Competition Issues in Road Transport 2000 - …

1 Competition Issues in road Transport 2000 The OECD Competition Committee debated Competition Issues in road Transport in October 2000. This document includes an executive summary and the documents from the meeting: an analytical note by Mr. Darryl Biggar for the OECD, written submissions from Australia, the Czech Republic, Ireland, Italy, Japan, Korea, the Netherlands, Norway, Poland, Spain, Turkey, the United States, as well as an aide-memoire of the discussion. The road Transport sector, an essential mode of Transport in OECD economies, is conventionally divided into two, largely unrelated, parts the road freight industry and the road passenger industry.

2 The sectors under discussion trucking, buses, and taxis have quite different characteristics and scope for Competition , which reflect inter alia differences in the timeliness and economies of scale and scope in operations. Trucking can sustain high level of Competition and to some extent buses as well while there is some debate as to how and what form of Competition can be introduced in taxis. As in the air Transport industry, international trucking is governed by restrictive bilateral treaties. Most countries have liberalised their domestic trucking sector, removing controls on entry and prices. In the bus industry, long-distance bus services are liberalised in some countries while intra-city or local buses are very rarely liberalised.

3 The taxi industry appears at first sight to be competitive with many buyers and many sellers. Structural Reform in the Rail Industry (2005) Competition Policy and the Deregulation of road Transport (1990) UnclassifiedDAFFE/CLP(2001)10 Organisation de Coop ration et de D veloppement EconomiquesOrganisation for Economic Co-operation and Development22-May-2001_____English - Or. EnglishDIRECTORATE FOR FINANCIAL, FISCAL AND ENTERPRISE AFFAIRSCOMMITTEE ON Competition LAW AND POLICYCOMPETITION Issues IN road TRANSPORTJT00108149 Document complet disponible sur OLIS dans son format d origineComplete document available on OLIS in its original formatDAFFE/CLP(2001)10 UnclassifiedEnglish - Or.

4 English DAFFE/CLP(2001)102 FOREWORDThis document comprises proceedings in the original languages of a roundtable on Transport road ,which was held by the Committee on Competition Law and Policy in October is published under the responsibility of the Secretary General of the OECD to bringinformation on this topic to the attention of a wider compilation is one of several published in a series entitled " Competition PolicyRoundtables".PR FACECe document rassemble la documentation dans la langue d'origine dans laquelle elle a t soumise, relative une table ronde sur les transports routiers, qui s'est tenue en octobre 2000 dans le cadrede la r union du Comit du droit et de la politique de la est publi sous la responsabilit du Secr taire g n ral de l'OCDE, afin de porter laconnaissance d'un large public les l ments d'information qui ont t r unis cette compilation fait partie de la s rie intitul e "Les tables rondes sur la politique de laconcurrence".

5 Visit our Internet Site -- Consultez notre site (2001)103 OTHER TITLESSERIES ROUNDTABLES ON Competition Policy and Environment OCDE/GD(96)22(Roundtable in May 1995, published in 1996) Firm DefenceOCDE/GD(96)23(Roundtable in May 1995, published in 1996) Policy and Film DistributionOCDE/GD(96)60(Rounddtable in November 1995, published in 1996) Policy and Efficiency Claims in Horizontal AgreementsOCDE/GD(96)65(Roundtable in November 1995, published in 1996) Essential Facilities ConceptOCDE/GD(96)113(Roundtable in February 1996, published in 1996) in TelecommunicationsOCDE/GD(96)114(Roundta ble in November 1995, published in 1996) Reform of International Satellite OrganisationsOCDE/GD(96)123(Roundtable in November 1995, published in 1996) of Dominance and MonopolisationOCDE/GD(96)131(Roundtable in February 1996, published in 1996) of Competition Policy to High Tech MarketsOCDE/GD(97)44(Roundtable in April 1996, published in 1997) Cartel Bans.

6 Criteria for Exemption for Small andMedium-sized EnterprisesOCDE/GD(97)53(Roundtable in April 1996, published in 1997) Issues related to SportsOCDE/GD(97)128(Roundtable in October 1996, published in 1997) of Competition Policy to the Electricity SectorOCDE/GD(97)132(Roundtable in October 1996, published in 1997) Enforcement of Competition Law OCDE/GD(97)200(Roundtable in October 1996, published in 1997) Price MaintenanceOCDE/GD(97)229(Roundtable in February 1997, published in 1997)DAFFE/CLP(2001) : Structure, Regulation and Competition PolicyDAFFE/CLP(98)1(Roundtable in October 1997, published in 1998) Policy and International Airport ServicesDAFFE/CLP(98)3(Roundtable in June 1997, published in 1998) the Role of Competition in the Regulation of BanksDAFFE/CLP(98)16(Roundtable in February 1998, published in 1998) Policy and Intellectual Property RightsDAFFE/CLP(98)18(Roundtable in October 1997, published in 1998) and Related Regulation Issues in the Insurance IndustryDAFFE/CLP(98)20(Roundtable in June 1998, published in 1998) Policy and Procurement MarketsDAFFE/CLP(99)3(Roundtable in June 1998, published in January 1999)

7 And Competition Issues in Broadcasting in the lightof ConvergenceDAFFE/CLP(99)1(Roundtable in October 1998, published in April 1999) between Regulators and Competition AuthoritiesDAFFE/CLP(99)8(Roundtable in June 1998, published in June 1999) Power of Multiproduct RetailersDAFFE/CLP(99)21(Roundtable in October 1998, published in July 1999) Competition in Postal ServicesDAFFE/CLP(99)22(Roundtable in February 1999, published in September 1999) (99)25(Roundtable in May 1999, published in October 1999) Mergers and AlliancesDAFFE/CLP(2000)1(Roundtable in October 1999, published in January 2000) in Professional ServicesDAFFE/CLP(2000)2(Roundtable in June 1999, published in February 2000) in Local Services.

8 Solid Waste ManagementDAFFE/CLP(2000)13(Roundtable in October 1999, published in July 2000) in Financial Services(Roundtable in June 2000, published in July 2000)DAFFE/CLP(2000) Competition in the Natural Gas IndustryDAFFE/CLP/2000)18(Roundtable in February 2000)DAFFE/CLP(2001) Issues in Electronic Commerce(Roundtable in October 2000)DAFFE/CLP(2000) and Regulation Issues in the Pharmaceutical IndustryDAFFE/CLP(2000)29(Roundtable in June 2000) Issues in Joint VenturesDAFFE/CLP(2000)33(Roundtable in October 2000)DAFFE/CLP(2001)106 DAFFE/CLP(2001)107 TABLE OF CONTENTSEXECUTIVE SUMMARY .. 9 SYNTH 15 BACKGROUND NOTE .. 21 NOTE DE R F RENCE ..71 NATIONAL CONTRIBUTIONSA ustralia.

9 125 Czech Republic .. 143 Ireland .. 151 Italy .. 189 Netherlands .. 195 Norway .. 243 Turkey .. 249 United States .. 255 AIDE-MEMOIRE OF THE DISCUSSION .. 271 AIDE-M MOIRE DE LA DISCUSSION .. 289 DAFFE/CLP(2001)108 DAFFE/CLP(2001)109 EXECUTIVE SUMMARYby the SecretariatIn the light of the written submissions, the background note and the oral discussion, the followingpoints emerge:(1) road Transport is undeniably the most important mode of Transport in OECD economies. Over thelast fifty years, growth in road Transport has accounted for virtually all of the growth in land-based Transport modes. road Transport competes with other Transport modes, but the extent towhich Transport modes are substitutes in any given case depends on a number of factors such asthe type of goods (or passengers) to be transported, the distances involved, the importance oftimeliness, the level of charges for infrastructure use, and so onThe road Transport industry can be divided into many different parts with quite differentcharacteristics and scope for Competition .

10 Differences in the scope for Competition in thesemarkets reflect, amongst other things, underlying differences in the importance of timeliness and inthe economies of scale and scope in Transport accounts for a larger share of the total Transport industry than all the other transportmodes combined, on both the passenger and freight side of this market. road Transport has alsobeen growing at a faster rate than other Transport modes. Although there is some competitionbetween Transport modes the scope for inter-modal Competition depends, amongst other things, onthe type of goods (or passengers) being carried, the origin-destination combination, and theimportance of timeliness.