"Because of
this, it is not only unprofitable to try and import modern buses,
but it is unthinkable too," a bus owner commented. "Moreover, what
would inspire one to become the owner of a brand new modern bus, if
one cannot even choose the route he can work it on."
Birhanu Kebede,
general manager of Selam Bus told Fortune that the company
intends to assign the new buses to asphalted roads because a lot of
money has gone into purchasing them.
"I truly
believe that any individual or association that imports these types
of top of the line buses will receive the go ahead from the FTA to
work as we do," he said.
Birhanu further
explained that Selam had requested for a licence from the FTA before
they decided on importing the tourist buses and that they had
received a permit. He said that only then did they purchase the
Swedish made SCANIA buses from Ethio-Investment Group to transport
customers from Meskel Square to Mekele as a trial.
Although
Birhanu is sure that the FTA has issued a directive allowing tourist
bus owners to work on their own terms, Fortune was not able
to come across such evidence from the Authority. Belayneh
HabteGebriel, head of public relations service section at the FTA,
told Fortune that he did not know of any directive that was
issued.
"It is true
that the Authority is trying to modernize the sector and as a result
has fixed a set of specifications that we issued to all bus owners
in September 2006 as a trial," Belayneh said. "What you see in the
case of Selam bus is a result of that."
This initiative
for modernization though has caused great concern among those bus
owners that work from the Merkato station.
"It appears as
if the regulations were made specifically to benefit Selam buses and
because this can put us out on the line, we are worried about its
implementation," a bus owner stated.
As of October
2006, FTA has implemented half of the specifications it had fixed.
These regulations state that drivers, their assistants and ticket
sellers should wear the same uniform, with the driver wearing a tie
and a hat; there should be a clearly posted note with the time of
departure and arrival with stops to be made for meals and sleep; and
a mobile phone and scale should also be provided on each bus.
According to
bus owners, the remaining regulations that will be implemented in
the future, after further studies, hold that buses should not be
older than seven years and that they should have on-board toilet
facilities. The FTA has not confirmed these claims.
Selam Bus, in
its brochure, maintained that based on the number of buses that are
availed to provide services to the 77 million Ethiopian people; one
seat on a cross country bus receives 1,283 passengers. Selam further
went on to explain that 90pc of these buses are very old, unreliable
and unable to provide travellers with the proper services. The
brochure went on to explain that Selam Bus was established so as to
provide travellers with a better transportation choice.
Selam Bus was
established in the town of Mekele, on February 6, 1995 with a
capital of one million Birr. The major shareholder of the Company is
the TDA, which holds 996 shares worth 996,000 Br. The remaining four
shares worth 1,000 Br each are owned by the late Araya Zerihun,
former TDA chairman who recently passed away, Bekele Birhane,
GebreMichael Paulos and Tadesse Tefera.
As of October
2006, Selam has put up 6,000 shares worth 5,000 Br each for sale. By
November 11, 2006, shares worth five million Birr had been sold. The
sales will go on until January 8, 2007.
Although the
company affirms that the reason for the purchase of new buses is
based on the lack of efficient buses to accommodate the number of
passengers in the country, it also confirms that its main goal is to
make great profit from the sector.
The brochure
further went to affirm that in the past three years, the company had
made a profit of 197,033 Br the first year; 1,342,289 Br the next
year and 769,813 Br during the third year. The report stated that
this went to show just how profitable a company can become if it
focuses on the market.
"It is a
question of focusing on the market and not being controlled by the
government and the unfairness of it," an economist told Fortune.
A 45-year old
resident of Yeka District, Kebele 09/10, said that although it is
good to have modern buses to choose from, he does not see the
benefit if all persons cannot use their services. Unlike Kiflom, he
does not see new hope in Selam Bus activities.
"If all parties
in the sector cannot compete with one another on equal terms then I
think it will bring about benefits for one particular company and
see the downfall of others in the sector," he said.
But whatever
the industry fallout for the emergence of this new style of company,
operating uder new rules, Selam Bus Line is charging forward.
Recently, it placed another order with Ethio-Investment Group for 15
new SCANIA tourist buses at a cost of 23 million Br.
