2013News

Diario Libre releases data on the chaotic transport market

Based on the findings of a 2011 study by the government’s Technical Ground Transport Office, Diario Libre reporters tell their readers that they are overpaying by more than RD$356 million in transport a year. Maria Paz Conde of the OTTT says that 1,250,000 people use public transport every day. The report, “Illegality, bribery and overvaluation of rates in the millionaire transport business,” says the system has evolved chaotically due to weak government regulation and aggressive transport organizations on routes that are known to have offered bribes of up to RD$6 million for a single route, affecting the cost of the service. The OTTT has registered 17 transport organizations, including Metro, Caribe Tours and Terrabus companies. The OTTT has registered 1,309 regulated routes, of which 602 are inter-urban and 707 urban. The Metropolitan Transport Authority (Amet) has 208 routes registered for the Greater Santo Domingo. OTTT director general Hector Mojica cites that the transport organizations have estimated the volume of revenue of the transport business at RD$50 billion a year, while other business sectors say the volume is closer to RD$120 billion a year.

Data from the Ministry of Hacienda shows that in the past year and seven months, transporters have received RD$3.2 billion in diesel subsidies from the government and RD$2.3 billion in propane gas subsidies. OTTT says that an excessive number of seats is available on public transport routes, making transport more chaotic.

Reporters mention that drivers on the route say they have to pay RD$150,000-RD$400,000 to the “owner” of the route to pick up passengers. Junior Frias, secretary of the Siuchosani transport union told the reporters that the route from San Isidro to Juana Saltitopa/Paris costs RD$150,000. He estimated that a bus on the route produces RD$5,000 a day, by charging passengers RD$35 for the ride. He estimates the operational cost at around RD$3,000 and the difference is distributed as follows: 60% to the vehicle owner, 25% to the driver and 15% to his assistant.

The report mentions how people who have “purchased” the routes do not allow pirate taxis to operate. It mentions there have been several deaths when some have dared take market share.

In an online poll by Diario Libre, 90% of 531 who voted said the service was bad.

www.diariolibre.com/destacada/2013/05/09/i382760_ilegalidad-sobornos-sobrevaloracion-tarifas-millonario-negocio-del-concho.html