Analysis of the economic and social parameters of the Three-Wheeler Taxi service in Sri Lanka

Sri Lanka has an extensive Three-Wheeler Taxi service comprised of around 300,000 vehicles. These vehicles, which first made an entry to Sri Lanka’s roads in the early 1980s, account for around 15% of the active motor vehicle fleet at present. Three-Wheelers Taxis also account for around 6% of the passenger kilometres. These vehicles are mostly individually operated with some owned by the operator and others hired on a monthly or daily basis. The industry is unregulated with vehicle registration and driving licenses being the only instruments of regulation. Fares are unregulated. However, most operators belong to associations which are loose collections of operators found in a given locality. These associations impose a degree of self regulation with respect to fares. They also tend to demonstrate oligapolistic behaviour.The paper is based on a survey of 200 operators and 100 passengers from a Divisional Secretariat area in Colombo District. The survey covered a number of details pertaining to ownership, management and fare structures, as well as opinions on the service attributes by users. The survey also covered perceptions of operators to determine the social, economic and transport implications of the services provided. Details were also obtained on the profiles of the operators and their expectations.The paper provides the results of the analysis of this data and draws a number of conclusions on the economics of the industry as well as the social aspects associated with it. It also discusses the characteristics of the users of these three wheelers as well as their typical use. The analysis also investigates complementarily of service provision between three wheelers as an access mode to buses and railways. This analysis has been used to develop an understanding of the manner in which the industry has grown over the last two decades and how it is being operated today. It also identifies areas wherein the industry has become inefficient and assesses the degree of over pricing that exists due to this. The data also helps to determine the relationship between unemployment and provision of self-employed transport services.The paper concludes with a synopsis of the profile of the industry and its role within the wider transport sector and with respect to ownership. It also discusses the positive and negative impacts of the lack of regulation on the industry.     

Overcoming Governance and Institutional Barriers to Integrated Coastal Zone,Marine Protected Area,and Tourism Management in Sri Lanka

One of the major barriers to addressing complex social–ecological issues through integrated coastal management (ICM) is a lack of intergovernmental coordination and cooperation (horizontal and vertical fragmentation). This article describes an effort to overcome the barriers to ICM in Sri Lanka by fostering intergovernmental collaboration and initiating adaptive governance to restore one town, Hikkaduwa, and its associated marine protected area (MPA) and coastal zone habitats. Administrators from 12 national and local governmental agencies that are responsible for aspects of coastal management in the town of Hikkaduwa participated in a series of formal and informal workshops and a week-long tour of ICM projects in the Philippines. Outcomes demonstrate that these informal and formal meetings, workshops, and travel experiences fostered trust, social capital, and attitudinal organizational commitment (AOC). The experiences motivated members to overcome vertical and horizontal governance fragmentation through the formation of an independent intergovernmental committee for the restoration of Hikkaduwa into a sustainable and resilient community. ICM activities undertaken by the newly formed organization suggest that internal leadership capacity, effective local–national partnerships, explicitly linked ecological–economic projects, and long-term commitment are necessary conditions for success. Overall, attainment of sustainability and resilience through successful ICM should be thought of as a journey and not a destination.     

Commercial public bus transport services in Germany: How a market in motion struggles with its regulatory framework

After decades of stagnation, the competitive market for commercial public bus transport services in Germany is beginning to move. Nevertheless, compared to the total market volume, the number of cases where competition is observable remains small. An empirical analysis of competition in the commercial services market as compared to competition in the non-commercial services market confirms that entry barriers do exist. These barriers clearly impede competitive developments in this embryonic market, which relies on the market initiatives of operators to develop. The paper identifies a key entry barrier in the institutional framework: for potential market entrants, the overall uncertainty regarding competitive procedures for commercial services is significantly higher than usual in tendering procedures. This high uncertainty poses the main disadvantage for newcomers as compared to incumbents.     

Comparisons of urban transport sustainability: Lessons from West and North Africa

The diagnosis for urban transport sustainability depends on the context of different regions worldwide. We focus in this paper on West and North Africa which reveal similarities but also structural differences which are explored further. The importance of paratransit in its various forms is strongly observed in sub-Saharan Africa and to a lesser extent in North Africa. The attempts to regulate and organise this sector have been difficult; one interesting experience in Dakar occurred during a programme of fleet renewal. In parallel it is observed that there are positive but insufficient experiences of public transport authorities in some cities (Dakar, Abidjan) and similar projects postponed in other cities because of the institutional problems. One also observes the constant difficulties of designing sustainable schemes for bus companies. An answer to this crisis has been found in North Africa, through investment in new mass transport systems. However, mass transport projects in West Africa are very weak in comparison. The gap between public transport costs and income levels there remains a major obstacle to sustainable mobility exacerbated by the poverty of a significant part of the urban population in West Africa. Two other critical factors are also identified affecting sustainable mobility requirements, namely, the urban sprawl and increasing energy costs. Finally the conclusion recommends the use of research and expertise networks in order to help the design and the implementation of suited solutions.     

The 2008 New Zealand public transport management act: Rationale, key provisions, and parallels with the United Kingdom

In January 2009, following a lengthy industry review and consultation process, the New Zealand Public Transport Management Act (PTMA) came into force. The Act allows Regional Transport Authorities, as the primary procurers of public transport services, to place either a control or a contracting requirement upon services that are registered as commercial requiring no subsidy. The imposition of either the control or the contracting requirement is designed to facilitate greater system integration, improve service continuity and enhance services to the customer, andallow the Authority to invest in key strategic projects, such as integrated fares and ticketing, so as to grow patronage.The PTMA’s other objective is to ensure improved value for public subsidies. Recent years have seen significant subsidy inflation for seemingly little commensurate benefits. The Act will allow the Regional Transport Authority to achieve greater value for money through improved farebox, a shift to longer, larger contracts to increase competition in the market, a more appropriate allocation of risk, and the removal of the ability of operators to ‘game’ the current system by using strategically placed commercial services as barriers to competition.Similar concerns have also stimulated new legislation in the UK and this paper illustrates the parallels in the environment and proposed response.     

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.     

Four decades of changing transport policy in Santiago,Chile

During the last forty years, Santiago has experienced a series of drastic changes in public transport policies. These changes have ranged widely, from total deregulation to processes that concentrated the management of public transport within the hands of the public sector.     

Impact of regulation on the performances of long-distance transport services: A comparison of the different approaches in Sweden and Norway

Despite the many socio-economic similarities between Sweden and Norway, differences in jurisdiction, organisation, cooperation, and financing of long-distance passenger train and coach services have led to the development of four distinctively different ways of serving the markets. This paper describes how the train and coach markets have developed in the two countries, with emphasis on regulatory and industrial structure and a couple of performance variables.Looking at passenger rail, both countries separated infrastructure from operation over a decade ago. However, while Norwegian rail is characterised by an almost monopoly supplier, rail services in Sweden are partly decentralised to the responsibility of county authorities and are widely subjected to competitive tendering. The rest of the network is about to be opened up for on-the-track competition. Swedish Rail (SJ) has spent the last decades consolidating its core business (passenger rail) and sold out its other businesses. In contrast, the Norwegian state rail (NSB) has expanded its business to become a major bus operator and property owner, with extensions also into the Swedish market.The coach industry was more recently deregulated in both countries. The Swedish coach market is dominated by privately owned companies operating services to and from Stockholm. In Norway, state-owned NSB is a major coach operator on medium distance routes, and is also the largest partner of Nor-Way Bussekspress which totally dominates long-distance coach services. Further, the Norwegian coach market is characterised by cross-ownership and cooperation which has enabled an extensive route network which covers most of Norway.We find distinct differences in achievements in the two modes and in the two countries. Swedish rail services have succeeded in winning market shares and in renewing and developing both infrastructure and service levels to a greater extent than the Norwegian model. On the other hand, the Norwegian coach market seems to be more developed and efficient compared to its Swedish counterpart.The paper concludes with a discussion on the possible links between the different approaches and the performance observed, with the aim to stimulate further and more detailed research on some important issues.     

Engaging the paratransit sector in Cape Town on public transport reform: Progress,process and risks

The South African government in 2006 initiated an urban public transport reform programme reliant on the introduction of new bus rapid transit (BRT) systems. Affected paratransit operators can opt to be incorporated in these systems by forming new operating companies, but must withdraw their existing services from proposed routes. Cape Town's first phase of BRT operations came online in 2011, and operator engagement has focussed on this phase. The attitudes within this city's paratransit sector in relation to future phases, and to the broader reform policy, remain largely untested. In view of this sector's past resistance to government-led proposals, and the current phase avoiding areas with the highest concentrations of operators, the current engagement process's outcomes may not be adequate indicators of future prospects.     

Comparing operator and users costs of light rail, heavy rail and bus rapid transit over a radial public transport network

A model to compare three alternative forms of public transport - light rail, heavy rail and bus rapid transit - is developed for an urban network with radial lines emanating from the borders to the city centre. The theoretical framework assumes an operation aimed at minimising the total cost associated with public transport service provision, which encompasses both operator and users costs. The decision variables are the number of lines (network density) and the frequency per period for each mode. This approach has no prejudices a priori in respect of whether a specified delivery scenario is aligned with existing modal reputation. Rather, we establish the conditions under which a specific transit mode should be preferred to another in terms of the operator (supply) and user (demand) side offerings. The model is applied using data from Australian cities, suggesting that in most of the scenarios analysed a high standard bus service is the most cost-effective mode, because it provides lower operator costs (infrastructure, rolling stock and operating cost), access time costs (due to a larger number of lines) and waiting time cost (due to larger frequencies of operation). A rail mode, such as light rail or heavy rail, may have a lower total cost only if it is able to run faster than bus rapid transit, and the difference in speed is enough to outweigh the bus advantage on operator cost and access and waiting times.     

Market role and regulation of extensive urban minibus services as large bus service capacity is restored - Case studies from Ghana, Georgia and Kazakhstan

In some cities, the degeneration and collapse of formal bus services has allowed large-scale minibus operations to become established but, over time, city authorities and municipal bus operators regain at least part of their operating capacity and seek to regain their market share. This paper examines and compares three case studies: Accra, Tbilisi, and cities of Kazakhstan. It examines the development of the urban minibus services market as conventional bus services went into decline, the gradual re-emergence of large buses, how the authorities have viewed the minibuses as circumstances change, and market and regulatory strategies followed by city authorities.     

Evaluation of a bus passenger information system from the users’ point of view in the city of Thessaloniki, Greece

This paper presents an evaluation, from the users’ point of view, of an advanced Bus Passenger Real Time Information System, installed at the city of Thessaloniki, Greece. In addition to the methodological approach and the findings presented, the paper explores the greater framework of evaluation procedures in which these analyses should be embedded. In total, 300 questionnaires were returned; the survey aimed to define the basic components of users’ acceptance of the new system as well as socioeconomic issues related with the estimation of the payback period of the project. The survey findings are combined with several research results from recent resembled surveys conducted in the city in previous years.     

Workshop 3B: Governance,ownership and competition issues in deregulated (free market) public transport: Lessons that can be learnt from developed and developing economies

The past emphasis in this conference series has been on the best ways to deregulate regulated public transport markets. This workshop reverses this process by examining the best ways to regulate deregulated public transport markets. A hierarchy of regulatory needs is identified and three hybrid models examined, based loosely on experience from Great Britain, New Zealand and Sweden. It is argued that deregulated public transport markets are a global phenomenon but regulatory measures should reflect local requirements. The resultant process of glocalisation might result in regulatory measures that focus on the rules of law and their enforcement in emerging public transport markets (such as urban transport in Sub Saharan Africa and for the soon to be competitive inter urban market in Germany) but that focus on guidance for network integration and incentivisation for welfare maximisation in more mature public transport markets (as in Great Britain, New Zealand and Sweden).     

Analysis of thirty years evolution of urban growth,transport demand and supply,energy consumption,greenhouse and pollutants emissions in Greater Cairo

The objective of the paper is to analyze evolution of urbanization, transport demand and supply in Greater Cairo (GC) over the last three decades of the 20th century. This is in addition to investigating the impact of city growth on energy consumption and emissions from transport. It utilizes results of 1971, 1978, 1987, 1998 and 2001 travel demand surveys, undertaken during the corresponding GC transport studies; each was published a year or two later. No further transport studies have been carried out in GC over the past decade and in view of the current political situation, it is not envisaged that similar studies will be undertaken in the near future. The analysis includes the evolution of daily trips, trip purpose share, modal share and number of cars. More recent trends for 2006/2007 vehicle registration by type and size are given. The evolution of transport supply covers projects until early 2012. In parallel estimates of the evolution of energy consumption and cost, emissions of greenhouse gases (CO₂) and pollutants (CO, HC and NO_x) are given for 1971/2001. The adopted estimation methodology is summarized. Comparative analysis of relevant evolution indexes and trends of growth between 1971 and 2001, taking the former as base year, is given. Land use and transport policies and projects that in some cases helped, directly or indirectly, to reduce traffic congestion, or at least prevented an increase, are addressed, commenting on their outcomes. Thus, transferable experience are useful to sister cities benefiting from successes and avoiding drawbacks. The evolution of the impact of GC metro on energy consumption and cost, and GHG emissions is given for 1987/2001, assuming the scenario “metro did not exist”. More recent impact analysis is given for 2007/2008, as the data allowed estimating traffic volumes that would have been added to the congested metro corridors under the above scenario; and the related fuel consumption and cost and GHGs. The paper ends with conclusions on GC evolution, learned lessons and suggests repeating similar work in other mega cities of the developing countries. Further research is emphasized, e.g., modeling the relationship between land use, transport, energy and emissions; modeling emission factors by vehicle type; and studying fuel-subsidy-reduction scenarios and their socio-economic effects.     

Overview of public transport policy developments in South Africa

In South Africa, a restructuring of the public transport system is currently under way. In the bus industry the tender for contract system is being implemented, the commuter rail sector is being recapitalised and the minibus taxi industry recapitalization programme is in its early stages. Progress with policy implementation across the modes of transport, modal split trends and issues that hamper the full development of the public transport industry are discussed in this paper. Medium to long term policy and strategy initiatives that will further inform the development of the industry are also highlighted in this chapter.     

Competition in Brazilian bus and coach services - The results of recent competitive tendering processes

This paper analyses the terms and the results of a sample of some recent Brazilian bidding processes for the concession of public passenger transport services: namely, urban and metropolitan bus or regional coach services. The analysis is based on selected issues relating to competitiveness and upon the legal framework that applies in this sector. It was concluded that, given the lack of bidding processes for concessions in the bus and coach sector in Brazil, the fact that some bidding processes have been carried out should be considered a sign of progress. However, these auctions have not necessarily prioritised competitiveness, since many barriers to entry into the systems were imposed by the bidding terms. Future competitive tendering processes should seek to abide by stricter principles of competitiveness, if they wish to avoid the entire effort expended on conducting such processes serving only to mask nothing more than formal obedience to the law and to discredit the bidding process in the eyes of Brazilian citizens.     

Workshop 3A: Governance,contracting, ownership and competition issues in public transport: Looking up not down

Workshop 3A focussed on matters of institutional design that seem likely to improve public transport outcomes. It started by defining high level outcome goals, as measures of ultimate public transport success, and then identified the major societal issues that public transport systems can help to resolve. These issues were separately defined for Southern African and western settings. The importance of taking an integrated approach to transport, particularly land use/transport integration, was seen as fundamental to goal achievement. Workshop papers provided many and varied examples of this importance, ranging from PPPs for major public transport projects to system design issues and contracting out of services. The Workshop included detailed discussion on paratransit development in Southern Africa, where relationship management is proving to be critical, in-line with much previous Thredbo discussion about the important role of trusting partnerships. Parallels and contrasts were drawn with paratransit in western settings. Competition in passenger rail was also a focus, with some questioning of the benefits of franchising. Discussion concluded by proposing recommendations for policy and research and suggesting agenda items for future Thredbo Conferences.     

Economic appraisal of universal design in transport: Experiences from Norway

Economic assessment of universally designed transport projects has not been studied in depth in the transport planning literature. Universal Design (UD) refers to the design of transport systems in a way that they are accessible to all users, irrespective of the users’ abilities. This definition of UD has not yet gained roots in the transport economic literature. The conventional thinking is that UD is for the few, i.e., the impaired, and given that they are few in numbers, UD projects will generally be unprofitable from a socioeconomic point of view because benefits will be low while investment costs will be too high. The objective of this paper is to prove the opposite: UD projects benefit all users of the facility, whether impaired or not, and the additional costs of implementing them are generally low; hence, their net present values are high and positive. We build on collaborative work between the Norwegian Public Roads Administration (NPRA) and the Institute of Transport Economics (TOI) aimed at creating guidelines for assessing the economic merits of UD projects. Therefore, in this paper, we: (1) define how UD is to be understood in the context of road and public transport; (2) describe the types of benefits and costs that accrue to users if UD projects are implemented; (3) address how the benefits and cost can be valued in monetary terms; and (4) using three different types of projects, demonstrate that UD projects are surprisingly profitable from a socioeconomic point of view. Finally, we address the implications of our findings and explain why governments need to be concerned with UD of transport systems.     

An inverse model for calculation of global volume transport from wind and hydrographic data

The P-vector inverse method has been successfully used to invert the absolute velocity from hydrographic data for the extra-equatorial hemispheres, but not for the equatorial region since it is based on the geostrophic balance. A smooth interpolation scheme across the equator is developed in this study to bring together the two already known solutions (P-vectors) for the extra-equatorial hemispheres. This model contains four major components: (a) the P-vector inverse model to obtain the solutions for the two extra-equatorial hemispheres, (b) the objective method to determine the Ψ-values at individual islands, (c) the Poisson equation-solver to obtain the Π-values over the equatorial region from the volume transport vorticity equation, and (d) the Poisson equation-solver to obtain the Ψ and depth-integrated velocity field (U, V) over the globe from the Poisson Ψ-equation. The Poisson equation-solver is similar to the box model developed by Wunsch. Thus, this method combines the strength from both box and P-vector models. The calculated depth-integrated velocity and Ψ-field agree well with earlier studies.