Regulated transportation is a system that has been in use for the past decades. It encompasses the rules and regulations for enhancing sanity in the transport sector. Currently, regulation of interstate railroad and interstate pipeline have been actualized in various states such as the US, China, India, and New Zealand. At some point in time, almost the entire intercity transportation has often been subjected to the economic regulation. The initial guidelines regarding railroads falls under the 1887’s federal regulation. The main objective was that of curtailing abuse of the prevailing monopolistic powers. The strict regulations and guidelines enforced by Interstate Commerce Commission enhanced the overall control of subsequent rates, while at the same time providing a medium for fixed charges. Such a cognitive rule was meant to overcome the normal railroad act of charging lower rates. In this case, the regulators tried to come up with fair rates for railroads. The guidelines enhanced the control of this industry’s exit and entrance strategy.
Apart from the railroads, the next move involved regulation of the oil pipelines. The regulation emerged significant since the entire problem was inclined to extreme competition. The truckers were fully engaged in a form of “cutthroat” competition. It involved the aspect of charging rates that merely covered their operational costs. They often tried catering for this mishap through a formidable avoidance of maintenance practices on the trucks. The motor carrier rules and regulations attempted to stabilize the transport industry.
On the other hand, the year1938 saw the placement of domestic airlines under the new regulatory frameworks brought out by the Civil Aeronautics Board. These are the guidelines that regulated service, routes, exit and entry, as well as the subsequent rates. In addition, some segments regarding inland waterways were also regulated by 1940 (Johnson, Emory & Metre, 78). In 1948, the antitrust prosecution issued a distinct immunity to the carrier rate bureau.
During the post-World War era, it was deemed apparent that the transport rules and regulations were not actually working well. The segments of inland waterways and the truck industry that were unregulated tremendously grew, hence taking a considerable traffic from subsequent railroads. In some of the transport models, there were strong workers’ unions that allowed the management to award the union members via a strict regulatory system. In some of the markets whereby the regulatory bodies came up with constant rates, competition greatly increased amongst the carriers. By around 1970, there are various transportation laws that were formulated across the entire globe (Defense Transportation Regulation, 47). These are the kinds of laws that removed various economic regulation restraints from the Country’s carriers.
The airlines, railroads, household goods movers, and the intercity buses were included in this deregulation. It can thus be exclaimed that deregulation has been responsible for posing massive challenges for the entire carriers. Prior the aspect of deregulation, there was a distinct instability for the individual carriers and subsequent industries. It has enhanced the negative aspects of bankruptcy and the vigor of labor carriers. As a result, they are associated with a decline in passenger carriage and freight charges. An additional element regarding the economic regulation revolves around the aspect of enhancing esteemed government regulations on the transport industry. The act of testing the transportation operators for detecting the possibility of drug use remains as a contentious matter. The states also go to the extent of limiting the weights, axle spacings, and lengths of huge and heavy trucks.
]The way economic and transport regulations are handled varies from one nation to the other. The common framework is inclined to the government’s ownership of airlines and railroads, as well as the restriction of the other carriers in case they tend to capture traffic from the ultimate government operations. Regulation of global airline operations are based on strict treaties acting between the countries exchanging the airline services. Formulation of actual rates of fares is often done by the International Air Transport Association (Loewenstein & Andreas, 85). A cartel regarded as the conferences also regulate the level of rates charged by the ocean liners. In this case, every conference comprises the member lines serving specific routes. The only challenge influencing the transportation regulatory systems is the ideological variations between nations with a common railroad, airline, or other mode of transport.
The significance and variation of transport regulations can be ascertained through a critical analysis of various nation states. For our case; China, New Zealand, and India sets basis for this study. There are very significant transport regulations and guidelines in Mainland China. Such kind of regulation is enhanced by an agency established from the Ministry of Communications, the Civil Aviation Administration, as well as the Ministry of Railways of China. The above-mentioned authorities guiding the transport industry in China have no clear jurisdiction in Macau and Hong Kong. For instance; the regulation of Hong Kong’s transport is done by Hong Kong’s Transport Department, while the regulation of Macau’s transport is done by the Land, Transport and Public Works Bureau of Macau. These regulatory bodies enhance greater significance in China’s transport sector due to the perspective of ensuring appropriate adherence to the stipulated rules.
On the other hand, India’s transport industry is bound by distinct rules and regulations that brings about sanity. Over the years, the transport ministry has enacted and passed various acts for maintaining law and order in the country’s Road Transport. These can be taken to include the Road Transport Corporations Act of 1950, the National Highways Act of1956, the Motor Vehicles Act of 1988, as well as the National Highways Authority of 1988 (Transportation System Management, 56). On this basis, it can be asserted that the Indian government has provided many incentives for foreign and private sector. A hundred percent of the country’s FDI is permitted in land transport with the aim of promoting the establishment of highway bridges, vehicular tunnels, and toll roads; as well as the transportation services such as cargo handling; and construction of bridges and roads.
Finally, New Zealand is endowed with adequate transport regulations. The ministry of transport is often empowered by the legislation to formulate transport rules on various issues involving land civil aviation, transport, marine protection, and maritime safety issues. To some extent, the Land Transport Act of 1998, the Maritime Transport Act of 1994, and the Civil Aviation Act of 1990 greatly vary (Iles & Richard, 39). The variation is based on the subject matters that should be considered when formulating a regulation. However, the transport rules generally govern the maintenance and construction of vessels, aircraft, and vehicles. It also encompasses their operational standards, certification and licensing of the operators. The services under concern may include the establishment of navigation routes and enhancement of air traffic control. In this case, New Zealand’s transport regulations obtains its immense importance via the prescription of fees, penalties, and offences that are often associated to the execution of transport rules.
- Defense Transportation Regulation: Part Vi, Management and Control of Intermodal Containers and System 463-L Equipment. Washington, D.C.: U.S. Dept. of Defense, 2002. Internet resource.
- Iles, Richard. Public Transport in Developing Countries. Amsterdam: Elsevier, 2005. Internet resource.
- Johnson, Emory R, and Metre T. W. Van. Principles of Railroad Transportation. New York: D. Appleton, 2006. Internet resource.
- Loewenstein, Andreas. European Air Law: Towards a New System of International Air Transport Regulation. Baden-Baden: Nomos, 1991. Print.
- Transportation System Management: Proceedings of a Conference Held November 7-10, 1976. Washington: National Academy of Sciences, 2007. Print.
