Transport firms to U-turns to pass on costs

General secretary of Ho Chi Minh City Goods Transport Association Thai Van Chung said 100 association members had upwardly revised transport costs by 15-20 per cent, depending on goods categories and travel distance.

According to Chung, since petroleum make up 40-50 per cent of transport costs, recent diesel oil price upsurge of 24 per cent to VND18,300/litre would force transport firms to augment fares by at least 15 per cent.

In respect to the taxis sector, the Ho Chi Minh City Taxis Association said its over 30 business members with around 10,000 vehicles were about to submit procedures to competent state agencies asking for 4 fare upsurge.

Chief of Ho Chi Minh City Transport Department’s road transport management division Le Trung Tinh said as of March 1, 2011 two taxis businesses fulfilled new fare registration procedures with a 12 per cent hike on current fares.

“Remaining taxis firms will engage in new price registration on some next days with prospective hikes ranging between 10-15 per cent,” Tinh forecast.

Deputy director of Mien Dong Coach Station Thuong Thanh Hai said its 10 businesses running inter-provincial routes informed the management about their proposed hikes of 15-20 per cent on current fares.

Deputy director of Mien Tay Coach Station Huynh Hai Oanh said two firms  had registered to raise their prices by 18 per cent.

Ho Chi Minh City Transport Department’s road transport management division figures show that only 10 transport firms completed new fare registration thus far with hikes ranging from 7 to 15 per cent and the new fares were supposed to be applied en masse from March 5, 2011.

For transport firms not operating in bus station, the hike would be a bit higher of 20 per cent. “Proposed fare hike of about 10 per cent for contract-based or passenger cars is reasonable as they often not benefit from goods transport commissions like those departing from bus stations,”  Hai said.

According to Ho Chi Minh City Transport Department, for coaches running routes whose fares were not subsided by the government, the new fare level must not triple approved ticket prices. “Otherwise, passengers may turn their back on public buses,” Tinh said.