Bus owners stuck due to new transport rules
Friday April 19 2019
Commuter buses in Kigali. Bidding for new routes is expected in three months’ time, but the operators decry lack of clarity on the new terms and conditions, which had seen most unable to acquire fleet. PHOTO | FILE
Commuters travelling from outside Kigali will have to wait longer for convenient transport after operators put fleet deployment plans on hold due to uncertainty over their contracts, which expire in August.
This is largely because operators, majority of whom run 25-32-seater buses, are now required to upgrade to modern fleets based on new rules.
Bidding for new routes is expected in three months’ time, but the operators decry lack of clarity on the new terms and conditions, which had seen most unable to acquire fleet.
“We are currently stuck. Except paying workers and running daily operations, we are unable to design a business plan or embark on further investments because we don’t know what is in store going forward and the potential implications on the business,” said Nille Muneza, head of bus company Royal Express.
Operators have been serving a five-year contract, which was extended by 12 months last year pending the drafting and publication of new regulations expected to bring about a wide-range of changes including redesigning of public transport routes.
Rwanda Today found out that many routes have now become underserved as operators shy away from injecting more money into their transport businesses for fear of losses. Several bus companies stopped buying new fleet to cope with growing demand on the routes.
Official statistics show a general decline in licencing of public bus and minibus companies and co-operatives, motorcycles co-operatives, car rental companies, taxi cab companies and co-operatives.
The number of fleets operated by public bus and minibus companies and co-operatives for instance reduced from 3,617 in 2017 to 2,887 in December last year.
Operators told Rwanda Today the decline does not necessarily mean that the routes are underserved because there had been instances of minibuses being replaced by a high-capacity fleet.
Bishop Kihangire, director of transport at the Rwanda Federation of transport co-operatives (RFTC) said the uncertainties had seen most operators put the expansions plans on hold.
He voiced concern that operators risked not having enough time to prepare to bid for routes when there has been no communication whatsoever about the new terms to allow them to mobilise funding or place orders for the required fleet.
Rwanda Today had not heard from the transport regulator by press time but State Minister for Transport Jean de Dieu Uwihanganye had earlier told this paper that the government would proceed with routes tendering using the existing terms when extended contracts expire before the new regulations are finalised.
According to operators, bus companies like RFTC bought 70-seater buses this year in speculation based on expansion of road networks and increased service demand.