Final Report March 2000


Background of the Establishment



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Background of the Establishment

WAMATA was established in 1973. It was given the task of managing bus and urban railroad in efforts of regional governments accompanied by the financial assistance from the federal government to tackle with transportation problems and to achieve more efficient management.


WAMATA standardized bus service and fare, and replaced 1,064 worn-out buses with 2,602 new ones after purchasing four private bus companies. It established an integrated system of bus and railroad with single fare system in connection with the subway to attract transferring passengers.

Feature of the Organization

Even though the legal advice from the federal government played an important role, WAMATA is a self-governing authority which is operated autonomously in the fields of the establishment of plan and decision-making, and financial management. The federal government performs a function of assisting the construction of new transportation projects, while regional governments take part in the decision-making process through the contribution of sharing expenses and the representatives in the operating committee.



Structure

The governors of the three metropolitan state governments appoint four commissioners from each state to constitute the operating committee. The commissioners consist of the persons of various fields such as politicians, experts, and business leaders. Two commissioners are voting members with the right of decision-making, while the rest are non-voting members.



Financial Resources

According to the 1999 budget, financial resources of the organization are as follows;


 Revenues 40%;

 Sharing expenses from regional governments 37%;

 Federal subsidy 14%;

 Others 9%.


The sharing expenses are determined and charged differently to each state in accordance with the population, number of bus lines, extension of lines, number of passengers, and number of stations. A federal subsidy is given only in the case of constructing new lines at 60%~80% of construction cost. As the subways and buses are being operated by the state, 65% of the management cost of the bus company and 95% of management cost of the railroad company is financed by the federal subsidy.

13.4 Case Study 2: STP(Syndicats des Transports Parisiens) in France

In case of France, the method of handling the administrative tasks in metropolitan areas is based on its national transportation law. According to the law, in metropolitan areas except for Paris, the authority is mandated to the association of various self-governing bodies, or communes, so as to perform the tasks. Exceptionally, in the Paris metropolitan area the metropolitan transport organization is formed as a union in which the central government and related self-governing bodies take part.


STP is the government organization under the supervision of central government, and it takes the responsibility of overall management of the bus and railroad system in the Paris metropolitan area. It has its own right of taxation and takes the full charge of planning and operating comprehensive mass transportation plan on the metropolitan bus and railroad service.

13.4.1 Backgrounds of the Establishment

STP was created by the law of travel and transport structure in January 1959. The central government, Paris municipal government, and all the provincial governments in Ill de France area were participated in the organization equally. The main tasks of this organization are aimed at achieving steadily balanced budget for mass transportation in Paris area. As 70% of the budget deficit is financed by the central government and the rest is done by all the provincial governments in Ill de France area, the STP executives manage and supervise the budget of RATP and SNCF-Ill de France. The skyrocketed budget deficit during the late 1960s forced the increase of fare and made it necessary to find new financial resources in order increased fare not to influence the life of salaried men too much. As a result, VT(Versement de Transport), which is a tax imposed to the company with more than 9 employees in proportion to the amount of total payment, was introduced in 1971.

13.4.2 The Function of STP

The main functions of STP are as follows,




  1. Operation of transport service

Determining the condition and method of the service

Designating the bus company

Setting the fare rate




  1. Improvement of mass transportation

Establishing and supervising investment plans

Approving investment projects

Developing and coordinating transport network

Operating transportation in satellite cities


  1. Coordination in respect of management and finance

Setting the operating cost of SNCF(national railroad), RATP(the organization for bus and urban railroad management), including approval of the budget

Distributing revenues among companies

Operating VT and other financial resources: VT (97%), fines(3%)

Allotting subsidy to RATP and SNCF

Assisting compensation of operating loss due to the orange card to ARTR, ADATRIF(the union

of bus companies)
To implement these tasks there are three sub-committees for specific subjects:
 Investment (the tasks of investment for railroad facilities)

 Technical adjustment(the tasks of handling with technical problems on new lines or projects)

 Fare(the tasks related to determination of the fare rate)

13.4.3 Operation

With autonomous rights for taxation in the financial area, STP intervenes in the establishment and performance of investment plans for traffic facilities by way of guaranteeing loaned subsidies. They include constructing railroads and terminals, establishing new bus lines, securing road network for the handicapped, other maintenance of urban mass transportation system.


The operating cost of the Paris metropolitan mass transport system is financed by STP with 31%, by central government 17%, by regional governments 9%, and by the revenue about 35%. Besides, STP constructs and operates parking lots, and offers subsidy to the companies providing traffic service during a certain period according to the contract. STP takes full responsibility of managing all the means of transportation in the Paris metropolitan area, including RATP for bus and subway service, SNCF for the national railroad. The STP provides subsidies to the association of private bus companies who operate private buses.

All of these public transport operators are managed by STP. The independence of STP is retained by the organic relationship among related government ministries, rather than by the ministry of transport. The commissioners of the STP are appointed by regional self-governing organizations as well as by the central government.



13.5 Case Study 3: Metropolitan Transport Planning Office in Korea

13.5.1 Transport Conditions in the Seoul Metropolitan Area

The Seoul metropolitan area includes Seoul city, Inchon city, 23 medium- and small cities, and 10 counties, with 11,745km2 and more than 20 million people. It is the core of the country, containing 45% of the total population, 46% of the total number of registered vehicles, 46% of GDP, 58% of total businesses, 42% of total colleges, and 82% of total public institutions.


While the population in Seoul city is not increasing, the population in surrounding areas including Inchon and Kyonggi province is increasing continuously with the yearly growth rate of 4.5%.

Population Growth in the Seoul Metropolitan Area

Unit :thousand, %






1970s

1980s

1990s

1997

Annual Increase Rate

70-‘80

80-‘90

90-‘97

Nation-wide

31,466

37,436

43,411

46,885

1.74

1.48

1.10

Seoul Metropolitan

Area


7,891

(27.9)


13,298

(35.5)


18,587

(42.4)


21,365

(45.5)


4.14

3.35

2.00

Seoul City

5,433

8,364

10,613

10,389

4.31

2.38

-0.30

Inchon City

646

1,084

1,818

2,461

5.18

5.17

4.42

Kyonggi

Province


2,712

3,850

6,156

8,515

3.50

4.69

4.74

Source: Korea Government, Statistics of the Korea
This trend in population for the peripheral areas of Seoul indicates an expansion of the Seoul metropolitan area. Until the 1980s, citizens’ daily life was limited within a 20km radius from the core of Seoul city, but expanded to about 40km with the rapid growth of peripheral satellite cities currently, and expected to reach 60km in near future.
With this trend of expansion in the Seoul metropolitan area, the inter-city traffic demand has rapidly increased. Especially, in the 1980s, with the development of the 5 new cities around Seoul, the rapid increase in commuting traffic has brought upon congestion in the main corridors between Seoul and surrounding cities. As of 1996, daily travel demand for the Seoul metropolitan area is more than 25 million trips, and 20% of them are from surrounding cities.
13.5.2 Conventional Approaches for Metropolitan Transport Management in Korea

Conventionally, there were two kinds of administrative bodies for the metropolitan transport problems in Korea: cooperative council for the metropolitan administration, and working- level council for the metropolitan transport management.





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