Market inquiry into public transport sector

A FULL-scale investigation into the chaotic public transport sector will be undertaken by the Competition Commission from next month to address, among a range of issues, price-setting mechanisms and price regulation across the entire value chain.

The announcement by the Competition Commission comes as the wheels of buses countrywide started rolling following a nearly month-long strike by drivers for higher wages.

The five unions – representing thousands of bus drivers – and employers finally reached a compromise agreement on Monday night of a 9% wage hike for this year and 8% from April next year.

Bus drivers were also promised backdated pay from April 17, the day the strike started.

The commission said its market inquiry would not only zone in on the bus industry, but also focus on minibus and metered taxis, appbased taxi services, Metrorail and Gautrain.

The commission’s spokesman, Sipho Ngwema, urged all market participants, the public and any other interested groups to participate during the countrywide public hearings which are set to start in Gauteng next month.

The investigation followed numerous complaints relating to public transport, he said.

“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 pricesetting mechanisms, price regulation, transport planning, allocation of subsidies, route allocation and licensing requirements.”

Public hearings are expected to be held in Port Elizabeth from August 13.