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Enhancing Road Passenger Sector: Regulatory & Ownership Shift in Barbados and Sri Lanka

Explore the regulatory & ownership changes in the road passenger sector of Barbados and Sri Lanka, drawing parallels with Britain and international comparisons. Discover outcomes, challenges, and observations driving the need for transformation.

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Enhancing Road Passenger Sector: Regulatory & Ownership Shift in Barbados and Sri Lanka

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  1. The need for regulatory and ownership change in the road passenger sector – the cases of Barbados and Sri Lanka David Greenwood Greystones International Transport Consultancy, Cyprus Charles Roberts Liverpool 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 Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  3. Britain: pre-1986 issues • Decline of market for bus services • Rising industry subsidy • Rising costs of service provision, with resultant pressure on fares • Stringent regulation of services and fares • Lack of incentive on operators to innovate Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  4. 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 Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  5. 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 Britain: outcomes With very few exceptions, all bus companies are in the private sector, with the majority being owned by a small number of major groups Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  6. 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 Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  7. Barbados Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  8. Barbados Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  9. Barbados: outcomes and observations • Overstaffing • Bus passengers receive a poor level of service • High subsidy • High level of control by trades unions Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  10. Sri Lanka • Large state-owned enterprise: • 10,000 buses • 60,000 employees • Nearly 100 bus garages • Various forms of semi-public ownership tried in the period 1977-2002 • Privatisation plan abandoned due to political change Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  11. Sri Lanka Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  12. Sri Lanka Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  13. 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 Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  14. 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 Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  15. Barbados v Sri Lanka: differences • Barbados economy more developed • International support declined for different reasons Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  16. International comparisons • 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 Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  17. International comparisons • Political involvement: • Policy v executive decision making • Managerial competence and cross-cultural issues: • Training and qualifications • Overseas influences Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

  18. Conclusions • British experiences could be applied to markets in developing countries • Efficiencies primarily accrue through effective management • Controls important on ‘unfair’ competition • Overseas transfer of skills can be a useful expedient Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts

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