Abstract

The analysis of operations of the passenger traffic operator in the Republic of Srpska (RS) showed that the volume of passenger transport has, for the last fifteen years, been in constant decline. It is of particular importance that the operator has, year after year, recorded a negative balance of business. The way out of the current unfavorable situation in the sector of passenger traffic is based on the application of Public Service Obligation (PSO) based on the Regulation 1370/2007. In order to solve the problems, seven realistically possible variants have been identified. This paper defines the criteria for selecting the best variant, as well as a new integrated fuzzy model for the selection of the best variant that will enable the operator to make a profit. To define the weights of criteria in this paper, we have used the fuzzy PIvot Pairwise RElative Criteria Importance Assessment (F-PIPRECIA) method, while for ranking and selection of the best variant, we have used the Fuzzy Evaluation based on Distance from Average Solution (F-EDAS) method. Results show that the seventh variant: “Increase in revenue from ticket sales and PSO services and reduction in costs“ is the best solution in current conditions. Validation tests are performed with different scenarios and approaches and show that the model is stable. A validity test was created consisting of variations in the significance of model input parameters, testing of reverse rank, applying the fuzzy Measurement Alternatives and Ranking according to the COmpromise Solution (F-MARCOS), fuzzy Simple Additive Weighing (F-SAW) method, and fuzzy Technique for Order of Preference by Similarity to Ideal Solution (F-TOPSIS). As a part of the validation tests, Spearman’s coefficient of correlation (SCC) in some scenarios is performed and weights of the criteria have been obtained using the Fuzzy Analytic Hierarchy Process (F-AHP) and Full Consistency Method (FUCOM).

Highlights

  • One of the most important factors for the functioning and development of cities and regions according to Stojić et al [1] is the public transport of passengers

  • Spearman's coefficient of correlation has the range of 0.786–1.00, which represents a high degree of correlation, and the results obtained using the integrated fuzzy model are considered

  • Spearman’s coefficient of correlation has the range of 0.786–1.00, which represents costs for the realization of Public Service Obligation (PSO) by the operators that are in a state or local ownership may affect a high degree of correlation, and the results obtained using the integrated fuzzy model are considered the possibility of implementing the model

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Summary

Introduction

One of the most important factors for the functioning and development of cities and regions according to Stojić et al [1] is the public transport of passengers. Service Obligation (PSO) system represents a model for financing unprofitable transport services of a common interest of the country, the region, or the city and local community. 1960s, the EU has tried to improve and develop the concept of PSO in a number of sub-legal acts and regulations in all modes of transport, especially in rail and road public passenger transport (PPT). The volume and service quality, the number of lines and transportation units, the model of determining the amount of compensation for the execution of the service, as well as other mutual rights and obligations, are regulated by the contract.

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