Experts advise on the creation of a vibrant and cost-effective urban public transport

By Joel Ogwang                                                                         

FOLLOWING the confiscation, by the Uganda Revenue Authority (URA), of 98 buses belonging to the Pioneer Easy Bus Ltd (PEBL) over non- remittance of sh8b in taxes, the establishment of a vibrant urban public transport system in Kampala city is far from being a reality.

Among others, PEBL owes Kampala Capital City Authority (KCCA) in excess of sh200m accruing from unpaid monthly dues of sh300, 000 per bus since March 12 when 100 buses hit city roads. PEBL paid KCCA only sh30m over a period of nearly 12-months.

Mukono and Kira local governments are also demanding a share of the remittances that KCCA is demanding.

However, the firm’s troubles supersede debts. Prior to the interception of its buses currently grounded at the Mandela national stadium parking yard, PEBL experienced internal ‘revolts’, with workers downing their tools over none-pay, resignation of top managers, loss-making inefficient revenue collection system, traffic jams accounting for 1, 000 hours of lost time a day, failure to win a tax incentive and high operational costs, among others, forced the closure of their operation from the city center to Bweyogerere, Mukono, Kajjansi, Gayaza and Luzira.

The failure, in part, by KCCA to dedicate lanes meant PEBL was exposed to competition from the uncouth commuter taxis dominating city transport service, a scenario that crippled her operation and revenue earnings.

For example, to break even, said John Masanda, one of the directors, each of the 61-seater capacity bus is supposed to carry 1, 000 passengers and earning sh800, 000 daily, but is recouping only sh400, 000.

With all these factors conspiring against what most commuters viewed as a lasting solution to their transport woes, only the end was in sight for PEBL, perhaps following the high mortality of businesses trend in Uganda where more than half that start close before celebrating their first birthdays.

In most countries, public transport is done as a partnership between the government and the private sector to ensure accountability and quality service provision.

For this, it is more than just a business venture, but trades on a common-good principle, often enjoying subsidised fuel, terminals, tax holidays and protection from competition to keep their rates low.

To this end, experts have variously advised on key benchmarks to be undertaken to establish a localised, vibrant and cost-effective urban transport system in Uganda.

Because it is an expensive venture, Augustus Nuwagaba, a development consultant, says public transport should be run under the auspices of a PPP.

“The government can’t do good business,” he says. “But, under a PPP, can waive taxes and maintain road infrastructure to ensure relatively cheaper transport fares. You can’t subject public transport to full private ownership or market price because service providers will pass this cost to end users who will suffer high costs.”

However, works state minister, Eng. John Byabagambi reckons the government shouldn’t enter a Private-Public Partnership (PPP) with PEBL since the firm’s management structure is not well established.

“I wouldn’t allow the government to engage in PPP, especially in a business of this nature because it (government) is not a good businessman,” he says.

“Public transport investment is a risky business yet PEBL is not run on business principles and has intrigue, with some shareholders more powerful than others.”

Byabagambi says PEBL’s predicament is akin to the very reasons that led to the collapse of the government-owned Uganda Transport Company (UTC) in the 1990s.

Nonetheless, he says incentives like tax waivers, support to ensure PEBL reviews its operation and more investment in the road infrastructure, would go a long way in supporting the bus operator.

“I strongly support a subsidy,” says the minister. “We (government) subsidised UMEME to the tune of sh2 trillions over a period of five years. Why can’t PEBL get a subsidy? If we don’t, we risk letting UTODA hold the country at ransom.”

Merion Tibabinganya, a transport consultant, argues that Passenger Service Vans (PSVs) should be given a monopoly over routes, with their procurement done openly to get the best operator.

This would get rid of speculators whose intention is to rip commuters, akin to UTODA. As well, it should be regulated and governed by ministry of transport and not KCCA.

 “The government should fix rote rates for the benefit of road users, just like the London Transport, and employ professionals and not politicians,” Tibabinganya says.

“It should also follow a schedule even when carrying empty seats, with stop-overs specified within a distance of 300- 400m for people to alight and board.”

Where lanes are less than three, there should be no parking for other motorist, with only buses allowed to stop, adds Tibabiganya.

Charles Ocici, the Enterprise Uganda (EU) executive director, says unless a Kampala public transport master plan is instituted, any other move is bound to fail.

“The government doesn’t need to invest in buses, but infrastructure. It takes 3-4 years to install lanes but a dedicated lane on Uganda roads, under the current setting, is inconceivable,” he says.

“Lanes must be worked out according to the master pan. Contractual obligations (between the government and service providers) must also be clear, with anyone who breaches any agreement punished.”