Public transport system tendered out by year end

Page created: Tuesday, 25 February 2014 13:00 GMT

Public Finances  Total Debt

Tenders for the public transport systems of Lisbon and Porto shall be launched in the second quarter of this year with the process due for completion by year end, Sérgio Monteiro, State Secretary for Transport, told journalists late Monday.

Monteiro specifically identified the Lisbon bus company Carris, the city’s underground, the Transtejo ferry service, and the Porto bus and underground companies as up for grabs.
He was speaking after a meeting presenting the exceptional regime coming into effect for urban rehabilitation projects to interested parties from the property and real estate sector as well as banking and financial interests and was upbeat about prospects for the companies.

“In 2012, when holidays subsidies were cut, we had an EBITDA result of just over €4 million. Last year, with the repositioning of these two months of holiday pay, which represented an additional charge to the companies of €47 million, we still managed to offset that extra cost and gain a positive EBITDA of over €3 million,” said the state secretary before putting the annual savings based on the financial position of these firms in 2010 as at over €250 million.

Monteiro attributed the drop in passenger numbers in 2013 as due to a range of factors including strike action, fraud and the prevailing economic conditions before calling for “a year of dialogue” in order to ensure an accurate decision over whether or not it made sense to tender out the companies could be made.