HOSKEN Passenger Logistics and Rail (Hosken Pax) – which has Golden Arrow Bus Services as its main profit driver – saw a 20% decline in revenue to R1.6 billion as Covid-19 lockdown restrictions on mobility reduced passenger numbers.
But the group remains firmly on the path of technological innovation – including testing electric buses – to bolster future profitability.
Interestingly, the contraction in passenger bus operations over the year – coupled with various cost saving initiatives – meant Hosken Pax made a 19.4% savings in operating expenses to R1.27 billion (from around R1.6 billion in 2020).
Hosken Pax executives said all major capital expenditure – including its fleet replacement program – was put on hold for the 2021 financial year. This resulted in a net reduction in debt of R152.8 million from the 2020 financial year.
Executives said the significant drop in passenger volumes at Golden Arrow Bus Services triggered a commensurate reduction of the fleet, downsizing of manpower and the implementation of short-time schedules to optimally align demand with supply to contain operational expenses.
They disclosed that management temporarily suspended long term operational strategies and adopted problem-solving approaches to deal with the unpredictability ushered in by lockdown.
Ironically, the changing travel patterns of passengers brought opportunities. More passengers moved to travelling during off-peak, which resulted in better asset utilisation and cost savings.
But during the financial year, there was a dramatic increase in armed robberies aimed at buses and its passengers. Hosken Pax executives noted that after a series of high-level meetings, local authorities agreed to install cameras on buses and deploy a dedicated public transport police force. “Additionally, GABS have begun to install drop-safes in buses for drivers’ takings.”
In what might prove a huge leap in innovation, Hosken Pax executives disclosed that Golden Arrow Bus Services negotiated the use of two electric buses – from a leading international manufacturer for testing during the current year.
“This provides an opportune base for the testing and commissioning of electric buses and the results will afford an empirical basis for the comparison of running costs vis-à-vis diesel powered buses.”
The executives added that innovative scheduling of buses and optimum allocation of manpower – as passenger volumes stabilise to pre-COVID levels – would be the immediate focus in operations. “The application of appropriate new age technologies is imbedded in the strategic blueprint of the engineering and support services.”
