1. This is HSL

Helsinki Region Transport (HSL) is a joint local authority whose task is to develop and provide smooth, reliable transport solutions to customers' needs in the region.

Our member municipalities are Helsinki, Espoo, Vantaa, Kauniainen, Kerava, Kirkkonummi, Sipoo, and from the beginning of 2018, Siuntio and Tuusula. In 2017, a total of 375 million journeys were made on HSL’s transport services. Our operating income amounted to over 657 million euros, of which ticket revenue accounted for 54.4 per cent. We have 391 employees.

We provide attractive and efficient public transport services and develop effective mobility together with other operators in the field. According to our vision, we strive to ensure that the region’s residents have a good day-to-day life and to make the region the most functional urban region in the world.

We promote attractive eco-friendly mobility options that promote people’s wellbeing. Our employees share a common goal to make travel in the region more sustainable withe less emissions than at present.

HSL’s duties:

• Is responsible for the preparation of the Helsinki Region Transport System Plan (HLJ),
• Plans and organizes public transport in the region and improves its operating conditions,
• Procures bus, tram, Metro, ferry and commuter train services,
• Approves the public transport fare and ticketing system as well as ticket prices;
• Is responsible for public transport marketing and passenger information, and
• Organizes ticket sales and is responsible for ticket inspection.

2. From the Executive Director

The year 2017 was marked by customer focus, a new strategy and development of digital services.

In the light of figures, year 2017 was a success. We ran a deficit of EUR 2.5 million, but our performance was much better than budgeted for. Customer satisfaction remained high (4.1) and passenger numbers increased by over two per cent. Ticket revenue was up from the previous year by 7.9 per cent, exceeding the budget by 4.1 per cent. I want to warmly thank not only our customers, but also all our staff for their efforts to develop public transport meeting customer needs.

What will particularly be remembered of 2017 are the successful introduction of the anticipated West Metro, the tripling of the number of city bikes and the extensions to the accessibility of the popular mobile ticket. Our mobile application has been downloaded to more than 900,000 smartphones in March 2018.

As ticket sales were terminated on commuter train services in summer 2017, we provided customers with new ways to buy single tickets: the advance purchase single tickets and, towards the end of the year, the possibility to buy tickets from Helsinki parking ticket machines.

HSL’s strategy was renewed in 2017. The strategy was renewed in cooperation with staff, customers and stakeholders, for example in the creative Strackathon days. It was great to see the strong commitment of staff and stakeholders to the development of HSL and public transport. Our strategy emphasizes sustainable development, the good day-to-day life of passengers and the development of the most functional urban region in the world.

An effective trunk route network is one of the focal points of our strategy. This means frequently running trunk route and feeder services with good service. The model adds transfers to travel chains that we concentrate, for example, in transport nodes with commercial services. We also improve the security, lighting and accessibility of interchanges in cooperation with other urban infrastructure developers.

Customer orientation is emphasized in our operations. It is a strategic focus area as well as the starting point for the organizational restructuring of the previous year. We consider the customer perspective at an earlier planning stage.

We have gathered information about customers' needs and wishes, for example with digital surveys and panels, as well as by monitoring more accurate user information. Customer-oriented planning has resulted in, for example, real-time stop information and more streamlined route planning.

The new Act on Transport Services transforms mobility. As the competent public transport authority, we open interfaces for the retail sale of single tickets and, in the future, monthly packages. I am convinced that in the future travel chains are bought more and more as packages.

HSL has a fine position in developing public transport services in the region. Our goal is, in line with our vision, to create the most functional urban region in the world.

3. Our strategy

3.1. The new strategy aims for excellence

According to our renewed vision, we aim to ensure that the region’s residents have a good day-to-day life and to make the region the most functional urban region in the world.

On 12 December, HSL's Executive Board approved the new strategy, mission, vision and strategic focus areas. They emphasize sustainable development; in addition to environmental friendliness and zero emissions, we also seek financial and social sustainability.

The customer is more clearly at the heart of our strategy. We aim for excellent customer experience and raise the customers and their needs at the heart of all our planning and operations.

The strategy highlights an effective trunk route network that enables smooth journeys. In addition, it emphasizes continuous renewal and anticipation of changes, active cooperation, as well as good and responsible finances, enabling competitive ticket prices.

The new strategy has been prepared transparently and in dialogue. Customers, stakeholder representatives and staff have participated in the work. HSL's internal workshops were organized for the Executive Board, management group, supervisors and staff. In November, stakeholder representatives worked on our strategy at the "Strackathon" with five teams. The ideas and feedback gathered during the preliminary work have been widely used in the preparation of the strategy.

The strategy adopted by the Executive Board will be utilized in the planning of future years’ operations. The strategy is being finalized, and definitive approval will be made by the General Meeting in 2018.

3.2. Realization of strategic objectives in 2017

In 2017, nine strategic goals were in place to support our mission and vision. We monitored their realization with indicators derived from our operations.

4. Public transport in figures

In 2017, HSL’s transport services had 375 million boardings. Buses are the most popular mode of transport, with over half of all journeys made on them. Our services are reliable: over 99 per cent of scheduled services are operated.

5. Traveling with the customer

5.1. The West Metro turned Espoo into a metro city

The West Metro, prepared, constructed and anticipated for years in Espoo, was opened in joyful atmosphere in November 2017. The West Metro introduced 14 kilometers of new Metro line and eight new stations in the biggest reform in the history of the Helsinki Metro.

In early 2017, the West Metro and its stations were tested, and Helsinki City Transport HKL performed test drives on the new line. At the same time, the accessibility of all new stations was ensured. In June, we moved to the authorities' reviews, after which Länsimetro Oy, HSL and HKL together decided the opening day of the West Metro to be 18 November.

On the opening day, the West Metro started service at 5am from Matinkylä and Itäkeskus. There were hundreds of enthusiastic passengers in the first Metro train, and throughout the day, the Metro had 288,000 boardings. The first weekend of service also witnessed an exceptional amount of people.

The opening of the West Metro was celebrated in Matinkylä's Iso Omena shopping center and at Niittykumpu, Tapiola and Lauttasaari stations. In Matinkylä, representatives of the City of Espoo, HSL, HKL and Länsimetro Oy gave speeches. The event featured the West Metro musical and other music, and included the HSL mascot, Välkky.

On Monday morning, 20 November, the West Metro was operated for the first time on a weekday morning, with the frequent rush-hour headways.

5.2. New Journey Planner was introduced – the service is being constantly developed

A new Journey Planner was introduced in February 2017.  The new planner has about 150,000 daily users, up to 200,000 on peak days.

The new Journey Planner was designed in particular for mobile users, as three out of four use the service on a mobile device. The Journey Planner finds the fastest route to the destination for the user and offers a variety of options for travel. Users can also track HSL-area buses, commuter trains, trams and the Metro in real-time.

In spring 2017, the immensely popular city bikes were included in the Journey Planner. The service shows how many bikes are available at different stations, which is the best route to take with the city and how cycling can be combined with other modes of transport.

The new Journey Planner received a lot of feedback from users throughout the year. The feedback was, for example, used to correct the OpenStreetMap data based on the open data of the Journey Planner. Accessibility of the Journey Planner was improved. The planner is being constantly developed and new features are still published every two weeks.

The new Journey Planner was developed together with the Finnish Transport Agency. The Journey Planner is based on the Digitransit service platform, with HSL responsible for its development. In 2017, the same Digitransit service was adapted and released for use by ten other Finnish cities. Included are Hämeenlinna, Joensuu, Jyväskylä, Kotka, Kuopio, Lahti, Lappeenranta, Mikkeli, Oulu and Turku. The Journey Planner has been developed on open source code and open data principles with open interfaces. Anyone can access the source code and interfaces and develop new mobility services.

Alongside the new service, the old Journey Planner was initially used, but was closed in November 2017.

5.3. Stop displays were tuned to the passengers' frequency

We revised the layout and content of large stop displays.

The new look of stop displays was tested at a few tram stops in July and August. During the test period, feedback on the displays and their functionality was collected from passengers In addition to development suggestions, the new displays were also praised for their clarity.

Based on the feedback, the functionality of the displays was improved during the summer. Text contrast was enhanced, and information shown on the displays was added according to customers' wishes. Now, the timetables show with a bigger font two or three of the next departures, so that the passengers can see when approaching the stop whether they need to hurry. In addition to the destination, the displays show the via point.

In October 2017, the revised layout was introduced on all major stop displays with electronic TFT technology.

5.4. The instant feedback made the passengers' voice heard

We introduced a new instant feedback system. The service, easy to use on the move, focuses the feedback directly on the appropriate vehicle.

The aim is to improve the quality of public transport by providing passengers with an easy and quick way to give praise for a smooth journey or feedback on e.g. faults or service. The system allocates the feedback directly to the right vehicle, Allowing corrective measures to be taken as soon as possible and delivering significant operational benefits compared to the old feedback system.

Instant feedback is given on a smartphone in real-time directly onboard vehicles and at the stops. The passenger touches the feedback label with their smart device or photographs the QR code of the label, and the appropriate feedback form opens automatically. The feedback given can be reported in real time.

The instant feedback system experiment was launched in February on a few bus routes in Helsinki. The experiment was a success, and over 60% of the feedback given through the system was positive.

The instant feedback system was extended to city bikes in the summer and during the autumn to trams, tram stops, Metro services and the new stations of the West Metro.

5.5. The mobile ticket was brought up to date

A new version of HSL's popular mobile ticket application was introduced and by the end of the year, the application had more than 700,000 users.

In March, bank and credit cards were introduced as payment methods in the mobile ticket application. In addition, mobile payment, charged to the phone bill, continues to be in use.

In September, day tickets for all zones were introduced alongside single tickets. With the update, tickets can also be purchased in advance. At the end of the year, tickets for children between the ages of 7 and 16 were introduced to the mobile ticket selection.

At the end of the year, we announced that the prices of tickets purchased through the mobile application would decrease by 25% at the beginning of 2018. Later on, the selection will also include an auto-renewing subscription, student tickets, season tickets and new payment methods.

5.6. New ways to buy tickets

In the new sales locations and channels, buying a ticket is easier and smoother. At the same time, some of the old ticket sales channels were closed.

Ticket sales on commuter trains was ended in the summer. As a result, conductors have more time to serve all customers in all cars of the train. The reform affected all trains in the HSL area as well as VR’s commuter trains. To support the change, we added more ticket machines at train stations, and in August, ticket vendors sold tickets and guided passengers on platforms during the busiest travel times.

In June, we introduced advance purchase single tickets. They are sold at all ticket sales locations. The tickets can be purchased in advance and used when needed.

In the autumn, we smoothed the passage of ferry passengers from the port to the city by concluding cooperation agreements with Eckerö Line and Tallink. The cooperation allows HSL tickets to be purchased in advance on cruise ships between Helsinki and Tallinn.

Tickets can also be purchased from parking ticket machines. Tickets are available from the approximately four hundred parking ticket machines in Helsinki accepting Visa or MasterCard. The reform, introduced in December, offers a good opportunity to buy a ticket, for example, for the occasional users of Park and Ride.

At the end of the year, we announced that tram drivers would end ticket sales in February 2018. Ending driver ticket sales will speed up tram services and make them more punctual.

5.7. New ideas from the customer panel

We introduced an electronic customer panel for dialogue, feedback gathering and service development.

In February, we recruited customers in the social media to a customer panel for gathering customers' opinions and ideas about public transport. In April, we invited eight of those who had joined the customer panel to a personal interview to test the prototype of the online top up of Travel Cards.

6. Sustainably in the city

6.1. New tram route network delivered more frequent service on the key routes

Trams provide a frequent and regular service in central Helsinki. Different parts of the city can be reached smoothly with a combination of routes. The reforms serve the changing mobility needs of passengers.

We introduced the new tram route network in August 2017. Routes of trams 1, 2, 3, 7, and 9 changed and some schedules were revised. The route network expanded with new links to Reijolankatu in Laakso and Välimerenkatu in Jätkäsaari.

The starting point for the reform was to provide frequent and regular service on the most heavily traveled routes with a combination of two tram routes. This improves tram services, for example, between Töölö and Sörnäinen, as trams 1 and 8 run along Helsinginkatu with joint headways of about 5-6 minutes.

The new tram route network also attracted passengers, as the number of boardings in the last four months of 2017 increased by nearly 10 per cent from the previous year.

At the same time, we change the layout of route maps and added the names of all stops on them. The geographic map presents the tram routes on the street network, and the schematic map, presents the new routes without a map base.

There will be more changes to the tram network in the coming years as new tracks will be completed in, for example, Hernesaari, Kalasatama, Ilmala and Jätkäsaari. Tram services will also expand to outside the central city with the construction of the Raide-Jokeri light rail link in the next few years, and the Kruunusillat bridges allowing service to be extended to Laajasalo.

6.2. Eco-friendly fleet choices

Linkker electric buses and biofuels became part of urban transport. These concrete actions will bring us closer to the objective of reducing carbon-dioxide emissions.

In January 2017, a major environmental step was taken in Helsinki, when the first Linkker electric bus entered into service. During the winter, a total of four Linkker buses entered into service in Helsinki, the first on route 23 running between Ruskeasuo and the Railway Square.

In addition to the introduction of the energy-saving Linkker electric buses, it was reported in the summer that HSL has decided to switch entirely to using biofuel. HSL, the City of Helsinki and the producers of renewable fuels involved in the project are all pioneers in carbon-neutral transport. It is a project of international significance.

At the beginning of autumn timetable season, more than fifty new buses were introduced on HSL’s transport services, all below the strict Euro 6 emission limits. Additionally, a competition was organized for bus operators on measures to reduce the environmental burden. A total of 40 proposals were received from six operators.

Our goal is to cut local emissions and carbon-dioxide emissions from public transport by more than 90 per cent from 2010 to 2025.  Achieving this goal requires the latest vehicle technology, the best fuels and the use of electricity as an energy source.

6.3. The number of city bikes tripled

In summer 2017, the city bike service nearly tripled in Helsinki. The service was also tested in Matinkylä and Olari in Espoo. Altogether, there were about 1,500 yellow city bikes. The bikes were very popular, and their utilization rate was high.

The number of city bikes increased in Helsinki when the bikes were introduced in Lauttasaari, Pasila, Käpylä and Kalasatama. In summer 2017, the service was also improved so that the bikes could be returned next to a full station.

In Espoo, ten bike stations were placed in the Matinkylä and Olari area with a hundred city bikes. The stations and bikes were borrowed from Helsinki. The bikes in Helsinki and Espoo were part of the same system, so users could ride equally in Helsinki and Espoo.

The experiment in Espoo provided good feedback, and in summer 2018 city bikes will be widely introduced also in Espoo. The same operator is also responsible for the Helsinki city bike system, which enables the systems to be integrated.

City bikes are the responsibility of HKL and, from 2018, also the City of Espoo. They buy the service from City Bike Finland Oy. HSL is responsible for city bike customer communications, marketing and digital services.

7. Societal contributor

7.1 The MAL 2019 plan looks into the future

During the year under review, studies were made to support the MAL 2019 planning of land use, housing and transport in the Helsinki region. In addition, the objectives and indicators of the plan were decided upon. The impact assessment and assessment methods of the plan were described in the draft assessment program, which was circulated for comments in the autumn.

In the MAL 2019 project, a joint land use, housing and transport plan is drawn up for the Helsinki region. The goal is to make the Helsinki region low-emission, attractive, prosperous and vibrant. The drawing up of a joint plan has been agreed in the MAL agreement concluded in June 2016 between HSL, the municipalities of the Helsinki region and the state. The MAL 2019 plan will include the means and measures for 2030 and the development guidelines for up to 2050.

In early 2017, HSL and the region’s municipalities surveyed residents' views on the development of the region. According to the survey, the respondents want to reduce traffic emissions and invest more in public transport.

Read more on the MAL 2019 plan at https://www.hsl.fi/mal (only in Finnish)

7.2. HSL expanded to the west and northeast

In the early part of the year, Siuntio and Tuusula decided to join HSL in 2018. The joining of the municipalities will bring about 44,000 new residents to the HSL area.

At the end of January 2017, the municipal council of Siuntio decided to that the municipality would join HSL. The main reason for joining was to secure commuter train services as 45 per cent of Siuntio residents work in the metropolitan area, and up to 44 per cent of journeys from Siuntio to Helsinki are made by commuter train.

The municipal council of Tuusula made the decision to join HSL in February. As a member of HSL, Tuusula will become more integrated with the Helsinki region. Tuusula residents can make better use of public transport in the HSL area, in particular the trunk rail network.

In October, HSL studied the travel habits of residents of Tuusula with a survey. The results of the survey help to develop the best possible route network for Tuusula residents.

7.3. Intelligent services and cooperation

The popularity of intelligent transport and mobility services is growing. HSL is also involved in the development of new mobility services.

MaaS comes from words Mobility as a Service. In practice, it means that customers get all mobility services from one location. Usually, MaaS refers to a mobile application that allows the customer to easily access mobility services without having to contract with each service provider separately or purchase a separate ticket for each part of the travel chain.

At the end of 2016, we started cooperation with Maas Global, whose Whim application allows for the purchase of HSL's single tickets. We also cooperated with OP's mobility services in the OP Matka pilot. In the experiment, a mobility service for companies was tested, which promotes the use of sustainable transport modes by employees and facilitates the management of travel expenses. The service also included taxis and DriveNow car-sharing cars.

During the year, we also negotiated with other mobility service providers.

We will open a ticket sales interface in accordance with the new Act on Transport Services. The interface allows mobility service operators to easily purchase HSL tickets for sale on their own services.

In addition, we are launching a two-year mobility service IdeaLab program, open to Finnish and foreign operators in the transport services sector. The program will co-test new types of mobility models.

7.4. End stop for discrimination

HSL, together with HKL and the Finnish League for Human Rights, organized a two-week campaign against harassment and discrimination on public transport.

Stop! In February, the ‘End stop for discrimination’ campaign encouraged people to tackle harassment and discrimination on public transport and to support the victims of harassment.

The campaign received plenty of positive feedback. It involved people who had personally experienced discrimination, as well as other public transport users and public figures. On the campaign website (http://www.paatepysakki.fi/2017/02/joukkoliikenne-kuuluu-kaikille/, pages only in Finnish), they tell about their experiences and the importance of opposing discrimination.

8. Staff

8.1. HSL as an employer

At the end of 2017, we had 391 employees, of whom 41 were supervisors. Our biggest employee groups are those working in expert tasks in public transport planning, research and information systems, and those working in ticket inspection.

8.2. Employee satisfaction is built on team spirit

We again surveyed our staff satisfaction in October. The results remain good. The most positive reviews are related to colleagues and supervisory work.

According to the feedback (response rate 81 per cent), cooperation with colleagues continues to be a major strength. Most of the employees gave their colleagues positive feedback on team spirit and cooperation, and felt that they were valued in their own team. Management and supervisory work were also evaluated more positively in all respects.

In many of the own work-related issues (competence in relation to job requirements, clarity of the job content, authority to handle one’s own work), the feedback was again excellent. On the other hand, enthusiasm for one’s own work had fallen slightly compared to the previous year, and more people had felt increasingly busy at work.

The functioning of one’s own team was experienced as somewhat deteriorated from the previous year. More critical feedback was given on the clarity of the tasks of one’s own team. The result may be affected by the organizational change that came into effect at the beginning of the year. However, the results remained good.

The experience of customer focus as a whole was approximately at the previous year's level. Based on the feedback, we still need to develop the practices that produce good customer experience.

8.3. New ticket inspectors in training

The six-week inspector training course taught customer service, law and ticket categories. There were plenty of applications for the course.

The inspector course, organized at the beginning of 2017, had 453 applicants, of which 10 were selected for the course. They all completed the course as ticket inspectors and started a six-month practice period that is part of the training. In addition, three employees of the City of Tampere Parking Control participated in the course, who are starting inspection operations in the Tampere region transport services.

The inspector course also includes a lot of theory. Among other things, customer service, the Act on the Public Transport Penalty Fares, as well as HSL and VR ticket categories are studied on the course. Participants must also successfully complete a few written exams. In addition, there is a lot of practical training together with more experienced inspectors.

The 2017 course was the fifth of its kind. Additionally, the inspection unit arranged a course that trained eight Securitas security stewards to assist inspectors for example in the Kamppi area during the weekend night inspections.

During the weekend festival held in Kyläsaari, Helsinki in August, ticket inspectors conducted intense control operations as in 2016. In addition to ticket inspection, the inspectors advised passengers on route options and buying tickets. The passengers thanked the inspectors for their advice especially on the Metro services.

8.4. Online recruitment

We have developed our recruiting and now announce vacancies online on the Jobilla platform.

In our recruitment communications, we emphasize good working community as well as sustainable and customer-oriented tasks that develop the entire urban area.  The work done at HSL is important to many residents’ everyday lives.

Good employee experience is the starting point and the most effective way to tell job applicants about our operations. We have encouraged our employees to share their experiences of their work and working days also in the social media.

We currently use the Jobilla service in recruitment. The service allows employers and jobseekers to meet through announcements, applications and CVs all shared within a single service.

9. Financial review

The finances and ticket sales developed positively.

After financial expenses and depreciation, HSL's 2017 result showed a deficit of EUR 2.5 million, with a budgeted deficit of EUR 22.7 million.

Operating income in 2017

• HSL’s operating income totaled EUR 657.2 million, exceeding the revised budget by EUR 14.5 million (2.2%).
• Ticket revenue accounted for 54.4% of the operating income, municipal contributions for 42.9%.
• Ticket revenue amounted to EUR 357.7 million, exceeding the budget by EUR 14.1 million (4.1%), an increase of 7.9 per cent from the previous year. Ticket revenue covered 55.2% of HSL's operating expenses. Ticket prices rose by 4.1% at the beginning of 2017.
• Municipal contributions totaled EUR 281.9 million.
• State subsidies to public transport in large cities was EUR 4.7 million. Other grants and subsidies amounted to EUR 1.3 million.
• The remainder of the revenue mainly consisted of ticket inspection revenue, income from Travel Card equipment charged to operators and income from the rental of drivers’ rest facilities.

Operating expenses in 2017

• Operating expenses totaled EUR 648.1 million, EUR 29.7 million less than budgeted.
• Operating costs paid for transport services amounted to EUR 500.8 million, or 77.3% of HSL's operating expenses.
• HSL paid its member municipalities in total EUR 88.4 million for the use of public transport infrastructure. This accounted for 13.6% of the operating expenses.
• Moderate wage solutions and a decrease in the prices of fuels and lubricants and other energy prices led to a lower average change in cost level than anticipated in the budget.
• Investment expenses amounted to EUR 21.2 million, which was EUR 11.6 million (35.3%) below the budget. In total EUR 16.7 million of the investment expenses related to the purchases for the Ticketing and Information System project.

Our ticket revenue developed very positively, and passenger numbers increased also. In total 374.7 million journeys, over one million journeys a day, were made on HSL’s transport services in 2017. Passenger numbers grew by two per cent on the previous year. The growth in other sales is driven by the strong growth of mobile ticket sales, around 270 per cent. Other operating income consisted mainly of state subsidies, ticket inspection revenue, as well as income from Travel Card equipment charged to operators and income from the rental of drivers’ rest facilities.

The part of our expenses not covered by ticket revenue or other operating income is covered by municipal contributions paid by the member municipalities. Municipal contributions may cover up to half of expenses.  In 2017, municipal contributions covered 44 per cent of all expenses. The cost of public transport increased by an average of 0.7 per cent in 2017, with an average increase of 1.2 per cent allowed for in the budget.

Less money was spent on infrastructure compensations than was estimated in the budget mainly because the infrastructure compensations for the West Metro were partially transferred to future years. In November 2017, the General Meeting approved such an amendment to the budget. Of the investment expenses, the largest were purchases related to the TIS project. In total EUR 4.5 million was spent on developing other operational information systems, customer applications and the local area network. The main reason for coming in below the budget was the postponement of ticketing and information system projects.

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10. Executive Board

The Board has 14 members, namely the Chair, Vice Chair and 12 other members. Each member has his or her own personal deputy. The seat allocation of the Board is determined by the original capital holdings of the member municipalities.

HSL's Executive Board 1 January – 30 June 2017

HSL's new Board commenced its term of office on 1 July 2017.

HSL Audit Committee

HSL Audit Committee 1 January – 30 June 2017

HSL Audit Committee 1 July 2017–

Experts

Experts 1 January – 30 June 2017

Experts 1 July 2017–

Auditing

During the financial year, auditing was performed by KPMG Julkishallinnon Palvelut Oy, and the accountable auditor was Leif-Erik Forsberg, CPFA, APA.