Urban Transport in the OIC Megacities
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construction project in Europe and it is expected that the central section of Crossrail will start
operating in 2018 followed by a phased introduction of services along the rest of the Crossrail route
over several months (Crossrail, 2015).
3.4.2.2. Public transport of megacities in developing countries
Today, in the megacities of the developing world, the large concentrations of population and the lack
of available funds make it very difficult for local governments to respond to the growing demand. This
leads to dangerously overcrowded public transport which is primarily buses moving slowly and
inefficiently within the extreme traffic conditions. This section provides an overview of how public
transport in developing countries has evolved, the current issues regarding the management and
regulation of the formal and informal sector and the newest trends in public transport provision.
In most developing countries, public transport of the post-colonial period operated as a national
monopoly while in socialist economies, nationally owned public sector monopolies were also the rule.
Today, in most countries the monopoly systems have collapsed and have been replaced by smaller,
privately owned companies operating under permissions granted by the municipal authorities. China
and a few major cities in India and Eastern Europe are exceptions where traditional public operators
dominate. Despite the differences in the way the public transport system evolved in each country,
there are many common characteristics in the processes of public transport decline. In many cases,
governments have attempted to use the public transport industry as an instrument of social policy by
simultaneously constraining fare levels and structures, and by guaranteeing favourable wages and
working conditions to employees. Eventually, the mounting deficits and the absence of a secure fiscal
basis for subsidy resulted in the deterioration of maintenance, service reliability and operating
capacity (World Bank, 2002).
According to the World Bank (2002) the replacement of public sector monopolies with well managed
competitive regimes can be of great benefit to the poor of the developing world cities. Examples from
the industrialised world (such as in London, Copenhagen and Stockholm) show that competition can
drop the costs per unit of output while maintaining the service levels. It is crucial to choose a
competitive regime appropriate to the objectives of the procuring authority, the nature of the system
being managed (particularly in terms of size and number of modes), the potential strength of
competition in the supply market, and the administrative capability of the procuring authority. It is
also important to make sure that the competition model that is adopted is well adapted to the local
circumstances. Reforms to existing systems may take time and require progressive refinement as well
as key institutional requirements. Political supervision of public transport separated from
professional management and restructuring of existing institutions in a form conducive to
competition are critical in order to succeed (World Bank, 2002).
The lack of adequate regulation and management structures leads to the inevitable emergence of
informal transport, also referred as Paratransit, which aims to cover the gap of provision and offer
more flexible and affordable options against the fixed route gridlocked formal public transport.
Informal services can be those operating without appropriate licenses, permits provide collective ride
services to the public or registration papers from public authorities. They are usually minibuses, vans,
taxis, station wagons, three-wheelers, and motorcycles that operate illicitly. However, this does not
mean that they are always operating illegally, as in many countries the entry to the public transport
sector is effectively free, with operators subject only to the general rules of the road and law of the
land. Informal services are not always operating completely independently sincemany informal sector
operators are members of bars or associations (Cervero and Golub, 2007; World Bank, 2002; Cervero,
2013).
Paratransit modal shares generally rise as per capita incomes fall but they can perform different roles.
In Africa informal services are dominant mode of public transport for the poor, as they can substitute
the failed formal public transport provision without need for subsidies. In East and South Asia, and to
some extent in Latin America, Paratransit complements the formal sector, providing differentiated
services in identified niche markets as it responds quickly to shifting market demands resulting from