Final Report March 2000

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Development and Dissemination of a Best-Practices Manual to Address Urban Transport Problems in the APEC Region

Final Report

March 2000

Prepared for
The APEC Transportation Working Group

The Korea Transport Institute

Preparation of the Report

This Report was prepared for the APEC Transportation Working Group by the Korea Transport Institute (KOTI). The Korea Transport Institute would like to acknowledge the valuable contributions made in the preparation of the Report from the following individuals and organizations:

 Professor Jongho RHEE, Kyonggi University, Korea

 Professor Ikki KIM, Hanyang University, Korea

 Professor Youngchan KIM, University of Seoul City, Korea

 Dr. Anthony R. Michell, Euro-Asian Business Consultancy Ltd., England

 Professor Seungpil KANG, Seoul National University, Korea

 Mr. John Moon, UNESCAP

 Task Force Members of the Project in KOTI.

Information and Advice

The Korea Transport Institute also wishes to acknowledge with gratitude the assistance from many individuals and agencies both in each of the APEC member economies which has assisted substantively by providing information for this Report.

Soo-young Lee, President

Sang-yong Lee, Ph. D, Project Manager
The Korea Transport Institute

Republic of Korea

March 2000

Executive Summary 1

1. Current Situation in Urban Transportation 1

2. Lessons from Policy Experiences 5

3. Future Challenges and Tasks 7

PART I. Urban Transportation in the APEC Region

: Facts and Findings, Problems, Challenges and Tasks 15

Ch 1. Introduction 16

Ch 2. Urban Growth, Population and Transportation 18

2.1 Patterns and Characteristics in Urban Growth 18

2.2 Urban Development and Transportation 21

2.3 Urban Transport Problems and Policies 24

2.4 Problems in Land Use and Transport Planning 27

2.5 Challenges and Tasks for the Future 32

Ch 3. Transportation Infrastructure and Car Ownership 34

3.1 Infrastructure Development in the APEC Region 34

3.2 Urban Transport Infrastructures 35

3.3 Increasing Car Ownership and Impacts 38

3.4 Investment on Transport Infrastructure 42

3.5 Challenges and Tasks for the Future 44

Ch 4. Traffic Condition and Public Transport 46

4.1 Public Transport Systems in the APEC Region 46

4.2 Modal Share and Traffic Congestion Problems 54

4.3 Changing Travel Patterns and Underlying Trends 56

4.4 Challenges and Tasks for the Future 58
Ch 5. Traffic Accidents, Energy Consumption and Environmental Issues 61

5.1 Traffic Accidents, Injuries and Fatalities 61

5.2 Traffic Accidents in Urban Areas 62

5.3 Energy Consumption in Transportation 64

5.4 Vehicle Emission and Air Pollution 65

5.5 CO2 and Global Warming 66

5.6 Challenges and Tasks for the Future 67

Ch 6. New Transport Technology and Information System 70

6.1 Development of ITS Technology 70

6.2 Recent ITS Activities and Practices in the APEC Region 70

6.3 New Transport Technology in the APEC Region 78

6.4 Challenges and Tasks for the Future 79

PART II. Best Practices and Policy Directions for the Urban Transport Problems 83

Ch 7. Financing Transport Infrastructure Development 84

7.1 Securing Government Revenue 84

7.2 Efficient Expenditure for Transport 86

7.3 Private Financing for Transport Infrastructure 88

7.4 Risk Sharing Arrangement 89

7.5 Case Study 1: 4 large Projects with Private Sectors in the Philippines 90

7.6 Case Study 2: Financing the MRT Lines in Thailand 91
Ch 8. Integration of Land-Use Planning and Transport Policy 93

8.1 Approach to Integrated Land-Use and Transport Policy 93

8.2 Package of Options For Integrated Land-Use/Transport System 93

8.3 Case Study: Harmonizing Urban Land Use, Environment and Transportation System

; Land Use Planning of Taoyuan Airport City in Taiwan 98
Ch 9. Air Quality Improvement, Accident Reduction and Energy Saving 103

9.1 Policy Approach to Reduce Vehicle Emissions 103

9.2 How to Reduce Traffic Accidents and Fatalities 110

9.3 Case Study 1: TDM for Vehicle Emission Reduction in USA 115

9.4 Case Study 2: Accident Reduction Program in Australia 121

Ch 10. Revitalization of the Public Transport System 125

10.1 Socio-Economic Benefits of Public Transport System 125

10.2 How to Revitalize Public Transport System 130

10.3 Case Study: Public Transport Policies in Selected APEC Member Economies

; Australia, Canada, Hong Kong in China, Japan, New Zealand, Singapore 139
Ch 11. Improvement of Transport Management, Traffic Operation and Control 150

11.1 Policy Alternatives of Travel Demand Management (TDM) 150

11.2 Mitigation of Traffic Congestion by Traffic Operation and Control 151

11.3 Case Study 1: Traffic Management System in the USA 158

11.4 Case Study 2: Electronic Road Pricing (ERP) in Singapore 164

11.5 Case Study 3: Bus Priority Lane and Congestion Pricing in Korea 169

Ch 12. Development of New Transport System and Technologies 171

12.1 Trends of New Transport Technology 171

12.2 Policy Direction of ITS Technology 172

12.3 Case Study 1: Major ITS Challenge and Development in Hong Kong, China 174

12.4 Case Study 2: PRT in the USA 177
Ch 13. Improvement of Administration Systems 179

13.1 Revolution of Urban Structure and Metropolitan Transportation Management 179

13.2 Types and Examples of Metropolitan Transport Administration System 179

13.3 Case Study 1: MPO(Metropolitan Planning Organization) in USA 182

13.4 Case Study 2: STP(Syndicats des Transports Parisiens) in France 186

13.5 Case Study 3: Metropolitan Transport Planning Office in Korea 188

Ch 14. Promotion of the International Cooperation in the APEC Region 192

14.1 Objectives of the International Cooperation 192

14.2 Areas for the International Cooperation 192

14.3 Direction for Future Cooperation 193

Ch 15. Conclusion 194



1. Transportation in the APEC Member Economies

2. Urban Transportation in Selected Cities in the APEC Member Economies


Trends of Economic Growth (1986-1997): APEC, Developed Countries and 18

World Average 18

GDP per Capita in APEC Region 19

Urban Primacy in Selected APEC Countries 20

Population Trends in Selected Cities in APEC Region 21

Highway Facilities in APEC Member Economies (1986 and 1995) 34

Highway Length and Density in Selected Cities (1995) 35

Urban Railways in Major Cities in APEC Region (As of 1997) 36

Trends of Passenger Car Ownership per Capita in APEC Member Economies 38

Number of Motorcycles in Selected APEC Member Economies (1995) 40

Vehicle-related Taxes in Japan 43

Private Sector Investment for Transport in Selected APEC Member Economies 43

Hong Kong, with a population of 6.8 millions and about 1,100 km2 in size, is a city which has a high density of development. In Hong Kong, various public transportation modes, such as subway, bus, and even ferry, are operated with various kinds of fares and service qualities. It is reported that about 11 million passengers use the public transportation modes every day, accounting for 81% of the total traffic volume. Public transportation service is operated both by private and public enterprises under a mutual competition. Government plays a leading role to control and adjust the system through various public transport policies. 47

Major directions of public transportation policies are as follows: 48


Balanced and efficient use of public transport modes, 48

Encouragement of intermodal competition and integration, 48

High service quality and low fare, 48

Rail priority, and 48

Maintenance of good ferry service. 48

Buses are the most important passenger transportation mode. They, including minibuses, occupy about 65% of total transportation. Franchise bus service is provided by 5 private companies, without government subsidy. Government bears a part of the investment on traffic safety, vehicle maintenance, and construction of bus terminals, in connection with public transportation infrastructure. The 16-passenger minibuses are operated in high demand areas. Minibuses consist of green minibus, which has fixed route, fare and frequency, and red minibus, which runs irregularly. There is no government regulation on red minibus in terms of route, schedule and fare. It implies that the fare of red minibus is elastic depending on demand. 48

Public Transport in Hong Kong 48

In Hong Kong, China, various urban railways and fixed-track systems are operated. They include a sub-urban railway connecting urban Kowloon to the boundary with Mainland (KCR), and inter-district subway system (MTR), light rail transit, tramway, etc. The KCR provides for the majority of cross boundary passenger trips and carried more than 750,000 passengers per day in 1998. The MTR is a 77.2Km network for inter-districts commuting as well as connection to the airport. The daily patronage on MTR is about 2.3 million trips. Tramway provides low speed, but the cheapest public transport service running at US$25C for a single trip. Ferry, a transport mode with long history in Hong Kong as a port city, still provides for essential service to outlying island and for tourism traffic. 48

Type and Function of City Bus in Seoul (As of 1996) 51

Situation of Urban Transport in Singapore (1995) 51

shows the traffic accident rates in selected cities. In terms of a fatality per 10,000 cars, Vancouver(1.1) and Taipei(1.6) show lowest traffic accident rates, whereas Manila(10.4), Beijing(5.7) and Hong Kong(4.9) show high accident rates. 62

Fuel Consumption Index in Highway Transportation (1995) 64

Canada has a tax scheme similar to that in the USA. Transport user license and registration fees, which are primarily from motor vehicles, and fuel excise taxes are imposed independently by federal and provincial governments. Fuel tax revenues continued to rise through the years, as fuel use rose rapidly, especially with federal fuel tax rate increase in 1995. 85

Government Revenues from Transport in Canada 85

Government Revenues for Transport in Korea 85

Policy Instruments For Sustainable Development 94

Figure 8.3.1. Spatial Structure of Taoyuan Airport City 101

Energy Saving Effects by Improving the Road Facilities in Japan 106

Summary of TDM Policies 107

Comparison of Energy Efficiency between Autos and Public Transportation 108

Alternative Fuels and New Energy Sources 110

Important Articles of ISTEA and CAAA 116

Transportation Policy of Improving the Air Quality in the USA 116

Reduction of Pollutants by Transportation Control Measures in the USA 117

Death Tolls of the Traffic Accidents in Selected Countries 122

4 Major Reasons of Traffic Casualties in the State of New South Wales 123

Summary of Competitive Tendering Results 135

Modal Share of Journey to Walk in Canadian Cities (1996) 141

Annual Passenger Journeys of Public Transport Per Capita in Canada 141

Passenger’s Daily Modal Share in Tokyo Transit Area (1992) 143

Traffic Operation Plans in Short-, Mid-, and Long-Term 157

Benefits of the Progressive Signal System in Wichita Falls, USA 162

Benefits of the TLS System in a City in Texas, USA 163

Source : 178

History of PRT-related Systems Development in the USA

System Capabilities and Performance Features of the Typical PRT System

Population Growth in the Seoul Metropolitan Area


Percentage of Urban Population in APEC Region

Passenger Car Ownership and GDP in APEC Member Economies (1995) 39

Comparisons in Modal Share in Selected Cities 55

Traffic Accident Fatality Growth (1986~1995) 62

Traffic Accident Fatalities in Selected Cities (1995) 63

Distribution of Global Vehicle Emissions in Early 1990s 65

Trend of Fatalities in Japan and Korea 111

Executive Summary
1. Current Situation in Urban Transportation

Urban transport problems
While it is widely recognized that economic growth and urbanization have created an array of urban transportation in the cities of the APEC region, the severity of the problems vary considerably from city to city. Moreover, there is a big gap between the developed and developing countries in terms of their awareness of the problems and their policies for dealing with them.
In highly urbanized countries such as Australia, Canada, and the US, the major urban transport problems include the following:

  • Excessive dependence on automobiles and use of fossil fuels, both of which result in air pollution and noise problems

  • Public transport systems are underused and face increasing operating costs.

  • Low usage of non-motorized and environmentally-friendly modes, such as walking or bicycles

  • Deterioration of existing transport infrastructure, particularly highway facilities

Japan has a relatively low dependence on cars and a high usage of public transport modes, despite the substantial development of its major metropolitan areas.

In urbanizing countries, however, the major transportation problems are follows:

  • Rapid growth in car ownership and insufficient transport infrastructure

  • Poor management of land-use development and transport facilities

  • Public transport systems with low capacity and poor quality of service

  • Increasing traffic accident rates and high rates of fatality resulting from traffic accidents.

Transport infrastructure development

As the urban areas of the APEC region have developed, so too has travel demand. In response, the region has experienced an increase in income and the quality of life, increased car ownership, and the development of transport infrastructure. Highway facilities in most of the countries have grown remarkably in recent decades. Urban railways have also been promoted in many cities, but many projects in developing countries have not seen much progress, primarily because of the difficulty of financing enormous construction costs. In Beijing, Hong Kong, Seoul, and Singapore, urban railway projects have proceeded smoothly, despite the difficulties in financing. However, some cities have had to delay or modify their projects.

Growth of car ownership

Overall, car ownership has grown in most of the countries, though the growth rates vary.

Rapid growth in car ownership results in:

  • Traffic congestion

  • Negative environmental impacts

  • Increase in traffic accidents

  • Division of communities

Some developing countries have attempted to implement policies to control the growth in car ownership. However, most of the policies, especially regulations, have not been very effective.

Countries in the APEC region need to continuously invest in the development of their transport facilities. According to the World Bank, the East Asian countries have to invest about 2.2% to 3% of their GDP in transport facilities from 1995 to 2004. Traditionally, transport facilities in these countries have been constructed and operated by the public sector, and most of the funds were raised through taxes or the issuance of public bonds. Taxes have been imposed on gas prices and automobiles sales. Japan and Korea, for instance, successfully financed transport infrastructure construction through the utilization of taxation during the 1990s.

In an effort to alleviate the funding problems in the public sector and utilize the efficiency of the private sector, since the early 1990s, many countries have introduced private sector involvement in the building of their transport facilities. In developing countries, however, the small size of the capital market makes it difficult to raise domestic financing. In such cases, it can be useful to induce foreign funds, through the use of incentives.

Traffic condition and modal share

Only a few Asian cities are balanced in their modal split between private autos and public transportation modes. In Hong Kong, Singapore and Tokyo, public transport systems are of high quality and have a high modal share. Seoul has been developing toward a strong public transport system, including a high modal share for subways. In other Asian cities, however, the public transport systems are still poor in both service quality and in terms of their overall modal share. In North America and Australia, urban transportation systems are advanced and fairly well-organized, though they are auto-dependent and not heavily reliant on public transport. This implies that the public transport system is operated inefficiently in terms of utilization with a limited patronage.

Traffic congestion exists in every city with automobiles, but there is no established standard as to what level of traffic congestion justifies policy intervention. It is clear, however, that policy intervention in relieving traffic congestion is justified, since it can lower the social costs of congestion and, therefore, benefit society. APEC countries have implemented various political and technical measures in order to reduce traffic congestion; for example, Singapore has tried an ALS (Area Licensing Scheme), whereas Hong Kong has used ERP(electronic road pricing). Bus priority policies, such as exclusive bus lanes and bus gates, have also been attempted in a number of countries.
In developing countries, urban travel behaviors and patterns change along with changes in the urban transport environment, such as urban population growth, the increase in car-ownership, the expansion of the area towards metropolitan cities, and the provision of new transport infrastructure. The typical changes in travel patterns in developing countries are as follows:

  • From public transport use to travel by car

  • From bus use to rail transit use

  • From paratransit use to private car or regular transit use

  • Increased travel for non-commuting activities such as shopping, socializing and recreation

The transport problems in the cities of the APEC region can, in general, be classified into three basic categories: traffic congestion problems, environmental problems and systemic problems. Traffic congestion is the result of inadequate road space, insufficient road networks, an inefficient public transportation, and inappropriate transport development. Environmental problems are attributed mainly to vehicle emissions. Systemic problems stem from weaknesses in the legal system, policymaking, and strategic planning and implementation.

Problem of traffic accidents

It is estimated that more than 200,000 people are killed, and that more than 3 million people are injured, by traffic accidents every year. While the damage caused by traffic accidents has been slowly decreasing in developed countries, the problem has been getting worse in most developing APEC countries. From 1986 to 1995, the traffic accident fatality rate in Australia, Canada, Hong Kong, New Zealand, Singapore and the USA decreased significantly, but increased in other APEC countries, from 13.1% to 62.2%.

Energy consumption is rapidly increasing in most APEC countries, mostly due to industrialization and urbanization. In fact, energy demand in Asia will double every 12 years, whereas the average demand in the rest of the world will double only every 28 years, according to the World Bank. The rate of annual fuel consumption per automobile was very high in Brunei, Chile, and the USA, implying a high level of automobile dependence in these countries. In Hong Kong and Japan, where fuel prices and fuel taxes are high, the per-auto fuel consumption rates are relatively low.
According to a research, in the early 1990s the Asia region accounted for about 20% of CO, HC and NOx emissions, and about 10% of CO2 emissions. In the 2000s, pollutant emissions in Asia’s developing countries are expected to be 200~300% greater than they were in the early 1990s, according to a UNESCAP report. It is noteworthy that motorcycles, which are widely used in South Asian cities, emit much more pollutants than ordinary vehicles. CO2 emissions in the APEC region continue to increase as well. In 1993, the Asia region accounted for 41% -- China for 11.6% -- of the world’s CO2 emissions, according to a World Bank report.

Technology development

Over the last several decades, transportation engineers and experts in the U.S, Japan and Europe have examined some innovative technologies to introduce a major change in their highway traffic control systems. Their main goals are to achieve remarkable transportation efficiency and safety through the use of advanced information and communications technology. Some of the technologies, collectively known as ITS, are currently being applied to highway transportation.

Here is a listing of some of the ITS activities which have been attempted in APEC countries:

  • The COMPASS system, a freeway traffic system, was implemented in 1991 in Canada

  • In-vehicle navigation commenced in Japan in 1996

  • An Automated Highway system (AHS) was tested in Japan in 1995, and put to a test demonstration in the US in 1997

  • Electronic Toll Collection (ETC) has been tested in Japan, Australia, the U.S., China, Hong Kong and Malaysia. It will be widely used in commercial operations within a few years.

  • SCATS (Sydney Coordinated Adaptive Traffic System) was developed in Australia, and has been employed widely in many cities, including Hong Kong, Indonesia, Malaysia, Singapore, etc.

  • FTMS (Freeway Traffic Management System) is under way. ATMS (Advanced Transportation Management System), ATIS (Advanced Traveler Information System), APTS (Advanced Public Transportation System) are being demonstrated as part of ITS application in Korea.

  • ERP (Electronic Road Pricing) systems have been in operation in Hong Kong, Singapore, etc. It will be put to practical use in many countries in a couple of years.

  • Light Rail Transit (LRT) technology has been developed mainly by advanced countries such as Canada, Japan, and the U.S. AGT (Automatic Guided Transit) and monorails are currently in operation in many cities, most commonly in Japan and the U.S.

  • APM (Automatic People Movers) and PRT (Personal Rapid Transit) were developed in the USA, and have been used most commonly around airports. Recently, developing countries such as Korea, Malaysia and Taipei have been promoting LRT systems as an alternative to subways, which are more expensive than LRT.

2. Lessons from Policy Experiences

Land development and transportation planning

It is desirable to build an integrated, comprehensive land-use/transportation plan in many of the cities of developing countries. However, a great deal of the urban development efforts in the region have proceeded carelessly and randomly, without properly working to achieve a balance between expected travel demand and capacity of transport facilities. This failure is partially due to limited budgets, and partially due to the lack of awareness of public authorities and developers.

The goal of land development and transport infrastructure should be to achieve harmony and balance. For that, the integrated land-use/transport development should be planned in a comprehensive manner, for the long-term, through coordinated between land development and transportation planning authorities. In particular, urban railways and other transport systems, such as highway networks, should be provided systematically in accordance with development scale and population density.

Highway expansion and traffic congestion

The expansion of highway facilities is probably most often-used to relieve traffic congestion. However, the experiences of many countries suggest that traffic congestion problems cannot be resolved merely through the provision of highway facilities, since an increase in highways encourages more people to drive their cars. It is important that policymakers realize this.

Control of the car ownership

Undeniably, growing car ownership is an irreversible trend in most Asian cities. And while some countries have attempted to control the growth of car ownership, most restrictive policies have not been very effective. Especially, control policy by regulation is neither effective nor desirable. It is therefore recommended that policies focus on how cars are used, rather than simply looking at car ownership numbers.

Public transportation policies in developing countries
What type of transport system provides the greatest benefit at the lowest cost? What are the most practical and efficient strategies for improving the public transport system? Many of the cities in APEC developing countries have attempted to follow the urban transport systems of advanced countries. Some have planned to introduce advanced rail transit systems, without considering the problems in obtaining financing. As they struggled with massive projects, they allowed the existing public transport service to be deteriorated, averted from political cares such as financial subsidy.

In developing countries, public transportation policies should begin with affordable, practical, and implementable measures. For example, when improving the existing bus system, the government should fully or partially support the proper transfer facilities, bus depots, and maintenance facilities. Bus priority systems, such as exclusive bus lanes or bus priority signals, enable greater efficiency in the operation of buses. In addition, buses should be subsidized in order to maintain appropriate fare levels without compromising quality of service.

Less awareness of the damages from traffic accidents and air pollution
Developed countries seem to view traffic accidents and air pollution in a different way than do developing countries. In general, developed countries identify exactly what the problems are, whereas developing countries tend to not really understand what the problems, despite the fact that they suffer from the negative effects of accidents and pollution more than do developed countries. The continuous increases in traffic accidents and fatalities show that developing countries do not have clear and effective policy measures for dealing with such problems. In fact, some of the developing countries do not even collect data on air pollution.
Private financing for the infrastructure development
Though private financing was thought to be an effective way of solving the problem of inadequate conventional public financing for the infrastructure development, the data suggests that private financing is not a cure-all. Whereas some countries have been successful in financing their infrastructure development through the private sector, other countries have not been able to achieve such positive results. The reasons for their lack of success may include selecting the wrong projects inadequate for private financing, limitations in the domestic capital market, the difficulties of including foreign funds, or inadequate institutions and processing in the private involvement. It is noteworthy that there are many cases of successful highway projects that were financed with private funds, but that most railway projects, which cost much more than highway projects, have had difficulties in gaining private financing.
The government must play a critical role if a project is to successfully induce private funds. The government should provide a transparent policy framework and plan for implementation, as well as coordinate activities between the public entities and private investors concerned.
Gaps in technology development
There exist many gaps in transportation technology development between countries. New transport systems technology, such as AGT (automatic guided transit), MAGLEV, or APM, as well as ITS technology, has been developed only in a few advanced countries. Most developing countries cannot afford to develop such technologies, although it is they who are confronted by the most severe urban transport problems.

Advanced countries must be more agreeable to transferring their technology to developing countries, particularly in solving transportation problems such as air pollution or global warming, which are not local issues, but rather global problems. All member economies in the APEC should be willing to cooperate for solving the common transport problems through the technology transfer.

3. Future Challenges and Tasks

New paradigm: integrated approach in the context of sustainability

A paradigm shift in urban transportation planning, from the conventional demand-led approach to an integrated package approach, has been taking place since the early 1990s. Under the new paradigm, transportation policies tend change from a “predict-and- provide” approach to a “predict-and-prevent” approach.

Integration of land-use planning and transport policy

It is widely agreed that urban transport problems cannot be solved through traditional methods that fail to link land-use and transport policy, and that result in the expansion of transport space and growth in car ownership.

A new approach is an integrated model of land-use and transport system based on the idea of sustainable development. The primary aims of the integrated model are as follows:

  • Reduce travel demand

  • Decrease auto-dependence rates

  • Provide energy-efficient transport modes

  • Greatly reduce auto emission gases and noise

  • Efficiently use and maintain automobiles in order to save energy and reduce pollution

These aims can be best attained through the following key policy instruments (ECMT,1995):

  • Land-use planning and development control policies

  • Pricing policies that affect fuel use, car purchases, modal choice, etc.

  • ITS Technology to raise the efficiency of urban travel systems and promote a shift from car to other modes

  • Commuter transport planning to reduce peak traffic flows

  • Public transport upgrade policies to increase efficiency and desirability

  • Policies to protect pedestrians and cyclists

  • Policies that match logistics to urban conditions.

Revitalization of the public transport system
Establishing a transit-oriented city with a reliable and efficient public transport system can be the key to solving urban transport problems. The main aim of the revitalization of the public transport system is to increase personal choices by improving the alternatives and securing mobility of the people in the context of long-term sustainability
According to the APTA (the American Public Transit Association), there are many socio-economic benefits to be gained through the use of public transport, including:

  • Rational development of the urban areas

  • Reduced traffic congestion

  • Mobility for captive riders and during crises

  • Reduced air pollution

  • Enhanced safety

  • Savings to the consumer

  • Reduced energy consumption

  • Greater retail sales

  • Job creation

  • Increased productivity

There is a need to revitalize the public transport systems in most cities in the APEC region. This can be done by providing new facilities and/or by improving existing facilities.

According to the APTA, the vitalization programs can be divided into two groups: direct vitalization and indirect vitalization.
Direct vitalization programs include:

  • Introducing auto-restricted zones or transit mall

  • Introducing bus priority lanes

  • Linking public transport modes and systems

  • Making transit safer and easier

  • Introducing new technology to public transport

  • Introducing competition into the transit industry;

  • Providing newer, more advanced transit

Indirect vitalization programs include:

  • Redeveloping cities by better integrating the public transport systems

  • Charging congestion fees on roads

  • Raising parking charges

  • Applying various auto demand control schemes

How to reduce traffic accidents and fatalities
To enhance traffic safety, each country must set its goals and policies. In general, strategies to reduce traffic accidents can be categorized into 4 areas:

  • Enhancement of education and public awareness regarding traffic safety

  • Supplementing related laws

  • Expansion of safety facilities

  • Improvement of traffic controls

The road safety problems can be tackled through the more practical safety measures as follows:

  • Intensified speed limit controls

  • Obligatory wearing of seat-belts for drivers

  • Traffic safety programs for children and school districts

  • Program against traffic accidents from large freight vehicles

  • Intensified crackdown on drunken driving

  • Campaign for the prevention of fatigue driving

  • Provision of safety facilities at railroad crossings

Travel demand management, traffic operation control
Travel demand management (TDM) is the art of influencing traveler behavior for the purpose of reducing and redistributing travel demand in space and time.
Conventional TDM strategies include:

  • Improvements in alternative modes

  • Financial incentives for the encouragement of alternative mode usage

  • Information dissemination and marketing activities for alternative modes

  • Supporting services, such as transfer facilities, that make use of more convenient alternatives

“Mobility Management” is a new TDM approach. It entails a series of strategies for reducing the amount of road traffic at a particular site, by encouraging changes in the travel behavior of the people who travel there.

The three main activities of mobility management are:

  • To provide improved information to travelers

  • To influence the choice of transportation modes in favor of more sustainable modes

  • To encourage integrated land-use/transportation planning

The main objective of traffic operation controls is to mitigate traffic congestion for more efficient use of the highways. Directions and strategies for traffic operation and control include:

  • Traffic dispersion and incident management though trip information

  • Enhancing traffic signal system operations

  • Improving traffic signs and markings

  • Use of bus priority lanes

  • Strengthening the role of arterial roads

  • Improving roadway operation systems

Improving air quality and saving energy
Air pollution is the most common form of environmental damages caused by transportation. It is important, therefore, that transportation policies focus on reducing air-polluting vehicle emissions. The following approaches could be effective:

  • Programs to improve the efficiency of transportation modes

  • Encouraging the use of energy-saving public transportation modes

  • Programs through government intervention such as pricing policy, taxation policy, or direct intervention

  • Programs to reduce travel demand

  • Development of alternative motor fuels

Policies to improve operational efficiency include the signal progression, reduction of car usages, and other measures for the improvement of traffic circulation. Travel demand management consists of various operational methods, including:

  • Using economic incentives/penalties

  • Controlling auto-dependence through legal or institutional regulations

  • Promotion of alternative modes

Transport infrastructure development

The need for transport infrastructure development has been increasing steadily, particularly in developing countries. The best revenue source for such development, both in developing and developed countries, is a fuel tax on gasoline, diesel, and LPG. Such taxes can be levied not only by the central government but also by local governments.

In some countries, such as Hong Kong, Korea, Singapore, passenger cars are taxed heavily. Such policies are effective in helping to control growth in the number of cars, as well as in raising funds. Generally, tax revenues are dedicated to a specific fund or account, e.g. for highways or mass transit. In most cases, central/federal government funds are matched with contributions from regional/local governments. The contribution ratio varies, depending on the economic circumstances of the regional/local governments.

Private financing for transport infrastructure

Private sector participation in the infrastructure development is an excellent way of solving public financing problems. Some countries, such as Australia and HK, have experienced success in the use of private financing, but some have not. While there are many successful cases with highway projects, only a few urban railway projects have been attempted, mainly due to the high cost of such projects, especially underground systems.

Risk management is a key element of any infrastructure development project. The Hong government, which has had much experience with private sector-financed projects, recommended the following risk-sharing arrangements:

  • The government assumes the risk of completing the necessary statutory/administrative processes in time to hand over the land to the franchisee with construction of the project.

  • The franchisee shoulders all market risks, with no financial or any other form of guarantee from Government. The financial risks of cost overrun and late completion are borne by the franchisee.

  • When circumstances beyond the control of the franchisee cause a delay in construction, the risks are shared between government and the franchisee, in the form of an extension of the construction/franchise period.

  • The franchisee is given the comfort of the prospect of a reasonable return on his investment through the toll adjustment formula, which sets out the objective criteria for determining toll increases during the entire franchise period.

  • The franchisee spreads his risks under contractual arrangements with his construction contractor and the owner.

The role of the government is important for the active and successful inducement of private funds. The government should provide a transparent policy framework and implementation process. It should also apply a competition scheme based on the market principles. Finally, it must maintain rational regulations in order to reasonably disperse risk and ensure efficiency.

The key roles of the government in the private project are as follows:

  • Effective coordination between relevant government departments to assist the franchisee in meeting his contractual obligations.

  • A level playing field for investors through the establishment of a clear and open tendering system.

  • A clear contractual and legal framework to reduce business risks and to protect the interests of government and road users.

Development of a new transport system and technology
New transport technology includes various developments, from new rail transit systems to ITS technologies.
New rail transit systems, including MAGLEV (magnetic levitation) and APM (Automatic People Mover), are being developed in Japan and the U.S.A. Other countries will soon follow suit.
ITS technology has been recognized as a cost-effective solution to urban transportation problems, but it is still in the early stage of implementation even in advanced countries. It is critical that ITS policy is directed toward building a solid basis for ITS implementation by developing a national-level framework based on a long-term outlook.
Given the situation, here are our recommendations for ITS development:

  • Establish a national organization for ITS planning and cooperation

  • Strengthen continuous funding support

  • Develop a master plan and a system architecture

  • Promote standardization activities

  • Conduct ITS research and development

  • Establish mid/long-term ITS deployment plans

  • Provide technical assistance to local governments

  • Maximize international competitiveness in ITS industries

Improvement of administrative systems
As a city grows towards a metropolitan urban system, the travel demand between the inner part of the city and the satellite cities also increases in scale and complexity. Thus, to provide efficient metropolitan transport service, the administrative system should be developed to provide integrated transport services and comprehensively manage all mass transport systems within the metropolitan area.
There are three general approaches to the handling metropolitan transport administration-related tasks:

  • Re-arrangement of administrative districts

  • Agreement between self-governing authorities

  • Establishment of an independent organization

It is a recent tendency in developed countries to establish an independent organization handling the metropolitan administration tasks by the agreement of local governments and the encouragement of upper-level governments for more effective management of the tasks. The MPO (Metropolitan Planning Organization) in the U.S.A and the STP in France are typical examples.

International Cooperation
Under the framework of APEC, the major objectives of international cooperation in urban transport include:

  • Providing a forum in which member economies can share their experiences with and information on urban transportation

  • Improving the problem-solving abilities of each member economy;

  • Possible assistance, support, or cooperation in financing, technology development, or resource utilization among member economies.

Certain international cooperation activities may aid in the realization of these objectives, in conjunction with existing APEC activities. Possible examples of such cooperative activities include:

  • Establishment and dissemination of an electronic database on the urban transportation

  • Joint surveys and studies on the urban transportation system and service

  • Technology transfer and exchange

  • Construction of a center for transportation research, technology development and personnel training

It would be useful and important to suggest and discuss some practical ways of the activities above. As a first step, the following activities are suggested here.

Activity 1: Establishment and Dissemination of the Urban Transport Database
In order to identify what the problems are, what policies and measures are possible, and what should be done, a database should be established and made available to all member economies. The data for urban transportation on the cities of the APEC region will be collected from each of the member economies, processed in an advanced electronic format, and disseminated though the internet. For them, one of the member economies should lead the task in cooperation with others.
As a lead economy in the area of urban transportation, Korea is expected to be able to do the job, with the consent of the member economies.
Activity 2: Convening the Meetings, such as Workshops and Symposia on the Urban Transportation: Especially, Resumption of the Urban Transport Forum (UTF)
It may also be useful to convene meetings on urban transportation, in the form of workshops or symposia. The continuous sharing of different experiences and information from many different countries and cities will be useful ways of enhancing the each member’s policy building and implementation abilities.
The Urban Transport Forum (UTF) was proposed initially by the then-Korean Minister of Construction and Transportation at the Meeting of Transportation Ministers in the APEC Region, in Washington D.C., in 1995. It was first held in November 1996, in Korea, and then in October 1997, in Chinese Taipei. It has not been held since then.
As a part of the cooperative activities between APEC member economies on the urban transport area, it is desirable that the UTF resume its activity. This will require the interest of all member economies. To reduce the expenses involved in putting on the meeting, the Forum could be held in conjunction with the APEC TPT/WG meeting once a year.
Other cooperative activities may include cooperation in technology and personnel, and the construction of a center for transportation research, development and education. These options should be further reviewed and discussed among member economies.
At this stage, possible and practical activities should be promoted first, under the existing framework of the APEC. Each of us should explore his own systems with open-mindedness, and gain insights from others. We need to learn more things to educate ourselves and enable to better inform them to the policy makers and users.

PART I. Urban Transportation in the APEC Region

: Facts and Findings, Problems, Challenges and Tasks

Ch 1. Introduction

The Asia-Pacific Region consists of a vast area which includes Asia and America surrounding the Pacific, and Oceania. The population of APEC member economies is about 43% of the world population, and more than half of that population is living in an urban environment. The UN estimates that, up to the early 2000s the APEC region alone, along with its continuous economic growth and urbanization, will have more than 250 cities with a population of over one million1.

Countries and cities in the APEC region are, however, diversified very much. While a country has a population of over one billion, some countries have a hundred thousand populations. There are countries with GDP per capita of merely US$ 1,000 as well as countries with GDP per capita of over US$ 40,000. The percentage of urbanization also varies, from a city state to the country with an urban population ratio of a mere 20%. When viewed from the perspective of urban transport, almost all of the conceivable modes of urban transport are widely used. Some cities depend on automobiles and the advanced public transport system, while some depend on small buses and non-motorized vehicles.
Urban Transport Problems
The size and environment of a city and the characteristics of transport facilities and trips are diverse by country and city. However, transport problems exist in every city. Since urban transport problems are attributed to urbanization and motorization historically, most of the countries are facing common problems, with only a difference in the degree of seriousness, such as traffic congestion, traffic accidents and air pollution.
However, there is a significant difference among countries and cities in the type and awareness of urban transport problems, and the relative importance and priorities of policy on the problems are different among the countries. In countries which have experienced urbanization process over a long period of time and maintain a high auto-ownership rate, recent top issues are air pollution and global warming resulted from the excessive auto-dependence and use of fossil fuel. In developing countries, under rapid urbanization, their main transport problems include traffic congestion, poor public transport service and operational inefficiency, rapid growth in auto-ownership, a high traffic accident rate, and unbalance between the increasing transport demand and transport facility supply.
A proper approach to urban transport problems lies in the establishment and implementation of proper policies. Establishment of proper policies requires right information, professional technology, political driving-force and funding. However, most of developing countries of the Asia-Pacific region suffer from the lack of information, technology, financing sources to resolve their urban transport problems.
International Cooperation in Information, Technology, and Financing
Goal of the current research is to examine the situation and problems of urban transport in the countries from the Asia-Pacific Region, and explore ways to resolve the problems. More specifically, through sharing experiences and best policy practices with respect to urban transport, we seek how to share information, learn the lessons, and discuss what can be done by the international cooperation.
Urban transport, however, unlike air or sea transport, is a local issue, which sets a limit to international cooperation. For example, traffic congestion problem appears to be similar its appearances and results, but the solution may not be the same depending on its own urban characteristics, such as history, structure, civic behavior.
In the current research, transport problems in the cities of the APEC region have been examined by the following issues in accordance with the RFP (Request for Proposal) of the APEC.

  • Transport Infrastructure Development

  • Integration of Land Use Planning and Transport Policy

  • Air Quality Improvement and Accident Reduction

  • Revitalization of Public Transport

  • Improvement of Transport Management

  • Development of New Transport and Technologies

  • Improvement of Administration and Institutions

The current report consists largely of three parts. Part I presents Facts and Findings, Problems, Challenges and Tasks for the Future. In Part II, Best Practices and Policy Directions are presented, including case studies. Appendix contains two parts of data set on the transportation of the APEC member economies; nationwide data for 18 member economies (as of 1998) and urban transportation data for 10 selected cities in the APEC region. Since 1990s, studies and reports from the schools, governments and international organizations indicate that future urban transport should be directed toward a balance of public and private transport. They also tell us that such a balance will be structured on the basis of a new epochal paradigm – sustainability.

Ch 2. Urban Growth, Population and Transportation

    1. Patterns and Characteristics in Urban Growth

The economy of the APEC region continues to grow. From 1986 to 1997, the average economic growth rate of the APEC countries was far higher than that of advanced countries and almost close to the world average economic growth rate (Refer to Table 2.1.1). From 1980 to 1995, GDP per capita of the APEC countries increased by 5.8% annually. Some countries, such as Hong Kong, Korea, Singapore and Chinese Taipei showed an increase rate in GDP per capita as high as 10% (Refer to Table 2.1.2).

Trends of Economic Growth (1986-1997): APEC, Developed Countries and

World Average

Unit: %


APEC Average

Developed Countries Average

World Average

















































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