Does Public Transport Just Cost Money?

Dear Readers,

The costs of public transport are a recurring talking point. When decisions are to be made about new PT systems or extensions to existing ones, the question of costs plays a major role. But does PT just cost money?

A study carried out by the Munich Cluster for the Future of Mobility (MCube) under the direction of the Technical University of Munich (TUM) and commissioned by the DB initiative dedicated to the future of local transport called “Zukunft Nahverkehr“ (ZNV) now shows for the first time that every euro invested in public transport actually returns three times as much to the German economy.

The annual costs of operating buses, trams, underground railways and regional trains amount to around 25 billion euros.  Yet this investment is worthwhile because according to the study, public transport also delivers around 75 billion euros of added value annually.

A large part of this added value comes from the construction and operation of necessary resources, like vehicles, infrastructure, maintenance and day-to-day running. By our sector and our customers! The retail trade, tourism and the labour market all benefit from PT, and PT also makes life easier for commuters. Real estate in well-connected locations increases in value.

Public transport already helps reduce external costs. Traffic accidents and land use, noise, air pollution and climate impact entail social expenditure. These are costs which society as a whole has to pay, for example in the form of taxes. 

Public transport is therefore not just a cost factor; it is indeed a worthwhile investment – with sustainable and future-proof impact for many decades to come.

Best wishes from Oerlinghausen

Christian Schmidt
Managing Director