is almost Easter. And millions of Mexicans will take during the next few days bus to transport multiple points of the Republic in the holiday season. Probably, due to the lack of competition in the sector, will do so in any large trucking companies grabbing the majority of routes in Mexico, and paying higher prices, even in some of the main routes in Europe, States United and Latin America.
Will you come out of bridge or holiday? These are the 10 tourist agencies with more complaints as well documents what Federal Commission of economic competition (Cofece) in the report “Study of competition in the federal carrier of passengers”, which warns that business 29 groups of bus, so only four – not to mention what – accounts for 95% of the 5 thousand 877 routes that exist in the country, causing a lack of competition which, in turn, has an impact on that bus users pay more expensive tickets.
To test this, the Cofece performed a comparison of routes in its report.
For example, Mexicali to Tijuana, the price paid by a user of bus is 2.03 pesos per kilometer; 11 cents more than the Washington DC-Boston route; 29 cents more than the Boston-Toronto route; 43 cents more than the Madrid-Barcelona route; 57 cents more than the Miami-Atlanta; 1 weights 15 cents more than the Amsterdam-Paris; and up to 1 weight 33 cents more than the Roma-Venecia.
“Compared with other countries, prices per km are relatively high, as a result of the concentration of the market and the lack of competition on routes,” stresses the report by Cofece, which adds that “the lack of competition has generated high prices for” users, who have as effect a loss of welfare on families”.
On this point, the antitrust agency raised that allowing the entry of more firms compete for bus routes, the price per kilometre could fall up to 40%.
Fine to Aeromexico and Mexicana de Aviacion for monopolistic practices in domestic travel in 2017, land passenger transport represented the 2⃣. 1⃣ % of GDP, that are 3⃣7⃣3⃣. 8⃣miles of mdp. What do we recommend to allow more competition in this market? Know in the #EstudioCOFECE and shares ➡ https://t.co/qEhNP556vH pic.twitter.com/Opdc3z5hYC – COFECE (@cofecemx) April 11, 2019
the causes of the lack of competition
one of the main causes giving rise to the lack of competition in the sector, says the Cofece, is that the existing regulation obliges bus companies to have an own order to operate terminal.
For example, currently there are 899 bus terminals in the country, but most are private and controlled by a single company – the report does not require what-, which prevents these to be used by other bus lines. In 310 terminals, only 34%, can operate different bus companies, such as the stations of the North or the CAP, in the city of Mexico.
Cofece investigates the market of corn flour by possible monopolistic practices another point is that, according to the current regulation, who operate the bus terminals are not required to have access to the terminal rules, not to make them public, if exist.
Therefore, new companies who want to access a path, and who need a terminal to operate, are forced to seek an agreement with the concessionaire of the terminal, or the companies that control it, “same that they have incentive to deny the” “access or give it in conditions of disadvantage”.
In this context, the Cofece requested the Secretariat of communications and transport (SCT) that analyzes modify roads and Autotrnasporte Federal law to be abolished the obligation to dispose of terminals to operate.
Also requested the SCT to make public the list of what are the Central trucking operating under concession, and that, once you finish these concessions to private companies, as is the case of the Central del Norte, whose concession ends this 2019, again adjudice the terminal, but through a public tender. On this point, the Cofece urged the SCT to, in the new contracts, ensure “open and non-discriminatory access” to the competing companies.
While plants that receive Yes to several bus routes, the Cofece asked them to make public the rules for access to the terminal.
Here you can read or download the full report.
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