Can you briefly describe the organization or structure of SAD as a State company divided into 17 independent regional companies?
We have 17 companies that are totally independent, and are run in accordance with the same system managed by the Ministry of Transport. The GM of each company is appointed by the Minister. We are in some sort of cooperation, there is an alliance where we negotiate the ways things should be run. SAD Bratislava is one of the 17 independent companies. My only relation to this alliance is that I happen to be its President at the moment. It is a little bit complicated to understand this structure, it is not a usual one. Bus transport in Slovakia is the public transport, in fact 80% of the citizens using a public transport are transported by buses.
At least with the buses you have an opportunity to serve people in the most remote areas…
There is not a single village in Slovakia that wouldn't have a bus stop. That is very unusual in developed countries. Bus services in Slovakia have a completely different system.
There has been a restructuring of the Slovak Bus Carries. I would like to know what have been the different stages within this privatization process?
It was started on October 1st, when two of those 17 companies became joint stock companies. They are private, the Fond of National Property is a 100% owner of these companies. At the moment the shares of these companies are being registered. When this process is finished, the Ministry of Privatization should be in charge of offering these shares on the market. The shares aren't freely tradable. The potential buyer has just one option and that is to buy those 49%, no more, no less. The potential buyer is going to get an option right to buy further 17% if he fulfills all the conditions.
What are the conditions to be fulfilled by a new investor? What is going to be his commitment in order to get to this position?
The money he is going to pay for 49% is going to be invested into new buses. The buses are going to be a property of a company. We have to do it this way because the buses are getting old. If the State wasn't able to keep the buses new, the new owner should do it.
What should be the amount required to renew the buses?
When we consider all of Slovakia, there are about 4,000 buses in city and intercity bus transport. The price of a bus is between 3.5 to 4 million SK ($85,000). You just have to multiply these figures and that is the required amount.
How much time do you need to renew the bus park?
That is just a theory, but we need to get 800 new buses a year. At least 3.2 billion SK a year.
To come back to the way the SAD functions, are the prices regulated or deregulated?
The bus ticket prices are regulated. Everything
else is deregulated. It doesn't matter how
expensive the things we need are, we still
have to provide our services at certain prices.
We buy gas just like anybody else, but the
Ministry of finance regulates the price for
us. |
Obviously the next owner of those 49% will have to face deregulated gas prices against the regulated prices for a consumer. Do you think it is something that may influence the investor?
This happens all over the world. In public transport there isn't a way to have deregulated prices. If London subway provided their services at the actual price, it would be empty. We need state donations to public transport. My point of view is that the state has to do it, later on it may cause more problems. If people stop using public bus transport, the growing use of cars would require more money invested into highways, protection of environment and so on. If everybody used cars, it would be crazy.
The Governor of the National Bank, Mr. Jusko, would like to increase the gas prices as soon as possible. How do you see that prospective for your company?
This political chess is tricky. Gas prices are getting closer to those in Germany but then what we need to have are the German salaries.
Still, one day the gas prices will have to be deregulated if your country decides to join the EU.
That is perfectly all right. Every regulation is against the free market.
Coming back to the privatization of the bus carrier. How many potential investors have showed interest in the SAD?
That is a secret, I don't know. I have heard about six or seven interested groups.
How would you evaluate the role of the Slovak Bus Carrier within the economic development process of your country over the next few years?
For at least 20 more years, people in Slovakia are going to use public bus transport. There is not a prospect of a further development of any other way of transport. The worst prognosis may come true and car owners are going to be a majority and that will require further investments into highways and parking lots. We are about to have the same problems as the developed countries even though we aren't a developed country. We are still able to offer satisfactory services for everybody. For example in your country it isn't appropriate for a high-ranking professional to use a public transport. Every economical decision here in Slovakia always has a political impact as well.
What would be your ambition before the election of Autumn 2002?
I would like to compare the situation to California during a golden craze. A gold digger might not have been a decent person, but he set rules for a country to be run. Later on his children went to school and actually despised the ways he used. I see this as a problem in our country. The person able to fight should be able to step aside when the situation clears up. You should know when your time comes and be able to leave and let somebody more skilful at some point.
Do you have a final message for our readers?
I would like the public bus transport to keep a role within the society and not get to the level it has in more developed countries where it play a minor role.
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V.I.P. INTERVIEWS 
