Vehicle differentiation in informal rural transport services: New evidence from South Africa

Abstract

Paper presented at the 32nd Annual Southern African Transport Conference 8-11 July 2013 "Transport and Sustainable Infrastructure", CSIR International Convention Centre, Pretoria, South Africa.

The paper examines the characteristics of supply and pricing strategies of informal rural public transport operators in South Africa. The research provides statistical and qualitative confirmation of previous findings around the factors driving transport supply in rural areas of Sub-Saharan Africa, but adds significant new insights that can help shape more effective responses to the rural mobility challenge. A key determinant of the quantity and quality of service is the condition of roads (both paved and unpaved), suggesting that judicious infrastructure investment can be used to leverage better and more affordable private sector responses. We further describe the emergence of a differentiated service hierarchy involving a greater variety of vehicle types suited to different operating conditions, and based on intentional coordination among operators of minibus and pickup trucks ('bakkies') services. We discuss ways in which governments might promote such coordination and innovation in rural transport markets.