June 26th, 2006

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Breaking Even on Rapid Light Transit

I was impressed to read last week on Sarah’s blog that Luas, Dublin’s newish light rapid transit system, turned a small profit in 2005:

The 2005 surplus of just €0.2 million, while small, allowed the Railway Procurement Agency, the developers of Luas, to inform Minister for Transport Martin Cullen that his planned €2.32 million subvention would not be required. Last year was the first full year of operation for both lines.

The figures contrast with annual subsidies of €25 million for Bus Éireann [the countrywide bus service], €65 million for Dublin Bus and €180 million for Iarnród Éireann [the countrywide train service].

All this despite having the ugliest seats in the known universe.

I was curious to compare with Vancouver’s SkyTrain. Here’s what I came up with (from a pretty biased source):

The $1.9 billion SkyTrain Extension Project underway will have an enormous financial impact on the region, and in particular on the region’s bus system. In 2005, the bus system will have debt service costs of approximately $90 million with passenger revenue of an estimated $235 million. SkyTrain on the other hand will have a debt service cost of some $332 million, of which $160 million is the GVRD responsibility. The authors have estimated that in 2005 the SkyTrain revenue to be approximately $20 million.

I was unable, in my 37 second Google search, to determine what SkyTrain’s yearly operating expenses are. Any takers?

Comments: 5 Responses so far

Richard
June 26th, 2006
1:55 pm

http://www.translink.bc.ca/files/pdf/2005AnnualReport.pdf

$73 million in 2005 evidently. Up from $72 million in 2004.

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darren
June 26th, 2006
1:57 pm

Thanks for that. Does that mean the Skytrain operates at a loss of roughly $50 million?

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Richard
June 26th, 2006
7:56 pm

Not sure where the authors got the $20 million number for revenue, since fares aren’t separate from other modes of transportation. And even when you pay at the SkyTrain station, you’re not paying for the SkyTrain ride, but technically for 90 minutes within the number of zones you specified no matter which mode (except West Coast Express, damn their fancy hides!).

I saw a statistical breakdown somewhere, but can’t find it. Anyway, there’s an article in the Courier that suggests that the Expo Line breaks even and that the Millennium Line loses $25 million.

http://www.vancourier.com/issues03/043103/news/043103nn1.html

Anyway, again, not sure how anybody could know that, because fares are not broken down by usage, only where they were purchased (to say nothing of monthly and daily passes).

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heather
June 27th, 2006
7:53 am

according to the same document richard linked to in his first comment, the number of annual passengers on skytrain is 66,292,000. at $2.25 per ride, that’s revenue of $149,157,000. of course, there’s monthly pass, upass, disability, senior and faresaver users to take into consideration. not to mention the fare-avoiders. but, even if 50% of the boarded passengers do not pay a minimum of a one-zone fare, there’s enough fare revenue to pay skytrain’s yearly operating costs.

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Ryan Cousineau
June 27th, 2006
1:09 pm

The exact numbers are complicated, but I’m pretty sure the revenue allocation can be calculated pretty accurately.

First, using ridership surveys and fare counts, etc., the transit people have a pretty good (statistically speaking) profile of how many people ride which systems. Second, they have a very good idea of exactly how much people paid to ride the system.

Familial sources have long quoted to me the internal assessment that Skytrain covers its operating costs (NOT its capital costs, which are always considerable; the Luas “profit” is of the same nature).

It is quite possible to believe that the Millenium Line is presently losing money (again, operating-cost-wise), but while that line got off to a slow start, every time I take it it’s busier than the last time. I suspect that it is a matter of a few years before the new line is in the same break-even state as its predecessor.

Advanced light rail has great ridership, largely because it is fast, and the operating costs are remarkably low. I see none of these advantages for the upcoming non-rapid Evergreen line, and it saddens me. So close…

Full disclosure: as I said, I have familial ties to Skytrain, and while my admiration for the system is sincere, I am less suspicious of this government megaproject than I am of most such ventures.

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