Due to an impending fiscal crisis, we were tasked by a large public transit agency to analyze the entire bus route network to identify opportunities for immediate cost savings.
Using a quick response analytical assessment of the system’s 235 routes, we were able to quickly identify routes that were leveraged in terms of reducing budgetary burden. The basis for these changes was to:
We were then tasked to interpret these changes and to provide implementable packages of service changes and forecast their revenue and cost impacts.
We made recommendations by categories: changes in reduced hours of service operated or discontinued (weekend and off-peak elimination, overnight service suspension, and hour-by-hour reduction), and route changes. The hours of service operated changes were straightforward, as the service during certain time periods that did not meet productivity guidelines were simply eliminated. The route changes were the most complex.
Our proposals generated approximately $30 million in potential annual savings for this agency. Due to the significant impacts upon the riding public, and a rescue package including a significant fare increase, the agency ultimately chose not to implement many of the service span changes, which were primarily productivity-driven. However, many of our route change packages were implemented, producing some $10 million in annual savings while improving the route structure for the majority of customers.
