Government says no to nationwide monopoly on bus runs

Cabinet has spoken on the bus situation … and it appears that a single nationwide transport company is a thing of the past. According to a press briefing on Tuesday’s Cabinet session, the industry will be restructured within a policy of managed competition. Rather than salvage the nationwide monopoly introduced by the Novelo Brothers and later taken over the by D.F.C.-Atlantic Bank receivership, government has opted to divide the country into three zones, that is the Northern, Western, and Southern routes, all emanating from Belize City. Bus operators will then apply for permits for an entire zone or a part of that zone.

Another new twist of policy involves bus terminals. According to Cabinet, terminals in each municipality will be government-owned and managed by a new administrative body, the Transport Authority, which will oversee the operation of the terminals, bus stops, and entire transport system. According to Transport Ministry spokesman Glenn Tillett, the Transport Authority would be modelled after the Border Management Agency and the Karl Heusner Memorial Hospital Authority; that is with independent boards and professional management.

Target date for the establishment of the Authority is the first of April, with the terminal openings coming much sooner. One problem with that plan is that the existing Novelo’s terminals in Belize City, Belmopan, Corozal and San Ignacio are now owned by the D.F.C., which, under the terms of the foreclosure, must put them up for auction. In that auction, however, all those terminals will be sold as one package and few buyers are expected to bid, let alone reach the reserve price. That would pave the way for government to make an offer, its payments taking the form of one more credit against the millions that D.F.C. already owes to Belmopan.