CREW INCEPTION MEETING
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1 CREW INCEPTION MEETING Brief Overview of the Passenger Transport Sector: Intra-city Transportation Services Covering all route in Lusaka Robert Mtonga (MSc. Strategic Management) Fredric Herbert Stiftung (FES) Conference Hall, Lusaka 10 th April hrs 1740hrs Principal Consultant Strategy Foresight Consult (77)
2 Zambia What a Country! Yet Stable!!!
3 Presentation Layout 1. A brief Overview of the passenger transport sector in Zambia using Lusaka as a reference point; 2. Highlight some facts about Lusaka: - Estimated Human Population of Lusaka Estimated Vehicle Population of Lusaka 3. Structure of the Market; 4. Reforms Undertaken (taking the 5 wise men approach what, why, when, how and who) Policies Programmes Laws
4 Presentation Layout 5. Performance of the Reforms undertaken Reforms Assessments Reports 6. Public and Private Participation in the sector; 7. Markets where consumers and producers benefit and or concerns have been seen; 8. Private Associations and their nature of engagement; 9. Recommendations; and 10.Conclusion
5 Lusaka A capital city traversed by 4 main roads which are further serviced by various arterial roads into different residential areas.
6 Passenger Transport Services providing services to the people on the go!
7 Passenger Transport Services Some Facts Currently, Zambia s human population is estimated at 13,817,479; and Close to 2.5m people are estimated to live in Lusaka.
8 Passenger Transport Services Some Facts Currently, Zambia s motor vehicle population is estimated at 460,000; 45% - 50% of this population is assumed to be resident in Lusaka; and At close of 2012, a total of 2,500 public service vehicles (PSVs) were registered as operating in Lusaka
9 Structure of the Market Supply Side Special Interest Groups Demand Side Minibus Operators Taxi Operators Asset Managers (Contractor) Trade Associations (UTTA), Ad-hoc Committees Sector Trade Unions (BDMT, ZAM, ZABTWU, etc, etc) Regulators (RTSA, LAs, ZPS, Lab Dept, ZRA, PIA, WCFCB, ZABS, CCPC) Other Public Sector Stakeholders (RDA, NRFA, ERB, ZEMA and MoH) Policy Influencing Groups (CUTS, JCTR, MedCZ and Red Cross Crescent) Bilateral and Multilateral Cooperating Partners (CPs) Research and Development (R&D) Passengers (categorised by need) Special Needs Passengers (Children, Women and the Differently Abled) Passenger Pressure Groups (PAPECA, CRAZ, etc, etc) Suppliers to Service Providers (suppliers of Equipment and Accessories, OMCs, Mobile Phone Service Companies, ICT & e- commerce, Financial Institutions, Garages, Training Institutions, CDEs, etc, etc)
10 Forces that are Supposed to be Driving Industry Competition Potential Entrants Suppliers Industry Competitors Buyers Michael E. Porter, Competitive Strategy, 1998 Substitutes
11 Reforms Undertaken - Policies Nationalisation Liberalisation National Transport Policy Post rd Republic Post 1991 Post 2000 Government provided regulatory and policy direction in provision of passenger transport service. Government relinquished interest in provision of passenger transport services to private sector. The transport policy re-affirmed liberalisation which entailed passenger transport fares being determined by market forces (demand and supply). Owned Parastatals (UBZ, Mulungushi Traveler and LUDC!). Remained with responsibility to facilitate conducive environment for conducting business. The transport policy proposed implementing quality licencing. Private sector made unprecedented investment in passenger transport services. This was motivated by the removal on import duty and excise on vehicles in fiscal years. Since 2009, efforts have been on cards to review the 2000 National Transport Policy.
12 Reforms Undertaken - Programmes Nationalisation Liberalisation National Transport Policy Post rd Republic Post 1991 Post 2000 The desire was to control means of production and distribution of resources. Development was guided by National Development Plans (NDPs) Government financed from its own resources either from copper sales or donor money (after the economic recession of the 1970s following the crash of copper prices. Government couldn't manage to keep financing Parastatals. National Development Plans (NDPs) were abandoned in preference of Sector-wide Approaches (SWAps). Government Ministries, Departments and Spending Agencies developed and implemented 3-5 year Strategic Plans. The Transport sector developed a sector-wide development strategy called Road Sector Investment Plan (RoadSIP) aimed at financing road development and maintenance and road safety. Private Sector provided passenger transport services at market rate. Quality of results achieved over quantity was emphasised. Private sector was much more expected to contribute to national development through quality job creation and tax compliance. Compliance to competition laws became more pronounced and the CCPC and RTSA collaborated more.
13 Reforms Undertaken - Laws Nationalisation Liberalisation National Transport Policy Post rd Republic Post 1991 Post 2000 Laws to suit nationalisation of corporations were enacted. Laws to facilitate privatisation were enacted. The post 2000 era has witnessed review of various laws. Among the reasons for review have been enhancing regulation and enforcement. Road Traffic Act No. 766 Institutions such as the CCPC were established. Road Traffic Act Nos 464 and 471 The RTSA has incorporated in its current law review improving the environment of doing business by reducing a record 99 business licences and permits to less than 30! Road Traffic Act No. 11 of 2002 SS26 of S108 discourages monopolies and encourages competition and fair trading in accordance with the Competition and Fair Trading Act or its successor laws.
14 Performance of the Reforms Where we are is a RESULT of what we have done or not done!
15 Performance of the Reforms - Benefits Producers (Transporters) Consumers (Passengers) Low barriers to entry Readily available transport service Presumed profitable Proximity to transport service Source of income Easily negotiable
16 Monitoring and Evaluation of Reforms Reforms Assessment Reports 1. All public institutions are by law expected to submit to Parliament Annual Reports within 90 days from the start of the year; 2. Challenges noted: - Annual Reports are rarely submitted on time; Focus of reporting tends to be towards financial performance; The Parliamentary Accounts Committee (PAC) to be considering quality of results achieved of reform programmes; and Office of the Auditor General to be auditing strategic plans planning processes, execution and evaluation in order to improve quality of outputs.
17 More Can be Done 1. The product lifecycle of passenger transport services is yet to reach its peak. It still remains a STAR and thus has potential the case of Bus Rapid Transit (BRT); and 2. Quality of jobs created in the sector is below average: - No signed contracts; Income taxes not paid; No personal levy contributed by employees; No pension schemes; and No workers compensation contribution.
18 Public and Private Participation in the Sector Public- Private Partnerships (PPP) Government Contracting Authorities Service or Infrastructure Providers Consumers
19 Markets Where Consumer and Producer Benefits have been seen Bus Rapid Transit (BRT) Concept Nigeria Lagos Bus Rapid Transit (LBRT) Tanzania Dar-es- Salaam Bus Rapid Transit (DBRT) South Africa Rea Vaya Bus Rapid Transit (BRT)
20 Private Associations and their Nature of Engagement Supply Side Special Interest Groups Demand Side Minibus Operators Taxi Operators Regulators (RTSA, LAs, ZPS, Lab Dept, ZRA, PIA, WCFCB, ZABS, CCPC) Passengers (categorised by need) Asset Managers (Contractor) Other Public Sector Stakeholders (RDA, NRFA, ERB, ZEMA and MoH) Special Needs Passengers (Children, Women and the Differently Abled) Trade Associations (UTTA), Ad-hoc Committees Sector Trade Unions (BDMT, ZAM, ZABTWU, etc, etc) Policy Influencing Groups (CUTS, JCTR, MedCZ and Red Cross Crescent) Bilateral and Multilateral Cooperating Partners (CPs) Research and Development (R&D) Passenger Pressure Groups (PAPECA, CRAZ, etc, etc) Suppliers to Service Providers (suppliers of Equipment and Accessories, OMCs, Mobile Phone Service Companies, ICT & e-commerce, Financial Institutions, Garages, Training Institutions, CDEs, etc, etc) They need special skills of engagement
21 Special Skills of Engagement 1. Assessing Effectiveness of Partnerships Skills; 2. Research and Development Skills; 3. Advocacy and Policy Influencing Skills; 4. Negotiation Skills; and 5. Communication Skills.
22 Recommendations 1. Integrated Transport Strategy Linking different types of modes of transport (physical integration) Train; Bus; Park and Ride; Accessibility by foot; Park and Cycle; etc, etc. Integration with other Policies Environment; Land Use and Urban Planning; Social Inclusion; Justice; Education; Health; Leisure; and Wealth Creation. 2. Models such as BRT have often offered opportunities for effective reforms.
23 Conclusion Achieving a balance between producers and consumers of passenger transport services requires a consensus of all stakeholders on what actions need to be taken in order to achieve high quality results. I see CREW taking a major step towards this realisation.
24 End God Bless
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