Post on 05-Jan-2016
1
2) Road based urban transport
• Paratransit– Publicly available passenger transport
services outside the traditional transport regulatory system
– Example• Large minibus, minibus, “ojeg”,” becak”, etc
2
2.1) Characteristics
• Unscheduled services– “very” demand-responsive services– “filling gap” formal transports
• Smaller sizes and simple
• Need small investment
• “Non-corporate” and “fragmented”
• Else?
3
2.2) Roles or service provided
• Dominant for the poor
• Supplement to formal transport services
• Feeder services and local distributions
• Trunk services (compete with formal)
4
2.3) classifications
• Vehicle types– large bus, minibus, motorcycle, etc.
• Service features– Routes and routes: fixed or flexible
• Passenger capacity
• Market regime– Franchised, licensed, and unregulated
• See table 7.2 (ref 2, chapter 7)
5
2.4) Merits
• Source of employment for the poor
• “of the poor” and “by the poor” services
• Entry point to urban employment
• High & better respond to consumer demand– Little need for government regulation
• “feeder services” to formal transports
6
2.5) Disadvantages
• Image and reputation problems– Very low earning sectors– Exploitation of vehicle owners (unfair
business)– Associated with poverty
7
Why image problems?
• A) Dangerous on-the-road behavior– Associated with crime and violence
• B) Urban congestion & adverse environmental impacts
• C) Undermining of basic network services
8
A) Operating practice
• Exploitation on leased vehicles & undisciplined services with low profitability
• Due to competition pressure to earn living– Excessive capacity– Anti-social and dangerous operation
• Passenger safety, racing, turning short, transferring passengers, blocking, etc.
• Self regulation (long run) to limit entry & organize more disciplined services– Association
9
Is self regulation good?
• Outside public control– Acts not in the interest of consumers
• Fares may increase
• Self-regulation not based on any legal rights of exclusion– Leads to violent means (to enforce the need)
• The need to ensure fair revenue allocation results in suboptimal practice
10
B) Externalities
• Excess supply due to competition (to earn living)– Smaller vehicles (need less capital and operating
costs)– With low labor costs -> no incentive for using larger
vehicles
• The effects of congestion & adverse environmental are external, incentive to use smaller (less expensive) vehicles
• (as a results) level of congestion is severe
11
Externalities: economic distortion
• Excess supply of labor in urban areas• Minimum public sector wage rates• Inefficient operation of informal operators
• No appropriate transport pricing system for using road space
• No incentive for using larger vehicles
• (results in) explosion of informal services in SMALL vehicles
12
C) Undermining network services
• With its capability to provide door-to-door services (dense networks), informal can compete with the traditional larger vehicles
• Disadvantages of those captive to the traditional (larger) vehicles– Higher fares– Less frequent services
13
Things to wonder
Informal provides
better respond to consumer demand
&Employment (economic) activity
Informal brings
congestion &
environmental degradation &
Network problems
PolicyControl the growth of informal