Metro Mass Transit Spare Parts Stuck at Port for Two Years – Cezario Kale

Introduction

Metro Mass Transit Limited (MMTL), Ghana’s state-owned urban bus operator, is grappling with severe operational challenges after a container of spare parts has remained stuck at the port for over two years. In a recent interview with the *Daily Graphic*, Managing Director Cezario Kale revealed how this delay, coupled with inherited financial burdens, is hampering the company’s ability to provide reliable public transport services across Accra, Kumasi, and other urban centers.

Key Points

Background

Metro Mass Transit Limited was established to provide affordable urban transport across Ghana. However, years of financial mismanagement, operational inefficiencies, and mounting debts have severely impacted its ability to deliver on its mandate. The recent spotlight on MMTL follows widespread transport disruptions in Accra and Kumasi, where commuters have faced long waits and overcrowded buses.

Analysis

The Stuck Container and Its Impact

The container filled with spare parts, supplied by Dutch manufacturer VDL, was imported under the previous administration but never cleared from the port. According to MD Cezario Kale, this oversight has led to mounting demurrage charges and delayed repairs for critical bus components.

> “That container full of steppers was given to us by VDL Company. Our predecessors actually brought that container,” Kale explained.

The prolonged clearance process has required extensive engagement with state institutions, including the Ghana Revenue Authority (GRA). Kale noted that Metro Mass is now on the verge of clearing the container, but the financial and operational toll has already been significant.

Operational and Financial Challenges

When Kale assumed office, MMTL was operating between 120 and 130 buses, a sharp decline from the previous 185. Despite this reduction, monthly revenue has surged from GH¢8.5–9 million to over GH¢15 million. This growth is attributed to the near-complete rollout of an electronic ticketing system, which has drastically reduced revenue leakages.

> “They introduced an IT solution for collecting tickets, but it was only (utilized for) about 40 to 50 per cent (of the company’s operations). Now, we are (doing) almost 100 per cent,” Kale said.

However, much of this increased revenue is being used to service inherited debts, including unpaid pensions, taxes, and court judgments. Some penalties, Kale revealed, exceeded the original amounts owed.

Inherited Welfare Issues

Kale also highlighted the dire welfare conditions faced by employees under the previous administration. Some frontline staff, including conductors, were earning as little as GH¢770 per month. The current management has implemented a 20% salary increase and set a new minimum wage of GH¢1,300 for the lowest-paid workers. Regular salary payments have also been restored, with staff now paid by the third week of each month.

Practical Advice

For state-owned enterprises like Metro Mass, addressing operational bottlenecks requires a multi-pronged approach:

1. **Streamline Customs Processes**: Engage proactively with customs and port authorities to expedite clearance of essential imports.
2. **Invest in Technology**: Expand the use of electronic systems to reduce revenue leakages and improve efficiency.
3. **Prioritize Staff Welfare**: Ensure competitive wages and timely payments to boost morale and productivity.
4. **Seek Government Support**: Advocate for tax waivers and other incentives to ease financial burdens.

FAQ

Conclusion

Metro Mass Transit Limited faces significant operational and financial hurdles, compounded by a container of spare parts stuck at the port for over two years. However, under the leadership of Cezario Kale, the company is making strides to address these challenges through technological upgrades, staff welfare improvements, and strategic expansion plans. With continued support from the government and efficient management, Metro Mass has the potential to transform Ghana’s urban transport landscape and support the nation’s 24-hour economy vision.