Regulating Interstate Passenger Transport By Means Of Independent Agencies: Challenges To The Institutional Development Of Road Passenger Transport In Brazil

Abstract

The aim of this paper is to analyse the present situation regarding interstate road passenger transportation in Brazil. The emphasis is put in the changing institutional context of the industry, once Federal Government recently achieved the Congress approval for an administrative reform that maintains the public service concept in approaching transportation service but introduces a regulatory agency with duties related to market regulation and services monitoring. Beginning with a historical approach to long distance passenger transport in Brazil, the current situation of the industry is described and its development under the new institutional and regulatory arrangements is discussed. Conclusions highlight the political risks that public transport policy and planning come to be captured by colluded industry with severe negative effects on economical efficiency and public benefits.