JUTC boosts fleet with Chinese buses
Published:Wednesday | April 20, 2022 | 12:10 AM
The Jamaica Urban Transit Company Limited (JUTC) has signalled that the 50 buses to be added to its fleet this financial year are the Chinese-made Ankai, comprising 45 diesel and five electric units.
It is understood that the procurement process is significantly advanced. Based on the specifications of the bid, the recommended bidder is proposing to supply the Ankai Chinese buses.
The Ministry of Transport and Mining embarked on a competitive process for the procurement of buses for which the specifications were developed by the JUTC.
Three charging stations are also to be established for the electric buses.
Senior technocrats from the Ministry of Transport and Mining and JUTC officials will today appear before Parliament’s Public Administration and Appropriations Committee to update members of the oversight committee on the company’s operations.
The transport ministry has indicated that the buses are scheduled for delivery in the third quarter of the 2022-2023 financial year. The matter has reportedly been approved by the Cabinet.
According to the JUTC, the use of a diversified fleet is an integrated approach being pursued to enhance the operations of the company.
As the JUTC introduced cost-cutting measures, it has reduced its staff complement from 2,236 in 2016 to 1,789 at present. This meant that staff costs plunged from $2.55 billion as at January 2021 to $1.96 billion in January 2022, reflecting savings of nearly $600 million.
The company is also reporting savings of $17 million for staff-related costs, which fell from $315 million in January 2021 to $298 million in January 2022. According to the JUTC, this reduction flows from the rationalisation of its operations.
The JUTC said that while it has experienced a reduction in revenues, it has managed to contain its operating and administrative expenses. It said that total expense has been cut from $7.95 billion as at January 2021 to $7.88 billion as at January 2022.
Another cost-cutting, environmentally friendly fuel system introduced by the JUTC is said to be reaping benefits.
The introduction of the Elhydro Kleenoil Bypass Filtration system has resulted in savings of about $668.4 million over the six-month period, April to September 2021, for the 450 buses in which it was installed.
The JUTC is projected to lose $8 billion for the current fiscal year, with the Government pumping $5.2 billion in subvention into the state-owned bus company.
A recent Sunday Gleaner article reported that the JUTC, which subsidises fares for certain categories of riders such as students, the elderly, and the disabled, operated at a loss of $70 billion for the period 2010 to 2022 based on Budget documents for the period.