Business News of 2014-05-17

Metro Mass Transit targets GH¢154m

The Metro Mass Transit (MMT) Company has set a revenue target of GH¢154million from its operations this year as it launches its five-year strategic plan and ICT-based fuel and vehicle tracking system in Accra.
Last year, the company’s revenue reached GH¢123million culminating in a net profit of GH¢9.2million.
According to the company’s financial projections outlined in the strategic plan, it expects an 8.6% increase in net profit after tax margin for this year over the figure recorded in 2013.
The increase in the company’s financial targets hinges on the company’s strategy to cut down on operational costs through reduced fleet downtime and fuel consumption, reduced loses on intra-city services, review fares and profitability of routes, and also trim overage employee retention schemes.
The MMTs strategic plan launched in Accra spans over a five-year period from 2014-2018. The strategic plan is anchored on seven basic objectives: improve the safety of passengers and staff; improve customer service; expand access to MMT services; establish a great workplace; increase profitability and attain financial sustainability; adopt environmentally-friendly practices and attain ISO certification 9001.
The company is hopeful that the development of its five-year strategic plan, which will incorporate various ICT platforms into its operations, will help to address most of the teething concerns of customers.
The Chairman of the Board of Directors of MMT, Osabarima Ansah Sasraku III, said development of the strategic plan is meant to provide a sense of direction in running the company as it strives to build an efficient bus system.
“These interventions, we believe, will transform MMT into a great work place…The Board will provide the necessary leadership and direction, and will demand accountability and responsibility from management in the implementation of these programmes,” he said.
Osabarima Ansah Sasraku III called on the company’s employees and shareholders to support implementation of the strategic plan, indicating that the free bus ride programme for school children in uniform will be extended to persons with disability.
MMT was established in 2003 by the government in collaboration with the Agricultural Development Bank (adb), National Investment bank (NIB), Prudential Bank, SIC, SSNIT and GOIL; currently, it has a vehicle fleet of 1,128 that is projected to double by 2018.
The company is expected to take delivery of 230 new buses by the end of this year.