LEGCO PANEL ON TRANSPORT
THE IMPACT OF FARES REGULATION ON RAIL TRANSPORT
- A STUDY FOR MTRC BY THE RAILWAY TECHNOLOGY STRATEGY CENTRE AT IMPERIAL COLLEGE, UNIVERSITY OF LONDON

Introduction

A study was carried out by the Railway Technology Strategy Centre at Imperial College, University of London, for the Hong Kong MTR Corporation. The study is a benchmarking exercise considering the impact of government regulation on fares across a wide range of urban railway systems across the world.

The Benchmarking Exercise

2. To compare its business performance and service delivery with other providers of international standards, the MTR Corporation entered into a benchmarking project with four major metro systems in Europe and North America in early 1995. In early 1996, in order to study the impact of government regulation on railway fares, the Imperial College, University of London undertook to extend the benchmarking exercise to 10 major metro systems around the world including 4 systems in Asia, 3 systems in Europe and 3 systems in America. Names of individual railways are not to be disclosed as required in the agreement among all participating systems.

3. The study undertook to assess the performance of urban rail systems and the influence on business performance under differing regulatory frameworks. The objective of the analysis was to understand what contributes to superior performance, considering environmental factors, demographic, technology, management and the regulatory dimensions of each system.

William R. Steinmetz

4. Mr William R. Steinmetz, Director of the Railway Technology Strategy Centre at Imperial College, the University of London was in charge of the study team. The Centre has an objective to serve the railway industry as a centre of excellence in the strategy and management of technology, as well as being specialists in certain specific technology areas. It provides an annual benchmarking service to eight of the world’s largest heavy rail metro operators, comparing key performance indicators and developing "Best Practice" recommendations.

5. As the Director of the Railway Technology Strategy Centre, Mr William R. Steinmetz has directed projects for Railtrack, Porterbrook Leasing, British Railway, Ansaldo Transporti, London Underground, RATP Paris, BVG Berlin Metro, Hong Kong MTRC and the New York CTA.

6. With over 25 years of transport industry experience, Mr William R. Steinmetz has participated in a number of key railway projects. To name a few, they are:

  1. In 1992, he managed the preparation of a set of computer based costing models for the privatization of British Rail.
  2. In 1990, he was the partner-in-charge of a diagnostic review of freight operations at SNCF (the French National Railway).
  3. In 1990-93, he served as advisor to the Northern Irish Railway (NIR).
  4. In 1989-91, he worked on a commercialization strategy for the passenger railway network operated by SRA (State Rail Authority) of New South Wales, Australia.
  5. In 1988, he was project manager of a diagnostic review of the capital investment performance of DB (German Federal Railway).
  6. In 1988, he worked with London Underground to recommend a balanced commercialization strategy.
  7. Other diagnostic reviews of passenger railways include the Long Island Railroad in New York in 1982, the BART System in San Francisco in 1980, the CTA System in Chicago in 1983, the MTA’s subway system in New York in 1979, the Metro North System in New York in 1979, the SEPTA system in Philadelphia in 1978, and the London Underground in 1984.
  8. Other operational reviews of passenger railways, as project manager or partner-in-charge, include the WMATA system in Washington, D.C. in 1982, the PATCO system in Philadelphia in 1983, SRA in 1991, and Long Island Railroad in 1980.

The Presentation

7. Mr William R. Steinmetz from the London University has been invited, in person, to give a presentation on the findings of the study, ‘The Impact of Fares Regulation on Rail Transport’, and to answer members’ questions on Friday, 13 December 1996 at the meeting of the LegCo Panel on Transport.

MTR Corporation
11 December 1996
(MTRC\MS\Legco11)

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