18-12-2011, 11:45 PM
pianist Wrote:i am not sure if buses can compete well with trains.
Trains have very high fixed costs but low operating costs. Buses are the reverse. That is why when SBS got the NEL it changed the bus routes - to drive traffic to the NEL stations and to avoid competing with NEL. When ridership is low the trains lose money. Buses just run less frequently and still make money. When ridership is high the trains make money, while buses have to run more frequently and pay for more fuel, so they don't make that much more money.
In Hong Kong, the MTR, buses, minibuses, taxis and trams all seem to coexist peacefully and profitably. I don't recall any MTR breakdowns in recent memory.