Financing
Up to the year 2000, 477 million euros had been spent building the network, and 304 million euros were earmarked in 2002 for the construction of the third phase of extensions; around 23.5 million per kilometre of track. This value is relatively high when compared to the cost of similar tracks in Germany, where 15 million euros are spent per kilometre of track in the city centre, and 10 million in suburban areas. The difference is due to the significant urban renewal projects undertaken in Strasbourg as part of the tramway’s construction.
The rolling stock cost 216.3 million euros: 118 million for the Eurotram units and 98.3 million for the Citadis trams. Investment in the Strasbourg tramway is mainly financed with the versement transport (VT), a tax levied in Strasbourg at 2% of payrolls, the highest rate allowed.
In the nine French urban areas with more than 450 000 inhabitants (excluding Paris), income from ticket sales covers on average 24% of costs, while the VT contributes 44%. Local authorities cover a further 31% of costs, while the remaining 1% is a direct state subsidy. In smaller cities, ticket sales make up an even smaller proportion of total funding.
The mean cost per passenger transported in these nine urban areas is 1.3€, but varies between 0.8 euros and 2 euros. This value of 1.3 euros corresponds to the price of a pack of ten tickets (12.7€). For comparison, the CTS reported mean profits of 0.5€ per journey in 2009.
The overall financing of the CTS, and thus the current operation of the tramway is heavily subsidized by local authorities. In 2009, the CTS reported income of 194,194,702€ and costs of 192,014,173€, generating a profit of 2,180,528€. The total amount of subsidies paid in 2009 by the Urban Community of Strasbourg and the Bas-Rhin Département was 120,720,000€.
Read more about this topic: Strasbourg Tramway