Thursday, August 19, 2010

Permanent transport tariff regulator mooted

Just what does it mean for public transport users when there is a transport regulator that oversee tariffs and infrastructure development across all public transport modes? Could it mean that passengers will have more say before Putco increases its prices unlike at the moment, where they increase their prices without consulting their customers? Or will this mean that the regulator will force public transport operators to reduce their services as a result of the regulator denying them to increase their prices? Whatever will happen, the DoT, which is considering to introduce this regulator need to be careful that the regulator does not make it difficult for operators to conduct business.

We also have to ask ourselves if it will be wise to regulate all public transport modes, especially considering that road based transport is more competitive. It would be wise, for instance to regulate those public transport service providers that are monopolistic in nature (e.g. ACSA, PRASA (excluding its road based transport), Gautrain,etc) and ensure that there is more enforcement of "rules of the game" in road based transport. Let me know If you think otherwise.

Though I am not sure about her reasoning, Ms Monhla Hlahla (yes, the MD whose Monopolistic company offered R400 000 to World Cup soccer fans after the King Shaka Airport fiasco) cautioned against grouping all modes of transport together as "there was so much to be done to public transport in SA, we as Acsa would not like to be compromised by other transport sectors which are not yet at the same level of development as we are", she may be having a point and the department need to be careful before making any decision.

1 comment:

Anonymous said...

Cross check that the regulator is not only to regulate subsidised public transport where the government pays the shortfall, hence there will be no complaint from the operator; besides returning service that he is paid for