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The Review

steergroup.com Movement Matters A BURST OF FRESH THINKING

To attend any of our Movement Matters events register at: steergroup.com/events 2 Movement Matters is a series of inspirational thought leadership events exploring new ideas about people, places and economies. Drawing on experience from leaders around the globe, these sessions provide a burst of fresh thinking and a great opportunity for industry networking. Read more about our international program of events in the U.S., Canada and U.K.

BEYOND ALTERNATIVE CHANGING DELIVERY MOBILITY MODELS BEHAVIOR Toronto, Canada New , U.S. , U.S. Spring 2019 Spring 2019 Summer 2019

With soaring housing prices and a rise Industry experts will discuss alternative In Los Angeles, where funding is being in urban population, how can city and models for financing and delivering poured into transportation infrastructure, regional leaders plan for a livable, infrastructure projects. The panel is the moto ‘build it and they will come’ equitable and mobile future? Transport will consider private sector delivery, enough? Opportunities to take advantage investment can act as a catalyst to public involvement, and public-private of best practices such as personalized economic development and the creation partnerships (P3s). The discussion will travel planning (PTP), and innovative of new housing and job centers, however, include strategies on how to best manage transportation demand management it can also require significant funding risks and impacts of change, increase (TDM) techniques are being explored, and timelines for delivery. When planning confidence from design to operations, and but more can be done. New technologies for transport investment, agencies and ensure optimal return on investment. and mobility options such as scooters, regions need to carefully understand the transportation network companies (TNCs), wider case for investment from plan to and ebikes are constantly impacting the platform to ensure projects are developed way we travel. and implemented in a mindful way that How can we harness new technologies, catalyzes regional development. RESEARCH & transportation investment and use This panel will explore the range of views behavioral science to fix the mobility on how transport can be a positive enabler problems of the Los Angeles region? to wider economic benefit, how to measure INNOVATION Join a diverse group of panelists as and justify investment through economic they discuss mobility trends and how to analyses and business cases, and how a capture the greatest return on the region’s transit-centered integrated framework SHOWCASE investment dollars. can enhance city planning. The panel will represent a diverse array of regions, cities & Leeds, U.K. and transportation systems, each with their Spring 2019 unique challenges and varying approaches to addressing the wider case for transport Our decade-long Research & Innovation investment. (R&I) program provides Steer consultants with funds, dedicated time and resources to develop new products and services, generating new ideas and innovation. The result is a growing portfolio of new analytical insights and products. In this year’s R&I project showcase, we will demonstrate just some of what has been achieved. Six rapid presentations will show recent R&I work, including ‘The implications of a cashless society’ and ‘The future of Urban Mobility’. Join us to find out about the latest Steer explorations and help shape our future research program.

3 Welcome

Welcome to the latest edition of The Review. This New faces January we celebrated the 10-year anniversary of our James Daisa first permanent U.S. office. Since then we have grown Associate Director our operations significantly, with more than 80 staff James joins as Practice Leader across six North American offices. Over this period, we for our Los Angeles office. He is a transportation planner have substantially expanded our service offerings and and traffic engineer with over 30 years of experience. James client base. brings expertise in complete streets design and has been at the forefront of innovative Our continued growth in North America has coincided complete street policies and design manuals. He also has with changes in the transportation landscape. These expertise in transit oriented development (TOD), transit changes require new ideas and coordinated, holistic station area planning and efforts to create a sustainable system that will center design, parking studies, environmental impact reports enhance our communities, protect our environment, and (EIRs), downtown revitalization increase efficient and effective use of infrastructure. and urban infill development.

Iain Conway In this issue we discuss some of the recent trends, Principal Consultant their potential impacts and innovative ways to Iain joins our Los Angeles office as a transportation address them. Highlights include new tools to perform planner and economist with integrated modeling for public transportation agencies extensive knowledge in modeling, economic appraisal and measure the value of public spaces, research on and development planning. He has delivered modeling changes in transit patronage, the future of transit and economic appraisal for numerous highway, walk and investment in Canada, and transportation pricing bike, BRT, LRT and high-speed tactics and policies. rail projects.

David Laurens Vallego We also announce a new series of Steer organized Principal Consultant Movement Matters events, thought leadership seminars David joins our team in Los on various topics. I would personally like to invite Angeles, transferring from our Bogota office. He brings you all to these seminars, and with your active 10 years of experience in multimodal mobility planning, participation, we are sure to have engaging and transportation infrastructure, interesting discussions. transit systems structuring projects, territorial planning studies, design and optimization of major developments and the estimation of transportation demand. Masroor Hasan Eli Scheker Head of U.S. Advisory Principal Consultant

Eli joins our New York office, bringing extensive experience applying statistical techniques to the evaluation of investment decisions and developing customized analyses for project financing purposes. He brings a unique background in public A Steer publication policy, infrastructure advisory Published by Steer Davies & Gleave, Inc. (U.S.) and and investment management. Steer Davies Gleave North America Inc (Canada) doing business as Steer. Email: [email protected] Website: steergroup.com

4 Company updates

The Steer R&I Program continues At Steer, we actively invest in developing new ideas and ways of working through Carmen Correa Lafuente our Research and Innovation (R&I) Associate Program. We encourage our staff to Carmen re-joins Steer as part think creatively about their work and of the California High Speed how we can help our clients maximize Rail (HSR) project team in opportunities. Recent significant Sacramento. She will utilize her project management skills and successes for our R&I Program include: financial experience to help widely reported research about the support the advancement of effect of autonomous vehicles (AVs) on the program. Carmen originally urban design, software for recording the joined Steer's Puerto Rico office in 1998, as the first local hire. movement of pedestrians through spaces There she led the office and such as stations, and research on the managed a varied portfolio of value of train numbers on tickets and transportation projects. timetables. Our R&I Club meets every two weeks, Pietro Bucci allowing anyone to bring ideas, problems Principal Consultant Sharon Daly becomes COO and solutions for debate. To mark our We are delighted to announce the 100th R&I Club meeting we produced a Pietro joins our aviation team, appointment of Sharon Daly as Chief booklet describing 32 of our favorite R&I bringing a background in Operating Officer (COO). Sharon has transportation economics and projects carried out since the Club began. research. He has worked across worked at Steer for 18 years, starting in You can download your copy here: various aviation projects on sell, a junior role and working her way up to steergroup.com/about/research- buy-side and lenders' advisor in becoming an Associate and then Division innovation. Europe and emerging markets. Head for U.K. Planning. In 2016, she was Pietro has also worked on traffic One of the ways we encourage forecasts, commercial revenues promoted to U.K. Managing Director and innovative thinking is by holding and operating expenditures, and now she looks forward to her new role as Hackdays, where teams use their skills the development of benchmarks COO. After six years at the Department for a variety of projects. and knowledge to find innovative for Transport in South Australia, Sharon solutions to industry problems. In moved to the U.K. to join Steer. Her career November of 2018, we held our third Senior Consultants has spanned a range of high-profile Hackday event. Five teams worked secondment positions, including roles at intensively on pre-selected topics: the Ali Goddard transfers to our the Strategic Rail Authority, , office from the U.K.; Adrian Leung joins benefits (or otherwise) of free public our aviation team; Dapo Olajide joins our , West of England transit, the effects of a cashless society Toronto office; Alex Depompolo joins our Combined Authority, on transportation, the impact of extreme Washington, D.C. office. County Council, and London Underground. weather on transportation, how changes As U.K. Managing Director Sharon has had to demographics and technology will an opportunity to set a vision for our U.K. Consultants and Assistant Consultants affect transportation demand, and how business. As COO, Sharon will ensure our Steer can attract a diverse workforce. Isabel Viegas de , Charles Jeabart operational aspects support our success. At the end of the day each team gave and Caitlin Delaney join our office; a presentation about their findings to Nikita Benson joins our New York office; and Movement Matters kicks off strong in 2019 Mary McGuirk joins our Los Angeles office. a panel of judges, who had the difficult We are delighted to announce the task of choosing a winner. The team relaunch of our Movement Matters looking at the effects of a cashless thought-leadership event series. With society were the Hackday winners, but all a new refreshed look and feel, the first five teams delivered excellent work. event took place in early February 2019 in central London, featuring a panel of excellent speakers including the former U.K. Secretary of State for Transport and Chair of the National Infrastructure Commission, Rt Hon. the Lord Adonis. The series will hit North America in spring with a panel in Toronto examining transportation Looking to move? investment as an economic catalyst, If you are considering your future and are looking for somewhere to make a real followed by events in New York and Los difference, Steer has much to offer. Our firm Angeles. For more information and to continues to grow in North America and register to attend visit: throughout the world. To find out about steergroup.com/events. current opportunities, visit our website: steergroup.com/careers.

5 To support our clients in this challenging environment, Steer has developed a suite of integrated modeling tools which bridges Integrated modeling and these competing needs. The tools allow for relatively short turnaround times, while also following a rigorous scenario planning policy implications approach that can address changes in services, user behavior, competing modes, By Stefan Reul network conditions or financial constraints. This suite of tools incorporates streamlined interfaces between each modeling Public transportation agencies operate in an everchanging component, with a focus on performing environment that requires reactive planning processes in high-level analysis of scenarios. The the short-term which align with long-term investment and modeling tools provide sufficient detail in its outputs to allow for a well-informed infrastructure strategies. comparison of scenario implications without requiring extensive level of detail and resources of other existing planning and evaluation tools. Our modeling suite consists of four major components:

• Service planning: A high-level service planning tool (ATTUne) that facilitates efficient testing of changes to rail and

6

News in brief

Knowledge-sharing across Steer Steer prides itself on leading industry innovation and providing the best people for each project. We draw upon our international staff transit schedules, including resolution analysis if major infrastructure resources to bolster local staff, of conflicts and an assessment of investments are needed to facilitate the combining on-the-ground knowledge equipment needs to run the schedules. service plan. with a global perspective of best This tool provides a range of insightful • Economic impact analysis: A suite of practices. analytical outputs, including stringlines, tools that analyze the economic impact To ensure that our offices are kept platform occupancy charts and generated by investment in the transit or mutually informed about company conflict summaries. We have developed rail system and the subsequent increased and industry developments, we interfaces that allow a streamlined spending to operate the system. This actively engage staff at all levels import of General Transit Feed analysis can be based on input-output in bi-monthly knowledge sharing Specification (GTFS) schedule data, as modeling, the capture of wider economic seminars. Through these seminars, well as outputs that feed directly into the benefits (WEBs), or a combination of staff are invited to share information ridership, land-use, and cost modeling both. More and more of our clients value about their projects, industry trends, processes, thereby ensuring detailed this evaluation as a crucial component legislative changes and research schedule adjustments are directly in making the case for investment in outcomes. For example, recent topics reflected throughout the analysis. transit and rail systems, especially where have included trends in AVs, changes • Ridership and land-use modeling: significant public funds are required. In to land use planning regulations An urban/regional dynamic model combination with the land-use impacts and their impact on transportation, (UDM/RDM) based on the principles projected by the UDM/RDM, economic professional ethics best practices, of system dynamics that simulates impact analysis is a highly effective way transportation demand management the dynamic interaction between of demonstrating the full implications of ordinances in local government, and transportation demand, land-use transit and rail investment, not only for the results of our latest economic and socio-demographic indicators, the passengers, but also for the entire forecasting research. such as population and employment. region. The knowledge sharing seminars Unlike traditional demand models, or are done both at a macro and even activity-based models, the UDM/ We have successfully applied this micro level, with programs running RDM has the ability to allow for non- suite of tools in numerous projects parallel for all of North American constant population, employment and across the globe and helped our clients and specific teams. This allows staff land-use in travel analysis zones and analyze a wide range of scenarios from to share best practices and research, is therefore able to assess the impact minimum approaches to visionary and while also focusing on local issues these items have on the transportation transformative projects. We believe in and discipline-specific skills and network. The model interfaces directly decision-making processes underpinned by knowledge. with the service planning analysis and rigorous analysis and facts: our integrated The knowledge share seminars reflects the resultant transportation modeling suite provides clients with this foster collaboration throughout the network impedances accordingly. The rigorous base, while also managing the company and help staff continue to main outputs are projected changes complex balance of short and long-term enhance their skills and knowledge. in ridership and revenue, and resultant planning pressures. They help foster creative solutions impacts on land-use and socio- Stay tuned for more example of our tools and best practices across all our demographic indicators. The data in action in the future. projects and lead cutting-edge interface provides an easy interaction trends and solutions. with cost and financial modeling, economic impact analysis, and also GIS systems to allow for further downstream analyses and refined mapping of the model projections. • Operation and maintenance (O&M) cost modeling: A cost model that allows for an evaluation of changes to O&M costs, as well as operating subsidies. The cost model incorporates outputs from the ATTUne service planning, as well as the UDM/RDM demand model to provide a relatively quick evaluation of the cost implications of different service plan changes. The model is detailed enough to capture various O&M cost components, but at the same time is also broad enough to allow for an aggregate To find out more, contact: stefan.reul analysis of cost implications. @steergroup.com Steer also incorporated an add-on tool that allows for a financial feasibility

7 Livability and the value of public spaces

By Lucile Kellis

What makes a public space more attractive more livable by encouraging street life, expert panels, and contingent valuation than another? Can we measure the economic increasing safety and reducing vehicular techniques to quantify streetscape value of streetscape improvements to help traffic. improvements. These quantitative direct public funding toward the most Public spaces play a vital role in the contingent valuation techniques include promising projects? Which street features social and economic life of cities, and Stated-Preference and Best-Worse Scaling will deepen the social fabric of a city? well-designed city plazas and streets scenarios proposed to obtain monetized provide clear evidence of the importance valuations of various improvements. Those questions are at the center of many of public space in creating safe, livable It can be challenging to devise American cities today. Scarce resources communities. They deepen the social appropriate payment mechanisms, the coupled with growing city centers make fabric, enhance street life and contribute value options survey respondents can it all the more challenging to prioritize to social cohesion. A variety of street select for a specific amenity. We have revitalization projects. There is a need and plaza improvement projects can developed methods to overcome these to understand the value of the various be proposed to achieve these goals; challenges to derive a valuation for the benefits from street improvements to projects ranging from short-term plaza improvements. The Steer methodology help justify funding. However, it can be improvements using temporary materials is the first to quantify livability with difficult to quantify the value of public to actual street reconstructions which are innovative payment mechanisms designed realm improvements. Cost-Benefit Analysis more expensive and require larger amount to assess the value that residents place methods are used around the world to of funding. on public space amenities for Cost-Benefit prioritize projects, but they require access Understanding the value of public realm Analysis and project appraisal purposes. to quantifiable measures of benefits. improvements can both help secure and The livability valuation methodology What is the added benefit of a bench to a justify funding. Proper valuation of these Steer has developed can help quantify city plaza? Would adding tables be more amenities considers not only costs and public space amenities and move towards effective than adding more green spaces? benefits of construction and materials, but a standardized system to understand Those are difficult decisions that have no also the greater societal value. improvements equitably. straightforward answers and require an Steer believes that understanding in-depth analysis of the inner dynamics of residents’ valuation of urban spaces and each city. streetscape features is instrumental in Today’s trend is a return to urban living, measuring social benefits for project a reversal from the rapid suburbanization appraisal and prioritization. Collecting and sprawling communities of the 1950s. behavioral data of residents is needed To find out more, contact: City centers are (re)becoming places to understand the value placed on lucile.kellis where one can live, play and work. As a by- public space features. We use a livability @steergroup.com product, city officials around the country valuation methodology that combines are working to render those city centers focus groups, urban design and behavioral

8 How Vancouver and other cities learn to improve transportation decision-making

By Devon Farmer

In 2015, Vancouver’s City Council approved a plan for removing the aging Georgia and Dunsmuir (G&D) viaducts and replacing 2.6 kilometres of elevated highway with a surface boulevard, parks, public space, and housing. This was a controversial policy decision, evident by a split council vote and some vocal community opposition.

Arguments for removing the viaducts included that they are unnecessary, would require extensive maintenance to make them seismically fit, take up too much land, and act as a physical and visual ’barrier’ that breaks up the urban continuity of Main Street, isolating Chinatown from the successful redevelopment of False Creek. Arguments for keeping the viaducts included that they are an important part of the road network, they may increase traffic on other local roads, and that their removal would result in a small increase in average travel times by automobile. Arguments were also raised to keep the viaducts, but to convert them into a Seoul’s Cheonggye stream restoration, photo by Kimmo Räisänen via flickr.com/photos/kimmomurmu/7090802091. New York ‘High-Line’-style elevated park. Ultimately, City staff and consultants hired viaduct was first seriously proposed by a can be directly copied or replicated by the City recommended near-complete City Councillor. That Councillor justified from another location, as with the G&D removal of the viaducts. The removal the idea by referring to the San Francisco viaducts example, a synthesis of ideas project is anticipated to begin within the Embarcadero Freeway removal and the and inspiration from other locations can next few years. celebrated outcomes of that project. be used to first justify the idea as a good He became the publicly acknowledged one, and later be used to build a custom- What happened in Vancouver champion of the project and was noted tailored plan. There is ample evidence to show that for consistently advocating for the project Urban viewpoints toward adapting or policy transfer (that is, learning from over the years after he initially tabled a removing modernist mobility infrastructure the examples of other cities) played an motion for City staff to study the proposal (like elevated highways) are changing – important role in the planning process in 20091. cities and their inhabitants are learning that eventually led to the decision to that it is a worthwhile endeavor to advance remove the G&D viaducts. Perhaps even Policy transfer can help equity and justice and to reclaim otherwise more importantly, policy transfer helped to The G&D viaducts example tells us that underused urban space. However, in many justify the idea of not following traditional cities do not need to ‘reinvent the wheel’ car-centric North American cities, these North American automobile-centric every time a challenge or opportunity ideas still tend to be controversial, even in practices and renewing the G&D viaducts is encountered when there are many a city generally thought to be progressive for another 30 years. interesting and successful examples like Vancouver. For advancing these For this project, learning from the of completed projects that highlight controversial ideas, policy transfer can be examples of other cities was done by possible outcomes. If a city is facing a a powerful and effective tool. many different policymakers (including new challenge, chances are good that a consultants, City staff, and City similar challenge has been encountered Councillors) throughout all stages of the somewhere else from which lessons could planning process. Frequently mentioned be learned. examples included San Francisco, with As consultants, we continually work with the Embarcadero Freeway removal; cities around the globe and are exposed to To find out more, contact: Seoul, with the removal of the Cheonggye hundreds of different projects and policy devon.farmer Expressway; and Toronto, generally used initiatives dealing with all aspects of city- @steergroup.com as a negative example, for its failure to and transportation. Because of our remove the Gardiner Expressway when experience, advancing controversial ideas they had the opportunity. Policy transfer is one area where consultants’ knowledge was most apparent near the beginning [1] of and our professional networks within For more information about the G&D viaduct removal of the policymaking process; during this project and the policy transfer that took place during the other cities can be critically important. critical time, the idea to remove the G&D policymaking process, refer to Farmer and Perl (2018) in While it is unlikely that a policy or project Urban Research & Practice at bit.ly/2ss4Vyx.

9 While the U.S. transit industry has been experiencing a ridership decline, Steer researched 10 years of data from the National Longer passenger trips Transit Database (NTD) to find that current transit riders are typically taking longer trips. This change presents transit systems despite declining passenger with an opportunity to redefine their services to better meet their market strengths. We analyzed the unlinked passenger trip counts (passengers) and passenger mile data from By Darrell Smith the National Transit Database for report years 2008 through 2017. While the Federal Transit Administration (FTA) has reviewed trends over a five-year period, we wanted While the U.S. transit industry has been experiencing a to capture the period before the oncoming of new disruptive transportation services ridership decline, Steer researched 10 years of data from the marked by the start of Uber in 2009. We National Transit Database (NTD) to find that current transit limited our analysis to the 368 transit agencies and their respective modes that riders are typically taking longer trips. This change presents reported passenger and passenger mile transit systems with an opportunity to redefine their services data for each of the 10 years within our study period. As shown in figure 1, during to better meet their market strengths. this period, same-agency ridership changed from 9.698 billion passengers in 2008 to 9.131 passengers in 2017, a decrease of 5.85%. While ridership declined to 9.366

Figure 1: U.S. transit ridership by APTA agency size

12

10

8

6

4

2 Passengers in billions Passengers

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 NTD report year Large Transit Systems Mid-Size Transit Systems Small Transit Systems

10 Figure 2: U.S. transit passenger miles We organized this data by APTA’s transit , which have the longest reported by APTA agency size agency size categories in terms of annual trip lengths, experienced a 9.1% increase in 60 passengers: 4 million or less defined as average passenger trip length from 35.04 small, 4 million-20 million defined as mid, miles to 38.23 miles. , with the 50 and 20 million or more defined as large. second longest reported average passenger 40 While passenger trips did not lengthen trip lengths, experienced a 5.7% increase, linearly each year across the three APTA from 23.42 miles in 2008 to 24.76 miles in 30 agency size groupings, the overall trend of 2017. passenger trip lengths also 20 longer trips is clear. It is also interesting to increased, by 4.6% from 4.79 to 5.01 miles note that the small transit agencies have during the 10-year period. Bus systems had 10 the longest average trip lengths, followed the shortest average passenger trip lengths,

Passengers miles in billions Passengers 0 by mid and large agencies, respectively. but did lengthen 2.47% from 3.63 miles in 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Small agencies average trip length was 6.18 2008 to 3.72 miles in 2017. Heavy rail is the NTD report year miles in 2008 and 6.22 miles in 2017, having only mode where trip lengths shortened over Large Transit Systems Mid-Size Transit Systems Small Transit Systems reached a high of 6.4 miles in 2016. Large the period, by 2.97% from 4.75 miles to 4.61 transit agencies average passenger trip miles between 2008 and 2017. Also note that billion passengers in 2010, it increased lengths ranged from 5.07 miles in 2008 to a heavy rail had the smallest ridership decline again to a high of 9.769 billion in 2014 high of 5.31 miles in 2017. Mid-size agencies of the modes analyzed, declining just 0.9% before falling to 2017’s low. ranged from 5.43 miles in 2008 to 5.79 between 2008 and 2017. Figure 2 illustrates that the impact on the miles in 2017, with the shortest of 5.39 miles While the specific changes experienced volume of passenger travel, as measured in reported in 2010, and the longest of 5.82 by each individual transit agency are likely terms of passenger miles, did not decline miles reported in 2016. to be unique among themselves, the overall at the same rate. Same-agency passenger We also reviewed this same data by trend of longer average passenger trips miles changed from 49.874 billion in 2008 transit agency mode. Here we focus on only does coincide with the decline in ridership to 49.186 billion in 2017, a decrease of only the modes that exist on at least 15 of the and the arrival of disruptive transportation 1.38%. However, the 2017 passenger miles same-agency systems for the 2008-2017 services such as ride-hailing and bike- were not the low point during this 10-year period as illustrated in figures 4 and 5. sharing ushered in with Uber’s launch in period: in 2010 the same-agency passenger 2009. While further research is needed to miles reached a low of 48.563 billion. As is Figure 3: U.S. transit average passenger trip determine if these two changes are more seen in figures 1 and 2, these trends were length by APTA agency size than a coincidence, the change in passenger largely consistent across the American trip length is a factor transit systems should Public Transportation Association's (APTA’s) consider as they continue to evaluate their large, mid, and small transit agency mix of service offerings. definitions, although passenger miles for mid and small transit agencies reached their lowest point in 2017, rather than in 2010 as occurred with the large systems. What does this data reveal? As figure 3 To find out more, contact: shows, the average distance each passenger darrell.smith

traveled, in terms of average passenger trip passenger trip length Average @steergroup.com length, increased over the 10-year period, NTD report year from 5.14 miles in 2008 to 5.39 miles in 2017. Large Transit Systems Mid-Size Transit Systems Small Transit Systems

11 To toll or not to toll By Dan Gomez-Duran

Tolling has been used to fund the The rationale for tolled facilities is that per kilometre, but these accumulate to construction of roads since Roman times they need to provide a time saving to large benefits and provide a stress-free and many toll roads are operational compensate for the toll charge incurred. driving experience. In Canada this would throughout North America today. In Toll facilities fall under the following include Highway 104 in Nova Scotia, a Canada, six tolled facilities, in addition categories: 45-kilometre tolled section of the Trans- to tolled international border crossings, Canada Highway. They are more common are concentrated in the most populous • Bridges/tunnels: Tolled facilities can help in the U.S., including the New York provinces (Ontario and Quebec). Recently, deal with physical natural barriers such Thruway and the Indiana Toll Road. there have been developments to tolling as rivers and mountains. They can be and pricing in Canada. free-standing such as the Confederation Toll lanes in the U.S. are a relatively recent Bridge connecting New Brunswick and concept, where new lanes are built or Prince Edward Island, or in competition existing High Occupancy Vehicle (HOV) with other facilities such as the A25 and lanes are tolled (with HOV requirements A30 bridges in . generally increased from 2+ occupants • Congestion ‘avoiders’: While bridges to 3+ in the toll lane scenario) to provide and tunnels deal with natural barriers, a good level of service on the tolled tolled facilities can also offer a quicker lanes through dynamic pricing. They and more reliable option to congested are also known as value priced lanes, corridors. In Canada the best example is managed lanes, express toll lanes or High the 407 ETR in Ontario. Occupancy Toll (HOT) lanes. They are • Long distance/inter-urban: In this case expanding rapidly in the U.S., but there the facility provides a time saving over a are no examples in Canada. One of the longer distance resulting in a geometric main advantages of toll lanes is that they rather than congestion time savings. In provide a travel alternative to the general these cases, there are small time savings purpose lanes and this can respond to

12 potential fairness issues which ‘full’ toll of Toronto’s plan to toll the Gardiner crossings and a distance-based charge facilities, especially new ones, need to Expressway and Don Valley Parkway in with two or more zones with varying address. 2016. charge rates throughout Vancouver. Related to the impact of tolls, it is This presents a considerable challenge The study found similar results in terms important to highlight the public and to policy makers as there is constant of congestion reduction, household costs political pressure on toll facilities. A pressure on government resources across and revenues, but acknowledged that recent example in Canada includes the all sectors of society and a lack of more analyses and discussion would be removal of tolls by the BC provincial funding to cover these needs. The user required. government on the Mann and Golden pay principle of tolled facilities provides The continued population growth of Ears bridges in Metro Vancouver in 2017 a potentially valuable tool to deal with urban centers in Canada, increasing traffic which resulted in traffic increases of this challenge, but as indicated previously congestion and the limited funding for 25% and 30% respectively. The flipside is the public (and political) pressures are infrastructure represent a challenging the $150 million and $50 million revenue considerable. problem and it will be interesting whether shortfalls from the toll removal and the The latest development in Canada to tolling makes a ‘comeback’ in Canada need to tap into government funds to ‘square this circle’ has been the concept or some sort of mobility pricing is cover debt repayment from the bridge of mobility pricing as a method to provide implemented to address these pressing construction and the decommission of toll a more holistic approach to balancing issues. collection systems. infrastructure funding, congestion

Furthermore, the challenges of tolling management and promoting fairness. A existing roads or bridges (even if they are mobility pricing independent commission to be upgraded) cannot be overstated, as in Vancouver recently completed its work To find out more, contact: evidenced by the removal of tolls planned and identified two broad mobility pricing dan.gomez-duran@ for the Champlain Bridge replacement concepts: a regional congestion point steergroup.com project in Montreal in 2015 and Ontario’s charge with charge points at, or close to, provincial government stopping the City some, or all, of the regionally important

13 14 Scoot commute, the new mobility for employers in Santa Monica

By Nathan Pope

Nearly every month, a new mobility service brought together a group of employers to Shared mobility experts pops up aimed at commuters. From shared sit down with new mobility companies Steer has delivered projects internationally escooters or ebikes, to services, and discuss everything from scooters to across a range of disruptive technologies, to matching apps, employees . Representatives from mobility from dockless bike share to on-demand have more choices than ever for their daily companies Bird, Jump, Lyft, Waze Carpool, minibuses and autonomous vehicles, commutes. But will they use them? and Micro Kickboards were all on hand offering insight to employers, service to discuss what they could offer Santa providers and agencies alike. We are Transportation Demand Management (TDM) Monica employers and their employees. passionate about how new technologies techniques have traditionally focused on Employers asked questions about trip can help shape our urban environments for encouraging walking, biking, public transit, tracking, liability, and costs, while the better. Steer is adept at advising both carpooling and vanpooling. New mobility encouraging the mobility companies to operators and public bodies worldwide, options can offer the same benefits as make their employer programs easy to providing knowledge, insight and guidance traditional transportation modes (fewer implement. At the end of the meeting on the implementation and development emissions, healthier habits, time savings), employers were able to network with the of technologies to complement existing but often have different barriers to entry mobility company representatives and their services while maintaining a commercial (new devices and technology, shared fellow employers. The TMO continued the understanding of business needs. ownership). Therefore, marketing and conversation by sharing the results of the Our team brings together experts in encouraging these new options requires meeting with those who were unable to new transportation technologies, data new ideas and methods for fostering attend and connecting them with the new analytics, planners and technologists to behavior change. mobility providers. provide a holistic understanding of how In California, Santa Monica has been Employers continue to come to the TMO to minimize challenges and maximize ground zero for new micro-mobility and say anecdotally that they see their opportunities. deployment. In September 2017, the first employees using these new services. It is electric Bird scooters appeared on a Santa not currently possible to determine exactly Monica street, seemingly from nowhere. how many commuters are using shared Less than a year later the City launched a micro-mobility services to get to work, Shared Mobility Pilot Program that brought but the number of people in Santa Monica more escooters and ebikes to city streets. choosing them is staggering. According to Combined with Santa Monica’s existing City data, there were roughly 150,000 rides bike share, municipal bus service, and light on shared escooter and ebikes in November rail connecting to downtown Los Angeles, 2018 alone. It is still very early on for these there have never been more options for new transportations solutions and only getting around the city. time will tell how big their impact has Santa Monica is also a regional job been on commuting. The TMO continues center with over 88,000 daily in-bound to help all employees and employers commuters, nearly doubling the population. understand what these new transportation Hence, the way in which these commuters services are and how they can take arrive to the city each day dramatically advantage of them. To find out more, contact: affects local traffic and emissions. Steer has operated the GoSaMO TMO nathan.pope How can employers and their employees since 2016, helping employees, residents @steergroup.com take advantage of new mobility options? and visitors understand their transportation To help answer this question, the Steer- options and encouraging the reduction of operated Santa Monica Transportation drive alone trips. Learn more about the GoSaMo TMO project at Management Organization (GoSaMo TMO) bit.ly/2DAyIva.

15 Transit infrastructure: from vision to reality

By Alan Jones

As our urban areas grow, decision To some, the benefits of new transit 1. Understand that all transit makers and planners grapple with the infrastructure seem obvious: fast, infrastructure projects are political challenges of congestion, air quality, high-capacity, efficient, reliable and projects, with varying degrees of and longer-term climate change trends. safe alternatives to the automobile, technical content. Aligning federal, Transportation disruptors, autonomous helping to realize wider city-shaping regional and local views, or giving vehicles and other mobility providers objectives. However, transit project state and local government the are adding choices, but investment in delivery is often mired in controversy, power to determine and deliver transit infrastructure remains a key triggering high profile political debates, transit projects is critical, ideally component in the urban planners’ toolkit. polarized responses from the public, with a political champion to lead objections and legal challenges, and not the case for the investment. to mention, the need to secure funding 2. Utilize municipal planning documents and environmental approvals, complex to provide the context for any procurement, delays and budget over- transit infrastructure project. runs. Despite these challenges, many 3. Develop a vision for the transit transit infrastructure projects have project, and make sure the vision had a transformative impact on cities, can be translated into tangible their communities and businesses. components of the project and What are the lessons learned measurable goals. Be clear on from successful transit projects? the objectives and the outcomes. Here is the Steer checklist to ensure Know what success will look like. successful delivery of transit projects, 4. Make evidence-based decisions. A drawn from our extensive experience demand-led approach is required to in supporting transit infrastructure guide the discussions and decisions project delivery around the world. on transit technology choice. Make sure the analysis is thorough and

16

News in brief

studies and robust cost estimates Service and operation planning for construction and operations are As communities and decision- central to defining the project scope. makers become more attuned to the A ‘no surprises’ approach, with all value and role of transit in urban components covered (utilities, urban mobility, planning and implementing design, environmental impacts) is innovative plans for services that the best guarantee of success. optimize capacity to support 7. Secure the funding. From grant funding demand are becoming increasingly to private finance to value capture, important. Steer continues to funding sources and requirements support agencies and cities in the vary. Start early on assembling the achievement of these outcomes by funding, using the project evidence developing, testing and challenging base and business case to justify the strategies to make best use of investment. Consider the entire project existing and future resources. lifecycle, including extended operating contract/concession periods. Some of Steer's current projects 8. Plan the procurement. The detailed include: design, supply, construction and operation of a transit infrastructure in Seattle, Washington project is complex and there are progressing the delivery of are multiple options for project their ST2 and ST3 plans which procurement, increasingly through P3s. will see the Link light rail network The project vision/goals must frame expand to 116 miles by 2041. Steer the procurement approach, avoiding is working to develop operational the different viewpoints of contributors strategies for each stage of system to dilute or value-engineer the project development, considering the timing away from its critical components. of infrastructure, fleet procurement 9. Work towards an integrated outcome. and operational facilities to identify Successful transit infrastructure how different service strategies can projects are not developed in best meet future passenger demand. isolation. They contribute to wider city-shaping initiatives and should TransLink in Vancouver, British compliment related policies and Columbia continues to see plans, transit-oriented development significant increases in transit (TOD), wider transit network re- ridership, including on the SkyTrain structuring and urban realm system. Steer is developing and improvements, creating thriving evaluating different potential places for people and businesses. operational strategies for future 10. Tighten the timescales. The average SkyTrain service plans, considering political lifecycle does not encourage the timing of ongoing infrastructure the long view required for the coherent well-documented. Revisiting the improvements, vehicle replacement roll-out of a transit network, or even an transit choice at subsequent stages and the delivery of additional fleet infrastructure project within a single is distracting and time consuming. to meet future demand. corridor. This creates a real prospect Business cases and multiple account of changing political views delaying evaluations should be deployed The Ministry of Transportation of or even canceling a transit project. to support decision making. Use Ontario are developing plans for Cross-political consensus can reduce a ‘business case tracker’ as a tool High Speed Rail between Windsor the risk, with the evidence-based for regular checks that the transit and Toronto. Steer supported the approach used to ensure continuity. project, as it evolves, will still development of the project concept At the same time, scope the project deliver the vision/outcomes. and business case. This included to speed up the technical project 5. Consult widely and ensure the silent understanding the future system development process where possible. center voice is heard. Extreme views operation and how it could be

for and against transit can generate integrated and interoperate with the Transportation infrastructure may be much attention, but thorough and expanding Go Transit rail network challenging to plan and implement, well-informed consultation with and services. however if you keep these guidelines stakeholders, communities and at the forefront, the results can be businesses should be used to ensure transformational. there is a consensus for change. There will be groups with genuine concerns and their issues should

be addressed as far as possible within the project design process To find out more, contact: 6. Develop the detail. Planning a alan.jones@ transit infrastructure project is steergroup.com complex and detailed designs,

17 The future of transit infrastructure investment in Canada By Myriam Langlois

Over the past several years, all levels of private sector investments, ownership 2018-2028 transit infrastructure needs Canadian government have embraced options, and alternative financing outlook transit as a way to manage increasing mechanisms to increase investment in In the summer of 2018, CUTA commissioned congestion in cities, enhance mobility, new and existing infrastructure. Steer to develop and conduct a national ensure economic competitiveness and • Climate change transit infrastructure needs survey, develop reduce carbon emissions. As the transit Across transit agencies and government a forecasting model to supplement missing industry works to provide urban mobility bodies, climate change is a key driver data and assess potential investment solutions, it is important to understand the of risk and uncertainty. As Canada scenarios for the next decade. This study types of investments that transit systems experiences more frequent extreme allowed us to better understand the transit need and the level of actual investment weather conditions, the effectiveness, infrastructure situation in Canada. they receive. Steer has recently worked with lifespan, maintenance, rehabilitation and the Canadian Urban Transit Association renewal of existing infrastructure will be Level of investment needed (CUTA) to complete a survey and develop affected. Canada has responded to these We estimate Canadian public transit a predictive model to gauge transit risks and uncertainties by declaring systems need more than $130.6 billion infrastructure and funding needs for Canada lower emission targets and increased to pursue their planned, unprecedented through 2028. funding to support alternative fuel growth over the next decade. This $130.6 technology. Consequently, integrating billion includes both infrastructure Several key factors are currently shaping new technology will be costly in projects for which funding has already transit infrastructure investment needs, the short-term and the unit costs of been allocated or committed, as well including: maintaining and expanding existing as projects that are currently unfunded transit infrastructure will be more • Population growth expensive than before. Type of infrastructure needs by population group Population growth is a challenge that • New technology (2018-2028) many transit agencies in large cities As the demand for a low-carbon market

address by building capacity and and tightening emissions regulations Group 4 & 5 improving service (through technology drive technology changes, the challenge (population 50% 50% integration or/and expanding service). lies in acquiring additional funding < 150,001) Identifying sustainable revenue streams to support the high costs associated is key to expand service to meet growing with introducing technology and the Group 3 transit demand. However, trends in costs infrastructure required to support (population 38% and revenues show that current revenue it. Increased costs associated with 150,001 62% sources are not keeping with the technology changes do not guarantee - 400,000) growing financial needs. increased transit in terms of coverage • Infrastructure deficit and ridership. Group 2 (population 23%

Like many western countries, Canada • Customers’ expectations needs Infrastructure 400,000 77% has a well-documented infrastructure In addition to environmental - 2 million) deficit, including in the transportation considerations and accelerated industry, which has emerged due to population growth, changes in consumer Group 1 decades of underinvestment. In the expectations are challenging transit 35% (population 65% past two decades P3s have emerged as agencies to expand and elevate service > 2 million) a prevalent delivery method to reduce quality at the same time. In response, the infrastructure gap in Canada. The transit agencies and government $ $10 $20 $30 $40 $50 $60 increased number of P3s and other new are looking more towards private approaches to procure transit projects is partnerships and alternative funding Dollars in billions

a trend that is likely to continue as fiscal procurement and sources to fill the gap Expansion Rehabilitation and Replacement constraints increase. All governments in funding and technological innovation. Note: Group 1 excludes future spending planned by Metrolinx and . have shown growing interest in exploring These agencies overlap multiples cities.

18 its commitment to transit funding around Transit infrastructure investment (1999-2022) 2006, makes its contribution to a given project only after receipts have been filled $100 by project proponents, delaying actual expenditures. $80 $72 Conclusion $56 $19 $60 $54 $54 Efficient and sustainable public transit $40 $18 plays an important role in keeping $18 $14 $40 Canadian communities among the $20 $54 $21 $20 best places to live in the world, while $20 $14 $40 $38 $9 $9 $5 $36 contributing to clean economic growth. $7 Infrastructure Needs ($ Billion) Needs ($ Infrastructure $4 $20 To ensure that transit systems continue to $7 $12 $15 $0 $5 meet their overall mobility objectives, as 1999-2003 2002-2006 2004-2008 2006-2012 2008-2012 2010-2014 2012-2016 2014-2018 2018-2022 well as transit mode share and emissions Funded Unfunded Actual Expenditure targets, federal, provincial and municipal governments, as well as the private sector and citizens, need to collaborate and find Source: Previous infrastructure Needs Survey and CUTA Fact Book new innovative funding solutions to sustain extensive expansion of transit networks and can only be completed if additional investments in public transit, ensuring that across the country while maintaining funding sources were made available. people move freely in a highly competitive the state of good repair in current and Funded projects make up $72.8 billion, economic environment while reducing future assets. This includes finding ways or slightly more than half (56%) of the emissions. The figure above presents the to reduce delays in the procurement and infrastructure needs for the 2018-2028 total infrastructure investment needs in funding processes as well as developing a period. five-year increments from 1999 to 2022. stronger understanding of the importance Canada’s three largest metropolitan Canada’s transit infrastructure investment of infrastructure funding to economic, centers (Toronto, Montréal and Vancouver) continues to increase from the 1999-2003 environmental and local mobility report the greatest infrastructure needs baseline, to the current estimate of $72.2 objectives. in Canada, totaling more than 61% billion for the period 2018-2022. This is of the country's needs over the next reflective of a national effort to expand decade. Future expenditures of the transit transit networks across the country, agencies in those centers primarily focus particularly in larger centers. on maintaining the quality of existing The figure also reflects that actual infrastructure, while regional agencies spending, provided by federal, provincial focus on expanding and integrating and municipal governments, has fallen transit network and services cross the behind projected needs (even funded metropolitan region. Smaller communities needs) as the level of projects has appear to focus more on the expansion of increased. Transit agencies across the their current operations to respond to new country appear to have accumulated a To find out more, contact: demand. backlog of infrastructure projects. Delay myriam.langlois in construction projects is a common @steergroup.com Growth in investment phenomenon and often a costly problem Transit capital investment requirements that will need to be tackled in the next in Canada have developed over the decade. Another explanation for this trend past decades as federal, provincial and could have to do with accounting: the The full report is available on the CUTA website: municipal governments increased their federal government, who began growing bit.ly/2Mn2fv0.

19 True threat (or not) from new mobility By Ian Sproul

New mobility is influencing travel behavior, questions that need to be addressed: how having the same technology. This ability sparking planners and riders to ponder are these technologies going to further to maximize network capacity is nothing how these technologies will materialize disrupt the transportation system, what are new, and a warning from the past is when in the future, and cities and agencies to the benefits, and how should they fit within Scoot was used to optimize traffic in think about how to embrace these new the larger transportation network? London, until a series of small incidents technologies. New mobility is wide ranging, lead to gridlock in the city. Also, the covering everything from dockless bicycle • Reducing vehicle trips and miles traveled opportunity to optimize our road network providers to . To narrow the topic, This shift to AVs and CAVs will likely only exists where roads are not already we have focused on the future of autonomous be led by TNCs and could catalyze at capacity. vehicles (AVs) and connected autonomous a shift from the current private car vehicles (CAVs), and their role alongside ownership model. It is also likely that The big question is will AVs and CAVs one of the most recent influential disruptors, existing vehicle manufacturers may increase the number of cars on our Transportation Network Companies (TNCs). align themselves with these service roads and reduce the number of people providers or begin providing these in each vehicle? If CAVs are not able to When TNCs initially emerged, they offered services directly to support the vehicle significantly increase road capacity and an enhanced on-demand, point-to-point manufacturing business. These shared the majority of vehicle end up having a service for customers using driver- vehicles will provide more trips than the single occupant, then their widespread use operated cars within the existing road private vehicle, but are unlikely to reduce could increase congestion. network. This business model focused the number of vehicles on the road in This raises the issue that many cities on three key elements: use technology to a meaningful way if users increases are now considering: will AVs and CAVs connect with customers, minimize journey their trips and more companies are make best use of limited transportation times to attract demand, and provide encouraged to enter the market. corridors or would higher capacity transit variable pricing based on demand to • Enhancing roadway safety make better use of the space and achieve a optimize financial returns. Some TNCs AVs and CAVs have automated systems better outcome? have expanded their service line to pool that are able to react and stay focused As the pace of change increases and we customer trips within larger vehicles to and on changing road conditions better than speed towards a different future with new from common destinations. The benefits human-operated vehicles. Therefore, mobility, we need to better understand TNCs bring to the customer include ease AVs and CAVs provide the opportunity where this might be the greatest benefit to of use, improved journey experience, and to significantly reduce driver related our overall transportation network, such shorter journey times. Consequently, in collisions. as rural connectivity, first and last mile some cities, there has been a reduction • Optimizing the road network transit access, and in particular mobility in passengers using traditional taxi and Widespread CAV deployment will for an aging population. New mobility may transit services. As a result, these TNC trips increase connectivity by allowing need new regulations, and a greater focus are effectively increasing single person car vehicles to be more efficient within the on changing people's behavior away from trips, contrary to most city and regional road network. This could mean CAVs single occupancy trips. We could well be goals to reduce these. For example, some would avoid road work, incidents or moving from the private car to mobility as commuters may choose a TNC instead of events to find alternative routes and a service with no net benefit, and in the transit, leading to increased congestion spread the demand across corridors. CAV process wasting an opportunity. and emissions. technology may also allow vehicles to With the rapid development and push platoon to better optimize the distance towards AVs and CAVs, it is inevitable To find out more, contact: between vehicles, providing the shortest that these new vehicles will be deployed ian.sproul@ safe stopping distance. The timeline to in increasing numbers in the next decade. steergroup.com achieving these benefits will depend Before this transformation, there are key on the majority of vehicles in the future

20

News in brief

Optimizing the requirements and benefits of High Speed Rail Many countries around the world have benefited from the development of High Speed Rail (HSR) networks. Investment in HSR has been shown to expand connectivity, increase economic productivity, and provide lower emission mobility options for medium to long distance travel. Today, HSR is seeing increased interest across North America, with a wide array of projects and studies underway. The focus of many projects is providing improved connectivity, faster journey times, and additional capacity between major urban centers. However, if HSR is to realize benefits that are commensurate with its significant costs, project proponents and sponsors should consider a wider range of benefits when planning and designing new projects. Rather than focus on technology, Steer has taken a “market-led” approach to HSR planning, identifying the range of travelers and the benefits and costs of a system servicing them. This provides our clients with integrated rail plans that include HSR, regional and commuter services, similar to some of the more successful HSR systems in the world. For example, in the U.K., HS1 is used for both high speed intercontinental passenger services and local commuter rail services for the southeast of England into London. This approach helps to maximize the capacity of infrastructure and increase the benefits of the investment. This approach is helpful in North America, where it can be difficult to utilize existing rail corridors for passenger services and is costly to develop new corridors. Steer has helped clients maximize the benefits of new HSR corridor projects by looking at overlays of different rail services, including point to point HSR, wider regional stopping services, commuter services and premium rail connectors.

21 Transportation equity through fiscal policy

By Leslie Buckman

Adopting a commercial approach to pricing limited road space or transit can be a tricky topic. It is often rejected on the grounds that pricing disproportionately disadvantages people with low or fixed incomes, while those who can afford to pay gain the benefits of a less congested network. Finding a way to implement modest changes to the progressive tax system can address these obstacles and create a larger role for pricing in transportation policy.

Transportation economists have long argued that congestion on the road network can be mitigated or removed through the thoughtful use of pricing. Despite this, only a limited number of downtown city areas (e.g. London, Singapore and Stockholm) have adopted road pricing. Additionally, most publicly operated transit systems are not able to cover their direct operating costs through recovery, and seek outside investment for capital and renewal costs due to the low (in commercial terms) charged. The limited use of road pricing and high prevalence of low transit fares can be linked to a variety of factors, including the commonly held equity based rationale for low or zero transportation pricing. This has constrained policy makers from using pricing to influence transportation demand, both in absolute terms and in terms of mode choice. Mitigating equity concerns would allow pricing to become an integral component of the households. Transparent and simple would become more financially self transportation policy toolkit and reduce revisions to the tax system may be a way to sufficient, relying less on interagency the direct subsidies required for much of achieve this. governance and funding arrangements. the transportation network. Possible approaches could include In summary, the ability to use pricing as The transportation pricing challenge increasing income tax-free allowances part of a transportation policy toolkit is could be considered a wider societal or credits where funding is primarily often limited by genuine concerns around issue of income distribution, however a via income taxes (e.g. for national or equity implications. However, a well- more targeted approach until a wider state/provincial highway systems). For developed proposal that compensates policy narrative can be discussed is property tax funded systems, introducing users that pay, with a focus on low income recommended. For example, promoting or increasing a non-taxable allowance users, would mitigate such concerns. a revenue neutral system, whereby the or credit would return money to those in Better integrating transportation and additional revenue raised by pricing lower value residences and by inference taxation policy will provide a wider range transportation is used to enhance the lower incomes. More fundamentally, the of transportation policy options, and system and further invest in transportation long proposed Universal Basic Income ultimately better transportation systems. infrastructure. However, the design of (UBI) may be a route that could encompass such a system would need to avoid simply increased use of transportation pricing, recycling the revenue back at the level although as intimated earlier, the paid, as this would provide little incentive case for UBI is much broader than just to change behavior, and may make equity transportation. considerations worse, given the impact Obviously, any changes to the tax on cash flow of those on low incomes. system would need to be grounded in the To find out more, contact: Instead, a combined approach is possible, governance structure of the transportation leslie.buckman@ one that combines revenue neutrality system and associated funding sources. steergroup.com alongside a mechanism that returns Such changes should simplify governance revenue disproportionately to low income since the transportation agencies affected

22 It is time to consider smart fares

By Patrick Miller

Fare smart cards have been adopted across North America with over 60 agencies already providing card based ticketing and many additional ticketing programs are under development. As more agencies adopt smart cards there is a significant opportunity to leverage this new technology to grow ridership and revenue with smart fares.

Transit agencies and operators seek to optimize their ridership and revenue while achieving other strategic goals and policies. Typically, ridership growth is seen as an additional cost – either fares are decreased or more service is deployed to grow ridership. An emergent trend to grow ridership without significant new investment is to leverage new automatic fare collection or technology to implement advanced fare structures. These advanced fare structures or ‘Smart Fares’ include a range of approaches to set fares that encourage ridership growth, while meeting commercial targets and achieving broader policy goals. At a high-level, smart fares vary from historic approaches to fare setting and leverage technology to establish more awards based on frequency of travel, While smart fares have seen more dynamic fares: or even deploy event specific pricing to widespread use in Europe and Asia, there is increase transit mode share to sporting a growing opportunity to identify how the • Customer focused: Define prices based or other major events. These approaches benefits of smart fares can be realized in a on specific customer travel patterns and encourage increased ridership from North American context. Early leaders in needs, rather than using a one size fits discretionary travelers who may be this field have already implemented time all approach. (Example: moving from a reluctant to buy a traditional monthly pass, of day pricing and are exploring new set period pass to a frequency based but will seek out a discount or reward by approaches to loyalty and customer discount or a loyalty program with a taking multiple trips on one fare card. centered fares. With the emergence of new commercial partner.) Another example of smart fares, which mobility providers, there are further • Variable: Set prices to vary by time of has seen use in North America already, opportunities to explore how to provide day or customer type. (Example: setting is time of day pricing where customers smart fares across multiple service off peak fares at a rate lower than peak in the off-peak have a lower fare than providers to manage congestion on fares.) travelers in the peak period. This approach roadways and crowding on transit, while • Flexible: Modify prices based on to pricing may shift demand to times of also achieving ridership and revenue emergent conditions to incentivize day when or trains are already less targets. ridership. (Example: discounts during crowded or carry fewer customers. This construction or service disruptions.) means travelers in the peak benefit from • Integrated: Align prices between multiple less crowding and agencies can make mobility providers to allow for seamless better use of capacity that is already being ticketing and payment. provided. In some instances, the influx of new off-peak demand could cover the lost The potential benefits of smart fares revenue of lowering the fare or even grow include ridership and revenue optimization revenue, allowing an agency to increase along with directly supporting broader its ridership and customer comfort without policy objectives. For example, smart cards additional expenditure. allow agencies to understand customer Family based pricing has also been travel patterns, which can aid in service explored to encourage more evening and planning. This data can also be used to weekend ridership. While many agencies To find out more, contact: optimize smart fares based on customer may offer a free child fare, smart cards patrick.miller@ use patterns. Agencies can use traveler could be used to link multiple travelers as steergroup.com history to develop loyalty programs where a group and apply a discount if a set of passengers receive discounts or other smart cards are used to travel together.

23 Reducing California's greenhouse gas emissions through TDM By Kate Bridges

California is making progress towards its To do so, some cities are using Table 1: California’s greenhouse gas goals to reduce greenhouse gas (GHG) Climate Action Plans (CAPs), reduction targets emissions to 40% below 1990 levels by transportation demand management 2030. But to ensure the state reaches that (TDM) ordinances and changes to the Target Year Legislation target, local and regional governments will development review process to align 1990 Levels(431MMCO e) 2020 Assembly Bill 32 (2006) need to encourage people to drive less. local efforts with regional and state 2 policies to reduce GHG emissions. 40% below 1990 Levels 2030 Senate Bill 32 (2015) The California Air Resources Board 80% below 1990 Levels 2050 Assembly Bill 32 (2006) reported in July that the state had reached the first of its GHG reduction Passenger vehicles contribute 120 targets, to meet 1990 pollution levels, MMCO2e per year, surpassing heavy-duty ahead of its 2020 deadline. In 2016, the vehicles and other on-road sources. Thus, state produced 429 million metric tons despite the adoption of alternative fuels of carbon dioxide (MMCO2e), a roughly and more efficient vehicles, our reliance 13% drop from its peak in 2004. Both per on driving cars generates the bulk of our capita GHG emissions and the intensity transportation GHG emissions (about of pollution in relation to gross domestic 70% of the transportation sector), not product also decreased. According to to mention other harmful pollutants. the state’s annual inventory report, The latest Assembly Bill 32 scoping plan shifts in energy production, from coal recognizes that vehicle miles traveled to renewables and hydro-electric power (VMT) reductions are necessary to meet both in and out of state, are the biggest 2030 targets, and provides a general factors contributing to these reductions.[1] list of strategies for implementation at As a percentage of the total, the the local and regional level to get us transportation sector now produces there, which include infill development, roughly 40% of total GHG emissions. infrastructure, pricing policies and transportation efficiency/TDM measures. 24 Regional and local governments will some degree of action to limit the single review process such that traffic impacts be integral to these efforts. Per Senate occupancy vehicles trips to/from their are measured by VMT, not by level of Bill 375, the Air Resources Board sets site, using a combination of carrot and service (prompted by Senate Bill 743). GHG targets for each region in California. stick strategies such as site improvements, This change favors the use of TDM Metropolitan Planning Organizations parking management, financial strategies to mitigate traffic impacts (MPOs) have the responsibility for incentives, education and marketing. TDM in lieu of increasing roadway capacity. developing Sustainable Communities Ordinances are by no means specific The TDM Ordinance can provide a vital Strategies to meet those targets. Local to California cities and vary depending framework to link vehicle trip reduction to governments may implement CAPs or other on regional goals and objectives, development and further climate action policies to guide how these reductions are regulatory environment, geography, land planning at the municipal, regional and achieved at the municipal level, whether use patterns, and monitoring programs. ultimately, the state level. through VMT reduction, better building The City of Los Angeles is also practices, or renewable energy sources. in the final phases of developing a Some cities who have adopted Climate TDM Ordinance for commercial and Action Plans have included behavior residential development. This ordinance change targets. The City of Carlsbad’s will require property owners to make CAP, for example, aims to increase site improvements that support use alternative mode share to 40% by 2020. of alternative modes and implement In 2018, Steer worked with the City of commuter benefits programs for To find out more, contact: Carlsbad and the Association employees and residents. It also kate.bridges@ of Governments (SANDAG) to develop measures project performance towards steergroup.com and draft a still pending municipal specific mode share goals over time, by TDM ordinance, which was required by requiring that property owners regularly the CAP to help meet its objectives. survey employees and residents. A TDM Ordinance typically mandates that At the same time, both Carlsbad and Los [1] California Greenhouse Gas Emission Inventory: 2000- developers and/or property owners take Angeles are changing their development 2016, bit.ly/2QMj1o5.

25 Interview

Michael Colella Associate Director U.S. Advisory Team

North American transportation infrastructure over two decades

Associate Director, Michael Colella, the development and delivery could be Q: Technology is constantly changing originally from New York, has returned done by either the public or private sector. transportation as we know it. In your view, home after spending 22 years in London. London is the best example of this, where which technologies are having a bigger Given his experience working in both the Transport for London determines the types impact on the transportation sector? U.K. and U.S., we asked Michael about the of bus or rail services or cycling policies, A: Many technologies have already had differences between the two and what but most are operated and delivered an interesting impact on the world, as we challenges he sees for transportation in by the private sector. This outsourcing know. In New York, for example, services North America. remains limited in the U.S., and although like Uber have had a pretty big impact some exceptions such as P3 toll road on people’s lives. Bike share programs Q: Since you have been away from the projects are happening, there is very have also had interesting consequences, States for over two decades, how do you limited involvement of the private sector allowing big cities like New York and compare transportation infrastructure and in what is considered the public-sector London to have more extensive cycling policy today to that of the 1990s? realm. infrastructure than 20 years ago. As A: I think nowadays there is a growing Canada is similar to the U.K. For existing infrastructure continues to acceptance that transportation example, Toronto’s Metrolinx determined struggle to deliver reliable services, some infrastructure, and infrastructure more what they wanted for the GO station impact on demand could be expected, generally, are much more important expansion project but the private though I expect it to be relatively limited. issues than they were perceived to be in sector will develop, deliver and run the It will be very interesting to see how the 1990s. Back then, transportation was expansion. technology impacts a country like important in some areas, but on more Canada, with a large rural population. general terms and at a national level, Q: What are the challenges you see facing I think rural communities could really people just got around and transportation transportation into the future in the U.K. benefit from some of the technologies was not a priority on the political agenda and North America? that are starting to permeate. of the time. In Canada, back in the 1990s, A: I have found that the quality of they were disinvesting in transportation. infrastructure in the U.S. could use Q: Steer works across the globe. Are there Fast forward 20 years and we start some improvements, however there are any transportation lessons or strategies seeing a sense of urgency and appetite fundamental challenges – more money, being deployed in other countries or to do something in this arena. Since the investment and time – needed to deliver geographies that could be applied to the Trudeau administration came into power in these. I think the country could benefit U.K. or North America? Canada, they have increased investment from finding a more effective and efficient A: I think bus (BRT) and more in transportation infrastructure. In the U.S., way of delivering and maintaining flexible transportation infrastructure there is definitely a greater interest, and in transportation infrastructure involving the could play a much bigger role in North key areas – Los Angeles, Seattle, , private sector. America, or even the U.K. The rise of BRT , , – they are finding In the U.K., the challenges lie in the in Latin America – Brazil, Colombia, Chile ways to generate income for investing in growing population using infrastructure and almost every country there – has been infrastructure improvement. that isn’t growing at the same rate and done partially because they didn’t have finding the funding to make the necessary the time to design and build big expensive Q: What are the main differences between changes that doesn’t depend solely on metro or commuter rail systems. BRTs transportation in the U.K. vs. North general taxation. potentially represent a stepping-stone to America? Canada is somewhere between the metro systems in the future when demand, A: In the U.S., there is a clearer distinction U.S. and U.K. There is some infrastructure fares and costs are better understood. between what the private sector does, in Canada that has seen very little This approach of ‘incrementality’ is really such as running an , and what the investment over the last few decades, something that could be leveraged further public sector does, such as running a though this is now changing. I think elsewhere. commuter rail service. passenger rail could be playing a much In the U.K., it is much more fluid. There bigger role, whether it is long distance is a sense that while transportation policy commuting or intercity. To find out more, contact: is ultimately a public-sector decision, [email protected]

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