Time has gone by since President Juan Carlos Varela first promised a solution to the public transport crisis affecting the capital city, but the acquisition of private operator Mi Bus has not proven to be the panacea the Panamanian leader had sold the electorate.
The government's purchase of 100% of the shares in Transporte Masivo de Panama S.A. (TMPSA) via state controlled company Metro de Panama S.A. was strongly criticized as not in the public interest.
The administration invested $260m to acquire 1,200 buses that had been in operations for five years already, additionally taking on all the debt and liabilities of Mi Bus, which added up to some $195m.
However, critics pointed out that the existing fleet was incomplete and more transport units were going to be needed in order to satisfy demand and improve the frequency of service. Bus stops remain to this day severely overcrowded at peak times and many of the bus units acquired were in serious need of maintenance.
Experts agree that the failure of the public transport system has provided an opportunity for unlicensed private businesses to take home a handsome profit, at the expense of commuters.
Former director of the Authority for Road Transit and Transport (ATTT), Carlos Harris, accused Transporte Masivo de Panama S.A. of failing to produce short term and long-term solutions to the current transport problems. “Poor planning and implementation of the public transport system has opened a door to a flourishing unlicensed transport business", he declared.
Mr. Harris singled out the poor frequency of service as the system’s Achilles’ heel, arguing that it will take at least a couple of years for the current operator to address the problems it currently faces.
“Regrettably this is the reality that users have to come to terms with. The government has not been straightforward about the actual sacrifice that is needed", he argued.
For his part, the Secretary general of the union of public transport drivers (Sicotrac), Tomasito Lopez, declared that the country 'has inherited the problem created by those that were previously at the helm of Mi Bus', adding that " they were unable to develop a first-world public transport system that was implemented in other countries, such as in Chile or Colombia, but that took 10 to 15 years to finesse'.
Mr. Lopez also argued for the system to work in Panama "road infrastructure has to improve first'.
He urged to transport users to show patience and not to expect a first- world public transport system overnight.
What is true is that in the past few years pirate transport providers have flourished in the capital district as a result of the failing service provided by the public metrobus system.
According to the president of the National Chamber for Transport, Dionisio Ortega, the current problems will persist as long as a preferential lane system for public buses is not properly implemented. Mr. Ortega also lamented that, five years on, "there are fewer buses in operation, so it' hardly surprising that things are as bad as they are". He urged the government to seek a solution to the current problem as a matter of urgency, if it wishes to put an end to the misery faced by daily commuters.
In an effort to prop up the current system, the government has announced the purchase of a new fleet of buses for Mi Bus. Carlos Sanchez, general manager at Mi Bus, declared that the specification of the new buses, as well options for their financing, were under discussion with US operator First Transit.
However, some details have already become public, leading to multiple criticisms that this is yet another poor deal for the state. The 400 new buses would cost $45m and enter operation in 2017: critics argued that the government should instead have exercised warranties applicable to existing damaged units already in its possession. The new vehicles are likely to be smaller than the current buses.
President Juan Carlos Varela has announced that 700 new bus drivers will be hired and require to obtain a category J driving license. At present, some 1300 unlicensed buses are believed to be operating on the streets of Panama and San Miguelito.
68% of transport users do not expect an improvement in the public transport system
According to the latest polls published by Dichter & Neira, public transport is ranked as one of the primary concerns amongst ordinary Panamanians. The latest poll by Dichter & Neira pointed out the administration's failure to turn the situation around: a full 61% of respondents declared they had no expectation the system would improve, compared to only 22% who held a more positive view. In the province of Panama, the figures are 68% and 28%, respectively.
Last year, the Panamanian State acquired 100% of the shares of public transport operator Transporte Masivo de Panama S.A. (Mi Bus). In parallel, it hired U.S. transport operator First Transit to take charge of the operations. The government’s move received widespread criticism.
One particularly controversial aspect of the deal was the very generous terms offered to the selling shareholders of Mi Bus, whose liabilities the state took on.
