Five Ways to Reduce Transit Costs in the Face of Powerful Transit Challenges

Filed Under AVL Systems, Best Practices, Feature Stories, Municipal Transit, Real-time Passenger Information Systems, Transit Management Challenges, Transit Trends, Transportation Trends, University Transit

The transit industry is experiencing an unprecedented combination of factors that seriously affect transit service provision. Rising fuel costs have driven many commuters to use public transit as their primary method of transportation to and from work. To make matters worse, motor fuel tax revenues are down as Americans traveled 3.3% fewer miles during the second quarter of 2008. The bottom line is that transit agencies are attempting to do much more with much less. That’s where ITS solutions from NextBus come in.

The Solution - Smart Transit Management Using NextBus Products & Services

Agencies nationwide are scrambling to determine how to fund capital improvements, such as new rolling stock and transit centers, as their operating costs continue to take an ever increasing bite out of their budgets. Transit agencies will find that a NextBus system provides the smart transit management necessary to meet this increased demand with the same or fewer resources.

5 Ways to Save Money by Deploying Next Generation Solutions

Reduce Fuel Costs
According to APTA, the average cost of diesel fuel has increased 166% over the last four years. The NextBus system reduces your fuel costs by providing AVL and APC reports. Transit planners can use the AVL data to determine optimum headways and eliminate unnecessary idle time built into schedules. Without AVL technology, transit planners must build buffers into the schedule to ensure on time performance.
Reduce Labor Costs
Better resource utilization will reduce labor costs just as it reduces fuel costs. Fewer bus operator hours will be necessary to meet the passenger demand. In addition, the supervision and management of daily transit operations will be more efficient and require fewer employees. The on-time performance and vehicle capacity can be monitored from a central location, with corrective action being possible immediately. The number of street supervisors and line managers needed is reduced.
“Right-Size” Your Fleet
The NextBus system will also enable you to ‘right-size’ your transit fleet and ensure that you purchase the correct number of vehicles without unnecessary redundancy. Automatic passenger counters will provide passenger boardings and alightings at a per stop level. Fare-box data is typically aggregated over the entire route and the entire day. Even fare-boxes integrated with the vehicle’s AVL system only tell you where the passengers are boarding. APC systems are needed to get the complete picture.
Reduce Risky and Potentially Expensive Bus Operator Performance
Bus operator performance monitoring can be a difficult, time consuming, and labor intensive task. Typically, agencies become aware of problems after the fact if a customer complains or if a street supervisor is in the right place at the right time. Poor operator performance can lead to costly accidents and public relations nightmares.
Why is this important? It is important because poor driving increases the likelihood of accidents that can dramatically affect a transit agency’s financial well-being. The NextBus system will enable agency management to respond quickly to problem operators before they cause a costly accident.
Reduce Transit Planning Costs
Traditional transit route planning involves numerous assumptions and a great deal of labor. It is impossible to survey the entire population of transit riders and manual statistical sampling requires a large human resources commitment and cost.
The NextBus system eliminates the need for this army of surveyors and provides instant error-free data. You can run reports to review AVL and APC data quickly, and this data can be downloaded into statistical analysis software. Transit planning decisions can be made quickly based on an accurate understanding of the situation on the street.

The Bottom-Line is a Better Bottom-Line

The NextBus system is more than just arrival predictions for passengers. It is a comprehensive transit management tool that allows agencies to improve service efficiency and customer service while reducing costs. It provides a cost effective, win-win situation for everyone involved.

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