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Stanislav Bozicnik University of Maribor Slovenia

Harmonisation of the P ublic T ransportation of S lovenia with the EU : A N eed for N ew F inancing and O rganisation S olutions ?. Stanislav Bozicnik University of Maribor Slovenia. Imprint – E u rope – NEC, Budapest 16-17 October 2003.

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Stanislav Bozicnik University of Maribor Slovenia

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  1. Harmonisation of the Public Transportation of Slovenia with the EU: ANeed for New Financing and Organisation Solutions ? Stanislav Bozicnik University of Maribor Slovenia Imprint – Europe – NEC, Budapest 16-17 October 2003

  2. 1. The European UnionTwo Basic Schools of the Transport Policy Debate: • “Continental philosophy”: transport is a device for achieving a range of policy objectives and as such should be heavily regulated and controlled • “Anglo-Saxon philosophy”: transport is a another sector of economy that should be provided as efficiently as possible in its own right • Reality: a combination of both (financing, organisation, risks, ownership)

  3. Source: MARETOPE

  4. The Three Different Layers of Organisation of PTServices: • STRATEGIC LEVEL: general objectives of public transport policy • TACTICAL LEVEL: defining the product and tariffs • OPERATIONAL LEVEL: operation of the network and cost control

  5. The Classical Types of Contracts Between Organising Authority and the Operator in the EU: Basic principles to be defined in the contracts: • Allocation of risks: • operating costs – (industrial risks) • risk on the commercial revenues (commercial risk) • The type of remuneration

  6. Basic types of the contracts: • Management contract: Remuneration is not related to the profits, but on other results (cost reduction, quality of service…) Annual remuneration = fixed sum + variable sum (variable sum depending on the quality of management) • Gross cost contract: Remuneration based on the costs • Bonus/penalty scheme according to the performance of the OP • The commercial risk is shared • Net cost contract:Industrial risk is borne by the OP, as well as mainly the commercial risk. Remuneration= revenues + fixed compensation(with or without adjustments). The commercial risk sharing depends upon fixed amount of remuneration and the real revenues.

  7. Three Level Territorial Organisation of PT • Commune (city) • Region • Federal (State) All three levels participate by setting the quality and quantity of the PT and participate by financing

  8. Integrated Public Transport System • Zones • One tickets for various modes • Unified tariff • Management by professional institutions (companies)

  9. 2. SLOVENIAGeneral Characteristics of the Present PublicTransportation System in Slovenia • No general law for regulation of the public transportation, (separate laws by modes). • Line ticket system, (line, carrier). • Public urban and public interurban road transport, are separated by law. • Concession forurban public transportation: public tender for a limited period of time, usually for ten years. • Licence for interurban public transport

  10. Railways: public passenger transport (within Slovenia), is defined as public good. Obligation of the state for low cost public transport service. • Public passenger transport by ships: free market conditions, (agreement with a competent community is necessary). • Air passenger transport: free market. Licence of the air carrier, from the competent state agency is required.

  11. Current Financing of the PT in Slovenia Various financing models: • Railway passenger transport (Inland): prices are controlled by the state. • Remuneration: based on passenger kilometres (difference between the costs of transport and revenues. • Total amount should not exceed the annual sum, planned in the state budget. • Railway passenger transport (International) and buss public passenger transport, air and sea PPT: • free market conditions. • Inter-urban public buss transport (Inland: since 1st of September 2001, • subvention : 13 SIT (0,06 EUR) per km, on registered lines. • Urban public passenger transport: Prices in accordance with the concession contract. • donation and/or subvention, of municipality and the state (School tickets, rolling stock investments etc.).

  12. “Regulated – Deregulated” Model of Public Transportation in Slovenia - possible optionStrategic Level • No final political decision about the strategic concept of the PT system of Slovenia yet • General orientation: • Integrated public transportation system, introduction of regions • Freemarketconditions as much as possible the use of public funds as much as necessary, (combination of the advantages of the regulated and deregulated model) • Take in-to consideration: • specific Slovenian conditions, experiences and possibilities and • Best practice in the EU

  13. Tactical Level • One ticket, unified tariff and zone system • Co-operation between the urban and inter-urban bus transport services • Optimal co-operation between the bus and railway public passenger services providers • The volume (and method of assignment) of the public funds. Operational Level • Development of the optimal organizational structure, suitable for management and control of the public transportation services on the national, regional and municipal level.

  14. Financing and Organisation Principles Information system • Important basis for analysis of the volume and dynamics of passenger flows on the individual lines and modes. • A technical condition: standardised on-board ticket printers and software in all the vehicles involved. Data collection: CD, diskettes, internet etc. • The central (regional) computer system calculates the level of the covering of the costs by the revenues (of the sold tickets). • Slovenia is small enough to cover the whole state with three to four regional computer centres. • The geographical configuration of Slovenia is in general an advantage for the information system.

  15. Information System Standard Dataset Data Pool Sale Revenue Split Vehicles + time Region Line Zone

  16. The Self-financing Lines • The operator (s) coordinates the transport services (schedules, etc.) directly with users. The better service, the better revenues. (Public tender, concession agreement) • A few lines The Non Self-financing Lines • The authorities are obliged to cover the difference, (in order to get the required quality and quantity of transport services) • On the basis of one-year practical experiences (based on analytical data,available by means of the information system) the volume of the remuneration should be fixed and contractually agreed upon for the whole concession period.

  17. The operator is a partner to the (local) authorities, • Takingthe risk for a successful realisation of the agreed upon quantity and quality of the transport services, under the fixed financial support conditions, up to the expiry date of the concession agreement. • The increased revenues belong to the transport company as a reward for its improved services. • Stimulus for a dynamic and instantaneous adoption of transport services to the changing market needs. • The decreased revenues are the business risk of the operator. • The remuneration (from the public sources), remain unchanged up to the expiry date of the concession agreement.

  18. Conclusions: • More than harmonisation of financing and organisation of PT of Slovenia the interoperability of public transportation systems in cross border regions with the EU neighbours is required. • Integrated public transportation system is a standard organisation form by Slovenia’s EU neighbours. • The potentially new Slovenian IPTS is a combination of advantages and disadvantages of the bothregulated and deregulated systems, (net costs) • The up to date information technology enables the transparency of financial flows (Revenues, needs) • Continuous need for adoption to the market needs

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