The Hanoi Department of Transport has just proposed to the City People's Committee to stop operating 6 bus routes with high subsidy rates of over 95%, starting from April 1. These bus routes include routes 10, 14, 18, 44, 45, 145.
With the above proposed plan, the Department of Transport calculates that it will reduce about 11.45 million km of travel per year, corresponding to cost savings of about 212.23 billion VND per year.
In order to not greatly affect passenger travel, from now until April 2024, the Department of Transport will adjust bus routes with similar routes to the discontinued routes.
Hanoi plans to stop 6 bus routes from April 1. (Illustration photo)
According to statistics from the Department of Transport, the city's average subsidy for public bus transport in the 2020-2022 period is 857.43 billion VND higher than in the 2015-2019 period. The highest subsidy in 2022 is nearly 3,000 billion VND, 670 billion VND higher than the average in the 2020-2022 period.
Meanwhile, in the 2020-2022 period, revenue from public passenger transport by bus decreased, partly due to the impact of the COVID-19 pandemic, and partly due to a number of preferential and free policies for people applied according to Resolution 07/2019 of the City People's Council.
In addition, the construction of some key traffic projects has forced buses to adjust their routes, reducing passenger volume, increasing the number of kilometers traveled, increasing costs, reducing revenue, leading to increased subsidies...
Through review, Hanoi Department of Transport temporarily identified 71/132 bus routes that need to be considered for adjustment.
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