Transporters lose Tk 300b in pandemic, demand loan support


DOULOT AKTER MALA | Published: August 10, 2021 08:16:56 | Updated: August 10, 2021 15:10:17


Buses sit idle at Gabtoli Bus Terminal amid a government-imposed lockdown to curb the spread of Covid-19 in Dhaka

A long shadow is cast by the current global pandemic over Bangladesh's transport sector as operators say they have so far suffered losses to the tune of Tk 300 billion for suspension of long-haul mass transportation for lockdowns.

The mass-transport operation resumes tomorrow (August 11) though Covid infections and fatalities are showing no sign of abating. The blowback impact of the pandemic on the transport sector is feared to last at least next two years, multiplying the losses.

Between March 26, 2020 and August 7, 2021, operation of Airconditioned, non-AC and normal coach (51-seater) services remained fully shut for 245 days for lockdowns in phases.

Owners say they have operated long-distance busses partially for 156 days, and continued some of the payments of wages, road expenditures etceteras.

Insiders of the transport sector said around 60 per cent or 0.5 million workers, who work on no-work, no-pay basis, are finding it hard to survive.

Even some owners cannot pay salaries to their regular staffs, too.

According to Bangladesh Bureau of Statistics (BBS), some 2.76 million of the transport-sector workers, both land and waterways, are employed as drivers, 0.27 million as helpers, 57,000 as supervisors and 32,000 as daily workers on temporary basis with daily wages.

According to bus-truck owners' association data, a total of 49 large operators have 6,435 long-route buses. And for each of the vehicles, the owners are incurring a daily loss of Tk 20,000.

There are a total of 6,435 long-route air-conditioned, non-AC or normal buses that incurred a total of Tk 128-million losses daily, Tk 3.86 billion monthly and Tk 46.33 billion yearly due to suspension of long-route bus operation.

Industry-insiders said each of the districts including Dhaka and Chattogram has some bus owners having a fleet of one to 10 buses. They are counting Tk 5.0 billion in loss on average in each of the 64 districts, totalling a gross amount of Tk 320 billion.

Md Abbas Mia, a bus driver of Shamoly Paribahon, having 35 years of driving experiences, said he used to get Tk 1050 on each of 500- kilometre bus trips.

"Now, I cannot buy food for my family members as I have no work to do," he says.

He is maintaining family through taking loans from different sources.

Mr Abbas, who lives in Joypurhat, have two children to feed.

"Stoppage of wheel stopped my earning," he rues.

Sajal Roy, a transport mechanic, says the transport owners could not continue payment of monthly salaries on regular basis owing to financial crisis.

"We are living from hand to mouth and trying to do another non-skill- based work to survive," he said.

Roy, a resident of Rajbari of Faridpur, used to get monthly Tk 20,000 to 25,000 earlier.

He said the transport owners' association extended some support from their part to drivers and helpers.

Foreman-mechanic section neither takes this assistance like them nor getting alternative earning sources.

"We have yet to get any support from government's part in this pandemic period," he added.

The bus owners alleged none of the long-route-bus owners did receive any support from stimulus package to meet their expenditures.

The long-route bus owners said they have to carry the expenditures on maintenance of vehicles, counter rent, garage rent, staff salaries, parking charge, damage of different vehicle parts such as tyre, battery, filter, brake function and AC unit during the lockdowns.

Most of the bus owners are in a way of becoming bankrupt and bank-loan defaulter.

All of the transport owners used to run businesses with borrowings from banks or non-banking financial institutions, but now burden of loan along with interest turns enormous.

Following the crisis, Bangladesh Bus Truck Owners Association (BBTOA) Monday placed four-point demand with Bangladesh Bank (BB) "for survival" of the sector.

They have sought Tk 50 billion in soft loan from stimulus packages for maintenance and paying wages of workers of long-route buses.

Also, the bus owners requested waiving the interest on bank and NBFI loans and suspending payment of instalments until December 31, 2021.

They also request their bank-loan accounts not to be considered classified and allow the rescheduling of all previous classified loans through 2.0- percent down payment.

The bus owners urged the central bank to keep the interest on transport- sector loans in block account and extend the repayment time up to next 10 years.

Ramesh Chandra Ghosh, Chairman of BBTOA and owner of Shyamoli Paribohan having a total of 800 busses, said resuming long-route bus operation from August 11, 2021 would need some investment on maintenance of vehicles to avert road accidents.

BBS data show private-sector commercial motorised and non-motorised transportations (land and waterways) need to spend Tk 645 billion for their operations.

Each luxury AC coach would need Tk 0.2 million while non-AC coach Tk 0.1 million to get ready for plying after the lockdown goes, Mr Ramesh added.

"Parts of motorized vehicles get damaged if it remained non-operative for longer period," he said, adding that around 20 per cent of the income of the companies has to be spent for maintenance purpose of vehicles.

Some 40 per cent of workers in this sector receive monthly pay while the rest 60 per cent get trip-wise payments.

"We have placed proposals to both BB and the Ministry of Finance seeking government support to overcome the situation," he said.

Mostofa Azad Chowdhury Babu, senior Vice-president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), who is also the owner of Agomoni Express, said calculation of bank interest during the lockdown period must be stopped as businesses remained shut in that period.

"It is assumed that the sector would suffer next two years until the government ensures vaccine for all," said Mr Babu, who is also director of BBTOA.

He, however, said the transport sector has received positive response from the BB on its proposal to salvage the sector.

Managing Director of SR Travels G.K Shahid, who is also vice-chairman of BBTOA, said this sector is experiencing the worst time due to prolonged pandemic.

"We had a total of 1500 workers and 70 per cent of them used to get payments on daily trips," he added.

Workers of this sector also are suffering most due to suspension of long-route-bus services, he added.

He demanded of the government not to impose rationing system on operating long-route buses in order to help them cope with the losses.

The BBS data show the private-sector commercial land and water transportations added 10.96 per cent value to the country's Gross Domestic Product (GDP).

And land and water transport sectors added up Tk 1.87-trillion value to the economy.

In Fiscal Year 2019-20, share of land and water transportations in the country's GDP was nearly 8.0 per cent.

BBS said some 3.99 million people are employed in the private-sector motorised and non-motorised land and water transportations.

Of them, some 3.3 million or 82.71 per cent are engaged in land transportation sector.

The country had a total of 2.66 million or 91.02 per cent commercial transports in operation on land routes.

doulot_akter@yahoo.com

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