The Onay System and Public Transport Reform in Almaty

A few words about Onay!

One of the indicators of how developed any metropolis is, is its public transport. In large cities, most people get around by public transport or by taxi.

Public transport has many advantages and drawbacks, but I would like to look at it specifically in terms of its effect on the city. Almaty is now in the midst of reforming its transport system. Much has been done, and much more is planned. As I have written before, I fully support these measures, because overall they are a positive and landmark development for the city.

Under current economic conditions, the state cannot develop public transport on its own, and investors must be brought in. As soon as the question of creating transport companies arose, the city was flooded with individual entrepreneurs and small carriers. It is a good business, but civilized transport still has to be centralized. Large bus fleets then emerged and competed for passengers, and their main goal was profit. Yet this is a part of the city, and in a sense a monopoly, since each route is unique and is assigned to a specific fleet. In such a situation, bus fleets naturally try to maximize profit and avoid paying taxes. Since most revenue was collected in cash, it was easy to sidestep tax payments altogether. And with no competition and no incentive to invest in comfort and convenience, given their monopoly position, the quality of our transport leaves much to be desired.

That is why what the akimat is now introducing through the Onay system is an enormous step forward. It will make it possible to:

1. Assess the real economic condition of the industry

2. Evaluate routes and plan public transport traffic properly

3. Monitor occupancy and manage passenger flows, increasing or reducing the number of vehicles depending on the time of day

4. Raise revenue to the government budget by bringing this business out of the shadows

5. Calculate the payback of each route and attract strategic investors, since it is much easier to attract an investor to a business with clear and transparent economics. This will also make it possible to identify loss-making routes and provide subsidies correctly.

6. Improve the city's image and attract more tourists

7. Reduce the number of private vehicles and improve the city's environment

The list could go on, but let us look at this from the standpoint of public finances.

Ridership is currently estimated at 1 million people a day. At a fare of KZT 80, that comes to KZT 80 million a day, KZT 2.4 billion a month, or KZT 28.8 billion a year. Bringing this sector out of the shadows will increase the city's budget revenue. By creating favorable conditions, it will also raise ridership, which in turn will make the project more attractive to investors and draw in still more passengers.

The main problems with public transport are inconvenience, poor service, and a lack of any systematic approach. There is no clear timetable, buses are overcrowded at rush hour, and the dirt and constant bus races keep people with average incomes from switching to this mode of transport.

First of all, ridership can be increased by drawing in those who use unlicensed private taxis ("bombily"). For many people this is a source of income, especially for newcomers to the city, but above all it means traffic jams, emissions, and accidents.

When people feel that it is faster to get somewhere by bus, metro, or trolleybus, they will use that transport.

This will naturally take some vehicles off the roads, and the city will become a little less congested in the process.

The second step will be to get some of those who commute in their own cars to switch. This is a harder task and requires a package of measures, both incentives and restrictions.

Only a significant improvement in the quality and speed of public transport, together with an economic incentive, can encourage people to switch. When people understand that public transport is faster and cheaper than driving, they will use it. It is important to understand that this must be accompanied by restrictions on free parking in the city center and the introduction of paid parking. This will create both a constraint and an economic incentive.

The city's akim (mayor) spoke about all of this at his annual report meeting with residents, and I fully agree with him.

Naturally, every system has shortcomings, and when the authorities acknowledge them and address them, they deserve every support.

Dear residents of Almaty, let us all support the akimat's initiatives in public transport. If each of us helps and encourages the akimat, even with a simple post, a word, or an action, the city will keep getting better.