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Unit 6: your task

Unit 6: your task

by Deleted user -
Number of replies: 4

Identify the financial scheme based to fund the transport system in your city.

  • Which percentage of the incomes are related to the fare?  
  • Are there subsidies to cover part of the costs? 
  • Is it legally possible to receive funding from other sources such as crossed subsidies? 
  • Are there congestion charging policies in the city which could fund the public transport system?
  • If the previous question present a “No” for an answer, how prepared is the city to start discussions around different types of funding for public transportation in order to improve quality of service so that it doesn’t affect low income families?

Please post your response in the News forum below.

In reply to Deleted user

Re: Unit 6: your task

by Deleted user -

Identify the financial scheme based to fund the transport system in your city.

  • Which percentage of the incomes are related to the fare?  

Our transport has big subsidies because they are loss making services(especially TRAM)

Here you have BUS (public enterprise to bus transport) budget to 2015

Here you have TRAM (public enterprise to tram transport) budget to 2015

80 million eur with 50 million to pay salary and 30 to the financial and other costs.in BUS

20 million income with more than 30 million costs... loss making even with help of the island council

They received subsidies of Cabildo (Insular Council) and the pay of services from some ot the local Council by the local use of bus fleet in their village routes. Tram is a mix pub-private business heavy financial costs because of the build and begining of activity.(They are about to receive 36 million eur to upgrade line 2)

  • Are there subsidies to cover part of the costs? & Is it legally possible to receive funding from other sources such as crossed subsidies? 

Canary Islands Transpor Funds to Tenerife Islands (about 9 million eur) 

Transport system cover a part of the cost with fare, a part with year anual national subsidies income but the council has to justify to Canary and Spanish Government because of the amount of the help received a sustainable mobilty complete developed plan. The possibilitie to receive more funds is associated to this kind of justify and special income by develop of the lines like the new TRAM line 2 stations (with EU funds we talk after) About 36 

  • Are there congestion charging policies in the city which could fund the public transport system?

No. Now its begining to be developed the ECO taxes here in Spain as Madrid and other cities are beginning to have restrictions because of the level of nitrogen gas toxics. Its possible we see this kind of taxes after the Dec 20th voting in Spain. Some of the politician talk about economy taxes associated to pollution. And eco mobility is in develop just now.

Now we only pay a more expensive tax by the tax use of private vehicle every year (about 100-200 eur tax by having a car and the use of roads in general)  but this taxes are not payroll by entering cities. Just a tax by having a car. The private owners of a ECO car (electric and so...) pay about 75% discount in some cities. The owners of 4x4 big cc motor or 200cv cars pay MORE than a little 50cv car.

BUT the taxes are not necessarily used to cover the needs of platforms to the transport system. For example new TRAM extension will be cover by the EU FEDER funds.

  • If the previous question present a “No” for an answer, how prepared is the city to start discussions around different types of funding for public transportation in order to improve quality of service so that it doesn’t affect low income families?

Now the Island Council says "not able to pay fare to all low income families" before crisis where about 100% fare cover... now is about 70% but there exists an effort in subsidies to fare for students, athlete, elder and low income as said before.


In reply to Deleted user

Re: Unit 6: your task

by Deleted user -

Identify the financial scheme based to fund the transport system in your city.


Which percentage of the incomes are related to the fare?  

I am not aware of the figures and I was not able to find any information on this. According to tome articles I have read in the past I believe that less than half of the income was related to the fare. Sadly, I cannot confirm this information.


Are there subsidies to cover part of the costs? 

Yes, part of the government annual budget for Portugal is specific for subsidizing public transportation operation and infrastructure.


Is it legally possible to receive funding from other sources such as crossed subsidies? 

Municipalities can create their own taxes in order to subsidize public transport operating in the area. Car-parking exploration and advertising rights can also be used as crossed subsidies.


Are there congestion charging policies in the city which could fund the public transport system?

There are still no congestion charging policies in Lisbon but is a subject under discussion from some time ago.


If the previous question present a “No” for an answer, how prepared is the city to start discussions around different types of funding for public transportation in order to improve quality of service so that it doesn’t affect low income families?

I may say that the city is half prepared. Many people still do not consider that heavier taxation on private car usage and parking should be applied, especially if this means better public transportation operation and infrastructure. 

Low income families (as well as students, the elderly, and others) already have subsidies for PT but they could benefit of a better service, especially those living further away from the city center.


In reply to Deleted user

Re: Unit 6: your task

by Deleted user -

1- Which percentage of the incomes are related to the fare? 


Among the big cities of the world, the bus fare in the city of Sao Paulo is the most representative in relation to the income of the worker who uses public transportation to get to and from work. Per month, 17.7% of the income of an inhabitant of the city of Sao Paulo that receives a minimum wage is intended only for public transport. In Paris the ratio is 4.45%, London is 5.37% in New York is 7.93, in Mexico City is 10.11%, in Lisbon is 8.45, for example.

Although the tariff rate is cheaper in Sao Paulo than in many other cities, the low value of the minimum wage causes a fifth of the income is spent just on the way to work.

In New York a job spends about $ 100 in commuting to work in a month, however, this represents only 8% of your income if he receives only a minimum wage.

2- Are there subsidies to cover part of the costs?

Yes, part of the state budget and the Sao Paulo municipality are to subsidize transportation.

3- Is it legally possible to receive funding from other sources such as crossed subsidies?

Yes, like the creation of tariffs on the use of public space by private vehicles, such as parking areas and allocation of shares of the taxes paid on the acquisition and use of individual vehicles for investment in urban mobility.

4- Are there congestion charging policies in the city which could fund the public transport system? 


Currently do not exist in Sao Paulo charging congestion charge, but it is a very controversial issue and has been discussed in various political mandates.

5- If the previous question present a “No” for an answer, how prepared is the city to start discussions around different types of funding for public transportation in order to improve quality of service so that it doesn’t affect low income families? 


The city even offers some discussions on the different types of funding for public transport, but some issues are very controversial as the issue of congestion charge. It is subject including political. Those who use the car are against the fee, on the other hand the government does not assume the adoption fee, because if you do, you will surely lose many votes. The population does not believe that the rate will finance improvements in public transport, because many other fees, not improve some sectors whose purpose was to provide improvements, such as in health and education.

There is already allowance paid by the city regarding the gratuities of the elderly and students, among others. There is also the Bilhete Único grant that enables up to four trips within a period of 3 hours, paying the value of just one pass, for city buses in the city of Sao Paulo. This favors the poor people who live far away from the center, for example. To make a modal shift to the subway or the train, you will pay a difference between the rates in the period of up to two hours.


In reply to Deleted user

Re: Unit 6: your task

by Deleted user -

Sorry, I don't know about above questions asked and could not find much information on this. 

The government of Nepal mentioned that government-owned vehicles should mix 10 per cent ethanol on petroleum products from next fiscal on their next year financial budget plan for government vehicle. There is no such information on internet made by any government or non-government agencies on subsiding public transportation. Though there are transport plans of the government over the years to promote the use of environment friendly and battery operated vehicles but not much else has been done.

The government in an effort to promote electric and hybrid vehicles, the customs duty of electric and hybrid vehicles ha halved by 50%.

There are no any congestion charging policies to my information. 

I think my city is not prepared so much to start these types of discussions. Though the citizens and some of the government understand the need for improving the quality of transport services in the family but the implementation and the whole government process for the implementation of the project is hard. The government here, don't take a pro-active role for this and so, the private sector (syndicates) flourished overall Kathmandu (as well as in whole Nepal). The privatization of public transport in Nepal was meant to bring more improved service to public; however it got more and more deteriorated with time as a result of syndicate system and inefficiency of government.