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 2013Best 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 81Best 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 2013Best 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 83Best 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 2013Best 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 85Best 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).
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