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August 07, 2008
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APTA > Services & Programs > International Transit > International Focus  

World Bank Facilitates APTA's International Outreach Program

Several recent and future partnership initiatives have resulted from the shared vision of APTA and the Transport Sector of the World Bank in promoting public transit to achieve sustainable development.

Intensified cooperation started last fall, when APTA First Vice Chair John Bartosiewicz discussed the expanding U.S. commitment to public transit at a World Bank-sponsored conference in Berlin, Germany, and continued with APTA's participation in the World Bank's "Transit Week" at the bank's Washington headquarters in April. As a result, APTA's Annual Meeting, October 10 to 13 in Orlando, Fla., will include international sessions sponsored by the World Bank, bank outreach to Latin American participants, and the support of simultaneous Spanish conference translations by the bank.

Both APTA and the World Bank are seeking to promote policies and actions to cope with congestion and pollution, improve urban livability, and provide access to jobs for the disadvantaged along with sustainable economic development. While the bank targets its infrastructure loan and advisory services exclusively to the developing southern part of the world, it has helped to create and publicize strategic concepts and actions that are gaining increasing acceptance in the industrial and service economies of the northern tier of countries, including the U.S.

These techniques include build/operate/transfer models involving the private sector in infrastructure provision and Bus Rapid Transit systems pioneered in Brazilian cities, such as Curitiba, that are now being pursued in the U.S.

It is instructive to note how closely the bank's urban transport analysis and its vision for the future of transit in the developing part of the world dovetail with thinking in this country, except for the exacerbating factors of poverty and overcrowding that add an extra note of urgency to the bank's programs.

Following are extracts from the bank's current urban transport policy analysis and priority statement, which can be found at the World Bank's home page, http://www.worldbank.org/transport, or via a link from the APTA web site, http://www.apta.com:

"The urban sector in most developing countries accounts for at least 50 percent of the gross national product and in some countries over 70 percent. Cities in developing countries often devote 15 to 25 percent of their annual expenditures to their transport systems, and sometimes much more. In developing countries, it is common to find that 5 percent to 10 percent of urban household income is spent on transport. In some cases, the figure is 15 percent or more.

"Cities are major engines of growth in most developing countries, and urban populations are expanding at a rate of more than 6 percent annually, doubling in size in less than 12 years. Urban vehicle ownership and usage is growing even faster than the urban population. Vehicle ownership growth rates of 15 to 20 percent per year in developing countries are not uncommon. This has been largely caused by growing per capita incomes in urban areas. Ownership and usage of vehicles therefore is growing much faster than the ability of developing (and even industrial) countries to provide road space and alternative means of coping with the problem. Severe traffic congestion and its adverse side effects on the urban economy, environment, and society are being felt in many cities.

"The growing reliance on private vehicles has resulted in a substantial decline in the share of total trips being provided by urban public transport systems in many cities. In some cases, there has been an absolute decline in urban public transport patronage usage and service levels. Similarly, the travel environment for pedestrians and people-powered vehicles has rapidly declined. This trend is particularly unfavorable for the urban poor as they are typically captive riders and often dependent on public transit for access to employment.

"Recognizing the inability of the public sector to provide adequate finance for urban transport infrastructure and, in many cases, the relative inefficiency of the public sector in providing urban transport services, the public sector is increasingly relying on the private sector to provide these facilities and services. It is estimated that at least 80 percent of all urban bus services provided around the world are now privately owned and operated. Increasingly cities are arranging concessions or other arrangements for the private provision of urban transport infrastructure. In short, cities are moving from providers of transport infrastructure and services to facilitators.

"There is a growing recognition that cities cannot build enough road capacity, especially in city centers, to accommodate the growth in travel demand by means of the private vehicle. While recognizing that expansion of road networks will be required, especially in rapidly growing cities, more reliance is being placed on (a) the intensive management of travel demand, (b) traffic management techniques to increase the practical capacity of available road space, and (c) improved urban public transport systems.

"The relatively recent development of improved "intelligent" technologies (electronic toll collection systems, centralized traffic control systems, automatic vehicle location systems for public transport systems, and similar techniques) has resulted in many applications being rapidly deployed in many cities as a means of better utilizing urban transport. The costs of these technologies are rapidly declining while their practical applications improve. This presents an opportunity for those developing countries with adequate financial and staff resources to "leapfrog" forward in applying these technologies to urban transport problems.

"Transport planners and economists have been advocating for years the logic of charging road users for the use of scarce road space, primarily as a means of maximizing the use of urban roads during congested periods, and as a means of securing additional funds for transport investments. These proposals have been repeatedly rejected due to their political unpopularity. Up to the present, they have been deployed in city centers only in Singapore and three Norwegian cities. With the introduction of improved electronic road pricing technologies, which has the potential of eliminating delays at toll facilities, and permits multiple means of payment with minimum inconvenience, the practical application of pricing as a urban demand management tool may be ready for improved acceptance and more widespread deployment. Experience has shown that public acceptance of pricing schemes can be substantially enhanced by earmarking the funds that are collected expressly for additional urban transport improvements.

"Public officials and the public have become much more aware of the adverse impacts or side effects of modern urban transport systems. In recent years there has been more attention placed on reducing the levels of mobile source pollution and accidents.

"With ownership of vehicles growing much faster than the ability of developing and industrial countries to provide road space, the increase in traffic volumes and road congestion has caused substantial adverse impacts, especially in the largest cities of developing countries. These impacts are expressed in several dimensions:

  • Business efficiency is adversely affected by traffic delays;
  • Slow moving traffic, combined with an ill-maintained stock of vehicles, is making the megacities in developing countries the most polluted in the world; in some large city centers road traffic accounts for 90 to 95 percent of health-threatening lead and carbon monoxide in the air and a major share of suspended particulate matter;
  • Sprawling land-consuming urban structures and deteriorating traffic conditions are making the journey to work, particularly for some of the very poor, excessively long and costly. Many and diverse measures are needed to address these problems, but the most critical of these are the introduction of economically efficient charges for infrastructure and services, and the development of competitive market structures within the sector.

"Most cities are unable to financially cope with the rapid increases in motorization and travel demand being experienced. Part of the problem is caused by the devolution of responsibilities from central governments to local governments without providing local governments with adequate funding either through satisfactory inter-governmental transfer arrangements or the authority to raise additional tax revenues. Consequently traffic and general transportation conditions are declining in many, if not most, major cities of developing countries. Beyond making wise investments in transport infrastructure and services, improved methods and approaches to financing these investments must be deployed. An increased emphasis on charging transport users, especially private vehicle users who are the least efficient users of transport networks, for the costs of the facilities and services being provided to them at public expense is one solution. The other will be an increased reliance on private sector to build, operate, and finance urban transport infrastructure and services.

"Concomitant with the shift of selected public sector responsibilities in the provision of urban transport services and facilities to the private sector, is the increased importance of appropriate regulation and supporting legislation to facilitate this shift. In many cases, there is inadequate national legislation in place to protect either public or private sector interests, or alternatively, legislation is too restrictive and inhibits private sector activity. In other cases, the regulatory authority is too centralized at the national level giving too little authority to local governmental bodies where urban transit services are provided. (Examples include central government mandated exemptions of large groups of transit riders and/or restrictions on fares that may be charged.) Due in part to a history of strong central controls, local governments typically have not developed adequate bodies to regulate urban transport at the local level. In response to these shortcomings, governments will need to comprehensively review their relevant legislation and regulatory frameworks and concentrate on developing stronger local governmental capabilities in urban transport regulation.

"Urban institutions are often ill-equipped to deal with the sheer increase in traffic or to adopt advances in technology that would help them overcome problems. It is rare to find single agencies with the comprehensive authority needed to deal with the large range of transport problems and to coordinate overall solutions. Instead, authority is usually divided among several agencies, each dealing with different elements of the transportation problem. The boundaries of these agencies' authority often tend to be indistinct; the result is a duplication of responsibility, an undermining of accountability, and resistance to change. Beyond fragmentation of responsibilities within a single local jurisdiction, fragmentation of responsibilities and lack of coordination between jurisdictions, particularly in large urban conglomerations governed by many local governmental bodies, is a particularly vexing problem. The fragmentation problem is particularly common with regard to the traffic management function within local jurisdictions and transportation planning between local jurisdictions. These institutional problems are often exacerbated by the lack of sufficient resources, particularly suitably trained staff. Thus, considerable attention must be paid to institutional reorganization and training so that transportation planning, traffic management, and traffic enforcement can be properly planned, designed, implemented, and enforced."

For More Information

If the World Bank's closely argued analysis whets your appetite for more, check out the web site listed in the opening section. The bank-sponsored sessions at the APTA Annual Meeting will provide an inside look at major transit infrastructure projects in Latin America supported by the bank and should be of special interest to APTA's Business Members.

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