THE Jamaica Urban Transit Company (JUTC) will now be paying $11.5 million per month, or approximately $138 million a year, in toll charges to use the Portmore leg of Highway 2000.
The state-run bus company has been forced to implement measures to reduce the number of units travelling the thoroughfare to cushion the blow from last Saturday’s hike in the toll rates.Chairman of the bus company, Rev Garnet Roper said the toll bill would have even been higher had all of the average 80 buses that operate daily from the Portmore municipality to Half-Way-Tree and downtown Kingston use the toll road.The cash-strapped bus company, he said, was already struggling to pay the $10 million a month in toll charges prior to the increase from $390 to $450 per trip as of July 6. Given the added cost, Roper said the company will now take steps to roll out its long proposed ‘park and ride’ system to cut back on the number of its buses using the toll road. Additionally, the JUTC board chairman said more of its buses will be using the alternative route, along Mandela Highway, during off-peak hours.“We are heading towards a ‘park and ride’ system so we can have fewer buses going through the toll because of the high cost,” Roper told the Jamaica Observer yesterday.He explained that under this system, smaller buses would take passengers from the various communities in Portmore to the town centre, and terminate just behind The Captain’s Bakery. From there, passengers would disembark and board one of the larger units such as the articulated buses to transport them to their destination in either Half-Way-Tree or downtown Kingston.This new measure, according to Roper, was proposed even before the increased toll rates were announced as the company sought ways to cut back on its operational costs.However, he said that its roll-out was delayed as there were some steps to be taken before the system could be implemented. These, he said, included a substantial marketing campaign to inform residents of the change. Additionally, Roper said a small bridge will have to be constructed to provide access to the area in the town centre.“It is a little bit tricky, because people don’t like the idea of changing buses, but we will be having a substantial marketing thrust to get the buy-in from residents,” Roper said.He was, however, unable to say how soon the new ‘park and ride’ system would be rolled out, but disclosed that it should have been implemented in January but the timeline was not met.Meanwhile, the bus company is banking on an increase in fares to help the bus company offset its growing expenses. According to Roper, the percentage hike in fares has already been settled, however, he could not say when it would be announced.“We thought the increase in bus fare would have been July 1 but that is not the case anymore so I can’t say when,” Roper said.In May, Transport Minister Omar Davies hinted that commuters would soon be hit with fare increases.Talk of a fare increase for JUTC’s passengers started last December when the entity, which lost $1.8 billion last year, began the process of applying for a fare hike.The JUTC had projected that for 2012/2013 its loss, before subsidy, would increase to over $2.4 billion, as revenue flow was inadequate to bridge the gap in the fare box.The company has attributed its ballooning losses to the decline in annual Government subvention; loss of revenue to illegal transportation operating on the exclusive routes; and the $70 difference between actual fares and the Governmentsubsidised fares paid by students and the elderly.Given the gap between revenue and expenditure, Government has provided financial support in the form of cash subsidies, tax waivers, debt assumption/write-offs and the injection of fixed capital in the form of buses and spare parts. Direct financial support from the Government in 2012/13 was projected at $3 billion, including $554 million in subsidies and $320 million in waivers on general and special consumption tax payments.Meanwhile, Roper said the JUTC has already switched to the new and more expensive ultra-low sulphur diesel, but was in negotiations with Government to source the fuel at a cheaper rate. The fuel, he said, is better for the engine of the JUTC buses.HOUSE RULES
1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.
2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
4. Please do not write in block capitals since this makes your comment hard to read.
5. Please don’t use the comments to advertise. However, our advertising department can be more than accommodating if emailed:mailto:advertising@jamaicaobserver.com.
6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
7. Lastly, read our Terms and Conditions and Privacy Policy
comments powered byView the original article here
JUTC struggles to pay Highway 2000 fees
