Long distances, but not enough fuel

Bus companies in Sarawak are in bind . Daily they have to travel hundreds of kilometers but their subsidised diesel fuel is not enough.

PETALING JAYA: Bus companies in Sarawak have a fuel problem. They travel really long distances but their subsidised fuel is not enough for the distance.

The Sarawak Bus Transport Companies Association (SBTCA) says in Sarawak the routes stretch in hundreds of kilometers.

For example, Sibu to Miri is 440km each way, and Sibu to Kuching is 462km each way. Stage or city buses were also affected by the vastness of Sarawak. Some buses travel up to 500km for a return trip each day.

“Express buses have a quota of 2,880 litres of subsidised diesel per month. This is greatly insufficient for Sarawak, where major towns and destinations are a few hundred kilometers apart,” said a SBTCA letter sent to Deputy Minister in the Prime Minister’s Department Liew Vui Keong.

SBTCA, in the letter sent in April, felt that the situation will get worse once the diesel super subsidy is withdrawn.

As a result, the SBTCA proposed that both express and stage buses in the state have their diesel quotas increased.

Monthly express bus quotas would have to be raised to 5,000 litres per bus, with 1,440 to 2,550 litres increase for stage buses.

Johor Bus Operators Association president G Suchdav agreed with the SBTCA’s sentiments.

“(In 2010), when (subsidised) diesel prices were raised from RM1.43 to RM1.48, it was only a five sen change for the public.”

“But for us, that can mean hundreds of thousands more to pay every month,” he told FMT.

Suchdav said that a stage bus could easily consume up to 300 litres of diesel a day, with one litre for every 1.5km traveled.

Pirate taxis reign the streets

Another problem facing Sarawak were pirate taxis (kereta sapu), the SBTCA complained.

Although illegal, these pirate taxis appeared to be operating without fear of the authorities.

“This problem has contributed to the closure of four bus companies in Sarawak in six years, and our revenue has dropped by not less than 30%,” the letter said.

But worst of all were perhaps the Indonesian pirate taxis.

“We heard that the Road Transport Department (JPJ) officers have no authority to stop the foreign pirate taxis, because they can only do administrative duties.”

“But they can take action against local Malaysian vehicles,” the letter said.

It added that the authorities would also target bus companies by “issuing various compound notices for minor breaches” after complaints were made against pirate taxis.

Insurance premium

Additionally, the SBTCA said that since early 2009, operators were forced to insure their buses under the Malaysia Motor Insurance Pool (MMIP), after being refused by other insurance companies.

This caused a number of issues, including:

• imposed loading on buses and an increased premium of about 25%.
• an excess clause of RM3,000 to RM7,500 per bus for all third-party insurance coverage.
• the lack of MMIP offices in Sarawak, with operators not knowing where to lodge claims.

Like their Peninsular counterparts, the SBTCA asked the government to buy out their operations.

“The government can acquire 70% of shareholdings with the remaining 30% for management of the bus companies,” the SBTCA said.

It also called for all bus companies in the state to be merged under a sole company that would come under the government’s control.

“With one bus company, there would be less competition and control,” SBTCA said, citing the success of Singapore’s bus company SBS Transit.

However, the SBTCA warned that if the government did not heed its cry for help, bus operators there have to close down.