resources at NYCT: infrastructure capacity, technology updates, and work- force recruitment. The first two issues are Transit and Ground Passenger Transportation 49 addressed in this section; workforce chal- While maintenance is important to the lenges are addressed in Jobs and wages operation of the transit system, there is a immediately following. real need for capacity expansion. Accord- In the 1970s, the subways were dirty and ing to Professor Paaswell, the city must unreliable, and many New Yorkers simply confront its transit system’s capacity limi- refused to use the system. Over the past tations if it is to continue its current tra- 15 years, to be sure, there have been tre- jectory of development and growth. mendous improvements to the system and Maintenance, improvement, and expansion — along with the general growth and devel- of the transit system are all essential — how opment of the city — these improvements well these tasks are accomplished will in have brought about tremendously increased large part determine New York City’s abil- ridership.
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