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

2. Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts 2 Introduction Britain Barbados Sri Lanka Comparisons: Barbados and Sri Lanka International comparisons Conclusions

3. 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

4. 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

5. Thredbo9 09/2005 Barbados and Sri Lanka Dr Charles Roberts 5 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

6. 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

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

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

9. 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

10. 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

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

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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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