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Economy The Government says that the minimum train ticket should cost $2,000 and anticipates a new increase in the group in AMBA - Infobae

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The Government says that the minimum train ticket should cost $2,000 and anticipates a new increase in the group in AMBA - Infobae​


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The Secretary of Transportation, Franco Mogetta, maintained that they inherited a debt of USD 100 million in the railway system. The next increases and how much the strike will cost Aerolíneas Argentinas

By Agustin Maza

May 06, 2024

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From today the increases in the train ticket apply. (AP Photo/Natacha Pisarenko)

After making official the increase that has been in force since this Monday , the Government stated that the minimum train ticket in the Buenos Aires Metropolitan Area (AMBA) should be $2,000 to cover the costs of the system, that is, without any subsidy . In parallel, a new increase for bus tickets in Buenos Aires and the Federal Capital is being studied , although without a defined date at the moment.


The rate updates were stopped by the Ministry of Economy due to the decision to prioritize lowering inflation and avoiding a greater impact on pockets, by relaxing the strong fiscal adjustment with which Javier Milei 's administration began .


The information arises from the statements of the Secretary of Transportation, Franco Mogetta , in an interview given to Radio Rivadavia . “The rate has to take more and more prominence in covering costs. Technically, at today's levels, we would have to talk about a ticket of $2,000 to cover the entire costs. But we cannot transfer this inefficiency to the user, a lot of income has been lost due to poorly charged rents and due to policies that led to 30% evasion of ticket payments,” explained the Ministry of Economy official.


This morning Transportation published Resolution 2/2024 in the Official Gazette in which it approved an increase in the Public Metropolitan Railway Passenger Transport Services of National Jurisdiction. These are the lines Mitre, Sarmiento, Roca, San Martín, Belgrano Sur, Belgrano Norte, General Urquiza and the Tren de La Costa.

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Franco Mogetta, Secretary of Transportation of the Nation.

The ticket will have a differential price depending on the section traveled, the payment method and the SUBE registration status. Those who have a registered transportation card will go from paying 130 pesos to 200 pesos for Section 1, from 169 pesos to 260 pesos for Section 2 and from 208 pesos to 320 pesos, for routes of more than 24 km. Therefore, the increase is 53.85 percent.


If you have not registered it, the fee “twice corresponding to each section” will be paid. That is, the amounts will be 400 pesos, 520 pesos and 640 pesos, depending on the number of kilometers.

Beneficiaries of the social rate , on the other hand, will have a 55% discount with respect to the rate table applicable to users who pay with nominalized SUBE: 90 pesos (Section 1), 117 pesos (Section 2) and 144 pesos (Section 3) . In cash the ticket costs 640 pesos from today. While the fines for evasion will be ten times the minimum rate with SUBE Nominalized: 2,000 pesos.

Regarding AMBA bus tickets, Mogetta anticipated: “Possibly in the coming months we will have to advance an increase, we are studying it, we still do not have a precise date.”


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The Government is studying a new increase in the AMBA bus fare. (Wikipedia)
Currently, the minimum fare is $270 in the City and Greater Buenos Aires, since the Government decided not to apply the inflation update mechanism that has been in force since February. The transfer of this variation would be 51.6% accumulated until March, so the ticket could jump to $409.32, although the defined increase could be smaller.

In parallel, the companies maintain joint negotiations with the UTA after the union's strike was deactivated two weeks ago due to the salary dissolution. The Government promised to grant greater income to operators to cover the arrears of their rates, although it has not yet made it official. The chambers warn that, if not resolved, the service will have more and more reductions in its frequencies.

The Argentine Association of Automotive Transport Entrepreneurs (AAETA) estimates that the “real cost” of the minimum AMBA bus ticket, without subsidy, is 1,198 pesos. Of that total, $624 is covered between the ticket and what the State contributes, while the $524 is borne by the companies.

Debts of the previous government​

During the interview, Mogetta also assured that the service stoppage announced for Thursday will cost Aerolíneas Argentinas about USD 2 million. “The unions have already accustomed us to this type of measures, but we are convinced of the direction we are taking and we are not going to change that,” he assured.

“They have to understand that they are harming those they claim to defend, that is, the companies that provide services and the workers. A service stoppage is going to cost 2 million dollars to the company Aerolíneas Argentinas, the flag airline. If that is your way of defending national companies, we ask you to please stop defending it in that way because it is sinking it more and more, with a strike that has no specific objective,” he noted.


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Mogetta pointed out against the interruption of services at Aerolíneas Argentinas.
The Secretary of Transportation stated that Milei's management assumed an inheritance of debts with suppliers of almost USD 100 million in the railway system. “We receive companies with very little management, with overcrowding of personnel. Between 2019 and 2022, SOFSE (Trenes Argentinos) increased costs by 25 percent but reduced income by 68 percent.”

“Railway spare parts have not been purchased for many years and there are workshops that have not carried out the necessary maintenance and do not have the capacity to carry out vital maintenance. The update of the railway rate aims to correct these imbalances,” Mogetta explained.

“We received a system in very poor condition. The trains have not had the necessary comprehensive maintenance for more than 4 years and no rolling stock purchases have been made for more than 10 years. What they left us in terms of infrastructure is also very serious, which is why we decided to suspend long-distance services in the interior,” concluded the Secretary of Transportation.
 
I doubt Argentina can ever charge what it truly costs for a ride. Already 30% or more evade paying by avoiding paying at all.
 
There are so many things that need to be fixed... I wouldn't want to be a government official now. A broken country that needs to be fixed ASAP, but how do they fix it without causing too much pain? If the government could find a way to delay new fare increases until the spring, I don't know, maybe by then it would be less painful?
 
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