RITCO aims to improve Public Transport

Kigali, 27th April, 2016-Rwanda Interlink Transport Company Limited (RITCO Ltd), a Public-Private-owned Transporter established to mitigate Public Transport in rural and urban areas is expected to kick off operations soon.

 

ONATRACOM has had difficulty fulfilling its socio-economic mission, due to high institutional and operating costs, as well as poor management of the institution. This was confirmed by an audit conducted by Ernest & Young in 2012.

  

ONATRACOM has been operating at an abnormal operational loss; the revenues generated from the current operations do not suffice to curb outstanding arrears. As of 2013, the institution had accumulated almost Rwf 5 billion in arrears related to suppliers, taxes and social security contributions liabilities.  So far the Government has paid off ONATRACOM creditors’ equivalent of Rwf 2,126,267,511.

 

To revamp the business done by ONATRACOM, there is need for restructuring the institution so as to improve its institutional and operational efficiency. Based on the Cabinet decision of 12 June, 2013 to place ONATRACOM under a private management, MININFRA  proposed that Government of Rwanda should  form a joint venture company with Rwanda Federation Transport Cooperatives (RFTC) and continue providing public transport services, especially in rural areas.

 

The Cabinet meeting of 16 December 2015 approved the establishment of a joint venture between the Government of Rwanda and Private Investors on Public Transport.In this regards, RITCO was established in order to continue providing public transport services, especially in rural areas.

 

According to the Minister of Infrastructure, Honorable James MUSONI, the existing ONATRACOM buses will be operating under the supervision and management of RITCO board members already in place and the increment of buses will enhance improved Public Transport network, better service delivery, reduction of time on bus stops and lead to a sustainable and competitive business model.

Honorable James Musoni reaffirms that the initiative is prolific because the company now elaborated a business plan highlighting beneficial routes on both local and international scene, where serving regional routes will top up the company income, reduce local transport costs and increase efficiency in service provision.

 

The company shareholders, the Government of Rwanda and Rwanda Federation of Transport Co-operatives (RFTC) are finalizing basic proceedings to start operations in premeditated routes.

 

Colonel TWAHIRWA Dodo the chairperson of RFTC said that RITCO will be operational countrywide with modern buses already procured abroad.” We have ordered 168 buses which will be supplied in separate phases. The first phase made up by 50 buses will be supplied in  three months to come. We have ordered modern and comfortable buses to transport people in a delightful manner”.  Said Col. Dodo 

 

RITCO aims at becoming a regional transporter but it will initially start by serving local areas and then after receiving all procured buses it will operate in other neighboring countries.

 

Colonel Dodo assures that procured buses will be categorized in two classes, VIP class to transport people who do not wish to travel in countryside places with their own cars and second class buses that will serve ordinary people on affordable price.

 

Apart from transporting many passengers seated comfortably, RITCO buses will also have adequate places designed to transport baggage. This will facilitate countryside traders who now spend much money to pay private cars which transport commodities from Kigali and other country cities to their shop destinations appropriately, hence immense transformation.