+ BACKGROUND, CHALLENGES AND OBJECTIVES
Background
Necessity of reorganizing the bus operating system centered on private companies
The pursuit of profitability by private bus companies led to a decrease in bus service quality due to excessive competition between companies, and the avoidance of operations on unprofitable lines, leading to the rapid infringement of public transportation. Other factors such as excessive competition, transport company profitability deterioration, service quality deterioration, and the number of passengers are inter-connected in a vicious cycle, leading to many problems.
In addition, there is a need to improve the bus operating system, such as situations where bus access is reduced due to difficulties with coordinating routes for passengers and the exclusive, private property of transportation companies.
Challenges
Inadequate cooperation with service improvement
The SMG has been continuing to enhance the education and management of transportation workers to improve service, boost resident satisfaction, and reduce safety accidents. However, complaints about violence and illegal and unfriendly actions committed by some high-risk drivers have not improved significantly. The number of accidents has also not improved. In 2014, the city of Seoul planned to reinforce training practices by strengthening 1:1 customized education programs using IT equipment and case studies, participatory education conducted by CS professional instructors, and training courses for transportation workers. Although there is a possibility for education-related conflicts among Korean transportation workers, the participation rate in and commitment level to education will be strengthened by counting time devoted to education toward working hours.
Incomplete participation in supplementary project for Semi-Public Bus System in the transportation industry
The Semi-Public Bus System, which requires absolute involvement and cooperation from among bus industry players, has experienced difficulty in promoting the project because the transportation industry is lukewarm about securing transparency with hiring drivers, promoting the rational operation of spare cars, and amending the agreement. Therefore, the city of Seoul is planning to form a consensus of citizens through the formation of a TF and holding discussions, and to continue having productive consultations with the bus industry by providing reasonable alternatives.
Objectives
1. Providing stable transportation services, such as route adjustments, under the responsibility of Seoul City, improving transport access for residents
2. Improving public transportation services by enhancing the efficiency of private management and strengthening the management of public routes and transport system operation
3. Reducing residents' burdens by transferring discounts to them
+ ACTIONS AND IMPLEMENTATION
Introduction of Semi-Public Bus System
In 1995, the City of Seoul began holding public policy conferences on improving the quality of its buses using private buses. In 1997, the Bus Reform Civic Conference was held to study ways to raise bus fare rates and ensure transparency. Also in that same year, the Bus Administration reorganized the bus system and improved bus services by introducing the BIS bus arrival guide system, integrated fare system, and transportation card.
In June 2004, the Semi-Public Bus System was introduced to improve the existing bus system.
Improvement of Semi-Public Bus System
The Seoul Metropolitan Government improved and overcame the problems, as evidenced by the results of the implementation of the project which were released in 2005. Efforts included introducing CNG and other eco-friendly city buses, expanding demand-resilient routes for unreasonable routes among wide-area routes and commuting routes, expanding the rate of non-driving buses on Saturdays and Sundays, and improving the city bus advertising system.
Settlement of Semi-Public Bus System
As of the 10th year since the introduction of the project, resident satisfaction has greatly increased and bus accidents have been decreased significantly when compared to the early stages of the project. However, to improve the stagnation of the decrease in speed, and speeding and civil complaints, we have determined five major tasks necessary to supplement the spiritual and self-improvement projects. The main points include strengthening the transparency and management of transport operators, establishing minimum standards for city bus maintenance staff, expanding the accumulation of driver retirement allowances, and the rational operation of reserve vehicles.
Budget Procurement
Funding is provided by the city with the total amount of financial support for the shortfall between total transportation income and total operating cost, and transportation income is managed by the cooperative income management of a transportation committee within the bus association.
Legal and institutional improvement
In 2013, the SMG requested that the Ministry of Land, Transport and Maritime Affairs expand the authority of the provincial governor and strengthen the sanctions for improper implementation of fiscal grants in order to resolve issues with resilient route adjustment and civil inconveniences. However, the extension authority of the provincial governor has not yet been revised, and there are many difficulties encountered with operating bus routes. The city of Seoul will continue to demand the revision of relevant laws by the Ministry, which will provide an opportunity to further develop the construction industry through stable route and vehicle management.
Public-private cooperation network
The bus corporations, bus industry, transport workers, and Seoul City will strengthen their cooperative system. The Semi-Public Bus System is a system that requires absolute cooperation and participation by the city, bus association, transportation companies, and transportation workers. In the future, it is expected that it will be necessary to reduce the number of workers in the transportation system. Therefore, there is a possibility of creating another conflict with the transportation workers. We will establish and strengthen cooperation and understanding so that public transportation can be revitalized and services can be dramatically improved.
+ OUTCOMES AND IMPACTS
Results and Evaluation
There were many accomplishments, such as the reduction of bus traffic accidents, improvement of service satisfaction, improvement of transportation worker treatment, improvement of passenger arrival times, an increase in public transportation users, and increase of the share of bus transportation within the transport system.
However, transportation costs have been steadily increasing, while transportation revenue has been stagnant due to price rigidity. Therefore, there are many problems that need to be improved, such as the increase in financial burdens on the city, a fading of the provision of private autonomy, and moral hazards.
+ REPLICABILITY AND SCALABILITY
Scalability
In order to successfully set up the Semi-Public Bus System, many efforts have been made so far, but continuous improvement is still needed in the future.
First, the Semi-Public Bus System was established with the absolute consent of the city’s citizens and cooperation of the transport industry and transportation workers in order to improve the convenience of public transportation and citizen satisfaction. In the future, it will be necessary to carry out additional tasks through the establishment of logical and persuasive responses by Seoul City, sufficient consultations between related parties, and social consensus building.
Second, as a result of efforts to reduce financial support in areas not related to citizens' inconveniences and safety accidents, the city of Seoul has made efforts to reduce the financial burden by increasing domestic and external advertising revenue, restoring standard transportation costs, and improving environmentally friendly driving habits. However, as the financial support is expected to increase more and more because of the continuous increase in transportation costs and stagnation of transportation income due to fare rigidity, it is urgent to prepare countermeasures.
+ BUDGET AMOUNT
Financial support by year
Transportation costs, such as labor costs and vehicle parts costs, continue to increase, while bus fares have only risen slightly in 2007 and 2015, and transportation revenues have not risen at all due to the expansion of new transportation system segments. As a result, financial support is steadily increasing.
(Unit: USD 100,000)
| Year | 05 | 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 |
| Financial Support | 2,221 | 1,950 | 1,636 | 1,894 | 2,900 | 1,900 | 2,224 | 2,654 | 2,343 |
