Business News of Monday, 9 March 2015
Source: Graphic Online
The Managing Director of Intercity STC, Mr Samuel Nuamah Donkor, says the new board is determined to turn round the fortunes of the company to justify the President’s intervention to save it from being sold.
He said from an undignified position of borrowing from the majority shareholder, Social Security and National Insurance Trust (SSNIT), to pay salaries, the company has, since January, this year, been able to save part of its revenue after paying the salaries of its 447 employees.
Mr Nuamah Donkor said since March, 2014, when the reconstituted board and a new managing director (MD) assumed office, Intercity STC’s monthly income had averaged GH¢1.2m.
In an interview last Monday, Mr Nuamah Donkor said key to the revenue turnaround was the board’s approval of the decision to rehabilitate a number of buses that had been sitting idle due to the lack of spare parts to augment a dwindled fleet.
The nominal size of Intercity STC’s fleet is 36, according to the Chief Engineer, Glory Bani, but it had only 15 roadworthy buses when the new team assumed office.
According to officials of the company, another package from Focus Four would see the company procuring 15 buses within the mid-size and mini ranges comprising Toyota Coaster and Toyota Hiace Super roof. Two Coaster and five Super roof buses have already arrived at the Tema Harbour.
Mr Nuamah Donkor said the company’s revenue was expected to increase by the end of the month following the inauguration of two 50-seater Mercedes Benz buses last month and the arrival this week of a 51-seater MAN Lion coach. The three buses join the fleet under alliances the company has entered into with Focus Four Company Limited and BMG Limited respectively.
The New Swift Shuttle Service, launched in January, 2015 as a special project in partnership with Smice International Limited, with 25 mini-buses, is also expected to improve Intercity STC’s revenue in due course.
Besides its core business of running bus service, the company generates income from other affiliate services. These include the valuation of all government vehicles whose services are also available to the public, conveyance of parcels, training of drivers and the provision of park-and-ride facilities at its various terminals.
Mr Nuamah Donkor described gains made so for as modest, considering the numerous initiatives taken to revamp the company.