A new alliance between Intercity STC and MUUS Transport Alliance Cooperation plans to bring in 100 new buses from China to boost the fleet of the Ghanaian company by August 2024.
This was revealed by Nana Akomea, the Managing Director of Intercity STC, during the formal signing event in Accra on Thursday, June 27, 2024.
During the signing event in Accra, Nana Akomea mentioned that the timing of the partnership would be advantageous for both organizations.
“We are very happy to have them on board. We have signed a few partnership agreements over the period but this particular occasion is totally different. This is the first time we’ve had our partners representing with about 20 of them, in fact, they literally outnumber us in our own office and clearly, it shows that they are serious about the partnership and we are very happy about that.
“We are happy to have them on board because it is a good time for the transport business. The macro environment is relatively stable. Like any business, if the macro environment goes bad, the business goes bad, and we in the transport business, when the currency is not stable, it affects the price of fuel immediately… so, we are affected directly by the macro environment.
“And indeed, in the period 2020-2023, when, because of the COVID, we all know the macro environment became unstable and the dollar price kept rising every week, literally. It was a very tough period for the transport business because you are not able to increase transport fares any time the price of fuel changes. So, it was a very tough operating environment, but now we agree that in the last 12 months, the macro environment is different and relatively more stable… so, we’re happy to have you on board at this time when the operating environment promises better margins for the business,” he said.
Nana Akomea further stated that the arrangement stipulates a partnership between the two companies, operating on a revenue-sharing basis.
He also mentioned that Intercity STC might eventually explore the option of purchasing the buses.
“So, the MoU will take 20% of the gross and they take 80%, out of which they will do their insurance and maintenance and drivers salaries and all of that, and then the next clause provides that STC may opt to lease or buy the buses on mutually-acceptable terms… and if the price is right, and the technical specifications are right, we have the option to buy the buses,” he added.
Dr. Seidu Mumuni, for his part, reassured Intercity STC’s management of their commitment and affirmed their dedication to enhancing the country’s transportation sector through their partnership.
“I want to assure STC that MUUS International is a serious company. It is not only STC but you can see other companies that are here to join us to give us their versatile support. There is a bilateral discussion, for instance, with the Ghana National Fire Service now and with the Ministry of the Interior to supply them with fire trucks, the tools and give them training, and planning ahead to establish the first fire academy in Ghana.
“We are the only company that shows our dynamism and I am charged that really, we are going to really deliver. Our team is ever ready to invite STC to China,” he said.
The STC-MUUS agreement will introduce buses produced by King Long Automotive, one of China’s largest manufacturers of coaches.
Under the partnership, MUUS plans to introduce electric buses, establish electric assembly plants, retooling facilities, and build state-of-the-art bus terminals with technical service yards in Ghana. These initiatives aim to enhance commerce within Ghana and throughout West Africa.