Auckland Transport are making a few changes to public transport fares on 28 February and some of them are bound to result in howls of outrage. The changes are part of ATs annual fare review and they have said they are being influenced by a couple of key factors:
- The need to achieve the NZTAs farebox recovery policy of 50% of costs covered by fares by June 2018
- Changes to operating costs
- Changes in preparation for ATs Simplified Fares which they say are currently on track to roll out at the end of July
I’ll cover off these aspects before going into the fare changes.
Achieving the Farebox Recovery Policy
As I talked about on Friday, the NZTA require that 50% of all PT costs across NZ are met by the revenue from fares paid by PT users. As Auckland accounts for over 50% of all PT across the country it means the city is critical to the country meeting that target. Of course this doesn’t mean that the target is rational or provides the best economic and social outcome but it currently exists so AT has to work within that. The good news is we’re on the right track. Farebox Recovery has increased to 47.8% from 45.9% the year before.
Changes to operating costs
The way that contracting currently works for most services is that the operator gets the fare revenue and AT pay the net cost of providing the service. The amount that AT pay is adjusted based on a cost index determined by the NZTA which takes into account changes to aspects such as labour costs, fuel costs, RUC costs etc. There are two indices, one for bus/train and one for Ferries. AT say these are up 0.5 for bus/train and 0.1 for ferry in the September Quarter and the fare changes are to respond to that.
Out of interest the NZTA’s info on the indices say that fuel prices only make up about 15% of the operational costs for buses and just over 30% of the costs for ferries. But those indices also suggest that while prices are up in the September Quarter they are still down on a year on year basis. In other words, as of the September Quarter – which would have been used by AT for their fare review – AT were paying less for services than they were the same time the year before. On a YoY basis they are -0.4% for bus and -3.7% for ferry.
Changes for ATs Simplified Fares (aka integrated fares)
There are two main and significant changes being made by AT to better align fares in the lead up to AT rolling out Simplified fares at the end of July. They are also the ones that will likely get the most reaction – especially from the media. The changes were suggested as part of the consultation for simplified fares but that won’t make the changes any easier for those affected. Essentially it seems like they’re getting the bad news parts of the Simplified Fares out of the way now so that when they do roll out in July the positive aspects don’t get overshadowed.
The first change is that Orakei Train Station to Britomart will go from 1 stage to 2 stages. The reasons suggested are:
- As part of Simplified Fares there will be a City Zone which is based on roughly the same area as covered by the current 1 stage fare zone and which is effectively a circle the same distance from the centre of the city. Orakei is an anomaly sitting well outside of that. In addition, buses from Orakei pay a 2 stage fare so there needs to be consistency. Changing the area to 1 stage would be unfair on others who are travelling a similar distance.
- The park & ride is often full as a result of people driving from around the region to pay for the 1 stage fare. They are hoping that changing it to 2 stages eases pressure on the station and that passengers will instead go to closer stations to catch the train.
- Hobson Bay is a logical boundary for a fare stage/zone boundary.
- As the station data AT provided suggested, the number of people affected isn’t that high overall. There are ~300,000 trips a year to or from Orakei which is around 2% of all rail patronage across the region.
The second change also affects the city zone and will see the removal of the current CBD zone which was a separate price for those catching a bus purely within the CBD (and a little bit around the southern end of Symonds St as shown below with the lighter area. Again it’s so that there will be a single City Zone. Until the Simplified Fares roll out it means trips within the CBD will be a 1 stage fare however importantly this doesn’t affect the CityLink buses which will remain at $0.50 if you use HOP.
There is one other aspect is at play in the fare changes, AT say that compared to many other cities our short fares are often a bit cheaper while our longer distance fares are a bit higher. AT have decided to use these fare changes to try and balance that out slightly and so the fare changes are primarily for shorter trips.
Adult fares are below and there are no changes to child, accessible and tertiary fares with the exception of the child monthly train pass (which still uses the old cardboard tickets). As you can see stages 1 to 4 increase by $0.10 if you use HOP while other fares remain unchanged
There is a change to the Adult Monthly passes too with the 2-zone monthly pass (the one I use) going from $190 to $200. There are a few changes to child monthly train passes too as well as family passes – on those AT say they are still working out just what the future will be for family passes and hopefully will finalise that soon.
Ferries don’t escape the changes. They are splitting ferries into three zones which they say simplifies things and allows for better integration with the future integrated fares pricing structure – although they’re not quite ready to say how that integrates the approach they indicated to me sounded pretty reasonable. They’re working to align ferry fares within those zones over time and the new Adult HOP prices for them are below.
- Inner Harbour (Birkenhead to Devonport) – $4.50 – these prices are now aligned.
- Mid Harbour (Half Moon Bay, Hobsonville/Beach Haven, West Harbour) – $7.04 – $8
- Outer Harbour (Gulf Harbour, Pine Harbour, Waiheke etc.) – $11-$11.20
AT want more ferry customers using HOP and as such they’re making some changes including removing some pass options and increasing the price of some too.
Lastly as a quick update to Simplified Fares. As mentioned it is due to roll out in July this year and AT say the project remains on track and they are currently testing some of the new functionality. They have confirmed the zones that will exist but are still reviewing four of the zone boundaries based on feedback from the consultation. These are:
- Upper North Shore/Lower North Shore – There are a few school trips affected by the boundary on the map below.
- Huapai/Waitakere – how it integrates with the new Westgate/Massey North development
- Waitakere/Isthmus – again some school trips and short trips are affected but the boundary on the map below.
- Manukau North/Manukau South – impacts on trips around Manukau
So what do you think of the changes and how much will they impact you.