STIFF competition from both legal and illegal service providers has prompted the cash-strapped Jamaica Urban Transit Company (JUTC) to ask the police and the Transport Authority to sniff out its rivals and bring them to book, in the hope that this move will allow the state-owned bus company to increase its customer base and improve its profit margin.

The JUTC, which is still struggling to cover its expenses with revenue from the fare box, also recently launched a competition to encourage more Jamaicans to ride its buses.

This latest thrust follows last year’s 32 per cent fare increase to offset the bus company’s operating costs.

But according to JUTC communications manager Gwyneth Davidson, the injection of more funds had not translated into profit.

“Profit has not yet been realised because we are still faced with many constraints, including competition from legal and illegal service providers,” Davidson told the Observer.

If the company was able to meet its ‘ridership’ target, Davidson said, it would be well placed to “cover the operating expenses”.

It was for this reason that the JUTC sought the assistance of the Transport Authority and the police to remove illegal buses and taxis from the island’s roads. This, Davidson insisted, would allow the company to at least meet its revenue target from the fare box.

Petra-Kene Williams, communications manager at the Transport Authority, told the Observer that the agency had been conducting several operations across the Kingston Metropolitan Transport Region (KMTR).

“We have conducted joint operations with the Island Special Constabulary Force (ISCF) in strategic locations such as Portmore, Half-Way-Tree and Papine to improve the viability of those who operate legally, including the JUTC,” Williams said.

In fact, Williams said that between January and March this year, 202 special operations were conducted, resulting in 528 prosecutions and the seizure of 1,207 vehicles.

Senior Superintendent Elan Powell at the police Traffic Division, told the Observer that the police continued to crackdown on illegal buses and taxis, with at least 100 vehicles – mainly cars – being seized on a weekly basis.

However, Powell pointed out that it was difficult to say how much of a significant dent the police had made, as the illegal operators simply relocated to other routes after they were caught.

“We make an impact here and it shifts to somewhere else, so the operators keep moving into different locations,” he said.

Powell said the troubled routes included Molynes Road, Barbican to Half-Way-Tree, Papine to Half-Way-Tree and Bull Bay.

Last August, when the fare increase was granted, Transport Minister Robert Pickersgill said this was necessary against the background of rising fuel prices and the cost of tyres and spare parts, all of which had been borne by the public purse.

“The government can do no more regarding further subsidies to the company and the gap in the JUTC’s revenue needed to meet its operational expenses,” the minister said.

Currently, the government provides annual financial support to the JUTC, amounting to $1.24 billion, which represents 26 per cent of the bus company’s $4.7 billion total yearly operating costs. And while the JUTC recovers $2.287 billion from the fare box, this amount is only 47 per cent of operating costs.

Meanwhile, Davidson said the JUTC should soon be on its way to improvement, as a “modest” profit was realised last September, and the company was able to cover its expenses in the month of January. She was, however, unable to give a specific figure.

In order to recover from the falling fare box revenue, Davidson said the company had been looking at various means of encouraging more commuters to ride its buses.

This includes a big money promotion, where a total of $190,000 is up for grabs each week in the competition, which began in April this year and will run until the end of this month. Each week, the holder of the winning ticket receives $50,000, while second and third placed ticket-holders receive $30,000 and $20,000, respectively.

Commuters who are fourth to twelfth placed ticket-holders each receive $10,000. The JUTC sells up to 200,000 tickets per day.

Davidson said the company also provided charters to events, such as the annual Jamaica Carnival launch at Chukka Cove in St Ann at $1,200 per person, and the Calabash literary festival in Treasure Beach at $1,500. The bus company will also take charters to the Denbigh Show ground later this year.

“Along with providing service, the JUTC is operating as a business, as we are aggressively working to get our market share up,” Davidson said.

In addition, she said that when the toll road begins operation in Portmore, the JUTC would be a high user. This, she said, was expected to allow access for free movement and more trips per day. She was, however, unable to say if the JUTC would pass the toll cost on to its customers.

“We are in discussions with the toll authorities about that because we will certainly be a high user of the toll road, and so at the end of the deliberation we will know how the toll will be applied and how the buses will be affected by it,” Davidson said.

She, however, pointed out that the toll was a business, and as such all users would be charged accordingly. Against this background, she said the toll system would certainly impact the JUTC’s operations.