Local private bus and coach operators are considering joining forces and bidding for the public transport service tender, which is up for grabs following Arriva’s decision to pull out of its 10-year contract, The Sunday Times of Malta has learnt.
Earlier this month the government agreed to take over the service, which is now being run by Malta Public Transport Services, until a new operator is in place.
Though Transport Minister Joe Mizzi had said that the government would act quickly and issue a call for interest by the end of this week, this has not materialised.
No decision has been taken, as we are just meeting to explore different options
A ministry spokeswoman told this newspaper that the government wanted “to consult more on the mechanics to get it absolutely right” before publishing the expression of interest.
Last month, The Sunday Times of Malta had reported that Paramount Coaches would be interested in taking over the bus service, even though Arriva had not yet announced its intention to leave.
Sources said the majority of coach operators have been holding preliminary meetings to explore the possibility of setting up a consortium and bidding for the tender.
This was confirmed by a spokesman of Ċanċu Coaches who said that the vast majority of companies were keen to learn about the government’s offer.
“No decision has been taken, as we are just meeting to explore different options of how to go about and present a joint bid,” he said.
In all probability the final decision on which operator will be entrusted to run the bus service will hinge on the level of annual government subsidy.
When Arriva took over the service in July 2011, Transport Minister Austin Gatt had trumpeted the agreement as a triumph, saying that the government would save millions in annual subsidies.
The government had said that Arriva would receive €6 million a year, down from the €10 million which the previous operator received in its final year.
However, by the end of last year the annual subsidy had increased to about €8.5 million as Arriva had to be compensated for the additional buses and extra routes which were introduced in due course.
The annual subsidy is set to rise by a further €6 million, following the scrapping of the two-tier pricing structure through which foreigners used to be charged more than Maltese citizens, and the introduction of new routes.
Sources said that other factors that might inflate costs could be better conditions of work for bus drivers, as the current package was not attracting enough candidates for the job.
As a result, prospective bidders will be expecting a minimum of €15 million in annual subsidies, which could be partly offset by increasing bus fares. On its part, the government said any revision in prices would be discussed with the new operator, and that no increase was planned during the transitional period.
In a statement, the Nationalist Party yesterday called for more transparency from the government, asking for the publication of the agreement through which Arriva agreed to end its two-and-a-half year stint.
PN transport spokesman Toni Bezzina said that taxpayers had every right to know how taxpayers’ money was being spent.
The PN said that the government was expected to lead by example and offer an efficient service while ensuring there was no increase in fares and no job losses.
Meanwhile, a bus in the vicinity of Rabat yesterday had to be evacuated as a precautionary measure after its exhaust pipe overheated, giving off more smoke than usual.