BRT Business Planning

BRTPlan’s Principal’s pioneered the methodology for designing a BRT system that is profitable from inception. While not possible in all cities, when a BRT system is designed from the beginning to be profitable, a number of alternative contracting and financing options become possible. BRTPlan anchors its business plan in a state-of-the-art service plan.

From this base, most of the key cost drivers, such as projected ridership at different fares, vehicle type,fleet sizes, number of bus operators needed, and other core cost elements can be known in advance. BRTPlan uses the business planning process to help walk decision makers through the key system decisions that will determine the system’s eventual profitability. It will define with the project leadership how many bus operators are needed, and what BRT system elements should be contracted out, under how many separate contracts. We help project leaders determine which system elements should be done in-house and which contracted out. We ground our recommendations in international best practice and use this as a jumping off point to tailor the solutions to fit the individual city.

Once these key decisions are made, BRTPlan can build a financial model for your project which estimates the system’s economic and financial rate of return. Once this has been done, key decisions can be made about which BRT system functions can be funded out of fare revenue and financially ring-fenced, and which need to be supported by the government. BRTPlan can then advise on how best to tender each element of the system that will be contracted out to private operators. The financial model will give the project leadership an estimate of how much the services ought to cost to operate, and what is a reasonable fee per kilometer to be charged. Projects planned in this way are far more likely to be able to secure financing for key project elements.Business Planning