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Welcome to the osm2gtfs wiki, here you can learn how to use osm2gtfs for your city.
To generate a GTFS the program downloads the data about public transportation from OpenStreetMap and then merges it with time information, which need to be provided. Schedule information isn't supposed to be entered in OpenStreetMap.
There are three basic steps you need to check, in order to get this to work for any particular place:
Proper OpenStreetMap data. Consider reading the tutorial about public transport tracking in the OSM wiki, another tutorial about mapping should follow in the next weeks.
Configuration: A file containing instructions on where to download and which OpenStreetMap tags to select
routerelations from a mapped public transport. Also defining some basic meta information about the transport agency and the GTFS publisher.
Schedule: A file containing information of a public transport's schedule like for example at which time a bus is at which bus stop.
Until the default trip creator #33 is completely working, it may be necessary to make some adjustments for your region. Fortunately, osm2gtfs allows to override different parts of the GTFS creation. So it can be extended flexible to fit any city's special needs. It also means, that you probably have to code - at least a bit - to get it to work. See Development for more information.