The Economics of Applying IVHS to Public Transport: A costbenefit analysis of the Shellharbour Demand Responsive Bus Trial Project

Abstract

There is much debate concerning the applicability of IVHS to public transport improvements. In particular, Computerised Public Transport Management Systems (CPTMS) are being seen by many as the answer to some of the traditional problems associated with public transport — the main one being flexibility for the user. CPTMS was trialed in a one year project on the urban fringes of Wollongong, taking the form of a demand responsive bus service. The flexibility of the service came from its ability to allow ondemand route diversions from a trunk route, offering real time passenger and control centre information, and 20 minute prior telephone booking. This paper details a cost-benefit analysis of the service. Two scenarios are evaluated — the high technology approach adopted by the project, and a low technology alternative which operated for most of the trial period because of technical problems. The study does raise some questions on how to value the intangible community benefits which could not be included in the formal cost-benefit analysis, such as goodwill towards the service and the flexibility it offers. Also, in light of the technical difficulties encountered in the CPTMS trial in Shellharbour, the paper discusses possible alternate solutions to providing a more flexible form of public transport.