HSL’s Operational and Financial Plan 2014-2016: HSL prepares for opening commuter train services to competition

Ring Rail Line, West Metro and opening commuter train services to competition will bring substantial changes to Helsinki region public transport in the coming years. The changes to rail services will have significant impacts on HSL’s finances as well as bus route network and public transport infrastructure. Nationally, the most significant rail project is the Ring Rail Line to be opened in summer 2015. The new rail line will provide a rail link to the airport.

“In 2014, we will complete the West Metro feeder route network plan. There will be changes also to the Ring Rail Line feeder services in 2015. The plans are already drawn.

However, at the turn of 2014/2015, we need to make sure that the transition to feeder services in Vantaa will go smoothly. An important step will be opening commuter train services to competition after 2017. The competitive tendering of the services will be launched already in 2015,” says HSL’s Executive Director Suvi Rihtniemi.   

HSL is also conducting before-and-after studies to examine the impacts of the big rail projects. “The situation is interesting in a number of ways because according to HSL’s Traffic Survey 2012 published in August 2013, there has been a remarkable shift in travel behavior. Contrary to traffic forecasts, the share of journeys made by public transport is now increasing more than driving," says Rihtniemi.

The most significant investment during the planning period is the ticketing and information system project. A total of some EUR 63.2 million is budgeted for the project in 2014-2016. The project involves the renewal of the current Travel Card system as well as the implementation of a real-time, regional passenger information system. The future fare and ticketing system is also being prepared.  A new zone system will be introduced at the earliest at the beginning of  2016.

HLJ 2015: Conditions for good housing, land use and transport

The first transport system plan covering the 14 Helsinki region municipalities, HLJ 2011, serves as the starting point for the Helsinki Region Transport System Plan HLJ 2015. HLJ 2015 deepens its predecessor: in the process, the plan is revised and integrated with the regional land use plan.

HSL will invite comments on the draft HLJ 2015 in autumn 2014 and a transport system decision will be made in early 2015.

Also, the preparation of a Letter of Intent on Housing, Land Use and Transport (MAL) for 2016-2019 will be launched in 2015.

HSL’s budget 2014

In 2014, HSL's operating income totals EUR 599.7 million, an increase of EUR 11.9 million compared to the 2013 forecast.  

Ticket revenue accounts for 48.8 per cent of the income. The estimated ticket revenue is EUR 292.9 million in 2014, an increase of 5.2 per cent from 2013.

The expenses that cannot be covered by ticket revenue or other income are covered by municipal contributions paid by the member municipalities. In the 2014 budget, municipal contributions total EUR 288.3 million, 48.1 percent of HSL's total income.

The annual Government subsidies to public transport in large cities is estimated to be EUR 5.8 million in 2014-2016. Other subsidies and grants are estimated to account for 0.8 per cent of HSL’s income.

HSL proposes an increase from EUR 80 to EUR 100 for the penalty fare at the beginning of 2014. Income from penalty fares is estimated to total EUR 6.4 million, with a EUR 2.5 million credit loss and credit loss reserve.

In 2014, HSL's operating expenses are EUR 601.7 million. Operating costs are EUR 482.6 million and they account for 80.2 percent of the operating expenses. The costs for different modes of transport are as follows: purchase of bus services EUR 320.1 million, purchase of train services EUR 76.1 million, tram services EUR 51.3 million, Metro services EUR 28 million, and ferry services EUR 4 million. The operating costs of the Kutsuplus services are estimated to be EUR 3.2 million.

HSL pays compensation for its member municipalities for the use of public transport infrastructure owned by the municipalities. In 2014, the compensations are EUR 66.1 million, 11.0 percent of HSL’s total operating expenses.

HSL’s investment costs amount to EUR 22.7 million.  For the 2014-2016 period, in total EUR 4.8 million is budgeted for electronic passenger information devices and systems.

Comments

As published in this paper......"The operating costs of the Kutsuplus services are estimated to be EUR 3.2 million."

Since from what I see Kutsuplus is operating at a substantial loss. Is this information on loss publicly available?

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