- In the Farebox Recovery Calculations, Rail Operating Costs have increased by $17.9M.
- However, only $8.4M of rail costs were funded as Direct Operating Costs in 2017/18
- Over half the $17.9M rail operating cost increase is from an additional rail cost item.
Post Location: <span>Wellington Region</span>
- The new fares will lead to a net loss of $3.0M in Bus Fare Revenue and $2.7M in Rail Fare Revenue.
- Bus fare revenue is paying a much higher percentage of bus operating costs than rail fare revenue is for rail costs This means that for every $1.00 a Wellington bus user pays in fares, 9 cents will be going towards the cost of rail services.
- In 2016 the GWRC announced it expects a multi-million dollar PT cost saving from its new passenger rail PTOM contract with TransDev.
- In 2017 the GWRC announced it also expects multi-million dollar PT cost savings from its new bus PTOM contracts.
- The 2018/19 Fare Review reported these Farebox Recovery Ratios: Rail 49.9%; Bus 59.6%; Total 55.1%.
- The report recommended a 3% fare increase is needed.
- The supporting spreadsheet based these ratios on the following: Rail Revenue: $51.4M; Rail Cost: $103.1M; Bus Revenue: $50.3M; Bus Cost: $84.4M.
- This 2017 Fare Structure Review recommended a range of fare changes including for students, free transfers for buses and free buses for rail monthly pass holders outside Wellington City. These fare changes will lead to a $7.5M fare revenue loss.
- Therefore the review included compensatory a 3% fare increase to recover $2.1M in extra revenue
- The supporting spreadsheet contained the detailed modelling behind the new fares and confirmed the 3% fare increase was based on PT costs remaining the same as 2017/18 at $192.3M.
- The 2017/18 fare review reported these Farebox Recovery Ratios: Rail 57.3%; Bus 59.3%; Total 58.2%.
- The review recommended no fare increase is needed.
- Surprisingly, the supporting calculation spreadsheet had different Farebox Recovery Ratios: Rail 59.3%; Bus 56.0%; Total 58.2%.
- The supporting spreadsheet based these ratios on the following: Rail Revenue: $50.5M; Rail Cost: $85.1M; Bus Revenue: $57.7M; Bus Cost: $103.1M; Total PT Revenue: $112.0M; Total PT Cost: $192.3M.
- The GWRC has its own Farebox Recovery Policy to comply with the NZTA National Farebox Recovery Policy.
- The GWRC Farebox Recovery Policy currently states that fares must contribute between 55% and 60% of the direct operating costs of the region’s bus services; 55% – 60% of rail services and 55%- 60% of the public transport network as a whole.