DAWN - Features; January 30, 2007

Published January 30, 2007

Public sector key to affordable transport

By Shamsuddin Abro


KARACHI with a population of more than 15 million and a six per cent increase per annum, direly needs an effective public transport system. The people have a right to a comfortable, fast, cheap and efficient mode of transport, that is noise and air pollution free. Sadly, in Karachi, transport problems have aggravated and the lack of interest on the part of successive governments have seen things go from bad to worse.

Before August 1947, the public transport system in Karachi included local train services, a tramway also covered the entire old city. There were some roofless buses owned by the East India Tramway Company. This was purchased by Mohammad Alley Tramway Company which went bankrupt in the mid seventies as it was not allowed to increase fares. A few buses of Mohammad Alley Tramway Co. were sold to A. M. Qureshi Transport Company. Some World War II (Chevrolet & Ford) trucks were converted in to by Riasatullah Bus Service, Watan Transport, Gama Transport, Huq Transport etc. All these buses disappeared after a few years due to the irrational fare structure and poor maintenance.

Public Transport with the name, Sindh Road Transport, was established in Sindh on June 1, 1948 at Karachi It was administered by a Regional Transport Authority. On June 16, 1948, it was renamed Government Commercial Transport (GCT) and started operations with 20 buses. A few transporters particularly Ehsan Bus Service and Farooq Transport introduced Thames, Leyland, single and double decker buses in Karachi. These also disappeared after a few years. At this point it was presumed the main problem in the transport set up was improper organisational administrative structure. The government created “Karachi Transport Syndicate”, in 1957 which had a good earning record, but with the shifting of its head office to Lahore during One-Unit its operations closed.

In 1959 the Karachi Road Transport Corporation (KRTC) was created as a limited company controlled by the government. It went bankrupt in 1964 due to increasing fuel prices and operating cost, while the fares were kept below the commercial cost.

The government made yet another experiment in 1964 when it established West Pakistan Road Transport Board (later corporation), with its headquarters at Lahore. The Karachi operation was handled by an auxiliary organisation called Karachi Omni Bus Service. On disintegration of One Unit, the (West Pakistan) Road Transport Corporation was also wound up in 1970 and the SRTC created. Proportionate staff, assets and liabilities were transferred to it. In February 1977, the SRTC was bifurcated and Karachi Transport Corporation (KTC) established under federal government control. In 1982, the KTC was given to Sindh. The SRTC closed in late 1990s due to recurring financial losses while the KTC was closed in 1997.

Minibuses were introduced after abolishing the tramway system, which was the earliest rail mass transit concept. Minibuses appeared due to scarcity of large sized buses in public and private sector. The “minibuses” were soon labelled “yellow devils” Due to their rash driving and disregard for rules, they caused an increase in the number of fatal accidents. The introduction of small coaches under Prime Minister’s Scheme in 1992 created similar problems.

The government from time to time constituted commissions, working groups and panels of experts of local as well as foreign consultants to recommend measures for improvement. Unfortunately none of the recommendation were implemented. As a result the problem has assumed a gargantutan proportion today.

To improve the transport sector, the government should declare road transport “an industry” and extend all benefits given to industrial units such as tax holiday and other benefits. These transport companies/ corporations should standardize, arrange and operate fleets on modern, management principles and scientific lines. All this is only possible when the need is recognised to keep the fares affordable for low income commuters either through direct or indirect subsidy.

The public transport system in Karachi today mainly comprises buses, mini buses, coaches, taxies, rickshaws and contract carriers. There are about 376 classified routes on paper, of which only 232 are operated. The transport requirement is based on establishing a relationship between the population and number of buses. On this basis the number of buses required for Karachi is more than 7,000 but only 2000 buses are currently plying on its roads.

In other words more than half the population is without proper transport facilities, the result commuters hanging from footboards and travelling on roofs resulting in accidents, fatalities and injuries.

A Karachi Public Transport Society (KPTS) was set up as an GO/NGO on the directives of federal government to fill the vacuum caused by KTC’s closure. Private operators were allocated former KTC routes with deregulated fares. Fare concessions to students were discontinued in the KPTS buses operated. In spite of these liberal policy, only 200 coasters / buses are operating under KPTS.

Similarly, anUrban Transport Scheme was introduced by the Sindh government under the city government in 2001. Incentives like, depot/ workshop facilities, deregulated higher fares, prime routes, subsidy in mark up and leasing facilities were offered. After availing all incentives, these companies failed to pay the banks’ loans. The financial institutions impounded the defaulters buses and this system also failed.

After the closure of KTC and SRTC, companies are unwilling to enter the market citing inadequate fare structure, no legal framework, improper route rationalisation, and lack of proper terminal and depot facilities. Transportation costs incurred by workers accounts for more than 1/3rd of their wages. In order to keep labour cost low, public transport fares have to be kept as low as possible. This is only possible only through direct or indirect subsidy and not service on purely commercial basis. This was the reason, the KTC was created. The then government instead of improving its efficiency and fixing a clear cut off point between the operating cost and subsidy, decided to wind it up on the IMF and World Bank recommendations on 21st March,1997.

This decision was taken keeping in view the corporation’s high budgetary deficits. The fault was the planners because they had no understanding of the nature of urban transport operations and how it should be managed. Urban transport deficits in other countries of the world are an eye opener. France gives a subsidy up to 69 per cent; Germany up to 60 per cent; Italy up to 75 per cent; Sweden up to 65 per cent; even the US up to 50 per cent; UK up to 40 per cent; and neighbouring Iran up to 80 per cent!

Transportation in the private sector has many drawbacks. There are few regular transport companies operating a fleet of buses. Most are one bus operations. In many cases the vehicle has more than one owner. The private sector’s profit motive is not compatible with public convenience. This explains why the private sector operates only on lucrative routes. The continuous increase in diesel prices has affected bus operations. Profits have declined as a major portion of earnings go on fuel purchase. Operators try to make do with lesser vehicles.

Urban transport is mostly used by the lowest income segment of society. They are not in a position to pay the full cost of the services. As such raising fares to break-even level, is not socially desirable. In such circumstances only public sector transport can survive, with a clear cut policy of direct, indirect or built in level of subsidy. An efficient and cheap mass transit system can be ensured only through the public sector.

A well-conceived Urban Transport Policy as a social service in public sector is what Karachi needs urgently.

A two tier system of urban bus transport incorporating public and private sector should be adopted. In most European cities and other parts of the world, public transport is regarded as a social service comparable to health care and education. This will necessitate the revival of KTC/SRTC for which the federal provincial and local governments will have to provide funds and then subsidise it.

All capital investment should be financed by local, provincial and federal governments in the public sector on principles similar to provision of roads and allied infrastructure. Fares should be properly structured, and cost deficits provided by local, provincial and federal governments as grant-in-aid in public sector or through built in provision for self financing. Continuous source of finance for regular new equipment induction. The subsidy should be budgeted in advance rather than paid on reimbursable basis.

To overcome the shortage of skilled manpower, transport training institutes catering to managerial, operational and technical disciplines be set up. Appropriate traffic management technique be introduced to improve traffic. Provision of diesel at subsidised rates must be ensured.

Road safety is one of the most neglected aspects of the road transport system in Pakistan. Trucks and bus bodies are poorly designed and maintained. Overloading is a norm rather than an exception. Bad road conditions and inadequate road signs are added hazards. Drivers are poorly trained and often obtain their driving licences through malpractice. Road safety tests for public transport vehicles in many cases are an eye-wash. Road safety measure should be mandatory and strictly implemented.

These measures will be in vain if we don’t start immediate planning for underground railways (tubes) or electric trams, in at least certain parts of Karachi. The excessive vehicles on roads, and atmospheric pollution can only be reduced by a mass transit system. The first priority should be to regularly assess present and future travel demand on a scientific lines on various corridors to match the capacity of various modes. It may be kept in mind that a bus system however, efficient has a limit of 10,000 to 12,000 P.P.H.D (persons/ per hour direction), thus any increase has to be served by higher capacity systems. The second priority is the revival of KTC / SRTC in public sectors to ensure cheap fast and efficient public transport system for Karachi.

No spending on uplift

By Sohail Sangi


A glance at newspaper headlines indicates that Sindh is in the grip of an endless wave of tribal clashes, karo-kari killings and other social evils.

The dispute over the sale of two islands to a foreign firm, the Kalabagh dam and the utilisation of the ADP were other major stories to have been covered by the Sindhi press last week.

According to Daily Kawish, different departments of the Sindh government have – six months into the financial year -- utilised a mere 36 per cent of the Rs 32 billion earmarked in the annual development programme. The newspaper bemoaned the non-utilisation even of the measly amount set aside for development.

The Kawish said government officials were more interested in releasing funds for non-developmental expenses rather than those meant for the betterment of the people. In a comment on the law and order situation in the province, Daily Ibrat wrote: “Where is the peaceful Sindh of which rulers are making such tall claims?” It says the rulers are making a laughing stock of themselves by expressing satisfaction over law and order.

“Sindh suffered from lawlessness yesterday and it continues to suffer today. The province is watching bloodletting in the name of tribal feuds, honour killing and other heinous crimes.”

Daily Tameer criticised the government’s recent decision to reduce the job quota for rural areas. It warned that the decision would aggravate poverty in the rural areas.

The paper cited the example of Badin, Thatta and Thar, where poverty had crossed the 60-per cent mark. The quota reduction would rob this poor region, and others like it, of the few job opportunities they had. The Tameer suggested that if quota revision were unavoidable, it should be made on 'poverty basis’.

The Kawish and Ibrat, in opinion pieces on a meeting of the inter-provincial coordination committee (IPCC), opposed making Kalabagh dam a part of the national agenda.

The Kawish said the sitting was a replay of earlier meetings – Sindh and the NWFP opposing Kalabagh dam and Punjab showing indifference to their reservations.

The Ibrat said the centre and Punjab’s attitude betrayed an insensitivity to the smaller provinces’ views.

The daily Tameer criticised the Sindh chief minister over remarks against former prime minister Benazir Bhutto. The daily noted Dr that Arbab Rahim had unnecessarily angered sympathisers of the PPP and the people of Sindh. The newspaper said political differences notwithstanding, bad language should not be used against rivals.



© DAWN Group of Newspapers, 2007

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