thredbo9 09/2005 barbados and sri lanka dr charles roberts 1 the need for regulatory and ownership...

1Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

The need for regulatory and ownership change in the road

passenger sector – the cases of Barbados and Sri Lanka

David GreenwoodGreystones International Transport Consultancy, Cyprus

Charles RobertsLiverpool John Moores University, UK

Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts 2

Introduction

Britain

Barbados

Sri Lanka

Comparisons: Barbados and Sri Lanka

International comparisons

Conclusions


Britain: pre-1986 issues

Decline of market for bus servicesRising industry subsidyRising costs of service provision, with resultant pressure on faresStringent regulation of services and faresLack of incentive on operators to innovate


Britain: regulatory and ownership changes

Replacement of Road Service Licensing by statutory service registration (outside London)

Subsidy only for services that would otherwise cease in the free market; must have gone through competitive tendering

Sequential privatisation of all sectors of the industry in Britain

Introduction of route tendering in London


Britain: outcomes

Outside London: Continued decline for

bus services, although with some notable exceptions

Subsidy reduction, cost reduction and fares increases in real terms

London: Increase in passenger

numbers Fares increases (though

more recent drop) Subsidy reduction and

cost reduction, though more recent increases

With very few exceptions, all bus companies are in the private sector, with the majority being owned by a small number of major groups


Barbados

Barbados Transport Board: state-owned corporation formed 1955

Approximately 250 buses

Competition from minibuses, route taxis, taxis and hire cars

Fares controlled by government

Poor safety record


Barbados


Barbados: outcomes and observations

Overstaffing

Bus passengers receive a poor level of service

High subsidy

High level of control by trades unions


Sri Lanka

Large state-owned enterprise:10,000 buses60,000 employeesNearly 100 bus garages

Various forms of semi-public ownership tried in the period 1977-2002Privatisation plan abandoned due to political change


Sri Lanka


Sri Lanka: outcomes and observations

Depot facilities grossly inadequate

Overstaffing – “sent to Japan” concept

Poor disciplinary standards

Low level of mileage operated

Inadequate control of revenue


Barbados v Sri Lanka: common issues

Socialist economies

Price and employment controls“… efficiency is an English concept”

Politically-motivated decision making

Lack of management skills

Little concern for passenger or taxpayer


Barbados v Sri Lanka: differences

Barbados economy more developed

International support declined for different reasons



Ownership form:Relative benefits of arms-length public

sector, small enterprise, plc etc

Competition in the market:Impact of competition being able to “cream

off” revenue



Political involvement:Policy v executive decision making

Managerial competence and cross-cultural issues:Training and qualificationsOverseas influences


Conclusions

British experiences could be applied to markets in developing countriesEfficiencies primarily accrue through effective managementControls important on ‘unfair’ competitionOverseas transfer of skills can be a useful expedient

thredbo9 09/2005 barbados and sri lanka dr charles roberts 1 the need for regulatory and ownership...

Documents

sri lanka slide

barbados slide

sri lanka dr charles

barbados v sri lanka

cases of barbados

london slide

political change slide

london subsidy