Public Disclosure Authorized CITIES ON THE MOVE Public Disclosure Authorized A WORLD BANK URBAN TRANSPORT STRATEGY REVIEW Public Disclosure Authorized Public Disclosure Authorized THE WORLD BANK Washington, D.C. © 2002 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org E-mail [email protected] All rights reserved. Published August 2002 Manufactured in the United States of America 1 2 3 4 05 04 03 02 The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the govern- ments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, World Bank, 1818 H Street, NW, Washington, DC 20433, USA, fax 202-522- 2422, e-mail [email protected]. ISBN 0-8213-5148-6 Cover photo: John Flora, 1995; Guangzhou, China. Library of Congress Cataloging-in-Publication Data World Bank. Cities on the move : a World Bank urban transport strategy review. p. cm. “The author of the report is Ken Gwilliam”—Ackn. Includes bibliographical references. ISBN 0-8213-5148-6 1. Urban transportation. 2. Urbanization. I. Gwilliam, K. M. II. Title. HE305. W67 2002 388.4—dc21 2002025882 CONTENTS ACKNOWLEDGMENTS vii ABBREVIATIONS AND ACRONYMS, CITIES AND COUNTRIES ix EXECUTIVE SUMMARY xi 1 CONTEXT FOR THE REVIEW 1 2 URBAN TRANSPORT AND CITY DEVELOPMENT 5 Urban Transport and City Efficiency 5 Sources of Declining Urban Transport Performance 8 Urban Transport in City Development Strategies 11 Development Strategies for Making Urban Transport More Efficient 12 Coordinating Sector Policies in City Development Strategies 21 Conclusions: A Strategy for Urban Transport in City Development 22 Notes 23 3 URBAN TRANSPORT AND POVERTY REDUCTION 25 Urban Poverty and Social Exclusion 25 Transport Patterns of the Urban Poor 25 Pro-Poor Economic Growth and Poverty Reduction 28 Focusing Infrastructure Policies 29 Public Transport Service Planning for the Urban Poor 32 Fare Policies, Subsidies, and Budget Constraints 34 Conclusions: A Strategy for Poverty-Focused Urban Transport 36 Notes 37 4 TRANSPORT AND THE URBAN ENVIRONMENT 39 The Scale of the Issue 39 Global Warming 40 Noise and Other Disturbances 42 Urban Air Pollution 42 Conclusions: A Strategy for Urban Transport and Environment 60 Notes 61 5 URBAN TRANSPORT SAFETY AND SECURITY 65 The Scale of the Issue 65 Safety 66 Security 72 Conclusions: A Strategy for Urban Transport Safety and Security 75 Notes 76 CONTENTS iii 6 THE URBAN ROAD SYSTEM 77 Elements of Road Strategy 77 Road Maintenance 77 Traffic Management 79 Demand Management 83 Infrastructure Provision 84 Poverty Focus 88 Conclusions: A Strategy for Roads 90 Notes 91 7 PUBLIC ROAD PASSENGER TRANSPORT 93 The Urban Bus Sector 93 Conclusions: Toward a Strategy for Public Transport 106 Notes 107 8 MASS RAPID TRANSIT 109 The Scale of the Issue 109 Objectives and Role of Mass Rapid Transit within the City Development Strategy 110 Relationship to Urban Structure and Land Use 111 Mass Rapid Transit and the Urban Environment 111 Choice of Mass Rapid Transit Technology 112 Ownership and Financing 117 Public Transport Integration 121 Pricing 121 Conclusions: Toward a Strategy for Mass Rapid Transit 122 Notes 123 9 THE ROLE OF NONMOTORIZED TRANSPORT 125 The Importance of Nonmotorized Transport 125 Walking Is Transport 126 Walking on Wheels 126 The Policy Package 128 Municipal Institutions and Organization 132 Conclusions: A Strategy for Nonmotorized Transport 134 Notes 134 10 URBAN TRANSPORT PRICING AND FINANCE 135 The Role of Prices in Urban Transport 135 Charging for the Use of Infrastructure 135 Public Transport Pricing and Finance 141 Urban Transport Financing 146 Conclusions: A Strategy for Urban Transport Pricing and Financing 150 Notes 151 11 STRENGTHENING URBAN TRANSPORT INSTITUTIONS 153 The Importance of Institutions 153 Major Institutional Weaknesses 154 iv CONTENTS Organizational Options 156 Capacity Building 165 Conclusions: A Strategy for Institutional Reform in Urban Transport 167 Notes 168 12 MEETING THE DEVELOPMENT CHALLENGES: HOW CAN THE BANK CONTRIBUTE? 169 Development Challenges 169 Strengthening the Focus on Poverty 170 Facilitating Decentralization 171 Mobilizing Private Participation 173 Increasing Transport Safety and Security 175 Protecting the Environment 176 Conclusions 179 Notes 182 APPENDIX: URBAN TRANSPORT PORTFOLIO IN THE WORLD BANK 183 A.1 Urban Transport Projects under Preparation and Implementation as of February 26, 2002 183 A.2 Special Project Features 187 A.3 Urban Portfolio: Project Cost and World Bank Group Loan and Grant Amount Allocation 190 BIBLIOGRAPHY 193 INDEX 201 TABLES 2.1 A Categorization of City Circumstances 7 2.2 Estimates of External Costs of Road Transport 9 3.1 Poverty-Focused Urban Transport Interventions: Road Infrastructure 30 3.2 Income of Users of Rail Systems in Brazil 31 3.3 Poverty Impacts of Interventions: Rail Infrastructure and Management 32 3.4 Average Income of Users by Transport Mode 33 3.5 A Poverty-Focused Agenda: Public Transport Service Planning 35 3.6 Poverty-Focused Urban Transport Interventions: Finance Strategies 37 6.1 Functions and Responsibilities of a Typical Traffic Management Agency 82 6.2 Typical Functional Classification of Road and Path Networks 86 7.1 Efficiency of Bus Operations in Delhi, 1995 94 7.2 A Classification of Informal (Noncorporate) Urban Transport Operations 102 8.1 Performance and Cost of Some Typical Mass Rapid Transit Systems 113 8.2 Variation of Cost in Recent Metro Contracts 117 8.3 Financial Performance of Some Metro Systems 118 11.1 Allocation of Strategic Functions 154 11.2 Professional Organization for Municipal Transport Functions 158 CONTENTS v FIGURES 2.1 Motorization and Incomes: Growth of Cars versus Growth of per Capita Incomes in France, Japan, Spain, and the United Kingdom, 1950s to 1995; and the Relative Positions of Selected Other Countries, 1995 10 4.1 Overview of Ambient Air Quality in Selected Cities: Subjective Assessment of Monitoring Data, Various Years in the 1990s 44 7.1 Urban Public Transport Competition: Regimes and Transitions 97 7.2 Effects of Competition on Bus Transport in London 99 11.1 Effect of Transport Integration in Madrid 157 11.2 A Typical Metropolitan Planning Process 161 BOXES 2.1 City Development Strategies 12 2.2 Matching Locational Characteristics and User Demands 17 2.3 Internal Consistency in Planning 18 2.4 The Market and Land Use and Transport Integration: The Tama Garden City Development 20 4.1 Fuel Adulteration in Thailand 46 4.2 Electric Three-Wheelers in Kathmandu 49 4.3 The Benefits of Information: Lubricating Two-Strokes 53 4.4 Private Sector Vehicle Inspection and Maintenance in Mexico City 54 5.1 Road Accidents and the Poor in Sri Lanka 66 5.2 Saving Lives in Brasília 72 5.3 Crime, Violence, and Diminishing Mobility 73 6.1 Financing Urban Road Maintenance in the Kyrgyz Republic 78 6.2 Paving Roads in Low-Income Areas in Brazilian Cities 90 7.1 Introducing Competitively Tendered Franchises in Uzbekistan 100 8.1 Leveraging Urban Transport Coordination in Brazil 116 8.2 TransMilenio: Bogotá’s Bus Rapid Transit System 119 8.3 The Hopewell Project in Bangkok 120 9.1 Some Recent Experience with Facilities for Cycling in China 128 9.2 The Bogotá Bicycle Master Plan 129 9.3 Shova Lula (Ride Easy): A National Bicycle Transport Partnership 130 9.4 Stakeholder Participation in Nonmotorized Transport Development in Tanzania 133 10.1 The Namsan Tunnels in Seoul: Simple Road Pricing Reduces Congestion and Finances Traffic Management 137 10.2 Electronics Improves Road-Pricing Efficiency in Singapore 138 10.3 Recovering Fixed Costs: The Ramsey Pricing Rules 143 11.1 Engaging Civil Society in Planning Resettlement of the Poor in Mumbai 165 vi CONTENTS ACKNOWLEDGMENTS This strategy review was undertaken on the initiative of John Flora, Director of the Transport and Urban Development Department of the World Bank. The author of the report is Ken Gwilliam, Economic Advisor to the Transport Department of the World Bank. The report has been discussed and approved by the Transport and Urban Sector Boards of the World Bank. The work was undertaken in collaboration with the Urban Transport thematic group, which dis- cussed and agreed on the report in detail. Important contributors to this review process included the coordinators of the group, Ed Dotson and Richard Podolske, together with Patrick Bultynck, Sally Burningham, Robin Carruthers, Jean-Charles Crochet, Ben Eijbergen, Pierre Graftieaux, Paul Guitink, Jeff Gutman, Ajay Kumar, Zhi Liu, Gerhard Menckhoff, Slobodan Mitric, Hubert Nove- Josserand, Jorge Rebelo, Binyam Reja, Richard Scurfield, Graham Smith, Antti Talvitie, and Lou Thompson. Colleagues from the Urban Development, Environment, and Energy sectors who made important contributions, particularly to chapters 2 and 4, include Samir El Daher, Fitz Ford, Vincent Gouarne, Sonia Hammam, Christine Kessides, Masami Kojima, Magda Lovei, and Margret Thalwitz.