INTRASTATE BUS SERVICES IN NEW SOUTH WALES: TRIAL ENTRY LIBERALISATION

This study examined the impact that the trial liberalising entry into and exit from the New South Wales long distance intrastate bus market has had upon the travelling public, bus operators, and competing modes of public transport. The trial was confined to the Sydney-Canberra and Sydney-north coast of New South Wales corridors and was conducted over the six months to 17 May 1987. The salient points arising out of the analysis of the trial were first, the highly competitive nature of the market for intrastate bus services over both corridors and second, the adverse financial impact that the bus services had on competing modes of public transport. The competition between bus companies resulted in significant fare reductions on both corridors at the commencement of the trial. Furthermore, despite increases towards the end of the trial, fares were still lower than prior to the commencement of the trial. In general, neither railway nor airline management responded to either price or service competition from the bus companies during the six month trial. This led to a significant diversion of patronage away from these services on to buses. Analysis of the market structure for bus services during the trial revealed that on the Sydney-Canberra corridor, two of the four bus operators providing services dominated the market, carrying around 80 percent of passengers between them. On the Sydney-north coast corridor, patronage was more evenly distributed among the operators. Examination of bus passenger profiles indicated that leisure, particularly travelling to visit friends and relatives, was the main reason that passengers used the intrastate bus services. In addition, on the Sydney-Canberra corridor over 70 percent of bus passengers paid full fare for their journey compared with 45 percent of rail passengers. In contrast, 70 percent of rail passengers travelled under concessional fares compared with around 45 percent of bus passengers on the north coast corridor. (TRRL)

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  • Corporate Authors:

    Bureau of Transport Economics, Australia

    P.O. Box 367
    Canberra, A.C.T. 2601,   Australia 
  • Publication Date: 1987

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  • Accession Number: 00475680
  • Record Type: Publication
  • Source Agency: ARRB
  • ISBN: 0-644-06784-5
  • Files: ITRD, TRIS, ATRI
  • Created Date: Aug 31 1988 12:00AM