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| Passengers board the yellow bus which runs from Tân Sơn Nhất International Airport to the city centre in HCM City. — VNA/VNS Photo Thế Anh |
Viet Nam News
HCM City -- Bus companies in HCM City are planning to reduce the number of trips because of lower subsidies from the state and a lack of contracts with the city’s Public Transport Management Centre
The owners of nine of 13 bus units have told local authorities that their expenditures had exceeded their financial abilities. They said they would stop several new routes because of the continued losses.
Some of the owners said they would seek investors to buy their new buses.
In response, the Public Transport Management Centre paid expenditures for the first six months of the year to five bus unit owners who had signed contracts with the centre.
As usual, they will receive a subsidy by the end of the year after filling out all necessary forms.
For the remaining eight bus units, the city will pay a part of the subsidy even though the units have not signed contracts.
The Transport Department has proposed increasing the bus subsidy this year, but the Finance Department and other authorities must first review the financial activities of subsidised buses.
The Public Transport Management Centre has asked all bus unit owners to reduce the number of trips and submit detailed plans to ensure public bus travel in the city.
Bus owners must operate at least 12 hours on each route each day. – VNS
