TAUG Announces its Entry into the Rural Bus Market in Cameroon
Transnational Automotive Group (OTCBB: TAMG)
SEATTLE, WASHINGTON–(MARKET WIRE)–Jun 29, 2006 — Transnational Automotive Group, Inc. (OTC BB:TAMG.OB – News), (”TAUG”), today cited the Company’s continued progress towards implementation of its international business plan by announcing that it will enter the rural bus market in Cameroon. TAUG has completed its market analysis and has decided to enter the lucrative rural bus market with 11 coaches which are now en-route from Shanghai to Cameroon.
To stage its entry into the market, TAUG will make use of “LeBus”, its urban bus company that has established infrastructure in the capital city of Yaounde. “As part of our commitment to the Government of Cameroon to supply a urban bus service, we already have the infrastructure to launch other transportation services such as a bus service that will transport passengers between the port city of Douala and Yaounde. These two cities are Cameroon’s largest with an aggregate population of approximately 5 million people,” said Mr. Don Durand, the President for Africa Operations. “LeCar, which means “coach” in French, is the name of this new service. It is our plan to closely link both the urban bus systems operated by LeBus with the rural bus service operated by LeCar to achieve a sustainable competitive advantage over existing services.”
TAUG currently has 28 buses en-route from Shanghai China with an estimated arrival in Cameroon around the 16th of July 2006. Of the 28 buses, 17 are city buses to be used by LeBus and the remaining 11 are coaches, which will be used by LeCar during the market entry phase which aims to achieve profitability in 6 months and to establish the foundation for rapid growth in Cameroon.
The Yaounde-Douala route is approximately 250km long and takes 2.5 hours. There are currently 10 small companies offering discount service carrying approximately 88,000 passengers per week. Two companies also offer VIP services that transport approximately 3,416 passengers per week. Rural bus transportation in Cameroon is normally very profitable, which explains why the existing, poorly managed companies are currently in business.
“During our market study we discovered several customer “pay” points: safety; price point; and, service. Based on our analysis, we learned the two highest contributing factors to accidents causing delay, injury or death were poor servicing of vehicles and driver fatigue. None of the competitors inspect/service their vehicles between trips nor do the drivers get adequate rest. LeCar intends to build a unique market position that offers superior service at mid-market price points with an operational focus on safety,” continued Mr. Durand.
LeCar has planned its route timetable and its costs to include a VIP service at a lower price point, with increased driver and vehicle care, and a higher level of customer service. Each coach is installed with air conditioned and video entertainment and will have food service. The financial analysis demonstrates that this is still highly profitable and will likely put cost and price pressure on the competitors. Once it attains profitability the Company plans to rapidly expand to other cities in Cameroon.
“With the arrival of the buses mid-July we are targeting an end of August start date for rural service,” concluded Mr. Durand.
Transnational Automotive Group (OTC BB:TAMG.OB – News), a Nevada corporation, is a transportation management, sales and manufacturing company. Our vision is to become the leading provider of transportation management and vehicle sales in the developing world. Headquartered in Seattle, WA, TAUG has been established through key acquisitions of leading transportation and automotive businesses.
This news release contains certain “Forward-Looking Statement” within the meaning of Section 21E of the United States Security Exchange Act of 1934. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents files from time to time with the Securities Exchange Commission.
Contact:
Contacts:
Transnational Automotive Group, Inc.
Mr. Dan Goldman
Director, VP Business Development and Treasurer
(206) 262-7413
(206) 262-7814 (FAX)
dgoldman@transauto-group.com
http://www.transauto-group.com
Source: Transnational Automotive Group, Inc.
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