Mergers could boost transport industry

United we stand, divided we fall. This is what usually comes to my mind when I see several small business units doing the same thing. Last week, I wrote about how the increase in population in Nyabugogo had actually opened up so many business opportunities. The biggest change in Nyabugogo has been the relocation of upcountry public transport firms from the Central Business District to the main Taxi Park. New structures had to be hurriedly put up to accommodate the numerous travel companies that ply upcountry routes and one section of the Taxi Park was exclusively allocated to their vehicles. The different offices are now all occupied and one wonders where he would operate from if he were to establish a public transport company tomorrow for they will have no space in Nyabugogo. The solution in my opinion seems simple and could even benefit already existing operators. Mergers. Yes, I believe that at this rate, travel operators should seriously start thinking about merging their businesses in order to tap into the benefits that come with economies of scale especially in their highly competitive industry. They are quite many and essentially offering the same service with very little difference. The fact that most of them seem to have settled for white coaster minibuses means that some travellers can hardly tell the difference between various travel companies. I see several offices at Nyabugogo but can hardly recall other operators outside Volcano, Sotra, Virunga and International. Neither can I easily tell the difference in the quality of service offered. If there is any the line must be so thin. With all that in mind, the owners of these companies should start thinking of merging some of their companies to create bigger and more competitive companies. For example some companies do not cover certain upcountry routes and a merger with a company that does would give them that advantage. These mergers can see some of the office space dedicated to other operations like courier so that those sending and receiving parcels do not have to elbow for space with those who are intending to travel. The courier business is a growing segment for the travel industry that needs some streamlining. After merging into bigger entities, I am sure the travel companies will be in better position to access credit from the banks to grow their fleet and to modernise their operations. Operators should also think out of the box and not only think of having cars to ply up country routes. Instead they can have some more set aside for hire. This helps to ensure that daily operations are not interrupted when some of the buses are hired. Thinking big could even see them acquiring more comfortable buses or even bigger ones that can transport more people. In the game of beating off competition nothing should be left out. And joining hands could indeed be the best strategy here. After reading about the troubles faced by Onatracom Bus Company, I think private operators should be positioning themselves to take on the ailing transport giant. To do this effectively, the small and divided reality of most companies should be changed to a united front that is big enough to meet the challenge expected. I strongly believe that we shall be better off with a few big companies than several small ones scavenging for the same travellers.ssenyonga@gmail.com