Implementation of Transantiago

Enero 19, 2007

Implementation of Public Transport in Santiago, Chile:

The Plan was requires the implementation of a number of different policies:

Re-design of bus routes and of the way in which they operate:

This strategic change will correct the overlap of bus routes, which is one of the main characteristics of the present system. This means re-drawing the entire network of services, dividing them into two types:

  1. Those which operate on the city’s main axis roads
  2. Those which serve local pockets of demand, taking passengers to the Metro or connecting with bus services on axis roads. All these services will operate in a complementary way, using an integrated fare system.

Automatic and centralized fare collection:

If the city’s public transport services are to complement each other, operating as a network and using an integrated fare, it is vital to implement an automatic payment system that centralizes fare collection and distributes the resulting revenue in accordance with the services that the different operators have provided. As its universally-accepted means of payment, the system will use a smart card, known as “Multivía”, that is already operating in the Metro and on some buses that link Metro stations to residential areas.

A “modern” industry structure:

A restructuring of the way transport operators are organized is required in order to overcome one of the present system’s sources of inefficiencies. For the new services, firms will be required to have a certain minimum size, eliminating the present proliferation of very small operators. This will help to end the present competition for passengers, and routes, that is detrimental to road safety. Bidders will be required to fulfill the technical and financial conditions stipulated in the different tenders. The Plan also makes provision for technical assistance programs to facilitate the adaptation and re-conversion of existing operators.

The incorporation of new management practices:

The operation of an integrated public transport network will make it possible to offer bus services that are more closely tailored to demand levels, both within the day and, as demand evolves, over time. This will open the way to a significant downsizing of the city’s fleet of public buses, as well as reducing over-investment and diminishing the total distance covered by each bus. This will mean lower operating costs for the system as a whole, as well as for each operator individually.

These changes will require the coordination of the entire bus fleet, using an Intelligent Transport System (ITS). For this reason, the Plan includes an Information and Control Center (Transantiago CIG), which will make it possible to operate the fleet in line with daily variations in demand, and to monitor the fulfillment of the terms of concession contracts.

The construction of specialized infrastructure:

The new service standards, set for the bus system, require specialized infrastructure. This will include segregated bus lanes on some axis roads, modern bus stops in line with levels of demand, transfer terminals at which passengers can change from one form of public transport to another (Metro, buses, inter-city transport, and taxis), transfer stations at which different bus routes and the Metro converge, and centers in different districts of the city to regulate the frequency of services.

Training for bus drivers:

Bus drivers are key for the operation of a system of public transport and, for this reason, the Transantiago Plan will seek to improve driver standards, increasing license requirements and opportunities for in-service training.

This will mean a substantial improvement in working conditions. In addition, the Plan will promote a change in the wage system, fostering a shift away from the present system based on ticket sales to one in which drivers have a fixed-wage contract and full social security benefits. Drivers will also have access to improved facilities at terminals, and the incorporation of women drivers will be encouraged.

Public relations and citizen participation:

In order for the different elements of the Transantiago Plan to function harmoniously, a change in attitudes towards public transport, among both users and non-users, will be vital

This will require an exercise in public relations, participation and citizen dialogue. To achieve this, a communications strategy will be designed, including publicity campaigns and training schemes, to inform the city’s inhabitants about use of the new system of public transport. The impact of this cultural change should also be apparent in other economic activities in the city. Transport considerations should, for example, be an integral part of all real estate and business projects. The role of the city’s municipal governments is also very important, and systematic progress will be required towards joint planning and the concerted use of the powers that both the central government and municipal authorities have over decisions that affect the transport sector, as well as towards increasing the coordination and impact of the public sector’s role in the system.

A reduction in the transport system’s environmental impact. The new public transport system will mean a significant reduction in Santiago’s air and noise pollution levels. The number of buses and the distances they travel will drop, and new technologies will be introduced, incorporating stricter standards on the emission of pollutants, while vehicles with cleaner technologies and cleaner fuels will be used. The elimination of the practice of racing for passengers will also mean safer driving standards and, therefore, fewer accidents.

The People and Users of TranSantiago, still waiting the Implementation!

Transantiago Chile · Publicación: English Information 

Transantiago: Financial Administration Service

Enero 18, 2007

The new system of public transport will require a financial administration service, providing integrated management of the collection, control, and distribution of revenue. Public transport fares in Santiago are worth an estimated US$ 700 million per year, equivalent to the revenue obtained from the more than five million journeys made daily in the city. The concession period for the Financial Administration Service will be twelve years.

The present analysis is based on an average fare per journey of 338 Chilean pesos (as compared with 341 pesos in December 2003), although the actual fare will be determined by the results of the tenders, reflecting the costs foreseen by each of the operators of axis and feeder routes. During the concession period, the fare will increase or decrease in line with the costs submitted periodically by the concession companies.

The Transantiago Financial Administration Service (AFT) do the following tasks:

Issue of a Universal Means of Payment:

This involves supplying and activating smart cards that passengers must acquire as their means of access to the transport system, including axis and feeder routes. The model to be adopted corresponds to that for the Multivía card, already in use in the Metro.

Sale and distribution of smart cards:

This requires setting up a distribution channel that allows passengers to acquire the Multivía card.

Charging and recharging facilities:

This requires establishing a network of points at which passengers can charge and recharge the Multivía card.

Administration of the system’s resources:

The AFT will be responsible for managing the different resources associated with the transport system. In order to fulfill this responsibility, it must maintain at least the following accounts:

Initial Technical Reserve:

This constitutes the system’s opening balance, designed to give it initial stability. The AFT must open this account with a deposit of 1,200,000 UF (The UF is an index-linked currency unit. As of the end of December 2003, it was worth 16,930 Chilean pesos).

Operating Technical Reserve:

This will be constituted with a provision for temporary shortfalls, built into the fare paid by passengers. In 2005, the provision will amount to 30 Chilean pesos, but will subsequently be determined on the basis ofthe balance in this account.

Passengers Account:

The revenue obtained from the sale and recharge of smart cards will be paid into this account, before being transferred to other accounts under procedures established in the terms of the tender.

Concession Companies Account:

Funds deposited in the Passengers Account will be transferred to this account once a journey has been made. The AFT will be responsible for distributing these funds among the sub-accounts corresponding to the axis and feeder route operators, and to providers of support services, prior to paying each concession company its share of the revenue.

Fines and Bonuses:

This account will be used for the deposit of funds from the Concession Companies Account that are held back as fines in order to pay those concession companies that are awarded bonuses, as instructed by the Ministry.

Provision of Credit:

The AFT must arrange the lines of credit that are necessary for the system’s correct functioning. Through the fiscal budget, the State will provide a guarantee for 2,000,000 UF of these credit lines.

The AFT must also provide the system directly with a line of credit for an overdraft of up to 2,000,000 UF, which will be used to cover temporary shortfalls that will be reimbursed through fare adjustments. The AFT must also have access, either directly or through third parties, to loans for up to 2,000,000 UF, with a duration of eighteen months, to meet unforeseen, and unlikely events, or acts of God, and to cover the average overdraft that it has run for eight months, and which the AFT and the Technical Inspection Service agree cannot be covered through fare adjustments.

Transantiago Chile · Publicación: English Information