Checks, balances needed in transport network

The recent debate in Voices on competition in the rail transport sector has raised valid concerns about the merits and downsides of privatised and nationalised transport systems.

The choice ultimately rests on how risk allocation in the sector can be managed best: A rail network with public-private partnerships allows risk sharing, while a nationalised network consolidates resources.

What must be recognised is that both privatised and nationalised transport systems require checks and balances for effective functionality. Without alternatives, or redundancies, in place for commuters, either system can easily fail.

There are many successful multi-operator rail networks in the world, such as in Tokyo, Seoul and the Keihanshin network in the Greater Osaka region.

Within the city of Osaka, the Osaka Municipal Transportation Bureau runs the Osaka Municipal Subway, while the fully privatised West Japan Railway Company (JR West) runs the Osaka Loop and Osaka Higashi lines, along with other city rail services.

Between Osaka and neighbouring cities, JR West provides railway services alongside other private operators, including the major ones of Hankyu, Hanshin, Keihan, Kintetsu and Nankai.

There are also many instances of successful single-operator rail networks, including the oft-cited London and Hong Kong networks operated by Transport for London (TfL) and Mass Transit Railway (MTR),respectively.

What many people forget to consider is that many of the world’s exemplary single-operator networks operate alongside well-established bus networks.

Singapore’s 400-plus bus services pale in comparison with the nearly 700 TfL and 800 franchised bus routes in London and Hong Kong, respectively, not to mention London’s network of non-TfL services and Hong Kong’s wide range of unfranchised services.

The robust bus networks in those cities provide strong alternatives to the rail network, unlike our bus network, which was unable to handle the demand during the July 7 rail breakdown.

If we remain on the privatisation route, then our rail landscape must be opened to more operators, including possibly TfL and MTR, which run rail concessions round the world.

If we go down the yellow brick road of nationalisation, then it is best to first ensure the provision of a robust network of alternative transport options.