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Saudia, S Alam tie up to drive Mercedes Benz bus on highway

Sohel Parvez
Two of the country’s long distant bus companies, Saudia and S Alam, have joined together to bring 100 Mercedes' Benz coaches worth around Tkl50 crore to Bangladesh as the battle for luxury class passengers on the country's main highways intensifies.
Ten of the 41-seater Mercedes Benz to be operated by Saudia and S Alam have already started running on the Dhaka-Chittagong-Cox's Bazar route and further 90 vehicles are to be supplied during the next 12 months.
According to the companies, this is the first time Mercedes Benz coaches have been used on a large scale in Bangladesh.
‘People in our country like this brand very much. We have brought the bus as passengers also want a comfortable journey," said Kafil Uddin, vice chairman of Mostofa Group, the parent organisation of Saudia Coach Service.
Experts said entry’ of Mercedes Benz in bus service will increase competition in the luxury segment as two of the country's other coach service providers-Green Line, Shohagh Paribhan (Pvt) Ltd are offering services with Scania and Volvo buses on different routes in Bangladesh.
‘The more the competition the more the benefit of passengers," Abdus Samad Labu, vice chairman of S Alam Group, said, adding that parent organisations of the coach service formed the joint venture to do business on a greater scale.
"It will also help minimise risk factors and cut costs," he said.
Usage of high tech or air condi-
tioned buses from the prestigious global manufacturers started in Bangladesh during the late nineties in order to cope with the changes in the tastes of consumers.
Kafil said the demand to ride on high tech vehicles or air-conditioned buses is rising during the last couple of years due to a rise in people's purchasing capacity.
"We have got an excellent response. The average occupancy rate in our buses hovers between 75-80 percent," he said.
The S Alam Group and Mostofa Group, parent organisations of S /Mam and Saudia Coach Service signed the deal early last year with shareholding position of50:50.
“We have a plan to invest about Tk 150 crore (Tk 1.50 billion) between January and December," Kafil said.
“Some 10 more buses will come within this month, while the rest will come gradually," Kafil of Mostofa Group said.
“We will stan operating on the
Dhaka-Sylhet route next. We will gradually expand our operation on the Dhaka-Benapole, Chittagong-Benapole and Dhaka-Khulna routes," S Alam's Labu said.
SM Ziaul Huq, former chairman .of Bangladesh Bus TYuck Owners' Association, said entry of Saudia and S Alam with Mercedes Benz will increase competition.
“It will help make competition more even and encourage entry of more globally famous brands here," he said.