The Kuwait Public Transit Company (KPTC) provides the only source of mobili
ty for a large percentage of the low-income expatriate labourers in Kuwait
since the price of the taxi system-the only alternative mode-is beyond thei
r reach. The KPTC also provides transportation services for schools, privat
e agencies and government ministries, as well as for the handicapped. The K
PTC transit fleet includes a variety of bus vehicles purchased from differe
nt manufacturers. In this research study, performance indicators for a samp
le of transit routes are computed and the maintenance and operation cost re
cords for nearly 1000 buses were obtained from the files of the KPTC and an
alysed. Unit costs for each bus type were calculated and compared. In addit
ion, the life-cycle cost-one that includes capital investment, maintenance
and operation expenses, as well as salvage value-was also calculated and co
mpared. The results indicated that a significant reduction in costs would b
e accomplished if the route operational policies, purchase-decisions and th
e daily operation level of the buses were based on their life-cycle cost.