Is Bikesharing Sustainable?

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1 Is Bikesharing Sustainable? - Based on Korea Cases - Oct. 24, 2011 Hee Cheol Shin KOTI enriches the future by securing harmony among humans, the environment and transport

2 Contents 1. Introduction 2. Issues in Bikesharing 3. What is the Solution? 4. Conclusion

3 1 Introduction

4 Problems with Old Paradigm Energy crisis & climate change Oil-dependent economy & trans port system Greenhouse gas emissions Auto-oriented transport system Congestion, air/noise pollution High energy consumption Non-motorized transport as a bridging strategy tow ards Low Carbon and Green Growth Page 4

5 Why Bicycle Transportation? Ecological impact Car Car plus catalytic converter Bus Bicycle Air Train Space consumption Primary energy consumption CO Nitrogen oxides Hydrocarbons CO Total atmosphere Risk of accidents Source: UPI Report, Heidelberg, 1989, quoted by the German Ministry of Transport Page 5

6 Why Bikesharing? Transpor tation New mode Droit au transport (Mobility right) Society Prevent theft Decrease social costs Environ ment Street furniture Environment-friendly à Bikesharing makes citizens healthier à Bikesharing encourages citizens to use cars less à Bikesharing is a form of public transportation Page 6

7 History of Bikesharing White Bike (1 st G., 1960s) Coin system(2 nd G,1990s) Same as usual bike 1968 Amsterdam Problem Theft and vandalism fail Coin System - Deposit of 1 to 3 dollars for rental - Receive deposit upon returning bike Bycklen, Copenhagen - Unique design - Can be used for only restricted area - Donated bicycles and advertisement Problems - Deposit too low? - No time restriction - Theft due to anonymity Bycklen, Copenhagen Page 7

8 History of Bikesharing Smart Bike (3 rd G, 2000 ) France Velib and Velo v Unique design - Creative design for preventing theft - Practical design Ubiquitous technology - Use with card (or RFID) or cell phone - Real time demand forecasting and distribution - Anytime and anywhere - Theft prevention - Free for first hour - Easy to find where bicycles are Bycklen Velib Velib Page 8

9 Bikesharing: Present Bikesharing Systems have been introduced all over the world Source: Page 9

10 Bikesharing: Present About 238 bikesharing services are active around the world 49% increase in 2010 Global 3rd Generation Bikesharing Service Source: Page 10

11 3. 정책실행 및 평가체계 구축 Bikesharing in Korea CIty Area Population (km2) (Thousand ) Name No. of Bikes No. of Stations Open Changwon Nubija 3, Goyang Fifteen 3, Daejeon ,500 Ta-shu à 1,000 Bikes (Oct.) Suncheon Onnuri Seoul ,310 Seoulbike 976 (Yeouido: 25 Bikes, Sa ngamdong: 18 Bikes) 2010 Busan ,560 U-Bike Page 11

12 2 Issues in Bikesharing

13 Bikesharing Operation in Korea City Operation Type Condition Changwon Direct Managemen t - Operator: Changwon Cycle Racing Corporation (Public Agency) - Budget: About 3 billion KRW/year subsidized by Changwon City Govern ment Seoul Direct Managemen t - Still in pilot stage - Pilot Project Sites: Yeouido and Sangam Daejeon Direct Managemen t - Pilot Project for 200 bikes - Expansion Plan: Up to 5,000 bikes - Planned to increase the number of bikes to 1,000 by this Oct. Goyang Special Purpose C ompany including Goyang City Gover nment - Operator is ECO-Bike - 4 billion KRW/year requested Page 13

14 Roles and Issues of Bikesharing Roles Best for 1~3km Connected to public transportation (transfer) Better landscapes (landmark) Limitations Many people use bikesharing for leisure purposes High costs of construction and operation Equity problem between bikesharing and private bikes Business model: No financially independent bikesharing system in Korea Page 14

15 Purpose of Bikesharing Purpose Access and Egress Daejeon Changwon Daejeon Changwon Commute Access Egress Access Egress Commute sch ool Private educa tion institute Walk Bus Business Subway Leisuer/Other s Taxi Etc Car Source: Lee Jae Young, Seminar for Eficient Bicycle Policy, 2011 Page 15

16 Framework of Bikesharing Issues Bikes Redistribu -tion Control Center Syst em Station Business model Operation and mainten ance Operation Scale Repair Page 16

17 3. Fares of Bike Sharing in Korea Changwon Goyang Suncheon Seoul Daejeon Pusan Annual fee 20,000 60,000 20,000 30,000 free 20,000 Free time 2 hrs 40 min No limit 1 hr 1 hr 1 hr Payment m ethod Cell phone Credit card Cell phone Transportation c ard Cell phone Member: Credit card, Cell phone, money transfer Non-member: T ransportation car d, Cell phone Transportaion card Cell phone Transportation c ard Operator Changwon cycle racing corporati on SPC Suncheon City Seoul City Daejeon City Busan City Non-memb er 2hrs free 1,000 KRW /40 min 1,000 KRW / day 1,000 KRW / day 60 min free - Additional f ee Member: 500 K RW / 30 min Non-member: 1, 000 KRW / 30 mi n Member: 500 K RW / 30 min Non-member: 2, 000 KRW / 30 mi n no 1,000 KRW / 30 min 3 hr under: 500 KR W / 30 min 3 hr over: 2,000 KR W / 30 min 1 hr over: 50 0 KRW / 30 min Page 17

18 Cost of Bikesharing in Korea Current Systems Construction and Operation Costs Changwon: Construction 10billion KRW (Nubija+stations+control center) +3billion KRW (Operation Costs) Changwon, Goyang, Daejeon: Construction cost per bike is about million KRW Operation cost per year: million KRW per bike Changwon Goyang Daejeon Seoul Bikes 3,300 3,000 1, Station Construction cost (billion KRW) Construction cost per bike (m illion KRW) Operation cost per year (billion KRW) Operation cost per bike (milli on KRW) Page 18

19 Financial Estimation of Bikeshar ing Annual fee 510 Adver0sement Deficiency Unit: million KRW Assumptions 3% of members Annual fee 20,000 KRW 3,000 bikes are operated Note: Based on Korean cases Page 19

20 Financials support is Necessary Financially independent bikesharing system is impossible in Korea Bikesharing system has more social benefits than costs (No quantitative analysis has been performed yet) Social benefits of bikesharing - Health benefits - Environmental benefits (CO2 reduction) - Less traffic congestion Page 20

21 3 What is the solution?

22 Subsidies for Public Transportation Subsidies for public transportation are very widespread in OECD countries Public transportation is considered as a public service Subsidies for Bus in Korea Year Seoul In-cheon Daejeon Busan , , , , , Source: Subsidies and taxes for semi publicity managed bus system, KRITI, 2011 Page 22

23 Bikesharing Subsidy Why are subsidies needed? Decrese Cost Increase Benefit Bikesharing System Public Service Business Model Bikesharing System is not financially independent Increase Revenue Possible Funding Sources Subsidies by central government Congestion Pricing Eco-mileage CDM Fund from Kcycle (bicycle race) Page 23

24 4 Conclusion

25 Conclusion Subsidy for bikesharing is necessary and natural Existing Subsidies for public transportation could be used for bikesharing Central government is responsible for environmentally friendly transportation modes à No subsidy, No supply! Page 25

26 Thank you

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