With oil prices reaching record highs, an incredible number of detours coupled with gridlocked traffic, more Jordanians are pulling over to catch a ride on the Kingdom’s public transportation. However, one trip later, it is clear to see that passengers are still in for a rather bumpy ride.

Looking at the battered buses and speeding taxis swerving through the kingdom, one has to wonder whether Jordanians will ever arrive at that same sentiment commuters worldwide share: public transportation is a good thing. With a population of approximately 5.4 million and, according to the Jordanian Department of Statistics (DOS), around 400,000 registered owners of privately owned vehicles as of 2005, a substantial percentage of Jordanians rely on public transportation. However, the industry is facing several significant challenges.  Passengers are constantly complaining about the lack or inconsistency of services, while private investors are reluctant to take privatization opportunities because they fear that a venture with the government will be less than lucrative.
The Transport National Strategy, drafted by the Jordanian Ministry of Transport (MOT), which was revised and later finalized in October 2004, entails numerous encouraging initiatives: it lists the Public Transportation Regulatory Commission (PTRC) as its forerunning commission that tends to passenger transport, be it by bus or taxi/service (white cars that operate on fixed routes and stop at designated points, charging passengers a fixed fare), or possibly by train in the near future.

Missed the bus?
Since 2005, the kingdom boasts around 5,000 medium-sized and 1,600 large-sized government-owned buses, with approximately 80% of the latter operating inside the capital alone. During the same period, the number of privately owned medium-sized and large-sized buses was around 8,000 and 800, respectively. A low number of buses combined with a large number of commuters have resulted in a messy system that is a major bugbear to commuters. “To sum it up, the first bus leaves too late, the last bus leaves too early. There are too many buses covering not so populated areas and too few buses covering the more crowded areas,” said Wa’el Jasir, a student who commutes daily from downtown Amman to the University of Jordan area. “It is not unusual to see as many as six buses traveling the same route practically empty, whereas only a couple of buses cover the routes that are most needed,” he said. The PTRC receives numerous complaints that buses are late despite regulations that state that both government and privately-owned buses must abide by the agreed schedule, as set by the commission. Commuters also complain that drivers fail to adhere to appointed routes and some buses in the more remote areas of Jordan, such as Mafraq, never make it to the end of their designated line.  The PTRC is quick to point out that the situation is not as chaotic as it seems but rather the industry has come up against several unexpected hurdles, specifically an unexpected surge in traffic due to ongoing reconstruction of roads, an increased number of cars (both Jordanian and from neighboring countries), and a multiplying number of road detours. The PTRC also explained that many of the challenges are seasonal.
The average bus ride in Amman costs JD0.250 and passengers often complain that the fees are too high in a country where the minimum wage stands at JD110. This translates to an average 5.5% of their monthly earnings spent on bus fares, money many passengers feel is not well spent. To ameliorate the negative perception, the modernization of the current bus fleets, both government and privately-owned, is currently underway, albeit very slowly. According to the PTRC, 2.5% of large buses (which can take more than 30 passengers) and 1.8% of medium-sized buses (which can take up to 25 passengers) were replaced in 2005.

Taxing taxis
A quick drive through Amman’s roads reveals the genuine incompetence of some the local taxi drivers. While the DOS does not indicate the exact number of accidents caused by taxis, one representative of the department, who chose to remain anonymous, said “taxis pose a real problem; they are responsible for an increasing number of road accidents each year.” According to the DOS, the number of car accidents in Jordan reached approximately 83,000 in 2005, up from 53,000 in 2000. With 25,000 taxis/service operating throughout the kingdom in 2005, strict monitoring of quality is crucial. Indeed, the PTRC does conduct periodical checks on cleanliness, safety and proper maintenance, but most would agree that the overall appearance of these vehicles and the haphazard driving of drivers are indicative of a less than perfect situation. But with such low fares set by the government, say taxi owners, it is difficult to maintain the appearance of their cars. “An increase on the initial tariff is needed. Taxis in other countries charge different rates according to time of day or by area” said Mr. Bassam Fadel Ali, general manager of Al-Aoun Business International, a company that lists fleet management among one of its activities.
The Ministry of Transport (MOT) is keen to accelerate the merging of taxicab offices to improve the level of services while minimizing operational costs. Mergers will also assist in limiting the illegal trading of cars, taxi ownership transfer without going through the proper channels, which makes it difficult for the government to keep track of cars and their activities. Another benefit of this merger will be to assist in the implementation of the PTRC’s goals, which include eliminating circling of cabs that creates unneeded congestion, encouraging drivers to wear a uniform and practicing sound driver ethics. Mr. Fadel Ali explained, “With so many individual operators of taxis, there is no control measure.”
The PTRC is no longer granting licenses for new taxis and taxi offices in an effort to minimize the number of cabs crowding Jordan’s streets. Plans to install a fully operational Geographic Information Systems (GIS), a Global Positioning System (GPS) and Smart Cards (charge cards) seem far-reaching at best, when many taxis do not comply with the basics. “We should keep our dreams within our capabilities,” explains Mr. Nabil Abu Khader, deputy CEO of the Comprehensive Multi Transport Company (CMTC), a local establishment that recently made the switch from limited shareholding to public shareholding in August 2006. The company, with a capital of JD10 million, has acquisitioned the top two privately-owned public transportation companies, Al-Tawfiq and Al-Thilal. With 170 buses, the new fleet will operate in the western and northern parts of the capital, and the Queen Alia International Airport-Amman expressway. Mr. Abu Khader said, “Our goal is to encourage smaller [bus] companies owned by individual operators to join us as partners.” By purchasing buses, some of which have been operating under poor conditions for up to 15 years, the CMTC will help in the modernization of fleets without comprising the individual profit of these bought-out companies.

Far away railway
With a remarkable 50% of the Jordanian population constituting the commuters making the daily trip from Amman to Zarqa, followed by Amman to the University of Jordan, and from Amman to the downtown area, the question of why the capital does not yet have a train service is on the minds of many local travelers. 
Internationally, railway transport is a profitable business, yet the private sector begs to differ and is reluctant to invest in what they feel is a non-feasible venture. The requirements of potential investors are fairly straightforward: develop infrastructure in cooperation with related authorities, as well as allow for a flexibility on existing tariffs and guarantee railway right of way (strip of land granted to a railroad company upon which to build a railroad). Hania Maraqa, associate director for Center for the Study of the Built Environment (CSBE), a non-profit, private study and research institution that aims to address the challenges that affect the built environment in Jordan and beyond, told Jordan Business: “We already have the infrastructure that we created to accommodate the growing number of private automobiles, and part of this infrastructure could be used for public transit.” Private investors are demanding that a limit be placed on the number of groups running on the same route.
Despite the initial 17 letters-of-interest and seven short-listed consortiums (according to the Executive Privatization Commission) the first attempt by the MOT and the PTRC to tender the project in 2005 was unsuccessful.  Disagreements with the sole bidder who met the requirements, the Egyptian Consortium (Menarail), due to the substantial amount of financial support requested by the consortium at the time, prevented the project from happening. As stated by offcials in the industry this was one out of two failed attempts to tender the project. CPCS Transcom, a Canadian consulting firm, is handling the re-tendering of the Light Railway System (LRS), the first of its kind in the region. The project, if realized, will cost an estimated JD125 million and will transport approximately 1,000 passengers daily. The majority of the route, between Al-Mahatta and New Zarqa, will be constructed within the existing Hedjaz Railway right of way. This time around, the government seems to have gotten the message that it has to subsidize the cost of infrastructure construction to make the project attractive to investors. Consultants in the industry have estimate that the government must provide around JD50 million in order for the project to move forward.

The road ahead
A privatization unit within the MOT was established to privatize the Public Transportation Corporation (PTC). PTC signed 10-year agreements with three local companies to operate buses (with PriceWaterHouse Coopers assigned as consultants) on the inner lines of the Greater Amman Municipality. One hundred and sixty-five new buses were operated to serve customers on said lines. According to the Ministry of Foreign Affairs the country is reaping the benefits of the privatization of the PTC; the government will no longer need to compensate for the JD1.4 million in annual losses, and an extra JD0.5 million in yearly license fees of new operators will be added onto the government’s budget. Gradually picking up speed, last year the public transport sector managed to attract approximately JD88 million in investments and projects. “By the end of 2006, the PTRC hopes to bring in an estimated JD173 million,” stated Ekhlas Yousef, official spokesperson for the PTRC.
With future plans to increase the overall quality and quantity of public transportation, and raising awareness of the sector’s benefits, it looks like the PTRC will be operating at full capacity. However, is the agenda too ambitious? Hania Maraqa is hopeful. “Creating an efficient, effective, and equitable public transit system in Jordan is indeed a doable, albeit challenging, task,” she said. With the industry facing several speed bumps, the forecast for this sector, although promising on paper, is still foggy at best, causing skeptics to drive with caution, and leaving passengers waiting indefinitely for that promised ride. 