Zim-China trade pacts benefit bus operators

Bus5Business Reporter
The Zimbabwe-China trade agreements signed during President Mugabe’s visit to the Asian country have started to bear fruits with some bus operators already importing buses under the facilities.Coaches worth almost a million dollars have been imported following the trade agreements.

In an interview yesterday, local bus operator Mr Esau Mupfumi said the agreements that were signed in China have provided a platform for growth to local bus operators.

“The Government to Government agreements that were signed have played a huge role in instilling trust and confidence within our bus suppliers in China. We have been given greenlight to import buses in bulk of the Yutong brand and this move will go a long way in alleviating transport and logistical problems currently being faced by the country,” he said.

Through this development Mr Mupfumi has so far imported about seven Yutong coaches from China at a cost of $700 000 and is aiming to import more. He said his investment vehicle has so far invested more than $2 million since dollarisation towards improving the existing fleet at the same time maintaining its competitiveness.

“Even when making transactions with our Chinese suppliers, an element of trust has been created where our suppliers now know the source of our money when purchasing backed by the agreements signed between the two Governments,” said Mr Mupfumi.

He said local routes have been the ones driving volumes for bus operators considering the sustainability surrounding the pricing model compared to cross border routes.

In 2013 a South Africa firm availed a $20 million loan facility to local bus operators to purchase coaches, a development that was aimed at improving the transport system in the country. Man Truck and Bus South Africa were supposed to supply the buses under the facility while another financial arrangement with companies such as VDL Coach and Bus (Swiss Motors) was negotiated.

Since the liberalisation of the transport sector in the 90s and failure by the public transport operator, Zimbabwe United Passenger Company to meet the huge transport demand, private players have come into play to correct the transport deficit.

Most companies, including Zupco have been importing buses from China whose prices range between $90 000 and $160 000 per bus. The local transport industry has been hugely affected by poor road infrastructure especially in rural areas and low fares.

Other challenges affecting the sector include corruption, illegal transport operations and obsolete equipment.

About 70 percent of buses currently operating in Zimbabwe are obsolete and should have been replaced 20 years ago, but due to infrastructural challenges, only old buses can be risked on some roads.

 

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