Ghana’s current public transportation system could be improved if government introduced licensure into its operation, Transport Consultants, H&M Premium Partners, has proposed
Speaking in an interview with the B&FT, Senior Partner, Harrison Okyere Nyarko, described the country’s current public transportation system as one in a very sorry state, which needed an urgent and complete overhauling.
He said licensing was necessary to ensure effective control of the subsector, adding that the requirement to obtain operating licence for a commercial transport business had a sound footing in regulation 121 (1) of the Road Traffic Regulation 2012, L.I. 2180.
The current system where “anyone†with cash can buy a bus and operate public transport service, without having to meet any rigorous licensing requirements, poses a serious threat to the development of the country, he said.
“Given the important linkage of transportation with other sectors of the economy, and the fact that it affects every economic activity, it is important that government gives it serious attention,†he said.
Government, Harrison Okyere Nyarko advised, needs to implement a network scheme where licences would be issued to Limited Liability Companies meeting a prescribed minimum requirement, whilst operators who fall short of the prescribed requirement are made to operate under those with licenses, and brand in their operational colors, similar to the model adopted by the National Petroleum Authority (NPA) in the oil marketing subsector.
“Government should adopt the model currently in use in the oil marketing subsector, where the NPA makes it mandatory for individual filling station operators who do not meet the full requirement to become an OMC to belong to a bigger umbrella, like Shell, and also brand in their colors.â€
The consultant believes that it is clear transport unions and associations have failed to deliver the needed service quality to consumers of public transport because the subsector is too large for them to manage as unions.
He emphasised that individual transport operators lose nothing by belonging to a bigger network operator.
“They would continue to operate and collect their own fares as they currently do, but pay a standard annual franchise fee to the network operator. The network operators could be charged with specific supervisory responsibilities to perform, failure of which could lead to the revocation of operating license.
Currently, government is unable to administer effective control with licence revocation through the unions because the members in the unions are too many. Whose license will you revoke, GPRTU or the individual members? You see what I am talking about?†he quizzed.
Credit: Business & Financial Times Ghana