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Bad News for Auto Makers but Good News for Sustainable Transportation

Although Ad Age is a surprising source for public transit information, their recent article about a transformative transportation trend highlighted research that has powerful implications for the future of buses, trains, and automobiles One quick snippet: In 1978, 75% of American 17-year-olds had drivers licenses. 30 years later fewer than half were licensed to drive.

As Ad Age indicates, there is a sea change in behavior among young people that suggests fewer cars on the road and more bus and train riders in the years to come:

The automobile, once a rite of passage for American youth, is becoming less relevant to a growing number of people under 30. And that could have broad implications for marketers in industries far beyond insurance, gasoline and retail.

In fact, the trend extends to overall driving behavior among those 30 or younger who accounted for just 13.7% of miles driven in 2009 versus 20.8% in 1995–that’s an astonishing drop of 34%.

The phenomenon apparently springs from the new digital culture in which young people are so attached to smart phones and other electronic devices that they will readily swap the freedom of car driving for the luxury of interacting with their smart phones, games or more recently, their iPads.

In addition, young people value their time and find that they can work during a public transit commute but not in their cars on the freeway. And, there is also a fair degree of sensitivity to issues of transportation sustainability.

Fewer Drivers Mean More Trains May Be on the Way

Today, only 30 of the 100 metropolitan areas that account for 75% of American population have trains, but, pressure is intensifying to build more.  For example, Denver, Charlotte, N.C., and Portland, Ore., are developing systems while Cincinnati is debating the development of a streetcar system that would link its downtown with uptown neighborhoods increasingly popular with young professionals.

The bottom line: The shift away from young folks’ passion for automobiles represents a long-term trend and not a blip on the radar screen. It suggests that there will be a greater aggregation of population in urban centers and a concomitant need for more reliable public transportation.

More than $12,000/year in San Francisco and $9,000 in Washington, DC

Public transportation riders can save on average $9,242 annually based on the January 11, 2010 national average gas price and the national unreserved monthly parking rate.  Of course, they also miss traffic jams—and when NextBus is available as in San Francisco and Washington, DC, they can travel quickly and reliably, too.

Compared to last year at this time, the average cost per gallon of gas was $1.79 which is nearly $1 less than the current price of gas at $2.75 per gallon.  This increase in cost equates to an additional $600 in savings per year for transit commuters as compared to last year’s savings amount at this same time.

“The Transit Savings Report” released monthly by the American Public Transportation Association (APTA) calculates the average annual and monthly savings for public transit users.  The report examines how an individual in a two-person household can save money by taking public transportation and living with one less car.

Transit riders can save on average $770 per month.  The savings amount is based on the cost of the national averages for parking and driving, as well as the January 11 national average gas price of $2.75 per gallon for self-serve regular gasoline as reported by AAA.

Taking public transportation provides a safe and affordable way for individuals and families to cut costs, according to APTA.  In addition, local public transit offers a travel option that has an immediate positive impact in reducing an individual’s overall carbon footprint while helping reduce America’s dependence on foreign oil.

The national average for a monthly unreserved parking space in a downtown business district is $154.23, according to the 2009 Colliers International Parking Rate Study.  Over the course of a year, parking costs for a vehicle can amount to an average of $1,850.

The top 20 cities with the highest transit ridership are ranked in order of their transit savings based on the purchase of a monthly public transit pass and factoring in local gas prices for January 11, 2010 and the local monthly unreserved parking rate.*

 

Top Twenty Cities – Transit Savings Report

	City	Monthly Savings	Annual Savings
1	New York	$ 1,147	$ 13,765
2	Boston	$ 1,030	$ 12,362
3	San Francisco	$ 1,013	$ 12,156
4	Chicago	$  946	$ 11,357
5	Seattle	$ 932	$ 11,185
6	Philadelphia	$ 927	$ 11,121
7	Honolulu	$ 887	$ 10,639
8	Los Angeles	$ 838	$ 10,052
9	San Diego	$ 824	$ 9,894
10	Minneapolis	$ 824	$ 9,884
11	Cleveland	$ 803	$ 9,639
12	Portland	$ 798	$  9,581
13	Denver	$ 795	$ 9,539
14	Baltimore	$ 782	$ 9,383
15	Miami	$ 752	$ 9,022
16	Washington, DC	$ 751	$ 9,015
17	Dallas	$730	$ 8,756
18	Atlanta	$722	$ 8,658
19	Las Vegas	$716	$ 8,591
20	Pittsburgh	$ 680	$ 8,162

 *Based on gasoline prices as reported by AAA on 1/11/10.

Investment in Real-time Passenger Information Systems Can Maintain Service Quality

2009 has seen dramatic cuts in funding for public transit systems across the United States. This comes at a time when Americans are opting increasingly for public transit as a sustainable and affordable alternative to private automobiles.  Fortunately, NextBus can provide affordable solutions that deliver tangible operational benefits in these challenging times.

As Transportation for America recently described the dramatic increase in demand:

Americans took nearly 10.7 billion trips on public transportation in 2008, a four percent increase over 2007 and the highest level since 1956, according to the American Public Transportation Association. Public transportation use has increased 38 percent since 1995 — nearly triple the growth rate of the population of the United States. Contrast this with a 3.6 percent drop in vehicle-miles traveled in 2008 according to data from the U.S. Department of Transportation.

Public transportation advocates like Transportation for America work to persuade Congress of the need for adequate, predictable funding. Director, James Corless emphasized: “As employers and commuters everywhere know only too well, public transportation is an essential service that is critical to our economy.”

And, yet, cost cuts are making it difficult to meet this increased demand with existing processes and technology.

Affordable Options from NextBus to Maximize Operational Efficiencies in Spite of Cost Cuts

Because the realities of strained resources that face public transit executives will like persist for the medium term, they can mitigate the negative effects by implementing advanced passenger information technologies.

1. Run an efficient, on-time system. A myriad of problems confront transit executives as they work to achieve on-time results both consistently and cost effectively. Intelligent transportation technologies from NextBus empower executives by showing them what is working well and what is working poorly for every vehicle and every route. In addition,
   easy to generate reports point the way to facilitating changes that improve on-time performance on all routes.
2. Provide a highly predictable route system. An efficient transit system requires a high degree of predictability. It is extremely difficult to provide that predictability without AVL
   & APC systems that provide continuous updates—and takes into consideration random factors such as vehicle breakdowns, traffic jams, and unexpected emergencies. NextBus was designed from the ground up to provide accurate arrival times across a variety of routes.
3. Gather highly accurate ridership and other operations performance data. Optimal transit efficiency depends not only on getting buses and trains to each stop in time, but also on the balancing of passenger loads to prevent both overcrowding and empty vehicles. Our passenger counting capabilities smooth passenger demand spikes throughout the day and reduce demand for additional vehicles during peak periods.
4. Cope with high cost of fuel. Realtime passenger information enables you to minimize the
   use of expensive fuel without compromising service levels. You can make a broad range of operational changes from major to minor, all of which improve efficiencies. Thus, you can serve more passengers and more routes without needing to add more buses.

Effective Use of  NextBus Technology Can Overcome Cost and Passenger Pressure in Major Transit Systems.

The financial challenges that face our municipalities are unlikely to disappear anytime soon. Nor is the increased use of public transportation.

NextBus real-time passenger information systems are enabling more than 65 municipal, university, and corporate transit systems to operate at peak efficiency in spite of tough financial and rider pressure.

Advice on How to Pursue Those Federal Transit Dollars

The Federal Highway Administration (FHWA) and Federal Transit Administration have issued guidance to assist state and local agencies in preparing for implementation of the stimulus bill.  The guidance includes Q&As and actions that can be taken to expedite economic recovery projects.  According to FHWA, projects such as traffic signal upgrades, traffic monitoring and weigh-in-motion equipment, ramp metering, dynamic message signs, road weather information systems, and similar operational strategies can be included as part of larger projects or as standalone projects. 

To download Q&A’s from the FHWA that should provide answers to many of the questions you’ve certainly been wondering about, click on the link below:

Excellent Whitepaper Just Released on Intelligent Transportation Investments

The ITS Joint Program Office has also announced the availability of a white paper that informs public agencies about investment opportunities in ITS and related operational strategies.

The white paper, “Investment Opportunities for Managing Transportation Performance through Technology,” is now available for your information and use. This white paper was prepared by the U.S. Department of Transportation (U.S. DOT) to inform public agencies about investment opportunities for the economic recovery and stimulus package being developed under the Obama administration. 

The paper contains information about types of projects that support the operation of the transportation system, such as intelligent transportation systems (ITS). It is divided into three sections:

• Summary – .PDF

• Background – Paragraphs on each technology option mentioned – .PDF

• Appendix – One-page summaries of the technology with benefits information – .PDF

Toronto Transit Commission $5.2 Million Pilot Program Adds Leading Edge Real-time Passenger Information

The Toronto Transit Commission(TTC) announced the launch of its next vehicle arrival notification system on December 15, 2008. 

The TTC moves 465 million people every year – about 1.6 million riders every weekday. The TTC is the third largest public transit system in North America servicing some 4.5 million people in the Greater Toronto Area, with a network of subways, streetcars, buses, and a specialized service, Wheel-Trans, for people who require accessible transportation. The TTC is committed to meeting the growing needs of the region with subway and light rail expansion, carrying an additional 175 million riders by 2021.

Pilot Project to Serve 510 Spadina Streetcar Route Beginning in 2009

TTC Chair, Adam Giambrone, launched the pilot project at the Spadina Station streetcar platform. Customers will be able to find out when their next bus or streetcar will arrive by information display on screens in subway stations or at select TTC stops.

The pilot project will begin with the 510 Spadina route. Display screens are installed at Spadina and Union Stations. Additional screens will be installed at additional subway stations and select on-street stops in concert with the City of Toronto’s Street Furniture Program.

The TTC will be implementing many other new features to improve and enhance customer communications and the TTC experience. One of the most anticipated features in the works is the web-based trip planning application. Scheduled to be online this summer, it will give TTC users a self-serve means of planning their transit trips using routing information, timing points and walking distances.

Work to allow customers to be able to use SMS Text for information about next vehicle arrival information on all TTC surface routes begins in 2009. The final project roll-out will include a unique identifier for each vehicle stop to allow patrons to obtain specific stop information via wireless technologies (i.e. Internet and/or SMS text messaging).

  NextBus Technology Will Enable Numerous Rider Benefits

• The next vehicle arrival pilot project is designed to improve and enhance customer communications and the TTC experience. 
• TTC customers will be able to find out when their next bus or streetcar will arrive, either by flat screen monitors in subway stations or through LED screens at select TTC stops.
• Customers will receive real-time, reliable and relevant information about when the next vehicle is due to arrive. 
• The system uses Global Positioning System software.  All streetcars will be retrofitted with this prior to the end of 2008. The retrofit for buses will commence in 2009. 
• Work to allow customers to be able to use SMS Text for information about next vehicle arrival information on all TTC surface routes begins in 2009. The final project roll-out will include a unique identifier for each vehicle stop to allow customers to obtain specific stop information via wireless technologies (i.e. Internet, Smart Phones, and/or SMS text messaging).

And, They Can Prove it to Themselves!

Riders can save enough to pay for their annual food budget–and then some!

Figures from APTA and a helpful calculator prove that public transit is still a bargain even with a late 2008 drop in fuel prices.

Even though the price of gas has continued to drop public transportation riders still enjoy a significant economic savings.  A person can achieve an average annual savings of $8,416 per year by taking public transportation instead of driving, based on today’s gas prices and the average unreserved parking rate, according to the American Public Transportation Association’s (APTA) “Transit Savings Report.”  The report is a monthly analysis that shows the average annual savings represents almost a third more than the average amount a household pays for food in a year, according to the Food Institute ($6,111).

Public Transit K.O.’s Cars with Killer Cost Savings According to APTA

City	Monthly Savings	Annual Savings
New York	$1,041	$12,492
Boston	$1,033	$12,396
San Francisco	$948	$11,376
Chicago	$865	$10,380
Philadelphia	$860	$10,320
Honolulu	$846	$10,152
Seattle	$844	$10,128
Washington, DC	$794	$9,528
Minneapolis	$758	$9,096

Your citizens can calculate their own savings with this great tool.

To get a more precise idea of how much money commuter would save by swapping their car for your bus or rail system, click on this link to the PublicTransit.org Calculator.  The image to the left shows a San Francisco Bay area commute with gas at $2/gallon.  In this hypothetical scenario, the commuter saves $5645/year vs. traveling by car. Even this commuter decides to go from a 2 car to a single car household, another $11,000 in savings ensue.

Our Director of Engineering Points the Way to the Future of Public Transportation

 

If your community is trying to lessen its dependence on automobiles to improve the collective quality of life, you may be able to adapt this insightful presentation that Mike Smith delivered at the “2008 Towards Carfree Cities” conference in Portland Oregon.

He emphasized that technology needs to be part of the public transit solution–with real-time information at the heart of 21st century bus and rail systems.

Enjoy and share Mike’s presentation below:

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.

Read more

What We’ve Learned Recently from Our Research about Your Top Challenges

In August 2008, NextBus conducted research among transit executives to determine their most important challenges. 

The five following issues were rated extremely important by more than 75% of respondents.  That is, they ranked these issues 8, 9 or 10 on a scale of 10 in terms of importance to them. 

The NextBus suite of products can go a long way toward tackling these issues and delivering affordable solutions.

Five Major Transit Management Issues Made Manageable with NextBus Solutions 

1. How to run an efficient, on-time system.  A myriad of problems confront transit executives as they work to achieve on-time results both consistently and cost effectively.  AVL & APC technologies from NextBus empower executives by showing them what is working well and what is working poorly for every vehicle and every route.  In addition, easy to generate reports point the way to facilitating changes that can dramatically improve on-time performance for every single route.
2. How to provide a highly predictable route system.  It is impossible to run an efficient transit system without a high degree of predictability.  Moreover, it is extremely difficult to provide that predictability without AVL & APC systems that provide continuous updates–and takes into consideration random factors such as vehicle breakdowns, traffic jams, and unexpected Emergencies.  NextBus was designed from the ground up to provide accurate arrival times across a variety of routes.  Of course, this high degree of predictability benefits both transit executives and their riders.
3. How to gather highly accurate ridership and other operations performance data.  Optimal transit efficiency depends not only on getting buses and trains to each stop in time, but also on the balancing of passenger loads to prevent both overcrowding and empty vehicles.  You can leverage our passenger counting capabilities so that you can even out bus loading at the appropriate time of day on the appropriate route.
4. How to cope with significantly increased cost of fuel.  Real-time passenger information enables you to minimize the use of expensive fuel without compromising perceived service levels.  You can make a broad range of operational changes from major to minor, all of which improve efficiencies. Thus, you can serve more passengers and more routes without needing to add more buses. Because your riders receive real-time arrival information, they can make their travel plans efficiently even when buses run slightly less often.
5. How to increase ridership.  Many more passengers would take advantage of public transit if they believed it to be both efficient and reliable.  Real-time passenger information available anytime and anywhere delivers on both counts.  Because they know exactly when the NextBus will arrive-and can even receive reminder alerts in advance of that arrival–they can make riding public transit more attractive than driving private automobiles.

The bottom-line: By deploying NextBus systems, you can both simplify and improve your transit operations.  Complex decisions become much easier.

New Service to Improve Transportation Experience for Students, Faculty & Staff

The University of Baltimore shuttle service, operated by Capital Executive Transportation, is already well organized.  The university objective is to take it to the next level by making it as easy as possible for its commuter population to get where they need to go on campus on time.

They provide convenient, free shuttle service that runs in a continuous loop around campus, stopping at each of the designated shuttle stops that are shown on the campus parking map.

Although there isn’t a fixed schedule, the estimated average wait time between shuttle buses is 10 minutes which varies with traffic and road conditions. The shuttle service is also equipped to provide transportation for disabled community members.  At all times, one van in service is designed to accommodate those disabled riders.  In addition, the university runs a shuttle to and from Coppin State University. 

Once the NextBus system is installed, students and staff will be able to plan precisely on the arrival of the next bus–and to get the information on campus LED signs, on their computer, and on their cell phone, PDA or iPhone.  They can even set alarms to remind them to check for the exact arrival time of the shuttle van they want to board.

Based on more than 50 installations, the University can expect both ridership and rider satisfaction to increase soon after the NextBus system is up and running.

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