KCC needs proper revenue assessment
Oct 08, 2002
I wish to draw the attention of KCC to the accumulated hidden losses in terminal and park revenues that the council either knowingly or otherwise brushes aside as unavoidable. Most tenderers and managers for our bus terminals and street parking do not ke
I wish to draw the attention of KCC to the accumulated hidden losses in terminal and park revenues that the council either knowingly or otherwise brushes aside as unavoidable. Most tenderers and managers for our bus terminals and street parking do not keep operation records.
Ordinary accounting procedures cannot compile realistic traffic revenues accruing to the terminal operators. Firstly, all the terminals for buses and taxis must be designed in conformity with existing and future traffic volumes and efficient flows in their vicinity. Unfortunately, KCC designs are the exact opposite of all this. Using the ‘traffic revenue analysis’ approach is absolutely necessary in compiling accurate revenue forecasts for KCC’s realistic reserve prices and for future applications in the tendering processes.
There are very few traffic experts in most developing countries. These experts comprehend and design studies for terminals in a manner that fixes all future revenue collection levels with very high accuracy instead of the current haphazard and shoddy analysis of the terminal and street parking charges that KCC uses to collect less than 20% of its legitimate takings.
The methodology takes into account the number of established trunk, city and distribution (feeder) routes; the policy headways if any and actual sample counts on representative days. Appropriate formuli are then used with the acquired data to give reliable utilisation and revenue capacities.
A census of facilities and other provisions with their cost is also taken in addition to the standard operating data; costs of the terminals, street parking etc.
In the past, the city engineer invited a firm to carry out this exercise, but before it started on the exercise, the park tenders were hurriedly awarded on vague reserve figures. This episode gave the tender to an operator that offered only sh150m per month and left out one that gave which would have given sh250m per month. Initial studies showed the council should have taken about sh300m per month but alas! This was not the case. KCC lacks experts, but at the same time it is not willing to solicit these rare services indeed at its own peril. This attitude is devastating to our city. The respective ministries should play their relevant roles in the city and make it look like a national capital as we do away with the current urban rogue characteristics.
The town council has been quoted as having offered more space for taxi parks. KCC should bear in mind that cure number one of the current traffic sclerosis of Kampala is the immediate introduction of large buses. Creation of new parks can provide only short-term and costly solutions.
M.K Tibabiganya
Transport/Traffic Consultant
Ordinary accounting procedures cannot compile realistic traffic revenues accruing to the terminal operators. Firstly, all the terminals for buses and taxis must be designed in conformity with existing and future traffic volumes and efficient flows in their vicinity. Unfortunately, KCC designs are the exact opposite of all this. Using the ‘traffic revenue analysis’ approach is absolutely necessary in compiling accurate revenue forecasts for KCC’s realistic reserve prices and for future applications in the tendering processes.
There are very few traffic experts in most developing countries. These experts comprehend and design studies for terminals in a manner that fixes all future revenue collection levels with very high accuracy instead of the current haphazard and shoddy analysis of the terminal and street parking charges that KCC uses to collect less than 20% of its legitimate takings.
The methodology takes into account the number of established trunk, city and distribution (feeder) routes; the policy headways if any and actual sample counts on representative days. Appropriate formuli are then used with the acquired data to give reliable utilisation and revenue capacities.
A census of facilities and other provisions with their cost is also taken in addition to the standard operating data; costs of the terminals, street parking etc.
In the past, the city engineer invited a firm to carry out this exercise, but before it started on the exercise, the park tenders were hurriedly awarded on vague reserve figures. This episode gave the tender to an operator that offered only sh150m per month and left out one that gave which would have given sh250m per month. Initial studies showed the council should have taken about sh300m per month but alas! This was not the case. KCC lacks experts, but at the same time it is not willing to solicit these rare services indeed at its own peril. This attitude is devastating to our city. The respective ministries should play their relevant roles in the city and make it look like a national capital as we do away with the current urban rogue characteristics.
The town council has been quoted as having offered more space for taxi parks. KCC should bear in mind that cure number one of the current traffic sclerosis of Kampala is the immediate introduction of large buses. Creation of new parks can provide only short-term and costly solutions.
M.K Tibabiganya
Transport/Traffic Consultant