India : Road Transport Service Efficiency Study
This study reviews the long-distance road transport industry in India in order to identify inefficiencies that could reduce the benefits to be derived from the large investments now being made by the Government in the nation’s highway infrastructure. While the road transport sector includes a wide variety of activities, this study focuses on three aspects which were considered the most relevant to the investments in highway infrastructure viz; the trucking industry, inter-city buses, and in view of its very important but largely unfulfilled role in enhancing road safety, the motor insurance industry. This study brings out some key findings and recommendations for the three sectors. For the trucking industry, delays at the border crossings are cited as major concern area resulting in a significant cost to the economy. It recommends the use of multi-axle vehicles and tractor-trailer combinations to reduce transport costs and road pavement damage, and improvement in axle load controls. For the inter-city bus service, it is recommended that the sector undertake reforms including deregulation of tariffs, restructuring & commercialization of STUs, elimination of monopoly rights and creation of an independent agency for regulation. Finally, regarding motor insurance, it is strongly recommended that the premiums related to insurance should be attached to the owner and the driver and not to the vehicle.
Road Transport Efficiency Study (PDF, 2000Kb)