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Impact of Covid-19 epidemic, transportation businesses facing difficults

In the context that transport enterprises are facing difficults, passenger transportation is the sectors most affected and damaged heavily. Low revenue causes transport enterprises more and more losses if they do not have timely support measures. The ability to recover production and business in the coming time is forecasted to continue facing many difficulties when the epidemic is still complicated


 

p5.jpgDue to the decrease in travel demand, many passenger cars, fixed route buses, and contract buses at Bien Hoa Bus Station are suspended.

Business struggling in the pandemic

After a year of struggling business, Mr.Nguyen Van Tai - enterprises owner in Nhon Trach district said in 2020 the Covid-19 epidemic broke out in March, was the time after the Lunar New Year, at least the business had revenue on the Tet holiday. In 2021, the epidemic broke out before Tet, which greatly affected the revenue of company, it reduce 60-70%.

Mr.Tai said that the enterprise’s inter-provincial passenger transport route has 10 coach running  in the Northern provinces, 5 cars transports passengers from Dong Nai to the Southwest. On Tet holidays, the number of passengers registered tickets was quite large, the trips were almost filled, but the Covid-19 broke out near Tet made businesses unable to keep up. Passengers return their tickets despite the deposit or canceled.

"There are buses with only 15 passengers, it costs a lot but we still operate because we have received passengers before, trains and planes can be cornered passengers , but it’s  difficult for buses because passengers travel to provinces in different times. Many buses doesn’t be back after transport passengers to the North because of lack of passengers and costly.” Mr.Tai said.

Many large-capital transport companies also suffered heavy losses. Representative of Phuong Trang Bus Lines Passenger Joint Stock Company said that the company had more than 2,000 buses operating many routes across the country. Tet holiday is also the peak period of the year so that businesses can cover the revenue for the low periods of the year.

However, when the Covid-19 epidemic broke out on the days near Tet holiday, many customers canceled tickets as a result decrease the number of trips. Not only that, on each bus, the number of passengers is only 40-50% over the same period. With the prolonged epidemic, stalled tourism activities will cause the company grave damage.

According to The Public Transport Management and Operation Center (Department of Transport), during Tet holiday of 2021, the transport units have operated more than 16,000 trips, transported nearly 350,000 passengers, the average number of passengers reached 20 people/trip. The number of passengers taken bus decreased by 50% compared to weekday and this was also the strongest decrease in passenger transports compared to the previous Lunar New Year. The main reason is due to the impact of the Covid-19 epidemic, so people are afraid of traveling on public transports.

Currently, there are 2 bus routes to be temporarily suspended due to the impact of Covid-19, including bus route No. 18 (route from Mango Garden Resort, Dong Nai to Dai Nam tourism area, Binh Duong) and bus route no.601 (bus route from Bien Hoa City, Dong Nai to the Western Bus Station, Ho Chi Minh City). In addition, the bus routes in the province (both intra-provincial and inter-provincial) have operating normally.

Director of Thong Nhat Transport Services Cooperative – Mr.Nguyen Xuan Thien said that, although the operation went back to normal, the frequency of the bus was being fewer than before the Covid-19 epidemic happened. The average number of passengers per bus trip is only 5-7 passengers. The little revenue makes the members of the cooperative face such difficulties. Because of the fact that these are the bus routes that are not subsidized, if few people take buses, the revenue will not be enough.

There's going to be a lot of difficulties

According to the Department of Transport, due to the impact of the Covid-19 epidemic, road transport in the province was seriously affected, the output dropped deeply due to passengers returning tickets, making it great difficult for enterprises. Specifically, during the last Lunar New Year, 850 bus tickets went to the North and Central has been sold at Dong Nai Bus Station, Bien Hoa Bus Station, passengers returned 300 tickets. Actually, transport only 550 passengers,  reducing more than 1.7 thousand tickets (down 76%) compared to the same period in 2020.

Not only road, but rail transport is also heavily affected. According to Bien Hoa train Station, the number of tickets sold on this occasion is low compared to the same period (about 27,000 tickets); The number of passengers returning tickets got high proportion (equivalent to nearly 15 thousand tickets). In fact, the number of passengers is even lower nearly 12,500 people. This makes the New Year revenue of the railway industry only about 30% compared to last year.

According to the authorities, the Covid-19 epidemic has had a significant impact on the production and business of enterprises in many different industries and fields. Not only during the Lunar New Year but throughout the year 2020, the transport in the province is affected.

According to the Department of Transport show that by 2020, passenger transport has transported more than 35 million people, reaching 64% more than the plan. Of which, both fixed-line passenger transportation, public passenger transport by bus and passenger transport under contract decreased sharply. Similarly, freight transport with a transport volume of nearly 13 million tons, reaching more than 86% of the plan.

Director of Quang Phat Company Limited (Bien Hoa City) – Mr.Bui Ngoc Quang predicts that the ability to recover production and business in the coming time will continue to face many difficulties when the epidemic is still complicated. What businesses most desire is the Ministry of Transport propose the Prime Minister and relevant ministries and agencies to consider reducing several fees for the freight transport sector to support enterprises to viable and maintain operate.

According to Mr. Quang, the current freight rate is still quite high while the costs are increasing compared to before. The unit's revenue per shipment is only enough to cover operating costs, human resources ... According to the monthly contract, the company will have to pay part of the principal plus interest, company face more and more difficulties. Small businesses will face more difficulties than large businesses, forced to reduce their vehicles due to less demand.

“When reducing production, the company must reduce labor by implementing measures to postpone the implementation of the labor contract or take turn rest. Although you know that this is an undesirable solution because employees are a great resource. The disturbing thing is that if the employee quit, when the transport recovers, there will be no workers to produce. From there, more and more difficult appear”- Mr. Quang said.

With the difficulties encountered, enterprises have proactively implemented many measures to overcome such as: cutting all unnecessary costs, improving the quality of transport, adjusting the route ... Since then, help businesses retain employees, reduce costs, and stabilize business operations. 

Enterprises are looking for solutions to overcome difficulties by themselves in accordance with the specific situation of each unit in order to promptly remove difficulties. In addition, many enterprises also want to reschedule debts, delay the repayment deadline of principal and interest of enterprises' investments such as support packages that the Government has deployed in 2020.

Le Binh


 
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