Monday, July 18, 2011

Is a duopoly more efficient than a nationalised transport company?

I believe that the newspapers have been quick in dishing out the news of the upcoming transport fare review. Seems like I was quite close to my prediction on the transport fare hike amount in my post here. I'm still of view that a nationalised transport company is definitely more efficient than a duopoly as written in my post here.

However, if the situation in Singapore is no longer a duopoly, then it may be a different case. How about letting private bus players get into the play here? I'm sure if they are allowed to use the bus stops and provide services to complement the routes by the duo private transport companies, this will send a message to them to buck up on their service.

As long as we do not have a competitive transport market, a nationalised transport company will be more efficient than the duopoly, not forgetting that the Singapore government bodies have been fairly efficient in their operations.

Look at the other Asia countries. Look at who owns them. Look at how efficient they are. Think again.

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