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View Full Version : Subsidies do not make efficient transport



NewsWhore
06-09-2011, 04:30 PM
A news report in El Dia points out that government subsidies to privately-owned multi-fare paying taxis (conchos) and minibuses have been costly and have failed to make public transport efficient. The report says that the government preferred to spend RD$1.4 billion in subsidies to the private operators rather than use the money to place a letter of credit for the purchase of 198 buses for the OMSA governmental large bus fleet. The diesel subsidy amounted to RD$549 million for minibus operation, and another was delivered to 20,000 private taxi owners for RD$3,420 each for subsidizing propane gas consumption for the vehicles.

The report says that the OMSA bus order has been placed, but not shipped. The buses would be more beneficial for public transport users who pay RD$10 for the long routes, compared to RD$25 for the public taxis for shorter routes.

Autozama, the importer of the buses, says that of an initial order of 300 buses placed in 2007, the government has only paid for 102, and the order for the remaining 198 is pending.

El Dia reports that one of the greater problems of transport in Santo Domingo is that 73% of the vehicles used can only transport 15 or fewer passengers. 30% of the fleet in use can transport 30 passengers, but only 3% can mobilize 45-55 passengers. The conchos are the main unit in use but they can only transport six people. El Dia concludes the conchos are part of the transport chaos.

It mentions a report by the Technical Ground Transport Office (OTTT) that served as base for a transport development plan that indicates that the average unit in use is 18 years old. The study indicates that urban transport is full of conflicts, where the low capacity of vehicles is critical. 86% of units are conchos only capable of transporting five passengers.

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