Beijing-parking-ITDP-China

Bulb-outs, outdoor seating, bike sharing stations andbike parking stands mix with on-street parking spacesin Copenhagen, Lyon and London.Photos: ITDP-China, www.transportphoto.net6.7 Business modelIn Beijing, as in nearly all Chinese cities, parkingoperation and management is fully outsourcedby the district governments. In an open biddingprocedure the operator is selected that paysthe highest fee to the district government inexchange for the right to operate paid on-streetparking. Information on these deals for Beijingare unknown, but in Chinese cities these typicallyvary from 40-80RMB/parking space/month. Theservice level agreements between the governmentand private company are weak and require little tono technology. Data on parking demand, turnoverand revenue are not provided to the governmentand parking fees, set at municipal level, are notrespected.Without experience in parking operation, letalone with high-technology, it is not recommendedfor Beijing’s district governments toset up their own government-owned parkingcompany, procure equipment and start operation.The governments are simply lacking the technicalknow-how and operational experience to implementand operate successful on-street parkingsystems and risk wasting government budgetswith an inferior system. Instead, cooperation withprivate sector companies with operational experienceis essential.Currently parking revenue is not shared withthe government. The best type of business modelis where the government remains in control ofparking revenue but cooperates with privateoperators for investment, technology provisionand operational experience. The city government,or a city-owned company, should start a tenderin which it describes the requirements for theon-street parking system and operation, accordingto the system proposed in this report. Privateoperators participate in a public bid after whichthe winner is announced based on the lowestfee requested from the government, but also oncriteria such as quality of the system, operationalexperience, financial guarantees, etc. The privateBeijing Parking, ITDP-China 1391 March 2015