Transport syndicates have emerged as a big headache for the government. Every day, there is news of local transport operators in some part of the country preventing new entrants to passenger- and goods-ferrying services. A couple of months ago local operators shut down transportation services in the Far West in their bid to foil the government attempt to end bus syndicates operating in the region. Last Monday, the Prithvi Highway Bus Entrepreneurs Committee, a syndicate of transporters operating along Prithvi Highway, foiled the operation of tourist bus service between Pokhara and Chitwan. With the operation of intercity luxury bus service, tourism entrepreneurs in Pokhara were hoping to lure 20 percent of all tourists visiting Chitwan to come to the lake city. But as usual, an attempt at introducing reform in the transportation sector has run into heavy weather.
The various transportation bodies have been able to impose their diktat by piggybacking on one or the other of the major political parties. It has been seen that such transport bodies often work in collusion to prevent new entrants, instead choosing to divide the rich pickings among themselves. It is the passengers who have to pay exorbitant fares and businessmen who have to fork out considerably heightened freight charges who are bearing the brunt of this state of affairs. Transport entrepreneurs accused of operating syndicates have gripes of their own. They rather blame various restrictions on movement of vehicles, dearth of parking space and other ‘operational level problems’ for added costs of their clients and passengers.
We believe this attempt to paint the picture as a chicken-and-egg problem is misguided. It is true that the government has failed to put in place infrastructure and other facilities that would add to increased mobility of vehicles and better overall services. As the transport entrepreneurs have pointed out, things would be easier without restricted entry provisions, better parking services and clear laws on freight. But that cannot be an excuse to restrict competition in a sclerotic sector that has for years been crying out for reforms. The transport entrepreneurs should understand that in the long run competition will benefit everyone. Entry of more players in the field will not only bring down the fares and lead to better services, they would also help the national economy. For instance, among the industries hit the hardest by the increased freight charges is the cement industry, whose cost is passed on to developers of vital infrastructures like bridges and hospitals as well as the common people looking to build houses of their own.
We urge all the major political actors to work at dismantling the political parties-transport entrepreneurs nexus that is adding unnecessary costs on taxpayers. For no government will be able to solve the problem on its own without the support all major political players. They should realize that adding to the burdens of hard-earning taxpayers instead of working to ease their woes will ultimately backfire on them.
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