This Paper was commissioned by the Bureau of Transport Economics to expand the Bureau's understanding of the nature and extent of subsidies in Australian transportation. The Paper looks at public transport in Australian cities and some of the methodologies which can be used in the evaluation of benefits and costs arising from changes in fare structures or from changes in service levels. The methodologies and data used were based on publicly available sources with minimum use being made of confidential data or analysis. However, the assumptions underlying this study reflect the author's views and are not necessarily those of the Bureau of Transport Economics.

• Benefits of Urban Public Transport Subsidies in Australia
  
  op_071.pdf
  (5.17 MB)

This Paper has been prepared as a submission to the Independent Review of Economic Regulation of Domestic Aviation. The approach followed in the submission has two parts. The first presents an analysis of the structure and performance of the airline industry under the existing system of economic regulation. The second considers the economic theory of industry structure and the general rationale for regulation and how they might be applied to the airline industry. From the performance analysis it is possible to identify areas in which performance might be improved and the theoretical considerations provide insights into possible ways in which that improvement might be achieved.

• Competition and Regulation in Domestic Aviation: Submission to Independent Review
  
  op_072.pdf
  (15.39 MB)

The main purpose of the work presented in this Paper was to examine the nature of road pricing in Australia and identify potential areas for improvement. The approach adopted was to consider the relevant aspects of economic theory underpinning road pricing and then to examine how different road pricing strategies have been implemented in a number of overseas countries; specifically the United States, New Zealand, Singapore and Hong Kong.

• Review of Road Pricing in Australia and Overseas
  
  op_073.pdf
  (8.48 MB)

Recent years have seen a major-increase in the level of competition within the long distance coach industry in Australia. This competition has led to a significant fall in fares and a reported growth in passenger numbers. Initial examination of information sources revealed an almost complete lack of reliable, publicly available, disaggregate data on the industry. Information used in preparation of this Paper was obtained in discussions with coach operators and State authorities, by detailed analysis of coach timetables and observations of coach occupancy. However, information on the size and income of the industry is still based on estimates rather than on any formal industry returns.

• Australian Long Distance Coach Industry Review
  
  op_074.pdf
  (7.15 MB)

Early in 1984 the Bureau of Transport Economics carried out a survey of trucking operations, primarily to assist the National Road Freight Industry Inquiry in its data collection activity. This Paper describes the survey and sets out its major findings. Both road transport (for hire and reward) and ancillary operators were covered, with particular attention being given to the ownerdrivers. The main aim of the survey was to collect information on the structure of commercial truck activity in Australia including administrative, operational and equipment details. Certain limited road freight task related information and income data were also collected. In terms of business activity, the survey covered the 1982–83 financial year.

• Survey of Trucking Operations 1982–83: Methodology and Results
  
  op_075.pdf
  (7.18 MB)

Contestable market theory suggests that if certain criteria are met, abovenormal profit-taking would be reduced or eliminated because of the threat of entry to exploit even transitory profit opportunities. In this Paper, the criteria which must be met for a market to be contestable are examined with the aim of determining whether Australian liner markets are inherently contestable and therefore theoretically self regulating in the sense that shippers will receive services at or near average costs. The Australia/Europe trade is examined in detail to provide a practical basis for the arguments presented. The assessment, however, is intended to apply to Australian liner markets in general.

• Contestability Theory: An Assessment of its Relevance to Australian Liner Shipping
  
  op_076.pdf
  (2.09 MB)

The objectives of this study were to review developments in world container shipping and establish the main trends in the deep sea trades. This will in turn provide background to the BTE's own studies of liner shipping and the review of shipping policy now taking place in Australia. Having established the trends in individual sectors using established material, the attempt has been made to draw the threads together, to offer interpretations of the scale and dynamics of the process of transition now taking place within the industry, and to consider the nature of the important issues now facing it.

• Container Shipping in Transition
  
  op_077.pdf
  (5.9 MB)

This study analyses the efficiency of the Australian liner shipping industry by using the recently developed theory of contestable markets. Its importance is reflected in the fact that over half of Australia's ocean borne trade is carried by the liner sector. Its topicality flows from both the global issues of legislative initiatives, increased political interference, technological and organisational changes and overtonnaging and from the singularly Australian concerns of service dependability, shore-based costs, trade union influence, the attitudes of shippers and the role of the ANL.

• Contestability and the Australian Liner Trades
  
  op_078.pdf
  (8.88 MB)

This Paper examines the demand for air travel in Australia and forecasts domestic passenger and freight aviation demand to the end of the century at five-year intervals. The analysis begins by reviewing recent trends in patronage and air fares. It then identifies other major factors affecting demand as background for the empirical analysis. The study period for the empirical analysis covers the past eight years, 1977 to 1984, using quarterly data. The models provide, among other things, estimates of price and income elasticities of demand (or demand responses) for air travel in Australia. Finally, the Paper presents forecast growth rates for air travel subject to different future growth scenarios to the year 2000.

• Demand for Australian Domestic Aviation Services: Forecasts by Market Segment
  
  op_079.pdf
  (5.51 MB)

In July 1984, the Federal Bureau of Transport Economics organised a seminar to enable the problems of the shore-based shipping industry to be discussed by its senior representatives. The seminar delegates agreed that there was a need for a review of shore-based shipping operations and subsequently the Federal Minister for Transport, the Hon. Peter Morris MHR, established an Industry Task Force on Shore-based Shipping Costs which reported in June 1986. The Bureau provided research support to the Task Force, and this Paper is based on the results of that research and some further analysis.

• Shore-Based Shipping Costs, Non-Bulk Cargo
  
  op_080.pdf
  (13.99 MB)