By The Citizen reporter

Once the largest provider of inter-city bus transportation in Tanzania, Scandinavia Express Services, is no more, The Citizen can authoritatively reveal.

For about three months now the company that used to serve 18 destinations in Tanzania, Kenya, Uganda and Zambia, with over 40 daily departures, has not got even a single bus in operation.

Passengers who have been seeking to travel with the company buses have met big locks hanging on doors of the company’s grey and red coloured offices at the Ubungo Bus Terminal.

Impeccable sources said the company could have quietly been liquidated of all of its assets. These mainly comprised air conditioned buses that had bodies built by the Brazilian firm, Marco Polo Limited. The company was in dire financial traits.

The sources said Scandinavia had also shut down several of its up-country and regional offices, and brought their furniture to the headquarters in Dar es Salaam many months now.

Reports suggest that owners have ventured into other businesses, one of them being importing vehicles, mostly long buses, into the country.

Following the ‘downfall’, the company gave a three-month unpaid leave to its more than 50 Dar es Salaam workers in mid-April this year. But when they reported to work early this month, they were told they would be recalled next month, according to our sources.

But the suspended workers have complained that the company had not paid their February and March salaries.

They separately told this paper that they had been left in dilemma, not knowing what to do, as their employer had subjected them to unpaid leave while they had some obligations to cater for.

“It is bad that we are not told the truth. Since mid-April, the boss told us to go on an unpaid leave and come back early July to resume work as he could have brought new buses and resumed services,” lamented a worker who asked for anonymity.

“But come July, there were no new buses in the yard. He then told us to go and proceed with the leave until the end of August when he will resume operations,” said the employee.

Reached for comment, the company’s director, Mr Abdullah Mohammed, declined to say anything on the matter. He explained that Scandinavia was a private company and its falling down was nobody’s business.

“Had I wanted to talk to the press I would have called you. I am the one who chooses when to go public on any issue concerning my business,” he curtly replied.

Having catered for the needs of a diverse customers’ base for over 20 years, Scandinavia Express Services had uniquely positioned to serve the growing market and attracted countless clients in the East African region.

The company, which entered the Uganda market in February 2002, was placed fifth overall in the Services category of the 2004 East Africa’s most respected company survey.

It had also a considerable market share in the parcel forwarding and money transfer business through a growing number of destinations, a void that has since been taken by the fast mobile phone services. 

To be remembered will be the reputation it had created in sticking to safety and high quality for its services. This made customers in the region feel satisfied with the value for their money.

In 2003, the Government of Uganda gave the company, the Best Developed Bus Company award. That year, the company was also declared overall winner of the Most Improved Company award by the Government of Kenya.

On the World Health Day in April 2004, Scandinavia was awarded the prestigious road safety certificate in Tanzania for excellent service towards the promotion of road safety.

However, according to sources, the company has retained only one vehicle for courier services due to the fact that it had entered into a contract with DHL. It was thus obliged to honour the contract and wind up the business at the end of this year when it expires.

When Scandinavia Express was established over two decades ago, only a few modern, luxurious buses existed in Tanzania. 

With about 100 buses, the company had regularly scheduled intercity transportation to most cities, towns and small villages across and beyond Tanzania.

Analysts say its exit could be received with jubilation by competitors who have since flocked forcefully to the sector and created an intensified competition for routes within and outside the country.

Scandinavia Express Services began its first cross-border service in 2001 between Dar es Salaam and Nairobi, Kenya. The success of that regional route spurred further expansion to Kenya’s resort city of Mombasa.

In the following year, the Nairobi service was extended westwards to Kampala in Uganda. Then in 2003, Scandinavia Express Service became the first schedule luxury coach to operate between Tanzania and the capital of Zambia, Lusaka.

The unpleasant wind started to blow toward the company in 2005, four of its modern buses were impounded by the CRDB Bank over an unpaid loan. The bank accused it of failing to honour the loan agreement between the two parties.

The bank’s action followed petitions in the High Court of Tanzania by Standard Chartered Bank, African Banking Corporation and Shell Tanzania Ltd. All sought legal action to recover a total of Sh5.797 billion ($5.7 million) owed them by Scandinavia.

The CRDB Bank, for its part, went a step further towards debt recovery by appointing Mpale Kaba Mpoki, of Mpoki and Associates, as receiver managers of the assets of Scandinavia.

Sources said that, with such loans and escalated economic hardship due to high operational costs, the company could have been liquidated to furnish its enormous arrears.