Registered bus companies are losing money to illegal operators
TRANSPORTATION industry insiders say that individual operators are cannibalising their sales as fewer passengers choose to ride with registered companies. Cambodia Bus Association (Camba) director Chhem Chomnan said unregistered operators sell tickets below market price, which makes it impossible for registered bus companies to compete.
“Our main challenge is that [individual operators previously] had one or two buses in their fleet, but now some have up to five or 10 buses.
“They don’t have proper parking lots so they park on the sidewalk to collect passengers. They don’t have a company name or staff either . . . we could face bankruptcy in the future.
“For example, a Phnom Penh-Siem Reap ticket is sold at $6.25 by registered bus companies, but it can be bought for only $2.50 or $3.75 per ticket for the same trip when sold by unregistered bus operators,” Chomnan said.
Camba said the number of passengers using registered bus companies has dropped between three and four per cent over the past two years.
Sok Chanmony, who owns Paramount Angkor Express Co Ltd (PAE), which operates more than 100 buses, told The Post: “[Individual bus operators] are themselves the drivers.
“They own their buses and don’t operate under any company name, so they don’t have to pay taxes. They buy a bus to run their transportation business and collect customers along the streets or from hotels.
“A bus full of passengers can bring us a profit of about $20 to $30 per trip, but if there are only 20, we lose money after fuel expenses.
“During the low season from June to September, my company loses about $40,000 to $50,000 per month, but we hope to turn a profit during the high season.”
Rith Mony Transport Co Ltd and Virak Buntham Express Tour & Travel told The Post that they also experienced similar challenges.
Meas Simothy, the general assistant at Rith Mony Transport, which operates 60 of its 150 buses daily, said the company had experienced passenger decline over the past two years.
“We used to see 1,000 passengers each day on average, but now it is hard to get 500. Sometime we lose money and sometimes we make a profit,” he said.
There are currently 31 registered bus transportation companies, of which 12 are members of Camba. Chomnan called on authorities to take action against unregistered bus services.
Ministry of Public Works and Transport spokesman Vasim Sorya said: “[Bus companies] can jointly file a formal complaint. We don’t have enough time to investigate complaints if they are made individually.”