Farebox recovery ratio
The farebox recovery ratio (also called fare recovery ratio) of a passenger transportation system is the proportion of the amount of revenue generated through fares by its paying customers as a fraction of the cost of its total operating expenses.
Most systems aren't self-supporting, so advertising revenue and government subsidies are usually required to cover costs.
[edit] Need for government subsidy
There are several practical reasons for government subsidies of public transit. By subsidizing mass transit, it encourages ridership and subsequently lowers traffic congestion. Another benefit is lowering pollution from single occupant vehicles that are no longer on the roads. The third benefit is reducing infrastructure costs needed to build and maintain more street, highway, and freeway lanes associated with increased traffic congestion. These factors considered together also contribute to a better quality of life as defined by global quality of living measurements.[1]
Some[who?] argue that there would be no need to subsidize mass transit in the United State if gasoline (petroleum) were not also subsidized. In 1965, in The Urban Transportation Problem, John R. Meyer argued that the urban transportation problem was actually a pricing problem.[citation needed] Consumers do not pay the actual cost for congestion and the government subsidizes all modes. This creates a modal imbalance between all modes but particularly between subsidized urban highways and transit. A study by the International Center for Technology Assessment found that after accounting for government subsidies, pollution cleanup and other costs, the real price of gasoline is estimated to be somewhere between US$5.60 and US$15.37 per gallon.[2] Were gasoline sold within this range of prices, people might voluntarily drive less, choose more fuel-efficient vehicles, and use mass transit.
[edit] Farebox ratios around the world
The following table lists farebox ratios for some public transportation systems around the world.
[edit] Notes
- ^ http://www.mercerhr.com/summary.jhtml?idContent=1173370>Mercer Human Resources Consulting QOL Reports c2005
- ^ http://www.icta.org/doc/Real%20Price%20of%20Gasoline.pdf
- ^ http://www.mtr.com.hk/eng/investrelation/annualresult2007/MTR_annual_2007_final_web.pdf#page=21
- ^ a b c d e f g h http://www.jrtr.net/jrtr29/pdf/f12_sho.pdf
- ^ http://www.trtc.com.tw/img/all/A61/report2006.pdf#page=45
- ^ a b c d e fPDF Cour des Comptes (2010), Les transports ferroviaires régionaux en Ile-de-france, p. 128, http://www.ccomptes.fr/fr/CC/documents/RPT/Rapport_transports_ferroviaires_regionaux_ile_de_france_novembre_2010.pdf
- ^ http://www.bvg.de/index.php/de/binaries/asset/download/900847/file/1-1
- ^ House of Commons Public Accounts 2005
- ^ [1]
- ^ MARTA FY2007 annual report
- ^ http://204.68.195.57/ntdprogram/pubs/profiles/2007/agency_profiles/6048.pdf NTD agency profile 2007
- ^ a b c d e f g h "Farebox recovery: how 14 systems compare". Railway Age. 2004-07-01. http://www.findarticles.com/p/articles/mi_m1215/is_7_205/ai_n6150069.
- ^ http://www.transitchicago.com/assets/1/finance_budget/2011_CTA_Budget_Book_Web_optimized.pdf
- ^ http://www.dart.org/about/aboutdart.asp
- ^ http://www.ntdprogram.gov/ntdprogram/pubs/dt/2002/PDF_files/2002_Table_26.pdf
- ^ City of Edmonton
- ^ Calculation based on figures of "$159,000 needed daily to cover operating costs and debt service" and "falling as much as $70,000 a day short". Sofradzija, Omar (2006-02-11). "Monorail rating, ridership go down: Bleak outlook puts bond sale at risk". http://www.reviewjournal.com/lvrj_home/2006/Feb-11-Sat-2006/news/5833357.html. Retrieved 2007-06-30.
- ^ Long Island Rail Road Financial Ratios Mar 2009
- ^ http://www.mta.net/about_us/finance/pdf/sandp2004.htm Standard & Poors Credit Rating 2004
- ^ http://www.stcum.qc.ca/English/en-bref/a-rapfin06.pdf
- ^ New York City Transit Financial Ratios March 2009
- ^ Metro-North Railroad Financial Ratios Mar 2009
- ^ http://www.ct.gov/dotinfo/lib/dotinfo/nhr/docs/Chapter-7-Ridership_Fare_Revenue_and_Cost_Database.pdf CT Ridership Fare Revenue and Cost Database
- ^ Transit Performance Measures Matrix 09-October-1997
- ^ Facts - Funding
- ^ [2]
- ^ http://trimet.org/about/funding.htm Retrieved 3 June 2011
- ^ King County Metro System Snapshot
- ^ Q4 2007 Financial Report
- ^ http://www.apta.com/resources/statistics/Pages/NTDDataTables.aspx APTA 2008 Data Tables. Table 26.
- ^ http://www.caltrain.com/Assets/_Finance/Comprehensive+Annual+Financial+Reports/JPB+CAFR+2011.pdf
- ^ TTC Annual Report, 2009
- ^ GO Transit: Year in Review 2007-08
- ^ http://www.translink.ca/~/media/documents/about_translink/governance_and_board/board%202011/year_end_report_2010.ashx
- ^ http://www.wmata.com/about_metro/scorecard/documents/Metro%20Jurisdictional%20Measures.pdf
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