Presentation on theme: "Perspectives on Regulation in Transport in BiH Presentation at Conference on Regulatory Governance and Network Industries Richard Westler, Secretary General,"— Presentation transcript:
Perspectives on Regulation in Transport in BiH Presentation at Conference on Regulatory Governance and Network Industries Richard Westler, Secretary General, Commission on Public Corporations Holiday Inn, Sarajevo April 19, 2002
The Transport Sector in BiH The Market: Geographic Area: 51,000 sq. kms Population: 4.0 million Served by: Roads:3,800 kms main - 4,800 kms regional Railways:1,031 kms - 776 kms electrified Airports: 4 - Sarajevo, Banja Luka, Mostar, Tuzla Waterways: Sava River, Brcko, Samac ports and Port of Ploce.
Features of the Transport Sector Fragmented market; Limited freedom of movement, low economies of scale, low profitability. Many small operators: Truck, Bus. Few Large scale enterprises: Railways. Ownership: Combination of public, private. Ageing fleets: Truck, Bus, Rail.
Market Objectives Infrastructure Renewal:Investment required Safety: NB. Standards must be improved Environmental Protection: Growing concern European Integration: High Priority Privatization:Not a priority
Organization of the Transport Sector Under Constitutional Authority: State Jurisdiction: International and Inter-entity Transport Entity Jurisdiction: Regional and Local Transport
Regulation of the Transport Sector in BiH Air Transport:BHDCA Road Transport:Entity governments, State legislation recently passed. Rail Transport:Entity governments under entity Railway Laws Water Transport:Old FRY Legislation
Issues of Concern Economic Issues Fragmented market with low profitability. Administrative Issues Inconsistent inspection and bribery for trucks and buses; International licences for trucks in short supply; Black Market for international truck licences. Legal Issues Enforcement and appeals dealt with by the courts; Ministers continually called upon to intervene.
Regulation supports working of the Market Licensing: Entry, schedules, professional, competence,financial fitness; etc. Public ServiceService to low population areas, Obligations:in off-peak periods, bilingual, etc. Pricing:Price regulation in absence of competition; Safety:Maintenance, rules for driving, vehicles and safety operation; EnforcementConsistent inspection and enforcement procedures.
Direct Benefits of Regulatory Process Provides an independent quasi-judicial body with impartial decisions by professional experts; Increases administrative efficiency and reduces costs; Provides standardized inspection and enforcement; Increases maintenance and safety standards; Removes Ministers from tedious and time consuming issues.
Future Challenges of the Transport Market Transportation is becoming increasingly complex; More international in scope EU Integration; Introduction of new technologies; Investment requirements and size of competing firms demanding larger scales of operation to be competitive and single economic space.
Future Demands for Managing Transport Regulation in support of state level transport laws; A BiH Transportation Regulatory Agency managed by professional experts who know the issues and the market; Single administration of government with body of professionals to develop policy; A National Transportation Law enunciating policy objectives to guide regulators, governments and operators.
Re-organization of Government Government must look towards increasing efficiency & effectiveness; Requires shifting people to new organizations to make them more functional not reducing them; Re-organizing should look to making use of current available skills; Needs a new view taking a consumer oriented approach looking to serve its clientele; Licensing and administration should be one stop shopping;
What Regulation will do For Consumers Increase efficiency, competition and service. For Operators Harmonize regulatory process; Increase profitability and investment; Improve access to international licences. For Government Increase administrative efficiency and reduce costs; Reduce crime and corruption; Frees ministers to deal with policy.
Requirements Needs an industry committed to promoting change rather than asking for political handouts; Needs political will to introduce change; Needs commitment to the future of BiH; Finally, teamwork by engineers, economists, lawyers and international experts.