A new partnership between the Intercity STC and MUUS Transport Alliance Cooperation is expected to see some 100 new buses from China brought in to augment the fleet of the Ghanaian company but August 2024.
This was announced by Nana Akomea, the Managing Director of Intercity STC, during the official signing ceremony in Accra on Thursday, June 27, 2024.
Speaking at the signing ceremony in Accra, Nana Akomea said that the timing of the partnership will be beneficial to both companies.
“We are very happy to have them on board. We have signed a few partnership agreements over the period but this particular occasion is totally different. This is the first time we’ve had our partners representing with about 20 of them, in fact, they literally outnumber us in our own office and clearly, it shows that they are serious about the partnership and we are very happy about that.
“We are happy to have them on board because it is a good time for the transport business. The macro environment is relatively stable. Like any business, if the macro environment goes bad, the business goes bad, and we in the transport business, when the currency is not stable, it affects the price of fuel immediately… so, we are affected directly by the macro environment.
“And indeed, in the period 2020-2023, when, because of the COVID, we all know the macro environment became unstable and the dollar price kept rising every week, literally. It was a very tough period for the transport business because you are not able to increase transport fares any time the price of fuel changes. So, it was a very tough operating environment, but now we agree that in the last 12 months, the macro environment is different and relatively more stable… so, we’re happy to have you on board at this time when the operating environment promises better margins for the business,” he said.
Nana Akomea added that the agreement provides that the two companies will run this agreement on a partnership basis, on a revenue sharing arrangement.
He added that Intercity STC may consider buying the buses eventually.
“So, the MoU will take 20% of the gross and they take 80%, out of which they will do their insurance and maintenance and drivers salaries and all of that, and then the next clause provides that STC may opt to lease or buy the buses on mutually-acceptable terms… and if the price is right, and the technical specifications are right, we have the option to buy the buses,” he added.
On his part, Dr. Seidu Mumuni, assured the management of Intercity STC of its commitment and indicated that they are in to deliver on their partnership to better the transport sector of the country.
“I want to assure STC that MUUS International is a serious company. It is not only STC but you can see other companies that are here to join us to give us their versatile support. There is a bilateral discussion, for instance, with the Ghana National Fire Service now and with the Ministry of the Interior to supply them with fire trucks, the tools and give them training, and planning ahead to establish the first fire academy in Ghana.
“We are the only company that shows our dynamism and I am charged that really, we are going to really deliver. Our team is ever ready to invite STC to China,” he said.
The STC-MUUS agreement will bring in buses manufactured by King Long Automotive, one of China’s biggest coaches’ manufacturers.
As part of the partnership, MUUS will introduce electric buses, electric assembling plants, retooling, ultra-modern bus terminals with technical yards for servicing of the buses, among others in Ghana to improve trade within its borders and across West Africa.
Source: www.ghanaweb.com
