Department of Logistics

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Browsing Department of Logistics by Author "Barthus, Michaela Anne"

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    Towards estimating key social cost elements along with affordability issues of public transport in Cape Town, South Africa
    (Stellenbosch : Stellenbosch University, 2017-03) Barthus, Michaela Anne; October, Melrick; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Logistics. Logistics.
    ENGLISH SUMMARY : For the market mechanism to establish the optimal allocation of resources, the price of goods and services should reflect the total cost involved in producing the quantity demanded. The economic characteristics of transport results in failure of the market mechanism as the price at which transport services are sold (the fare), often does not include the external costs associated with transportation. The inability of transport users to accurately calculate their total transport costs leads to inflated demand, placing a cost burden on the surrounding road users and society in general. To reflect the true cost of transport, external costs needs to be estimated and included the price of transport, to bring demand in line with optimal levels. With the current financial crisis and public transport road users under significant pressure, any attempt to include external costs will have an impact on the affordability of the service, which is an important determinant of the mobility of urban dwellers, especially the urban poor. This study aims to identify, discuss and estimate key elements of social cost of public transport in Cape Town, South Africa, and highlight the impact of including external costs in the fares of public transport services on the affordability of those services. The results indicate that rail transport remains the most cost-effective from of transport, especially for the poorer sections of the City. Including external costs in the fares and tariffs of bus and minibus transport, increases the proportion of income spent on transport for a number of zones, specifically densely populated areas, where incomes and employment are already under severe pressure. The areas with the highest calculated index have historically been areas with the lowest incomes, and higher travel distances to access employment and other services. These factors and developing an equitable system of charging for externalities needs to be further investigated before implementing a charge to cover these costs.