Public transport sector needs bold decisions, expert says

The intercity bus transportation sector in Latvia is in a financial crisis requiring immediate and bold decisions, argues Aldis Ķibēns, a board member of Lux Express, in an opinion piece for the magazine "Ir".

According to his calculations, there is a shortfall of 9 million euros for current contracts, 24 million euros for contract indexation, and 4 million euros for compensating state-mandated discounts. In this context, he calls on the new Minister of Transport, Rihards Kozlovskis, to honestly admit that no additional funding will be available this year and to start working on real solutions.

As a key example of inefficient use of public funds, Ķibēns cites the Riga–Liepāja route. The state spends about 1.6 million euros annually subsidizing 16 daily trips on this route. However, commercial operator Lux Express already provides high-quality services with growing demand. Many passengers prefer to wait for the next commercial coach rather than use the subsidized one, indicating a viable market.

The author emphasizes that the state's role is to subsidize mobility where the market cannot function, such as remote areas, not on commercially viable routes. Gradually transferring large routes to commercial operators would free up funds to be redirected to regional routes, improving public transport accessibility across Latvia.

Ķibēns also calls for a change in the culture of cooperation between the state and transport operators, noting that current communication often ends up in litigation. Both sides must recognize that their common goal is to move more people from private cars to public transport while using taxpayer money efficiently.

Although it is impossible to fully restructure the sector in the three months left before the elections, Ķibēns stresses that the minister has the opportunity to become an agent of change by making bold decisions and laying the groundwork for reforms that the next government can implement.