STC signs MoU with MUUS to operate 100 buses
Intercity STC Coaches Ltd (STC) has signed a memorandum of understanding (MoU) with a Ghanaian company, Mumuni Seidu International (MUUS), and its Chinese partner, King Long Automotive, for the operation of 100 buses in the country.
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The MoU between the two entities will see King Long Automotive deliver the buses to STC for operation, beginning August, this year. A brief ceremony was held at the premises of STC yesterday at which the Managing Director of STC, Nana Akomea, and the Chief Executive Officer (CEO) of MUSS, Dr Seidu Mumuni, initialed for their respective companies.
Per the terms of the agreement, the buses will be run on partnership basis with a revenue sharing arrangement that gives STC 20 per cent of the gross income, while MUSS takes 80 per cent.
MUSS will also pick up the obligation for insurance, pay drivers salaries, maintenance and other costs. Additionally, there is a clause that gives STC the option to buy or lease the buses on mutually acceptable terms.
Partnership
Explaining the road map for the partnership, Nana Akomea said a delegation from STC would go to China to meet the manufacturers, "and if the price is right and the technical specifications are right, we have the option to buy the buses."
He said when the technical committee was satisfied with the specifications, the STC board would give approval for a formal contract to be entered into between the two entities.
The STC Managing Director described the MoU as a boost to the company's quest to maximise its business operations.
"We at STC are very happy to sign the MoU with our new partners. We are happy to have them on board because it is a good time for the transport business. The microeconomic environment is relatively stable for us to do business," he said.
Track record
For his part, the CEO of MUSS, Dr Mumuni, said his company would live up to its side of the agreement. He said the company had the track record of delivering on its responsibilities and would do everything possible to maintain a mutually beneficial contract with STC.