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Pro Competencia says passengers pay overpriced fares

The users of the nation’s public transportation system pay more than they should. A recent study ordered by ProCompetencia attributes the difference in prices to market distortions caused by the predominant transport associations that impede competition in passenger and cargo transport.

The transport associations charge their members high fees for the use of specific routes and in exchange keep competitors at bay. The study on the Competitive Conditions in the Ground Transportation Market of the Dominican Republic (Condiciones de Competencia en el Mercado de Transporte Terrestre de la República Dominicana), published by the National Commission for the Defense of Competition (ProCompetencia) was ordered after the Superior Administrative Court (TSA) issued ruling 416-2016 against the monopolizing of public transportation, said Yolanda Martínez, president of ProCompetencia.

The study revealed that regarding passenger transport, the users of shared taxis (conchos) pay four to nine pesos more on fares than estimated market value. These fares vary from RD$20 to RD$45. Likewise, bus riders pay between RD$4 and RD$15 more than they should on fares of RD$20 and RD$75. The ubiquitous motorcycle taxis (moto concho) demand between five and ten pesos more than they should on fares of RD$20 and RD$50.

According to the study, these same price distortions occur with freight transportation. The study revealed that the cargo transport associations impede companies from using their own cargo vehicles or place restrictions on how these can be used.

For the study, four national surveys were carried out, in which 147 shared taxi (concho) drivers were interviewed, 143 moto-concho drivers, 69 operators of buses operated by the transport associations, among others.

Nevertheless, commenting on the study findings, the president of one of the largest transport organizations, Conatra, Antonio Marte said that the researchers did not consult with the transport union. “If Yolanda Martínez wants real information, her technicians should have come to us to get the correct numbers,” he said.

Source: DR1, DiarioLibre

July 15, 2017

Category: DR News |

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Last updated July 20, 2017 at 11:33 PM
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