Hanoi (VNA) – The capital city will spend more than 301 billion VND (18.8 million USD) compensating bus companies for operation losses this year.
The People’s Committee last week decided to order public transport services for 2008-2010 from the Hanoi Transport Corporation.
In 2008 alone, the committee ordered 44 in-city bus lines, nearly 3 million transport trips and 61,000 km of transport routes.
Total revenue, or ticket-selling revenue, set for the corporation this year was roughly 287.5 billion VND (18 million USD).
The total cost for bus operations, including fuel, human resources and depreciation, was estimated at more than 589 billion VND (36.7 million USD).
Therefore, the People’s Committee will have to pay the 301 billion VND (18.8 million USD) difference.
A corporation’s senior manager said that the city’s three-year order decision would help the company run its business better.
It would also allow it to feel more secure when buying new facilities to improve city bus services.
The corporation’s latest report showed that, on average, about 190,000 Hanoi people buy single bus tickets each day, and 200,000 buy monthly tickets.
This means that 390,000 passengers use buses each day. It also means that the buses meet only about 10 percent of the transport needs of capital city residents.-Enditem
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