CHAPTER 6
6. Formal and Informal Public
Transport
GUIDELINES FOR
PASSENGER TRANSPORT IN SOUTH
AFRICA
A MULTI MODAL ANALYSIS
6.1 Introduction
• This study guide suggests that the parameters
(chapter 5)can be guaranteed only if there is
a:
– “formal” network of fixed routes and
– laid-down schedules.
6.2 Definitions
(a) Formal Public Transport services are
characterised by:
– fixed routes and stops
– fixed schedules
– drivers rosters which impose limits on hours of
work and which stipulate the routes to be
followed
– ticketing systems which incorporate proof of
payment (either a paper ticket, card or token
system).
6.2 Definitions cont’
• Usually (but not always) formal systems are
subsidised in some form or other.
– Rail and Buses in SA
• It is implicit in the Act that formal public
transport will be managed through the
granting of contracts and concessions as
described in para 4.2.4 of this guide.
6.2 Definitions cont’
(b) Informal Public Transport Services:
– do not always follow fixed routes (although they
do so in the majority of cases).
– do not observe fixed schedules or
– do not issue tickets.
– no limits on the number of hours that drivers can
remain behind the wheel
– make use of 15-passenger vehicles and
– are not directly subsidised
6.2 Definitions cont’
• It is implicit in the Act that informal public
transport will be managed through the
granting of operating licences, also as
described in para 4.2.4 of this guide.
(a) The Debate between the “Formal”
and “Informal” Sectors
• In support of Informal Services (Wynne and
Roth 1982: iv):
– privately-owned,
– profitable modes that provide
– relatively fast,
– frequent and
– convenient service
– and all that at highly affordable prices.
(a) The Debate between the “Formal”
and “Informal” Sectors cont’
• Characterised in many cases by fleets of
collective taxis, jitneys and microbuses that
cruise the streets and provide door-to-door or
main line service.
• These alternative systems are a success story
by all service criteria.
• Moreover, they provide substantial
employment.
(a) The Debate between the “Formal”
and “Informal” Sectors cont’
• Abundant evidence exists that a small,
privately-run enterprise is inherently more
efficient than a large monopoly sustained in
large part by the taxpayer
• Owner-operators work harder, handle more
jobs and have less overhead than public
enterprises protected by subsidies.
(a) The Debate between the “Formal”
and “Informal” Sectors cont’
• Invariably the private operator has :
– less capital and will opt for smaller vehicles — taxis,
vans or microbuses —
– which in turn are cheaper to acquire,
– easier to fill and
– more economical to operate
• than standard- sized buses
• Result is – make profit while charging their
passengers competitive and sometimes lower
fares than the publicly-owned systems.
(a) The Debate between the “Formal”
and “Informal” Sectors cont’
• Support for Formal Services
– informal operators (taxi’s) cannot serve very low
density routes:
– their primary areas are moderately or heavily
travelled corridors
– main advantage is frequent and fast service,
– But lack in reliability and regularity of service,
safety standards, comfort, information about
services and fares, etc.
(a) The Debate between the “Formal”
and “Informal” Sectors cont’
• Informal Operators (taxi’s) have an important,
sometimes even dominant role in urban
transportation where:
1. Labour is very cheap.
2. Regular (formal) public transport offers an
inadequate level of service or it is very costly to
operate due to excessive wages or obsolete
labour rules.
(a) The Debate between the “Formal”
and “Informal” Sectors cont’
3. Requirements for regularity of service, comfort,
safety, and so on, are not high.
4. It is desirable to have separate public transport
services for two different population categories.
• These conditions non-exsistent in Europe and
USA
(a) The Debate between the “Formal”
and “Informal” Sectors cont’
• Taxi’s are extensively used in developing
countries but , their use does not by any
means obviate the need for higher
performance public transport modes, such as
bus and rail public transport
(b) Formal versus Informal? The South
African position (SACO)
• Each sector should be seen as complementing
the other - catering for a particular market
segment
• formal network will merely be a minimum
level of service, offering the community a
“lifeline” in all areas and at all reasonable
times.
(b) Formal versus Informal? The South
African position (SACO) cont’
• informal network will continue to cater for the
large number of passengers who prefer a
more frequent service on wellpatronised
routes and who want to get to their
destination faster than the formal network
can get them there.
• informal network will remain the dominant
mode of public transport in terms of
passenger volumes.
(b) Formal versus Informal? The South
African position (SACO) cont’
• both the formal and informal sectors of public
transport will improve as a result of the
introduction of Transport Authorities
– better co-ordination
– existing equipment and resources being used
more effectively.
• Informal services will benefit, as the
(proposed) formal contract network will
absorb some excess capacity in the informal
sector
(c) Market “Niches”
• Public transport users can be classified into 2
groups:
1. those who would be willing to support formal
services, and
2. those who prefer to use informal services
(d) Formal
Why passengers would prefer formal services:
1. prefer the “certainty” of service, particularly
in low-density areas where informal services
do not operate.
2. scheduled service is desirable in low-density
areas, so that the comparatively few
passengers who wish to travel, can be
“assembled” into cost-effective groups
(d) Formal cont’
3. Cash fares on formal services are usually
higher than informal services, but the use of
bulk purchase (clipcards and seasons) can
result in lower fares
4. Formal services are also less likely to be
crowded (except perhaps for third class on a
train)
(g) Informal
Why passengers would prefer informal services:
• higher speed of travel, which is a combination
of better frequencies and higher road speeds
due to a smaller, more manoeuvrable vehicle
(busy routes in large cities)
• Fares are usually lower than the
corresponding cash fare on formal transport.
(g) Informal cont’
• In smaller towns, informal services are usually
the only public transport available.
• Informal services are also provided in lowerdensity areas to serve specific groups of
people
Conclusion
• Each sector has its own market “niche” and
that it would be unwise to attempt to give
either the formal or the informal sector an
unjustified advantage at the expense of the
other.
• It is possible that an improvement in formal
services could lead to a lowering of passenger
levels in the informal sector – not the
objective
Conclusion
• The operation of a formal, scheduled service
running every hour (or even every half hour) is
unlikely to undermine any informal
operator(s) who may be serving the same area
or route
Conclusion
• The motivation for better formal services
should be based mainly on their ability to
attract private car users, many of whom are
more likely to respond favourably to improved
formal services than to improved informal
services.
Conclusion
• The 3WIN strategy document of the
Government emphasises the need for the
informal sector to take part in formal,
integrated networks through the contract
system.
Conclusion
• The transition period during which formal
operations are expanded could be an uneasy
one - possible that informal operators will
regard the new developments as a threat to
their business.
• To prevent violence
Conclusion
• To prevent unrest and violence:
1. grant new contracts to minibus operators on
completely new routes or in areas that were
not previously well served by public transport
at all
2. Higher fares could also be charged to avoid
the accusation that subsidised operators are
now competing with unsubsidised ones.
Conclusion
• Ultimately it is the passenger who should be
given the opportunity to show what kind of
service he/she prefers.