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Trans. Planning Journal
| Title | Financial Sustainability Oriented Strategies for Urban Mass Rapid Transit Operation |
|---|---|
| Author | Cheng-Chiou Chang, So-De Shyu and Shyue-Koong Chang |
| Summary | Considering features of huge capital investment of comparatively low revenue, this paper explores operation strategies of urban rail systems based on financial sustainability. The Kaohsiung Rapid Transit System (KRTS) is used as the case study, where the strategies for financial sustainability have been identified, analyzed and evaluated. In terms of methodology, the five force analysis approach is applied for the profitability assessment while SWOT analysis is used to assess strengths, weaknesses, opportunities and threats of the urban mass rapid transit system. The validity and the feasibility have been considered as bases to classify the short, mid and long-term strategies for achieving financial sustainability. In the Kaohsiung case study, it is found that “the substitute threat” is motorcycles, which is the biggest profit spoliator of KRTS. Moreover, it is suggested that the establishment of the KRTS core competitive ability involved eight major items. Accordingly, this paper proposes short, mid and long-term strategies to increase the revenue and reduce the cost. It is also suggested that the KRTS should, at present, not only consider financial sustainability and properly reduce operation cost, but also seek governmental resources in order to develop a healthy financial environment. According to the financial sustainability point of view, this paper combines five forces analysis, core competitive capabilities and SWOT analysis to develop an evaluation framework of “Financial Sustainability Strategies for Urban Mass Transit Operation”. This framework has transferability to other metropolitan mass rapid transit systems. Moreover, this framework can not only be applied to urban metro system, but also be used for relevant strategy evaluation and development of other railway systems, such as high speed rail or inter-city railways. |
| Vol. | 39 |
| No. | 4 |
| Page | 413 |
| Year | 2010 |
| Month | 12 |
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