PUBLIC BIKE SYSTEM – FEASIBILITY STUDY

TransLink
Public Bike System
Feasibility Study

PBS Feasibility Study

March 2008
Quay Communications Inc

Quay Communications Inc. TransLink March 2008 Public Bike Study

 FOREWORD

cover page photo credit - Bicing, Barcelona by photographer vdbdc

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 EXECUTIVE SUMMARY

Executive Summary
The purpose of this study is to evaluate the feasibility of a Public Bicycle System (PBS) for Metro
Vancouver, review the range of possible financing and administrative models, provide an
assessment of the potential costs, and recommend a business strategy.

Ultimately, this study concludes that PBS delivers significant real benefits and is feasible in parts of
Metro Vancouver where residential and employment densities are high, land uses are diverse, and
good cycling facilities are available. The study recommends that PBS be positioned as part of the
public transit network and that TransLink should be responsible for its delivery in the same way that
it owns, plans, and funds other transit services.

Background
A typical PBS consists of a fleet of bicycles, a network of automated docking stations to store and
access the bicycles, a user registration system, a system status information system, a maintenance
program and a bicycle redistribution mechanism. Existing systems are funded by a mix of
subscription revenues and general public revenues, including revenues derived from the sale of
advertising rights and parking charges. All existing systems are controlled by a public agency
[municipality or transportation agency] but a number of operating models are in use ranging from
completely contracted out services to in-house systems.

Several major European cities, Paris, Barcelona, and Lyon in particular, have launched major Public
Bicycle Systems that have redefined the perception and the potential of the bicycle as a mainstream
public transit mode. These cities have been successful in introducing the bicycle as a core public
transit mode specifically aimed at short trips under 5km. The German Rail Agency has introduced a
similar system, Call a Bike, operated by its DB Rent division in six German cities to facilitate inter-
city travel and service customers at either end of rail trips.

Table 1 Mainstream Public Bicycle Systems

Paris Barcelona Lyon Frankfurt Montreal Vancouver
Agency Municipal Municipal Municipal Federal Regional TBD
Operator JCDecaux Clear JCDecaux DBRent Stationnement TBD
Channel Montreal
Population 2,153,600 1,605,600 466,400 652,600 1,039,500 578,000
# Bicycles 20,600 3000* 3000** 720 2400 3800
# 104 535 155 906 433 152
Residents/
Bicycle
Operating Third-Party Third-Party Third-Party State Railway Regional TBD
Agency Contractor Contractor Contractor Agency
Funding Subscriptions Subscriptions Subscriptions Subscriptions Subscriptions TBD
& Outdoor & Parking & Outdoor & General & Parking
Advertising Revenues Advertising Revenues Revenues
* increasing to 6000 in 2008
** increasing to 4000 in 2008

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Benefits
Large scale PBS in Paris, Barcelona, and Lyon have been attracting the attention of transportation
and sustainability professionals around the world. With up to 15% of the urban population
subscribing to the service and uniformly positive customer satisfaction ratings, the systems are
providing a fast, convenient and flexible transportation option for shorter distance trips and are
achieving car trip reductions of up to 5%. PBS extends the reach and quality of the conventional
transit system at a comparatively low cost especially in congested urban areas where the potential
for conventional transit service improvements is constrained. By acting as a “door-opener” to
increase the acceptance of cycling as an urban transportation mode, PBS also leads to significant
increases in levels of private cycling.

The ready availability, high visibility and low barriers to entry of PBS seem to trigger the same social
change in transportation behaviour that brought recycling, once a fringe activity, into the
mainstream. Bicycle trips are zero emission and cost effective, and a streetscape peopled with a
mix of pedestrians, cyclists and fewer, slower vehicles is both less stressful and more liveable than
a busy auto-only arterial. The PBS-driven increase in cyclists has the effect of making cycling safer
for everyone, even as the systems increase the numbers of bicycles on the streets tenfold, incident
counts have remained stable. PBS provides good ‘green collar’ jobs, including manual and semi-
skilled positions. In some locations these positions are used in support of job re-entry or other social
programs.

Feasibility
PBS feasibility is affected by both environmental circumstances and system design. In order to
optimize uptake, PBS requires an environment where many short and medium length trips currently
occur or could occur. These areas are distinguished by high population and employment densities
and a diverse mix of land uses. The environment also needs to be sufficiently bikeable, as
determined by the quality of the cycling network, the steepness of local topography and local
climate. Based on an analysis of these indicators, multiple neighbourhoods in Metro Vancouver are
considered strong candidates for a successful PBS. Ratings by characteristic are shown for some of
them in the following table:

Table 2 Assessment of Metro Vancouver Areas

Population Demographics Employment Cycling Mode Transit Mode
Density Density Split Split
Metro Vancouver High High Very High High Very High
Richmond Town High Medium Very High Medium High
Centre
Lonsdale Quay High Medium Medium Medium Very High
Joyce- High Medium Medium Low High
Collingwood
Metrotown High Medium Very High Low Very High
Edmonds High Medium High Low High
New Westminster High Medium High Medium High

In terms of system design, a viable PBS requires a network area of sufficient size and density. The
network area should be large enough to capture many origins and destinations. For Metro

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Vancouver, the downtown peninsula is the minimum recommended start-up area while the extended
Metropolitan Core is the preferred recommended start-up area, see figure 1. Ideal density is 300
meter spacing between docking stations. The station locations must be prominent and visible,
equipment must be suitable for high volume self-service use in the public domain and the fare
structure should optimize use by offering the first half-hour free. Best practice emphasizes the need
to launch a system with sufficient initial density to ensure its success.

Figure 1 Possible Phase 1 Network Areas ($ millions)

Scenario 1 [Minimum] Scenario 2 Scenario 3 [Preferred]

# Bicycles: 1,000 # Bicycles: 2,700 # Bicycles: 3,800

# Docking Stations: 70 # Docking Stations: 180 # Docking Stations: 250
Capital Cost: $5-10 Capital Cost: $13-24.5 Capital Cost: $18.5-34.5
Total Expenses: $3-5 Total Expenses: $5-10 Total Expenses: $7-12
Total Revenues: $1.5-2.5 Total Revenues: $3.5-6.5 Total Revenues: $5-9
Operating Deficit: $1.5-2.5 Operating Deficit: $2-3.5 Operating Deficit: $2-4
Revenue/Cost Ratio: 50% Revenue/Cost Ratio: 65% Revenue/Cost Ratio: 70%

Costs
There are four major cost areas in a PBS:

1. direct capital costs for procuring and installing the system [bicycles and terminals];
2. direct operating costs for running the system;
3. associated capital costs for building cycling infrastructure and needed streetscape
improvements [lanes and docking station areas];
4. associated operating costs for maintaining the on-road cycling and docking station
infrastructure

The preferred network area for phase 1 (Scenario 3 in Figure 1) calls for 250 stations and 3,800
bicycles, with stations placed every 300m. This configuration is forecast to provide between 5 million
– 10 million trips per year and direct capital costs are estimated at $18.5- $34.5 million. Direct
annual expenses are estimated at $7-$12 million with an estimated $5-$9 million recovered in direct
system revenues. User fees are projected to recover up to 70% of operating costs so that the
annual operating deficit would be $2-$4 million.

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 EXECUTIVE SUMMARY

Associated capital costs for PBS fall into two categories: improved on-street bicycle facilities and;
and docking station streetscape improvements. Given the breadth of benefits associated with a
PBS scheme four-way funding for these associated capital costs should be pursued, including
federal, provincial, regional and local sources. Host municipalities should be responsible for the
local share, not to exceed 50% of the cost for infrastructure improvement in their area.

The target bicycle network density for the PBS service area is 2 km/km2 or greater. Infrastructure
costs for grade separated cycle lanes are estimated at $1.25 - $1.5 million/km and approximately
$500,000/km for painted lines and periodic curb bulges.

Operating Models
There are a number of operating and financing models for PBS currently in use. The recommended
structure for a Metro Vancouver system would see TransLink take ownership of the PBS service
with operations to be provided by a contract operator reporting to a new or existing TransLink
operating subsidiary. It is particularly important that TransLink be the owner to ensure a consistent
standard of service and inter-operability across Metro Vancouver. A contract operator is
recommended as the main activities of the new company will include procurement and maintenance
of a fleet of equipment unfamiliar to any of the existing subsidiaries, a significant emphasis on
technology (for the backend system) and, should implementation be desired prior to the 2010
Games, an accelerated implementation schedule. Implementation of PBS may be the impetus to
structure a new TransLink subsidiary focused on the delivery of services within the Transportation
Demand Management (TDM) scope. Insurance should be carried by TransLink using the authority’s
self-insurance scheme.

Successful implementation and ongoing operation of the PBS will require active municipal
partnerships for tasks such as enhancing and maintaining cycling infrastructure, selecting docking
station sites, making the requisite public right of way available at no cost and facilitating the
construction of docking stations (e.g. permitting). A strong financial commitment by municipal
partners will ensure active partnership in these equally crucial non-financial aspects. In
consideration of the considerable local benefits accruing to host municipalities, including the
provision of a fare structure where the first 30 minutes are free host municipalities would be required
to provide at no cost to TransLink, 6m of on-street, sidewalk or other public realm space [in highly
visible locations and adjacent to all major trip generators/attractors] every 300m within their PBS
network region. This is estimated to total 12,860m2 in the Metropolitan Core. Host municipalities
may elect to offset any resultant losses in parking revenues through any funding mechanism at their
disposal including general revenues, outdoor advertising revenues etc.

Financing Models
Various models were considered in the development of this report and are discussed in detail in the
Business Strategy. Based on the deliberations of the Bicycle Working Group the following
recommendations have been adopted.

Capital funding for the new system should be contained within TransLink’s annual capital plan –
including fleet procurement, station design and build, maintenance facilities, service vehicles and IT

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 EXECUTIVE SUMMARY

systems; but excluding on-street cycling facilities and docking station streetscape improvement
costs.

Application for infrastructure funding should be made to the federal Ministry of Transportation, the
provincial Cycling Infrastructure Partnerships Program, the Federation of Canadian Municipalities
Green Municipal Fund and any other relevant funding programs.

Operating costs should be included within TransLink’s annual operating plan, in the case of a
Metropolitan Core PBS with 3540 bicycles and 235 stations, and based on a medium use scenario,
system revenues are estimated to reach $6.4 million with annual operating costs of $7.6 to $10.3
million. Based on these assumptions the annual operating requirement could range from $1.2 to
$3.9 million.

Figure 2 Recommended Operating & Finance Model

Fare Structure
The PBS fare structure is intended to encourage frequent short-term use by having a low annual
registration fee and making the first 30 minutes free. Longer duration use is discouraged by the
rapidly escalating rates for additional half-hours which also make it more attractive to rent a bicycle
for half a day from an existing bicycle rental business. The 30 minute free feature is strongly
correlated to system uptake, such that even a special 30 minute fare of $1 would negatively impact
use and reduce the benefits to individuals, the host municipality, TransLink and the environment
that the program is intended to generate.

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 EXECUTIVE SUMMARY

Table 3 Proposed Fare Structure for Metro Vancouver Public Bicycle System
Tariff
Registration $50/year, $10/week, $2/day
1st 30 minutes Free
2nd 30 minutes $1.50
3rd 30 minutes $3.00
Each additional hour $4.50
Deposit/Caution $250.00

Advertising Rights
It is not recommended that Metro Vancouver PBS Operating Contracts be packaged with
advertising rights; however respondents to any future RFP should be given the opportunity to
indicate how they might generate funding in support of their proposal – including recommending
schemes that include advertising rights. It will be up to the host municipality to judge if the
advertising proposals are acceptable, and all advertising revenues from municipal owned locations
would flow to the municipality. Advertising on the bicycles themselves would fall under the Transit
Advertising contract currently in place between TransLink and Lamar Advertising. Revenue from
bicycle advertising or a sponsorship program would be to TransLink’s account.

Conclusion
Metro Vancouver is considered one of the most liveable cities in the world and has a world-class
transportation system. The topography and density of selected neighbourhoods make them strong
candidates for public bicycle systems – caution must be used in predicting North American
behaviour based on European experience but the indicators suggest that results here will mirror
other PBS.

By improving mobility options, increasing cycling activity and reducing automobile travel, PBS can
help achieve a variety of planning objectives, including congestion reduction, road and parking cost
savings, consumer savings, improved transport for non-drivers, energy conservation, emission
reductions, and improved public fitness and health. PBS support local economic development and
help create a city that is better prepared for a future in which fuel prices rise and urban populations
increase.

This study concludes that a PBS would be a meaningful addition to the current mix of public transit
services in Metro Vancouver and has real potential to make a cost-effective contribution to the
overall sustainability and quality of life in the region.

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