Business / Companies
Govt to engage India to recapitalise ZUPCO
28 Oct 2015 at 07:32hrs | Views
THE DEPUTY MINISTER OF LOCAL GOVERNMENT, PUBLIC WORKS AND NATIONAL HOUSING Christopher Peter Chingosho has said the government is engaging the Indian Bank to recapitalise the struggling Zimbabwe United Passengers Company (ZUPCO).
Chingosho made the remarks during senate.
"Having said that, the Ministry intends to resolve the issue of random fare increase and other problems such as unruly crew behaviour through the implementation of a more efficient and cost effective mass bus transit system to be operated in urban areas by ZUPCO and other private operators using conventional buses," he said.
"To that end, efforts to engage the Exim Bank in India to sponsor the recapitalisation of ZUPCO is underway. In addition, private operators are engaging bus suppliers to enter into partnership to acquire buses for urban operators." He said overall, it may please the House that my Ministry is committed to the provision of a safe, reliable and affordable urban transport service and will continue to monitor the goings on in the sector.
"The Ministry feels that it is not the right time to gazette fares which have been deregulated since the introduction of the multi-currency system in 2009. The Government is actively seeking investment in the urban public transport sector. Any form of control tends to deter investors," he said.
"Gazetting of fares provides for fares according to kilometer bands for example, 0-10km. From previous experience, operators tend to apply a flat fare relating to the highest fare which would effectively disadvantage the commuter."
Chingosho said in the advent that urban tollgates get implemented (being planned for by the Ministry of Transport and Infrastructural Development), fares will increase as operators transfer all costs to the passenger/service consumer.
"Gazetting of fares will not necessarily translate to compliance on the ground since the times randomly affected by fare cheating are outside the normal working hours when enforcement agents are not usually on the ground," he said.
Chingosho made the remarks during senate.
"Having said that, the Ministry intends to resolve the issue of random fare increase and other problems such as unruly crew behaviour through the implementation of a more efficient and cost effective mass bus transit system to be operated in urban areas by ZUPCO and other private operators using conventional buses," he said.
"To that end, efforts to engage the Exim Bank in India to sponsor the recapitalisation of ZUPCO is underway. In addition, private operators are engaging bus suppliers to enter into partnership to acquire buses for urban operators." He said overall, it may please the House that my Ministry is committed to the provision of a safe, reliable and affordable urban transport service and will continue to monitor the goings on in the sector.
"Gazetting of fares provides for fares according to kilometer bands for example, 0-10km. From previous experience, operators tend to apply a flat fare relating to the highest fare which would effectively disadvantage the commuter."
Chingosho said in the advent that urban tollgates get implemented (being planned for by the Ministry of Transport and Infrastructural Development), fares will increase as operators transfer all costs to the passenger/service consumer.
"Gazetting of fares will not necessarily translate to compliance on the ground since the times randomly affected by fare cheating are outside the normal working hours when enforcement agents are not usually on the ground," he said.
Source - Byo24News
