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Expert says independent authority must regulate tariffs for public transport in Moldova

13:44 | 11.12.2019 Category: Economic

Chisinau, 11 December /MOLDPRES/ – The transport tariffs must be removed from the influence of the politics, they must be regulated by an independent authority. So, as not to create other structures, it is necessary to delegate this function to the existing regulators, as it has been done with other public services.

However, in order to avoid the sudden increase in tariffs, it is necessary that the regulators have a period of 05 – 07 years of tariff adjustment, in parallel with the solution of the problems in the field, which also causes unjustified increases of tariffs, considers economist of IDIS Viitorul, Veaceslav Ionita.

The expert writes on his blog that the last time the tariff was adjusted in 2014, when it was raised up to MDL 0.48/km, after 2009 it was maintained at a level of MDL 0.38/km. However, since the recent increase in tariffs, the current costs of the carriers have increased significantly, especially this refers to the salary of drivers. In that period, the salary on the economy increased on average by 80 per cent, from MDL 4,090 in 2014 up to MDL 7,400 in 2019.

On the other hand, the passenger transport market in Moldova is a fragmented one, unique in Europe. Currently, 498 companies operate on the market, serving over 7,000 routes, of which 4,000 district routes and over 3,000 international routes. The public transport is dominated by low capacity buses of up to 20 passengers, which make up 2/3 of the total bus park. There is a large number of operators with only 01 or 02 – 03 vehicles, and between them there is no form of cooperation for optimising routes and minimising costs, considers Ionita.

According to him, given the excessive fragmentation of the intercity transport market, the operating costs are high, respectively the partial tariff increase is determined by the inefficient system of organising the passenger transport. In opinion of expert, the optimisation of long – distance routes would reduce costs by at least 20 per cent.

The moral and physical wear and tear of public passenger transport is very high, at present on the roads of Moldova, there are 11,500 buses over 26 years of age. In other words, half of the bus park is actually coffins on wheels, which endanger daily the lives and safety of passengers, says economist.

He proposes several solutions, including an immediate one: abolishing age restrictions on bus importation, "which would lead to the ten – year rejuvenation of the age of bus park". The medium – term solution would be for tariffs to be regulated by an independent authority. And, according to the economist, the long-term solution would be to reconsider the intercity transport network. Hundreds of companies, thousands of routes, buses of small capacity, lack of cooperation between operators, "increase unjustified by at least 20 – 30 per cent passenger transport costs".

The carriers have announced for today a protest at which, according to them, will participate about 1,500 transport units from 35 districts and municipalities. The protesters ask for the tariff to be increased from MDL 0.48 up to MDL 0.72 per km. Following several discussions between the route owners and representatives of the Ministry of Economy and Infrastructure (MEI), the parties have drafted a memorandum which has not been signed yet.

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