Creditworthy investigations, from within Australia, the USA and Europe, on the relative cost-effectiveness of buses/light rail/heavy rail, conclude that buses are more frequent, materially cheaper and more flexible to changing public transport demands

Below is an extract from page 138 of AUSTRALIAN INDUSTRY COMMISSION Urban Transport - Volume 1: Report  No. 37 - 15 Feb 1994:

"Box A6.2: Costs of service rail and buses (pg 138)

Appendix D finds that in Adelaide, Melbourne and Perth buses have lower costs of service per passenger-kilometre and seat-kilometre than rail, trams or ferries. It also concludes that in these cities:

    the average real cost of service per passenger-kilometre for buses is more than two-fifths lower than for rail;

    the average cost per seat kilometre for rail services is double what it is for buses;

    the difference in the cost of service is partly due to the fact that buses use less capital, and require less expenditure on maintenance;"

Detailed investigations in both Texas USA 2009 and Italy 2020 conclude that buses are a more cost-effective mode of public transport.

"On average, bus rapid transit (BRT) costs $10.24 million in 1990 dollars per mile to build. This figure is less than half that of that for light rail transit (LightRailTransit), $26.4 million and one-tenth of metro rail transit (MetroRailTransit), $128.2 million".

A recent investigation in Italy, Rail versus bus local public transport services: A social cost comparison methodology (Sept 2020) reported favourably on the cost-benefit of removing rail infrastructure and replacing with electric Bus Rapid Transport (BRT) lanes:

 

"The obtained results would suggest, given the existing levels of demand, to plan a substitution of the rail service with a bus service. In fact, the analysis shows that the bus mode is able to serve the demand at a much lower social cost, preserving almost the same service quality. Then, simple simulations suggest that for the case at study rail service should be preferred only when the level of daily demand doubles and the difference between peak and off-peak almost disappears. In any other circumstances, the bus service appears to be more efficient even when including external costs related to air pollution, congestion and accidents.

It is finally worth noting that the proposed approach might also induce, in the medium-long term, a change in local transport infrastructure investment policies. Indeed, in the case that Italian local routes based on isolated or terminating railroad tracks should switch from rail to bus service, the tracks might be substituted for example by roads dedicated to (electric) Bus Rapid Transport (BRT) lanes, which represent an intermediate transport mode between bus and rail ones in terms of capacity and flexibility to adapt to market developments."