Belgium Seeks Co -ordination
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0 NE of the most striking features of Belgian road passenger transport is that 80 per cent, of the concessions for regular bus routes are held by the two State-controlled railway concerns, but, with a few exceptions, they do nal operate the routes themselves. The actual transport is "farmed out" to private companies which have to pay substantial sums to the railways.
What has been said in the first article published in the issue of "The Commercial Motor" for July 21, concerning the Government's protection of the railways against competition by road haulage, can also be applied to passenger transport. The highly discriminatory policy has led to a crisis and it is not surprising that Belgium has only one-third of the number of buses and coaches that neighbouring Holland has.
In 1949, Belgium, according to official figures, had 2.547 buses and coaches, against 2,156 in 1938, and 2,239 in 1948. The bus owners' association at present estimates the number of vehicles at 3,500, including approximately 2,000 coaches, operated by about 1,000 companies, employing 7,000 to 8,000 people, a small number indeed. Nor is it surprising that in present circumstances the length of the entire network of regular bus routes is only 5,400 miles, to which another 11,800 miles should he added for special services for
workers, sehoblchildren, and so on.the regular routes. 2,455 miles are in the hands of the ational Railways and 2,420 miles in those of the National Local Railways. Seventy miles are licensed to various small tramway companies, and private owners have a network of only 455 miles.
Thirty years ago private enterprise established the first bus routes. They rapidly expanded, and soon the railuays, seeing part of their traffic going to a young but promising competitor, asked the Government for protective measures.
n2 In 1928, a strict regulation, highly favouring the railways, came into force. Licences for bus routes were no longer issued to private companies but, with a few exceptions, to the existing transport undertakings "—the railways and local tramways. These got 86 per cent. of the licensed rsutes, the railways alone accounting for 80 per cent.
The licensing system seems to be surprisingly autocratic for a democracy. Licences are issued by the Ministry of Transport after studying the need and financial possibilities. Provincial and municipal authorities—who have a financiai interest in the Belgian National Local Railways—are consulted. There is no appeal against the Ministry's decisions.
Concessions are issued to the railways, tramways or private companies. In the first case the railways let the work out on lease to private companies; in the other cases the private operators usually have to pay the railways "compensation for competition." The same applies to special transport. The lease contract forbids lessors to make direct contact with the Ministry of Transport or other authority. The increase in tariffs, for instance, was not negotiated between the operators and the Government, but between the lessors and the railways.
The National Railways have 129 lessees for regular bus services, the National Local Railways 81, and the small tramway companies five. For special transport, the National Railways have 149 lessees and the National Local Railways 209. The National Railways do not own vehicles, but the Local Railways operate ban' their network with their
own buses. In 1949, regular buses ran 40,185,000 kilometres, covering 1,004.000,000 passenger-kilometres. The concession-holding railways take most of the profits. Of his gross takings, the lessor has to pay at least 10 per cent compensation to the railways, which also receive a rent of 4k per cent. The State takes 4-i per cent. transport
tax, per cent. tax on the lease contract, 10 per cent. purchase tax on the vehicles, and a tax on fuel and oil amounting to an average of 100,000 francs per vehicle per year. In this way, operators have to hand over more than 40 per cent, of their gross takings.
To handicap and restrict private enterprise even more, licence holders pay twice-as much transport tax as the local railways' lessees. The transport tax often amounts to 50,000 francs per vehicle per year.
Tariffs are hardly meeting the operators' rising costs. Before the war, the minimum was 25 to 35 centirnes per passenger/kilometre. This miniinum was increased to 50 centimes just after the war, and to 70 centimes in August, 1949. Of the latter increase of 40 per cent., the railways take two-thirds, leaving operators not even enough to pay for the increase in wages and social insurance.
Largely as a result of the rise in tariffs, most operators are worse off than before last year's incraase, as the average number of passengers decreased by 20 per cent, and in some regions that of weekly ticket-holders dropped by 30 per cent. Instead of making a profit, bus owners often work at a loss.
Lack of unity has weakened the bus owners struggle for better conditions; everybody fights for himself in the face of fierce competition. As in goods haulage, passenger vehicle operators have gradually realized the necessity of organizing, and at the moment the majority of the bus and coach owners belong to the Federation Nationale des Exploitants cl'Autobus et d'Autocars de Belgique.
It is to he hoped that this federation will be able to produce the "statistics necessary for an appreciation of the present situation and of the proportions of traffic carried by road and rail.
The federation's programme for the future has as its most important item a change of the concession system. Licences should be issued directly to the bus owners, the federation
says, and be valid for at least 10 years. At present they are issued for an indefinite period, forcing the owners to take great risks when investing money. The federation is asking for better basic tariffs with a severe control and a reduction of taxes. It proposes to set up a compensation fund that would guarantee a reasonable existence to all owners.
The number of companies engaged in passenger transport is, the federation admits, much too high. By gradual co-ordination and co-operation, this number would have to be reduced, the ultimate aim being to have regional companies as there are already in Holland.
The federation's thoughts with regard to the railways' position are rather vague. One thing, however, is clear: the railways will have to have a finger in the pie and this could be achieved by constituting a consultative • council on which the two railway. concerns and the federation would be represented. This council would advise the Minister of Transport in all matters,
Restrictions on coach trips, although
they are manifold, are not as severe as those on regular bus routes. It is quite understandable, therefore, that this section of road passenger transport has attracted a large number of companies, resulting in cut-throat competition.
To obtain a licence, coach owners have to put down a deposit of 20,000 francs per vehicle and to comply with certain standards. Every trip has to be registered on a special form.
Licence holders are compelled to load the majority of their passengers on each trip within 25 kilometres of the com pany's base. The severest handicap, however, is that coaches may never take the direct route to their destinations; they have to make a wide detour and this, operators say, leads to waste of material and fuel.
The unrestricted import of vehicles has contributed to the present overcapacity and low tariffs. Rates for coach tops are now averaging between 25 and 70 centimes per seatikilometrc and these are thought to be far too low in some quarters.
The vehicles are good and mostly of American make. Belgian coaches are comfortable, but bodywork, generally, is rather too ornate.
Many coach owners run international tours and in May, for instance, hundreds of Belgian coaches made Sunday trips to the Dutch bulb-growing district. Numerous long-distance international tours to most European countries are scheduled for operation.
The federation is trying to improve conditions for coach operation, its chief aims being a removal of the compulsory detour, and to arrange for passengers to board coaches
within 25 kilometres of the base. It is strongly urging the compulsory issue of special tickets for coach trips by a central bureau. This would be the only way, the federation says, to introduce uniform basic tariffs that will give owners a margin of profit.