This case is about JOINT VENTURES
PUBLICATION DATE: January 01, 1997
Sri Lanka Transport (B): The Railroad and the Port Case Solution
With about one-third of passengers taken by public companies and two-thirds by private, Sri Lanka had a mixed private and public bus system, in 1996. The private buses were not bringing in enough revenue from passenger fees to replace their buses and consequently, there were several criticisms of overcrowding and safety issues. The public buses were making do largely because they received free buses from the authorities. Improving bus service was critical for the country since about 80 percent of motorized passenger trips are taken by buses. The government was considering a variety of reforms including consolidation and fare increases of little private and public operators. This case can be used to discuss the politics and reasoning for regulation and privatization. And the case describes a 90 year history of privatizing, nationalizing, and re-privatizing the bus sector. HKS Case Number 1378.0.
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