— Hira Udas

Hira Udas, Chairman of the Federation of Nepalese Transport Entrepreneurs, is a well-known name in the transportation sector. Udas who entered the sector in 1960s has seen different phases of the development of this sector. He spoke to THAKUR AMGAI on issues related to public transportation. Excerpts:

What is the situation of the transportation sector then and now?

When I entered the transportation sector four decades ago, the population density was very low and so were the vehicles. The technology was also not as advanced as today. Today, the population has increased, so has the economic activities and the demand for transportation has also increased. There are too many vehicles than required.

What impacts have it had on the transport entrepreneurs?

The number of vehicles being too many has increased an unhealthy competition among the entrepreneurs. We have demanded the government to ban vehicle registration or at least stop providing route permits in the city area of Kathmandu at least for two years. The investment of the transport entrepreneurs is at stake ere.

But, wasn’t it considered a lucrative business a few years back?

Yes, it was. People earned more profit from a lesser investment. You can take example of the displacement of taxis older than 20 years or the recent government decision to ban two-stroke three wheelers and allow a micro-bus or a taxi instead. The entrepreneurs who were earning the same profit with Rs 0.2 million now have to invest about Rs 2 million to get a microbus now. Obviously, the profit margin has come down.

What do you think is the reason behind the industry attracting so much investment particularly from people who are not even involved in the sector?

Externally it looks to be a very lucrative business. People see a lot of income in the business and that even in cash (there is no credit transaction in public transport unlike in other businesses). Mostly people are tempted because of that. They buy a vehicle without analyzing what the running costs will be.