Wednesday, July 11, 2007

Failure despite success

Toronto ON - The Toronto Transit Commission (TTC) is in a unique spot these days. Its ridership is greatly increasing but is causing overcrowding as well as cash flow headaches. The TTC finds itself unable to cope with the influx of riders as politicians and activists push harder to get more people on board.

This is a problem every transit system in North America faces as they try to find ways to get people out of their cars and onto transit. It's a Catch-22 where even if you win, you lose.

Of course there is no additional money forthcoming. The TTC claims it needs $6.7 million (C$) to battle the overcrowding by adding more transit vehicles and drivers. Where does this leave the TTC? Wanting to hike fares to help cover the expenses of increased ridership.

Now, one more time people. Let's look back at the Port Authority of Allegheny County (PAT) during the early and mid 1970's. They had a massive increase in ridership yet this was handled without dramatically increasing costs and without fare increases or increased funding. New routes were added, service was run efficiently which allowed more service out of one bus and driver as well as having just about every fare incentive out there to get even more riders on board.

PAT had crowded buses and trolleys but they were able to handle the quick influx of riders quickly, effectively and efficiently. It's too bad the PAT management of today doesn't understand this basic principle but that's another rant for another time.

This is what bothers me on the Toronto story. The TTC has plans for various new transit projects while ignoring the existing service. Just about every other transit system in North America is the same way. Rather than make their operation efficient, they instantly put their hand out for more tax money and when they don't get it, they punish the ridership by raising fares and cutting service.

Politicians, activists of various causes and transit officials all want more people on board. When they get them, they aren't prepared for them. It doesn't take much to prepare either. Run an efficient operation and the ability to handle the crowds becomes easy. You don't need more money to handle an increase in ridership.

The answer most of the politicians, activists and transit officials see is to build expensive transit projects that benefit few and take away from the rest of the area's service to pay to run the project. Rarely do you see any of the above decide to make the system cost efficient and focusing on what they already have in place. As the above groups push harder to make driving more expensive by wanting to tax private car ownership to oblivion, they are also hurting the transit systems. By forcing unneeded transit projects to be built and sacrificing the rest of the operation to pay to run these projects, they ensure people keep finding new ways to keep driving, regardless of cost.

The TTC is also pointing the finger of blame at the monthly pass holders for its revenues dropping while ridership increases. What a load of BS that is. That makes absolutely no sense what so ever. Again, PAT in the 70's had just about every fare incentive you could think of to get riders on-board and it wasn't losing revenue doing it. The vast majority of the riders back then used some form of pre-paid discount fare instrument and fare revenues were increasing, not decreasing. PAT turned the worst fare days into the best with the Tuesday Special reduced fare for everyone during Tuesday off-peak. Using the TTC excuse, the PAT of the 70's should have been losing money faster than water going over Niagara Falls with the Tuesday Special. The TTC is just trying to justify a fare hike with the claim that monthly pass holders are costing it money.

Toronto is just one of many operations that are experiencing a rider surge. More will follow, some will totally screw it up *cough* PAT today *cough* while others will adapt and deal with it. Toronto seems to be trying hard to screw it up while at the same time trying to slip their hand into the tax till for more money.

1 comment:

RDC said...

The more I think about this story the more I think the TTC really needs to take a look at who is increasing the ridership numbers. By this I mean that it is very possible that free riders on the system through various government social service groups could be helping to cause the revenue drop.

I took a quick look through some information I had on the 1970's PAT fare programs and I was right, revenues increased along with the ridership. If the TTC is losing revenues, it's not because of the monthly pass holders but due to other other issues.

Miscounts, an increase in *free* fare riders in various social programs and even another forgery problem for the TTC is more likely the culprit.

As ridership increases, so do the number of paid pass holders. Your getting new revenue from those that didn't ride before even if they buy passes. The more I look at it, the more I think that the TTC blaming the monthly passes for a loss if revenue is a red herring.