Alternative Institutional Arrangement for Urban Transit and Intercity Railway Operations: Lessons for the U.S. SENIOR PROJECT BY SEITU COLEMAN ADVISOR: CORNELIUS NUWORSOO, PH.D., AICP CITY AND REGIONAL PLANNING DEPARTMENT CALIFORNIA POLYTECHNIC STATE UNIVERSITY SAN LUIS OBISPO, CALIFORNIA 2015 APPROVAL PAGE TITLE: Alternative Institutional Arrangement for Urban Transit and Intercity Railway Operations: Lessons for the U.S. AUTHOR: Seitu Coleman DATE SUBMITTED: August 9, 2015 Cornelius Nuworsoo, Ph.D, AICP _______________________________ _______ Senior Project Advisor Signature Date Hemalata Dandekar, Ph.D _______________________________ _______ Department Head Signature Date Alternative Institutional Arrangements for Urban Transit and Intercity Railways Seitu Coleman Table of Contents LIST OF FIGURES .................................................................................................................................................... VI LIST OF TABLES .................................................................................................................................................... VII ACKNOWLEDGEMENTS ....................................................................................................................................... VIII 1. ABSTRACT .................................................................................................................................................... IX 2. BACKGROUND .............................................................................................................................................. 1 2.1. THE COMPETITIVENESS OF TRANSIT ..................................................................................................................... 1 2.2. INTEREST IN TRANSIT GROWS............................................................................................................................. 3 3. PREMISE ..................................................................................................................................................... 13 3.1. PROBLEM ..................................................................................................................................................... 13 3.2. STUDY PURPOSE ............................................................................................................................................ 13 3.3. STUDY METHODOLOGY ................................................................................................................................... 13 4. ALTERNATIVE INSTITUTIONAL MODELS ...................................................................................................... 15 4.1. JAPAN’S PRIVATE RAILWAY COMPANIES ............................................................................................................. 15 4.2. HONG KONG’S MASS TRANSIT RAILWAY CORPORATION ....................................................................................... 21 4.3. THE CONNECTION BETWEEN TRANSPORTATION AND LAND USE .............................................................................. 25 4.4. STATION AREA PARTNERSHIPS.......................................................................................................................... 33 4.5. LESSONS FOR THE U.S. ................................................................................................................................... 46 4.6. LAND USE IMPLICATIONS IN THE U.S. ................................................................................................................ 52 5. CONCLUSIONS AND FINDINGS .................................................................................................................... 58 6. RECOMMENDATIONS ................................................................................................................................. 60 REFERENCES ......................................................................................................................................................... 63 v Alternative Institutional Arrangements for Urban Transit and Intercity Railways Seitu Coleman List of Figures FIGURE 1. TRANSPORTATION EXPENDITURES OF ALL LEVELS OF GOVERNMENT BY MODE. (BTS, 2012). ............................................. 1 FIGURE 2. UNLINKED PASSENGER TRIPS ON TRANSIT MODES (ROADWAY AND FIXED-GUIDEWAY) FROM 1890 TO 2013 (AMERICAN PUBLIC TRANSPORTATION ASSOCIATION [APTA], 2015, PP. 20-27). ................................................................................ 3 FIGURE 3. PASSENGER-MILES BY TRANSIT MODE IN THE U.S. (BTS, 2014). ................................................................................. 5 FIGURE 4. FUNDING SOURCES FOR U.S. TRANSIT OPERATIONS EXPENDITURES. (GAO, 2010, P. 14). ................................................ 7 FIGURE 5. FUNDING SOURCES FOR U.S. TRANSIT CAPITAL EXPENDITURES. (GAO, 2010, P. 15). ...................................................... 8 FIGURE 6. A MAP OF THE RAILWAY NETWORK IN THE GREATER TOKYO METROPOLITAN AREA. (“TOKYO METRO MAP KAI,” 2013). ...... 17 FIGURE 7. MTRC NETWORK IN HONG KONG SAR. (“HONG KONG MTR SYSTEM MAP,” 2009). ................................................... 23 FIGURE 8. THE TRANSPORTATION-LAND USE DYNAMIC. (GIULIANO, 1995, P. 307). .................................................................... 26 FIGURE 9. A MODEL OF THE SYNERGY BETWEEN RAILWAYS AND PROPERTY DEVELOPMENT. (TANG, CHIANG, BALDWIN, & YEUNG, 2005, P. 3). .................................................................................................................................................................... 28 FIGURE 10. TWO MODELS OF RAILWAY AND PROPERTY DEVELOPMENT. (TANG, CHIANG, BALDWIN, & YEUNG, 2005, P. 7). ............... 30 FIGURE 11. THE COMPONENTS OF A STATION AREA DEVELOPMENT WITH MTRC. (CERVERO & MURAKAMI, 2008, P. 72). ................ 36 FIGURE 12. BERLIN’S MAIN RAILWAY STATION. (EPHEMERON 1, 2008). ................................................................................... 39 FIGURE 13. AN EXAMPLE OF JOINT DEVELOPMENT. IN BOTH CASES, THE STATION IS OFF TO THE SIDE. (GAO, 2010, P. 6). ................. 40 FIGURE 14. “TRANSIT-ADJACENT DEVELOPMENTS” AROUND VALLEY TRANSIT AUTHORITY LIGHT RAIL IN SAN JOSE, CALIFORNIA. (CERVERO & MURAKAMI, 2008, P. 27). .................................................................................................................... 40 FIGURE 15. RELATIVE SOUND LEVELS EMITTED ACCORDING TO RELATIVE SPEED. (FTA, 2006, P. 2-6). ............................................ 42 FIGURE 16. TUNG CHUNG STATION AND SURROUNDING DEVELOPMENTS. (HOKACHUNG, N.D.). .................................................... 43 FIGURE 17. STATION AREA DEVELOPMENTS BY THE TOKYU GROUP. (TOKYU GROUP, 2013). ........................................................ 45 FIGURE 18. OUTSIDE OF SHIBUYA STATION IN TOKYO, JAPAN. (“SHIBUYA STATION WEST EXIT BUS TERMINAL,” N.D.). ..................... 46 FIGURE 19. ARTICULATED DENSITIES OF URBAN DEVELOPMENTS. (SUZUKI, CERVERO, AND IUCHI, 2013, P. 155). ............................. 53 FIGURE 20. POPULATION DENSITY ALONG A TRANSIT CORRIDOR. PRODUCED BY THE AUTHOR. ........................................................ 54 vi Alternative Institutional Arrangements for Urban Transit and Intercity Railways Seitu Coleman List of Tables TABLE 1. U.S. PASSENGER-MILES BY MODE (BUREAU OF TRANSPORTATION STATISTICS [BTS], 2014). ............................................. 2 TABLE 2. RATIO OF FARE REVENUES TO OPERATING EXPENDITURES OF NORTH AMERICAN TRANSIT AGENCIES IN 2012. (NATIONAL TRANSIT DATABASE [NTD], 2013). ............................................................................................................................. 9 TABLE 3. OPERATING REVENUES OF TRANSIT AGENCIES IN NORTH AMERICA. (NTD, 2013)........................................................... 10 TABLE 4. OPERATING MARGINS OF TRANSIT AGENCIES IN NORTH AMERICA. (NTD, 2013). ........................................................... 11 TABLE 5. OPERATING REVENUES OF RAILWAY COMPANIES. MODIFIED FROM (SAITO, 1997, P. 5). ................................................. 19 TABLE 6. OPERATING PROFITS FOR MAJOR PRIVATE RAILWAY COMPANIES IN JAPAN. MODIFIED FROM (SAITO, 1997). ....................... 20 TABLE 7. OVERVIEW OF MTRC PROPERTY DEVELOPMENT. MODIFIED FROM (CERVERO & MURAKAMI, 2008, P. 12). ....................... 24 TABLE 8. THE PARTNERSHIP RESPONSIBILITIES IN A STATION AREA DEVELOPMENT PROJECT. MODIFIED FROM (CERVERO & MURAKAMI, 2008, P. 72). ........................................................................................................................................................ 36 TABLE 9. STATISTICS ON THE TUNG CHUNG STATION AREA. MODIFIED FROM (CERVERO & MURAKAMI, 2008, P. A2-16). ................ 44 vii Alternative Institutional Arrangements for Urban Transit and Intercity Railways Seitu Coleman Acknowledgements I would like to express gratitude to my family, friends, and Cocoa (pet dog) for the support they have given me along the way to complete this work. Many thanks goes to the two students in my Advanced Placement Environmental Science class, who incited a fire in me and gave me a purpose in life. Also to thank are the leaders who have read and taken to heart my letters, which discuss ideas that are incorporated into this study. Final and very special praise goes to Cornelius Nuworsoo, Professor at Cal Poly, San Luis Obispo, whose guidance, patience, and trust in