Investors and Owners

The Vision 2030 Jamaica – National Development Plan identifies extensive and high-quality infrastructure as a pillar of international competitiveness that: enables the efficient functioning of markets for goods, services and labour; increases the productivity of economic processes; and improves decision-making by entrepreneurs and other economic actors.

The returns to investment in physical infrastructure tend to be high in countries at Jamaica’s income level, especially considering the relative underinvestment in physical infrastructure in recent decades. These higher growth rates eventually increase the size of the economy and the levels of funding available for other services such as health and education over the medium and long term. High-quality infrastructure contributes to social and environmental goals, by improving access to public services, reducing negative environmental impacts and supporting the sustainable use of natural resources.

NTAG’s position is that if the Transport Sector Plan for Vision 2030 Jamaica is going to ensure the development of world-class transport infrastructure and services that contribute to the competitiveness of our producers and improved quality of life for our people, then it must provide for and facilities an environment for entrepreneurs to invest with a reasonable expectation for a return on their investment.

These entrepreneurs according to NTAG covers Investors and Owners in the Public and Commercial Transportation Sector operating as or through Registered Limited Liability Companies as license holders incorporating all classes of road licenses.

NTAG’s position is that as a private sector group of individual investors and operators all the changes it has outlined so far will allow for among other things the following:

1. More Investment: To achieve the 2030 goal and vision significantly more investment will have to be made to build out a modern and efficient fleet of vehicles, supported by a team of well-trained and compensated drivers and conductors.

Allowing investors to structure their business in a way that would facilitate accessing funding via the stock market will be a key driver for investment and funding to facilitate and accelerate growth.

2. ESOP: Allowing all stakeholders in the sector an opportunity to secure a stake in the profitable growth of the sector will allow for greater alignment of interest. NTAG wants to see drivers and conductors offered opportunies to invest by way of equity participation in the companies they are working and contributing to.

3. Transportation Centers: Importantly the Public and Private Transportation Sector will work with the Government in a Public Private Partnership to build out and operate suitable located Transportation Centers. There is clear mutual benefit in this.

“A major part of the problem is that the Transport Authority is issuing licenses and not regulating with any vision. There are some 4000 to 5000 public passenger vehicles terminating in Montego bay daily, but the terminal centre does not even have the capacity for 700 units. The failure of the authorities to establish adequate facilities and control the influx of unregulated or robot taxis in the system have resulted in parking violations and a continuous cat and mouse game with the Police and Transport Authority officers. This fuels allegations of corruption against members of both state entities, who are seen as enablers of the chaos on the roadway. The facilities provided are woefully inadequate based on the number of vehicles operating in the parish and the enforcement is weak. The routes currently terminate anywhere in the city and unless we have a proper transportation system it will never be solved.” Deon Chance, President St. James Taxi Association.

According to the Vision 2030 Jamaica – National Development Plan additional transport centres are planned for other areas of the island, although these are not directly under the Ministry’s portfolio. The Urban Development Corporation (UDC) is spearheading plans for a Transport centre in Downtown Kingston. Significantly, there are also proposals by Local Government Authorities to construct municipal transportation centres in areas such as Spaldings, Clarendon and Darliston, Westmoreland.

4. Professionalization of the sector: Making public transportation more acceptable as a viable career choice and helping younger people make a success of the public transport trade is key to NTAG’s vison for 2030. Supporting the development of new ideas, and celebrating achievements by Transporters is also crucial to this development.

“I see a public transportation system where the players in the industry will understand that this is not just a means to ‘eat a food’. It is a business that we are delivering and we must be able to provide the highest standard of public transportation.”
Willard Hylton Managing Director Transport Authority

5. Routes: NTAG’s view is that while routes will continue to be determined by the Transport Authority based on national population requirements, entrepreneurs and investors will be able to apply for other routes they would like to operate on. Routes should not be exclusive, allowing more than one company to operate on the route. This allows for healthy competition and importantly provides the public with real choice in transportation services islandwide.

7. Fare Structure: To ensure an open free market with fares, NTAG believes operators should offer clearly differentiated services so as not to charge the same fare on the same route. Fares must be noticeable and distinctly different.

Different route prices will be encouraged by NTAG, encouraging investors to establish and operate differentiated services in support of price differences. This will allow the consumer to have choices and for operators to compete on service and customer satisfaction.

Importantly NTAG sees the system of differenced route prices as a self-check mechanism that will encourage competition and discourage price fixing and collusion in price setting.

8. Application for routes:

Taxi Associations: There is a widespread view within the sector that the vast majority of the current taxi associations are not delivering the expected value and type of services intended.

The Transport Authority engages and uses the over 30 route taxi associations islandwide to help manage the annual renewal and application for new operating road licences. The Associations as member organsions are to also provide other member services and benefits, which drivers and conductors claims many do not do.

As such NTAG is proposing that the current association system be replaced to one using technology and registered limited liability companies, with board-based ownerships in the form of shareholdings from its members.

Transport Authority will therefore monitor and regulate the sector through Registered Limited Liability Companies and would allow for applications to be submitted and processed online digitally.

Registered Limited Liability Companies will be able to apply to the Transport Authority for operators licenses for Passenger Services only or Passenger and Courier Services, to be used and deployed as its business model and plan dictates.

Individual Owners, Operators and investors not operating as a registered company will continue to apply to the Transport Authority for individual operator’s license for Passenger Services only or Passenger and Courier Services. This can either be submitted and processed online digitally on an individual basis or through a registered limited liability company.

These individual Owners, Operators, and investors with a valid license in hand can now choose to work with a registered limited liability company that best suits their requirements. Terms and conditions to be agreed between the parties.

Next Part 5: Drivers And Conductors – Inability To Attract And Retain Suitable and Qualified Drivers And Conductors.

Part 3: The Jamaican People Deserves Better – To Achieve Vision 2030 For The Public Transportation Sector A New Business Model Is Needed Now…NTAG