Executive summary

	The focus of our audit
	The NSW Government released the State Plan – A New Direction for NSW in November 2006. A priority area is to increase the public transport system’s share of peak hour journeys undertaken in Sydney. Interchanges provide access to public transport. They include bus stops, railway stations, ferry wharves, taxi ranks, kiss and ride areas, cycle racks and park and ride areas. Many key aspects of integration come together at interchanges including information, ticketing, network accessibility, service coordination and personal security.
	Our audit looks at the effectiveness of interchanges in promoting increased use of public transport in Sydney. More particularly, we asked three questions: § Has the Government adopted a coordinated and strategic approach to developing interchanges? § Are there adequate information systems to inform the public and management? § Has funding of interchanges been adequately addressed?
	The audit has included a review of interchange projects built since 1992-93. In more recent years there has been less interchange development. In this context, the audit has looked for areas for improvement that the Ministry of Transport can apply in its development of new processes.
	Audit opinion
	We see considerable potential for the Ministry of Transport to plan and manage interchanges more effectively, so as to make better use of our public transport network.
	Interchanges can promote access to the public transport network with good waiting environments and fast transfers. But poor interchanges, with long walks, stairs, long waits, poor travelling information, and poor weather protection can substantially discourage access to public transport.
	The State Government has in recent years developed a State Plan, a Metropolitan Strategy and an Urban Transport Statement to encourage development in accessible locations and improve transport between Sydney’s centres. During this period, the Ministry has focused particularly on arrangements to improve private bus services.
	We believe that the Ministry now needs to focus more on multi-modal transport planning and interchange performance. It needs to assign responsibility for the coordination and oversight of inter-modal operations to an entity resourced for the purpose. Without this it will continue to be very difficult to identify and address unmet needs, seek and secure stakeholder funding, and monitor and evaluate system performance.
	Below, we explain in brief the basis for this opinion. Our analysis is set out in the report that follows.
	Key audit findings
Has the Government adopted a coordinated and strategic approach?	The State Government has in recent years developed high level documents integrating land use and public transport, including the need to encourage development in accessible locations and improve transport between Sydney’s centres. We found that interchange projects prior to this were not selected within a long term strategic framework. There is little to indicate how or why specific projects were chosen, and what may have been needed in the longer term. There were no multi-modal transport plans that integrated Sydney’s inter-modal transport network as a whole. There is now an opportunity for a coordinating body to provide a strategic focus on interchanges. Coordination requires: § a network linking bus routes with rail and ferry that responds to a more diverse range of commuter destinations and times § closely integrated interchanges and terminus facilities § network development involving fare coordination, schedule and service coordination, public information and marketing coordination and administrative coordination.
Are there adequate information systems to inform the public and management?	At most interchanges there is limited local signage. The main source of information for Sydney metropolitan passengers planning to travel by more than one travel mode is the Transport Infoline 131500 website. This service does not indicate how the interchange is laid out and which bus services depart from each rank. It does not assist people to plan part of a journey by taxi or by car. There is no up to date system inventory and identification of interchange access attributes, capacity, utilisation and costs to enable assessment of performance. There is no listing of capital amenities provided such as shelters, timetable signage, seating, on-site retail vendors, security devices. There is no identification of access attributes such as rail service levels, capacity, utilisation and costs. Nobody regularly reports on interchange and car park adequacy and performance. In addition, there is no evaluation process framework to establish the impact of an interchange on public transport. We found no ‘before and after’ studies or ongoing monitoring programs of usage, other than the limited information available from the RailCorp annual travel survey. We found little evidence of surveys of commuters to see if behaviour had actually changed as a result of interchange development. The Ministry of Transport should examine the opportunity to incorporate interchange facilities as part of the annual household travel survey. We found no information about who is using newly constructed interchange facilities and what they used to do and whether there has been any improvement in travel time. We found nothing to indicate which facilities could be considered ‘successes’ and which ‘failures’ due to improved efficiency in movements through the interchange and increased capacity.
Has funding of interchanges been adequately addressed?	The State’s total investment and future requirements cannot be readily identified. Funding objectives and options for interchanges need to be developed. There is a potential to make more use of alternative funding sources, such as from private sector investment and multiple use developments.
	Recommendations
	We recommend that the Ministry of Transport:
Assign clear responsibilities	§ establish a coordinating and oversight entity to assess interchange standards, monitor interchange performance, plan access to the public transport system, and plan whole of network development § establish clear responsibilities for interchange “ownership”, operation and maintenance
Develop a more strategic approach	§ set performance objectives for interchanges such as demand levels, connectivity offered and cost-effectiveness achieved § develop multi-modal transport plans to improve interchange planning and overall effectiveness § further develop the ‘quality gap’ assessment using facility inspections against a set of specific standards and risk assessments § develop and publish a ten year rolling plan for interchanges
Develop and promote Best Practice	§ develop and issue Best Practice Guidelines for different categories of interchanges, including arrangements for integrated emergency and security response § carry out a review against Best Practice Guidelines to assess the quality of the present interchange arrangements § work in partnership with local stakeholders to identify ways of ensuring good quality multi-modal interchanges, particularly those where quality falls short of the Guidelines.
Provide better information	§ provide better information to the public, such as by including on the Transport Infoline 131500 website details of interchange layouts, transport services, kiss and ride facilities, park and ride facilities, taxi ranks and amenities § enhance the Transport Infoline 131500 website journey planner such as by adding an ability to plan part of the journey by taxi or car, as a means of encouraging a change in travel behaviour § develop a strategy to assess and, if necessary, improve brand awareness of the service § establish and maintain an accurate inventory of existing facilities, site ownership by facility, transport services provided, capital amenities provided, identification of access attributes, capacity, utilisation and costs § link the facilities inventory to a map including existing and planned bus, rail and ferry routes and services to develop a context for placing new facilities or expanding those already in existence
Systematically evaluate performance	§ establish an evaluation process framework with performance objectives, performance monitoring and post evaluation to establish the impact of the interchange facilities on public transport § establish a means of systematically reviewing the frequency and character of transport service provided at individual facilities to ensure that it is adequate for the purpose
Address the need for long term funding	§ forecast long term funding requirements for development, operations, maintenance and security § clearly state funding objectives and options for interchanges such as minimising the cost to commuters, minimising the cost to public agencies or promoting joint development
	§ promote joint development of interchanges using a more market-oriented approach § continue to improve transparency in how Parking Space Levy funds are allocated to infrastructure projects by the use of criteria (including extent of achievement of the object of the PSL legislation) and evaluation of the relative merits of alternatives
	§ identify and assess the adequacy of funding sources for interchanges, including for operations, maintenance and security § identify, secure and leverage further funding sources as necessary to address any shortfalls.
	Response from the Ministry of Transport
	Thank you for your letter dated 11 May 2007 forwarding the report of the Performance Audit, Connecting With Public Transport. I wish to acknowledge the considerable liaison between our offices regarding the conduct of the audit and the content of the report. The Ministry notes your comments regarding the need for overall coordination of interchanges and the need to develop a more strategic approach to the development of interchanges.  The Ministry will review and examine the option of establishing a coordinating body to oversight interchanges.
	In regard to the issue of a strategic approach to interchange development, as noted in your report the Ministry has already established a process for evaluation and ranking interchange proposals.  However the Ministry agrees with your recommendations that this process needs to be enhanced and for this reason the Ministry will be reviewing its procedures. Further, the Ministry will continue to provide input through the Urban Transport and State Plan processes in order to ensure that interchanges are considered within the broader context of transport planning.
	In relation to the specific issues raised in your report, the following comments are provided:
	Assign Clear Responsibilities In relation to the establishment of an entity to coordinate and oversight interchanges, MoT will examine this option in conjunction with the various owners of interchange infrastructure.  MoT has identified responsibilities for the ownership, operations and maintenance of interchanges and will continue to ensure that these responsibilities are clearly identified in the development of future projects.
	Develop a More Strategic Approach In connection with the development of performance objectives for interchanges and the processes for interchange planning and quality gap assessment, MoT has already implemented project criteria for developing forward interchange projects and programs.  However, MoT acknowledges that its criteria can be enhanced by adopting the specific recommendations made in the audit report.  MoT will therefore enhance its processes in this way. Regarding the recommendation to produce 10 year rolling plans for interchange programs, MoT will continue to incorporate interchange programs within the Government’s overall transport strategy statements including the Urban Transport Statement, the State Plan and specific regional planning initiatives.
	Develop and Promote Best Practice MoT will examine the development of best practice guidelines as suggested by audit.
	In connection to the issue of emergency and security response, as indicated in the audit report MoT has already addressed this issue in relation to the Top 10 highest priority interchanges and has further identified 13 priority sites for review.
	Provide Better Information MoT will investigate the establishment of a database incorporating the features suggested by the audit.  This investigation will also include scope for linking bus, rail and ferry services to the database to further enhance the process for determining future interchange plans. The incorporation of car and taxi travel into the Transport Infoline 131500 website journey planner will also be examined.
	Systematically Evaluate Performance MoT will develop and implement a post project evaluation process as recommended by the audit report. In connection with the recommendation covering the review of transport services, MoT’s bus service contracts already provide for a network review process which will be used to review bus services as suggested by audit and MoT will examine the opportunity to incorporate rail and ferry services into the interchange review process.
	Address the Need for Long Term Funding MoT will continue to address long term funding requirements for the interchange program as part of its forward budget estimates. MoT has already implemented a system of project assessment setting out clear evaluation criteria for the development of forward interchange programs.  MoT will review this process to incorporate audit recommendations to enhance the process. The Government recently announced through the Urban Transport Statement the examination of the joint development of facilities with the private sector.  MoT will continue to examine these opportunities on a case by case basis as projects are being considered as part of the strategic planning process.
	(signed) Jim Glasson Director General Dated: 28 May 2007