The Transport Syndicate of the Paris Region (STIF)

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The Transport Syndicate of the Paris Region (STIF)
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

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The Transport Syndicate of the Paris Region (STIF)
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

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                                                                             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

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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)

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                                                                            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.

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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.

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                                                                                   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%

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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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