The Bhutanese Leading the way.
A private transport operator has raised concerns over the Bhutan Postal Corporation Limited (BPCL) operating a commercial vehicle which is ferrying paid passengers, as an unfair competition, given both buses have the same destination. The private transport has its bus departing from Thimphu to Phuentsholing simultaneously every day, every half an hour from 10 am till evening.
The transport owner shared that two passenger buses with the same route cannot have the same departure time as per the Bhutan Construction and Transport Authority (BCTA) rules.
The private transport operator said, “Though the bus is not operating from the same destination, it is still affecting us as their timing is kept in between our two buses which departs at 10 am and 10:30 am. Bhutan Post Office bus departs on 10:15 am.”
The private transport operator shared that they made their first written complaint around July 2024 to Chief Regional Transport Officer in Phuentsholing. The RTO then wrote a letter to Chief Program Officer, BCTA, Thimphu on 26th July 2024 regarding bus operated by Bhutan Post whose stated schedule overlapped with them.
According to the private transport operator, BCTA then wrote a letter to Bhutan Post on 5th August 2024, seeking clarification on the same departure time of bus. On 15th August, a mail was sent by BCTA stating that they have not obtained approval for ferrying passengers and departure time 10:00 am from authority, and said, “On 22nd August 2024, BCTA again wrote a letter to the Bhutan Post regarding incomplete formalities for the operation of courier bus service. It was also stated on the letter that the Bhutan Post should operate courier buses on approved schedule, and stop ferrying paid passengers until they sign contractual agreement with the authority.”
Further, on 16th September 2024, a letter was again written by BCTA to Bhutan Post stating that a commercial vehicle without obtaining a permit from the authority is a violation under 160 of the of the Road Safety and Transport Regulation for ferrying passengers without a permit. Further, section 272 of the regulation, an institution bus shall not be used for ferrying passengers for commercial purposes. It also stated that Bhutan Post should immediately stop ferrying paid passengers. If they intend to operate a scheduled bus, the requirement is to apply for route permit and follow all due process for operation of scheduled passenger services.
With the ongoing vacation season of students, the transport owner shared that they are feeling lesser impact, however, after the vacation is over, they are sustaining losses because of the timing.
The owner said, “In the month of August when we lodged the complaint to BCTA, we had instances when we were running with 2 passengers in a day, and overall, it has led to a loss around Nu 170,000 followed by around Nu 140,000 the following month, and in the October month the loss was around Nu 120,000. These losses specially mean a lot to us as we have purchased 4 new buses on July last year, and because of the above-mentioned concerns, we are not able to meet the monthly EMI that needs to be paid, leave salary payment, maintenance and rental cost.”
The private transport operator shared that no actions has been taken so far regarding their raised concerns. They are one of the oldest private transport operators in the country and such issues has never occurred until now.
Bhutan Post defends passenger transport service under Universal Service Obligation
Bhutan Post Corporation Limited shared that it is operating under the Universal Service Obligation (USO), a mandate that ensures postal services reach every citizen across the country.
Bhutan Post said that while delivering mail, their service carries passengers if there is demand. However, their departure point is not aligned with those of private bus operators, and their service has been ongoing with valid licenses and permits for years.
Bhutan Post shared that they have been operating its bus services long before the rise of private operators in the early 1990s, when there were no other buses in operation.
Bhutan Post stated, “When the private sector emerged, we stepped back, allowing them to take over. We have continued operating at the same times, even pre-dating the COVID-19 pandemic.”
Bhutan Post said that as a state-owned entity, its primary mission is to ensure reliable delivery of mail across the country and that they are not operating with the intention of transporting passengers, but only do so when it aligns with the route to deliver postal services and as cross subsidy.
“We are not competing with private bus operators. In fact, we adhere to the guidelines and have always supported privatization, such as when we handed over city buses and recently transferred the Kolkata bus service to private operators,” said Bhutan Post.
“Our mandate under the USO allows us to deliver mail at the same rate nationwide. For this, we cannot depend solely on private operators to fulfill our postal duties. Our services are part of this obligation, just like the banking and telecommunications sectors mandates to deliver their services.”
Further, Bhutan Post said that the issue raised by private bus operators is largely a timing conflict, as every half hour sees buses traveling along similar routes.
“We have consulted with the Ministry of Infrastructure and Transport (MoIT), and they are looking for amicable solutions regarding the timing issue, but the available slots are extremely limited, which is the problem here. While private operators have raised concerns about the passenger service, we have not raised any complaints regarding the USO’s provisions for package and load transport, which also mandates that any load over 15kg be booked through the postal service.”
Bhutan Post said that unlike private operators who operate on daily basis, they operate only thrice a week.
BCTA also said that the Bhutan Post, as a member of the Universal Postal Union (UPU), is obligated to fulfill USO, which ensures that postal services are accessible to all citizens at reasonable prices and within a timely manner.
This obligation is crucial for ensuring the reach of postal services to people across the country. In fulfilling this responsibility, the Bhutan Post is allowed to cross-subsidize its operations. This means that revenue generated from other services, such as carrying passengers on postal buses, helps subsidize the cost of maintaining postal services.
BCTA said that this model has been in place for a long time, and is not a recent development. However, recent controversy has arisen, primarily due to timing adjustments and operational changes. The buses are not stopping at the Phuentsholing bus station, but instead at the post office.
