Malawi Posts Corporation (MPC) has announced the withdrawal of its intercity bus service operating as Post Bus with effect from July 1 2024.
But in a statement announcing the suspension of the service, the financially crippled parastatal said this is due to losses it has been incurring since 2019 when it invested into this business but it did not clarify clearly on the service resuming prospects especially dates.
“The corporation has been experiencing challenges in delivering the service to customer satisfaction because of the age of the fleet, leading to rising maintenance and operational costs resulting in the business positing persistent losses.
“Since the launch of the Post Bus service in 2019, the service has played a crucial role in connecting various cities, including Blantyre, Lilongwe, Mzuzu, and Karonga, and has been an integral part of the society, transporting over 1.3 million passengers.
“While the current business model has been challenging, management is optimistic about the future,” reads the statement by Postmaster General Angel Banda.
But sources within MPC said it is difficult for the bus service to resume because most staff in the section are among those retrenched.
Reacting to the decision, Passenger Welfare Association (Pawa) executive director Don Napuwa described the withdrawal of Post Bus Service as a negative development.
He said: “We want more players to be providing commuter service to solve public transport challenges and strengthen competition in the sector but such news is disturbing as it shows as a country we are not moving forward in the sector.”
Meanwhile, Minibus Owners Association of Malawi secretary general Coaxley Kamange described the bus service situation as not surprising, saying the current economic environment is not favouring commuter business.
In 2019, MPC obtained a K700 million bank loan using its office complex in Blantyre as collateral to buy seven buses from China.
However the corporation had to withdraw its buses from 20 to 23 January 2020 to re-take steps and actions to ensure the safety of passengers following an accident along the M1 at Likudzi in Phalula which saw 15 passengers sustaining minor injuries.
