Message from the President
Established in 1946, the Saskatchewan Transportation Company (STC; the Corporation) is a Crown Corporation of the province of Saskatchewan. STC is subject to The Crown Corporations Act, 1993, which provides the Crown Investments Corporation (CIC) of Saskatchewan, the holding company for Saskatchewan’s Crown corporations, the authority to establish the direction of the Corporation.
Corporate Mandate
STC is a provincial coach company which provides safe, affordable and accessible bus passenger and freight service to Saskatchewan communities.
Mission Statement
To provide Saskatchewan residents with
CONVENIENT, AFFORDABLE, SAFE, COURTEOUS and
RELIABLE passenger and freight transportation services.
Message from the President
2009 was a year of rebuilding and transition for STC.
Since the Greyhound bus tragedy in July 2008, a formerly growing ridership has declined due to residual effects stemming from the incident. 2009 ridership revenues were below budget and 4.2 per cent below 2008 results. Under the direction of our Board of Directors and executive staff, a number of measures were taken to alter this. We are confident in the direction we are heading.
2009 saw the initiation of deeply discounted seat sales with the intent of boosting ridership. The first two sales, a targeted route sale limited to three routes, and a 40 per cent discount on any service Monday through Thursday, achieved mixed results. It was the third and final sale that transcended any of our expectations. With the $7 Seniors Anywhere Fare sale held in September, ridership figures spiked. A 40 per cent overall increase and a 227 per cent rise in senior ridership marked the calendar month. What is normally a slow month for our business became the busiest time of year.
2010 brings the promise of more successful promotions like the seniors sale. We will build on the momentum, taking what we learned from that marketing strategy and incorporating it into our new sales initiatives in the coming year.
A common misconception among the general population is that bus travel is a negative experience. STC has set out to debunk this perception. This year, we took great steps to improve our coaches. STC added amenities such as more leg room, fold down trays, AC power outlets, and window blinds to its vehicles. Possibly the most intriguing augmentation for our customers is Wi-Fi access added to the Saskatoon – Regina route. Now, customers travelling between the province's two largest cities can enjoy free internet access for work or leisure. As SaskTel increases its wireless capacity in the province, STC plans to upgrade its internet capabilities on more routes. The advantages of all these improvements are twofold – to boost the riding experience for our regular patrons, and to extend the appeal of STC to untraditional customers.
At STC, we believe we have achieved our goal of improving our services. 91 per cent of our customers rated STC's service as "good" or "excellent" in 2009, two per cent better than in 2008.
Furthermore, STC still stresses its customer safety and environmental stewardship. A majority of drivers completed self defense courses in 2009 and we implemented numerous security measures. STC continues to focus on "green", using environmentally efficient fuel sources where possible and asserting the planetary benefits of public transportation through various promotions and partnerships, such as with the Saskatchewan Environmental Society.
One continuing challenge the company faces is the thin population base relative to the province's large area. Saskatchewan has the most geographically extensive bus service in Canada; it is this breadth of service that gives rise to the need for subsidization. The Government remains committed to providing Saskatchewan people with access to a safe and affordable transportation alternative. It is unlikely another carrier would ever step in to fill STC's role, as the passenger numbers and freight volumes on the majority of STC routes are not sufficient to cover costs.
The company uses revenues generated from profitable routes to support the lower density routes. Subsidization of bus routes is not unique to Saskatchewan. In all parts of Canada, profits from high density routes are used to offset the losses on low density routes (cross-subsidization).
STC continues to ensure a strong presence in communities across the province. After granting service between Prince Albert and La Loche in 2008, the route extended to include the communities of Green Lake, Canwood, Debden, Shellbrook, and Big River in March 2009. Although ridership has been low thus far, it is a valued service for those passengers who need to connect with northern communities.
Despite all these challenges, STC stays committed to containing costs. As fuel prices and other expenses inflate operative spending, we continue to explore ways of maintaining our duty to the shareholder, Crown Investments Corporation. Reconfiguring routes, adjusting expenses, and seeking every opportunity for securing more revenue are utmost priorities. At the same time, we pledge to maintain and improve the standards we have set for customer service.
The challenges we face are common to bus companies across the country. While the work ahead is daunting, I know it will not be overwhelming for our staff. I am encouraged by their daily efforts and can assure the province that their bus company is in good hands with the intelligence, dutifulness, and aptitude of our employees. 2009 laid the groundwork for success in the coming years. We will continue to provide dependable, affordable, safe, and exceptional service in transporting people and products across Saskatchewan.
Shawn Grice
President & CEO