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In a bid to contain the growing disorder of the public transport system in Dhaka, limiting the number of bus operators is seen as a critical step. While experts have been arguing for long to take a comprehensive measure in this regard, policymakers have, of late, acknowledged it as a solution.
More than two years back, Annisul Huq, the late mayor of Dhaka North City Corporation (DNCC) and an eminent business leader, gave a proposal to revamp the public transport system in Dhaka. The proposal called for reduction of 200-plus overlapping bus routes to six main routes, replacement of ramshackle buses and minibuses with 4,000 new buses and transformation of 150-plus small bus operating companies into five to six broader holding companies with colour codes.
After the death of Mr Huq, the proposal got shelved. Later, early this year, Dhaka Transport Coordination Authority (DTCA) took an initiative to launch a transport network management company to operate all the bus companies. It outlined a plan reducing the bus routes to 90 with 10 bus operating companies and started trial-run on two routes with 105 articulated buses. But nothing actually emerged in the form of a concrete decision in last eight months.
The two-week long agitation by the students, however, shook the policymakers to some extent. A number of measures have hurriedly been taken by the government to address the disorder in public transport sector. As a part of the measures, a 10-member committee headed by Sayeed Khokon, Mayer of Dhaka North City Corporation (DNCC), has been formed. The committee has given the responsibility to finalise a roadmap to implement the plan of reducing bus companies and related measures.
The bus owners have to agree and cooperate with the implementing agencies to make the plan successful. As they have already invested their money and are earning revenues from the companies, they need to be ensured of their return on investment.
But addressing shadow economic activities is the toughest challenge. A large number of rent seekers are active in the sector. The nexus between the law enforcing agencies and the trade unions of the bus owners and workers have made the rent seekers powerful. Breaking the vicious cycle requires strong political will as a number of political elements are direct beneficiary of rent seeking.
Even if these challenges are addressed adequately, another big question remains. By reducing the number of bus companies to a few large holding companies, is the government going to encourage an oligopolistic market mechanism in the public transport in Dhaka? An oligopoly consists of a few firms or companies and these have significant influence over a particular industry.
It is true that a large number of bus companies have failed to bring any healthy competition in the public transport sector in Dhaka. Buses of these companies rather bring fierce competition among themselves making the commuters and pedestrians vulnerable to harassments and accidents. Failure to improve the situation now compels the policymakers to look for oligopolistic solution. The oligopolies are apparently considered competitors within a specific market but generally tend to collaborate with each other to extract higher profits by charging higher prices to the consumers. It is to be seen whether the oligopolistic solution will work to bring some relief to the commuters with additional costs.