Prominent businesspeople join Alliance Transport

Two prominent businessmen have united the under formation share company, Alliance Transport Service Share Company (ATSSC), which plans to introduce new public transportation in Addis Ababa.

Wondwossen Mengiste, the owner of Nicon plc, is involved in freight forwarding and other transportation related businesses. Now, according to Adil Abdella, board head and main promoter of Alliance, Wondwossen has become one of the founding and board members of a newly established city bus company.

Wondwossen told Capital that he has a fifteen years experience in the public transportation sector.
"I joined the new transport company because I know it is a profitable business in the country. Even excluding profit, I like the business idea which makes modern the city bus service of the town," he added.

The owner of Sun Optics, Brhane Abriha is the other businessman joining the founding members of Alliance.
The city bus company Alliance officially launched a public share sales a month and half ago. Prominent Ethiopians and members of the business community aim to sell 150 million birr worth of shares to participate in the city's bus service at the beginning of the coming Ethiopian New Year. The Alliance plans to start the business with 120 modern single and double-decker buses produced under European manufacturers.

Recently, the Addis Ababa Transport Authority (AATA) wrote a letter to Alliance accepting the proposal of the city bus share company's plan to participate in the sector.

"It is a positive step because it will help to modernize public transportation in Addis Ababa as well as provide more transportation options," the letter signed by Tibletse Asgedom, general manager of AATA, reads.
The letter explained that the authority supported the plan of the company because it meets the government's goal of improving transportation in the city.
Addis Ababa needs 800 additional public buses to solve the current transportation problem. The World Bank latest study about the Addis Ababa transportation problem also accepts the stated figure.
Currently, Alliance has sold shares to over a thousand people and has met 20% of its target. The company plans to collect about 150 million birr within six months.
According to the sector experts, this kind of investment doesn't take long to go through. Practical work begins quickly because the sector doesn't need a precondition that requires a long term investment.

"According to our plan, when we begin the transport service, traffic flow and other related problems will be solved. We are not only providing transportation because vehicles will stop and the drivers will have access to use a facilitated, modern transport system," Wondwossen said. "We believe the new investment makes us profitable," he concluded.
Alliance was formed by twelve prominent individuals with about half a million birr. They have offered 150 million birr worth of shares for the public, which are available until the first week of May 2010. A single share is worth 1,000 birr. Investors can purchase a minimum of 5 shares up to 49% of the total equity.

The government encourages the involvement of an organized public transportation industry to meet the demand. The company is also involved in the parking, school bus, billboard, freight, and import industries. It plans to eventually provide transportation service throughout the country.

The founders completed a survey for 16 months before establishing the company. The study included evaluating cities such as Paris and London.

Source: CapitalEthiopia