Not All Transit Lines Cover Their Costs, and That’s Okay

Summary

The video script from RMTransit challenges the notion that profitable transit lines are the sole measure of a successful public transport system. It argues that while some lines may generate more revenue than their operational costs, this doesn't account for the interconnected nature of transit networks. The script emphasizes the importance of considering the entire system, including less profitable but essential services like buses, which feed passengers into profitable lines. It also highlights that public transit's purpose is to provide affordable mobility, not to generate profit, akin to public schools.

Takeaways

• 🚇 The concept of 'profitable' transit lines is often discussed but may not be as straightforward as it seems.
• 💡 Profitability in transit lines usually means that the line generates more in fare revenue than it costs to operate.
• 🔄 There is a risk in isolating a single transit line's profitability without considering its role within the entire network.
• 🔗 Passengers often use multiple transit modes, including buses, to connect to profitable rail lines, which may not be accounted for in profitability discussions.
• 🌐 The profitability of a transit line can be influenced by the overall transportation ecosystem and land use patterns.
• 🏙 Hong Kong's MTR is an example of a profitable transit system, but it benefits from unique factors like convenient alternative transportation options and strategic urban planning.
• 🛤️ Building more 'profitable' lines may not always be sustainable or beneficial, as it could oversaturate the market and reduce the profitability of existing lines.
• 💰 High costs of building and maintaining rail networks mean that profitability is not the only measure of a transit system's success.
• 🔄 The value of transit services extends beyond direct profitability, including the broader benefits to public mobility and urban connectivity.
• 🚍 Feeder services like buses are essential for the success of rail lines, and their costs should not be overlooked in profitability discussions.
• 🌟 Public transit exists to provide affordable mobility and public benefits, not solely to generate profit, similar to other public services like schools.

Q & A

What is the common misconception about profitable transit lines discussed in the script?

The common misconception is that if a transit line, such as a subway, brings in more revenue than it costs to operate, it is considered profitable and thus a model for success. However, the script argues that this perspective is flawed because it overlooks the interconnectedness of the entire transit network.

Why is it risky to view transit lines in terms of profitability?

It is risky because it can lead to undervaluing services that are essential to the overall network but may not be profitable on their own. This could result in cutting back on these services, which in turn would negatively impact the efficiency and reach of the entire transit system.

What does the script suggest about the relationship between rail lines and other transit routes?

The script suggests that rail lines often rely on other transit routes, such as buses, to feed passengers into them. Without these feeder services, which may be more expensive to operate, the rail lines would not be as profitable.

How does the script describe the operation of the Hong Kong MTR?

The Hong Kong MTR is described as an entire system that makes money, but this is attributed to specific factors such as the city's layout and the convenience of alternative transportation methods, rather than the profitability of individual lines.

What is the issue with focusing on building more 'profitable' lines?

The issue is that if too many profitable lines are built, they may no longer be profitable due to market saturation. Additionally, rail networks are costly to build and maintain, and their success often relies on other transportation modes and dense land use.

Why might a busy transit line be successful?

A busy transit line might be successful because it serves a unique purpose within the network, absorbing ridership from connecting lines. However, its success is also structural and part of the overall network, not just because it exists on a 'higher plane of existence'.

What is the structural reason behind some rail lines being able to bring in more fares than their operational costs?

The structural reason is that these lines are part of a larger network where they benefit from the feeder services provided by other, potentially less profitable, modes of transport.

How does the script view the idea of a transit system being profitable if all government funding was cut?

The script suggests that if all government funding was cut, a transit system that appears profitable might not be able to sustain itself, as its profitability could be reliant on other, less profitable transit lines.

What does the script imply about the purpose of public transit systems?

The script implies that public transit systems exist to provide affordable mobility and other public benefits, not to make money, similar to how public schools exist to educate, not to generate profit.

Why might making a transit line less expensive benefit the overall system?

Making a transit line less expensive could increase ridership and potentially lead to greater efficiency and connectivity across the entire network, even if it means individual lines operate with lower profit margins.

What is the script's stance on the importance of efficiency versus profitability in transit systems?

The script argues that while efficiency is important, as seen in the case of profitable lines, the ultimate goal of a transit system should be to provide valuable services that enhance public mobility and offer other benefits, rather than solely focusing on profitability.