KARACHI, Oct 12: The woes of Pakistan Railways proved to be a blessing in disguise for commercial bus operators and manufacturers in the country.

Assemblers of buses, who also produce trucks of same brands, heaved a sigh of relief as sale of buses increased amid declining sale of trucks.

Passengers are gradually moving to road transport due to unreliable train operations, marred by suspension of many routes and delays in departure and arrivals.

Eyeing the trend, bus operators invested heavily to improve infrastructure to capitalise on the opportunities.

“A number of people prefer buses for inter-city and upcountry movement rather than travelling in trains because of dismal service of Pakistan Railways,” an analyst associated with the trade commented.

A Korean bus assembler also enjoys good sales in buses. Mohammad Tahir Javed, Director Marketing and Sales Afzal Motors (Pvt) Ltd/Daewoo Pak Motors Ltd told Dawn that production of Daewoo buses is above around 30 per cent than last year and company has orders in advance for its luxury buses for inter-city operations for the next six months.

He claimed that Daewoo recently secured an order of 100 buses for Lahore Bus Rapid Transit Project (LBRT) for delivery in November and December 2012.

He said that the Punjab government is aggressive to revamp urban transportation and provide a respectable means of commutation. This would provide a big opportunity for bus suppliers.

Overall bus sales (mainly Hino) in the first quarter 2012-2013 improved to 113 units from 70 units in the same period of last fiscal year.

Hino sold 110 buses in the last three months as compared to 56 units in the same period of last fiscal year, while Isuzu sales fell to three units as compared to 12 units, figures of Pakistan Automotive Manufacturers Association (PAMA) revealed.

In 2011-2012, bus sales grew to 609 units from 515 units.

A Japanese bus assembler also attributed good sales to institutional buying of buses, coupled with rising orders from some government organisations in the last one and a half years.

Truck segment has been facing problems for the last two years.

In 2011-2012, sales of Hino and Master dropped as against increase in sales of Nissan and Isuzu trucks.

As per PAMA’s figures, overall sales of trucks dropped to 2,394 units from 2,942 units in 2010-2011 while sales were 3,620 units in 2009-2010.

In July-September 2012-2013, sales fell to 366 units from 410 units.

Tahir Javed said the trucking industry is the only means of transportation of industrial output for domestic consumption and export as well.

During the last two to three years, industrial output has also shrunk primarily due to industrial closure or shutdown for power shortage or law and order.

A large number of trucks went out of business due to non availability of cargo.

He said a large number of used trucks (10-12 years old) are arriving regularly at very cheap prices.

The prices of new trucks have increased over 100 per cent since 2007 making transport operation economically unfeasible, thus forcing transporters to rely on purchase of old low priced trucks.

It is estimated that over 2,000 old trucks are arriving annually in shape of fuel bowzers, water sprinklers and crane mounted trucks etc.

NATO goods transportation was one of the major sources of earning for Pakistan truckers but from November 2011 it was severely affected and only approximately 20 per cent operation has restarted yet.

The imposition of 16 per cent general sales tax in May 2011 pushed up prices beyond trucking fleet operators reach. There was hardly any bulk buying by major governmental organizations, like NLC or FWO and even commercial operators were reluctant to purchase new trucks.

He said that the Afghan Ministry of Transport is reportedly pressing the government to allow Afghan trucks to lift Afghan Transit Cargo and NATO supplies from Karachi and Port Qasim that would further add salt to the Pakistan’s truck business.

He added that in the current circumstances there are remote chances of any big positive impact on truck business.