A new transit approach is gaining steam in cities across the U.S. Public-Private Partnerships (P3) pair public and private agencies to expand operations without increasing budgets. P3 transportation systems offer multiple advantages:
–Diversified operations for private charter groups.
–Expanded public transportation options to support regional growth.
–Multifaceted, flexible financing.
Today we’re taking a look at how transportation P3s work by examining a successful case study. We also recommend private charter mobile WiFi as an excellent tool for streamlining P3 transit partnerships.
Private-Public Partnerships (P3) Case Study: Michigan Flyer, Air Ride, and the Detroit Metro Airport
In 2011, the Ann Arbor Transportation Authority (TheRide) adopted a 30-year vision for improved public transit connections in the region. A major step toward realizing that vision was the P3 between Michigan Flyer and TheRide. In 2006, the private firm Michigan Flyer founded the first intercity bus service to Detroit Metro Airport (DTW). TheRide was spurred to improve DTW transit service after Ann Arbor residents expressed their need for a convenient, trustworthy, and reasonably priced bus service to and from the airport. CEO Michael Ford recognized that riders would favor frequent round-trips for the 30- to 40-minute ride. However, he also recognized how challenging it would be to found a new regional airport service without a pre-existing customer base.
Through a contract with Michigan Flyer, TheRide was able to establish twelve daily roundtrips between Ann Arbor and DTW, for as little as $12 one-way. The P3 contract boosted the number of daily trips between Ann Arbor and the airport. Michigan Flyer provides the logistics, vehicles, fuel, and drivers, while operating under a new name, AirRide, to stay consistent with TheRide’s branding. Due to the fact that Michigan Flyer already ran eight roundtrips per day between Ann Arbor and DTW, the agency’s project bid was very competitive.
By partnering with a private firm, TheFlyer has been able to boost ridership without requiring additional taxes. AirRide serves 60,000 riders annually, with a budget of $1.3 million. It’s notable that the budget is funded entirely without local property taxes. Instead, fares, service agreements, and state and federal funds finance the airport shuttle. Moreover, steadily increasing ridership has allowed TheRide to drop it’s not-to-exceed amount that Michigan Flyer charges from $700,000 in 2012, to $300,000 in 2013, and just $170,000 in 2014. AirRide’s growing popularity brings in more fares for Michigan Flyer, allowing Ann Arbor Transportation Authority to accomplish regional transportation goals at exceptional cost efficiency. The airport shuttle is a perfect example of how P3s can expand transit options without requiring expensive infrastructure upgrades.
Taking P3s to the next Level: Fleet Connectivity via Private Charter WiFi
P3s are one aspect of a larger trend toward mobility management, which emphasizes collaboration over fixed-route operations. Private and public regional operators can partner together to create more practical transportation options for communities. Strong communication is key to this new mobility management approach. Private and public partners must be well connected, so as to provide consistent service. And P3s must also communicate their offerings to the public. The idea is to increase convenience for riders; without smooth communication between collaborating agencies, riders are unlikely to favor P3s.
WiFi connectivity is a boon to P3 and mobility management in general. With each vehicle equipped with a mobile WiFi device, and management software in place, agencies have a convenient mechanism to track buses and trains. Assuming GPS compatibility, such software solutions can enable real-time vehicle management. By combining data from WiFi-equipped vehicles, public administrators can monitor contract performance, one of the main challenges to P3s, according to the Federal Highway Administration. If your transit agency is looking for P3 contract management solutions, contact us today to learn how our MoovManage software and WiFi In Motion Moovbox hardware can help.
[Photo by Richard Eriksson via CC License]