The Federal Transport Authority (FTA) is implementing the directive that urges cab owners in Addis Ababa to form share companies and import duty free vehicles that will replace blue and white taxis by registering 2, 700 cab owners.

Following the issuance of the directive on May 18, 2015, 54 companies have been formed to import specific models of vehicles duty free, said Eskindir Yimer, Coordinator of the registration of the companies and Ethics and Complaints Process Manager at the FTA.

The establishment of the companies was required in order to have a clear follow up procedure and to facilitate the sector’s growth, according to Kassahun Hailemariam, Director General of the FTA.

The vehicles companies import should have global positioning system (GPS), odometers, and radio communication systems and will be controlled from a central station by an area network. And they need to have more than 1300cc engine as well as four to seven seats and their models have to be 2015 and later.

Though the new 2015 model cars will be availed for the market in the current 2015/16 budget year, the existing ‘blue-ladas’ will also be on the roads of Addis Ababa after being required to install odometers which is an instrument that indicates distance travelled by a vehicle and cost.

“There will not be double standards in the operation of the cabs,” Eskindir says. “We will set tariff per kilometer, and all taxis will need to install odometers.”

The Authority had also issued a directive on May 19, 2015, for Addis Ababa’s minibus, midi bus and bus owners to form share companies and import duty free buses with loans from banks.

The directives for the formation of metre taxi and mass transport companies are meant to push the traditional taxi transport out of market and replace them with mass transport vehicles and metre taxis.

Source: Addis Fortune