Public Passenger Transport Market Inquiry - Call For Submissions, Public Participation

From June to August the Commission will hold public hearings for the Public Passenger Transport Market Inquiry (Market Inquiry) and is calling on market participants, the public and any other interested groups to participate.

In June last year the Commission launched the market inquiry into the land based public passenger transport sector following numerous complaints relating to public transport in the country. The market inquiry seeks to address issues of efficiencies in the provision of public transport, to understand the market dynamics across the entire value chain, including price setting mechanisms, price regulation, transport planning, allocation of subsidies, route allocation and licensing requirements, among other things.

A market inquiry is a general investigation into the state, nature and form of competition in a market, rather than a narrow investigation of specific conduct by any particular firm. Further, this market inquiry seeks to address concerns that there may be features that prevent, distort or restrict competition in a sector that caters for the transport needs of between 70%-80% of the population.

The Commission has published guidelines that contain the rules of participation that will apply to all stakeholders who wish to participate in the proceedings of the market inquiry. Participation is envisaged to be through submissions, providing evidence and/or attending public hearings scheduled to take place in all provinces.

The Commission has identified the public passenger transport sector to include road and rail based public passenger transport as relevant to the inquiry. It will, therefore, focus on minibus taxis, 4+1s, metered taxis, app-based taxi services, Metrorail, the Gautrain and buses.

Thus, the terms of reference broadly outline the following themes:

  • Price setting mechanisms: the Inquiry analyses different price setting mechanisms and their impact on competition in the land based public passenger transport industry;
  • Price regulation: the Inquiry examines applicable price regulations and their impact on competition in the land based public passenger transport industry;
  • Route allocation, licensing and entry regulations: the Inquiry assesses the impact of regulations, including route allocation, licensing and entry requirements on intermodal and intramodal competition in the land based public passenger transport industry;
  • Allocation of operational subsidies: the Inquiry assesses the impact of operational subsidies granted to commuter buses, Metrorail and Gautrain on intramodal and intermodal competition in the land based public passenger transport industry;
  • Transport Planning: the Inquiry evaluates the impact of government’s transport plans on dynamism, efficiency and competition in the land based public passenger transport industry; and
  • Transformation: the Inquiry assesses transformation issues, including ownership patterns in the land based public passenger transport industry.

“This is a very significant market inquiry given the enormous challenges our country has with regards to public transport system. It is, therefore, critical that all relevant stakeholders participate fully in the process.

Our aim is to come up with solutions that will eliminate unnecessary blockages and inefficiencies in the public transport. We encourage people to take part in these hearings,” says Competition Commissioner, Tembinkosi Bonakele.

Statement of Issues

The Commission has released a Statement of Issues (see attachment. It is also available on the Commission Website) to help participants focus on issues that have arisen from the inquiry so far. Interested parties are invited to make full submissions on matters raised in the Statement of Issues. The deadline for an application for a slot at the hearings is Friday 18 May 2018.

Public hearings
The schedule for the hearings is attached and other relevant information is available on the Commission’s website. Anyone wishing to participate should complete Form PPT1 and submit written submissions to the Commission by Friday 25 May 2018. The Form PPT1 is also available on the Commission’s website via the following link: www.compcom.co.za/public-passe...

Submission guidelines
All submissions should be directed via email to PPT@compcom.co.za or as follows:

Postal address Physical delivery
Public Passenger Transport Market Inquiry
Private Bag x23
Lynwood Ridge
Pretoria
0040
Public Passenger Transport Market Inquiry
Block 2B, 4th Floor
Trevenna Campus
55 Meintjies Street
Sunnyside, Pretoria

Market Inquiry Statement of Issues

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