Portland Chooses Gridlock: Saying No to Corporate Relocation

Higher Population Densities
Mean Higher Transit Unit Costs

Bus public transit service is more expensive to provide in dense central city areas, according to research based upon the 1997 US Department of Transportation National Transit Database. According to the analysis:

1. Central City Comparison: Where a a public transit agency exclusively or principally serves the central city, costs per vehicle hour⁽¹⁾ were 31.8 percent higher than for suburban public transit agencies in the same metropolitan areas. Among the metropolitan areas of more than one milion, there are ten metropolitan areas with public transit agencies that principally or exclusively serve the central city.

Central city transit costs were higher in all metropolitan areas but one, Raleigh, where central city costs were 0.5 percent below suburban costs. Central city costs were highest relative to suburban costs in Phoenix (68.6 percent higher).
Where central city population densities exceed 6,000 per square mile, central city transit agency costs per vehicle hour averaged 37.9 percent higher than the suburban transit agencies in the same metropolitan areas (Chicago, Detroit, New Orleans, New York and San Francisco).

2. Regional & Central City Comparison: Public transit agencies that serve central cities, along with a wider service area (which includes both central city transit agencies and regional transit agencies) exhibit costs per vehicle hour 35.0 percent higher than for suburban public transit agencies in the same metropolitan areas. This reflects two factors: (1) The diseconomies of scale of transit agencies (the larger the transit agency, generally the higher the unit costs) and; (2) The dominant influence of central cities on regional transit agencies. Generally the majority of ridership and service is in the central cities and central city interests tend to wield considerable power in regional transit agency governance.

Regional and central city transit costs were higher in all metropolitan areas but one, Raleigh, where central city costs were 0.5 percent below suburban costs. Central city costs were highest relative to suburban costs in Dallas- Fort Worth (199 percent higher).

Findings Contradict "Smart Growth" Claims: These findings run counter to the claim often made that costs of service production are higher in the suburbs than in the more dense central cities.

Case #	Comparison of Suburban Transit Agencies to:	Cost per Vehicle Hour
Case #	Comparison of Suburban Transit Agencies to:	Suburban	Regional & Central City	Central City/ Regional Compared to Suburban
1	Central City Transit Agencies	$49.93	$65.79	31.8%
2	Regional Transit Agencies Serving Central Cities	$46.42	$62.68	35.0%

Methodology Notes:

Cost data is for 1997.

Case 1: 10 metropolitan areas (Chicago, Detroit, Greenboro, Indianapolis, New Orleans, New York, Phoenix, San Diego, Raleigh, San Francisco), all 7 central city agencies, all 56 suburban agencies.

Case 2: All 48 metropolitan areas over 1,000,000 population in 1997, 58 central city transit agencies, 128 suburban transit agencies

Footnote:

1. Cost per vehicle hour is used to eliminate the effect of traffic congestion which tends to slow travel times and makes costs per mile higher in metropolitan areas with the greatest traffic congestion.

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