Financial Sustainability Oriented Strategies for Urban Mass Rapid Transit Operation
Date Issued
2010
Date
2010
Author(s)
Chang, Cheng-Chiou
Abstract
This research explores potential operation strategies based on “financial sustainability” with considering the attributes of high cost and low revenue. Kaohsoung Rapid Transit System (KRTS) is used as the case study, where the strategies for financial sustainability are analyzed and evaluated.
In this research, “five forces analyses” has been conducted for the profitability of KRTS. Further more, with the SWOT and TOWS analyses, this paper discovers strengths, weaknesses, opportunities and threats of urban mass rapid transit system. The validity and the feasibility are considered as basis to identify the short-, mid- and long-term strategies for achieving the goal of financial sustainability.
In Kaohsiung case study, it is found that “the substitute threat” is the motorcycle which is the biggest profit spoliator of KRTC. Moreover, it is suggested that establishment of the KRTC''s core competitive ability involved eight major items. Accordingly, this study proposes the short-, mid- and long- term strategies to increase the revenue and decrease the cost, respectively. It is also suggested that the KRTC should at present consider financial sustainability and properly reduce operation cost and seek governmental subsidy in order to develop a healthy financial environment.
According to financial sustainability point of view for MRT, this study combines five forces analysis, core competitive capabilities and SWOT analysis to develop a comprehensive model of “Evaluating Financial Sustainability Strategies for Urban Mass Transit Operation”. In the meantime, this model is a general form and has great transferability to other metropolitan areas. Moreover, this model can not only be applied to metro rail system but also be used in other railway systems such as high speed rail system or inter city railway system for the relevant strategy eualuation and development.
Subjects
Porter
Financial Sustainability
Mass Rapid Transit Operation
MRT
KRTC
TRTC
SWOT
Five Force Analysis
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