Why Is The (jutc) Losing Money When It Can’t Meet The Demand For Seats/​

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The Jamaica Urban Transport Company (JUTC) in a release yes­ter­day from it’s out­go­ing man­ag­ing direc­tor Colin Campbell said it had no prob­lem with the man­age­ment audit ordered by the min­is­ter of Transport Mike Henry.
Said Campbell : “Nothing is wrong with it. It’s a new team com­ing in and they would want to see the sys­tem that was employed by us, to see if we are doing things in the best way. A man­age­ment audit is dif­fer­ent from a finan­cial audit — it’s just to exam­ine the process­es”.

Hum um , why not a finan­cial audit?
If the com­pa­ny is bleed­ing mon­ey would­n’t a finan­cial audit be the way to go to deter­mine the extent of the bleed­ing?
Why is there bleed­ing?
Then do a man­age­ment audit to see whether the plans in place are effec­tive (which they could­n’t be in light of the oper­a­tional fail­ures).
Then rem­e­dy that man­age­ment fail­ure?

jutc-buses

jutc-bus­es

It was just this week that the Minister Mike Henry said that the com­pa­ny was in urgent need of “gov­ern­ment sup­port”, and that the audit is aimed at iden­ti­fy­ing crit­i­cal oper­a­tional issues that are impact­ing effi­cien­cy.
No,no,no Mike Henry you go look at the mon­ey first not the peo­ple.
When you iden­ti­fy how much the com­pa­ny is los­ing ‚then you look at the why.
After that trust me the “who” will fall into place.
Said Henry in his release, “the JUTC needs 305 new bus­es over the next two years to meet the demand for seats, but only 30 can be pro­vid­ed in this year’s bud­get”.

Jamaican Railway

Jamaican Railway .….

This makes me laugh !!!!
This is what hap­pens when you have politi­cians run­ning com­pa­nies. The head of the board is the for­mer Jamaica Labor Party Member of Parliament Gregory Mair. from North East Saint Catherine my neck of the woods.
The out­go­ing Managing Director is Colin Campbell a People’s National Party func­tionary.
You get the pic­ture now ?
This is why Tax-pay­ers mon­ey is always going down the tube, par­ty polit­i­cal hacks run­ning com­pa­nies and head­ing boards.

Former Jamaica Omnibus Service, Buses

Former Jamaica Omnibus Service, Buses

Could this be the rea­son why the new Minister has­n’t ordered a finan­cial audit which would be far more sen­si­ble ?
Could it be because they real­ly don’t want to get to the truth as it is a cook­ie-jar for both par­ties much the same way Air Jamaica was which led to it’s demise?
If there is a demand for more seats which the com­pa­ny is inca­pable of fill­ing why is the com­pa­ny los­ing mon­ey?
Secondly why are tax­pay­ers expect­ed to keep throw­ing good mon­ey at bad man­age­ment .….….……or worse?
If the com­pa­ny can­not meet the demand for seats how in heav­en’s name is it loos­ing mon­ey?
The colos­sal mis­man­age­ment of the long defunct Jamaica OmniBus Service (JOS) should be a crash course in how to destroy a com­pa­ny . Yet it seem noth­ing has been learned from the fail­ures of the (JOS) nor the Jamaica Railway Corporation.

Former Air-Jamaica airbus...

Former Air-Jamaica air­bus…

As a small busi­ness own­er I have to oper­ate my busi­ness and make it prof­itable. I must meet oper­a­tional expens­es and turn a prof­it in order to stay in busi­ness .
If I am unable to do that I must fold the busi­ness as there is no Government bail-out > Why should tax­pay­ers con­tin­ue to fund these black holes which are pri­vate kit­ties for a lot of con­nect­ed peo­ple?

Business is finding a need and filling that need, period..

Disregard every con­vo­lut­ed crap you ever heard and focus on that fact, it is demand which fuels sup­ply, oth­er­wise it’s the cre­ation of goods and ser­vices which peo­ple are inclined to buy into.
If there is demand for bus ser­vice over and above what the com­pa­ny can pro­vide yet the com­pa­ny is los­ing mon­ey the prob­lem is incom­pe­tent lead­er­ship .
Or worse.
Part of man­age­men­t’s respon­si­bil­i­ty is to find fund­ing source/​s which allows the com­pa­ny to build out it’s ser­vice, of course with strate­gic growth and prof­it fore­cast which takes into account poten­tial mar­ket hic­cups.

Taking every sin­gle expen­di­ture imag­in­able in oper­at­ing an air­line the bot­tom line result is thin prof­it mar­gins even in the best of times. Airlines through the years, have earned a net prof­it between one and two per­cent accord­ing to (Airlineeconomics).
All things con­sid­ered strict con­sid­er­a­tion must be giv­en to how many per­sons are hired per air­plane in the fleet, this is crit­i­cal. It is the dif­fer­ence between sol­ven­cy and insol­ven­cy.
Can it be said that Air Jamaica was oper­at­ed this way? I think not !
If the very same prin­ci­ple is applied to the for­mer Railway cor­po­ra­tion, the for­mer Jamaica Omnibus Service and now the Jamaica Urban Transport Corporation, can the author­i­ties see why these enti­ties have been huge caul­drons of waste, loss and cor­rup­tion?

Numbers do not lie, enti­ties of this nature can­not be places where polit­i­cal patron­age , nepo­tism and chi­canery rule yet prof­it is expect­ed.
The deci­sion must be to oper­ate as real busi­ness or let the peo­ple know that the JUTC will be just anoth­er waste­ful mon­ey pit like all of the oth­er attempts at pub­lic trans­porta­tion which pre­ced­ed it.