Dar es Salaam Rapid Transit infrastructure under construction in the city’s Ubungo area.
Those rooting for foreign companies argue that locals are incapable of managing a modern bus transport system. They believe that, the 50-plus years of independence notwithstanding, no Tanzanian can supply the buses.
Dar es Salaam. Should we go local or rope in foreign firms when it comes to buying rapid buses and managing the modern transport system we are so looking forward to?
Those rooting for foreign companies argue that locals are incapable of managing a modern bus transport system. They believe that, the 50-plus years of independence notwithstanding, no Tanzanian can supply the buses.
That school of thought holds that, judging by the dilapidated public transport that is mainly operated by locals, no Tanzanian or local company will be able manage the Dar es Salaam Rapid Bus Transit (Dart).
In awarding the tender, they argue, the criteria should be capacity and not the country of origin and if capacity were to be considered, no local company would qualify to supply the modern buses. They do not want the regulator, Dart Agency, to be influenced by the “indigenous” argument in selecting the operators.
The second camp’s counter-argument is that locals who have been in commuter service should be empowered and considered for the job so that the Dart system is ultimately managed and operated by a Tanzania-based firm.
In pushing this agenda, this group argues that Tanzanians are capable of supplying the buses but the ticketing system, which calls for advanced technology, should be handed over to a foreign firm for three years, during which it would train locals and invest in technology.
There are a number of arguments against this approach. First, those claiming that locals cannot manage this system do not have a valid argument. How much does it cost to buy a single modern bus? How many are required during the interim service?
World Bank data indicates that at least 76 modern rapid buses would be required during the interim period. And an independent source within the government estimates that a total of 177 buses with a capacity to carry 190 passengers each and another 135 with carriage capacity of 90 passengers per bus would be imported before the interim operation begins.
The project is divided into two phases—an interim period lasting three years and a second phase that would run for more than a decade. The interim period was set to start in April but has been postponed to June.
The operators required now are only for the interim period. Initially, there was an argument that those who won the interim tender should drop out after the trials. But the government wants all bidders, including those who win the interim tender, to participate in the grand Dart at the end of the three-year trial period.
The buses required to kick start the interim operation would each cost between $250,000 and $300,000 depending on the capacity and quality.
It would be cheaper to go for Chinese-made buses. Top end vehicles manufactured in Sweden or Brazil would come at an estimated $250,000 and $300,000 for each bus.
According to Dart’s specifications, the buses should ferry between 90 and 190 passengers. This means one mega rapid bus can carry four times the capacity of the daladala.
It is not right, therefore, to claim that there is no local company capable of supplying these buses. If UDA and all daladala owners were to join forces, they could supply the buses—provided they were well supervised by the regulator.
In 2010, the bank’s then country director for Tanzania, Uganda and Burundi, Mr John Murray, said during the official launch of Dart: “The future Dart system should be owned by Tanzanians…there will be a need for international expertise to operate the system, but the ownership of the buses should be in Tanzanian hands. Let us work on the structure that will make this possible.”
Local operators can be divided into three groups: The first involves those who have been in this business for years, including UDA, and individual operators. The second group can be local companies that have been handling the upcountry public transport for years. The third group is locals who are well endowed financially and willing to invest in the rapid bus transport system.
We are told that UDA has reached an agreement to allow daladala operators to own shares, which is a very positive move. We are also told that all daladala owners whose vehicles are affected—there are roughly 1,500 buses—would be compensated.
This is because the routes they have been operating will now be taken by the modern rapid buses. Given the losses they would incur on being evicted, they will be compensated on condition that they retain their buses—the big question being how much and in what way?
An international Dutch firm is now carrying out an evaluation and will submit the final report to Dart, which will be made available to all daladala owners.
After compensation, the current daladala owners may choose to form a company or a co-operative, which they would then use as an investment vehicle to acquire shares in UDA. The majority of daladala owners in Dar es Salaam operate individually—meaning they have never formed an association to manage their business.
To operate and manage a multi-million shilling project like the rapid bus transit, we will need well-managed companies with a board of directors. These companies should be locally-owned because local empowerment cannot take place while those who are trying to grow are being elbowed out.
In South Africa, which was the first country in sub-Sahara Africa to introduce modern rapid bus transit in Johannesburg, the buses are owned by local companies while the government owns infrastructure.
But because South Africa is highly advanced by African standards, even the management system is in the hands of a local company.
South Africa did this purposely in line with its local empowerment drive, which was introduced in the post-apartheid regime. In Tanzania, we have what is called the National Empowerment Act of 2010 which, among other things, states clearly that the government has a duty to empower and support locals so they can participate in managing and growing the economy.
If we are elbowing out locals in lucrative gas, oil and minerals deals, because they are supposedly not financially and technologically able to invest in these sectors, do we want to do the same thing in the transport sector? If that is so, what can local investors expect? Should they just be spectators, watching foreign investors running businesses?
Tanzanians are supposed to be managing their economy through joint ventures between local entrepreneurs and foreign investors. This is also one of the best means to empower local investors.
We have the wrong mentality about local investors when, in reality, they are running the economy. Think about the volume of trade at Kariakoo, which is the biggest in Dar es Salaam and in Eastern Africa in terms of daily transactions.
The majority of traders there are not Chinese. They are locals from Kilimanjaro, Pemba, Southern and the Lake Zone. Just 20 years ago, this place was dominated by two groups—Asians and Arabs. Today, things have changed because of the booming local entrepreneurs.
Dart system management
Because of the sophisticated technology it requires, the only thing that should be given to a qualified foreign company is management of the system. In the modern rapid system, all passengers use electronic tickets bought in advance from authorised dealers. It is a cashless system.
How does it work? There will be smart card electronic ticketing. In countries such as South Africa, there are no touts shouting at the bus station or inspecting tickets.
It is just contactless technology, which means that smart cards are scanned electronically when they are swiped past access gate readers. Commuters are able to load a smart card with a ticket product at a self-help ticket vending machine in order to pay for rapid bus services.
This system allows ticket products to be paid for in cash, debit or credit cards—and, in the case for Tanzania, even mobile money could be used to purchase your e-ticket in advance. The tickets are available in single and return or period passes (weekly and monthly) and Stored Travel Rights—that work on a pay as you go basis.
The second component under rapid bus transit management system is the time table or bus schedule. The system enables passengers to receive real-time information on buses expected arrival and departure times.
Electronic information display systems are provided inside the bus stations.
The system tells you if a bus will be available every 10 or 20 minutes, unlike the current situation where you can wait for an hour without seeing a commuter bus, especially during peak hours.
The third component is security. There will be tight security at bus stations through access control and electronic surveillance—meaning Closed Circuit Television (CCTV) in every station. There are also security officers who maintain a visible presence at stations. Under this system, only valid ticket holders will have access to station paid areas and platforms.
If there are various operators running rapid buses under Dart, this system allows every operator to understand how many passengers his or her buses transported per hour, per day and per month. It then automatically gives you details on earnings and who got what.
This is why some of us believe that for this kind of technology to be effective, we need a foreign-based firm to manage it—at least in the interim period.
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