Supply and pricing strategies of informal rural transport providers

Informal paratransit operators using a range of vehicle types (including pickup trucks, small buses, and motorcycles) are a major provider of mobility in rural areas of the developing world. The paper describes a mixed method approach used to examine such operators’ decisions about vehicle deployment, route frequency, network organisation, and pricing in three rural districts in South Africa. New evidence is presented showing that the condition of rural roads (both paved and unpaved) affects the quantity and quality of public transport services provided, as well as the fares charged to passengers. This strengthens the case for judicious infrastructure investment as a way of improving rural access and livelihoods, and suggests how this might happen by way of leveraging better private sector responses. We also describe the emergence of a differentiated service hierarchy involving a variety of vehicle types suited to different operating conditions, and based on intentional coordination among operators of minibus and pickup truck (‘bakkie’) services. We argue that governments should promote such coordination and innovation in rural transport markets.The UK government’s Department for International Development (DFID) under the African Community Access Programme (AFCAP).http://www.elsevier.com/locate/jtrangeohj201

Vehicle differentiation in informal rural transport services: New evidence from South Africa

Paper presented at the 32nd Annual Southern African Transport Conference 8-11 July 2013 "Transport and Sustainable Infrastructure", CSIR International Convention Centre, Pretoria, South Africa.The paper examines the characteristics of supply and pricing strategies of informal rural public transport operators in South Africa. The research provides statistical and qualitative confirmation of previous findings around the factors driving transport supply in rural areas of Sub-Saharan Africa, but adds significant new insights that can help shape more effective responses to the rural mobility challenge. A key determinant of the quantity and quality of service is the condition of roads (both paved and unpaved), suggesting that judicious infrastructure investment can be used to leverage better and more affordable private sector responses. We further describe the emergence of a differentiated service hierarchy involving a greater variety of vehicle types suited to different operating conditions, and based on intentional coordination among operators of minibus and pickup trucks ('bakkies') services. We discuss ways in which governments might promote such coordination and innovation in rural transport markets.This paper was transferred from the original CD ROM created for this conference. The material was published using Adobe Acrobat 10.1.0 Technology. The original CD ROM was produced by Document Transformation Technologies Postal Address: PO Box 560 Irene 0062 South Africa. Tel.: +27 12 667 2074 Fax: +27 12 667 2766 E-mail: nigel@doctech URL: http://www.doctech.co.zamv201