COMPETITION REFORMS IN KEY MARKETS FOR ENHANCING SOCIAL & ECONOMIC WELFARE IN DEVELOPING COUNTRIES (CREW PROJECT)-MEETING OF NATIONAL REFERENCE GROUP (NRG) MEMBERS

PRESENTATION ON RESERACH METHODS FOR TRANSPORT

OPERATOR AND PASSENGER STUDY

PRESENTATION BY PAULINA AGYEKUM (PhD)

6th AUGUST 2013

INTRODUCTION• The (CREW project) is being implemented by CUTS

to assess the state of competition in two selected sectors namely the staple food sector and the passenger transport sector.

• The focus is on the impact that past and existing public policies, regulations, private sector business practices, institutional arrangements and other factors have had on consumer and producer welfare.

• It also aims at identifying possible benefits from potential reforms- and tries to make a case for the same

OBJECTIVE• The objective is to:

• Study the availability of good quality transport services especially affordability to ordinary consumers who utilise intercity and intra-city bus service.

• Assess how profitable/attractive the passenger transport sector is for entrepreneurs (existing and new entrants)

• This presentation is to give an overview of the research approach and suggested methods to be applied in the Ghana study

SCOPE• Identify the components of competition reform

(policies, legislation, sectoral programmes, statutory instruments, administrative practices) in bus transport sector

• Assess institutional responsibility in reform implementation and actual performance in terms of– Failed reform initiatives– Reasons– Lessons learnt– Successful reforms initiatives, – administrative structure used and;– how the policy was implemented

SCOPE• Assess impact of competition reforms on market

structure based on:

– Porter’s “Five Forces” Supplier and buyer power, competitive rivalry, threat to substitution and threat of new entry.

– DFID Competition Assessment framework.- A guide to identifying barriers to competition in Developing Countries

• Assess impact of competition reform on consumer

(passenger) and producer (vehicle operator) welfare.

• Identify existing concerns of passenger and operators and their suggested reform initiatives and likely benefits.

OUTLINE OF RESERCH METHODOLOGY

SITUATION ANALYSIS RESOURCE MOBILISATION

DATA COLLECTION DATA ANALYSIS

SECONDARY

REPORTING

PRIMARY

Quantitative Qualitative Quantitative Qualitative

SITUATION ANALYSIS• Assessment of efficacy of earlier and current

reform measures on consumers and producers - through secondary review of literature and anecdotes (using qualitative and quantitative data).

• Identification of consumer and producer concerns from secondary sources

DATA COLLECTION SOURCES• Data will be collected from three (3) major

sources:

• Documented Materials eg. Reports, data sets etc.

• Motorised Road Users– Passengers– Vehicle Operators

• Relevant Institutions eg.– Public (Government Institutions, regulators)– Private (Business entities, Unions etc.)

DATA TYPE BY DOCUMENTED SOURCEDATA TYPE DOCUMENTED DATA SOURCE Policy related data •The Constitution of Ghana

•National Transport Policy•Shared Growth Agenda

Data on Regulations •Road Traffic Ordinance 1952, Repealed by Road Traffic Act 683 of 2004 and Amended with Road Traffic Act 761 of 2008•Local Government Act 462 of 1993•DVLA Act 569•National Road Safety Act 567 of 1999

Institutions Ministry of Roads and HighwaysMinistry of TransportDistrict AssembliesFinancial InstitutionsVehicle marketing companiesDVLANRSCDriver UnionsGhana Pass

DATA TYPE BY VEHICLE OPERATORSTYPE OF OPERATION

TYPE OF DATA SOURCE

Private Bus Operation by Inter-city Service

•Source of funding for vehicle acquisition•State of vehicle•Age of vehicle•Type of ownership•Market entry requirements•Operational arrangements•Operational factors affecting Routing Scheduling Trip frequency Transport fares•Turn over•Remuneration•Taxes and subsides•Vehicle Operation Costs•Availability of facilities

VIP bus serviceOA bus service

Public Bus Operation by Inter-city Service

Inter-city Bus ServiceMMT

Private Bus Operation by Intra-city Service

Trotros’

Public Bus Operation by Intra-city Service

MMT

DATA FROM PASSENGERSDATA TYPE DATA SOURCE

•Transport Availability•Trip purpose•Ability to make Choices•Affordability•Frequency of travel•Comfortability •Service Reliability •Safety•Seccurity•Observed Changes•Concerns•Suggested interventions

Private Bus Inter-city by Passenger

Public Bus Inter-city Passenger

Private Bus Intra-city Service Passenger

Public Bus Operation intra –city Passenger

DATA COLLECTION METHODS• Desk Studies for

– Secondary Data Review

– Collation of relevant information form documentary review

• Field Surveys – Administration of

structured questionnaires ( To be provided by CUTS) through interviews

– Key Personnel in-depth Interview

– Field Observations

SAMPLINGInter-city– 2 Busy routes will be selected eg. Accra –

Kumasi, Accra – Aflao or Accra – Takoradi.

– 2 public bus operators would be interviewed using structured questionnaires.

– 5-6 private bus operators will be interviewed

– Perception of 100 passenger would also be sampled (50 on each selected route)

SAMPLING• Intra-City

Suggest 1 city in Ghana for primary survey - Accra– In-depth Interviews:- 1 Public operator, 5-6 Private operators (different associations), govt. dept’s and relevant regulators

– Perception survey:- Of 100 passengers using intra-city transport

SAMPLING

• In-depth interviews with unstructured questions with: – Representatives of Government

Institutions- MOT, MRH, DVLA

– Representatives of other Institutions- Vanguard Assurance, GPRTU, Ghana Pass.

DATA ANALYSIS• Data Verification, Processing: Completed

questionnaires and checklists will be reviewed for errors, omissions etc. before data is processed.

• Data will then be processed to define the level of aggregation and disaggregation for different indicators for quantitative.

• The analytical tool adopted for the data processing is the SPSS statistical package and the excel spread sheet.

DATA ANALYSIS• Methods will be determined by data type. Examples include

the following:

• Quantitative data will be presented using appropriate statistical applications in terms of mean, median, percentage, histograms.

• Operational statistics such as test of significance of time series variances etc. Will also be used to determine significance of outcomes

• Transcripts of qualitative data be analysed with outcome

ratings by weighting, scoring and ranking methods to show how well options meet predefined criteria.

ANALYTICAL FRAMEWORK• Selected indicators will be used for the

measurement of the project components by:– Comparison across time: impact on select

variables pre and post reform

– Comparison across route: impact of a particular/similar reforms across route.

– Impact comparison across different reform initiatives.

ANALYTICAL FRAMEWORK• This will relate the records of sequential

changes that have occurred relating to particular points of interest.

• It will help understand the contributing causes or reasons for a particular problem or issue, or to identify effects or impacts of a particular change.

ANALYTICAL FRAMEWORK• Quantitative

– Comparison of impact on select variables pre and post reform

– Comparison across national, regional and district route

– Impact of a particular/similar reforms across national, regional and district, route

– Impact comparison across different reform initiatives

REPORTING

• Reporting schedule will be delivered in accordance with set requirements for the project.

CONCLUSION

• The impact of some of the transport reform initiatives undertaken on the bus transport sector has not been assessed and it is hoped that this study will highlight some important issues which will go a long way to influence policy direction for the betterment of the transport sector.