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Global Insurance Company (GIC) has acquired a
4,182sqm plot in Akaki Kality District for eight
million Br to install automatic vehicle inspection
machine an commence its service in the two months.
The company, established in 1997 with 3.8 million
Br, is among the eight companies selected by the
Ethiopian Transport Authority (ETA) last year to
conduct the automated annual vehicle inspection it
plans to roll out soon. Gigar Trading, Hagbes plc,
Care Tech plc, MN Drivers plc and Tikur Abay
Transport SC were also selected to provide the
service.
The Authority, which is responsible for regulating
transport operations, had planned to start the
automated inspections in September 2010. However,
selection of companies to provide the service,
fulfilling the required criteria by companies as
well as setting of tariff for annual inspections had
dragged the start date.
The companies selected are required to install the
machine used to inspect vehicles, which costs around
3.5 million Br. They need to have a facility that is
1,500sqm for parking space located away from main
roads to avoid traffic congestion as well as a clear
entry and exit.
Although Global was one of those which were selected
to provide the service, it has yet to start the
service. So far only four companies - Reis
Engineering, Orbis, Gigar Trading and Hagbes plc –
are the only ones who have fulfilled the
requirement. The first two were selected to provide
the service after they responded the call by the
Authority after those initially selected could not
meet the August 2011, deadline.
The transport authority now plans to start the
annual vehicle inspection at the end of this month
through these companies. Global is yet to be
considered ready to provide the service.
“The company should install the machines required on
its facility before it is considered ready to give
the service,” Nigusssie Kebede, director of the
vehicle competency assurance directorate, told
Fortune.
Having secured the plot, the company is to sign a
four million Br contract with Hagbes for the
purchase of the machinery and maintenance service
this week.
“The machine will be installed and ready in two
months,” Ahmed Ibrahim, general manager of the GIC,
told Fortune. “We are delayed because fulfilling the
requirements was not an easy task.”
It took the company nine month alone to secure the
plot, claims the general manager of the company
which has 135 shareholders and operated through 12
branches.
Once the company is deemed to have fulfilled, it
will undertake the annual inspection of vehicles,
which the Authority plans to have conducted
automatically as opposed to the manual process
currently in use.
This is not the first time the Authority has
outsourced the inspection of vehicles. The manual
inspection, which used to be conducted by the
Authority for decades, was outsourced five years
ago. This decentralized approach had reduced the
long queues customers had to endure at the few
locations where the Authority was giving the
service.
With an aim to reduced the accident rate cause by
cars that are not road worthy and outdated, it is to
do away with manual inspection all together
replacing it with automatic inspection in the same
decentralized manner.
The automated tests entail checking breaks, carbon
emission, and headlights (strength and direction).
The standards to be kept are set benchmarking the
experience of other countries. The Authority had
customized the standards through a pilot project it
undertook on selected vehicles, according to
Nigussie.
“The machines installed by the selected companies
need to calibrated to that standard,” he told
Fortune.
This service is to be given at a price set by the
Authority. However, it was set after long
negotiations with the companies, who felt that it
was too low compared to the capital investment they
have to make to provide the service. The recommended
price for inspection is to be submitted to the
management of the Authority for approval.
To assure a return on the investment of the
companies, the service provision was awarded to
companies for seven years to be renewed every year
upon evaluation of their performance and fulfilment
of requirements.
The tariffs for the inspection, which only apply for
the annual inspection, are set based on the number
of passengers or weight of content vehicles carry.
The recommendation sets 124 Br for vehicles that
carry up to 12 people, 134 Br for up to 29 people,
149 Br for up to 44 and 159 Br for those that carry
more than 45 people. It also sets 79 Br for the
inspection of motor cycle and Bajaj.
On the other hand 124 Br is set for freighters that
carry up to 15 quintals, 134 Br for those that carry
up to 40 quintal, 144 Br for up to 69 quintal, 154
Br for up to 120 quintal and 164 Br for more than
that. |
