CASE ANALYSIS: METRO MANILA MASS TRANSPORTATION

BACKGROUND
Currently the system of mass transportation in Metro Manila is dominated by privately operated jeepneys and buses (no. of registered buses/ jeepneys) No. of franchises issued No. of bus/ jeepney riders Traffic situation in MM

Q1. Do you agree that leaving mass transportation to the private sector is the source of MMs woes?

YES, to a certain extent:

too many operators, too many buses, too many options presence of colorum buses/ jeepneys buses/ jeepneys are prone to accidents undisciplined/ undesirable behaviours of bus & jeepney drivers Profit motivated/ oriented operators salary of bus drivers is boundary- system

Q1. Do you agree that leaving mass transportation to the private sector is the source of MMs woes?

Other factors to consider in traffic congestion of MM are the:

lax implementation of traffic rules and regulation o violation of designated bus bays o stopping anywhere they want - poor road condition and drainage system - Undisciplined pedestrians/ motorist ( violation on pedestrian lane/ j-walking, speed limits, motorcycle/ bus lanes) - Untrained traffic enforcers - Presence of unauthorized barkers

Q.2. Will a government operated system perform better?

Not necessarily. If government will operate transport system this will cause a monopoly that result in the following:

Q.2. Will a government-operated system perform better?

More expensive on the part of the government: Procurement and maintenance of buses salary/ benefits/ social services of employees hiring of transport experts Government will provide for everything No competition - no choice to riders in terms of buses and fares (NB demand for mobility is inelastic)

Q.2. Will a government-operated system perform better?

Private sector to operate:
More competition: more product/ more options/ choices which will result in product differentiation

RECOMMENDATION
For buses and jeepneys to be operated by private sector but with regulations in terms of: Price determination information symmetry Number of units through strict implementation on franchising (demand based) Enforcement of no colorum policy

RECOMMENDATIONS
Support services should be provided by the Government:
good infrastructure (roads, installation of traffic signages, good drainage system) disciplined & competent traffic enforcers Optimization in the use of road space (vendors) Citizen-centric general welfare of the riding public

RECOMMENDATIONS