Klao Bell, staff reporterThe Jamaica Urban Transit Company (JUTC) is losing some $1 million a day, Sterling Soares, JUTC president has confirmed.
The company expected revenue increases of 70-80 per cent after bus fares were increased by 100 per cent in June 2001. But decreased ridership on the buses and the seeming untameable operations of illegal taxi and minibus operators have caused the bus company to veer dangerously off the path of profitability.
"There has been a decline in ridership by about 22 per cent on some routes. There has also been an increase in the number of illegal and legal taxi operators whose turnaround time is faster than ours," said Mr. Soares.
He added that, "since November a lot of the older buses that should have been off the road are back and robot operators licensed to travel from Kingston to rural parishes are instead operating in Kingston during the days...we estimate that we are losing $1 million per day to illegal operators."
Commuters who use illegal taxis and minibuses say they travel faster than the JUTC buses. In many cases passengers have to pay more, but are not put off because, "them no stop-stop like the bus them" and "them drop yu right a yu gate."
Major Desmond Brown, managing director of Metropolitan Management Transport Holdings Limited (MMTH), which owns JUTC, feels that the Transport Authority should do more to rid the routes of illegal taxi operators.
"We recognise that Transport Authority has their limitations but they could do more," Major Brown said.
Answers to questions sent to Joan Fletcher, company secretary at Transport Authority, last week Wednesday, were not received up to press time.
Major Brown, referring to the losses facing the company said, "we can't continue to operate like this...we're in a serious financial bind."
However, neither Major Brown nor Mr. Soares would answer questions about JUTC's revenue or total loss since June 2001. Mr. Soares explained that it would be improper to make that information public before Robert Pickersgill, Minister of Transport, was updated.
Mr. Pickersgill confirmed to The Sunday Gleaner on Wednesday that he was awaiting reports on JUTC's performance.
However, Mr. Soares was willing to reveal that the company was losing a lot of money on its eastern routes.
"We're having a hard time with illegal operators on successful routes, we have even seen decline on some of our most successful routes. The loss is more pronounced on the eastern routes, Port Royal, Bull Bay, Harbour View," Mr. Soares said.
One of the conditions of the fare increase was that JUTC was to find ways to improve service and cut costs. Mr. Soares said the company continues to make an effort in both areas, but that he will continue to focus on finding cost cutting measures.
