Road Passenger Transport

1. Definition and Legal Basis

Road passenger transport refers to commercial business activities that utilise passenger vehicles to transport passengers across urban and rural roads, providing mobility services to the general public. Under the "Regulations of the People's Republic of China on Road Transport", road passenger transport operations and road freight transport operations jointly constitute the two core pillars of commercial road transport.

2. Main Operational Forms

Pursuant to the "Provisions on the Administration of Road Passenger Transport and Passenger Terminals", road passenger transport is categorised into three fundamental formats:

Transport Type	Core Characteristics	Operating Mode
Scheduled Bus/Coach Transport	Operates strictly on fixed routes, timetables, designated stops, and scheduled trips	Open ticketing to the general public; the most traditional operational format for long-distance express coaches
Chartered Passenger Transport	Tailored for group passenger travel, operating along routes pre-agreed with clients	Charter fees are paid as a lump sum by the client, with no picking up of roadside walk-in passengers en route
Tour Bus/Coach Transport	At least one end of the route is located at a tourist attraction or scenic spot	Fixed-route tour services are regulated as scheduled coaches, whilst non-fixed routes follow chartered transport regulations

3. Route Classification and Operating Conditions

Scheduled coach service routes are classified into four tiers based on operating territories: Category 1 covers inter-provincial routes; Category 2 covers intra-provincial routes across prefecture-level cities; Category 3 covers inter-county routes within a prefecture-level city; Category 4 covers routes within a single county-level jurisdiction or between adjoining counties.

Specific fleet ownership thresholds apply to operators across different route categories: For Category 1 routes, operators must own at least 100 commercial passenger vehicles (including at least 30 high-grade coaches) or at least 40 high-grade coaches; Category 2 routes require at least 50 commercial passenger vehicles (including at least 15 mid-to-high-grade coaches) or at least 20 high-grade coaches; Category 3 routes require at least 10 commercial passenger vehicles; Category 4 routes require at least 1 commercial passenger vehicle.

4. Business Licensing and Professional Qualifications

Operating a road passenger transport business requires obtaining a valid operating permit. Key application criteria include: possessing roadworthy vehicles that suit operational requirements and have passed official inspections; employing qualified drivers who satisfy regulatory standards; and maintaining a sound occupational safety management system. Applicants for scheduled route services must also submit clear route and terminal plans.

Commercial passenger drivers must satisfy the following conditions: holding the appropriate class of motor vehicle driving licence; being aged 60 or below; having no record of major-or-above accountable traffic accidents within the past 3 years; and passing statutory examinations on passenger transport regulations, vehicle maintenance, and passenger first-aid knowledge. Operating permits for scheduled passenger routes are valid for 4 to 8 years, and a re-application must be lodged upon expiry.

5. Operational Standards

Upon securing licensing, scheduled route operators must maintain continuous service to the public and are strictly prohibited from suspending, terminating, or transferring route operations without prior authorisation. Chartered passenger transport must operate strictly according to the agreed origin, destination, and routing. Operators shall not force passengers to board, abandon passengers mid-trip, extort passengers, or substitute transport vehicles without approval. Passengers must hold valid tickets for travel and are strictly prohibited from carrying hazardous goods or other contraband stipulated by national regulations. Operating road passenger transport services without a valid licence will result in statutory enforcement, including mandatory cessation of operations and administrative fines.