 IN FOCUS |
by Matthew W. Daus, Esq. |
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PROFESSOR DAUS CHAIRS FIRST INTERNATIONAL TAXI CONFERENCE IN ABU DHABI
Meets with Regulators and Transportation Industry from Moscow, Lebanon, Singapore, et al.
I was privileged to Chair and speak at the 1st International Taxi Conference of the International Association of Public Transport (for the Middle East and North Africa – MENA) held in March 2012 in Abu Dhabi, United Arab Emirates . The warmth and hospitality I received as a guest of honor by the local regulators and industry at the breathtaking Etihad Jumeira Towers on the Persian Gulf is an experience I will always treasure.
The conference was well attended by Middle Eastern, European, Asian and African taxi regulators and industry. Just a sampling included representatives from: Singapore, Dubai, Belgium, Japan, Lebanon, Moscow and India. I was pleased to hear from many regulators on the other side of the world that they were aware of the work of the International Association of Transportation Regulators (IATR), and many made commitments already to attend our 25 year anniversary conference in our Washington, DC birthplace this coming November.
I served as Chairman of an informative session entitled “Organizational and Legal Frameworks for Better Taxi Services,” which included presentations of taxi regulators from Singapore and Abu Dhabi, an industry operator from Moscow, Russia and a transportation expert from Beirut, Lebanon. We explored each respective jurisdiction’s governance models, organizational and legal paradigms for regulation and the delivery of taxi services. The various panelists covered a wide spectrum of regulatory evolution in the works from:
• an almost outright lack of regulation and oversight in Moscow,
• to a deregulated fare/rate system with strict licensing standards in Singapore,
• to a closed and tightly controlled system in Abu Dhabi,
• to a shared taxi program operating tantamount to a mini-bus or public transportation system in Beirut.
Changing the Rules of Taxi Business with New Technology…
Left to Right, Matthew W. Daus, President of International Association of Transportation Regulators (IATR), and representatives from countries including: Mowasalat, Doha-Qatar; Chennai, India; Japan and Paris, France.
While geographical, political and historical considerations affect the development and evolution of the taxi mode in each system, there is one common characteristic of all studied jurisdictions that is either in place or strived for – stringent licensing standards for drivers and operators to ensure safety and quality customer service.
Whether a system is open or closed in terms of the number of permits/taxicabs or whether rates are set by the open market or the regulator, in order for a system to be successful there must be licensing standards such as training, drug testing, criminal background checks, fines for traffic violations and systems to remove problematic drivers and owners from the road.
In Moscow, the privatization of the system and eventual total deregulation has led to tens of thousands more illegal taxicabs than legal vehicles. New laws imposing higher standards for licensure and significant enforcement resources are needed. I experienced the chaos firsthand when I visited Moscow this time last year to meet with the Minister of Transportation to provide advice on how to fix a system where illegal operators outnumber legal taxicabs by a ratio of 5 to 1.
In Singapore, while rates and entry restrictions were relaxed, tough rules are in place to ensure customer service and safety via a progressive point based penalty system that progresses
to suspension and license revocation.
On the other end of the regulatory spectrum is Abu Dhabi, UAE, which has a uniquely closed and controlled system with an innovative regulatory management and franchise operation. I met with and commended the Minister of Transportation representing King Zayed, as well as my friend Sultan Al Sabbagh of TransAD – the franchised management company that oversees all taxi companies in the city. The use of technology and tight driver standards, including uniforms, training, clean air and vehicle cleanliness standards set an enviable service standard coupled with unheard of initiatives such as a “taxi village” and housing for drivers.
Abu Dhabi taxi drivers have front seat screens with the photo and license of the driver displayed, and with an alarm that sounds when they exceed the speed limit; however, they only accept cash payment for fares. In Beirut, Lebanon, on the cusp of the taxi mode is a shared ride system for specially permitted taxicabs (with higher licensing standards) to operate along quasi-bus routes truly serving not just as an inter-modal solution, but crossing the boundaries into the bus route arena.
In conclusion, there was a healthy exchange of ideas on the nature of an ideal taxi system as well as operational and legal paradigms coupled with discussion of the practical reality of achieving those ideal regulatory goals. While certain systems evolved historically based on need and practice, such as Beirut’s shared taxi program, other jurisdictions are paralyzed due to a lack of political will necessary to make changes such as Moscow’s situation.
Singapore may be an experiment of deregulation that is arguably stable; however, it begs the question or definition of deregulation in that their tough licensing standards may create an artificial barrier to entering this system. Of course, Abu Dhabi’s structure and service is unique in terms of the easy ability to mandate service standards via UAE’s governance from a legal and political standpoint.
Overall, there is no right or wrong answer to the differing nature of regulation and service delivery as there are many overlapping common themes and best practices. However, the determining factor in achieving those goals is linked to the political realities and legal structure of each jurisdiction. Moreover, this session (and the overall conference) highlighted the importance of the taxi mode as being an often overlooked part of the public transportation system as either an inter-modal connection or as an outright primary mode of private transportation where public transit is deficient or non-existent.