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Sustainable cities, two related challenges: high quality mobility on foot and efficient urban logistics (Part I) ​

Bianca Bianchi Alves's picture
 
Peatonito is a Mexican transport specialist using humor to interact with drivers and create awareness about the need to respect traffic rules. Photo: Peatonito / Flick


Walking is the cheapest, most non-polluting, and possibly healthiest mode of transport. And dense cities seem to be a pre-existing condition for enabling us to meet our daily walking needs, along with diversified land uses, typically called “mixed-use development”. Densification and “mixed-use development” are currently seen as a strategy for designing sustainable cities, and many high-quality mobility plans, which consider the interactions between land use and transport, also pursue this type of urban development.

But densification and “mixed-use development” present (at least) two challenges. The first is how to provide quality pedestrian infrastructure that encourages non-motorized mode choices. The second is how to efficiently deliver the large quantities of goods required in these dense cities. These were the themes of successful seminars recently held in Sao Paulo, Brazil, thanks to a World Bank’s Global Environmental Facility grant.
The “mobility by foot” seminar was a four-day learning event on pedestrian mobility organized by Brazil’s Associação Nacional de Transportes Públicos.  In Brazil, as in most cities in Latin America, around 35% of people’s daily trips are on foot, and there is evidence that this number is underestimated given the limitations of current data collection methods. Given the priority in reducing the impact of our carbon “footprint” (or “carprint”), governments need more evidence and incentives to move the sustainability agenda forward.

Sao Paulo’s Innovative Proposal to Regulate Shared Mobility by Pricing Vehicle Use

Georges Darido's picture
Taxi drivers in Sao Paulo recently protesting the regularization of TNCs such as Uber.
Photo by: Diego Torres Silvestre / Flickr

How to regulate and manage the emerging services of shared and on-demand mobility? This was a topic of much debate during the most recent Transforming Transportation event, a major global conference of transport professionals organized by the World Bank and the World Resources Institute in Washington DC in January 2016. 

One recent development from Sao Paulo stands out as a worthwhile effort to balance the objectives of promoting innovation by Transportation Network Companies (TNCs, such as Uber, Lyft, EasyTaxi, 99Taxi, and others) and ridesharing services (such as BlablaCar, Caronetas, Tripda and others) with the interests of the city and its residents. 

The Municipal Government of Sao Paulo has published for public comments until January 27, 2016  a draft decree to charge TNCs an upfront fee based on an estimate of vehicle-kilometers, also referred to as “credits”, to be used by its fleet of passenger cars in a two month period, plus a surcharge if credits are exceeded.   The idea is that any registered TNC could bid in an online public auction to purchase credits periodically and with certain limitations to ensure competition.  This approach would create a market for these credits and be aligned with the principle commonly known in the vehicle insurance industry as “pay-as-you-drive”, and would allow the city to receive a fee from TNCs for the commercial use of its public road infrastructure, which can then be used to better manage and maintain it.   The decree would exempt free ridesharing services which the city believes would help reduce the total number of vehicle-kilometers on its congested road network.

Rio: A hot city tackles global warming through mass transit

Daniel Pulido's picture
SuperVia, Rio de Janeiro / 2.0 Brasil

It is the end of another hot day in Rio de Janeiro. I’m tired and sweaty after spending the afternoon checking out the progress on some of the city’s train stations, which are being renovated for the upcoming Olympic Games. But I’m also happy, having witnessed the progress made in improving Rio’s suburban rail system, known as SuperVia, which the World Bank has been supporting for the last 20 years.

Will the Asian Infrastructure Investment Bank become the new musketeer?

Arturo Ardila's picture
On Monday, China officially launched the Asian Infrastructure Investment Bank (AIIB) in a ceremony with representatives from the bank's 57 founding-member countries. AIIB will have a capital base of US$100 billion, three-quarters of which come from within Asia.
 
Infrastructure is a growing need for Asia,
and collaboration is critical to filling
gaps. Photo: World Bank

At the inaugural ceremony in the Great Hall of the People, Chinese President Xi Jinping reaffirmed the new institution's mission, saying that "Our motivation [for setting up the bank] was mainly to meet the need for infrastructure development in Asia and also satisfy the wishes of all countries to deepen their co-operation."

Indeed, the AIIB is a major piece of China's regional infrastructure plan, which aims to address the huge needs for expanding rail, road and maritime transport links between China, central Asia, the Middle East and Europe. But the AIIB should also represent a huge opportunity for cooperation not only between countries in the region but also with other multilateral development banks.

Our experience working on transport mega-projects co-financed by several multilateral development banks (MDBs) already shows that this collaboration is much needed and critical for the success and viability of mega-projects. The most recent experience with the Quito Metro Line One Project, for example, shows that the co-financing banks – World Bank, Inter-American Development Bank, Andean Development Corporation and European Investment Bank –  brought not only their financial muscle but also their rich and diverse global knowledge and experience.  Incidentally, because of the Quito Metro project, all the MDBs involved in the project were dubbed as the  “musketeers, ” precisely due to the high degree of collaboration and team work that is making this project a success.

Do better roads really improve lives?

Eric Lancelot's picture
Also available in: Español | Français | العربية | Português

How can improved roads change peoples’ lives? How much do people benefit from road projects? Answering these seemingly simple questions is, in fact, much trickier than it appears.

We recently concluded an impact evaluation to measure the socio-economic impacts of World Bank-financed municipal road improvements on poor rural households in the state of Tocantins, Brazil. After 10 years of study, what were the results and lessons learned? And how did we go about conducting the evaluation?

The study followed a methodology traditionally used in impact evaluations in the social sector and was based on a precedent in Vietnam. Throughout the state, one of the least-developed and least-populated in Brazil, most municipal roads are unpaved with inadequate maintenance. The World Bank’s municipal roads project helped construct 700 concrete bridges and 2,100 culverts crossing rivers and streams, providing year-round access to remote populations that once couldn’t access municipal centers during rainy season.

The anticipated result chain of the project was as follows: improvement of physical accessibility would contribute to increase travel demand to markets, schools and health services. This would, in turn, contribute to improved education, better health and increased business opportunities. Finally, it would result in long-term household income growth.

Our study aimed at measuring these impacts through a “difference in differences with matching,” a method that compares a treatment group (population benefiting from the interventions) and a control group (population that does not), while ensuring similar socio-economic characteristics (or comparability) between groups. An “instrumental variables estimator” was then used to confirm the robustness of the results.

The results show positive socio-economic impacts to rural residents, as well as provides for several policy implications:

The Rio Via Lilas initiative: Using transport infrastructure to help reduce gender-based violence

Shomik Mehndiratta's picture
A train decorated with a "Via Lilas" awareness campaign leaves Rio's Central Station.
Follow Shomik (@shomik_raj) and Daniel (@danpulido) on Twitter

There was cause for celebration at the State of Rio de Janeiro’s Office of Women’s Affairs last week. The office had just launched a new program that provides support and legal assistance to survivors of gender-based violence, which was covered by a wide range of media and commemorated by a visit from senior World Bank leadership to Brazil.

Our team is currently visiting Rio to help with activities for this new program, called “Via Lilas.” Rio’s government has a lot to cheer about; the program is both innovative and significant.  Its primary component is a system of electronic kiosks, placed at stations along Supervia suburban rail lines, which contain helpful information about how women can seek support for gender-based violence.
 
Women using a "Via Lilas" kiosk

The placement of these kiosks is strategic; the Supervia provides some of the poorest communities in the region access to jobs and services. 

​The rail service connects downtown Rio de Janeiro to the periphery in this sprawling metropolitan area of more than 4,500 square kilometers and 12 million people. Outlying parts of the metropolitan area, such as the community of Japeri, can be more than two hours by train to Rio’s Central station.

​The “Via Lilas” kiosks will be placed at high-profile locations along the Supervia system, providing easy information access to the approximately 700,000 passengers who use the rail network each day.

Brazil, on the road to better safety

Eric Lancelot's picture
Paving a highway in Brazil. Photo:
Thomas Sennett / World Bank
Over the past several years, Brazil has shown a commitment to improving road safety with no less than four national programs. These include Parada (literally “Stop”), Rodovida, (which, in Portuguese, is a game of words for “Road and Life”), Vida no Tránsito ( “Life in Transportation”) and BR Legal.

Unfortunately, the country’s performance remains poor compared to many other countries with similar socioeconomic characteristics. In fact, Brazil’s death toll is currently between 23 and 27 deaths per 100,000 inhabitants, which is more than twice the targets of its own national strategy for 2014 and far above the best performing countries in the world, such as Sweden (three deaths per 100,000). Why?

A variety of factors contribute to this situation, from lagging infrastructure quality to the overall organization of the transport sector, characterized by insufficient integration and coordination between jurisdictions as well as across sectors. This is further epitomized by the four distinct national programs mentioned at the beginning of this post.

In mid-2014, Brazil was selected by the UN to organize the mid-term ministerial review meeting of the UN Decade of Action for Road Safety 2011-2020, which will take place in November 2015. A unit within the Prime Minister’s Cabinet (Casa Civil) was appointed to coordinate the national road safety program at the federal level. Soon, the Brazilian government formalized a partnership with the World Bank to advise on a short-term action plan that features three main pillars: infrastructure assessment, institutional organization, and management evaluation and knowledge sharing.

Want Healthy, Thriving Cities? Tackle Traffic Safety First

Jose Luis Irigoyen's picture


Every year, more than 1.2 million people die in traffic crashes worldwide, equivalent to nearly eight Boeing 747 plane crashes every day. As developing economies grow and private car ownership becomes more mainstream, the number of associated crashes and fatalities will continue to rise.
 
The challenge of traffic safety often flies under the radar in cities, where the social and economic challenges of accommodating growing populations take precedent. Without meaningful change, however, the World Health Organization (WHO) projects that traffic crashes could become the fifth leading cause of premature death worldwide by 2030. This takes a particular toll on cities, which are already home nearly half of global traffic fatalities. City leaders must prioritize traffic safety measures to ensure that their citizens have safe, healthy and economically prosperous cities to call home.
 
With Urban Growth Comes Traffic Safety Challenges
 
While there are a number of factors that contribute to traffic crashes, two of the primary challenges are rising motorization trends in cities worldwide and the issue of road equity: the most vulnerable road users, including pedestrians and cyclists, are most impacted by traffic crashes. On top of that, these users, typically lower-income, don’t always have the power or capacity to create the necessary changes.
 
The number of privately owned cars on the road hit the one billion mark for the first time in 2010. If we continue business-as-usual, that number will reach an estimated 2.5 billion cars by 2050. All of these new cars will lead to an increase in traffic congestion in cities worldwide, increasing the probability of traffic crashes and resulting fatalities.

Próxima Parada: El Centro Comercial

Daniel Pulido's picture
Also available in: English
Sigue a los autores en Twitter: @danpulido y @IrenePortabales
 

Estación de Metro de Madrid esponsorizada
Muchos de los sistemas de metro del mundo no consiguen cubrir sus costos de operación con los ingresos tarifarios, mucho menos sus costos de capital. Una comparativa internacional llevada a cabo por las asociaciones de metros CoMET y Nova indica que, en promedio, los ingresos tarifarios de un sistema de metro cubren el 75% de sus costes de operación, mientras que los ingresos comerciales cubren aproximadamente un 15%, lo que supone un déficit del 10%. De igual modo, hemos hecho un cálculo de “números gordos” basado en los estados financieros de diversas empresas de metro de América Latina, corroborando que en promedio éstas presentaron un déficit en operación del 10% en el 2012, el cual asciende al 30% si se incluyen los costes de capital. Por supuesto existen ejemplos de metros que sí cubren sus gastos operacionales como son Santiago de Chile o Hong-Kong, pero otros como México DF necesitan subvención de la mitad de sus gastos de operación. Esta brecha de fondeo es un gran impedimento para mantener la calidad de los servicios y para ampliarlos para poder responder adecuadamente a las crecientes necesidades de desplazamiento.

Lamentablemente, el desfinanciamiento de los sistemas de transporte urbano es un problema generalizado, difícil de remediar con presupuestos públicos sobrecargados y/o soluciones inmediatas que aunque efectivas en teoría son difíciles de implementar en la práctica: el aumento de tarifas, por ejemplo, es una medida políticamente difícil y además genera mayor presión sobre los pobres, quienes más usan el transporte público; cobrar una tarifa que realmente cubra los costes socioeconómicos del uso del vehículo particular (tales como cargos por congestión) como instrumento de financiación del transporte público es también una medida impopular y difícil de implementar.

Dada esta situación, los operadores de transporte están continuamente buscando nuevas formas de recaudar fuentes adicionales de ingresos y así disminuir el déficit de financiación,  en muchos casos a través de asociaciones con el sector privado. A pesar de que muchos de los ejemplos se concentran en países desarrollados, algunos metros en América Latina y en otras regiones en vías de desarrollo están buscando aumentar sus ingresos no tarifarios:

Mind the (funding) gap, next stop: Making some extra money

Daniel Pulido's picture
Also available in: Español
Follow the authors on Twitter: @danpulido and @IrenePortabales
 

A branded metro station in Madrid
Most metro systems around the world are unable to cover their operating costs with fare box revenues, let alone fund capital expenditures. According to data from international benchmarking programs CoMET and Nova, tariff revenues cover an average 75% of operating costs, while other commercial revenues provide about 15%, resulting in an operating deficit of 10%. Similarly, a back of the envelope exercise that we conducted for Latin American metro companies showed that these had an average operating deficit of 10% in 2012. When including capital expenditures, this deficit grew to 30%. There are of course examples of metro systems that do recoup their operating costs, such as Santiago de Chile and Hong Kong, but others like the Mexico City Metro only cover half of their operating expenses with fare revenues. We should all mind this funding gap as it is a significant impediment to maintaining service quality and addressing growing urban mobility needs.

Unfortunately, the underfunding of transit systems can become chronic as public budgets are under growing pressure and the most direct solutions for increasing revenues are hard to implement: increasing fares, for instance, has proved to be politically difficult and disproportionately affects the poor, who use public transport the most; and charging a price that fully covers the social cost of private vehicle usage (i.e., congestion charges) as a way to fund transit is also politically sensitive.

In that context, transit operators are increasingly looking at new ways to tap additional sources of commercial revenue and make up for funding shortfalls, often through agreements with the private sector. Although most examples are concentrated in developed countries, some metro systems in Latin America and the developing world are looking at ways to increase non-tariff revenues:

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