Urban Transport in the OIC Megacities
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rapid urbanization. In other parts of Latin America, it increasingly competes directly with the
traditional suppliers either by duplicating franchised services or by quality differentiation (World
Bank, 2002; Cervero and Golub, 2007).
There are a number of common characteristics typical of Paratransit services, although not necessarily
applicable in all cases. To begin with, the vehicles operated are typically small including motorcycles,
as it easier to finance and because controls over small vehicles are more lax, even in situations where
the entry of large vehicles to the public transport market is strictly controlled. In addition, in the
absence of official licensing, operators often fail to meet the official requirements of driver and vehicle
standards and they are not properly insured. The vehicles used are also often very simple, including
in many cases non-motorized vehicles. Finally, Paratransit often operates outside the tax system or
benefits from favourable treatment of the non-corporate sector. It may also have an advantage in
competition with public transport operators, with costs inflated by minimum wage regulations, strict
working hour requirements, neglect, and corruption (Cervero and Golub, 2007; World Bank, 2002).
Despite the fact that the informal transport sector is seen as a nuisance by national and municipal
transport authorities, it provides significant benefits to urban populations. Paratransit is an important
entry point to urban employment. For example, in many Asian cities, it is estimated that over 15% of
the population is dependent directly or indirectly on the informal transport sector for their livelihood.
In Dhaka, this proportion had been estimated at over 25%. The services the sector offers are also
valuable. Except for being the mode of transport of the poor, provided by the poor, it can also provide
high-quality services to wealthier citizens. Manila is a megacity where both services are provided as
there is a “down market” of Jeepneys but also and “up market” of FX mini vans. Finally, Paratransit
services offer high levels of responsiveness to customers’ needs by providing access to poor areas,
direct routing, direct routing, speed and flexibility of service (World Bank, 2002; Cervero and Golub,
2007).
Despite their advantages, paratransit operations also cause significant problems in urban
environments. The main negative characteristics of informal transport are the dangerous on road
behaviour of the drivers, the pollution and congestion caused by the vehicles and the fact that they
undermine the formal services. In addition, scheduling is often erratic, with high frequencies and
overlapping services during peak hours and low or absent services during off peak hours. It is also
common that when operators are wholly dependent on ridership and often have to fight for waiting
passengers at bus stops and in terminals. Paratransit vehicles are often involved in accidents as
drivers can stop almost anywhere to board passengers and they lack appropriate training, they allow
inappropriate loadings, and the vehicles are poorly maintained. These defects are frequently exploited
by vested interests. For example, police and other public officials may take advantage of the quasi-
legal nature of the sector to supplement their incomes (World Bank, 2002; Cervero and Golub, 2007).
Problems related to illegal transport provision are not always very high in the social priority list as
megacities in the developing world are faced with pressing problems related to housing, child hunger,
and crime. Nonetheless, there are various examples of efforts made by local authorities in megacities
to regulate Paratransit services, with different levels of success. It is suggested that, given the
importance of Paratransit both as an income generator and as a service provider to the poor,
attempting to eliminate it by administrative action could generate significant unrest. For example,
when in 1999 the authorities of Sao Paulo tried to control the informal public transport sector, roads
were blocked and 24 formal sector large vehicles were destroyed in a period of three months.
Governments should examine why the informal sector exists, and then try to identify a regulatory and
administrative framework within which the potential of the sector can be mobilised and developed
(World Bank, 2002; Cervero and Golub, 2007).
A number of different approaches have been adopted to overcome the problems associated with
paratransit by providing the informal operators with security in terms of field of operation and future
revenues in order to ensure their commitment of capital and quality of service on their side. Several
countries allow free access in certain specialised markets such as the local feeder buses in Seoul and