Cape Town’s MyCiti bus service has improved its fare-revenue-to-cost ratio from 30% in 2013/14 – where fares cover 30% of direct vehicle operating costs – to 40% in 2014/15, says Gibb transportation south section unit manager Andrew Bulman.

The consulting engineering firm, Gibb, provides operational support to the MyCiti system.

The fare-revenue-to-cost ratio indicates the level to which the system is financially sustainable.

While the ratio is projected to be 53% for the 2015/16 financial year, says Bulman, this is still far from reaching the proposed target of 85%.

Revenue-to-cost ratio estimates in other public transport modes in South Africa are between 13% and 31% for municipal bus services, between 31% and 44% for conventional bus services, between 28% and 44% for bus rapid transit systems, such as MyCiti, 57% for the Gautrain, and 39% for Metrorail.

In order to improve the ratio on the MyCiti service, fare revenue has to increase, along with passenger ridership, while vehicle operating rates have to decrease and system efficiencies increase, says Bulman.

He says MyCiti and its various consultants have found a number of factors that could improve the system’s fare-revenue-to-cost ratio.

Seat turnover has the “single biggest impact” in revenue generation. Owing to South Africa’s history, people live far from work, which means seat churn along the MyCiti route is low, as well as fare generated per seat.

It also means that people tend to travel largely in one direction during peak periods, with little demand in the opposite direction.

City design and improved land-use patterns, leading to, for example, increased densification along bus routes, could help to remedy this situation.

Bulman also suggests that bus capacity be increased, especially in terms of standing passengers per square metre allowed. The fare-revenue-to-cost ratio will also improve if bus frequencies during peak periods are reduced and route lengths slightly shortened.

“Six-metre buses are not cost efficient,” he notes.

While a 6-m bus moves 45 people at five- minute headways, a 9-m bus at a headway of 15 minutes can do the same. However, it is more cost effective as there is only one driver and one bus involved.

Shorter routes means increased return trips.

It is better to limit the length of the corridors, even if it means higher passenger transfers, says Bulman.

It should also be questioned whether operating the system after 21:00, when 1% of the system’s passengers make use of the system, is cost effective.

The fare-revenue-to-cost ratio can also be improved by an aggressive peak pricing strategy, as well as marketing drives, such as preloaded travelcard giveaways to commuters using other public transport modes.