PUBLIC TRANSPORT COSTS IN ADELAIDE: ASSESSMENT AND IMPLICATIONS

The paper describes the recent derivation of the total long term cost of providing public transport in Adelaide, and of unit costs for each mode (including individual train lines, the tram line, the O-Bahn, and on-street bus services). Data from a recent revaluation of public transport assets, and recurrent costs in 1997/98, was used in the analysis. The analysis shows that the cost of carrying passengers by train in Adelaide is high. This occurs primarily because of low levels of patronage. By contrast, the cost of carrying passengers by O-Bahn is considerably lower. Moreover, the cost of the O-Bahn is the same as for on-street buses, with the cost of O-Bahn fixed infrastructure offset by lower operating costs. A comparison with similar cost data for 1985/86 shows that the technical efficiency of public transport in Adelaide has improved. However, service efficiency has declined, especially for bus. There appears to be scope for continuing improvement in the technical efficiency of public transport, and for gains in service efficiency. While other factors must necessarily be taken into account, costs cannot be ignored. The analysis suggests that there is a potentially greater role for the use of buses, in particular O-Bahn, in situations where passenger numbers are below the level needed to justify the use of rail services, and where funding is constrained. (a) For the covering entry of this conference, please see ITRD E200461.