Business

June 26, 2013

First watch: Transportation Blues

First watch: Transportation Blues

Passengers in a BRT bus

By Akintola Omigbodun

Let me say at the beginning that I use the Bus Rapid Transit, BRT, service between Mile 12 Ikorodu Road and Tafawa Balewa Square, Lagos Island. The Lagos State Government, LASG, through its organisation the Lagos Metropolitan Area Transport Authority, LAMATA, granted a franchise to Lagos NURTW 1st BRT Cooperative Society Limited, NURTW Coop, to operate the bus service. Ecobank Nigeria is involved in the financing of the buses used on the service and Ecobank Nigeria is the producer and custodian of the tickets used on the bus service.

I recall that during the most recent partial closure of the Third Mainland Bridge in Lagos passenger volumes increased significantly on the BRT service. NURTW Coop officials took a lot of trouble and time to pack passengers into the buses at each stop.

The revenues of NURTW Coop must have been enhanced during the partial closure period. Governor Fashola of Lagos State confirmed in a recent television interview with Angela Ajetunmobi that NURTW Coop had paid for the buses in service but that there had been no reinvestment by NURTW Coop.

The result is that there are far fewer buses in operation on the BRT route today than the number of buses in use a year ago. NURTW Coop officials now pack even more passengers into the buses than the number of passengers during the partial closure of the Third Mainland Bridge. What can we do to improve upon the service now rendered on the BRT route by NURTW Coop?

We shall start with the more difficult issues. LAMATA has a half-hour television programme on Lagos Television, LTV. The programme is essentially for the public to be educated about the BRT service and there is a portion of the programme during which the pubic can call in by telephone and direct questions at the programme’s moderator and the guest, usually a LAMATA official.

NURTW Coop officials should be invited to appear on this television programme such that they can inform the public of the problems they have in operating the bus service. The public will also have the opportunity to direct comments and questions at the NURTW Coop officials.

When the BRT service was being initiated, the LASG gave the franchise to NURTW Coop such that the transport unions would not resort to violence and prevent the service from going into operation. The transport unions may have come to believe that the franchise is their absolute right and not the priviledge that it is. The LASG has taken a substantial World Bank loan for the reconstruction of Ikorodu Road from Mile 12 to Ikorodu Town Roundabout. The reconstructed road would provide BRT lanes between Mile 12 and Ikorodu Town Roundabout for the first time.

The justification for the investment on the reconstruction of the route is the number of journeys that BRT buses would make on the route. It is obvious that NURTW Coop cannot provide the required service on the route. LAMATA should, as a priority, appoint a second operator to provide bus service between Ikorodu Town Roundabout and Tafawa Balewa Square, Lagos alongside the service provided by NURTW Coop.

Arrangements should be made with a second bank to provide financing for the buses to be used by the second operator. I note that the present ticketing system is suitable for having only one operator on the route. It may be that passengers would have 2 sets of tickets and have to present the ticket appropriate to each operator to enter a bus. However, I believe alternatives can be worked out for the convenience of all parties.

Ecobank Nigeria can and should prepare a turn-around plan for NURTW Coop. This should be considered as an important social responsibility. I believe NURTW Coop should be made to accept a technical management distinct and separate from NURTW.

NURTW Coop should have a supervisory role as shareholder over the technical management. Ecobank Nigeria knows how and when the revenues came in that made it possible for NURTW Coop to pay off the initial loans taken for the buses. If it has been possible for NURTW Coop to operate the BRT bus service at a profit, it should be possible to do so again and again.

The lesson from all of these is that a franchise arrangement for the bus service should include the level of investment that the holder of the franchise would be required to maintain each accounting year from now on. I believe the LASG provided the bank guarantees for the financing of the buses in the first instance and I believe the LASG can do the same again.

We are apparently entering the run-in period into another election for Governor and the House of Assembly. I hope the LASG would take all the steps that are necessary to move all parties, LAMATA, the unions and the banks in the right direction. The public expects and deserves a better bus service than that currently provided by NURTW Coop.