Entry to and exit from the passenger ferry market
To take advantage of market principles in economic activities, it is important to liberalize entry to and exit from the market. The passenger ferry market should shift from the current licensing system to a system in which any prospective operator that meets established criteria are allowed to enter the market. The entry criteria should be kept to the minimum, such as those concerning safety and competence to conduct the business. Businesses should not have to obtain permission to withdraw from the market. A simple report to the authorities should be sufficient. These changes have been implemented in the passenger ferry industry, as in the railway and trucking industries, with the elimination of the supply-demand regulation defined in December 1996.
Standard terms and conditions contract of carriage for passenger ferries
For the existence of asymmetric information, in many cases users lack information on the service quality offered by service providers. The standard terms and conditions contract of carriage is a uniform contract system that would allow many unspecified persons to establish a contractual relationship with the service provider. The required sections in the contract include the definition of areas to be served, the obligation of the service provider to accept transportation requests, fares and fees, obligations of the passengers and automobile drivers, liabilities, and transport connections.
