New Straits Times
KUALA LUMPUR: Big express bus companies share a common problem with their smaller and newer counterparts: They are struggling to cope with rising costs.
This has taken a toll on the smaller operators to the extent that some of them are trying to sell their business.
KTB and the Sri Maju Group, another established player, have admitted that they are losing money from their bus operations.
Sri Maju operates the Sri Maju/Jasaramai fleet of express buses that ply the North-South Expressway.
The last express bus fare increase was in 2005 when it went up by 20 per cent.
According to a Sri Maju spokes- man, funds were constantly being channelled by directors to keep the company going.
In the case of KTB, they had come up with innovative ideas to increase revenue.
Tengku Hasmadi said higher income was being generated by increasing passenger volume and leasing the buses for charter during slow periods.
"We have had to go taller and bigger just to accommodate more passengers, from the normal 38 to 59."
He said a fare hike of about 20 per cent was timely.
"The last increase was in 2005, but diesel prices have gone up three-fold since then. It is inevitable that some of the smaller operators are not able to sustain given the rising costs. This would lead them to cut corners."
The Sri Maju spokeswoman said the fact that toll charges along the North-South Expressway were expected to increase next year would put more pressure on bus companies.
Tengku Hasmadi said the government should extend more help to express bus operators.
There was also a need to revise up the life span of express buses from the current 10 years imposed by the Commercial Vehicle Licensing Board.
The other issue he highlighted was the diesel subsidy of RM1.43 sen per litre, which he said only applied to about one-third of the volume used by a company.
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