Fare Structure and Operational Performance of Rivers Transport Company (RTC), Port Harcourt, Nigeria

Abstract

This study examined fare structure and operational performance of Rivers Transport Company (RTC). Specifically it examine the cost and frequency of trips on each route, and the operational performance of RTC. The study used a cross-sectional research design. 398 copies of questionnaires were administered to users of RTC, and oral interview was conducted using simple random sampling technique. Descriptive tools such as percentage and frequency distribution, cost benefit analysis (CBA) were utilised for the data analysis. The analysis of the data revealed that the cost of transport per route is majorly determine by measurable indices to include; the vehicle type, the distance covered, destination, and nature of road infrastructure. The frequency of customer’s patronage for RTC is solely dependent on the cost of travel and other attitudinal characteristics of drivers and the general operators of the Rivers Transport Company. Other findings revealed that there was a significant increase in the vehicular fleet, 0.58% and 0.59% of profit margin for 2017/2018 and 2019, respectively. The net profit obtained at 1000 vehicles in operation in 2017 and 2018 was ₦246,365,810 and ₦256,310,766, respectively. In 2019 at 1200 vehicles, a net profit of ₦284,047,200 was attained. The CBA indicates a viable performance since there is a positive relationship in growth between the total income and operational cost, and it is significant. The study recommend that adequate funding and provision of vehicles should be encouraged.