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​Important experiences and lessons from integrated fare systems

Jorge Rebelo's picture
Although integrated modal fares are important innovations for low-income riders, these systems can be plagued by many problems.

For example, in Rio de Janeiro — despite efforts by the government to convene all transit operators during the planning stage —private rail-based operators were reluctant to participate in the design of the system because they feared that the bus system would stand to benefit more from integrated fares.  In the end, the government went ahead with its plans.

Today, although the integrated fare system benefits the poor, it fosters the inefficiency of inter-municipal buses that receive a subsidy that allow them to survive despite low load factors. Several of those routes should have been integrated with rail. There was also fraud by van operators using transport routes and the system’s smart cards. Consequently, the subsidy rose very quickly. 

Even so, Rio de Janeiro’s system is a blessing to low-income users, and overall ridership increased. If challenges are met, the system can work better for everyone. Efforts must be done to fine-tune the system, close loopholes, decrease fraud and reward the most efficient parts of the system.

In my previous blog entry, I wrote about nine suggestions for designing and implementing integrated fare systems. Now, in addition to the initial example from Brazil, I’d like to share a few other experiences and lessons regarding integrated modal fares.

When there is a regional transport agency, an integrated fare system’s level of service can be monitored from a central location, provided buses are equipped with GPS and smart card systems (as in Santiago, Chile).

Nine suggestions for designing and implementing integrated fare systems

Jorge Rebelo's picture
Integrated modal fares, which allow riders to access multiple forms of transit (such as trains or buses) using a single ticket or card, is an important poverty alleviation tool. This innovation is especially critical to low-income transit users that might be unable to afford the sum of multiple fares on their way to jobs, schools, health clinics or other facilities.

A wide range of local governments around the world have introduced integrated modal fares as a way to reduce the burden on low-income users. But the design of these systems requires a very thorough analysis of the urban transport modes being integrated. Bad design may foster inefficiency and lead to huge subsidies that the government, and ultimately the taxpayer, must pay for.

Here are some tips on how to prepare for the design and implementation of integrated fare schemes:

Co-creating solutions for smart cities

Victor Mulas's picture
Earlier this year, the World Bank partnered with Chile's Ministry of Transport and Telecommunication on a project to innovate technology and mobility solutions: Smart City Gran Concepción. So far, the project has met two milestones, ideation (in January) and formation of a diagnostic and strategic support plan (in March).

Last month, it was time for the project's third phase: a competition to surface new ideas for mass transit options, road safety and mobility information. This event, called the MueveTT Innovation Challenge, brought together 14 teams of people to brainstorm ways for the government, companies, universities, organizations, citizens, and others to work together toward the vision of smart cities.
Co-Creation of Solutions Competition

Is Public Transport Affordable?

Julie Babinard's picture
When planning transport systems in developing countries, one of the main challenges is to evaluate the proportion of income spent by poorer households on transport as well as in understanding transport patterns in relation to residential location, travel distance and travel mode. High real estate prices in urban centers often force low-income households in developing countries to live farther out in the periphery, with consequences on the way urban agglomerations develop and with subsequent effects on the levels of motorization, congestion, local air pollution, physical activity and the expansion of urban poverty.

Use, transparency and reuse – how the transport sector in Mexico is being transformed by open data

Shomik Mehndiratta's picture
Also available in: Español

Follow the author on Twitter: @shomik_raj

On a recent trip to Mexico City, I had the pleasure of participating in three events that really brought home the transformative power of the open data and open source eco-system that is becoming an ever more important element of our work in transport.

First I joined the Secretary of Mobility for Mexico City to inaugurate an open data-based system for alerting public transport users in this city of 8 million of any disruptions to the city’s multimodal transport system consisting of an extensive metro system, a suburban rail line, 5 lines of the Metrobus Bus Rapid Transit system (BRT), an electric trolley system, as well as a substantial publicly operated bus system.  The alert system was built using open-source software on an open standardized data set of schedules supported by the Bank last year (read more about that initiative led by my colleague Catalina Ochoa).  Not only does this service deliver value for Mexico City commuters immediately, but it also allows any other city that has its data organized in a similar standard GTFS (General Transit Feed Specification) format (over a 1,000 cities do) to use the same code developed for Mexico City off GitHub, a web registry.  Moreover, the open standardized formats let developers in Mexico City or elsewhere build apps that use this information. The market for these applications is potentially global, spurring innovation for user-oriented applications in public transport: there are already many hundreds of GTFS based applications.

The Way We Move Will Define our Future

Marc Juhel's picture
Mobility is a precondition for economic growth: mobility for access to jobs, education, health, and other services. Mobility of goods is also critical to supply world markets in our globalized economy. We could say that transport drives development.

Meet me at the back of the bus

Marc Juhel's picture

If you miss me at the back of the bus, and you can't find me nowhere
Come on up to the front of the bus, I'll be ridin' right there
I'll be ridin' right there
I'll be ridin' right there
Come on up to the front of the bus I'll be ridin' right there