q How to make the wheels go round

Barbara Gruehl Kipke

How to make the wheels go round
Introduction

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In this section:

INTRODUCTION
CYCLING IN COMPARISON TO OTHER NMT MODES
BICYCLE PRODUCT MANAGER(S)
MARKETING CYCLING
MODAL SPLIT TARGETS


INTRODUCTION

This report is the result of three and a half weeks of preliminary research into the bicycle supply situation in the four cities of Dar es Salaam and Morogoro/Tanzania and Nairobi and Eldoret/Kenya. It is not meant to be a final report, but rather a documentation of the present, albeit incomplete picture that has been gained up until now. It can be used as a starting point where one can fill in the gaps. Ultimately, the aim is to come up with recommendations in the form of a CYCLING ACTION PLAN.


CYCLING IN COMPARISON TO OTHER NMT MODES

As part of the so-called Non-Motorized Urban Transport Component in Sub-Saharan Africa, one of the components is of course the bicycle - or better said, we are looking at the cyclist and his or her needs. The needs of cyclists are quite different from those of the pedestrian, where there are no vehicle requirements. In the same manner, hand cart users who transport goods have quite different concerns. In order for cycling to be able to take off properly, it is felt that the bicycle supply situation should be looked at in particular. Cycling has advantages that the other NMT modes do not offer. The potential efficiency gain is quite impressive - the ability to move 3-4 times as fast and the ability to carry 2-3 times as much as by headloading ie. a 12-fold maximum efficiency gain.

How to make the wheels go round - The Bicycle supply situation

"The Bicycle Supply Situation: How to make the Wheels go Round" was a worthwhile focus. By pointing out that cycling issues are quite different from pedestrian issues, it became clear that by emphasising NMT - each of the different individual modes: pedestrians, cyclists and hand carts were not getting the individual attention they require. For example, 14 out of the 18 cycling issues mentioned in "the wheel" are irrelevant to the pedestrian. It would be worthwhile, in the same manner, to subsequently focus on pedestrian issues in their own right.

The terminology NMT encourages forgetting the individual different modes. An alternative terminology for these sustainable transport modes would be the use of a Swahili short form: KBM - Kutembeya, Biciceli, Mkokoteni (walking, cycling, hand cart).
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BICYCLE PRODUCT MANAGER(S)

This contribution aims at bicycle product managers1 whose goal is to increase the modal split in favour of cycling and thereby to increase the overall mobility of the majority of the population. The question has to be addressed as to who should become a bicycle product manager? Is it a member of the Pilot Project Unit (PPU), a national team member or an employee of the Municipality or a committee including several members? In the short time span available, no individual crystalized to become the local bicycle product manager. The different aspects involved contributions from national team members, PPU/UMU members and Municipality employees. It could even be said that I became a sort of bicycle product manager (even receiving the nickname: Mama Biciceli in Eldoret). Since a bicycle product manager can not be situated abroad, it is necessary to clearly appoint responsibilities at the January workshop.
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MARKETING CYCLING

According to traditional concepts, the bicycle industry should be the one to market the bicycle. As can be seen below, however, key success factors that are a prerequisite to increased cycling lie outside of the bicycle industries control. Furthermore, the margins earned on bicycles are not that high that substantial amounts of money would be spent on advertising. One possibility is to strengthen the bicycle industry so that they are willing and able to invest more in creating a positive bicycle image.

Bicycle product managers also need to give some thought as to what image they want to project of cycling. The PPUs in Temeke and Morogoro have focused the KBM issue around safety which is also relevant to cycling. The advantage of this market positioning is that it rallies everybody on a subject that everyone can agree on. The disadvantage is that it points out a disadvantage of cycling - the lack of safety rather than a positive attribute such as health benefits, the benefit of freedom, ecological benefits, speed benefits etc.

One suggestion by an international team member was to highlight peoples' ability to take things into their own hands by taking up cycling. The bicycle is within their reach and can be used to actively improve their life situation.
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MODAL SPLIT TARGETS

Basis for the bicycle product manager's mandate is the decision by the transport planning authority that the cyclist modal share is to increase to a certain level (for eg. from 1% to 5% by the year 2000). It is important to have political support for this change in direction since there previously was no cycling policy. Discussions in both Kenya and Tanzania have shown that in both countries there is the necessary support to go forward. Some of the policy decisions are not easy for politicians to make, such as whether to subsidize the sustainable transport sector or reallocate road space in favour of pedestrians, cyclists and hand carts. Improving mobility by improving the situation of pedestrians and cyclists is in fact a prerequisite to economic development - in comparison to Asia where many people cycle, Africa is presently at a competitive disadvantage.

In Dar es Salaam according to the Cowiconsult Report of 19832, cyclists made up a mere 0,5% of the modal split. In Nairobi, cycling represented only one per cent of the modal split in 19943. First interviews in Eldoret came up with a 2-10% modal split of cycling to work4. A provisional traffic count in Morogoro had a 31% modal split for cycling on one route5.

We can therefore basically talk about an introduction/renaissance of cycling in Dar es Salaam, Nairobi and Eldoret, whereas in Morogoro it is more appropriate to talk about improvement of the situation for cylists/preservation of the valuable existing cycling6. In both cases, there is still potential to increase the role of cycling since the approach so far has been "laissez-faire" instead of integrating cyclists' needs into the transport planning process. It is important to become specific about the modal split targets the bicycle product manager(s) set as well as how to reach those targets.

WORKPLAN
1) In Nov./Dez. 1995 a start was made towards developing a CYCLING ACTION PLAN in all four cities: Dar es Salaam and Morogoro, Tanzania & Nairobi and Eldoret, Kenya. The first step of such a cycling action plan is to look into the present situation. Due to the short time available, this could only be partially completed and is summarized in this report. The CYCLING ACTION PLAN should include both a comprehensive analysis of the present situation and recommendations based on the analysis of the present situation.

Box 1
Table of Contents of the CYCLING ACTION PLAN
1. Introduction
   1.1 Bicycle Product Manager(s) - Who are they?
   1.2 Marketing Cycling - What image should cycling get?
   1.3 Modal Split Targets - How should the cycling modal split develop?

2. How to Make the Wheels go Round:
   2.1 Product
        2.1.1 Bicycle Manufacture/Import
             - Present Situation/ Recommendations
         2.1.2 Bicycle Types
             - Present Situation/ Recommendations
         2.1.3 Bicycle Accessories
         2.1.4 Bicycle Infrastructure
             - Present Situation/ Recommendations
         2.1.5 Bicycle Theft/ Bicycle Parking
             - Present Situation/ Recommendations

   2.2 Price
         2.2.1 Pricing
             - Present Situation/ Recommendations
         2.2.2 Bicycle Credit Schemes
             - Present Situation/ Recommendations
         2.2.3 Bicycle Registration
         2.2.4 Bicycle Taxes
             - Present Situation/ Recommendations
         2.2.5 Bicycle Insurance

   2.3 Place (Distribution Channels)
         2.3.1 Bicycle Sales Outlets
             - Present Situation/ Recommendations
         2.3.2 Bicycle Taxis
         2.3.3 Bicycle Rental
             - Present Situation/ Recommendations
         2.3.4 Bicycle Repair
             - Present Situation/ Recommendations

   2.4 Promotion
         2.4.1 Teaching Cycling
             - Present Situation/ Recommendations
         2.4.2 Gender Issues/ Potential Cyclists
             - Present Situation/ Recommendations
         2.4.3 Bicycle Promotion
             - Present Situation/ Recommendations
         2.4.4 Bicycle Culture

Appendix:
Map of Cycling Infrastructure
- including cycle paths
- including bicycle rental locations
- repair locations /parking (including informal parking)


2) Bicycle credit schemes require special attention if they are to be recommended in Phase II, Part II of the SSATP Non-Motorized Urban Transport Component. If bicycle credit schemes are considered an option, it will be necessary to come up with detailed proposals in at the latest early February 1996 - this issue should therefore be dealt with first.

Recommendations regarding introduction of bicycle credit scheme:
Introduction of credit schemes would be easiest in Morogoro for the following reasons:
1) There are groups who would greatly benefit from such a scheme.
2) Organisations such as the Municipal Council or SIDO could be used to disburse funds and ensure repayment of loans.
3) There is a bicycle culture in which women also cycle.
4) The safety issue is not as much of a hindrance as in the other cities.

On the other hand, I would hardly recommend bicycle credit schemes in Nairobi at such an early stage because dangerous cycling is not an option at present. Bicycles would therefore either be sent to the villages or, far worse, left parked somewhere, but they would not benefit the pilot area in either case.

The situation in Temeke lies somewhere in between. Cycling within Temeke itself is not dangerous. If the target group, women who have problems fetching water, were chosen to obtain the first bicycles (refer to fast payback of investment), these women would have to traverse "suicide junction" to reach the water source. The safety issue at suicide junction would therefore have to be dealt with first if this target group were chosen. Another hindrance is the lack of a suitable administrator for such a bicycle credit scheme - there is no bank in the area for example. In Eldoret, introducing a bicycle credit scheme should be carefully coordinated with looking into the possibilities of women taking up cycling at the same time. At present it is hardly acceptable for a woman to cycle although a few women do cycle on secondary roads. Some may say, in Eldoret there is no tradition of women cycling - in fact, cycling is not a very traditional mode of transport in the first place (ie. 100 years old). Cycling was first taken up by men because there were not all that many bicycles in total - as more bicycles are introduced, women would be second in line for a bicycle. Furthermore, Uganda road, one of the major roads in Eldoret, is quite a dangerous route as well as a major thoroughfare for cycling traffic, which means that safety on Uganda road should be addressed first.

Budgetary requirements:
In terms of a budget for such a proposed bicycle credit scheme:
For example:
    Target area = 200 000 residents
    Increase in modal split = 5%
    Timeframe of increase = 5 years
    --> 1% per year = 2000 bicycles / year
Implications/Assumptions:
In this case, 2000 bicycle applications would have to be processed within a year (by whom?). The payback period for a bicycle would be a year in this example (which is also a usual payback period). Bicycles would be used in proportion to their numbers (ie. not parked in some backyard). Costs: The cost of fully pre-financing 2000 bicycles in a year would be:
    2000* 45000 TS/600 TS/US$ = 150.000 US$ in Tanzania
    or 2000* (5000 KS/50 KS/US$)= 200.000 US$ in Kenya
Since approximately 200.000 US$ per pilot area is quite a substantial financial requirement, possibilites of lowering the initial capital requirement are listed below:
    a) The targeted modal split increase could be lowered. The disadvantage is that if a noticable number of bicycles is not introduced into the pilot area it won`t make an impact that is noticeable one way or the other.
    b) The bicycle loan per person could be lowered. The bicycle price mentioned in this example, is the price for a good quality bicycle. If the lowest quality bicycle is chosen, the capital requirement could be cut in half.
    c) A downpayment of 50% for example could be required from bicycle purchasers, thereby reducing capital requirements by half. Perhaps some target groups would not be able to come up with the initial capital, however.
    d) Employers could partially pre-finance the loans.
    e) Purchasing large quantities of the same bicycles could reduce the price of the bicycles.
    f) Charging higher interest rates than "at cost" (refer above) would enable distributing more bicycles as the years pass. This would, however, make such a bicycle loan less attractive, because bicycle loans at high interest rates exist already.
The interest rate charged should:
    a) correspond to the inflation rate that has been experienced in terms of increased bicycle costs over the years (for eg. in Tanzania, they had a 43% price in 94 and another 17% price increase in 95).
    b) the interest rate should also include a risk component that anticipates some bad debts.
    c) a small processing fee should be charged for each application that becomes a loan. - The interest should include these 3 aspects; otherwise it would not be a revolving credit scheme.
One could also decide not to get into bicycle credit schemes because they are difficult to manage. In this case, one could tap other organisations' resources - ie. encourage employers to provide bicycle credit schemes that are paid back through salary deduction. Large employers could be targeted. People involved in the informal sector would not profit from such schemes, however. The advantage is that there is no financial risk involved.

Even if bicycle credit schemes are financed within the SSATP project, supplementing the scheme by encouraging employers to consider bicycle credit schemes would increase the chances of success.

3) A few Focus Group Discussions (FGDs) were held with:
- women cyclists/non-cyclists in Temeke (refer to FGD report from the Temeke PPU - Part II of this report) and Morogoro
- bicycle hirers/repairers in Morogoro based on the questions that can be found in Appendix 1.

Unfortunately, no FGDs were conducted in Nairobi because other important FGDs in preparation of the User Platform Formation were still in process.
In Eldoret, discussions with individual woman cyclists were undertaken, but a group to hold discussions with could not be formed in the time available.
Further FGDs are useful to gauge present attitudes towards cycling and address specific issues that pertain to cycling. The FGDs also ensure that the CYCLE ACTION PLAN is based on the needs of the users.

The PPU in Morogoro has yet to complete a report on the women cyclists/non-cyclists and bicycle hirers/repairers FGDs that took place on 18/19. November 1995.

4) The bicycle suppliers were encouraged to form a BICYCLE SUPPLIERS FORUM to lobby for their (and cyclists) interests. A bicycle suppliers' luncheon was held in each city in order to facilitate the formation of such a bicycle suppliers forum in an informal setting. Previously, the bicycle industry had not participated in workshops they were invited to held on the subject on NMT - they felt they could perhaps profit from this project, but that they had nothing to gain if they joined in the effort. The bicycle suppliers' luncheon was received quite differently from city to city - in Morogoro no one showed up at the luncheon! (refer to "Food for Thought": Appendix 2) while the other extreme was in Nairobi, where over 20 participants showed up (also largely due to the rallying efforts of Mr. Kotecha, Rimaki Agencies). Generally, getting bicycle suppliers together is a delicate matter which requires patience and the right "entry points". It was already a success when bicycle suppliers appeared for the luncheon and had informal discussions with their competitors. In all cases, this initial bicycle suppliers' luncheon is only a first step to unite the bicycle industry so they can benefit from more "economies of scale" and lobby together on issues of vital iterest to them all.

5) Proposed Workplan:
Box 2
Proposed Workplan:
Person Responsible: Date of Completion:
1) Produce a map with all - bicycle dealers, bicycle hirers, bicycle transporters, bicycle repairers, bicycle parking (including informal parking) marked on it.   
2) Report on FGDs - Women cyclists/non-cyclists - Bicycle hirers/bicycle repairers - Other relevant groups   
3) Cycling Action Plan including modal split targets (including all 20 "spokes of the wheel") 1) Present Situation 2) Recommendations & time plan for implementation & pictures   
4) Presentation of Cycling Action Plan to the User Platform   
5) Convene 2nd bicycle suppliers forum to introduce Cycling Action Plan   
6) Barbara Kipke's return to cities to follow up on bicycle supply activities in April/May 1996   


As can be seen on the cover page of this contribution, there are many aspects that have to be covered to "make the wheels go round". The topics are arranged below according to the 4 P's of marketing: Product, Price, Place (Distribution Channels), Promotion7, and are listed below as they appear on the cover page:
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