Advertisement

Operators fear unfair competition from Ritco buses

Friday February 10 2017
onatracom

The collapsed Onatracom buses mainly operated in rural, unpaved roads. PHOTO | CYRIL NDEGEYA |

The transport regulator has dismissed operators’ fears that the planned allocation of routes to Rwanda Interlink Transport Company (Ritco) Ltd could lock some of them out of profitable routes.

Ritco, expected to deploy the first batch of its high-capacity buses shipped from China soon, was seen to be taking over all the routes plied by the former public transport company Onatracom.

However, it has emerged that Ritco will be allocated more routes, although the details about the allocation criteria and operators likely to be affected by the move were not revealed.

Rwanda Utilities Regulatory Authority (Rura) spokesperson Anthony Kulamba told Rwanda Today that the allocation of routes to Ritco, along with new licence conditions, are issues still under discussion.

He said that Ritco is free to deploy buses in routes previously plied by Onatracom while awaiting to be given additional routes, adding that this will not hurt any of the operators as speculated.

READ: Ritco to fill gaps left behind by moribund Onatracom buses

Advertisement

“Operators don’t have to worry because we have a mandate to ensure fair competition and protection of all service providers. Ritco will not come as a monopoly. And if anyone has a concern, he or she can come to us and we can advise,” Mr Kulamba said.

Onatracom, which collapsed due to mismanagement, operated largely on rural upcountry and unpaved roads, the majority of which had been abandoned by the existing providers.

The initial Ritco plan was to deploy some 166 buses on these routes within a period extending to a year. The first batch of 20 buses was delivered in Kigali last month, with 30 more on the way.

The buses could be used alongside more than 50 old but functional Onatracom buses.

The company recently started the recruitment process for the staff.

“We have the buses and we can start operations the moment we are allocated routes by Rura. So I can’t tell you exactly when because Rura is an independent institution,” said Julius Rukundo, Ritco’s managing director.

Mr Rukundo said, unlike Onatracom, the company plans to have in place effective management with strict control to ensure buses remain in good condition and provide good services.

Travellers said operators on some established provincial routes and some in Kigali will lose their routes to Ritco.

“It looks like we will be the ones to take our cars to the rural unpaved roads. For someone who bought cars on loan, it won’t be easy,” said a car owner registered with the Rwanda Federation of Transport Co-operative.