Research on management model of public transport in vietnam cities

Urbanization is an inevitable and objective trend of the development in many countries. One of urbanization consequences is the pressure on urban transport problems, especially in developing countries as Vietnam. Recently, the traffic density in big cities, especially in Hanoi and Ho Chi Minh City, is more and more increasing, leading to the situation of increasing traffic congestion, decreasing average traffic speed, increasing traffic accidents and environmental pollution at the alarming level. These issues have been becoming heavy challenges for Vietnam industrialization and modernization process. In order to solve above issues, one of important solutions is to develop public transport and to appropriately manage the usage of private vehicles. In which, the completion of management model for public transport is one of important content to implement the above strategy. Based on the need from real life, the study focused on research of state management model for public transport in Vietnam cities during the period up to 2020 and oriented towards 2030. Contribution results of the study are as follows: (1) Systematization and diversification of argument foundation for state management in urban public transport in which the development strategies, function and task and types of management models, lesson learned from urban transport development in the world are deeply analyzed and systematized. The new recoveries are: - Scientific foundation and confirmation: the urban transport development oriented towards public transport is important factor for urban sustainable development. - From general methodological approach, the study concretized the effectiveness evaluation norms for state management model in urban public transport. - Summary of lesson learned from the success and failure of urban transport in the world in aspects of awareness, planning, development of public transport and intervention roles of Government

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tics c- Objectives of the study Based on reviewing related research results at home and abroad, the study completes the theory as well as realistic basement for the state management model of public transport in Vietnam urban areas. The study aims at solving inadequate issues of management models which are currently applied in Vietnam as well as to propose the state management model for public transport applicable in Vietnam, including all of public transport modes and in corresponding with each category of urban areas until 2020, oriented towards 2030. d- Research methodology In order to achieve proposed objectives, the methodology of dialectical materialism and historical materialism is applied to comprehensively and objectively analyze the issues. In the principle of systematic and simulation approach to analyze, the nature and management of public transport are clarified. By synthesis and modeling method, the argument of state management model in public transport is established based on Vietnam reality and pratice. e- Contents of the study. Beside the introduction and conclusion parts, the study report comprises of 3 chapters which are: - Chapter I: Foundation of state management model for urban public 4 transport; - Chapter II: Analysis and evaluation in management model of public transport in Vietnam cities; - Chapter III: Proposal of state management model for public transport in Vietnam cities. Chapter 1: FOUNDATION OF STATE MANAGEMENT MODEL FOR URBAN PUBLIC TRANSPORT 1.1. Urbanization and urbanization consequences 1.1.1. Overview of Urbanization Urbanization is a process of works movement from the initial activities to more focused and centralized activities such as production industry, construction, transportation, recovery, financial service, socio-culture, science and technology,… It is also defined as the process of works movement from agricultural activities to non- agricultural focused activities in appropriate areas, so-called urban areas. 1.1.2. Urbanization consequences (i) Increasing urban population and size of urban areas (ii) Changing the labor structure of residents (iii) changing the functions of resident areas and regions (iv) Increasing the settlement and labor fluctuation. Increasing of transport demand and the pressure of solving urban transport problems as well as environmental assurance are more complicated. 1.1.3. Urbanization and urban areas classification in Vietnam According to current regulation, urban areas in Vietnam are cities, county towns and towns where population is more than 4.000, among which 65% is non-agricultural labors and classified into 6 urban categories (Special urban area, category I, II, III, IV and V) based on the urban function, population, area, and other socio – economic conditions, especial criteria regarding urban infrastructure. The urban areas from category III are named as “City”. 1.2. Overview of Urban Transport and Public Transport 1.2.1. Urban transport and the roles of urban transport in sustainable urban development The “Sustainable development” mentioned in the study is: “the development to meet human demand at present without influencing the capacity to meet the demand of future generation”. Sustainable urban transport development is: Establishing a transport system which plays a good role in supporting and promoting the urban economic development while minimizing un-recycled resources usage; Assuring transport rights and fulfilling transport demand of people at reasonable social expenses; Developing without environmental pollution and with the assurance of environment protection. 5 Roles of urban transport in sustainable urban development: An urban area can only sustainably develop with a basement of a sustainable urban transport system, and vice versa, a sustainable urban transport system has to be located in a sustainable urban area. Developing an urban transport system with the orientation towards public transport is an important element in order to solve the above-mentioned issues. 1.2.2. Urban public transport system Public transport Definition: is a public transport service by different transport modes in order to meet traffic demands of urban, suburban and regional residents. According to this criterion, taxi and pedicab services are modes of public transport. However, in classification of public transport modes, there are 2 categories such as transport mode based on operational chart (such as bus, metro, etc) and not based on operational chart. Private Transport: is an option in which vehicle is directly driven by its owner in order to serve personal traffic purpose such as personal cars, motorbikes and bicycles. Components of public transport system are: (i) Vehicles; (ii) Infrastructure; (iii) Route network; (iv) Driver; (v) Operation. Characteristics of public transport are considered in aspects of operation scale; vehicles, investment capital; operational costs; and investment feasibility. Roles of urban public transport: - Development oriented toward public transport is the significant factor of sustainable urban development. It is specified as follow: (i) Considering urban transport as an object of urban development plan and land use plan. Taking mass public transport to be a spinal column for urban sustainable development; (ii) the public fleet planning must be ahead of transport infrastructure planning; (iii) encouraging the use of public vehicles as well as control the use and ownership of private vehicles, especially cars. - Public transport is the significant factor to save time for people’s traffic in the urban areas, and contributing into increasing social working productivity. - Public transport contributes in ensuring the safety and health for people. - Public transport contributes in urban environmental protection. - Public transport is the factor to ensure the social safeguard. 1.3. Background for state management in urban public transport 1.3.1. Overview of state management in urban transport The nature of state management in urban area is an intervention of Government in urban socio-economic development by authority in order to lead urban areas to become 6 the regional centers of economy, politics, culture, technology and international exchanges. State management in urban transport is shown in main following aspects: Establishment and completion of field law system; Issuing policies; Construction investment planning; Infrastructure maintenance; Technical application and training; international cooperation, etc. 1.3.2. State management in urban public transport Main functions of state management in urban public transport: - Orienting strategies of public transport development in corresponding with general transport development orientation. - Public transport development plan preparation must be ensured to be consistent and compatible with the master plan and transportation plan. - Creating an equalitarian business environment. - Regulating, supervising and handling violations. 1.3.3. State management model in urban public transport State management model definition: is an entity comprising of components which have certain functions, rights and responsibilities, have interrelationship and be arranged according to certain phases and levels in order to implement management function for achieving proposed objectives. Management model classification: By the level, management model may comprise of Government level, City/Provincial level, Department/District level, Division/ Ward level. By the function, management model comprises of Legislature (National Assembly), Executive bodies (Government, Ministries, People’s committee), Judiciary (people’s procuracy, courts of justice) Forms of management model: In the world, at the local level, there are a number of basic models including: council-based management model and centralist management model. Theoretically, there may be a number of management models such as online management model, function-based management model, online function-based management model, online consultancy-based management model, etc. Principles and requirements in constructing the management model: (i) Management model must serve actual demand with certain benefits; (ii) correspondence with the principles of social labor division; (iii) ensuring the consistency; (iv) appropriately dividing authority; (v) clearly determining scope of management; (vi) ensuring timely and exactly collection of information; (vii) 7 Management model must be in corresponding with characteristics and scope of managed objects. Factors affecting management model: Vision and macroscopic policies; Level of government intervention on the market; Objectives, tasks and rights of agencies; Political institutions and socio-economic conditions, etc. Steps of constructing management model: - Determine the overall goal at the macro level. - Define state and enterprise management functions. - Analyze managed objects (public transport system). - Determine management tools. - Propose the model (location, name, operational mechanism,...). - Complete definition of tasks and functions. 1.3.4. Effectiveness evaluation of state management model in urban public transport As the new view of approach, it is necessary to evaluate the effectiveness of management model on both the joint responsibility of divisions as well as the entire system. A good management model is the model which clearly shows functions and tasks but not overlap with other divisions’, divisions’ functions and tasks are clearly defined which clearly assign personal responsibilities, and the process of information collection and handling as well as decision making is efficiently and effectively implemented. Methods to effectiveness evaluation of urban public transport management: - Statistic Analysis. - Analytical Hierarchy Process. - Expert interview method - Cost Benefit Analysis - Multi – Criteria Analysis, etc. Principles to effectiveness evaluation of urban public transport management: - Evaluating the effectiveness of public transport on the viewpoint of system and general socio-economic efficiency by shadow price. - Ensuring the harmony of goal and objectives of each object involved in public transport system. - Ensuring the objectiveness of evaluation. - Evaluating by the viewpoint of development Norms to evaluate the effectiveness of state management model in public transport 8 - Norms of evaluating the improvement in accessibility, service quality and capacity to meet people’s traffic demand. - Norms of evaluating the assurance of traffic safety - Norms of evaluating the friendly effect to environment - Norms of evaluating the uses of energy in public transport - Norms of evaluating the improvement of investment efficiency and government subsidy in public transport and the improvement of urban economy. 1.4. Lessons learnt in public transport management from the world 1.4.1. Public transport development policies In the case of countries clearly defined objective in sustainable development, public transport is preferred although private transport is still developed. This issue contributes in parallel development of public transport and private transport, creates a consistent and combined system of transport which mutually supports for each other but not mutually conflict. 1.4.2. Intervention level of Government in the market Recently, the general trend is gradually moving to competitive market in order to encourage the service providers to reduce expenses. However, in the case of public transport development to reduce private transport, competitive business model may not be the best option due to service quality is always considered to reduce business costs. 1.4.3. Regulations for public transport management The managed objects are mostly similar but the participation of management agencies may be different depended on the size and complication of public transport service. Subsidy rates, services quality, service fares, level of synchronization in public transport are different among urban areas. 1.4.4. Organizational Structure for public transport management The public transport management models are mostly online-function based management models. In some large urban areas, the public transport management agency also have the function of preparing the master plan as well as combination of urban transport modes. From the fact of development in the world, the study found out the basic reasons of success or failure in urban transport development, such as (i) awareness shown in urban development policy; (ii) master plan; (iii) public transport development; and (iv) Government regulation role. Summary of Chapter 1: In chapter 1, the study generally presented matters related to the public transport management model. Starting from definitions of urban transport, public transport and 9 its roles in urban sustainable development; then systematizing the theories of public transport management and organizational model in management, methods to evaluate the effectiveness of management model; and finally, mentioning the lesson leant from success and failure in cities’ urban transport development around the world. Actually, there are many existing/existed management models, each model has certain advantages and disadvantages. Based on the managerial objectives and specific condition, an appropriate model is selected. Chapter 2: ANALYSIS AND EVALUATION IN MANAGEMENT MODEL OF PUBLIC TRANSPORT IN VIETNAM CITIES 2.1. Current situation of public transport in Vietnam cities 2.1.1. Current situation of public transport in Hanoi Capital In Hanoi, the public transport has been developed for more than 100 years. It started when the electric bus system was constructed by French and then developed into 5 lines with 31.5 km of total length. Electric bus routes became the urban development routes in Hanoi. Until 1988, electric bus routes were gradually removed and then there has been only bus system in Hanoi. Bus system establishment and development history in Hanoi is divided into 4 periods as follows: Hanoi bus system before the Innovation period (before 1986) Crisis period of bus system (1986-1992); Rehabilitation period of bus system (1993-2001); and the Total Innovation Period of bus system (2002 up to now) Development of bus service in Hanoi in the last 10 years: - Bus service area has been extended with the more and more increasing of passengers: After 10 years (2001-2011), the number of bus routes is increased 2.1 times, the number of bus vehicles is increased 4.0 times and the number of bus passengers increased 30 times from 15.2 million in 2001 to 445 million in 2011. - Bus service positively contributes in decreasing traffic jam and ensuring traffic safety. - Capacity of bus operation has achieved high rate of effectiveness and been reaching the system limitation. - Bus service quality has been improve - Organization and mechanism: the operational mechanism of bus service in Hanoi has been renovated from service provided by state companies to service provided through contacts with other firms, especially private firms. On the other hand, a corporation has been established in the appropriate scale with modern facilities in order to direct the public transport in Hanoi Capital. 10 - However, there are some limitation existing in bus service such as: the overload of traffic network that leading to the extension of bus trip duration; poor infrastructure for bus system affecting to the passengers’ accessibility, etc. 2.1.2. Current situation of public transport in Ho Chi Minh City (HCMC) Before 1990, public transport services in HCMC are mainly bus service and three – wheeled taxi service which served 20-50 million passengers per year. During the period from 1990-1997, HCMC rejected the system of state budget subsidies, adopted the system of business autonomous. This is the slackness period of bus transport service. During the period of 1998-2001, the bus transport market is slightly rehabilitated with 5-15 million passengers per year of ridership. From 2001, bus service has been rapidly developed due to the implementation of Government subsidy policies such as encouragement policy in bus vehicles investment, price subsidy policy and other subsidy policies. Development of bus service in HCMC in the last 10 years: - The number of bus routes increased from 97 routes in 2002 to 147 routes in 2010. The total ridership of bus service in 2010 is 364.77 million passengers which increase 10 times in comparing with 2002. Although the number of bus vehicles did not much increase but the average capacity significantly increased due to increasing of high capacity vehicles and decreasing of low capacity vehicles. - The bus fare is subsidized by HCMC. However, the financial burden on city budget due to bus fare subsidy is now more and more significant. 2.1.3. Current situation of public transport in Da Nang City The bus network is comprising of 5 routes with more than 90 medium vehicles in which the function of 3/5 routes is to connect the center of Da Nang City and 03 towns of Quang Nam province as surrounding bus routes. The daily bus ridership is about 15,544 passengers (approximately 5.67 million passengers per year). This number is much lower than expected number as proposal. 2.1.4. Current situation of public transport in Hai Phong City Currently, there are 12 bus routes serving in Hai Phong City in which most of routes are serving with the 15-20 minutes of frequency. The most effective route is Dau Khi Hotel – Do Son Beach route due to the highest ridership. 2.1.5. Current situation of public transport in Can Tho City Currently, there are 07 serving bus routes. At this time, bus service in Can Tho city has not been applied subsidy policy, the fuel consumption norms for bus vehicles 11 has not been calculated yet but the bus enterprises are doing business accounting by themselves. 2.1.6. Current situation of public transport in other cities (grade 3 -urban areas). For the cities directly under provinces, public bus system is currently in the beginning and developing period. Bus routes are mostly interprovincial coach routes. There is no connection among routes that causing the inconveniency for attracting passengers in order to reduce uses of private vehicles. 2.1.7. Assessment on current situations of public transport in Vietnam cities Summary of public transport service in Vietnam cities: No Items Unit Hanoi HCMC Da Nang Hai Phong Can Tho 1 No. of Enterprises 9 15 11 5 1 2 No. of routes Route 83 147 5 12 8 Subsidized routes Route 66 108 1 2 - Non- subsidized routes Route 17 39 4 10 8 3 No. of operating vehicles Veh. 1.254 2.951 108 121 140 4 No. of trips 10 3trip/year 3.789 4.000 256 370 285 5 Ridership 10 3 pas. 445.700 316.610 20.000 8.000 10.870 6 Annual subsidy Mil. VND 922.400 1.269.000 - 3.102 - 7 Subsidy/Cost % 69,3% 57% - - - 8 Subsidy/Pas. Vnd/pas. 2.093 4.008 - 510 - 9 % meet traffic demand 10 6,5 >1 >1 1,2 Advantages: Public Bus service in 2 special cities (Hanoi and HCMC) has began to meet the people’s traffic demand (served 8-10% cities’ traffic demand) and contributed in reducing traffic jam and use of private vehicles. The annual bus ridership increases in the cities. The lower bus fare is advantageous condition to reduce passengers’ traffic costs. Weaknesses: In some big cities such as Hai Phong, Da Nang, Can Tho, the bus service area is small (served 1-2% cities’ traffic demand), especially in urban area grade 3 (Cities directly under the provinces), bus service is in the beginning period. Bus service quality has not generally met requirements. Vehicles operating in several routes are from coaches so they are not reasonable. The training programs for driver and on bus - service staff are still limited. 2.2. Analysis and evaluation of current situation of public transport management model in Vietnam cities 12 2.2.1. Current situation of public transport management model in Vietnam cities. In Hanoi and HCMC: In 1997, the Management and Operation Center for Public Transportation (MOCPT) was established in HCMC. In 1998, the Transportation Management and Operation Center (TRAMOC) was established in Hanoi. These centers are agencies which has revenue and legal personality under DOTs and responsible to support Director of DOTs in public transport management and operation. However, the scope of management is mostly public transport by busation (not including other public transport modes). In Da Nang City: Public transport is managed and operated by the Da Nang Public transportation and Traffic signals control Center. Management model in other cities: State management in public transport by bus is directly implemented by units under DOT. 2.2.2. Evaluation of management model for public transport in Vietnam cities In Hanoi and HCMC: These are two special urban areas, so the scale of management functions and tasks of state agencies is bigger. However, the management ability of public transport centers in Hanoi and HCMC is still limited which needs to be improved in the future. In Da Nang City: The Da Nang Public Transportation and Traffic signals control Center has just been established thus the management implementation is much limited and in the step of organization completion. In other cities: For example in Hai Phong and Can Tho cities, although the management demand is big enough to establish an independent management agency but the management tasks are still directly implemented by units under DOTs. In the cities belong directly to provinces, bus service has been created. However, the number of routes is few; therefore, it is reasonable that DOTs directly implement the public transport management task. However, the implementation of public transport planning and development policies in these cities still has not been put in an appropriate consideration yet. 2.3. Issues to be solved in public transport management in Vietnam cities 2.3.1. Macro management policies in public transport development There are a number of certain encouraging policies for developing public transport but they are not enough and inconsistent. The reasons of not enough are because the service and public transport infrastructure have not been much considered in establishment of policies yet (such as pedestrian sides, sidewalks, Bicycles road lanes, etc.). The inconsistency is shown in institutional methods of managing private vehicles, which have not been significantly applied yet. 2.3.2. Orientation of Government in stakeholder structure participates in public transport market 13 Currently, in some big cities such as Hanoi city, the Government is still basically controlling the supply of public transport service. How will the matter be oriented in the future? For example, at which level will state owned enterprises be privatized in the field of public transport in Hanoi; and in HCMC, how will the Local Government solve the actualities in order to ensure the main roles of Local Government?, etc. 2.3.3. Management regulations in public transport The basic issue is quite similar in management regulation among cities while characteristics of public transport are actually different depending on different types of city. This is the reason why the management regulations are not practiced or low efficiency. 2.3.4. Decentralization of management in public transport Public transport management agency has limited rights in public transport due to its administrative boundary while public transport routes is also across out of this boundary, thus there are many issues related with surrounding area which could not be solved by management agency. Besides, the public transport management agency do not implement the function of land use planning thus the development of public transport is based on the actual demand but not based on the long - term plan leading to the low efficiency of implementation. 2.3.5. Management and function implementation model of state management agencies in public transport There is overlap in several management contents among MOT, DOT and the public transport management agencies. DOT is the agency managing all of situations but it is not only responsible for public transport, thus the decision may not be feasible. The centers of management and operation in public transport have not enough rights to combine public transport modes in the cities. In the cities directly under provinces, there are no management agencies responsible to manage public transport but the management is directly implemented by units under DOT. Ở các thành phố trực thuộc tỉnh, mô hình phổ biến hiện tại là không có cơ quan quản lý VTHKCC mà việc quản lý VTHKCC được thực hiện trực tiếp bởi các phòng ban của sở GTVT. Summary: In chapter 2, based on the results of investigation and analyzing the statistic data, the study can be summarized as follows: (1) The establishment of the MOCPT in HCMC and the TRAMOC in Hanoi is practical demand as well as showing the intention of cities’ leaders in promoting public transport following the Government strategy to reduce traffic jam and improve traffic safety. During 15 years of existing and developing, the positive roles of the management center model are shown in developing the public transport system in Hanoi and HCMC. 14 (2) Beside positive results, the public transport management model in Vietnam cities is showing the limitation and problems which are not reasonable with the requirements of public transport development. Details are shown as follow: - The public transport management in Vietnam cities is just focusing on public transport by bus. The management roles in development and operation other public transport modes such as BRT, Metro, etc. has not been defined for these management agencies yet. - The preparation of transport plan regarding development of public transport in the cities is now at low level. - The percentage of responding traffic demand by public transport is much lower than proposed goals as the plan to 2020. No City Percentage of people using public transport Current status As the plan to 2020 1 Hanoi Capital 10.0% 30-35% 2 HCMC 6.5% 20-25% 3 Hai Phong 1.0-1.5% 10-15% 4 Da Nang 1.5-2.0% 5 Can Tho 1.0- 1.5% 6 Cities directly under provinces < 1.0% 3-5% (3) The main reasons of these issues are: the management model has not been appropriate with actual condition yet; the management decentralization is still not reasonable; the overlap of function and tasks; and the incompatibility between functions – tasks and rights – responsibility, etc. Chapter 3: PROPOSAL OF STATE MANAGEMENT MODEL FOR PUBLIC TRANSPORT IN THE VIETNAM CITIES 3.1. Orientation for the development of urban areas and urban transport in the Vietnam cities 3.1.1. Urban development policies in Vietnam In order to reach the country of prosperity and friendly environment, urban areas are searching a future to become the live-able cities with the sustainable environment, developed economy and harmonious society. The proposal of urban development in Vietnam until 2020 and orienting towards 2030 is: preventing the trend of development in which huge independent cities with multi-functions are developed, but increasing the small and medium cities; creating municipal of cities. 3.1.2. Orientation for the development of urban transport in the Vietnam cities Goals of urban transport development in Vietnam: To ensure the smoothness of traffic responding all of traffic demands; to ensure the traffic safety for all traffic 15 activities; to decrease negative impact to environment; to promote the development of urban and suburban economy. Orientation for the policies in development of transport modes under urban transport system: (i) Prioritizing to development of public transport, (ii) Encouraging and guarantee non-motorized vehicles, (iii) Minimizing the use of private motorized vehicles, (iv) Improving the connection among transport modes, (v) Improving the multimodal transport, (vi) Improving the freight transport. 3.1.3. Policies and mechanism for development of public transport (1) Developing the public transport based on the “Procurement first” principle (2) Appropriately decentralizing the modes of public transport in the cities in order to ensure the consistency and smoothness of transport system. (3) The reasonable participants of public transport market is not only necessary to ensure the competition and maximum mobilization of socio resources but also to ensure the effective implementation of regulation roles from Government. (4) Conducting the reasonable subsidy policy in order to ensure that the public transport service fare is competitive and motivate to public transport providers. (5) It is necessary to priority develop the public transport in parallel with control policies for the appropriate use of private vehicles. 3.1.4. Completion of defining state management functions and enterprises management functions for public transport in Vietnam cities State management and enterprises management: In the principle that the Government is not working in place of enterprises, the study clearly defines the functions of state agencies in public transport as well as the functions of enterprises which are self-implemented and self-responsible by enterprises. Besides, there are functions implemented by cooperation between Government and enterprises. State management by Central and Local Government: to enhance Local Government’s rights and responsibilities and reduce the direct intervention of the Central Government. The Central Government should only focus on construct the institution frameworks and cooperate with Local Government in preparing the transport modal plan and supporting for the key infrastructure investment if necessary in localities. The decentralization for management agencies in public transport: The study proposes that in the special urban areas, the management agencies are not only responsible to control its public transport but also responsible to directly act as an advisor for the People’s Committees in land use planning which supports to propose and implement the policies related to public transport. 16 The relationship among Management Agency – Enterprise – Passengers: The relationship between Management Agency and Enterprise is an equal relationship with A-B contract in providing the public transport service which related with the real benefit to passengers. 3.2. Systematization and bases of factors impact to the selection and proposal of state management model for the public transport in Vietnam cities Based on the similar characteristics in socio-economic conditions and especially in demand and traffic vehicles factors as well as infrastructure condition in Vietnam cities, the study divides the cities into 3 groups which are: - Group 1: Special - grade urban areas (Hanoi city and HCMC) - Group 2: comprises of cities directly under the Central Government and urban areas grade I – II directly under Provinces which the size of population, economic condition and transport characteristics are similar with cities grade I-II directly under the Central Government) (hereafter called “Cities grade I –II). - Group 3: Urban areas directly belong provinces which has not reached the standards of Category 2 yet and urban areas grade III (Hereafter called “Cities directly under provinces”) 3.2.1. The socio-economic development in Vietnam cities Cities around the world in generally and Vietnam cities in particular develop according to the development law from the low to the high level both in “quality” and “quantity”. The “quantity” development means the extension of area and population. The “quality” development means the improvement of life condition and people’s income. Based on the forecast of annual average GDP growth rate from 6-10% per/year in Vietnam cities, it only takes more 3-4 years to urban areas grade III’s GDP achieve the GDP similar in current urban areas grade II. The similar pictures are figured out for the urban areas grade II and I. 3.2.2. Transport infrastructure characteristics For the category of special – grade cities (Hanoi and HCMC): land area for transport is small: percentage of land for transport in Hanoi is 6-7% and in HCMC is 5-6% over total urban land area and unsteady arranged in cities areas. For the category of cities grade I-II (Hai Phong, Da Nang, Can Tho): Land area for transport in planed is large but actually the construction rate is low. The system of ring road has not been completed yet. For the category of cities grade III (Cities directly under provinces: The development space is opened, Land area for transport in planed is large but actually the construction rate is low, account form 1.5 – 3.5%. The urban transport system is 17 establishing and still not completed yet which lacks the smoothness and consistency. 3.2.3. Demand and vehicles characteristics in Vietnam cities For the category of special – grade cities (Hanoi and HCMC): The density of population is crowded with the high traffic volume while the density of road network is unsteady disposed thus the capacity of passenger flow is highly concentrated leading the heavy burden on traffic roads. For the category of cities grade I-II: The density of population around the Central is quite crowded with the medium traffic volume thus the capacity of passenger flow is highly concentrated leading the traffic issues in certain areas. For the category of cities grade III (cities directly under provinces): The density of population around the Central is sparse thus the capacity of passenger flow is not highly concentrated and then no traffic issue occurs. For “traffic jam” issue: In the special cities, traffic jam usually occurs. It is beginning to occur in the urban areas grade I-II such as Hai Phong, Da Nang, Can Tho Cities but it has not been serious and continuous issue yet. 3.2.4. Argument in requirements and contents of state management for public transport applicable with different urban categories in Vietnam Based on the development status of urban areas in Vietnam, the study argues the requirements and different levels of management for different cities according to cities size, traffic demands and vehicles. Results of bases systematization for establishing the public transport management model applicable for cities in Vietnam are as follow: Urban categories Items Grade III Grade II, I Special-grade cities 1- Population (1000 people) 300 300-5.000 > 5.000 2- Density of urban residents (people/km 2 ) 8.000 8.000-15.000 > 15000 3- Average GDP (USD/person/year) <1500 USD 1500-2000 USD 2000-2500 USD 4- Range of most trips Small range inside urban area Medium range inside city Large range inside city or region 5-Vehicle for trip May be generated by one kind of traffic vehicle May be generated by one or more traffic vehicles There are many trips generated by multi traffic modes, require high level of connection and transit 18 Urban categories Items Grade III Grade II, I Special-grade cities 6- Main vehicles for trip Bicycles Motorcycle Car (few) Taxi * In the cities that population is > 100 thousand people, it is necessary to operate standard bus service Bicycles Motorcycles Car (average) Taxi Standard bus Large bus * In the cities that population is > 1 mil. people, it is necessary to study investment of urban railway Bicycles (few) Motorcycle Car (a lot) Taxi Standard Bus Large bus Metro Urban railway 7- Management objectives - to ensure the satisfaction and safety of traffic demand of people - to ensure the vision of space development plan for public transport modes. - to ensure the satisfaction and safety of traffic demand of people - to reduce environmental pollution - to ensure the vision for the development of mass public transport modes in order to prevent the traffic jam issue in the future - to ensure the satisfaction and safety of traffic demand of people - to reduce traffic jam issue - to reduce environmental pollution 8- Scope of management In urban area In province/city In urban area 9- Management objects A less number of enterprises A number of enterprises Lots of enterprises 10- Management tool Simple Fairly complex Modern and very complex 11- Resource Limited Fairly sufficient Diversified and sufficient 12- Authority Decentralization Based on normally management decentralization Based on normally management decentralization According to special mechanism 3.3. Proposing management model for public transport applicable to the cities in Vietnam 3.3.1. Public transport management model applicable to special-grade cities For this category of cities, the study argues and proposes to improve the Center of Management and Operation for public transport and enhance the management function of this kind of agency to establish the Hanoi Public Transport Authority under City People’s Committee. 19 Management model for public transport in special-grade cities Proposing the organizational structure for Hanoi Public Transport Authority 3.3.2. Public transport management model applicable to urban areas grade I-II The study argues and proposes to apply the model of Management Center under DOT with some additional functions and tasks. Management model for public transport in urban areas grade I-II Dept. of Public Transport Division of land use planning Division of public transport planning Division of ticket control Division of general coordinat- ion Division of service supply managem- ent Division of supervision Division of infra- structure mgmt. Other divisions (admin, accout … City People’s Committee MOT DOT Strategic & Planning Grade Implementing unit Divisions under DOT Public Transport Operation & Management Center Providers of bus transport service Providers of taxi transport service Providers of other transport modes service (if any) Directly management relation Function based relation Cooperation Relation Strategic & Planning Grade Providers of bus transport and taxi service Providers of other transport modes such as urban railway, metro (if any) National Highway across managed location DOT MOT City People’s Committee Hanoi Public Transport Authority Implementing unit Divisions under DOT Directly management relation Function based relation Cooperation Relation 20 Proposing the organizational structure for Public Transport Operation & Management Center 3.3.3. Public transport management model applicable to urban areas grade III The study proposes to establish units under a DOT’s division in charge for public transport management. Management model for public transport in urban areas grade III 3.3.4. Details of functions and tasks of management agency in public transport applicable to each urban category The proposed model shows that the management agencies of public transport may be under different grades of management (City grade, Department grade, or Division Grade). The management agencies in special-grade cities and grade I-II are added more authorities and ability to coordinate traffic activities in the whole transport Province People’s Committee DOT Providers of bus transport service Providers of taxi transport service Providers of other transport modes service (if any) Strategic & Planning Grade Divisions under DOT Implementing units MOT Management unit for public transport Directly management relation Function based relation Combination Relation Public transport Operation & Management Center Division of land use planning Division of public transport planning Division of ticket control Division of general coordinat- ion Division of service supply mgmt. Division of supervision Division of infra- structure Planning Other divisions (admin, account,…) 21 network. Besides, the management agencies are supported to have function in planning of infrastructure related with public transport, thus it’s the best factor supports to public transport. The proposal is expected to make good the disadvantages existing of current management models in Vietnam cities. 3.4. Application of management model for public transport in Hanoi City The Study proposes to apply the general model following 2 phases as below: Phase 1 Establishing the management agency for urban railway in Hanoi City Phase 2: Merging the management agencies of public transport in Hanoi City 3.5. Appraisal of proposed management models Since the management models have not been applied in real life, the appraisal is carried out based on qualitative point of view only. City People’s Committee DOT Providers of bus and taxi services Public transport operation & management center Division under DOT Mgmt. Agency for urban railway MOT Providers of urban railway services and metro services Directly management relation Function based relation Combination Relation Strategic & Planning Grade Implementing units City People’s Committee DOT Divisions under DOT MOT Providers of other transport services (waterway) Hanoi Public Transport Authority Providers of urban railway services and metro services Providers of bus and taxi services 22 Summary of Chapter 3: According to the bases presented in Chapter 1 and results of analyzing the actualities in Chapter 2, the state management models for public transport applicable to 3 categories of Vietnam cities in corresponding with development characteristics and trend of urban areas up to 2020 orients 2030 are constructed in Chapter 3. CONCLUSION AND RECOMMENDATION A. Conclusion Urbanization is an inevitable and objective trend of the development in many countries. One of urbanization consequences is the pressure on urban transport problems, especially in developing countries as Vietnam. Recently, the traffic density in big cities, especially in Hanoi and Ho Chi Minh City, is more and more increasing, leading to the situation of increasing traffic congestion, decreasing average traffic speed, increasing traffic accidents and environmental pollution at the alarming level. These issues have been becoming heavy challenges for Vietnam industrialization and modernization process. In order to solve above issues, one of important solutions is to develop public transport and to appropriately manage the usage of private vehicles. In which, the completion of management model for public transport is one of important content to implement the above strategy. Based on the need from real life, the study focused on research of state management model for public transport in Vietnam cities during the period up to 2020 and oriented towards 2030. Contribution results of the study are as follows: (1) Systematization and diversification of argument foundation for state management in urban public transport in which the development strategies, function and task and types of management models, lesson learned from urban transport development in the world are deeply analyzed and systematized. The new recoveries are: - Scientific foundation and confirmation: the urban transport development oriented towards public transport is important factor for urban sustainable development. - From general methodological approach, the study concretized the effectiveness evaluation norms for state management model in urban public transport. - Summary of lesson learned from the success and failure of urban transport in the world in aspects of awareness, planning, development of public transport and intervention roles of Government. (2) Evaluation on current situation of public transport management model in Vietnam cities. The new contributions of the study are: 23 - Analyzing and affirming that the establishment of the model of public transport operation and management center in Ho Chi Minh City (1997) and in Hanoi (1998) as well as then in other cities have positively contributed in the development of public bus system operated in these cities. - It is generally evaluated that currently the public transport management model are showing weaknesses affecting the development of public transport. It also does not have sufficient ability to respond the proposed requirements and tasks for next period. Therefore, the study has contributed in clarifying the components in need to be completed, which are basis to propose the improvement solutions. (3) By systematical approach following development history, the study proposes the state management models for public transport applicable for cities in appropriation with urban development conditions and history in Vietnam until 2020, oriented towards 2030. The new contributions of the study are: - The study proposes to divide the Vietnam cities into 03 categories based on the characteristics of transport, traffic demand, socio-economic conditions in order to make the bases for constructing management models. - The study clarifies the strategy, policies and mechanism of development, requirements, and management objects of public transport. The study has also argued the orientation of Government for public transport “supply market” in corresponding with each category of cities. - The study also proposes the state management models for public transport in appropriation with 3 categories of cities which are inherited and improved from low to high level and have sufficient ability to respond the proposed requirements and tasks during the coming period and for specific application in Hanoi City. - Management models for special cities, category III is completely new. Management models for category I and II are developed and improved. For the further development of the study: Firstly: Management model for public transport is applicable to urban areas grade IV and V in Vietnam. Secondly: The study proposes management model for public transport until 2020, oriented towards 2030. The further development of management model after 2030 is practical research direction which is to wait in front of the development and very useful to organize the management of public transport in Vietnam. Thirdly: Because the management model has not applied yet, thus the effectiveness evaluation is just a qualitative evaluation. After application, it is necessary to quantitatively evaluate the effects of management solutions. This is 24 necessary research direction which positively support to the process of managing organization. Fourth: The study focuses on proposing the management model at macro level. It is necessary to develop the further study in activities organization and coordination among divisions in public transport agencies in order to prove the maximum operational efficiency of these agencies. B. Recommendation: - For National Assembly: it is necessary to issue specific regulations regarding roles of public transport and urban transport for urban planning and development in Urban Planning Law, Road Transport Law, Railway Transport Law, etc. - For Government: It is necessary to make the public transport development plan becoming the key Government’s Program during 10-15 coming years in order to ensure the special consideration of society for public transport development then concentrate appropriate resources. - MOT: will chair and coordinate with relating Ministries and Authorities to issue the guidance regarding to plan implementation and standards of regulation framework in public transport development, especially the mass public transport modes in Vietnam cities. - Ministry of Education and Training: will chair and coordinate with relating Ministries and Authorities to intensify the propaganda and training activities for the public transport to all of people, especially for Teachers, Pupils and Students in order to strongly contribute in the view change of people on public transport. This is a significant support factor for implementation of public transport planning policies for the whole country. - For cities: On the bases of referring to the proposed model, the specific management model should be studied in order to suitable with actual condition of each city and the concentration of appropriate resource into public transport development should be preferred for the urban sustainable development.

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