Brazil is the host of 2014 World Cup and 2016 Olympic Games, so there supposed to be great amount of people around the world visit the country in coming years. Rio de Janeiro is the second biggest city in Brazil (1,256 km²), and has a large population about 6 millions. However, the public transportation of the city is somewhat in a poor condition. It has only two metro lines located in the east part of the city with 32 stations and totally 42 kilometers long. Daily passenger flow is about 1 million. When comparing the city to Atlanta, a 343 km² city with 0.42 million population, which has 4 metro lines with 38 stations and 77 km length, we can say that Rio’s metro system needs expansion urgently.
2. Data
Since the daily passenger flow is around 1 million, there is approximately 0.4-0.5 million people use the metro system as main transportation tool. That is to say only 10% of the population is covered by the metro system. Ticket price is in a flat rate which is $0.95. So nowadays the revenue is around 0.95 million dollars daily. Suppose the ticket price stays same and the expansion of metro system covers 1-2 million more people, the revenue will approximately doubles to over 2 million dollars daily. On the other hand, the cost of metro system expansion is also high, up to 300 million dollars per kilometer. However, the cost can be recovered by servicing huge passenger flows due to World Cup and Olympics in the near future.
3. Reality and problems
Local people in Rio de Janeiro rely a lot on bus system for transportation, so the metro system should provide a rather competitive price rate to compete with the bus system. This brings uncertainty in the operating revenue of metro system. If there are less passenger flows than estimated, the expansion will end in a deficit and actually burden the development of the city. Moreover, to catch up with the open up of 2014 World Cup, construction period is really short. If the construction is delayed, it will lose a big chance to recover the cost.
4. Potential approach
A research on residents’ opinion is very important to decide the route of a new line. With all opinions, we then should balance the cost, potential problem and future profit to make a blue plan. Besides, a detailed financial analysis, living environment analysis and problem solving sheet are necessary. 5. Reference
Metrô Rio: www.metrorio.com.br/en,
Rio de Janeiro: http://en.wikipedia.org/wiki/Rio_de_Janeiro
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