by Francis C. Nantha
Thursday July 31, 2008
KONSORTIUM Transnasional Berhad (KTB) executive director Tengku Hasmadi Tengku Hashim is on call 24 hours to handle issues involving passengers and staff for the four main public bus services the group operates — Transnasional Express, Plusliner, Nice Executive Express and Cityliner. He is among the representatives for inter-city bus services seeking an increase in fares to defray rising operating costs. This is so that enough buses can be deployed for the Hari Raya Puasa ‘balik kampung’ exodus.
Why is there an urgency to increase bus fares now?
Costs have risen tremendously over the past year and the recent fuel price hike have made matters worse. Our rationale for the increase is to ensure passengers do not get stranded if any bus operator runs out of funds in the interim or is unable to deliver their promises.
What costs have gone up?
Tyre prices have almost doubled, vehicle insurance premiums have risen 100 per cent, parts and maintenance costs have almost tripled and bus terminal rentals have risen between 30 and 200 per cent. Those in the business may think operating a bus is a cash-rich business but the hidden costs can be scary.
Hasn’t the income of bus operators also risen with more passengers taking buses?
Not really. There are now more than 200 stage bus operators, many plying the supposedly profitable routes. A lot of the new ones are finding it difficult to manage when the maintenance costs kick in after the initial two years of operations. Overall, there is just too much competition and results in an unhealthy industry.
How much of an increase has been requested?
We are suggesting for a 30 per cent surcharge, although a 60 per cent hike would be better. Countries like Indonesia raise fares every six months and there are also regular fare hikes in Singapore. It would be better if we have a similar system so that the public doesn’t get shocked by sharp increases every few years.
