Implementation of a BRT system requires
a clear understanding of the benefits and costs, sources of funding
and the various mechanisms that can be deployed to finance, develop
and operate the system.
Typically the total overall capital and operating costs for BRT systems are
less than similar rail-based systems. As there are few BRT systems in the US
there is a concern amongst some practitioners that BRT will not attract the
level of ridership of a typical rail-based system and therefore may prove to
be less cost effective (cost per rider). However, because BRT is more competitive
at lower passenger volumes, the per boarding passenger costs cab range from
less than half to about 90% of the costs of a similar rail-based system. Consideration
also needs to be given to duration and the degree of exclusivity of the BRT
system. Service that is offered for limited periods of the day and that are
able to operate at higher speeds on dedicated rights of way are going to have
a different operating cost than regular transit service. Thought should also
be given to the increases in operating cost of some of the components of the
BRT system. While the higher speed of operation and the bypassing of congestion
will reduce the vehicle operating cost, additional costs include maintaining
right of way, stations; fare collection systems which the agency may not presently
occur will need to be accounted for. Fare policy towards BRT systems vary considerably.
Some systems consider BRT as an extension of their regular service whilst others
see BRT as a premium service where a higher fare is appropriate.
Funding sources for BRT projects include most of the traditional transit funding
sources. To date most US BRT systems have been extensively publicly funded
from discretionary grants at the federal level, supplemented with a variety
of state and local funding sources. At the federal level these grants include
Urbanized Area Formula Funds (Section 5307), Capital Investment Grants Program
(Section 5309), Surface Transportation Program (STP) and/or Congestion Management
and Air Quality (CMAQ) aid. At the state level General Revenue or Dedicated
Tax Revenue could be used. Local public funding sources include Dedicated Tax
Revenue and General Fund aid. As BRT is essentially a road based mode funding
from highway and other non-transit sources may be applied. There are also a
number of private and non-traditional funding/financing sources which may be
used to match or supplement federal or state funds allotments. These include
Transfer and Leaseback, Joint Development, Value Capture, Tolls, Debt Financing
and various Design/Build options.
Author: Graham Carey |
