2. Surveys main conclusions
• 9 out of 10 imported vehicles are used vehicles (15 years
average) and High vehicle operations costs
• High queuing time (1 hour minibuses up to 3,5 days for trucks)
and Low utilisation of vehicles (35,000km/year for mini-buses
and 45,000km/year/truck)
• Operators have a misperception of the life costs of operating
used vehicles
• High imports duty and petrol taxes, 30% higher than Kenya and
Tanzania
• Limited access to vehicle financing, Only one leasing company,
Only 500 commercial vehicles financed so far (30%
guarantee+22% interest rate over 2 yrs period)
• Low safety and security on the roads, one of the highest
accident rate in Africa (160 fatalities per 10,000 veh)
• High association and park loading fees and ‘’excessive
competition’’, meaning oversupply of vehicles
3. Comparison of life cost of operating used and
new vehicles
Figure 1: Comparative vehicle operating costs, brand new v.s. second hand mini-bus over 5 year period
1,000
900
800
700
600
VOC in US$/1000 km
VOC-new
500
VOC-used
400
300
200
100
-
1 2 3 4 5
Year
4. Benefits of replacing used minibuses
• Each dollar invested in minibus replacement will
produce around 2.0 dollars in VOC savings to
transport operators. These savings do not
include gains associated with reduction in
external costs (accidents, congestion and
pollution costs) and savings related to increase
in level of service and reliability.
• Assumption:TRL's research work undertaken in Pakistan
shows that the overall serviceability of used vehicles
decreases on average by 10% per year while labour and
spare parts maintenance costs increase respectively by
15% and 20% per year
5. Access to vehicle finance
• Access to vehicle finance is only possible for established
transport companies
• There is only one leasing company and yet it has
financed only 500 commercial vehicles so far
• Reduction of interest rate (22% to 12%) and extending
period of repayment (5 to 7 years) could lead to 13% in
VOC savings
• How about providing help to raise the required risk
guarantee (30%)
6. Safety issue
• One of the highest road accident rate in Africa
(160 fatalities per 10,000 veh)
• Drivers bad behaviour and training and, vehicles
road unworthiness are the principal causes of
accidents
• Drivers have no work contract and no fixed wage. The use
of the vehicle is contracted out to the driver at a fixed daily
rate. Drivers daily wage will be any additional amount
generated on top of the fixed rate after deducting fuel cost,
police fines and brokers and park loading fees. Drivers
overload vehicles and speed...
8. Benefits of reducing interest rates and taxation
• Reduction of interest rate (22% to 12%) and extending
period of repayment (5 to 7 years) could lead to 13% in
VOC savings.
• How about providing means to raise the required risk
guarantee (30%)
• A reduction of petrol taxes (40% to 30%) and vehicle
import duty (30% to 20%) will reduce VOC/km by 5%
• Yes, but this could only be effective in competitive markets
where part of gains in productivity are transferred to
transport user.
• Is the transport market competitive?
9. Options for improving vehicle operations
based on policy reforms and new legislation
• Reduce import taxes and set up a support framework of vehicle
financing and put an age limit to vehicle imports
• Provision of bus driving and training schools and introduce a
compulsory bus driving license
• Provision of appropriate vehicle inspection equipment and
training and introduce effective vehicle inspection measures
• Provision of TA to the Ministry of Transport and allocate routes
on a basis of effective transport needs
• Set up an independent transport regulatory body and enforce
effectively transport regulations
• Introduce new legislation to prescribe the size of associations
and enhance competition
• Provision and Management of bus and truck parks using PPP
schemes to introduce more transparency
10. Options for improving vehicle operations
based on policy reforms and new legislation
• Reduce import taxes and set up a support framework of vehicle
financing and put an age limit to vehicle imports
• Provision of bus driving and training schools and introduce a
compulsory bus driving license
• Provision of appropriate vehicle inspection equipment and
training and introduce effective vehicle inspection measures
• Provision of TA to the Ministry of Transport and allocate routes
on a basis of effective transport needs
• Set up an independent transport regulatory body and enforce
effectively transport regulations
• Introduce new legislation to prescribe the size of associations
and enhance competition
• Provision and Management of bus and truck parks using PPP
schemes to introduce more transparency
11. Ghanaian lorry parks
•Key transport terminals (both pass. and freight)
•Owned by local government
•‘Managed’ by the main unions
•Restrictive operating practices
•Losers are the users (i.e. the travellers)
•Opportunities for private participation
12. Ghana UTP: lorry park rehabilitation
(Accra, Kumasi, Takoradi, Tamale, Tema)
• Proposal:
– Improved facilities
– Contracting out management
• Practice:
– Improved facilities
– No change in management or operations
13. Characteristics of transport in Southern
Cameroon
• Transport operations are organised by
syndicates
• The syndicate determines fares and routes
• The drivers wait in line and only leave when
they are full
• The syndicate negotiates with the major for
access and fees for the terminal
• The vehicles tend to be small (taxis),
overloaded and in poor condition
14. Transport characteristics in Northern
Cameroon
• There are a number of travel agencies
operating in competition with each other
• The major has granted licenses for these
travel agencies to operate out of individual
terminals in the town
• The operations are professional and regular
• The vehicles are clean, well maintained and
large 30 seaters
15. Impact of these differences on the customer
• In the South passenger fares were between 53%
(10kms) to 370% (200kms) higher than in the
North
• In the North passenger fares dropped by 50% in
2 years as competition increased
• In the North customers had a safer and more
comfortable ride
• Greater service frequency to rural areas
• Customer/user becomes the focus
16. A way forward
• Inputs of Freight Transport Association, UK to provide
assistance to newly formed truck associations in Uganda
and Ghana (October 2001)
• Inputs of social expert to provide assistance to Private
Road Users Associations (October 2001)
• Production of sensitisation tools and material to facilitate
dissemination at stakeholders workshops (November
2001)
• Production of articles and papers to conferences (SSATP,
CODATU…)
• Organisation of workshops in Ghana and Uganda (Early
2002)
