Review on the Consolidation Process of the Local Bus Operators in Asian Megacities

Abstract

A Fragmented market of local bus transport can be found in Asian developing countries, and the consolidation of the operators is implemented or proposed to modernize the industry and improve the service quality. Although the benefits of the consolidations have been highlighted and many cities are recommended to implement the consolidation policy, some cities have faced significant difficulties. This study examines consolidation policies in Asian cities from multiple perspectives to explore the background that necessitated these policies, and the implementation schemes adopted.

The analysis demonstrates that the examples of the consolidations have various characteristics according to the local condition, and the financial integration may be the critical path for the sustainable operation. Consolidation without the financial transparency of the bus transport business may not be able to resolve unnecessary competition among operators and reach a discussion on the subsidy.