The Transport Syndicate of the Paris Region (STIF)
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Best Practices: The Transport Syndicate of the Paris Region (STIF) The Transport Syndicate of the Paris Region (STIF) Thierry DESCLOS Abstract Urban transport in the Paris region (Ile de France) is organised differently from the rest of the country primarily because the Transport Syndicate of the Ile de France (STIF) is a transport authority responsible for the whole region on all modes of ground transport, and also because the operators in central Paris are not yet chosen by a bidding procedure as in other regions in France. STIF was originally set up by the central government which chaired it until it decided to pull out in 2005 as part of a decentralisation process and transferred the presidency of the board to the elected president of the Paris region. The relationship between STIF and operators has been based on contracts since 2000. Over the years, the impetus has been put by STIF on expanding and improving the supply and quality of transport services. As regards financing, the situation is similar to the rest of the country, with the transport tax (VT) levied on companies and administrations being the main resource to finance urban transport. Introduction The Paris region (Ile de France) has a population of around Three main operators manage transport in 11.6 million inhabitants. In 2011, public transport modes Paris, two of them public companies. The were used by more than 4.1 billion passengers (Figure 1). RATP Group manages the underground métro, and some underground trains Three main operators manage transport in Paris, two of (RER), buses and trams; the national them public companies. The RATP Group manages the railway company (SNCF) operates mainly underground métro, and some underground trains (RER), suburban trains and some RER; and OPTILE, an association of bus operators, Figure 1. Paris Metro runs buses in the suburbs. buses and trams; the national railway company (SNCF) operates mainly suburban trains and some RER; and OPTILE, an association of bus operators, runs buses in the suburbs. Governance is an important issue in the region, which covers more than 1,300 towns and villages. The “loi d’orientation des transports intérieurs (LOTI)” of 30 December 19821, the framework law on transport, which decentralised transport responsibilities to elected local authorities, created the concept of urban transport JOURNEYS | September 2013 79
Best Practices: The Transport Syndicate of the Paris Region (STIF) authority (AOTU), of which some 281 exist today in on 1 July 2005 the President elected for the Paris France. The transport authorities are created by locally region became its chairman in place of the government elected town representatives who decide upon their representative (the Préfet of the Ile de France), thus geographical boundaries (PTU) and are entitled to levy completing a process of decentralisation from the transport tax (VT). Authorities organise urban transport, central government to the Region. formulate mobility plans, define the level of service offered, set the fares and the rate of VT, finance the STIF is in charge of organising, coordinating, development of the networks and choose the operators. modernising and financing public transport. As such, it formulates the urban mobility plan (PDU), determines The situation in Paris is unique as its legislative basis the routes, chooses and appoints the operator3, sets is not the LOTI but the ordinance of 7 January 1959 the operational, management and financing guidelines, by which the central government created a public and ensures the coherence of investment programmes. authority in charge of organising public transport for It also sets the rate of transport tax (VT), decides on passengers and set its geographical boundaries (PTU). fares policy and oversees school transport, transport on Thus, contrary to other regions, a single authority is in demand and regular passenger boat transport. charge of all modes of transport for the whole region. Managing parking is not among its responsibilities as The Institutional Structure of STIF local mayors set the rates and collect the proceeds. The STIF is a syndicate composed of the Region (Ile de government sets the amount of police fines (for traffic France), the city of Paris, the seven départements and parking) and collects them. In the Paris region, 50% (counties) of the region and other partners. of the proceeds from fines goes to STIF, 25% to the départements and the rest to the Region. Driver licensing Its board has 29 members and the Region holds the and vehicle registration are other responsibilities that absolute majority with 15 representatives. The city of come under the central government. Paris has five and each of the départements one. There is one representative of the cooperation set up by the STIF is entitled to recruit its own personnel and has towns and villages of the region , and one representative 2 around 330 staff (as of December 2012). of the private companies paying the transport tax (VT). A representative of other stakeholders (labour STIF is in charge of organising, unions, employers organisations, consular institutions, coordinating, modernising and users associations and municipalities taking part in the financing public transport. As such, financing of transport services in the region) sits on the it formulates the urban mobility plan board but does not have voting power. (PDU), determines the routes, chooses and appoints the operators, sets the Since its creation in 1959, under the name of STP operational, management and financing (Transport Syndicate of the Paris region), STIF has guidelines, and ensures the coherence of evolved gradually. With the law of 13 December 2000 investment programmes. the Paris region became a member of its board, and 80 JOURNEYS | September 2013
Best Practices: The Transport Syndicate of the Paris Region (STIF) Financial Resources situation and the economic environment prevailing The financial resources of STIF come mainly from the in the metropolitan area considered. The amount transport tax, fares, the contributions of its members , 4 collected varies greatly from one transport authority the proceeds of road traffic fines collected in the region, to another due to different economic conditions. VT is public subsidies, the fees collected for services rendered often subject to criticism primarily because companies and the compensation given by the government for of less than nine employees do not pay it even if they school transport. often are located in town centres and benefit fully from urban transport facilities (small businesses for example). The Transport Tax Like other urban transport authorities in the country, the Most of the major transport authorities including STIF main financial resource of STIF is the transport tax (VT), have set their VT level to the ceiling allowed by central created in 1973. This tax is paid by employers (private government and are currently looking for new resources and public) employing more than nine staff, located in and considering increases in fares. the area of jurisdiction of the AOTU, as a percentage of their wage bill. The transport tax (VT) is a tax collected locally and used locally. Its The rates are decided by STIF, within ceilings fixed by rate is dependent on the national the government and the percentage set is applied to economic situation and the economic the total payroll. Three rates are applied within the environment prevailing in the area under STIF’s purview: 2.7% in the city of Paris and metropolitan area considered. The Hauts de Seine, 1.8% in Seine Saint Denis, 1.5% in the amount collected varies greatly from other départements. They have all been increased by one transport authority to another 0.1% since July 2013, as stated in the Budget law for due to different economic conditions. 2013 period. The transport tax (VT) is a tax collected locally and used Fare Revenue locally. Its rate is dependent on the national economic STIF is in charge of setting the fares, based on a zoning principle. Five zones exist (eight existed initially but the number was reduced gradually), zones 1 and 2 being The financial resources of STIF come central Paris, the fare increasing the further you go away mainly from the transport tax, fares, from the centre5. This system is criticised, however, for the contributions of its members, the favouring the most well-off residing in the central area. proceeds of road traffic fines collected in the region, public subsidies, the fees The objective of the STIF board is to reduce the number collected for services rendered and the of zones to one and put in place a unique fare system compensation given by the government based on the fare for zones 1 and 2. But the estimated for school transport. financial losses of between €500 and €600 million need to be addressed. A unique zone system already applies JOURNEYS | September 2013 81
Best Practices: The Transport Syndicate of the Paris Region (STIF) over the weekend as passengers can travel over the for the coming 20 to 30 years. It is revised every whole network using whatever pass they have. 15 years and other planning documents must be in accordance with it. STIF is totally free to set fares. However, as part of the • the project contract between the central government consultative process, it set up a committee in 2001 and the Region (CPER) sets for a period of seven comprising users associations, elected representatives, years (2007-2013) the financial involvement of both trade unions and businesses paying transport tax. Fares partners. The central government finances only the do not always keep pace with inflation and STIF tends projects planned in the SDRIF. to modulate fare increases according to the zones, with more increases in the central zone (zones 1 and 2). This These documents mandate political decisions on modulation is publicly acknowledged when increases transport and STIF’s expertise is required for their are decided. preparation. The Region decides on investments but the central government has a veto right on the SDRIF. Reimbursement of Season Fares by For projects not in the SDRIF, the Region can proceed Employers on its own through contracts with the counties Public and private employers in the region must (départements). reimburse their employees 50% of their urban transport season fares, according to the law of 4 July 1982. The Overall, the system is such that the Region and central reimbursement is made monthly when salaries are paid. government have to come to an agreement on major investments of public interest. Once decisions are taken, Subsidies from the Central Government STIF is in charge of conducting the studies and all the For investments in transport, the subsidies from central different phases of a project require its approval. government are set in the project contract between the central government and the Region (CPER). As regards the rolling stock, decisions are taken by STIF, with no involvement of central government or For operations till the end of the year 2000, the main the Region. RATP or SNCF are consulted for technical subsidies came from the government. Since it left the STIF expertise and are in charge of the acquisition process. board in July 2005, it only compensates school transport. Framework for Investment Decisions and Overall, the system is such that the Financing Region and central government have Decision Process for Transport Investment to come to an agreement on major Several documents set the framework for transport investments of public interest. Once investments (Figure 2): decisions are taken, STIF is in charge of conducting the studies and all the • the master plan (SDRIF), prepared by the Region different phases of a project require its and approved by the central government, plans approval. the major infrastructures (not only transports ones) 82 JOURNEYS | September 2013
Best Practices: The Transport Syndicate of the Paris Region (STIF) Figure 2. Dedicated Bus Corridor In 2012, the amount of investments was €640 million, financed as follows: 40% loans, 17% auto-financing, 12% subsidies, 31% fines. Service Planning and Operations Service planning is done through the urban mobility plan (PDU) formulated by STIF and contracted to operators through four-year contracts. Contrary to other French urban transport authorities, STIF can only choose the operators in the suburbs, but not in central Paris. This situation is bound to evolve due to Investment Financing recent EU requirements. Investment cost is shared among the central government, local authorities, STIF and operators according to the On 3 December 2009, EU regulation n° 1370/2007 on type of investment: public transport services of passengers by rail and roads came into force, and as a result, operators will have to • the creation of lines or extension of existing ones is be chosen after a bidding procedure in the future. financed through: * the CPER. For 2007-2013, €3 billion will be spent As a consequence, from 3 December 2009, new services (60% financed by the Region, 25% the central will have to be operated either by STIF or an operator government, 15% départements). chosen after a bidding procedure. Existing services will * specific contracts between the Region and be opened up to a bidding procedure gradually: the départements (CPRD). For 2007-2013, it bus network on 31 December 2024, tramways on 31 amounts to €1 billion (50% the Region, 50% December 2029, undergrounds on 31 December 20397. départements). So far no specification has been made on the duration • for local improvements to buses, stations, accessibility of future contracts and STIF has not yet decided on the and public information, subsidies come from the duration of contracts to be offered to the operators. For Region and STIF, with operator’s participation. the rest of the country, where the contracting system is based on bidding procedures, the duration is eight • the rolling stock is financed by STIF in two ways: a years. subsidy is given to the operators and the provisions for depreciation are financed through the contract between STIF and operators. Contrary to other French urban transport authorities, STIF can only choose the As regards rolling stock for RATP, STIF has been operators in the suburbs, but not in financing 100% since 2000. For SNCF, it finances 50% central Paris. This situation is bound to additional rolling stocks and 100% new ones6. STIF’s evolve due to recent EU requirements. contribution is set in the contract with the operators. JOURNEYS | September 2013 83
Best Practices: The Transport Syndicate of the Paris Region (STIF) The reform has also ownership consequences and a transfer of assets between STIF and RATP has Since 2000, operators have signed a been organised. Ownership of the rolling stock was multi-year contract with the STIF which transferred from RATP to STIF and ownership of the specifies the extent of the services underground infrastructure assets transferred to RATP8. offered, the quality to be delivered, The law allows STIF to take control of the bus depots or the amount operators are paid and the maintenance facilities if it wishes. the profit-sharing mechanisms. The contract also includes an incentives/ Framework for Operations Financing penalties system based on performance Decision Process for Operations Financing indicators, with a total potential liability Since 2000, operators have signed a multi-year contract of €28 million. Contracts are fixed price with the STIF which specifies the extent of the services contracts and payments are made by offered, the quality to be delivered, the amount operators STIF to the operators every month. are paid and the profit-sharing mechanisms. The contract also includes an incentives/penalties system based on performance indicators, with a total potential liability The opinion poll conducted yearly is widened in scope of €28 million. Contracts are fixed price contracts and and more weight is given in assessing the overall payments are made by STIF to the operators every month performance (120,000 passengers will be interviewed (Figure 3). each year). As regards the underground, STIF will work with 750 lines witnesses belonging to users The latest contracts signed with RATP and SNCF in associations. There are more indicators to assess the March and April 2012 are more demanding on the services and they are more precise (114 for RATP and 54 quality of services offered, the number of trains running for SNCF). Quality is measured by the operators but STIF effectively, punctuality and regularity9 during rush conducts its own assessment and studies from time to hours, information delivered to travellers10, cleanliness time during the year. of the stations, and accessibility for the disabled. More stringent criteria are set for incentives. Every year, an amendment to the contract is made, taking into account new services offered. Meetings Figure 3. Passengers waiting at a Tram Station are held between STIF and the operators every three month on areas such as quality of service, transport offer, investments and communication. As far as OPTILE is concerned, the contractual relationships have also evolved. Contracts are more individualised and quality focused and the financial contribution of STIF is calculated on the service real costs. Since 2003, STIF has organised bidding procedures for the new services in the suburbs. 84 JOURNEYS | September 2013
Best Practices: The Transport Syndicate of the Paris Region (STIF) Examples of indicators 2) Cleanliness A synthetic indicator on the cleanliness of the 1) Punctuality stations, the maintenance of the equipment and Punctuality represents the number of passengers information facilities has been designed. who arrive on time or with a delay of less than five For example, in the metro, RATP is requested that minutes to their final destination. It is calculated 90.7% of the stations meet the level of cleanliness on all the lines and during the whole day. set as a reference, as well as 90.5% of the trains. A goal is set for each line, taking into account specific constraints. Thus, it is 94% for the RER 3) Availability of escalators and lifts in line A, 94% for the B line, 93% for the C line, the metro 92.5% for the D line and 95% for the E line. The target set is 97% of escalators and lifts working. The operator receives an incentive if the result is above the target and a penalty when it is not This indicator is very important for escalators and met. lifts affect greatly the quality of service and local elected representatives are watching closely. Operations Financing proceeds of fines (€232 million, 2.8%). The breakdown The amount spent on operations was €8.3 billion of expenditure is as follows: 54% for RATP, 35% for in 2011. The resources came from transport tax SNCF, 11% for OPTILE, 3% for others (Figure 4). (€3,120 million, 37.4%), fares (€2,524 million, 30.3%), local authorities(€1,687 million, 20.2%), employers Since 2000, the total amount of spending on transport (€773 million, 9.3%), other resources: advertising, in the region has increased by 67%, with significant increases after decentralisation of STIF. Figure 4. Operations Financing Financial Sources for Operations (2011) Expenditure by Operator (2011) fares, transport tax, € 2,524m, € 3,120m, RATP OPTILE 30.3% 37.4% 54% 11% SNCF local authorities, employers, 35% € 1,687m, € 773m, others, 20.2% 9.3% € 232m, 2.8% JOURNEYS | September 2013 85
Best Practices: The Transport Syndicate of the Paris Region (STIF) Conclusion and improvements to the existing network, imply more The transport governance of the Paris region has evolutions to come. One change should take effect matured and evolved gradually over the years. STIF has soon. The decentralisation law currently debated in progressively asserted its role since decentralisation. Parliament contains an article on urban transport EU requirements and the “Grand Paris project”, authorities (AOTUs) which, if voted in, will transform announced in 2009 to improve trips from suburb to them into sustainable mobility organising authorities suburb via the creation of a circular automatic metro (AOMDs), giving them increased responsibilities. Notes 1 The law is now codified in the transport code. See notably 5 A monthly pass for the central zones (1 and 2) costs €65.10 article L 1241 and following concerning the Paris region and for zones 1 to 5, €113.20 (as of May 2013) 2 This representative is justified notably by the fact these 6 In the past, operators used to finance their rolling stocks towns and villages finance the bus system in the outer suburb for around €60 million. 7 Trains operated by the SNCF are not involved in this reform but will be in the coming one on passenger railway. 3 So far this only applies for the suburb as Paris operators still retain a monopoly for a few years 8 RFF, the railtrack operator, owns railway tracks 4 The percentages set by decree are: The Region: 51%, 9 Regularity and punctuality are measured line by line 14 days City of Paris: 30.38 %, the rest being shared among a month with the Siel data system, developed by STIF, the départements according to their population. These percentages are applied to cover the remaining expenses 10 A Master Plan has been contractualised with operators once other resources have been used. Thierry Desclos is a senior urban transport specialist at the World Bank. He works at the transport anchor (TWITR) where he is on a secondment from the French Ministry of Ecology, sustainable development, transport and housing. At the French Ministry of Ecology, sustainable development, transport and housing, he was in charge of the urban transport and railway division. He was also deputy head of the international affairs division and in charge of the Union for the Mediterranean project. He also worked for five years at the Ministry of Social affairs where he was in charge of a programme to improve the governance and performance of health agencies. He has a master’s degree in English and was educated at the French national civil service school (ENA). 86 JOURNEYS | September 2013
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