Non-commercial bus contracts in non-urban New South Wales rely on a funding formula to secure financial support for the delivery of bus services. The formula has four components of which the most controversial (according to the operators) is a distance- based unit rate. The determination of the unit rate varies by category of bus service offered classified by the adult seating capacity of buses. In this paper the author presents a series of statistical models using new operator-specific data to identify the main influences on the fuel consumption of buses, the wear and tear on tyres, and the bus speed, the key determinants of the distance-based unit rates. Special consideration is given to the road conditions and terrain which vary a great deal throughout the geographical settings of non-urban operations. The author found that there are some noteworthy discrepancies in the current set of unit rates used by the regulator. (a).
Abstract