Lessons in ownership, regulation and management from 100 years of bus transport in Sri Lanka

Sri Lanka observes 100 years of bus passenger transport in 2007. During this period the country has seen different forms of service providers ranging from private sector monopolies to state sector monopolies. It also has seen several changes in state policy ranging from welfare orientated service provision to entire market determined without any regulation. The existing regulated mixed competition is also characterized by poorly equipped regulators. In conclusion, the paper traces the different stages of failure that have led to the poor quality of bus transport services existing at present.     

Is the bus transport contracting system in South Africa leading to trusting relationships between contracted parties? An analysis of funding issues and the impact on relations between government and operators

The 1996 South African White Paper on National Transport policy provided the guidelines for the restructuring of the commuter bus industry. The restructuring objectives were based on improving the competitiveness of and service levels within the industry through a competitive tendering regime, the selective implementation of negotiated contracts and the general transformation of the industry to also include improved transparency in the funding arrangements between government and operators.In order to set the context of the paper, a brief overview is provided of the progress made with policy implementation and the background to funding issues that are experienced in the bus transport sector. To gauge the impact of the funding issues on the relationship between government and operators, a survey of the largest contracted operators was undertaken to determine, amongst other, how these funding issues have potentially impacted on trusting relationships between contracted parties.     

Growing patronage - Challenges and what has been found to work

This paper synthesizes evidence on growing public transport patronage. The paper firstly examines barriers to patronage growth before reviewing evidence on endogenous factors (those within the control of operators and regulators) and exogenous factors (those factors such as socio-economic influences which are not controlled by regulators/operators) which affect public transport patronage. Suggested barriers include capacity, network transfers, perceptions and investment/subsidy needs. Evidence is presented suggesting that reliability, service levels and fares are the principal tools to adopt in growing patronage. Car ownership, income and population growth, employment and urban sprawl are amongst the exogenous factors identified as influencing patronage.     

Deregulation policy and revitalization of Singapore's bunker supply industry: An appraisal

High bunkering standards are important for ship operators and port authorities for a variety of reasons. When problems arise they may have serious consequences for a port's image. Faced with a range of difficulties, since 1985 Singapore has attempted to revitalize and modernize its bunkering industry, deploying market deregulation to raise service quality and expand consumption. This policy is assessed in terms of its quantitative and qualitative consequences, and as an example of the outcomes of deregulation. Early price reductions achieved substantial market growth, but low-cost bunkering has more recently been significant as a counterbalance to new quality problems generated by unsupervized competition. These have necessitated substantial policy responses in the 1990s which are only now overcoming the setbacks caused by the unregulated market.     

Regulation,trust and contractual incentives around transport contracts – Is there anything bus operators can learn from public air service contracts?

This paper compares recent experiences in contract negotiation and subsequent commitment in public air services with the bus industry. The heart of the paper is a survey of European and Australian regional airlines, which we mirror with revealed experiences of bus operators. We aim to identify a number of elements in the contracting regimes that have exposed ambiguity and significant gaps in what the principal (e.g., transport department) expected, and what the agent (airline or bus operator) believed they were obliged to deliver. Ultimately airline and bus services are similar in that public authorities procure transport services that are desirable for the society but would be unprofitable without government involvement. In both sectors (theoretically fairly similar) public transport contracts are used, and those usually include obligations and performance measurements. In terms of similarities, one of the surveyed contract details that had a perceived high clarity in both industries was “payment procedures” and amongst those with rather poor clarity was also in both industries “incentives to improve performance and grow patronage”. We also show differences between regional air services and bus operations with regard to performance measurement and pre-specified obligations. Because of the strong safety culture around air services we find that regulation and trusting partnerships are even more important to aviation than to the bus sector. Because of the high level of trust but also because of simpler and more complete contracts in aviation, there is much less (re-)negotiation going on compared to the bus operations.     

Workshop 2: Bus rapid transit as part of enhanced service provision

Workshop 2 focused on the role of BRT as part of enhanced public transport service provision. Discussion topics included case studies around the world; improved performance and operations; and better contracts, institutional settings and enhanced policies. BRT was identified as a vital component of modern public transport systems due to its ability to provide high performance and rapid implementation at a lower cost than comparable rail transit. The participants concluded that on top of improving trunk transit corridors, it is important to look to the first and last kilometers and the connections among transport modes. In addition, it is important to consider all dimensions, not just the technical issues. The workshop identified the desirable ingredients for BRT success, created a table of bus based options for different applications and a list of research topics.     

Outsourcing rural school transportation: A Brazilian handbook for practice at the municipal level

In Brazil, Rural School Transportation (RST) falls under the responsibility of state and municipal governments. However, there are no clear rules to guide the provision of this essential service. RST in Brazil is characterised by inefficient contracting practices, poor service control by school administration, and lack of legal instruments to penalise poor services, thus allowing operators to run services according to their own commercial criteria. In addition, payment is low, leading to the employment of old vehicles, lack of safety equipment, and non-convenient routes, among other aspects. As a result, school children provided with this service are subject to long travel time over large distances, and irregular and late services, coupled with poorly maintained roads. When children finally arrive at school they are tired, which often negatively affects their school performance and attendance, contributing to early school drop-out. In order to contribute to the improvement of school transportation quality, state and municipal authorities must develop the required organisational, planning, and regulatory skills. Accordingly, this article addresses the elements and the structure of a handbook that is being elaborated for local governments.     

The competitiveness of short sea shipping in multimodal logistics supply chains: service attributes

Much has been written and spoken about short sea shipping within the European Union (EU) as a means of shifting goods from road to sea and of achieving a sustainable economic development. However, this shift is far from being a general reality, despite the few individual, and success stories that have taken place and the EUROSTAT data suggest that the overall effort has contributed very little towards attaining this desired shift. In the light of this, research was conducted to discover how to put short sea shipping on a more competitive level within European multimodal logistics supply chains. This paper aims at identifying service attributes of short sea shipping operations within multimodal transport chains by means of a questionnaire and, for that, examines the short sea shipping environment and contemporary European logistics trends. The analysis is based on empirical research, involving logistics operators, shippers' associations and intermodal rail operators, and allows an evaluation (based on statistical techniques) of the short sea shipping industry and its competitors. It extends previous work by considering these short sea shipping attributes within a multimodal transport context.     

Port economic impact model (PIM) and its planning applications

The provision of adequate port capacity has been essential for Korean economic development, as its foreign trade has been predominantly seaborne. In this respect, efforts have been directed to the development of seaports in order to provide a sufficient level of service for greater national control of foreign trade. The port planning and development process in Korea, however, has not been a total success. This is underlined by the fact that the seaport industry in Korea has not coped with the increased demand, and total seaport capacity has lagged behind need. This paper examines the validity of the port input-output model (PIM) as predictive tool to future planning. Further the value of the PIM as a forecasting tool to the port transport industry in Korea is identified.     

Monetary values of transport service attributes: land versus maritime ro-ro transport. An application using adaptive stated preferences

The objective of this work is that of illustrating a methodology to derive, in terms of trade-offs, the relative values of transport service attributes for logistics operators. In particular, the analysis yields insights on the preferences for time-savings, frequency and reliability of the transport service in terms of price, of a sample of freight forwarders located in the South of Italy. The data is gathered using an Adaptive Stated Preference application and the estimates are obtained through a Tobit ML estimator on both company specific data and pooled data. The results show that frequency is the most highly rated characteristic of the service together with reliability. The value of time is significantly lower in both cases. The outcome is consistent across estimations and, substantially in line with the outcome of previous studies carried out on operators active at different levels of the transport-logistic chain. Until now, in fact, studies have been carried out uniquely on carriers or producers. The selection of freight forwarders allows to shed light on a segment of the market that accounts for more than half of the transport-related decisions. Furthermore, the present study focuses on a comparison between all land transport and maritime ro-ro alternatives, in line with the growing interest on the integration among transport modes. The output signals both the absence of any a priori preclusion for ro-ro maritime services and the extremely important role that frequency of service assumes for the development and the establishment of maritime services as realistic alternatives to all land transport.     

Investigating links between transport disadvantage, social exclusion and well-being in Melbourne - Updated results

This paper updates results of an international study aimed at quantifying the links between transport disadvantage (TD), social exclusion (SE) and well-being (WB) in Melbourne, Australia. The study extends knowledge associated with SE and transport by quantify social and behavioural implications of lack of public and private transport and the nature of the social WB benefits associated with improving services.Study aims and methodology are outlined. Recent findings covered relate to car ownership on the urban fringe, patterns of transport disadvantage, the analysis of time poverty related to transport disadvantage, measuring the economic value of additional mobility and use of a Structural Equation Model (SEM) to relate WB and SE to TD and a series of explanatory factors.Overall results suggest that those without a car on the urban fringe adjust well with their circumstances by living close to activity centres. They demonstrate sustainable choices, trading off budgets and home location to balance mobility and accessibility. Poorer households with high car ownership value mobility and cheaper more remote fringe dwellings but demonstrate numerous strategies to reduce high car costs which are acknowledged as a significant burden. Analysis identifies 4 key types of transport disadvantage including a ‘vulnerable/impaired’ group which should be of much greater concern for targeted policy than others due to poor scoring on SE and WB scales. The economic value of new mobility is also explored with results suggesting $AUD 20 per average new trip which is four times larger than conventional values for generated travel.Analysis has also suggested that transport disadvantage can relate to socially advantaged as well as socially disadvantaged groups through time poverty. This was found to be an important mitigating factor when relating TD to WB. A statistically reliable structural equation model is developed suggesting the SE-WB link is strong (−.87) with a modest link between TD-SE (.27).Areas for future research in the project are also summarised.     

Corporate social responsibility and service quality provision in shipping firms: financial synergies or trade-offs?

This study examines whether the implementation of corporate social responsibility (CSR) and provision of service quality (SQ) to satisfy shippers result in financial synergies or trade-offs for shipping firms. To address this question, a contingency framework was introduced in this study. The literature was first reviewed for hypotheses development, followed by interviews with eight industry practitioners. Subsequently, an internet survey was administered to 156 shipping firms in Singapore, and the obtained data were analysed using path model analysis and simple slope analysis. The results indicate that CSR complements SQ and provides additional but modest financial contribution to shipping firms via customer satisfaction. In addition, synergistic interactions between SQ and CSR were found. Although there are financial synergies from the implementation of CSR and provision of SQ, the analysis reveals that CSR should only be engaged when a shipping firm is fairly competent at delivering quality shipping services. This paper contributes to both theory and practice by framing business decisions on implementing CSR under contingency theory and offering a strategic approach to managing SQ as well as CSR of shipping firms.     

Port Specialization and Efficiency—The Case of Ghana

The US Shipping Act of 1984 permits ocean liner vessel operators and shippers to make use of service contracts to further their mutual interests. However, starting from the very day this novel provision was incorporated into the Act, it has remained as a bone of contention between shippers and carriers serving US trade routes. This article highlights the major issues that have sprouted subsequent to the introduction of service contracts in ocean liner shipping. The author concludes with some logical suggestions to fine-tune the Act, without interfering with its legislative framework.     

Service contracts: a case study of unfulfilled promises

The US Shipping Act of 1984 permits ocean liner vessel operators and shippers to make use of service contracts to further their mutual interests. However, starting from the very day this novel provision was incorporated into the Act, it has remained as a bone of contention between shippers and carriers serving US trade routes. This article highlights the major issues that have sprouted subsequent to the introduction of service contracts in ocean liner shipping. The author concludes with some logical suggestions to fine-tune the Act, without interfering with its legislative framework.     

The lurch towards formalisation: Lessons from the implementation of BRT in Johannesburg,South Africa

The City of Johannesburg, South Africa, implemented the first phase of its Bus Rapid Transit (BRT) system named Rea Vaya between 2009 and 2011. The system design and organisational arrangements drew heavily on precedents from South America, especially insofar as BRT is used as an instrument for securing the transformation and formalisation of a fragmented and problematic informal public transport industry. Despite the inevitable transition problems, the formalisation scheme appears to be generally successful – an outcome that surprised many analysts as it follows a long history of mistrust, resistance, and unsuccessful interventions between government and the minibus taxi industry. The paper offers an analysis of the reasons for the successful transformation of participating taxi operators, by using a life-cycle analogy. We argue that the minibus-taxi industry in South Africa has reached a state of stasis and maturity, with limited opportunities for further growth in its present form. BRT, as it is implemented locally, offers opportunities for re-invention – for moving onto new a potential growth trajectory – by overcoming the binding constraints of informality and by opening up new markets to operators. The life-cycle analysis also offers some insights into critical success factors that, if not met in the long run, could jeopardise the longevity and scalability of the formalisation project. The paper concludes with insights regarding the planning and management of BRT systems to maximise their potential for leveraging the formalisation of informal operators, both in South Africa and in other developing countries.     

Examining the influence of firm performance on business risk-taking and the mediation effect of scale of operations in the container terminal industry

Container shipping and its related service sectors help accelerate globalization of the world economy. This industry has been experiencing rapid growth, prompting container terminal operators to increase their handling capacity in response. Providing container terminal services requires substantial capital investment in physical assets such as cargo handling facilities and information systems. On the other hand, operating container terminals is a long-term investment that typically spans several business cycles. Hence prudent asset management using appropriate tools is critical for container terminal operators to sustain their businesses. Generally, due to risk-adverseness, investors are unwilling to take more risk in their investment unless they can reap a higher return. Contrary to this argument, this study finds no direct influence of better firm performance as a proxy of higher return on business risk-taking by container terminal operators. Instead, scale of operations is positively associated with business risk-taking, suggesting that container terminal operators with a larger scale of operations are willing to take more business risk.     

How much can public private partnership really do for urban transport in developing countries?

A few cities in some of the larger developing countries in Latin America and Asia have made increasing use of multi-year concessions or franchises, competitively awarded to private companies, for construction and operation of urban transport infrastructure and for provision of public transport services. In view of the strong prospective growth of developing-country cities with large transport needs, and the rise in the emerging economies of potential new sources of private capital, it is important to see how effective PPP has so far been in this area. The experience is analyzed principally by thorough comparative review of what has actually happened for some of the main users to date: Bogotá, Santiago, São Paulo, Seoul, and several cities in both China and India. Despite delays and mistakes that have been made in development of most of the projects, the overall results, already delivered and in prospect, are very positive and urban public transport is benefiting substantially, with significant side effects on poorer people's access to work and to services, air pollution levels and road accident rates. The widest and most important advantage of the PPP arrangements, as compared with more conventional short-term contracting, is found to be the innovations, technical and managerial, developed, and, in particular, the mutual capacity building of the countries' private and public sectors and their more effective interaction. The experience in the six countries covered suggests that other developing-country cities may be best assisted to develop sound urban transport PPPs more rapidly through provision of help on chosen items among 7 elements that have proved particularly crucial but sometimes weak in the projects reviewed: Civic consultation systems, Land-use/Transport strategic planning, Land/property market management, Monitoring systems, Progressive policies, Economic regulation, and Public institutional framework for PPPs.     

The impact of transitional changes on maritime transport in Central and Eastern Europe

At the end of the eighties, fundamental changes took place in Central and Eastern European shipping. Former socialist shipping corporations began offering services under market conditions and left behind the rigid leeway of central planning and regulation. Extensive adjustments in ownership and legislation have transpired, and services and markets, as well as the operations within, have changed significantly. The restructuring of maritime transport is being carried out within the framework of forms that derive from changes in the economic macrosystems as a whole. Careful analysis of the process of corporate transition identifies unique patterns of diminishing, permanent, and incipient components utilized during the reorientation of fleet strategy, market and service changes, and company restructuring. All transition arrangements have been greatly influenced by the integration of Central Eastern European countries with the European Union.     

The impact of transitional changes on maritime transport in Central and Eastern Europe

At the end of the eighties, fundamental changes took place in Central and Eastern European shipping. Former socialist shipping corporations began offering services under market conditions and left behind the rigid leeway of central planning and regulation. Extensive adjustments in ownership and legislation have transpired, and services and markets, as well as the operations within, have changed significantly. The restructuring of maritime transport is being carried out within the framework of forms that derive from changes in the economic macrosystems as a whole. Careful analysis of the process of corporate transition identifies unique patterns of diminishing, permanent, and incipient components utilized during the reorientation of fleet strategy, market and service changes, and company restructuring. All transition arrangements have been greatly influenced by the integration of Central Eastern European countries with the European Union.