Chilean capital Santiago bus operator Gran Santiago is on the verge of having its concession terminated for failing to comply with contract obligations, an official from the transport and telecommunications ministry (MTT) told BNamericas.
Authorities have taken a number of steps to ensure the system will continue operating as normal if any of the contracts are terminated, the MTT official said.
MTT minister René Cortázar met with local press on September 26 to present the results of an evaluation of Transantiago bus operators.
Authorities "saw a significant change in all operators, in terms of the number of operating buses, as well as in bus regularity," said Cortázar, adding that Gran Santiago was the most poorly evaluated operator.
At the beginning of the month, the minister set September 30 as the deadline for operators to improve their services and meet the requirements established in the contracts.
The most significant improvement has been seen in the morning services. The number of buses operating in the peak morning hours was short by 700 vehicles but this amount has decreased by 537, said the minister.
The concession contracts stipulate that a total of 5,861 buses should be operating in Santiago. Currently, there are 5,696, the minister added.
If Gran Santiago's concession contract is terminated, the firm could declare bankruptcy and another operator could purchase it, the MTT official said, adding that this was only a rumor, and that whichever company took over the service, it would have to sign a contract with the ministry, meeting all the respective requirements.
Gran Santiago workers have threatened to protest in fear of losing their jobs if the firm's contract is rescinded. However, Cortázar said the ministry would make sure their labor rights are respected.
According to the MTT official that spoke exclusively with BNamericas, if the contract is rescinded, it is possible that a new concessionaire would hire Gran Santiago's drivers and employees. One of the difficulties when launching Transantiago was that drivers needed certified training, the official added.
In terms of services, the minister said authorities are aware that the system's performance still needs to be improved significantly, but that the aspects currently being evaluated are essential to set the basis for implementing long-term, sustainable improvements.
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