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A Feasibility Study on the Investment and Operation of a Second Bus Company by the KRTC.

Abstract
The Kaohsiung Mass Rapid Transit system (KMRT) in its initial planning had several lines: red, orange, blue, brown, pink, green; creating a web-shaped MRT network, but due to funding constrain, only the Red and Orange lines are currently under construction, 42.7 km, traversing through the greater Kaohsiung area like a long ¡§cross¡¨, unable to meet the need of the entire city for public transportation. It is foreseeable that the Kaohsiung Rapid Transit Corp. (KRTC), which has a 36-year-BOT contract with the City to construct and operate the MRT, will have difficulty achieve its revenue target. The KRTC is under a great deal of pressure finding solutions, like using bus routes to supplement the MRT, to achieve a sustainable operation.
The aim of this study concentrates on how to utilize the existing resources within the Kaohsiung Metropolitan area, with an emphasized goal on creating a web-shaped public transportation network, through strategies, organization, and integration. The study examines the financial feasibility for the KRTC to operate a second bus company, the pros and cons of purchasing or renting shuttle buses, and the strategies for operation.
First, the study applies Michael Porter¡¦s 5-forces model in examining the current competitive situations of routes within the Municipal Bus Company, by using the competitive theory to discuss the potential activities and goals of a 2nd bus company. Then, with reference to the Harrison¡¦s Decision Making Process as a foundation for the KRTC to run a bus company was discussed. Second, referring to the Metropolitan Area Bus Network theory done by Dr. Jun-Shian Lee, the study examines if the KRTC integrated bus routes with the cross-shaped MRT to form a web-shaped public transportation network, what would be the most cost-effective ways of operation; how large an area of service should the shuttle bus reach; whether bus-purchasing or bus-renting would be more feasible financially; and what strategies, advantages and risks of operating such a shuttle bus company would be.
With reference to the analytical theories on Business Competitive Advantages of Dr. Cher Min Fong, the study establishes the competitive edge of a 2nd bus company. The main purpose of this study, with careful comparisons done on bus renting vs. purchasing and investment strategies for operating the 2nd bus company, is based on an underlining wish: trying to bring a possible solution for the successful operation of the KRTC.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0718103-150435
Date18 July 2003
CreatorsWu, Shin-Teh
ContributorsTseng,Cher-Hung, Tasi, H T, Jun-Shian, Lee., Cher Min Fong.
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0718103-150435
Rightsunrestricted, Copyright information available at source archive

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