Choices among alternative transit capital investments are often complex and
politically controversial. There is renewed interest in the use of perform
ance indicators to assist in making rational and defensible choices for the
investment of public funds. To improve the evaluation of rail and bus perf
ormance and provide more useful information for transit investment decision
-makers, it is important to use performance indicators that fairly and effi
ciently compare different transit modes. This paper proposes a set of inter
-modal performance indicators in which service input, service output, and s
ervice consumption are measured by total cost, revenue capacity miles/hours
, and unlinked passenger trips/miles respectively based on economic princip
les and evaluation objectives. The proposed improvements involve the inclus
ion of capital as well as operating costs in such comparisons, and the reco
gnition of the widely varying capacities of transit vehicles for seated and
standing passengers. Two California cases, the Los Angeles - Long Beach Co
rridor and the Market/Judah Corridor in San Francisco, are used for testing
their usefulness in the evaluation of the efficiency and effectiveness of
rail and bus services. The results show substantial differences between per
formance indicators in current use and those proposed in this study. The en
hanced inter-modal performance indicators are more appropriate for comparin
g the efficiency and effectiveness of different modes or a combination of t
ransit modes at the corridor and system levels where most major investment
decisions are made.