Supply Chain Digital learns that OC Transpo never rests in its effort to provide Ottawa with the best public transportation possible
Written by Ulrika G. Gerth & Produced by Stephen An
For a public enterprise like OC Transpo it would be easy to rest on old merits. It does, after all, boast one of the most successful rapid transit systems in North America. Nearly 370,000 passengers a day ride the fleet of 1,000 buses and three trains serving the City of Ottawa in Ontario, Canada – an unusually high number for a population its size.
But ask General Manager Alain Mercier about any aspect of the business and there is inevitably a major upgrade, initiative or expansion planned or under way.
The transit system, for example, awaits a $2 billion expansion; the bus fleet, until 10 years ago one of the oldest in the country, is now among the newest with even more amenities being added in the near future; the drivers, all 1,700 of them, will be trained within the next 36 months to absorb the benefits of another new program, Smart Driver; and let’s not forget about the revamping of the web site, the new approach to vendors and manufacturers, and the drive for zero-emission technology.
“I came onboard a little over two years ago and my goal is to transform the business by making it more responsive to customers, making our services more convenient and easier to use, while doing this all at a lower cost for both users and taxpayers,” says Mercier, who has spent three decades in the rail and bus industries, including several years as CEO of two transportation companies.
The City of Ottawa mandates OC Transpo to deliver safe, reliable, and courteous service at a reasonable price. Public transport in the Canadian capital dates back to 1866. Then 36 horses, six horse-drawn cars and five bobsleds formed the backbone of the operation. OC Transpo emerged in its current form in 1972 and now also serves surrounding suburban communities, from Barrhaven in the south to Kanata in the west and Orleans in the east, as well as the downtown core of the City of Gatineau, on the Quebec side of the National Capital Region.
EXPANSION OF SERVICE
Those suburban areas will in a few years enjoy even faster service with the expansion of the bus rapid transit system, which currently runs from one end of Ottawa to the other and is open only to OC Transpo and emergency vehicles. The Transitway has since its inception in 1983 carried 1.5 billion riders at a speed of operation that is faster than most subway systems.
The expansion is part of a massive multi-billion-dollar effort, outlined in the 25-year outlook and 10-year capital plan, to meet the demands of a growing region. A 7.8-mile long stretch of bus rapid transit downtown will also be converted to rail, a move that will not only reduce emissions but, together with other improvements, cut annual costs by $65 million during its first year of operation as competing bus services will be consolidated into the new rail line. Scheduled for completion in 2019, the first phase is under way, with more funding needs to be committed and contracts awarded.
“We need economies of scale to sustain the demand for additional capacity,” Mercier explains. “The plan is to build a tunnel and operate a rail system to access downtown. We’ll introduce a grid structure to the transit system with the opening of the rail line. It will create more transfers, but they will be of higher quality. This is a natural occurrence in any transit system that evolves from a smaller legacy system to a high capacity system.”
GREEN INITIATIVE
The rail conversion also fits into OC Transpo’s Green Fleet Strategy. With zero emissions as the long-term goal, $450 million has over the past decade been invested to modernize the bus fleet, bringing down the average age from 14 to seven years. By 2019, OC Transpo will consume 10 million liters less of diesel as a result of rail expansion and new hybrid bus technology, and, by 2015, the worst polluters will have retired for good.
“Zero emissions requires fuel-cell technology and the industry is not there yet,” Mercier says. “But there are prototypes, so hydrogen-based fuel cells could become an option over the next 10 years.”
The fleet, including 375 articulated buses, has also gone high-tech with the introduction of another new program, SmartBus. Among the features are GPS, Automated Vehicle Location and Control, and schedule adherence displays. Passengers will also see a number of new amenities such as automated stop announcements and the introduction of SmartCard in 2011, a chip-based technology that can be reloaded online rather than at the station.
“As we introduce an increased number of connections, it becomes more important to manage the more complex service. It requires a tremendous amount of data in real time to make operational decisions to ensure customers can connect in a timely manner,” Mercier points out. “We built an integrated control center in 2007 and the objective is to manage all customer, operational and security aspects from one center working in real time.”
COMPLEX JOB
New technology also put new demands on drivers. Training programs that used to run every five to eight years now return every three years. The most recent initiative is Smart Driver, developed by the Canadian Urban Transit Association to assist transit agencies cut fuel costs by teaching certain driving skills. Initial results have been promising, Mercier says, with side benefits such as reduced maintenance costs and increased passenger comfort.
“Our recruitment program and training have changed radically: it’s about service delivery as opposed to lessons in driving a bus,” Mercier says. “For drivers, the job is far more complex now than it was 25 years ago.”
Finally, OC Transpo is restructuring its relationship with vendors. A Vendor Managed Inventory, VMI, is gradually simplifying the previous approach of posting on MERX Canadian Public Tenders, resulting in a leaner supply chain. Mercier also views manufacturers as partners, a novel idea in the industry.
“Our philosophy is to look toward the manufacturer for lifetime support of our bus fleet as opposed to being just a one-time purchase,” Mercier states. “We need the manufacturing and supply industry to maintain the highest level of availability.”
FACTS AT A GLANCE
COMPANY NAME: OC Transpo
GENERAL MANAGER: Alain Mercier
OPERATIONS: An urban transit service of over 1,000 buses and three trains serving the City of Ottawa, Ontario, Canada, and the downtown core of the nearby City of Gatineau, Quebec.
ESTABLISHED: 1972
EMPLOYEES: 3050
REVENUE: $364 million (including $194 million in municipal contributions)
www.octranspo.com
View Digital Corporate Profile of OCTranspo in Supplychain Digital January 2010