Expert: Bold decisions needed for Latvia’s public transport sector amid funding shortfall
Intercity bus services face a deficit of approximately 37 million euros, and an expert urges the new transport minister to initiate reforms, including gradually transferring major routes to commercial operators.
Latvia’s public transport sector is grappling with significant funding gaps, prompting calls for urgent and decisive reforms. Transport expert Aldis Ķibēns highlights that intercity bus services currently lack substantial funds: around 9 million euros for existing contracts, 24 million for contract indexation, and 4 million for state-mandated discounts.
Newly appointed Transport Minister Rihards Kozlovskis has taken office just months before the Saeima elections. While a complete overhaul of the sector is impossible in such a short time, Ķibēns stresses that this period is ideal for acknowledging problems and laying the groundwork for reforms. The first step should be a clear announcement to the public that additional funding will not be available this year, forcing the industry to adapt to reality.
One proposed solution is the gradual transfer of major intercity routes—such as Riga–Liepaja, Valmiera, and Daugavpils—to commercial operators. The Riga–Liepaja route serves as an example: commercial carrier Lux Express operates successfully, yet the state continues to subsidize 16 daily trips at a cost of approximately 1.6 million euros annually. Passengers often prefer commercial services, indicating market viability.
Ķibēns also calls for a shift in the cooperation culture between the state and businesses, noting that communication too often stems from positions of power, leading to pre-litigation warnings or court cases. Both sides should recognize their shared goal: encouraging people to switch from private cars to public transport, using taxpayers’ money more efficiently.
