STIB- David Rispoli

STIB - MIVBSTIB - MIVB

Brussels Public Transport Brussels Public Transport CompanyCompany

December 2004

STIB- David Rispoli

PresentationPresentation

2 Preparation and monitoring of contract

1 Organisation of public transport

STIB- David Rispoli

Brussels

STIB- David Rispoli

Its legal status

Private company till 31 December 1945.Intervention of the State due to the shortage of

investments of the private sector after WWII.Law of December 1953: creation of the STIB

public-private company (50 % - 50 %).In 1978, nationalisation of the STIB by acquisition

of the private shares.In 1989, regionalisation of the Belgian State, the

STIB is fully owned by the Brussels Region.

Characteristics of the STIB

STIB- David Rispoli

Strategic mission (Region & STIB)

= determine the general objectives

Tactical mission (STIB & Region)

= determine what services are needed

Operational mission (STIB)

= determine how to produce these services

Other missions (STIB)

Our mission(s)

STIB- David Rispoli

1. Organising authorities

Belgium is a federal state.

The federal authority is responsible for railways, air transportation and road regulations.

The Flemish (N) and the Walloon (S) Regions are responsible for the urban and interurban transportation.

STIB- David Rispoli

Brussels is a small region (161 km²), that is competent (and accountable) for public transport, but serving a public well outside its administrative boundaries

1. Organising authorities (2)

Municipalities (19 in Brussels) are (still) responsible for parking policy and for enforcement by local police.

STIB- David Rispoli

2. Operators

Flanders = VVM - De Lijn*

Brussels = STIB*

Wallonia = SRWT - TEC*

* =Operating companies

STIB- David Rispoli

Each company has its own fare policy but in the Brussels area, there is a fare integration between trains, trams, metro and buses.

Railways operator = SNCB- NMBS

2. Operators (2)

STIB- David Rispoli

Authority initiative (Delegated management) The authority gives exclusive rights to the operator

in the Region.

3. Right of initiative to create PT services

4. Level of regulation of the market

Regulated marketRegion monitors STIB performancesSTIB proposes the level of services to the Region for approval

STIB- David Rispoli

Staff: under contracts by operator Definition of services: operator’s responsability

level of production fixed in the contract Pricing: operator introduces tariffs propositions

approved by government. Integration: exists between operators Information and promotion: operator’s initiative Rolling stock: operator’s ownership Infrastructure: facilities and surface tracks owned by

operator; metro belongs to the Region

5. Share of responsability

STIB- David Rispoli

clear trend towards public tendering transparency of financial flows (subsidies) clarification of the roles key words for modern companies: client focus,

responsibilisation, internationalisation, diversification.

6. Changes in recent years

STIB- David Rispoli

“Plan IRIS” is the Regional plan for territory planification

Objective for transport in the “Plan IRIS”– increase of 45 million travels/year by 2010– increase of 15 million travels/year by 2005

Increase market share of PT

6. Planning environment

Mobility enquiry 1999 Iris 2010

Home-work 31,4 % 41 %Home-school 47,8 % 50 %Other reasons ND 37 %

STIB- David Rispoli

2 Preparation and monitoring of contract

1 Organisation of public transport

STIB- David Rispoli

The management agreement

an agreed level of client related production;

control of the quality of our service (CEN - norms);

cost efficiency and optimisation of revenue

Targets:

5 years contract possibility of one year extension

Duration:

STIB- David Rispoli

affirming STIB in its tactical role

Some new elements:

new formula for the regional subsidy (influenced by our success in conquering new clients)

greater autonomy in the field of fare policy

new instruments to convince the municipalities to collaborate (axis contracts).

STIB- David Rispoli

•Increase capacities• Establish Tram and Bus plan for 2005-2010• Replace old trams by high capacity vehicules• Establish metro plan for 2005-2010• Buy new metro carriages (boa series)

•Increase attractivity of services• Increase frequencies• Extend tram and metro network• Develop new services (Car-sharing, transit

parking, bicycles parking)

Tactical role:

STIB- David Rispoli

• Infrastructure for the underground, the development of the network and the improvement of the commercial speed on the surface network are financed directly by the Region.

• Investments in rolling stock, in tracks and in buildings are financed directly by STIB, which disposes for that purpose of a regional endowment and can raise loans.

Financial provisions

STIB- David Rispoli

• In fact, the regional endowment is intended for the operation as well as for investments.

• This is a global endowment, indexed annually and variable according to the evolution of the receipts.

• An additional endowment is granted by the Region for specific projects concerning security and service quality.

• The Region guarantees the rhythm of periodic payments of the endowments. As the receipts are acquired by STIB, the commercial risk is covered by the operator, who must present balanced accounts.

Financial provisions (2)

STIB- David Rispoli

• Every six months, STIB transmits to the Brussels government the balance sheet, the profit and loss account, a debts survey and a statement of investments.

• The assessment mechanism is centred on four aspects:– assessment of the respect of the commitments– assessment by the public of the supply and the service

performance– procedure aiming at solving key problems through progress

meetings– assessment of the environment.

Monitoring

STIB- David Rispoli

• The first of these aspects leads to the application of a "bonus-malus" system for:– respect of the scheduled kilometre production– financial transparency– CEN certification of the services.

• When the kilometre production falls under a threshold of 96 %, a malus (penalty) is applied.

Incentives: Bonus/malus scheme