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Urban Transport INDUSTRY COMMISSION Urban Transport Volume 1: Report REPORT NO. 37 15 FEBRUARY 1994 Australian Government Publishing Service Melbourne © Commonwealth of Australia 1994 ISBN 0 644 33300 6 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by an process without prior written permission from the Australia Government Publishing Service. Requests and enquiries concerning reproduction and rights should be addressed to the Manager, Commonwealth Information services, Australian Government Publishing Service, GPO BOX 84, Canberra ACT 2601. Acknowledgments The Commission is grateful for the cooperation and assistance of the many participants in this inquiry. The Commissioners also record their appreciation of the application and commitment of the staff who assisted in the preparation of this report. IV URBAN TRANSPORT INDUSTRY COMMISSION 15 February 1994 The Honourable George Gear MP Assistant Treasurer Parliament House CANBERRA ACT 2600 Dear Minister In accordance with Section 7 of the Industry Commission Act 1989, we have pleasure in submitting to you the report on Urban Transport in Australia. Yours sincerely Keith J Horton-Stephens Jeffrey Rae Derek Scrafton Presiding Commissioner Commissioner Associate Commissioner Level 28 Collins Tower 35 Collins Street, Melbourne 3000 Locked Bag 2, Collins East, Melbourne, VIC 3000 Telephone: 03 653 2100 Facsimile: 03 9653 2199 TABLE OF CONTENTS Volume 1 Abbreviations xiii Glossary xv Terms of reference xviii Overview 1 Main findings and recommendations 19 The inquiry 29 PART A THE URBAN TRANSPORT SYSTEM A1 The city and transport 35 A1.1 Introduction 35 A1.2 Transport and objectives for Australian cities 35 A1.3 How are cities shaped? 37 A1.4 Concerns with current urban forms 42 A1.5 Choices and decisions 47 A1.6 Concluding remarks 52 A2 Urban transport patterns 55 A2.1 Why do we travel? 55 A2.2 Where do we travel? 57 A2.3 How do we travel? 59 A2.4 Patterns of road use in cities 63 A2.5 Trends over time in travel 65 A2.6 Conclusion 68 A3 Indicators of performance 69 A3.1 Introduction 69 A3.2 Participants’ views 70 A3.3 Inadequate data 71 A3.4 The performance of urban public transport 72 A3.5 The performance of urban roads 87 A3.6 Conclusion 92 TABLE OF CONTENTS V A4 The role of government 95 A4.1 Introduction 95 A4.2 The current role of government in urban transport 95 A4.3 The rationale for government involvement 99 A4.4 Choosing the appropriate role for governments 106 A4.5 The role of different levels of government 112 A5 Reforming government transport agencies 121 A5.1 Introduction 121 A5.2 Current institutional arrangements 121 A5.3 The shortcomings of present institutional arrangements 125 A5.4 Improving the institutional arrangements: corporatisation 127 A5.5 Conclusion and recommendations 133 A6 Regulation and competition 135 A6.1 Introduction 135 A6.2 The role of regulation 136 A6.3 The effects of regulation 136 A6.4 The scope for competition 141 A6.5 Concerns about competition 146 A6.6 Competition in Australian public transport 151 A6.7 Conclusion 159 A7 Pricing and investment 161 A7.1 The role of urban transport pricing 161 A7.2 Urban road pricing 163 A7.3 Urban public transport pricing 167 A7.4 The impact of transport price changes 175 A7.5 Current arrangements for urban transport investment 178 A7.6 Problems with the current approach to investment 180 A7.7 Reform of investment processes 187 A7.8 Alternative arrangements for financing investment 187 A8 Social issues 191 A8.1 Introduction 191 A8.2 Assistance to the transport disadvantaged 192 A8.3 The effectiveness of subsidies 197 A8.4 Transport for people with disabilities 207 A8.5 Longer-term reform 214 A8.6 Conclusion 215 VI URBAN TRANSPORT A9 The use of roads 217 A9.1 Introduction 217 A9.2 Congestion 218 A9.3 Better use of roads 221 A9.4 Conclusion 233 A10 The environment, accidents and roads 237 A10.1 Introduction 237 A10.2 The nature of the environmental problem 237 A10.3 Costs of pollution 243 A10.4 Developing policy responses to pollution 246 A10.5 Consideration of policy measures 248 A10.6 Technological change 259 A10.7 Road accidents 260 A10.8 Conclusion 266 A11 Reform: an integrated approach 267 A11.1 The Reform Package 267 A11.2 An Implementation Program 269 A11.3 Transport and cities: the package applied 275 A11.4 The impact of the reform package 286 A11.5 Locking in change 288 PART B COMPONENTS OF THE SYSTEM B1 Urban rail 293 B 1.1 The role of urban rail in Australian cities 293 B 1.2 Institutional arrangements 295 B 1.3 Assessment of performance 296 B 1.4 Options for improving performance 306 B2 Trams and light rail 321 B2.1 Characteristics of trams and light rail 321 B2.2 The current role of trams and light rail 323 B2.3 Assessment of performance of existing systems 325 B2.4 Options for improving performance 329 B2.5 Proposals for new light rail lines 331 TABLE OF CONTENTS VII B3 Buses 339 B3.1 The role of buses 339 B3.2 Regulation and provision of Australian urban buses 342 B3.3 Performance of public and private bus operators in Australia 344 B3.4 Issues in reform 354 B3.5 The Commission’s reform options 370 B3.6 Implementing reform 373 B3.7 Conclusion 380 B4 Taxis and hirecars 381 B4.1 The role of taxis in urban transport 381 B4.2 Current institutional arrangements 382 B4.3 Rationale for regulation 386 B4.4 The effects of taxi regulation 390 B4.5 The benefits of opening up the taxi industry 395 B4.6 Issues in reform 401 B4.7 The Commission’s reform proposals 404 B4.8 Conclusion 406 BS Community transport 409 B5.1 The role of community transport 409 B5.2 Impediments to community transport 414 B5.3 Recommendations 421 B6 Cycling 423 B6.1 The role of cycling 423 B6.2 The benefits and costs of cycling 425 B6.3 Expanding the role of cycling 429 B6.4 Conclusion 433 References 435 VIII URBAN TRANSPORT FIGURES, TABLES AND BOXES IN VOLUME 1 Figures Figure AI. 1 Employment by sector 38 Figure A2.1 Reason for travel in Brisbane, 1976 and 1986 56 Figure A2.2 Journeys to work in Melbourne - 1985 58 Figure A2.3 Getting to work - the car or public transport 59 Figure A2.4 Travel patterns by modal share, 1985 60 Fiaure A2.5 Housing location and the journey to work, 1991 62 Figure A2.6 The cost of urban travel 63 Flaure A2.7 Urban road freight task - 1971 to 1991 65 Figure A2.8 Urban travel patterns, 1971-1991 66 Figure A2.9 Trends in motor vehicle ownership, 1961-1988 67 Figure A2.10 Car ownership in South Australia, 1911-1991 67 Figure A3.1 Farebox recovery of operating costs, government public transport authorities 73 Figure A3.2 Passenger boardings per employee, government urban public transport authorities 78 Figure A3.3 On time running for urban rail 85 Figure A7.1 Real fare index 170 Figure A8.1a Weekly expenditure on rail fares 197 Figure A8.1b Percentage of weekly income spent on rail fares 197 Figure A8.2a Weekly expenditure on bus and tram fares 198 Figure A8.2b Percentage of weekly income spent on bus and tram fares 198 Figure A8.3a Weekly expenditure on private motor cars 205 Figure A8.3b Percentage of weekly income spent on private motor cars 205 Figure A 10.1 Breaches of nitrogen dioxide standard in Sydney 241 Figure A10.2 Breaches of ozone standard in Sydney 241 Figure A10.3 Breaches of ozone standard in Melbourne 241 Figure AI 0.4 Breaches of ozone standard in Perth 241 Figure A10.5 Cost of road accidents reported to the police, 1991 263 Figure B1.1 Selected productivity measures for urban rail 300 Figure B4.1 Proportion of income spent on taxi fares 394 Figure B4.2 Taxi user income profile - Adelaide 1988 394 Figure B4.3 Taxi fares around Australia 396 Figure B4.4 Taxi licence values in Adelaide - 1974 to 1993 404 Tables Table Al. 1 Summary of transport and land use in 32 cities, 1980 41 Table A2.1 Proportion of all travel by trip purpose, Melbourne 1992 56 TABLE OF CONTENTS IX Table A2.2 Estimated urban road travel 1991 64 Table A3.1 Urban public transport deficits 75 Table A3.2 Average urban public transport deficits per household 76 Table A3.3 Average urban public transport deficits per passenger 77 Table A3.4 Median travel time to work, 1971 and 1991 86 Table A3.5 Urban road expenditure 87 Table A3.6 Selected government levies on motorists, allocated to urban travel 88 Table A5.1 Institutional arrangements applying to urban public transport GTEs 122 Table A7.1 Public transport fare structures in Australian cities 169 Table A7.2 Marginal operating costs for peak and off-peak services, 173 Table A8.1 Transport disadvantaged groups 193 Table A8.2 Commuters in five income groups travelling to Melbourne’s central zone by various transport modes 198 Table A9.1 Commercial vehicles on Sydney’s main roads 220 Table A9.2 Melbourne’s daily congestion costs 221 Table A9.3 State and Territory Government fuel franchise fees 226 Table A9.4 Tolls on Australian roads and bridges 228 Table A9.5 Current and planned electronic road pricing schemes 229 Table A9.6 Commuters driving into Melbourne’s central zone, by zone of origin 232 Table A 10.1 Relative contribution to atmospheric pollution in major Australian cities by source 238 Table A10.2 Carbon dioxide and carbon monoxide emissions by mode 240 Table A10.3 Costs of urban pollution and noise (1989-90) 245 Table A10.4 Capital, operating and external costs of transport modes in Australian capital cities 246 Table A10.5 Urban road accidents, 1988 261 Table A10.6 Fatality rates for different modes of travel, Australia, 1988 261 Table A10.7 Summary of metropolitan road accident costs, Australia, 1988 263 Table A10.8 Accident costs in capital cities in 1991 264 Table B1.
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