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SINGAPORE: Private buses are exploring the possibility of having a different In-Vehicle Unit (IU) just like taxis that will list Electronic Road Pricing (ERP) charges separately.
This will make it easier for them to pass on ERP costs to customers in a transparent manner.
The Singapore School & Private Hire Bus Owners' Association hopes to bring this up in talks with the Land Transport Authority (LTA) in May.
It has been a double whammy for private buses with sky-rocketing fuel costs and more ERP gantries. But simply increasing the rates and passing the buck to customers is not an option for many.
In this competitive industry, the practice has been to absorb ERP increases as much as possible.
Even if they wanted to increase rates, many are already locked into contracts of up to three years at times. Besides, changing routes and timings as motorists do, is also not practical for them.
Tan Cheong Chee, Committee Member, Singapore School & Private Hire Bus Owners' Association, said: "You turn one round, you meet ERP. You make one round, you escape ERP but... (you'll have to take a longer journey). It's not worth it."
With more ERP gantries going up, the association hopes to speak to LTA about tweaking the kind of IU they use for a more long-term solution.
The association has about 2,000 members and makes up almost half of the private bus hire business in Singapore.
Mr Tan added: "By next month, our union (will try) to have a talk with LTA to implement a new measure like having a new surcharge for the ERP."
Mr Tan believes such transparency will make it easier to pass on additional charges to customers.
However, there are other issues. One that has been brought up repeatedly by drivers of private hire buses is that their vehicles can carry anything from 19 to 45 passengers. This is in contrast to cars which usually carry one to four passengers.
So they argue as to why they should be paying the same ERP rate when they make far more efficient use of the road space.
While fuel remains one big cost component, ERP charges now make up five to 10 per cent of their overall costs. - CNA/vm
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