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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
Figure 1: Comparative vehicle operating costs, brand new v.s. second hand mini-bus over 5 year period
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VO C in US$ /1 0 0 0 k m
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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%)
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...
Organisation
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?
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
Proposal:
Improved facilities Contracting out management
Practice:
Improved facilities No change in management or operations
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)