BUSINESS FORUM: Public transport value underestimated

21 Jun, 2015 - 00:06 0 Views

The Sunday Mail

THE value of a public transport system cannot be overemphasized. Apart from providing convenience to the commuting public, it is also at the heart of improving social welfare.

However, providing an equitable and efficient public transport system to meet an ever-increasing demand for the service, especially in an environment plagued by limited resources, is quite a huge challenge.

Privately-owned commuter omnibuses, which routinely carry people to and from various destinations, have evolved as the major mass transport system.

They are now the lifeblood of local economy where public transport infrastructure is concerned.

It is important to note that from the 1980s to the early 1990s, the Zimbabwe United Public Company (ZUPCO) — a parastatal — was the most dominant force in this market.

Unofficial estimates indicate that by 1993, ZUPCO was operating 1 200 buses on 426 routes.

However, this has changed.

Regrettably the integral commuter omnibuses have largely been a nuisance.

Many lives have been lost due to the reckless behaviour of those responsible for this mode of transport.

It is unsurprising that operators of these vehicles often play cat and mouse with both local authorities and law enforcement agents.

Local roads have literally become jungles: vehicles carrying commuters often speed, drive towards oncoming traffic, on pavements, overload and charge extortionate prices at times.

All this has connotations on the social and economic fabric of the nation.

Most worryingly, it seems society is slowly accepting some of these abominable practices, embracing them as a lifestyle.

And the results have been devastating: Statistics released by the Traffic Safety Council of Zimbabwe (TSCZ) in 2012 paint a grim picture.

The year 2011 was arguably the country’s bloodiest year as it recorded 2 000 road accidents in which 1 992 people died and 16 944 were injured.

The report shows that each year since 2006, road accident fatalities had increased by an average of 1 037 deaths, with media reports indicating that about five people die on Zimbabwe’s roads daily.

Obviously there is urgent need to reverse this trend.

It is encouraging to note that Government is currently grappling with the mechanics of implementing a mass public transport system.

Yes, liberalisation of the public transport system is necessary in order to promote efficiency within the transport system, but our own local experiences show without a doubt that the existence of one without a competing public sector can lead to a dysfunctional market.

The aspirations of the private sector, which is largely driven by profits, is often not in sync with Government’s aspirations, and this can negatively impact on “economic governance”.

During the hyper-inflationary period, unilateral fare hikes became a feeding trough to the runaway trend.

The effective use of well-regulated public entities by China is instructive.

Parastatals such as ZUPCO can be used to regulate the market.

But in recent instances where the public transporter tried to re-enter the market, especially in urban routes, it has often found the going tough because of the structural rigidities of its operating model.

Why the company still sticks to operating buses in urban routes where commuters are likely to opt for smaller omnibuses that can load passengers faster and transport them timeously still boggles the mind.

Commuters are time-conscious.

Suffice to say, there is need for ZUPCO to undergo a radical and aggressive review of its model.

It sounds glib but yes, the public transporter has to think outside the box.

Can a public transport fail where private players are thriving? Something is definitely wrong.

The commuter omnibus business is a multi-million dollar industry, it is just a matter of coming up with the suitable strategy to get that money.

The transport industry plays a critical role in people’s lives. Better ways to manage the industry can be formulated.

Considering the size of this industry, one cannot help wondering just how much accrues to the national fiscus.

More work from the relevant authorities is needed to ensure that adequate systems are put in place to get maximum value from this industry and also to enhance efficiency on operations.

It is food for thought.

 

Taurai Changwa is an Articled Accountant and ACCA finalist. He is managing director of SAFIC Consultancy. He writes in his personal capacity and can be contacted at [email protected] or on facebook page SAFIC Consultancy or whatsapp on 0772374784.

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