Prof. Panos Papaioannou, Chairman Konstantinidou Christiana, Transport Planner

1. Restructuring the public transport network in times of financial crisis:Solutions from Thessaloniki Prof. Panos Papaioannou, Chairman Konstantinidou Christiana, Transport Planner Thessaloniki Public Transport Authority Skopje 13.10.2011

2. Presentation Outline • PT Legislative framework • Athens Urban Transport Organisation • Thessaloniki Public Transport Authority • Thessaloniki Urban Transportation Organisation • Thessaloniki – Transport Facts • Financial crisis consequences • Measures taken to tackle financial crisis • PT fare policy and State Subsidy • Other crisis effects • About the Future • Thessaloniki Master Plan

3. PT Legislative Framework [1/2] Policy Level: Ministry of Infrastructure, Transportation and Networks Organising Authorities: • OASA in Athens Area • SASTH (THEPTA) in Thessaloniki Area • Regional Authorities and Municipalities in all other areas

4. PT Legislative Framework [2/2] Operations • Athens Area: 6 Public operators (before restructuring) • Suburban Rail • Electric Rail • Metro • Tram • Buses • Trolley Buses • Thessaloniki: 1 Private operator (buses) • Regional Unities (ex Prefectures) all over Greece: Private bus operators • Rhodos & Kos islands: Municipal operators (buses)

5. Athens Urban Transport Organisation (OASA) OASA is a“private law legal entity”,responsible forPlanning, Organising, Coordinating, Controllingand Contractingtransport services for all modes of surface underground public transport means (buses, trolley-buses, metro, tram and suburban rail) in the greater Athens Area.OASA is also the holding company for all PT operators which are state owned.During the recent crisis period (2011) the Central Government decided to restructure PT operators in Athens by merging them. As a result, two new companies established:1) OSY=Road Transportwhich comes from Trolley Bus Operating Company (ILPAP) and Bus Operating Company (ETHEL) incorporation.2) STASI = Railway Transportwhich comes fromAthens-Piraues Electric Railways (ISAP), Attiko Metro Operation Company (AMEL) and TRAM S.A. +Proastiakos (Suburban Railaways S.A.)incorporation.

6. Athens Urban Transport Organisation (OASA)

7. Thessaloniki is the second largest city in Greece (1.000.000 residents) The Public Transport Authority of Thessaloniki (acronym: THE.P.T.A.) is a public administration body of the Greater Metropolitan Area of Thessaloniki under the Central Government Ministry for Infrastructure, Transport and Networks. ΤΗΕ.P.Τ.Α. was established in 2001 to operate as an executive board for the Thessaloniki greater area. The Council of THEPTA consists of 11 members, representatives of various government agencies and local authorities, educational organizations and workers associations. Its main responsibilities include transport policy formulation for the Greater Thessaloniki Area, strategic transport planning, programming of interventions, as well as supervision and quality control of all of Public Transport Operators at the Prefecture of Thessaloniki. The Chairman of the Council of Thessaloniki Public Transport Authority is appointed by the Minister for Infrastructure, Transport and Networks. The Board employs several transport planning professionals. Thessaloniki Public Transport Authority

8. THE.P.T.A. also has the functional supervision of O.A.S.Th., the sole private bus operator in Thessaloniki (operating under a contractual arrangement with the central Government). In the near future a Metro system which is currently under construction will operate under the responsibility of THE.P.T.A. Thessaloniki Public Transport Authority

9. A metro system is under construction phase Thessaloniki Urban Transport Organisation (OASTh) OASTh is a “private law legal entity”, established in 1957. OASTh has exclusive PT service rights in Thessaloniki area under a direct award by the central government since 2009 OASTh service contract ends 2 years after the completion of the first Metro line, provided that this will take place before 2019. • Main OASTh facts: • 622 buses and • 78 bus lines and • 180.000.000 passengers/year

10. Thessaloniki area - Transport facts

11. Thessaloniki area – 2009 Figures Bus Passengers/year: 180.000.000 Daily trips in Thessaloniki: ~2.400.000 Daily PT patronage: 450.000 Public Transport Share: ~ 18,5% Annual Operating Cost: 173.000.000 € Annual Revenues: 50.000.000 € Average load factor: ~42% Daily Trips by car • Car ownership: 450 veh/1.000 residents • ~400.000 private cars use the city network every day • ~140.000 vehicles during peak hour • Mean Speed per vehicle: 14 km/hour

12. Financial crisis consequences • Fuel price increase (+50%) • Reduction of gross income (25%-40% so far) • Increase of direct taxes • Additional income and property taxes • Increase of Value Added Tax (~30%) • As a result severe reduction of disposable income Consequences on Public Transport • Increase of PT operating cost • Reduction of state subsidy

13. Reduction of service hours (cutting early and late schedules) • Reduction of personnel (drivers) overtimes • Reduction and/or cancelling of night bus schedules • Bus frequency reductions to reduce required vehicles • Reduction of shareholders’ return on investment • Low cost efforts to Improve quality of bus services • Increase of fare levels in conjunction with changes in transfer rules Measures taken to tackle financial crisis in PT

14. PT fare policy and State subsidy • PT fare policy is set by the Central Government • Due to operating cost increases and subsidy reduction (from 126.000.000 € to 105.000.000 €) fare increases were decided

15. High fuel cost leads to less private car traffic - Decreases of 15%-20% in average daily traffic noticed in the greater area of TheesalonikiIncrease of 7% in PT patronage also noticed from 01.01.2011 to 30.09.2011People’s mobility has been reducedMore use of cycling and mopeds Other Crisis Effects [1/2]

16. Other Crisis Effects [2/2] Increased fare evasion and often organised refusal to pay the increased fares!!! Assertions and Occupancies on the buses and OASTh’s offices were a common phenomenon during the first months of the new fare policy!!!

17. About the future!Institutional Reform of The.P.T.A. • ThePTA will undergo an institutional reform within the next 6-9 months • It will undertake additional responsibilities such as: - Preparing the scene for the new era (according to EU regulation 1370) • Public Transport Service contracting • PT fare policy (currently made by the Ministry) • Enhancing intermodality • Mobility Management • Passenger Information (currently offered by OASTh) • E-ticketing • Visitors’ card

18. About the future!Priority areas for THEPTA • Redesigning PT network and improving services in order to reduce the operating cost • Availability of necessary data and Information to improve supervision and control of the operator • Provision of integrated information • Establishing a PT quality monitoring system • New services to citizens • Flexible Transport Systems • Performance and Financial indicators benchmarking • Developing the necessary transportation planning mechanisms • Intervening to change current legislation regarding transport and mobility

19. About the future!Transportation Master Plan • Preliminary Plan for Transport Infrastructure at the Greater Thessaloniki area for year 2020. • Emphasis on Public Transport and Mobility management. • Emphasis on Park & Ride facilities and integrated transport centres. • Sustainable Mobility is the new goal for both the Ministry of Infrastructure, Transportation and Networks and the Ministry for the Environment and Climate Change.