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The impact of a financial constraint on the spatial structure of public transport services

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Abstract

Using a single line model, it has been shown recently that the presence of a stringent financial constraint induces a less than optimal bus frequency and larger than optimal bus size. This occurs because the constraint induces a reduction of the importance of users’ costs (their time); in the extreme, users’ costs disappear from the design problem. In this paper we show that such a constraint also has an impact on the spatial structure of transit lines. This is done departing from the single line model using an illustrative urban network that could be served either with direct services (no transfers) or with corridors (transfers are needed). First, the optimal structure of lines is investigated along with frequencies and vehicle sizes when the full costs for users and operators are minimized (unconstrained case); the optimal lines structure is shown to depend upon the patronage level, the values of time and the cost of providing bus capacity. Then the same problem is solved for the extreme case of a stringent financial constraint, in which case users’ costs have relatively little or no effect in determining the solution; in this case the preferred outcome would be direct services under all circumstances, with lower frequencies and larger bus sizes. The impact of the financial constraint on the spatial structure of transit lines is shown to be caused by the reduction in cycle time under direct services; the introduction of users’ costs in the objective function makes waiting times reverse this result under some circumstances.

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Notes

  1. A cost analysis is aimed at finding the best combination of resources (inputs) for a given output (patronage). In the case of public transport the challenge is to find the best combination of vehicles and routes for a given flow pattern. At a later stage this supply analysis should be combined with a demand model where the flow pattern is sensitive to the resulting service levels. This is similar to the usual supply–demand analysis, but going beyond prices to include users’ time as well.

  2. The issue of service structure has also been analyzed by Jara-Díaz and Basso (2003) in a three nodes network in relation with economies of spatial scope, showing that for the case of equal flows between each of the six origin–destination pairs and equal distances, direct services are less costly for an operator than a hub-and-spoke structure. This type of discussion resembles that in air transport regarding the use of hubs (inducing transfers) versus fully connected networks (direct services; no transfers needed) for profit maximizing and socially optimal airlines. For example, Hendricks et al. (1995) show that an unregulated airline might choose either structure depending on various elements including demand level. Using a simple network structure Brueckner (2004) shows that a monopolistic airline would be biased in favor of the hub-and-spoke structure and would choose lower than optimal frequencies and aircraft size. Pels et al. (2000) conclude that “a fully connected network will be more profitable if the level of demand is relatively high, fixed costs are low and economies of density are low”.

  3. Time in motion T includes time for acceleration/deceleration, time to open and close the doors and any other component of the cycle time different from the time at stop for boarding and alighting purposes.

  4. For the numerical example in Appendix 1, the level of Y that makes the total cost of both structures equal using the approximation behind Eq. (20) is 13.8% larger than the exact value when Eq. (19) is used.

  5. It is worth noting that besides the additional waiting time, transfers produce additional walking time and disruption of the trip. Neither walking time nor transfer penalties are considered in our model.

  6. This coincides with the result obtained by Jara-Díaz and Basso (2003) for their simplest case (equal distances, equal flows) in a three nodes network.

  7. This resembles the results obtained in the air transport literature for a socially optimal service structure that depends on demand (Brueckner, 2004), if one associates hub and spoke with corridors (both have transfers) and fully connected with direct lines (no transfers).

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Acknowledgments

We thank funding by Fondecyt, Grant 1120316, and the Institute for Complex Engineering Systems, Grants ICM:P-05-004-F and CONICYT:FBO16. The referees’ comments motivated an improved presentation of the model. Remaining errors are, of course, ours.

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Correspondence to Sergio R. Jara-Díaz.

Appendices

Appendix 1. Numerical comparison of total cost from Eq. (19)

See Tables 2 and 3

Table 2 Values of the parameters used in the numerical evaluation
Table 3 Numerical comparison of total cost without and with approximation

Total cost is equal for direct and corridor structures for Y = 6,536 passengers per hour. The third term of Eq. (19) is equal for both structures so it cancels out. The first term is never larger than 3.1 % of the second term for both structures. When only this latter is used, the difference in cost becomes nil for Y = 7,439 pax/h, 13.8 % larger than the exact value.

Appendix 2. Optimal waiting and in-vehicle times

Replacing optimal frequency from Eq. (15) into the expressions for the waiting time (10) and in-vehicle time (14) yields.

$$ t_{w}^{ * } = \frac{{\varepsilon \left( {N + 2 + 4\tau } \right)\sqrt {c_{0} T_{0} } }}{{\sqrt {t\left[ {3c_{1} \left( {1 + \tau } \right) + P_{v} \left( {\frac{9}{8} + \frac{\tau }{2}(2N - 1)(1 - 2\tau )} \right)} \right] + \frac{{P_{w} \varepsilon }}{Y}\left( {N + 2 + 4\tau } \right)} }} $$
(A2.1)
$$ t_{v}^{ * } = \frac{3}{4}T_{0} Y + \frac{{tY\left[ {\frac{9}{8} + \frac{\tau }{2}\left( {2N - 1} \right)\left( {1 - 2\tau } \right)} \right]\sqrt {c_{0} T_{0} } }}{{\sqrt {t\left[ {3c_{1} \left( {1 + \tau } \right) + P_{v} \left( {\frac{9}{8} + \frac{\tau }{2}\left( {2N - 1} \right)\left( {1 - 2\tau } \right)} \right)} \right] + \frac{{P_{w} \varepsilon }}{Y}\left[ {N + 2 + 4\tau )} \right]} }} $$
(A2.2)

The waiting times for each structure are obtained replacing (N, τ) by (2, 1/4) for corridors and (4, 0) for direct lines. This yield that total waiting time for corridors is lower than for direct lines when

$$ 75\,tc_{1} + 28.125\,tP_{v} + 150\frac{{P_{w} \varepsilon }}{Y} < 135\,tc_{1} + 47.25\,tP_{v} + 180\frac{{P_{w} \varepsilon }}{Y} $$
(A2.3)

which is always true. Analogously, in-vehicle time for corridors is larger than for direct lines when (A2.4) is valid, which is always true.

$$ 147\,tc_{1} + 55.125\,tP_{v} + 294\frac{{P_{w} \varepsilon }}{Y} > 135\,tc_{1} + 47.25\,tP_{v} + 180\frac{{P_{w} \varepsilon }}{Y} $$
(A2.4)

Appendix 3

See Table 4

Table 4 Differences in total cost components as a function of Y

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Jara-Díaz, S.R., Gschwender, A. & Ortega, M. The impact of a financial constraint on the spatial structure of public transport services. Transportation 41, 21–36 (2014). https://doi.org/10.1007/s11116-013-9461-x

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