AuctionoftaxilicenseplatesonOct30
From: Shenzhen Daily
Updated: 2007-10-26 00:10
License plates for 2,000 red taxis in Shenzhen will be auctioned Oct. 30, Thursday"s Shenzhen Special Zone Daily reported.
A total of 51 taxi companies have been issued the notice to be invited to attend the auction, accounting for 70 percent of all the taxi companies in Shenzhen, according to the Daily report.
The municipal transport bureau announced in mid-September that 2,000 more red taxis would begin to ply on the city"s roads, and an auction of their license plates would be held in October.
The validity of each of the 2,000 license plates is 12 years.
Taxi license plates used to sell like hotcakes in Shenzhen and once cost up to 1 million yuan. However, 30 percent of the city"s taxi companies have opted not to attend Oct. 30 auction partly because the validity of the license plates has been reduced from 50 years to 12 years, thereby increasing the operating costs of taxi companies, the Daily report said, quoting industry insiders.
Besides, bidders have been required to buy at least 100 plates in one time at the auction Oct. 30, making it too costly for small companies.
Wang Jiang, associate professor at the economics school in Shenzhen University, said there are some other uncertainties involved in the issuance of the new license plates apart from the shortened validity period. Bidders should take into consideration all these factors and avoid pushing the price too high, Wang said.
The city has not issued any license plates for red taxis since 1993. With the rapid growth in its population, Shenzhen has experienced a shortage in the number of taxis, leading to an increase in the number of illegally operated taxis and buses.
Red taxis in Shenzhen can operate inside and outside the Special Economic Zone (SEZ) while yellow taxis operate only inside the SEZ and green taxis operate only in Bao"an and Longgang districts.
The number of taxis per person in Shenzhen is low compared to other parts of China, as there are only 10,305 taxis for the city"s 7.5 million permanent residents or 13.74 taxis for every 10,000 residents. The Ministry of Construction has recommended that cities should have 21 taxis for every 10,000 residents.