implementing pricing policies in interurban road transport in nas countries in the light of present...

IMPLEMENTING PRICING POLICIES IN INTERURBAN ROAD TRANSPORT IN

NAS COUNTRIES IN THE LIGHT OF PRESENT TRANSPORT POLICY

- THE EXAMPLE OF POLAND

Monika BakUniversity of Gdansk, Poland

e-mail: [email protected]

M.Bak. Essay prepared for the fourth IMPRINT seminar, BUDAPEST, 16-17 October 2003

STRUCTURE OF THE PRESENTATION

• What have been the major changes in road transport in NAS during transformation?

• How historical background influences implementing pricing policies in NAS?

• What kind of changes have to occurred during transformation in order to implement pricing system in transport?

• How transport policies in NAS have changed during transformation (case of Poland)?

• What are the barriers of implementing pricing system and how to overcome them?


IDEA OF PRICING SYSTEM IN NAS

• Specific approach and constraintsof implementing pricing policies in NASor problems similar as in the EU;

• Economic growth and transformation as phenomena promoting development of road transport.


INTERURBAN ROAD TRANSPORT IN NAS - EVOLUTION DURING TRANSITION

quantitative changes

- increase of external costs of transport

qualitative changes

+ decrease of external costs of transport activity;

- under-investment of transport infrastructure


GENERAL CHANGES IN ROAD TRANSPORT DURING TRANSFORMATION

PA

SS

EN

GE

R M

OD

E FR

EIG

HT

MO

DE

TECHNICAL

STRUCTURAL

SOCIAL

INFRASTRUCTURE


EVOLUTION OF NUMBER OF PASSENGER CARS IN POLAND

0

50

100

150

200

250

300

1990 1994 1998 2002

num

ber

per

1000

citi

zens

0

2000

4000

6000

8000

10000

12000

tota

l num

ber

in th

ousa

nd

number of passenger cars per 1000 citizens total number of pasenger cars in thousand


Evolution of passenger interurban buses and coaches and rail transport in Poland

in the years 1990-2002

0

500000

1000000

1500000

2000000

2500000

1990 1994 1998 2002

in th

s pa

ssen

gers

0

10000

20000

30000

40000

50000

60000

in m

illio

n pa

skm

rail transport (ths.passengers) interurban buses and coaches (ths.passengers)

rail transport (million paskm) interurban buses and coaches (million paskm)


Evolution of freight road and rail transport in Poland in the years 1990-2002

0

200000

400000

600000

800000

1000000

1200000

1400000

1990 1994 1998 2002

in th

s to

nnes

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

in m

illio

n tk

m

rail transport (ths.tonnes) road transport (ths.tonnes)

rail transport (million tkm) road transport (million tkm)


ECONOMIC PRIORITIES IN CENTRALLY PLANNED ECONOMY -

BACKGROUND OF PRICING

Centrally planned economy Macro economic priorities

Command and quota systemsupport for heavy industries (preferences for rail transport)

Inefficiency of the system

Lack of financial resources for infrastructure investments and environment protection

Evidence of socialism power - “political” investments

(e.g. In Poland by using foreign credits)


PURPOSES OF TARIFF POLICY IN TRANSPORT

IN CENTRALLY PLANNED ECONOMY

YES

• collecting resources to state budget,

• impact on localisation of production,

• stimulating export, support for anti-import production,

• improvement of balance of payments,

• co-ordination of transport tariffs with general policy of the country

NO

• internalisation of

external costs,

• management of traffic,

• promoting fair

competition.


SCHEME OF THE MODEL OF TRANSFORMATION

Centrallyplanned

economy

Marketeconomy

Changes of patterns of behaviour: law,tradition, informal patterns

Changes of system of decision-making

Changes of organisations: enterprise, state, international organisations local authorities, non-governmental organisations.

Effects of transformation

Technical effects

Structural effects

Social effectsInfrastructure effects

Inte

rnal

fact

ors E

xtern

al factors

Economic transformation


PRICING POLICY IN TRANSPORT DURING TRANSFORMATION

- PATTERNS OF BEHAVIOUR

Necessary changes:

• Law: removal of old tariff system, introducing new legal order,

• Customs, tradition: social acceptance of pricing system changes in transport sector, taking care of natural environment

Constraints:

• Law: unclear statement of the EU, lack of good practical examples, incompatibility of old and new regulations and incompatibility of regulations in different sectors;

• Customs, tradition: acceptability problems in political sphere, objection against intervention in young market economy, social objections


PRICING POLICY IN TRANSPORT DURING TRANSFORMATION

- SYSTEM OF DECISION MAKING

Necessary changes:

• Changing role of the state, but allowing some spheres (including pricing policy) in state competencies,

• Free and independent decisions of enterprises

Constraints:

• Confusing of state institutions – organisational defects, blocking efficient decision making in new economic conditions,

• Limitation of enterprises’ decision making in new pricing system


PRICING POLICY IN TRANSPORT DURING TRANSFORMATION - ORGANISATIONS

Necessary changes: Constraints:State Settlement of fair and comprehensible pricing policy

in transport,Responsibility for sustainable development(calculation of external costs and internalisationpolicies).

Economic crisis during transformation (includingcrisis of public financing)

Enterprise Clear rules of competition on free market, singleconditions and charges of transport enterprises indifferent modes

Threats of excessive fiscal charges, especiallyin the case of road enterprises

Internation.Institutions

Settlement of the assumptions of pricing policy intransport on international level (role of the EU),Unification of national regulations

Diversified approaches concerning pricing intransport on national level,application of different, sometimes contradictoryinstruments

Local andregionalauthorities

Possibility of creating transport policy, includingpricing on local level,Policy of environment protection, calculation ofexternal cost of transport, instruments ofinternalisation

Revenues more important than other purposesof pricing policy in transport

Non-gover-nmental

Pro-ecological activity assisting reforming pricingpolicy in transport

Low political acceptance of the organisation,Law effectiveness of activity


IMPACT OF INTERNAL AND EXTERNAL FACTORS INFLUENCING TRANSFORMATION ON

IMPLEMENTING PRICING POLICIES

Internal factors:

• political: determination of reforming pricing system and reducing external costs of transport

• economic: consideration purposes different from only achieving budget revenues.

External factors:

• integration processes in Europe: pressure on adjustment to harmonised EU rules.


HOW EFFECTS OF TRANSFORMATION CAN BE CHANGED IF PRICING POLICIES

ARE IMPLEMENTED?

IMPACT ON FOLLOWING CHANGES:

• modernisation of the fleet, technical improvements,

• rationalisation of modal structure of transport,

• competition in transport markets,

• efficiency of transport activity,

• reduction of external costs,

• better living standard.


POLISH TRANSPORT POLICY VERSUS PRICING POLICY - BASIC DOCUMENTS

• Transport policy of 1995;

• “National strategy of transport development for the years 2000-2006”;

• “Transport policy of the state for 2001-2015 for sustainable development”;

• “Economic strategy of the government Entrepreneurship – Development – Labour” - Infrastructure – key to development

• “Polish national plan of development 2004-2006”;

• “Operational programme – transport – maritime economy”;

• “Strategy of development of the transport sector in the years 2004-2006 for use of Cohesion Fund of the EU”


CALCULATION OF COSTS AND INTERNALISATION IN THE NAS

• different / incompatible systems of collecting data;

• problems with infrastructure cost evidence;

• methodological problems with cost calculation;

• political and social acceptance for internalisation;

• insufficient results of studies on internalisation policies.


BARRIERS OF IMPLEMENTING PRICING POLICIES - SUMMARY

• Lack of information;

• Mentality and social acceptance;

• Transitional ideological chaos;

• Transitional chaos in transport policy;

• Financial resources.


HOW TO OVERCOME BARRIERS - CONCLUSIONS

• Completion of transformation process;

• High economic growth;

• Good example of the EU.

implementing pricing policies in interurban road transport in nas countries in the light of present...

Documents