public transport creating agglomeration economies

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Investigating the role of public transport in agglomeration economies and centres NSW Transport Infrastructure Summit 2013 7 th -8 th August 2013 Professor Corinne Mulley Chair of Public Transport Institute of Transport and Logistics Studies University of Sydney Business School [email protected] http://sydney.edu.au/business/itls

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Professor Corinne Mulley, Chair of Public Transport, University of Sydney delivered this presentation at the 2013 NSW State Transport Infrastructure Summit. The State Transport Infrastructure Series of events represent the leading forums in Australia to assess the future plans for transport infrastructure development and financing across Australia. For more information, please visit www.statetransportevents.com.au

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Page 1: Public Transport creating agglomeration economies

Investigating the role of public transport in agglomeration economies and centres NSW Transport Infrastructure Summit 2013

7th-8th August 2013

Professor Corinne Mulley

Chair of Public Transport

Institute of Transport and Logistics Studies

University of Sydney Business School

[email protected]

http://sydney.edu.au/business/itls

Page 2: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Outline

› Background

- Agglomeration economies and centres

- Role of public transport

› Research questions

1. Industry concentration in centres:

Which industry sectors locate in centres of different size

2. Public transport use to centres

3. Worker interactions:

What type of informal, unplanned interactions workers have

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Page 3: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Background: agglomeration economies

› Centre theory: von Thunen, Weber, Christaller, Losch

› Centripetal (agglomerating) forces vs centrifugal (dispersing) forces

- Role of transport costs

› Agglomeration economies = benefits of concentration

- Intra-industry economies from labour supply, production and markets

- Inter-industry economies

- Social interactions: personal networking

3

Agglomeration economies

Source: Metropolitan Strategy, Dec 2005

Page 4: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Role of public transport – some hypotheses

1. Efficient use of land for access

- High value of land in dense locations

- Public transport: road-based or rail-based

- Higher density threshold before negative impacts

of congestion

2. Public transport encourages informal interactions

- Public transport trip has higher density of people

travelling together in proximity

- Walking to and from common origins and

destinations

- Opportunities for more informal, unplanned

interactions

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How can public transport lead to agglomeration economies?

Source: Brisbane Times, 29 March 2011

Source: www.rta.nsw.gov.au

Page 5: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Empirical evidence and importance

› US

- Knowledge-based industries more likely in CBDs

- Govt sector has greatest affinity for transit locations

› Seoul, Korea

- BRT influenced location of creative industries and service sectors

- BRT increased employment density within 500m of stops

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Page 6: Public Transport creating agglomeration economies

Research Question 1: Industry concentration in centres Which industry sectors locate in centres of different size?

Page 7: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Industry concentration in centres

› Functions as Global City

› Polycentric city with suburban centres

› Hierarchy of Strategic Centres

- Global Sydney (5 CBD precincts+1)

- Regional Cities (4)

- Major Centres (10)

- Specialised Centres (9)

› Data

- Jobs by 1 digit industry from Census 2006

- Calculation of concentration ratios

7

Sydney

Metropolitan Strategy, Dec 2005

Page 8: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Concentration ratios

› Concentration ratios were calculated to identify if an industry was more or

less concentrated than the average of all industries in different locations

- A concentration ratio of 1 means an industry has the same proportion of its jobs

in that location as that location has of all jobs.

- A concentration ratio of more than 1 means an industry is more concentrated in

that location than average.

› The maximum possible concentration ratio varies according to the location

- If 100% of the jobs in a specific industry are located in Sydney CBD which has

17% of Sydney’s jobs, the maximum concentration ratio for that industry in

Sydney CBD is calculated as 100/17 = 5.8.

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Page 9: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Location (centre type) and industry Concentration

Ratio Maximum possible concentration ratio

Sydney Statistical Division

1.7 Financial and Insurance Services 1.38

Information Media and Telecommunications 1.32 Professional, Scientific and Technical Services 1.28 Wholesale Trade 1.24 Strategic Centres

2.5

Financial and Insurance Services 2.02 Information Media and Telecommunications 1.69 Professional, Scientific and Technical Services 1.49 Sydney CBD

5.8

Financial and Insurance Services 3.31 Information Media and Telecommunications 2.06 Professional, Scientific and Technical Services 2.00 Regional Cities

25.1

Public Administration and Safety 3.24 Financial and Insurance Services 3.21 Health Care and Social Assistance 1.58 Major Centres

18.5

Retail Trade 2.16 Health Care and Social Assistance 1.53 Public Administration and Safety 1.48 Specialised Centres

9.2

Transport, Postal and Warehousing 2.75 Wholesale Trade 1.86 Health Care and Social Assistance 1.33

Industry concentration by centre type – results

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In this example:

57% of jobs in Financial

and Insurance Services

industry are in Sydney CBD

compared to 17% of all

Sydney jobs in the CBD

= 3.31 times more jobs than

expected in Financial and

Insurance services are

located in the Sydney CBD

Page 10: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Most concentrated industries by specific centres

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Industry Centre Concentration

Ratio

Arts and Recreation Central Sydney: Ultimo-Pyrmont 14.34

Transport, Postal and Warehousing Airport 11.35

Arts and Recreation Sydney Olympic Park 9.12

Health Care and Social Assistance Westmead 7.26

Transport, Postal and Warehousing Port Botany 5.38

Health Care and Social Assistance Kogarah 5.16

Information Media and Telecommunications Central Sydney: Ultimo-Pyrmont 5.14

Education and Training Central Sydney: Education and Health 4.90

Information Media and Telecommunications Chatswood 4.79

Education and Training Randwick 4.35

Health Care and Social Assistance Randwick 4.23

Financial and Insurance Services Central Sydney: CBD 4.22

Retail Trade Castle Hill 4.04

Example:

In Ultimo-Pyrmont, 20% of jobs are in Arts and Recreation industry

compared to only 1.5% of all Sydney jobs in that industry

= 14 times more industry jobs than expected for Arts and

Recreation in Central Sydney

Page 11: Public Transport creating agglomeration economies

Research Question 2: Public transport use to centres

Page 12: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Public transport use to centres: Public transport use for JTW and centre size

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0

10

20

30

40

50

60

70

80

0 50,000 100,000 150,000 200,000 250,000

% o

f pub

lic t

rans

port

for

Jou

rney

To

Wor

k to

cen

tre

Size: No. of jobs in centre

Global Sydney

Major Centres

Regional Cities

Specialised Centres

All centres: r=0.592, p=0.001

Exc CBD: r=0.358

Page 13: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Public transport use to centres: Public transport use for JTW and centre density

13

0

10

20

30

40

50

60

70

80

0 100 200 300 400 500 600

% p

ub

lic tr

ansp

ort

fo

r Jo

urn

ey

to W

ork

to

ce

ntr

e

Density: Jobs per hectare in centre

Global Sydney

Major Centres

Regional Cities

Specialised Centres

All centres: r=0.838, p=0.000

Exc CBD: r=0.772, p=0.000

Bondi Junction,

Chatswood

Redfern

Page 14: Public Transport creating agglomeration economies

Research Question 3: Worker interactions What type of informal, unplanned interactions do workers have?

Page 15: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Exploratory survey of workplace interactions

› Online pilot survey

› 76 responses from 3 companies

- Information, Media & Telecomms/Professional Services industry in CBD

- Professional Services industry in Chatswood

- Waste Services/Transport industry in CBD (Pyrmont)

› We asked respondents about ‘Your activities last week’

- Opportunities for interactions vs unplanned interactions

- List of activities

- Mode to work

› We also asked questions that tested quality of recall

- Diary

- How easy to remember

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Method

Page 16: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Workplace interactions – results

› Interactions

- 457 opportunities for interactions (leaving office for coffee, lunch, break, other)

- 11 unplanned interactions: met colleagues, friends

- Survey week was representative re more, less or usual activity

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Freq. of activity (no. of days last week)

Total

activities

Respondents

with activity

No. % Activity

0

days

1

day

2

days

3

days

4

days

5

days

Opportunities for interactions

Left workplace…

for meetings 38 25 6 3 3 1 63 38 50%

for coffee or break 34 9 4 8 13 8 133 42 55%

for lunch with colleagues from same org 39 22 4 5 6 69 37 49%

for lunch with colleagues from different org 68 8 8 8 11%

for lunch with friends 64 9 1 1 1 18 12 16%

for any other purpose 35 25 10 6 63 41 54%

Went to work-related activity after work 60 12 4 20 16 21%

Went to social event after work 32 21 11 8 4 83 44 58%

Total opportunities for interactions 457

Informal interactions 0%

Met colleagues from different org unplanned 74 1 1 3 2 3%

Met friends unplanned during the day 69 6 1 8 7 9%

Total unplanned interactions 11

Page 17: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Workplace interactions – results

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› Role of public transport

- Public transport users slightly more likely to report meeting and talking to people they know on JTW than car drivers

Meet and talk to people you know while travelling to work

Journey to Work mode in survey week

Almost everyday

About once a week

About once a month

Almost never

Total resp.

At least monthly

Almost never

Public transport 4 or 5 days 4 5 5 23 37 38% 62%

Car driver 4 or 5 days 3 1 1 14 19 26% 74%

Walk or bike 4 or 5 days 1 2 0 3 6 50% 50%

All other 2 1 0 11 14 21% 79%

Total 10 9 6 51 76 33% 67%

Source: Daily Telegraph, 15 Oct 2009

Page 18: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Future research

› Pursuing this needs a survey which

- Increasing response rates

- Distinguishes between meeting new people during

work vs outside of workplace

- Captures personality and work style

- Allows for the role of e-comms vs face-to-face

interaction

- Asks about the impact of interactions on work

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Role of public transport in interactions

Source: SMH, 15 Oct 2008

Source: Brisbane Times, 29 March 2011

Page 19: Public Transport creating agglomeration economies

NSW Transport Infrastructure Summit 2013, 7-8th August 2013

Summary/Conclusions

› Issues - Established theories of centre formation, size and hierarchy

- But not industries benefit most from agglomeration and whether this differs by centre/city size

- Role of transport: roads vs public transport

› Findings from Sydney - Some industries more concentrated in different types of centres

- Strong association between centre density and public transport use for JTW

- Exploratory survey: can recall previous week’s activities, pt users more likely to report meeting and talking to people they know on JTW

› Future directions - Extending survey of workers’ unplanned interactions to other industries,

and centre sizes and densities

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