Addis Ababa Transport Branch Office of the Federal Transport Authority announced the 13 minibus taxi owners associations will be reorganized to form two share companies for the purpose of replacing the city minibuses to midi buses.

The meeting was held with taxi owners’ association. The announcement further included the associations will have to change their vehicles in to midi buses that can carry 24 passengers at a time.

Currently the city’s transport service is provided by the minibuses, midi buses and buses. According to information from the Branch Office majority of daily commuters use the city buses. Minibuses take second place in catering transport service.

In related news the city administration announced it is planning to upgrade the organizational structure. It added it is going to replace the minibuses with midi buses following the light railway transport services.

As the railway starts operation it is expected to increase the volume of disembarking passenger which the minibuses will have to carry from the terminals to different places of the city and this is what called for changing the minibuses to midi buses.

According to Coordinator of the Tsehay Taxi Owners’ Association, Abebaw Kasa, the government is conducting a research to finance taxi owners. He added the taxi owners need to save 30 percent while the government will extend them the rest 70 percent as loan.

According to Fortune the newly to be formed share companies are expected to follow the model of Alliance Transport Services S.C.

Source: Fortune