Ecuador’s joint fund system is joined by 80% of public transport operators

A novel system in the Ecuadorian capital of Quito requiring public transport operators to share a payment fund has been joined by 80% of operators. The new system aims to reduce competition on the roads, as, prior to adoption of the payment fund approach earlier this year, different operators sought to transport as many passengers as possible, due to their income being based on the money earned from passengers on their routes each day. Under the payment fund operation, money earned enters a joint fund w
December 11, 2013 Read time: 2 mins
RSSA novel system in the Ecuadorian capital of Quito requiring public transport operators to share a payment fund has been joined by 80% of operators. The new system aims to reduce competition on the roads, as, prior to adoption of the payment fund approach earlier this year, different operators sought to transport as many passengers as possible, due to their income being based on the money earned from passengers on their routes each day.

Under the payment fund operation, money earned enters a joint fund which is then distributed proportionally between all participating operators, based on the working fleet, demand, efficiency, timetables and kilometres covered. Operators have until 30 December 2013 to join the payment fund scheme. If they fail to do so, they will not receive the necessary operators’ accreditation.

The payment fund scheme is already reported to have resulted in better working conditions, with a calmer atmosphere and regulation of timetables. Paquisha, Quitumbe and Catar are among the operators already taking part in the scheme.

Conventional public transport companies will not have to implement the second phase of the scheme, which will require Metrobus-Q operators to have an automatic payment system with transport card, until 2016.
Highway & Network Management

Related Content

  • Saudi Arabian capital Riyadh benefiting from major transport investment
    September 9, 2013
    Saudi Arabia is undergoing a series of upgrades to its transport network in a bid to improve Traffic flow rates and boost safety - Mike Woof reports. The massive growth in the use of motor transport worldwide since the start of the 20th century has transformed every country on the planet. But perhaps no country has changed more dramatically than Saudi Arabia, the world’s leading oil producer. At the start of the 20th century Saudi Arabia’s population was small and the country had few industries while it is
    Read More
  • On track for excellence in asphalt plants
    May 30, 2013
    While one leading asphalt plant company has played a key role in the creation of the new Circuit of the Americas F1 racetrack, others have been releasing new plants and plant-related technology onto the market, some of which has been exhibited at major world industry shows. Guy Woodford reports. Astec played an important role in the new Circuit of the Americas Formula 1 racetrack in Austin, Texas. The asphalt base, binder, and surface courses for the 5.47km asphalt road course, which staged its first F1 rac
    Read More
  • Road transport key to Africa's trade links
    February 17, 2012
    Road transport is the key to improving Africa's links within its own territory, and further afield as Patrick Smith reports. Development of road transportation is the key to the future of the African economy, and countries on the continent are making great strides. According to a report by a transport infrastructure expert at the New Partnership for Africa's Development (NEPAD), within the next 15 years the value of trade in Africa could reach US$250 billion if a $32 billion investment is made to integrate
    Read More
  • Global investment in ITS will total $13.1 billion between now and 2017
    April 25, 2012
    According to a new report from Pike Research, ITS will see increased investment in coming years even as government budgets are tightening, because smart transport is seen as a way to maximise existing transportation systems without making major new capital investments.
    Read More

Highlighted Content