The population of Sarajevo, the capital of Bosnia And Herzegovina, – 700,000 – is nearly 20% of the population in the Country. 

Sarajevo has an extensive network of trams, buses, trolleybuses, and minibuses, all operated by Gras.

All single-ride tickets can be pre-purchased from kiosks or the driver; they must be stamped once aboard. Two-ride, five-ride and day tickets are sold at official GRAS kiosks, which are few and far between.

Rely on Loan to reduce air pollution

5 Feb 2020 SeeNews

The European Bank for Reconstruction and Development (EBRD) said it is providing two loans worth 35 million euros in total for public transport investments in Bosnia’s Sarajevo that will help reduce air pollution in the city.

“Traffic congestion, especially during rush hour, is a severe problem in the city. The poor quality of public transport is the main reason why so many people in Sarajevo use cars, increasing fuel consumption and noise pollution,” the bank said.

How to manage public buses in a profitable manner

Implement Automatic Fare Collection (AFC) System as a crowdfunding tool.

The AFC system can bring good cash flow to the public transportation system as there are a deposit and unused value on each passenger card. Every million passengers will contribute over US$ 1 million in cash flows based on our study.  

Besides stopping fake money and driver’s fraud, the AFC system will bring in recurrent income from transaction fees. Every million passengers will bring US$ 5 million in income per year if the transaction fee is 5% based on our study.

Sustainable growth in public transportation development can be easily achieved.

Business Opportunity

Although GDP per capita in Bosnia And Herzegovina is US$ 5,180 in 2017,  there is a high demand for public transportation especially in Sarajevo with a 700,000 population.

Relying on loans from the European Bank cannot be sustained because inherent problems such as shortage of cash notes, driver’s fraud, and fake money for public transportation are not resolved.

Sustainable growth in public transportation development can be easily achieved with the implementation of an AFC System.

However, most AFC systems are very expensive with comprehensive software for account-based and financial clearance.

A low cost and effective AFC system suitable for Sarajevo has to be used. 

The writer is a frequency traveler.  To learn more, please visit autofare.net.

Post Author: GCSharing

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