The importance of a reliable and safe bus service cannot be underestimated in South Africa. Mphumudzeni Muneri talks to Andrew Pelis about how Great North Transport has driven home a competitive advantage based on reputation.
Public transport in South Africa has long been a topic of much debate. Today, competition remains as rife as ever, despite the recent downturn in the economy. One company that has ridden out the tough times better than many has been Great North Transport (GNT).
With headquarters in the Polokwane region of South Africa, the company operates a further 11 bus depots which serve as home to a vast fleet of modernised coaches. “The company had its roots in two separate companies that formed more than 30 years ago,” states Mphumudzeni Muneri, CEO at GNT. “The two companies (called Gazankulu Transport and Lebowa Transport), which were previously homeland-based, were transferred after the dawn of democracy in 1994, following the release of Nelson Mandela. There was a new dispensation and the two businesses were amalgamated in 1996, to form Great North Transport.”
Today, GNT operates within Limpopo province and part of Mpumalanga province; its operational model is based upon negotiated and interim contracts, both governmental and private. “Our customers are more local for now and we operate in rural areas, providing commuter services,” Muneri explains.
At the time that GNT came to fruition, the company inherited a fleet of old buses—which was a situation that the shareholders, board of directors and management team felt needed to change, as Muneri describes: “Around the turn of the century we formed a strategic plan to turn around the business and we started to introduce modern buses. The process continued for several years and we began to see the benefits of the upgraded fleet by 2005.”
At the moment, GNT operates 540 buses with the oldest bus 10 years old and the newest one a mere 18 months old. In total, Muneri estimates that the company has invested in the region of R200 million on its new fleet.
With South African road conditions not always conducive to regular travel, it is not surprising to learn that GNT has a big focus on maintenance. “Road conditions are not great,” Muneri admits. “Most roads have an impact on tyres in particular and the bus lifespan can be affected by the movement of the bus on bad roads. However, the kind of equipment we use includes an excellent chassis on each vehicle and this can withstand most of the bumps in the road.
“As a company, our core function is commuter services and our responsibility is to sell seats on buses—we leave the maintenance to the experts (Scania) who also manufacture our vehicles. They take full responsibility for maintenance and have staff based at all of our depots.”
Aside from maintenance concerns, the fluctuating cost of fuel is something Muneri says is hard to predict, which creates its own challenges when planning a budget. Effective revenue collection remains another priority for the business. “When dealing with cash you have to be on your toes all the time.”
Security is another issue, he says, as when the buses are running the safety of the bus is essential. “The various parts of that equation include how safe the bus is, our premises and also people and investments. We have outsourced those elements of physical security.”
Part of the challenge to ensure that the operations run smoothly is also to get the ‘people factor’ right. “Perhaps our biggest challenge is skills, people and capacity,” says Muneri. “We have 1,250 employees and training plays a significant role within the company. Without the necessary skills, no company can grow, so we view our people as the most valuable asset we have.
“Our staff development programmes focus on training people up for requisite skills and includes on-the-job training for drivers. We encourage all of our workers to enrol and this includes formal education with external institutions—our drivers have to learn not only how to drive a bus, but also the value of customer service skills. Those in managerial positions are trained not only on how to manage but also on how to approach conflict resolution.”
Following the investment in its new fleet, GNT saw customer numbers progressively rise to a peak of 40 million; but the onset of the economic downturn resulted in falling numbers of passengers as jobs were lost, meaning fewer commuters. Muneri feels that despite the economic problems the country faced, competition remains strong. “You have not only the bus companies to contend with, but also the taxis and informal bus and taxi operators that operate without proper or adequate permits,” he explains.
“During the boom period the market really opened out and continues to be competitive; our advantage is based around the safe, reliable service that we provide. Our drivers are well trained and our buses are well maintained. We also have a good operating system and a schedule that we stick to that ensures the bus will be at its destination on time. Those are the most important aspects to a customer.”
Part of the secret to that success has been investment in technology. Muneri is quick to extol the virtues of the GNT’s tracking systems: “We have systems in place that are used to monitor the buses and driver behaviour. Our auto-data system is pretty up to date and monitors the bus itself in terms of how it is driven and fuel consumption. We also run an electronic ticketing system which works superbly and helps to improve efficiency.”
The recent FIFA World Cup opened up a number of temporary opportunities which Muneri says GNT were happy to accept, including the shuttling of more than 70 buses from the park & rides to the football stadium. However, other than making a good impression, he does not feel there was a lasting legacy.
That said, Muneri remains optimistic for GNT’s long-term goals. “The future looks bright and we will continue to explore opportunities, which we feel are unlimited. We will explore markets and will take advantage of opportunities when the market dictates— which could include acquisitions.
“We will also aim to maintain a young fleet of vehicles all the time, so that as the market grows, we can also grow in terms of fleet size,” he concludes. www.gntpassenger.co.za
