Tartu considering subsidizing morning bus connections to Riga
Tartu is considering subsidizing bus services to and from the city after passenger numbers have fallen due to the opening of new train connections.
The Estonian government is providing €1 million a year in subsidies for the new Tartu–Riga direct train line, which made its first departure on Monday. However, occupancy rates on bus lines taking the same route but operating under market conditions have dropped.
Last fall, the morning Lux Express bus from Tartu to Riga disappeared from the schedule. During the low tourism season, the bus line is not as profitable as the train.
"According to our calculations, it needs around €4,000 for nine months of the year. The number of our passengers has decreased by around 30 percent, and we would in fact like to operate routes that do not depend on subsidies," said Ingmar Roos, CEO of Lux Express.
Lux Express wants Latvia to grant it the right to serve domestic passengers. That would mean, similar to the newly opened train line, Lux Express buses could also stop at intermediate stops on the way from Tartu to Riga.
"In that case, we believe we could restore the morning departure (from Tartu) without any state subsidies. If the state has used taxpayers' money to transport passengers on routes within Latvia, then I don't see why it can't do the same without demanding taxpayers' money for these routes," said Roos.
Bus company Abuss OÜ is also interested in operating on the Tartu–Riga route.
"Today, we believe that would not be profitable without subsidies during the low season," said Abuss OÜ owner Martin Roots. "Currently, we are only talking about the morning departure time. We have done our calculations and found that during the low season, it would only bring in €3,000 to €3,500 per month."
The City of Tartu considers the morning connection important for those traveling to Riga as tourists and also to use the Riga Airport. The city is therefore considering subsidizing the route, initially until the end of this year.
"Who are we doing this route for? Are we doing it for air travelers who want to catch early morning departures from Riga Airport, or are we talking about people who want to visit, arrive in Riga at a reasonable time in the morning, and then return at a reasonable time in the evening? That is why we are talking about a three-hour period in the morning, from 8 a.m. to 11 a.m., and in the evening, it would be somewhere between 4 p.m. and 7 p.m.," said Tartu City Secretary Jüri Mölder.
The amount expected in subsidies from the city would be somewhere between €20,000 to €30,000 a year.
---
Editor: Michael Cole, Valner Väino, Helen Wright
Source: "Aktuaalne kaamera"
