Abstract

This study aimed to examine the situation, general management and performance of the international private transportation services of passengers between Thailand and the Laos PDR at the Thai-Laos Friendship Bridge. Other objectives were to analyze the market structure, competition behavior and the results of passenger transportation industry’s performance. This study also aimed to propose policy recommendations in order to enhance efficiency and performance development. Both primary and secondary data were obtained by interviewing two entrepreneurs chosen by purposive sampling and analyzing monthly data obtained from related public and private organizations over the period July 2007 to June 2010. Entrepreneurs provided international bus services from cities within Thailand (Khon Kaen and Udon Thani) and the Lao PDR, regular shuttle buses at the bridge, and private hire vans and buses. The results showed two companies operating in an oligopolistic market structure. The performance of both companies is nearly the same. The efficiency index measurement utilized for both companies were the same; however the results were slightly different. The levels of technology application within both organizations were also similar. Policy recommendations for efficiency and performance development are as follows. Entrepreneurs should increase the frequency of services as well as the number and variety of vehicles available to passengers and each vehicle should run at full capacity. Improving the services to be more convenient in terms of the speed, safety and efficiency is also necessary.

Highlights

  • Thailand and the Laos PDR have a very long border of 1,810 kilometers which has been involved with international economic transactions in terms of trade, investment, and tourism and passenger transportation over a long period

  • This study aims to examine and analyze the market structure and competition and market performance of passenger transportation between Thailand and Laos

  • Passenger transportation system between Thailand and Laos There are nine buses provide the service for passenger and there are only four air conditioned buses

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Summary

Introduction

Thailand and the Laos PDR have a very long border of 1,810 kilometers which has been involved with international economic transactions in terms of trade, investment, and tourism and passenger transportation over a long period. The transportation modes are by international bus, train and car private hire van. The trend of passenger transportation has recently increased because of the rise of tourists and investors as well as the supporting promotion policy of both countries for the passenger transportation business. The growth of this business can be attributed to the capacity of Nong Khai province with respect to tourist attractions and destinations, food, culture and natural environment. There are other reasons for the demand for cross-border travel, including kinship links and travel to other parts of Thailand

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