Data Collection: Determining weights using pair-wise comparison

The following step in our study is to conduct a pair-wise comparison of each element of the hierarchy structure, to determine the weights. The process was developed with the help of a group of 15 experts in the fields of transportation and economics. The experts were divided into three categories of discussion: 5 government, 5 operator and 5 professors/consultants. Each group was divided according to the main stakeholders involved in the decision making of transit subsidies in Panama and their characteristics. A questionnaire was prepared for each group, to conduct the comparison and provide a numerical value for each elements; every step is described in the following part of the study.

3.4.1 Experts Selection

To obtain the weight of each element the opinion of a panel of experts is required. The experts were divided into three discussion categories. The first discussion category are the five government members. These experts were chosen to represent the ideas and judgments of the government of Panama. The five experts were selected from two important institutions: The Ministry of Economy and Finance (MEF) and the Transit and Transportation Authority of Panama (ATTT). These institutions were selected based on their functions in the transit subsidy process. The MEF is in charge of the management of the state resources for the execution of the different plans and programs of the government. Therefore this institution is responsible of assigning the budget for the transit subsidy schemes. The ATTT is the authority in charge the planning, supervision and control of the transit and land operations of the Republic of Panama.

The following discussion group belongs to the private operator. The experts of this category were selected to represent the opinions and preferences of the public transport operator. The operators were included due to the fact that they are one of the principal beneficiaries of the subsidies, therefore it is important to evaluate each scheme including their opinions and

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concerns. The experts were selected from MI BUS, the operating company, responsible for the design, planning and monitoring of the operations of mass transit service in the metropolitan area of Panama.

The last category represents the preferences and knowledge of five experts in the fields of economy and transportation. These consultants were selected to obtain a point of view from a partial source that could provide a balance between the two mentioned groups. For this decision group, the opinion of professors and economists, from the Technological University of Panama (UTP); the state institution of highest hierarchy in scientific and technological education of Panama and the General Comptrollership of the Republic of Panama; the institution responsible of controlling and supervise the management of the state funds. Table 10 contains the description of each expert by group, institution and experience.

Table 10 Discussion Group Information

Discussion Group Institution/Company Position/Experience

Government

Degree in Public Administration with a specialization in Project Management.

Diploma in Management Skills.

Assistant Regional Director of Finance.

Bachelor of Commerce.

Master in International Business.

Transit and Transportation Authority of Panama

Department of Public Urban Transportation Department of Finance

Accounting Assistant

Bachelor in Commerce, Accounting 20 years

Operator MI BUS Cost Analyst. 6 years of experience with MI BUS.

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Bachelor in Commerce.

Director of the Department of Finance.

Bachelor in Industrial Engineering.

Master of Business Administration.

Department of Finance Accounting Assistant

Logistic operator, 6 years of experience.

Logistic operator, 3 years.

Bachelor in Maritime Engineering

Professors and Consultants

Technological University of Panama

Head of the Department of Transportation.

Civil Engineer. 19 years of experience.

Economy Professor, Faculty of Industrial Engineering. 17 years of experience Head of Research.

Bachelor of Maritime Operations and Port.

11 years as professor.

General Comptrollership of

the Republic of Panama

Department of accounting and finance.

Bachelor in Management.

Department of accounting and finance.

Accounting with 16 years of experience.

3.4.2 Questionnaire Development

The questionnaire was developed with relevant information about the subsidy scenario and the method used to evaluate the subsidy schemes proposed. The three main routes with more passengers of Panama were selected for the evaluation; Via España, Transistmica and Tumba Muerto. The experts were informed with the main characteristics of each route and information about the current scenario of the transit subsidies in Panama. Characteristics such as frequency, quantity of passengers, route length, headways and number of trips per day, were included in the questionnaire (see Table 11).

Table 11 Characteristics of the routes

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A brief description about the Analytic Hierarchy Process framework was presented along with the definition of each criteria used to evaluate transit subsidy schemes. The data of each criteria was presented to inform each respondent. This data was provided by the Ministry of Economy and Finance, the Transit and Transportation Authority of Panama and the National Institute of Statistics and Census of Panama (See Table 12). It is important to mention that since there is a legal process on the private company MI BUS, the data of the total profit for the operator will not be provided. The questionnaire was designed similar to a pair-wise comparison matrix (See Appendix 1) to enable the comparison of each element. Every discussion group provided a numerical value, based on the level of importance; presented in the nine-point evaluation scale developed by Saaty. The information provided by the experts in the pair-wise comparison helped us to determine the weights of each stage of the hierarchy structure. The following chapter of this study present a description of the results provided by the experts in the pair-wise comparison.

Table 12 Questionnaire Data

Criteria Description Sub-criteria Data

Subsidy Cost

Distribution of the cost and benefits of subsidies among income classes. A service experienced by users

success of a transit system. Passenger trips per day

Via España: 83,340 Transistmica: 73,370 Tumba Muerto: 84,160

37 Environmental

Sustainability

Benefit of each modes of travel in terms of its

contribution to

environmental protection.

Generally and depending on the occupancy rates public transport produces much lower CO2 emissions than private car.

CO2 Emissions kg per passenger km

Urban bus: 1.23 kg/per passenger km Private car: 9.46 kg/per

passenger km

Governmental Financial Sustainability

Appropriate distribution of state funds to achieve transit improvement.

Total subsidy USD 200.5 million Operator

Financial sustainability

The amount of investment gained from produce unit system output.

Total profit

Profit=Farebox revenue + operating subsidy –

operating cost

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