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The JUTC plans to order 100 new buses.

Arthur Hall, Senior Staff Reporter

THE STATE-owned Jamaica Urban Transit Company (JUTC) will continue to bleed money this year despite several measures by the new management to improve its efficiency.

The Government is projecting that the JUTC will lose $1.1 billion for the year.

This will be just a shade better than the $1.2 billion which it is estimated the company lost in the 2007-2008 fiscal year.

According to the administration the JUTC will reduce its wage bill by more than $300 million this year by cutting staff and overtime payments. Already, the company has made almost 400 posts redundant as part of a staff-rationalisation programme.

However, the saving in that area will be offset by a sharp increase in fuel cost. Last year, the company spent approximately $626 million on fuel. This is expected to increase by more than 60 per cent to just over $1 billion.

The JUTC is also expected to almost double the money it spends on the repair and maintenance of buses. These costs will move the company's operating expenses to $4.3 billion, up from $3.6 billion last year.

Revenue increase

On the other side, the JUTC is projecting that its revenue will increase to $3.2 billion for the year. This will represent an almost 40-per cent jump over last year. The company's revenue is expected to be boosted by improvements in its rollout of buses on the roads.

The JUTC has already announced that it will be repairing several buses which are now parked, and acquiring 100 new buses. Illegal bus and taxi operators will also be targeted as the company tries to increase the number of passengers it carries to 77 million, up from the estimated 52 million it carried last year. The JUTC could also see an increase in its revenue this year with an expected hike in bus fares.

It is anticipated that the Transport Ministry will shortly ask the Office of Utilities Regulation to consider an increase in the fare structure of the bus company.

The Government is also expected to provide some budgetary support for the JUTC, an expense that was not included in the 2008-2009 Estimates of Expenditure. However, JUTC officials have said that this was an oversight which will be corrected.