Are AC coach fares fair for passengers in Bangladesh?

The industry, although highly competitive, is highly under-regulated, as the regulator has limited legal tools at its disposal to enforce order

It’s hard to come up with a straight answer if someone asks how much a Rangpur-bound passenger on an air-conditioned coach would have to pay for the journey.

The distance between Dhaka and Rangpur is 300 kilometres, but different air-conditioned coach operators charge differently for similar services they provide.

For instance, the most popular operators on the route are Hanif Paribahan and SR Paribahan, and both operators charge Tk 1,500 for an on-way trip per passenger.

The second-tier operators - Agomoni Express and Shah Ali Paribahan - charge Tk 1,300 and Tk 1,200, respectively.

The difference between the services? Very marginal, said some passengers who travel the distance regularly.

The Dhaka to Rangpur route is only one example.

Passengers for almost every route have the same complaints against operators that they charge an exorbitant amount of fare without caring to give a breakdown or explanation.

Tabiur Rahman, a teacher at Rangpur Begum Rokeya University, said air-conditioned bus fares should not be so high for the distance between Dhaka and the northern district.

"Air-conditioned bus fare from Dhaka to Rangpur ranges from Tk 1,200 to Tk 1,500. Non-AC bus fare is between Tk 600 and Tk 700. The AC bus fares are a bit higher when compared with those of the non-AC buses. The fare for this much distance seems more to me."

Mustafa Mahmud of Bogura, who regularly visits Dhaka for business, said the AC bus fare is twice as much of the non-AC service.

“There doesn’t seem to be any government intervention here. Companies set their own fares which put a strain on the purse of passengers.”

So, why are the fares significantly different from one operator to another?

Passengers and stakeholders bdnews24.com spoke to shifted most of the blame onto the Bangladesh Road Transport Authority, or BRTA, for not having a policy about a standard fare structure for distances.

The other variable factor is the quality of the coaches the operators use.

The road transport law clearly states that BRTA has full authority to develop a fare structure for the sector if some aggrieved passenger lodges an official complaint.

BRTA’s response?

“Nobody, ever, complained about AC coach fares to us,” a top official of the transport regulator told bdndews24.com.

OVERVIEW OF AC COACH SERVICES IN BANGLADESH

• An operator named ‘R&Co’ first launched AC coach services in Bangladesh on Dhaka to Chattogram route in 1984 at a limited capacity.

• Green Line Paribahan in 1990, and two years later, Shohagh Paribahan had started running AC coaches on the same route at a greater capacity.

• Along with Green Line and Shohagh, Shyamoli Paribahan, Hanif Paribahan, Soudia, Ena, Desh Travels, TR Travels, and Saintmartin Paribahan are some of the more prominent names in the sector.

• Bangladesh Road Transport Corporation has AC coach operations as well.

• Neither BRTA nor the transport owners have the exact data on the number of AC coaches in Bangladesh. A rough estimation puts the number close to 1,000.

‘FARE’ GATE?

According to BRTA’s updated standard fare structure, an operator can charge a passenger Tk 2.15 per kilometre for long-haul rides between Dhaka and Chattogram.

However, the rate was estimated by setting a 52-seater coach as the base. The rate will proportionally increase if the coaches are modified to have less number of seats.

Following the BRTA structure of fares, a passenger pays Tk 1,100, including highway tolls, to travel to Cox’s Bazar from Dhaka, a distance of 386 km, on a non-AC coach.

However, the rate differs for AC coaches based on the quality of coaches, number of seats and class.

For example, Ena Paribahan offers two different kinds of coaches on that route.

For South Korea-made Hyundai 28-seater AC ‘Business’ coaches, the charge is Tk 2.000, while for 36-seater AC ‘Economy’ coaches, passengers pay Tk 1,300 for a one-way trip.

To make a trip to the same route, Sohahgh Paribahan charges Tk 2,100 for its 45-seater Swedish-made Scania double-decker coaches, while passengers must pay Tk 2,000 for a trip on Shohagh’s 31-seater single-deck coaches.

Hanif charges Tk 2,000 for its 34-seater Volvo coaches on the same route, Saudia Paribahan charges Tk 1,500 for its 32-seaters, and Royal Paribahan charges Tk 1,800 for its sleeper coaches on the same route.

‘COMPETITION DETERMINES THE FARE, NOT REGULATION’  

Transport owners interviewed for this article categorically claimed that there was no way the regulator can set a standard fare structure for their services, as different operators offer different amenities.

Ramesh Chandra Ghosh, chairman of the Bangladesh Bus Truck Owners' Association, said that each operator has different seating arrangements based on the chassis of the company they prefer.

“Each operator has their preference of chassis. Generally, for AC coaches, Hyundai, Volvo, Scania, Hino RM2, Mercedes, and MAN are most popular among top operators in the country,” he said.

“The interior arrangements are constructed after we import chassis from overseas companies, and then the operators decide about fares based on the amenities and arrangements.”

When asked if the current unregulated fares structure is fair or not for the passengers, Ramesh said it is the competition among operators to provide the best possible services that determine the fares.

“If an operator charges more but offers less than ideal amenities, passengers will reject that operator the next day,” he said.

Khandaker Enayetullah, general secretary of the Bangladesh Road Transport Owners Association, warned about the adverse effect on the sector if BRTA intervenes to determine the fare.

“First, the price of each coach varies. One may cost Tk 5 million, and another may cost Tk 20 million. Maintenance costs and seating arrangements for coaches are different. That’s why the debate of standard fare structure is moot here.

"Moreover", Enayetullah continued, "if the BRTA intervenes with a fare structure, that will surely dampen the mood of the owners to import luxurious vehicles, which in turn will affect the services they provide."

“In a competitive market, operators don’t have the luxury to form a cartel and rig the rate.”

THE SO-CALLED LEGAL BARRIER

Bangladesh Road Transport Act 2018 somewhat made the regulator a lame duck in fixing a fare structure for AC coaches.

Though the BRTA has the sole authority to fix the fare structure of mass transport in Bangladesh, the AC coach services are exempt from the rule.

There is, however, a loophole.

A provision in the law says that if an aggrieved passenger lodges a formal complaint, the regulator may exercise its right to devise a fare structure for the sector.

BRTA Director Sitangshu Shekhar Bishwas said the regulator never pushed for a fare structure in the sector as the existing law did not make it mandatory.

“Somebody needs to come to us with a formal complaint, which nobody ever did.”

However, he did not completely rule out future interventions by BRTA.

“If a pressure group comes up with a list of specific allegations and the ministry requests our intervention, we surely will.”

[Writing in English by Adil Mahmood; editing by Biswadip Das]