Urban transport companies have to guarantee safe, efficient and high-quality transport services by means of a regulated competition. They also have to ensure the transparency and the well-functioning of public services, taking into account social, environment and development factors. Transforming transport operators into commercial companies facilitates the implementation of legislation, increases the company’s independence, changes the capital statute and offers the opportunity of participating to tenders without restrictions such being the case of operators. One of the most important problems solved by this transformation is that of accessing European funds: the company will be able to directly access EU funds for the implementation of development projects and the municipality dependence is eliminated.
To provide a public transport service which generates economic growth determining the development of this market segment, transport companies have to change their statute of operators into joint-stock companies. On the long-term this means the development of the company with the optimisation of services, acquisition of new vehicles and increase of public transport market share. The implementation of projects requires significant financing and the statute of independent operator of urban transport companies does not permit the accession of direct European funds. This is a major problem. Also, the EU encourages the transformation of operators into joint-stock companies as the process brings benefit to the development of the public transport market and permits the facilitation of implementing the legislation.
“Transforming an operator into a joint-stock company brings significant benefits and makes a great difference in terms of legislation. First of all, this transformation brings something new into the company’s fund: we can no longer talk about patrimony, but of social capital. An indirect benefit results from the fact that the company is no longer seen as property of the municipality, but the municipality becomes owner. When an operator becomes a joint-stock company, this will be easier to manage and the legislation becomes easier to implement, while in the case of the operators, there are restrictions. For example, as operator, one cannot participate in any tender, while a joint-stock company is free to attend any tender”, explains Istvan Csuzi, General Manager of Oradea Transport Local SA, the first operator in Romania which became a joint-stock company in 2010.
In the case of fund allocation, this transformation is also beneficial for operators. “The joint-stock company implies a higher independence and in terms of investments, we can talk about the direct accession of European funds”, added Istvan Csuzi.
Bucharest Surface Transport Operator (RATB) would also be transformed into a joint-stock company, officials from within the company said. This will help the company gain independence and access EU funds. “To meet this objective, we have to organize a multidisciplinary audit of RATB’s activity in all its dimensions in order to set clear and coherent programmes and strategies for the reorganization and efficiency of the services”, declared the General Mayor of Bucharest, Sorin Oprescu.
The operator statute does not permit the direct access to European funds, which is a major problem because vehicle acquisition costs could be 60% covered by EU funds.
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