Erstellt am 15.08.2009 - 03:59

ANALYSIS: Montevideo's not-so-smart card system - Uruguay

Published: Friday, August 14, 2009 13:24 (GMT-0400)More news from Uruguay

By Eva Medalla / Business News Americas



Uruguay's public works and transport ministry (MTOP) and capital Montevideo's municipal authorities (IMM) are working to improve the smart card system that was installed on the city's mass transport network, but the fact that the cards will continue to require fare collectors on every bus makes the investment questionable.

"Transport workers expressed their apprehension about the impact the system would have on jobs as far back as 1998 when authorities first started discussing the system," José Casteriana, from the national union of transport workers (Unott), told BNamericas.

Finally, the union, bus operators and government authorities agreed to implement a mixed system whereby each bus would have a person to handle the cards, Casteriana added.

Installing the electronic fare collection system cost some US$7mn, of which 70% was covered by operators and 30% by IMM. But what is the point of having an electronic system if it is not fully automatic? Moreover, operating costs will push the investment much higher than US$7mn.

This year a total of 300,000 smart cards were handed out free of charge to citizens, mainly to the elderly and inhabitants of low-income neighborhoods, but most of them are not being used.

Since the smart card system was implemented, the fare collector takes the passenger's money and pushes one of two buttons for a one or two-hour ride. For the first, the collector hands back a ticket. In the second case, the collector charges the card but also hands back a ticket, which the user must later show when taking another bus within the two-hour period.

Authorities say the smart card is part of an integrated system which was designed to control whether a passenger paid for a one-hour or a two-hour fare. However, when passengers change buses they have to show their tickets so the time of purchase can be checked. Their cards are also checked to make sure they did not take someone else's ticket.

In another twist to the tale, workers are now pressuring authorities not to hire new companies to sell and put credit on cards, arguing this would increase operating costs even more.

In the meantime, citizens find the new system bizarre, to say the least, and are questioning why fare collectors continue to work on the buses.

THE COSTS

Montevideo's bus fleet is comprised of 1,460 vehicles, of which 42% are operated by a driver-fare collector and the rest by both a driver and a fare collector.

The activity on each bus is divided into two shifts, meaning that 42% of the vehicles employ two workers each, while the rest employ four workers each.

Fare collectors earn an average of 12,000 pesos/m (US$516), while drivers earn 14,000 pesos/m.

Currently, a one-hour ticket costs 15 pesos, while the two-hour trip costs 20 pesos.

SMART INVESTMENT?

While it is true that we live in a time when maintaining and creating jobs is a priority for most governments, there must be a limit to the concessions authorities are willing to make.

In this case, both the public and private sectors should have first discussed where to draw the line. After all, was it worth spending millions of dollars to implement a system that will make the transport network in one of South America's smallest capital cities seem modern? Or should the money have been spent to cover real needs?

Montevideo's integrated public transport system is scheduled to be fully operative by 2015. A total of US$160mn - financed by IDB - will be invested in the system, of which US$120mn will cover road infrastructure improvements.

Complementary works to integrate some of the current bus routes are being defined in conjunction with the five operators - Cuctsa, Copsa, Codet, Raincoop and Solfy.


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