Road Logistics : THE NEED FOR SCHOOL BUSES WITH FAIR FARE

The recent squabble on the fares of school buses in Malaysia seems to be so uncertain. With various conflicting news published on the news papers daily appears to be misleading everyone who are interested in the updates of the case. This does not just affect the parties that are directly involved Public Land Transport Commission (SPAD), school bus operators, schools and parents, but it also depresses the logistics industry as well as distresses the people of Malaysia. Let’s briefly glance through the case.

A point to note first is that the school bus fares in Malaysia were last adjusted in August 2009. With an increase of RM 6.33 per month, the bus fares of the school buses operating in urban areas were RM 27.43 for the 1^st kilometer and RM 2.02 for subsequent kilometers. On the other hand, the fares of school buses operating in rural areas were increased by RM 4.76 to RM 20.61 for the 1^st kilometer and RM 2.02 for subsequent kilometers.

However, after 4 good years, it all began when Federation of Malaysian School Bus Operators Association in their Annual General Meeting in 2013 decided that the bus fares in Malaysia should be revised for an increase up to 40%. The reason for the association to reach such decision is due to escalating operational cost of its 14,000 school bus operating members. The rising cost is largely contributed by the hike on price by RM 0.20 for RON 95 and Diesel fuel. On the other hand, the new safety regulations and 30 years limitation imposed on the use of school buses also found to be burdening. Along with these factors, the spare parts and maintenance cost also rose.

However, towards the end of year 2013, SPAD responded sternly towards the association that school buses are not allowed to increase the fares without its consent and even rejected the proposal for the 40% increase of bus fares. SPAD’s Chairman, Tan Sri Syed Hamid Albar acknowledge the problems that the bus operators are facing but they will have to wait for SPAD’s decision on the new rates tentatively to be announced in March 2014. One key reason for SPAD’s verdict will follow later is because a study conducted by the authority on appropriate fare increment is still on-going. At the same time, the authority is looking into how it can use market forces to transform the industry as well as methods which will allow school bus drivers to supplement their income. SPAD in one of their press release commented that they are looking into a raise in school bus fares at the rate of between 20% to 30%.

In early 2014, it was seen that the talks between SPAD & the bus operators associations failed and the dilemma became a shoddier crisis. At one end, the Peninsular Malaysia Bus Drivers Association through its president, Amali Munif Rahmat insisted on the implementation of 40% increase of school bus fares by the 1^st January 2014. On the other hand, fearing a halt or strike by the school bus operators throughout Malaysia if the bus fares are revised, SPAD without hesitating suggested new solutions such as Parent-Teachers Association to operate school buses. In addition to this, the authority also encouraged independent and private vehicles to be engaged by parents to send their children to school as currently, for every single licensed school student ferrying vehicle, there are 3 illegal vehicles are operating concurrently. SPAD further promoted that it welcomes any newcomer into the industry by granting permits, providing safety guidelines, operating standards such as colour and capacity as well as suggesting minimum fare.

Conversely, the President of National Parent-Teacher Collaborative Council, Datuk Muhammad Ali Hassan expressed SPAD’s suggestions cannot be easily accepted and executed as such measures requires funds and suitable manpower. Instead, he suggested that SPAD should conclude this matter with the current school bus operators by negotiating in a win-win manner. Simultaneously, parents of school going children are puzzled with the never ending panorama of the issue, conveyed various views and made decisions in accordance to their affordability. Some parents found that the increase in bus fares are still reasonable, some of them has no choice to reduce expenses in some way of rather to be able to pay for the bus fares while some parents decided to send their children to school by themselves.

With all of these swelling issues, it can be summarized that there is lack of planning and forecast in any decisions called for, immaterial if it is initiated by the government authorities, private organizations, associations or individuals. What seems to be really saddening is that this latest predicament involves an industry close related to the education and affects the young schooling children who are the future of this country. Besides that, this issue is becoming a universal laughing object for the reason of Malaysia being unable to resolve a domestic logistics problem while aiming to be a vital logistics hub worldwide. Below is what we can ponder about.

·         Increase of fuel prices has its chain effects to school buses directly and indirectly. Firstly, it injects the cost of fuel for the buses. Indirectly, it will in unison raise all other costs such as spare parts, tires and manpower. Of course, we understand that the Malaysian government needs to reduce the fuel subsidy towards its people for better sustainability and support the development of the country. Nonetheless, other methods can be adopted. One of the solutions can be considered is fuel subsidy to be given to the bus operators only. Secondly, to be fair, the school bus operators should be allowed to apply surcharges just like how the interstate express buses do.

·        SPAD imposing a 30 years limitation for school buses usage has its benefits in terms of safety perspective. Then again, it has to look into the affordability of the operators whether they are able to cope with such changes or will it lead to them discontinuing their service. Of course, the government offers rebates of RM 10,000 and a loan scheme with 2% flat interest rate from Bank Simpanan Nasional to buy buses in addition to RM 100,000 worth of insurance coverage for school children who uses school buses. Question arises if any bus operator can qualify for the loans? What if the government taxes applicable can be exempted for school buses? I believe that will be more viable and acceptable as school bus industry is one the key support to our children’s education.

·        There should be transparency in the mechanism used by the government and the bus operators in calculating the school bus fares by including all operating expenses. Of course, we cannot see the calculation for every single bus operating in the country. Instead the figures can be shown on average basis with the data collected by the respective authority in urban and rural areas. With this, I bet that even parents will be able to understand the issue better instead of being in daze and bear the cost without justification obtained.

·         The idea of Parents-Teachers Association (PTA) to run school buses operations is good because the bus fares can be controlled and the quality of the bus services can be monitored. Still, PTA exists as a formal organization composed of parents, teachers and staff that are intended to facilitate parental participation in a school. If by adopting this idea can assure that the purpose or mission of PTA will not be affected, then, it is definitely a great idea to go for.

Latest development on this case sees SPAD coming up with wiser ideas involving flexibility that will generate more income for the school bus operators instead of raising their fares. The commission is looking into allowing the bus operators to place advertisements on the buses. To kick start the process, SPAD is in the midst of discussing the idea with the us operators and advertisers. Tan Sri Syed Hamid Albar also added that SPAD is also exploring the approach of allowing the buses to serve as feeder buses after the school hours to supplement their income. Meanwhile, parents are welcomed to make a formal complaint to SPAD via the official hotline should they feel dissatisfied with school bus operators raising the fares prior to official announcement on new fares by the commission.

Well, it is now entirely depends on the relevant parties to decide what will be the right methods and solutions that will determine the future shape of the school bus industry. Of course, if they really cannot accomplish an apt judgment for issues like this, something is really wrong with the leads. One thing for sure is that we do not want to be left behind in any way especially with matters pertaining to education.

Hope it made some sense.

Thank you for your precious time.

Best regards,

Mahinder Singh Malhi