Yan­gon’s pub­lic buses rack up K4B in losses

The Yan­gon Bus Pub­lic Com­pany and Yan­gon Ur­ban Pub­lic Trans­porta­tion Pub­lic Com­pany, have recorded losses to­talling K4 bil­lion in the past three years.

The Myanmar Times - - Front Page - THIHA KO KO thi­hakoko@mm­times.com

TWO Yan­gon pub­lic com­pa­nies, the Yan­gon Bus Pub­lic Com­pany (YBPC) and Yan­gon Ur­ban Pub­lic Trans­porta­tion Pub­lic Com­pany (YUPT), have recorded losses to­tal­ing K4 bil­lion in the past three years, ac­cord­ing to a re­port pre­pared by the Yan­gon Re­gion Of­fice of the Au­di­tor Gen­eral.

The 2016-17 re­port was sub­mit­ted to the Yan­gon Hlut­taw by Au­di­tor Gen­eral Daw Khin Than on Septem­ber 14.

The re­port showed that the Yan­gon gov­ern­ment had in­vested K35 bil­lion each in YBPC and YUPT, which cur­rently op­er­ate un­der pub­lic-pri­vate part­ner­ships (PPP). Ac­cord­ing to the re­port, the gov­ern­ment’s in­vest­ments in the two com­pa­nies ex­ceed pri­vate in­vest­ments.

The com­pa­nies had pur­chased a to­tal of 1,000 new buses, 500 each, to op­er­ate un­der the Yan­gon Bus Ser­vice (YBS) launched in Jan­uary last year.

So far though, YBPC and YUPT have yet to break even on the cap­i­tal ex­pen­di­ture taken for the new YBS buses. Ac­cord­ing to the Au­di­tor Gen­eral’s re­port, YBPC has been loss­mak­ing since 2015-16, while YUPT fell into the red in 2017-18, dredg­ing up K603 mil­lion in losses.

Cur­rently, there are 25 bus com­pa­nies op­er­at­ing over 6,000 buses and 119 daily bus lines daily un­der the YBS, which is overseen by the Yan­gon Re­gion Trans­port Au­thor­ity (YRTA). The YRTA re­placed the Yan­gon Mo­tor Ve­hi­cles Su­per­vi­sory Com­mit­tee (Ma Hta Tha) last year.

Pas­sen­gers pay a fixed price of K200 each time they ride the bus. To turn a profit though, the gov­ern­ment should con­sider fix­ing bus fares by dis­tance, said Daw Khin Than. This is be­com­ing more im­por­tant as op­er­a­tional costs have been on the rise.

U Tay­oute Lay, man­ag­ing di­rec­tor from Power Eleven Pub­lic Com­pany, one of the bus com­pa­nies op­er­at­ing un­der the YBS, said the gov­ern­ment should lease out nec­es­sary in­fra­struc­ture such as bus sta­tions and

‘To turn a profit, the govt should con­sider fix­ing bus fares based on dis­tance.’

Daw Khin Than Au­di­tor Gen­eral

pro­vide paid park­ing spa­ces for the buses for ad­di­tional rev­enue.

The gov­ern­ment can also in­vest in pro­vid­ing re­pairs and main­te­nance ser­vices and op­er­ate petrol sta­tions, he said.

Photo: Zarni Phyo

YBS runs through the busy road in down­town area in Yan­gon, Myan­mar on Jan 1, 2017.

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.