Chile
Press Release

Contracts awarded to operate Santiago bus routes

Bnamericas
Contracts awarded to operate Santiago bus routes

This is a machine translation of the original statement from the transport and telecommunications ministry (MTT) issued in Spanish.  

A key stage to achieve the consolidation of the new metropolitan public transport model was reached on Monday, when the comptroller general of the republic authorized the award of the concessions for the use of routes, which will allow the addition of new services and incorporation of 1,637 new standard Red buses, of which 991 will be electric.

During this bidding process, which began in December 2020, 16 offers were received that included the participation of three new international companies and two of the current operators (Redbus and STP). Last October, after assessing the proposals, the MTT prepared the award act which was sent to the comptroller general of the republic to examine, which it has now completed.

The company Metropol, a major bus operator in Buenos Aires, will enter the system as a new player with the award of two units (U1 and U2) and operating 49 services. Meanwhile, Redbus was awarded two units (U4 and U6), with 50 services. Meanwhile, STP was awarded the operation of units U3 and U5, with 54 services.

The acting transport and telecommunications minister, José Luis Domínguez, highlighted this new step that fulfills one of the commitments assumed by the ministry during the government of President Sebastián Piñera. “Through this tender, a total of 1,637 new high-standard buses will enter the system, of which 991 are electric. With this, Santiago will have a fleet of 1,770 electric buses, which allows it to consolidate itself as the city with the largest electric bus fleet in Latin America, and one of the largest in the world. This meets the commitment of the ministry of transport and telecommunications to advance in terms of electromobility,” said the official.

The new public transport design for Santiago includes 153 new services, which represents 29% of the total system.

One of the main attributes of this tender, which includes new requirements and more tools to guarantee better services, is the reduction in the size of the service units, which, on average, will have 400 buses. This will reduce the risks of interruption of transport services if a company has operational problems.

It also includes shorter-term operating contracts, which will range between five and seven years (depending on the percentage of electric buses in the fleet), which can be extended for up to five more years if certain quality standards established in the contract are met.

The acting director of metropolitan public transport, Carlos Orellana, said another benefit of this process is that it will renew the face of public transport, consolidating a sustainable fleet, friendly to the city and the environment, at a lower cost for the system. “With this tender, we will promote electromobility, and for those concessionaires whose contracts include more than 50% of the buses in the fleet having electric technology, the term will be seven years and may be extended for up to seven additional years, as long as they comply with the established quality parameters,” he said.

Regarding the characteristics of the new vehicles, a new standard has been defined for the fleet that improves users' travel experience and the conditions for drivers. The buses will have free Wi-Fi, USB ports to charge cell phones en route, air conditioning, and improved interior and exterior designs. Specific safety conditions are established for drivers, such as the requirement for a safety cabin and padded seats, internal and external security cameras on board the bus, object proximity detection systems to avoid being collision, internal screens to display journey information and driving quality systems.

As regards the next steps, acting minister Domínguez said that the contract for the operation of routes will be signed with each of the companies and then the bus supply orders will be issued for their manufacture, which will be expected to enter the system within nine months.

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Infrastructure (Chile)

Get critical information about thousands of Infrastructure projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: Infrastructure (Chile)

Get critical information about thousands of Infrastructure companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Geoatacama Consultores Ltda.  (Geoatacama)
  • The description contained in this profile was extracted directly from an official source and has not been edited or modified by BNamericas researchers, but may have been machine...
  • Company: Eaton Industries Chile SpA  (Eaton Chile)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...