Thursday, September 04, 2008
By Atif Nadeem

LAHORE

WHILE keeping in mind cost-factor for importing new CNG buses, the transport owners have demanded the government import new CNG buses from India, which will be used for public transportation in Punjab.

The Punjab government has already announced import of at least 800 new buses to meet the needs of public transportation especially after a deadlock over the increase in fares in urban areas, which have caused a great financial crunch for the transport owners as they have almost failed to manage cost of oil and diesel.

While talking to The News, the office-bearers of Urban Transport Union said the provincial government had decided to import at least 800 new CNG buses for which the government would provide 25 per cent subsidy to the transport owners so that they could ply more new environment-friendly buses on urban routes, which would also help alleviate burden of increased fares on the commuters as CNG would cost the transport owners less than the oil and diesel.

The transport owners said though the provincial government had decided to provide subsidy yet the cost-factor would make the transport owners bankrupt in the near future if the provincial government would not provide loans to the transport owners so that they could purchase these buses.

They said the provincial government should ask the Indian government for CNG buses as it would reduce the cost to be incurred on the import of the buses from South Korea and Japan for the transport owners.

Urban Transport Union President Arshad Khan Niazi, while talking to The News, said the transport owners were worried about the cost of the new CNG buses to be imported as they had already taken loans from different banks and they were paying heavy instalments to the banks and, in this condition, it would be difficult for them to ask the banks for financial support in form of loans when they were already on the

brink of bankruptcy due to unprecedented hike in oil and diesel pries. He said the government had not provided them subsidy in the wake of rise in the oil-prices which had caused a great financial loss to all the transport owners, especially for the small transport owners. He said the government had not increased fares of the public transport as cost of per kilometre had tremendously increased for the transport owners.

The former government of PML-Q had provided them subsidy when oil prices had increased in 2005 but, later, the government had not paid even any subsidy to them which was highly unfortunate for the transport owners.

Talking about the new CNG buses, he said the government should take measures regarding provision of loans to the transport owners, as they would not be able to purchase new buses with their own capital on account of losses they had to bear in the last few months. He said the government should purchase buses and hand them over to the transport owners so that they could charge fares according to the wishes of the government and the public. The News has also learnt that many transport owners had contacted to the private-investors who provided the transport owners with capital for the sake of their interests on that money. The banks have almost denied the transport owners any loans for the CNG buses as the transport owners are already bankrupt and the government has pledged to provide 25 per cent subsidy to the transport owners on the purchase of new buses. The transport owners were of the view that the government should import CNG buses from India as it would not compel the transport owners to ask for more loans from the banks or the private-investors as it would be harmful for the new system.

They said a CNG bus from India would not cost them more than Rs 1.5 million while they had to pay at least Rs 4 million for a new bus which would be assembled in Pakistan but with Japanese or Koreans engines and gears. They said the transport owners would not have to take loans from the banks and they would also fix fares of public transport vehicles on the urban routes according to the wishes of the government. They said taking money from private-investors would be highly risky for the system, as they would seize their buses whenever they were short of their instalments along with the interest rates. They said the government should seriously think about this option, as it would help the government provide financial support to the transport owners. They were of the view that if the Indian films could be screened in the Pakistani cinemas then what would be the wrong with the Indian buses to be plied on the Pakistani roads.

They also said the government should not impose its will on the transport owners but, on the other hand, the transport owners should be consulted with in a friendly manner so that they could make public transport system without any impediment. They said the provincial government should not be reluctant to give subsidy to the transport owners by Rs 50 per litre so that they could charge Rs 10 from the commuter on the first stage of the fares on public routes.

http://thenews.jang.com.pk/daily_detail.asp?id=133731

Laanat on these Transporters as well as Laanat on this govt.... sab milay huway hain.

This is 2008, profits mean more than principles. Nobody is going to spend a penny more than they have to in order to support a principled stance.

In order to support principles, governments must be strong and in the long term make principles profitable. The entire world buys things from China, why not import CNG buses from there?

the punjab government must have found bigger scope for Kickbacks from India and hence invested there and others want to follow.

Laanat hai inn loogon pe . We are now DEMANDING that we want Indian products? WELL DONE INDIA!! Indians have succeeded in proving that their shitty products may be rejected else where in the world, even in their own country, but Pakistanis can't live without them. Beghairti ke bhi hudd hoti hai. If we can make Al-Khalid tanks what is so complicated in making some shitty CNG buses . Forget the cost of import and everything when are we going to develop our own industries. This means that if we import buses from India we also import spare parts from India thus creating more employment for them, while our own people will die jobless. I hate this government.

Its an important point that you raised. Lets be honest here. Our defence manufacturing capabilities are hyped. And we, the stupid people, fall for it. May be, we can see the reality now.

Why not buses from china? I’m not a conspiracy theorist but this all sounds a little fishy to me. The subsidies of the previous Musharaf led administration have been taken away by the zardari and his Indian loving cronies. Now the transport owners are looking towards rubbish made Indian buses to dominate our transport routes. It seems like some sort of devious plan, with Zardari talking about selling our coal, being a force multiplier for India and now this.

Aaaaaaaaaaaaah ...

Jang group ... at it again ...seriously someone set JANG Group, all its anchors, directors, owners & coloumn writers on fire.

That oughta put this indian asset out of business once & for all

Dude... what the hell are you talking. My point is that if we can make complex vehicles and missiles then why not some stupid buses that even an uneducated mechanic can design.

Hmm I don't know, but I guess at:

Lack of will to start these businesses.


The fact that the military can produce JF-17s at PAC Kamra or Al-Khalids at Taxila doesn't mean that we just without any probs can produce civilian vehicles. Civilian vehicles are supposed to be produced by civilians, and if civilians don't produce them for whatever reason, then the busses won't come, even though Nuclear technology is available.

It's not lack of knowledge, the knowlodge isn't difficult to find among people

The issue here is not the ability to manufacture but the cost at which it is being manufactured. If an Indian CNG costs Rs 1.5 million to import compared to a local assembled bus at Rs 4 million, the cost difference is to large to be ignore by the transporters.

it won't be after imposition of 500% duty.

that oughta fix the situation; btw ... Jang group .... can anyone report any fire on their office since i last posted in this thread?

Well.. my point is.. you dont really make those complex vehicles and missiles. You get them from other countries and repaint them.

Alternatively, it could be that there is weak relationship between the private sector and the defence establishments..

So the issue here is politics and not economics. Back to your "core" issue?



BTW its not the Jang group but part of the Pakistan Trade Policy now.

link

Two of several dozens of CNG bus suppliers in China

AnKai Automobile Co., LTD: http://www.ankai.com/english/index.asp

The model shown below costs 200,000 Yuan ($29,250).




Yaxing Coach: http://www1.yaxingkeche.com.cn/en/

It uses a Benz OM457LA diesel engine and not a CNG engine .

Anyway a Benz powered Bus at only $29,250. I am surprised.

Don't mind this guy he is an Indian.

Check out the original news(says a bus company in the city of Wuxi had ordered 50 CNG buses with NQ170N engines worth 10 million yuan in total; top speed: 90km/h; fuel consumption: 24 cubic metre per 100km). Hope you read Chinese

http://auto.sina.com.cn/news/2008-09-03/1055406914.shtml

http://auto.sina.com.cn/news/2006-06-05/1038190888.shtml


Surprised? Are you really?

If you are interested, I can give you a list of Chinese manufacturers that make CNG buses, coaches, cars and all that. Mind you, the list will be very long.

Many Chinese CNG buses were imported in the past in Karachi, I see no reason why we cant do the same in the future, plus, we may get these companies to start assembling locally.

Indian CNG Buses are costing Rs 1.5 million while Chinese are 50% more expensive at $ 29,250 = Rs 2.25 million.
( $1=Rs77) .

Mind you we are now talking of a Chinese NQ170N (whatever) engine and not a Benz.

/jingoism

They can be FREE .... but we don't want them.