Abstract
M.Com. (Transport Economics)
The relative importance of road transportation cannot be
over-emphasised. As at 30 June 1981 the number of licenced
commercial vehicles registered in South Africa was 855 450.
Freight transport for reward during 1975 was conducted by
5 588 differen t op era tors throughout South Africa. During
1981 a total mass of 239 576 000 metric tons was transported
by professional freight carriers. The total revenue
kilometres travelled amounted to 646 332 000 kilometres.
Control over road transportation in South Africa is carried
out in accordance to the regulations as stipulated in the
Road Transportation Act (Act 74 of 1977) and the Road
Traffic Ordinance and Regulations (Number 21 of 1966). The
aim of the Road Transportation Act is to regulate, in an
orderly manner, the economic aspects related to road
transport and to ensure that the misallocation of resources
are restricted to a minimum.
An analysis of the nature and magnitude of regulation in
South Africa indicates that during 1983/84 permits were
issued to approximately 12 percent of all registered
commercial vehicles.
The statistics clearly indicate that economic regulation has
a meaningful affect on the road transportation industry.
The aim of this study is to research the practical
implications of economic regulation practices in
South Africa. A further aim of the study is to determine to
what extent decisions are based on meaningful information
and whether it is in line with acceptable theoretical
principles. The reason for a research and analysis of this
nature is related to the fact that economic regulation leads
to high administrative costs for the responsible
authorities.