License renewal would hinder public transportation reform

ASSUMPTION- After intense negotiations between the Government and the public transport business sector in the country, an agreement was reached that avoids the strike scheduled for Tuesday, June 11. However, the renewal of existing licenses emerges as a point of conflict that could hinder the fundamental reforms being proposed.

The Vice Ministry of Transportation is in the process of developing a new reform law for the public transportation system, with the aim of benefiting users and modernizing the service. However, businessmen are pushing to obtain the renewal of existing licenses for a period of 7 years, without the need for bidding, which could delay the implementation of the planned reforms.

The Vice Minister of Transportation, Emiliano Fernández, assured that the agreement reached includes the review of the coefficients that generate discrepancies, although this will be carried out after a study that will take 90 days. In addition, it was confirmed that there will be no changes in the coefficients or subsidy amounts for the sector.

The Government maintains that public transportation reform is crucial and that the details of the law are being finalized for presentation to the president and subsequent submission to Congress. It is expected that this reform will not only improve the service, but also introduce open competition in the sector, through tenders open to new actors.

Currently, the details of the law are being finalized for presentation to President Santiago Peña and the Minister of Public Works, Claudia Centurión, who will evaluate and consider the project before sending it to Congress. “The president has already requested that the last step be carried out in July,” said Fernández. He stressed that this reform is crucial for the transportation system and its users, as it will bring significant changes and palpable improvements. In addition, he pointed out that during the transition period to the new system, two models will coexist, until new sections are tendered.

The vice minister concluded by highlighting the effort and negotiations carried out to reach this agreement, emphasizing that lifting the strike was a priority, considering it unfair and unnecessary. He also highlighted that updates to transportation-related permits will be made within the framework of this reform process.

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