The greening of Fiji’s bus industry is an inevitable prospect in this era of fossil fuel-induced global warming and climate change and the impacts associated with these changes.
The question is not whether bus companies should begin rolling out green buses, but rather how this can be done in an equitable, efficient and orderly manner that achieves the best possible outcomes for the travelling public, bus operators, and government, in turn contributing to achieving national objectives.
While bus operators are not opposed to the introduction of electric and other green buses, we are calling for a well-considered process that encompasses a 360-degree view of the issues involved, takes account the economic state of the industry, and the infrastructure, personnel and servicing requirements required for green buses.
Bus operators wholeheartedly agree that global warming must be addressed, but we believe that there is no reason to accelerate the transition in the Fijian context in relation to our carbon footprint and we must plan to achieve net zero by 2050.
Fiji’s bus industry comprises some 50 privately-owned and operated firms and companies, who are closely regulated by the Land Transport Authority, the Fijian Competition and Consumer Commission and the Department of Transport.
There is very limited scope for bus operators to make meaningful margins due to the strict regulatory framework. We are concerned about the consultation process, given that it appears a decision has been made in relation to electric buses.
Is electrification the only option? Would it be possible to consult further and wider to explore other options for greening such as through hydrogen fuelcell technology?
Financial challenges
The bus industry in Fiji is unique globally since it is run by private companies, while being subjected to tight regulatory and fare controls.
The present fare structure, hastily approved in early 2020 following a decade in which the government did not grant an increase, was based on financial statements recorded before the COVID-19 pandemic struck.
With the fare structure as it is, it came as a recovery measure and bus operators continue to attempt to catch up on their costs and are yet to achieve any meaningful profit levels to leverage greening investments.
The present model of setting fares is based on retrospective costs, and is not transparent.
The 2020 fare structure was set purportedly based on audited accounts for the previous year, although as is widely known, the pandemic the year after would have distorted the financial accounts and set operators back further.
Audited accounts are only available after the close of the financial year so it would not reflect immediate costs for operators.
What is required is a transparent formula through which any cost increases or decreases can be reflected and considered to determine appropriate fare levels at any point in time. Replacing buses being used now with green buses will involve considerable costs for individual operators and the industry.
The following points illustrate some of the financial challenges that need to be considered:
• Electric buses cost an estimated four time more than present buses;
• On the fare structure, this change would not be possible; • How will the fare be structured to get a return on investment?
• Who will be responsible for determining fares? How often will the fares be reviewed to keep pace with operating costs as well capital investments?
• What about investment in the infrastructure for the charging system? Who will set this up and who will bear the cost?
Operational challenges
Greening the industry is easier said than done. One major operational challenge is the maintenance of these electric buses.
As it is, bus operators struggle to keep their qualified and skilled mechanics and other technicians who are migrating in droves.
Maintenance of buses will present a huge challenge since we are already losing workers and we will need to be able to find, keep, and afford skilled staff to service these buses.
Some operational questions to be considered:
• Most bus companies do not have large enough depots to install chargers to enable overnight charging. What is the solution?
• Will the grid be able to provide electricity to charge 1500 buses simultaneously?
• Will EFL be using fossil fuels to generate electricity to charge these buses? If we must depend on EFL to recharge the buses, wouldn’t this negate the supposed benefits of electric buses since most of the grid electricity is generated through fossil fuels.
• No technical know-how and knowledge is available in Fiji now to be able to meaningfully roll out electric buses in any number.
• We have been given no details about the life of these buses, batteries, components, controllers, or estimates related to repair and maintenance costs.
• A further environmental question is how to dispose of dysfunctional batteries. The improper disposal of such batteries would pose a grave environmental threat.
Way forward
Fiji’s total contribution to global warming is estimated to be 0.0006 per cent annually.
An estimated 150,000 vehicles ply Fiji’s roads along with some 80,000 trucks. Putting this in context, there are approximately 1500 buses in operation Fijiwide, many of them Euro 3, Euro 4 and Euro 5 compliant.
This raises the question about whether public transportation is a major contributor to pollution in Fiji or are there other areas of the transport industry that could be prioritised to address Fiji’s contribution to global warming.
In other words, the greening of the road transport sector should start with trucks and other large vehicles before moving on to buses, considering that buses make up a small percentage of vehicles.
Bus operators are passionate about their service-provider role and continue to do this despite struggling to make meaningful returns.
At the same time, operators are acutely aware of the changing dynamics and global outlook and are willing to put in the effort to reform the industry if its views and voices are taken seriously and considered before any industryimpacting changes are made.
A proper consultation process must be carried out before any decisions are made. We propose the convening of a high-level committee of all stakeholders to carry out a feasibility study that should determine a way forward in the greening of the transportation sector.
• ROHIT LATCHAN is the Fiji Bus Operators Association general secretary. The views expressed in this article are his and not of this newspaper.
