The Remarkable Turnaround of Atlanta Public Transit
MARTA CEO Keith Parker on the agency's hopeful future.
MARTA CEO Keith Parker speaks at an anniversary celebration in June 2014.
(MARTA)
Atlanta's transit agency, MARTA, was on the brink of financial disaster when Keith Parker arrived as
CEO in December of 2012. Ridership was down
roughly 5 percent on the previous year. Annual losses ranged upwards of $33 million. An outside audit found the agency's business model to be
"structurally unsustainable" and projected that without major changes it was on a path toward insolvency.
"The first thing we had to do was convince people the service was even going to be here in five years," says Parker. "There was a real sense that the agency may shutter its doors."
How MARTA's projected remaining reserve fund looked back in 2012. (
KPMG / MARTA)
So Parker, who'd overseen transit agencies in San Antonio and Charlotte, drew up a rescue plan. MARTA would cut unfilled positions but retain existing staff and launch a
transit-oriented development program. He brought more work in-house: the agency developed a
real-time transit information system itself for $50,000, he says, while outside firms wanted more than $1 million. And he convinced Wall Street to upgrade the agency's credit rating.
Then he reinvested the savings. MARTA
increased service and high-frequency hours, upgraded its bus fleet to natural gas, and—most importantly in Parker's eyes—kept fares flat. As of October 2014 ridership was
up for the year. In November, Clayton County voters
overwhelmingly approved a penny sales tax to join the MARTA network, the first expansion since the agency
formed in 1971.
MARTA rolls out a new natural gas bus in October 2013. (
MARTA MARKETING / Flickr)
Parker doesn't intend to rest. Earlier this month, at an annual
"State of MARTA" address, he outlined a new vision delightfully acronymed SEAT—for service, economy, arts, and technology. Goals include a big plan for
better bus service, continued study of
potential system expansion (especially along the GA 400, I-20, and Clifton corridors), a push for public art around stations, and a move to go "all in on the smartphone" with WiFi access and mobile fare payment.
CityLab recently spoke with Parker at length about MARTA's incredible turnaround, its high hopes for the future, and the CEO's noted reputation as an actual rider. The discussion has been edited for space and clarity.
2014 was a really big year for MARTA.
Yes, we had a very good year. We have a balanced budget with a little money left over. We did add the first substantial amount of service in about seven years. We've given raises and or bonuses to all our employees now over the past year.
And very importantly, we've seen the perception of the system change. Where before it seemed that people couldn't wait to criticize the agency and really not have many positive things to say, it seems like we're now becoming one of the kids at the dance who can actually get on the dance floor.
three great projects in the planning stages ready to go. With funding we could finish up the environmental work and start the design and get them under construction in a relatively short amount of time.
They would have enormous positive impact. But I can't assume those projects are going to be built, because we don't have the funding to make that happen right now.
A rendering of transit-oriented development around the Avondale Station. (MARTA)
In the SEAT vision you outlined, part of the "service" plan is the challenge of making buses more attractive. Across the country you find transit agencies, and even the media, they really like to focus on rail. How do you shift that perspective and give buses more attention?
You're dead on. We see it in our customers. We had a survey done last year that indicating there was a significant gap between how people viewed riding the train and how they viewed riding the bus. Rather than just telling people, "no, you're wrong," we are blowing up our bus routes.
We have a study underway called the
Comprehensive Operations Analysis—COA for short—that reexamines every single route in the service. The goal is to come up with a bus network that's faster, that requires fewer transfers, and that's more commonsense. So that people can get from Point A to Point B in a much more customer-friendly manner than now.
We intend to make riding the bus much more pleasant. We want folks to have the same regard for the bus system they do for the rail system.
This push MARTA has with transit-oriented development—that seems like a huge untapped opportunity for lots of transit agencies.
When I first came in I studied and did Google searches to see what people were seeing about the agency. The media, elected officials, everyday citizens. When I looked at a six-month period leading up to when I started in December 2012, there was hardly a single positive story that came out about MARTA.
I thought TOD was a way to begin changing the conversation. Rather than people shaking their heads saying "what has MARTA done now," they say, "wow, that's a good idea." When we now talk about MARTA, and we talk about it as a generator of business, a generator of new jobs, a generator of companies looking to relocate here, that's a great conversation to have.
I'm sure you're familiar with the reports that poor transit access is hurting social mobility in Atlanta. What role do you think a transit agency can play in addressing a problem this large?
It gets back again to infrastructure. Infrastructure isn't just about the roads and the bridges and even the transit routes themselves. It's about a pathway to get people mobility. Social and otherwise.
So the transit system becomes a very affordable, reliable way of improving the economy. We already have bad traffic in this region. If MARTA were to go away and just make the assumption that all those people can afford to drive themselves, everyone's quality of life in this region would go down. Everyone. All of us would be driving more, and stuck on highways. The air quality would certainly go down. And our ability to attractive any new companies and hold onto this creative class of students and young professionals would be severely challenged. So everyone benefits from vibrant mass transit.
so important for transit agency employees and officials to do that?
I had a meeting at lunch today with a reporter and a county commissioner. I used the service to get to those meetings. If the service isn't running properly that means I have to go in with a reporter and a new partner and tell them, "Hey, I'm late because of my service." It's very real to me.
Just as importantly, I can get some conversations going with people who give me ideas about how the service can be better. Sometimes it's pats on the back. Other times they'll point out that sign isn't working properly, you need to go get that fixed. All those things give me valuable feedback.