‘The Zero Tariff goes beyond mobility. It’s also a social issue, generating jobs and income’ | Estadão Mobility |

In 2019, the municipality was the first in the São Paulo metropolitan region to offer free transport. Since then, the system has grown from 36 thousand to more than 130 thousand users/month, requiring the expansion of the fleet and the number of lines. Read the full interview with the city’s mayor below.

Know more: Vargem Grande Paulista expands its fleet with electric buses

Why is Zero Tariff important for cities?

Before the pandemic, experts were already saying that the traditional concession system was destined to collapse within 10 years. I believe that, after her, this period was reduced by half. These contracts, of ten years or more, are very long, there is no way to predict what will happen and how much will enter the turnstile.

As these companies are always in the red, this bill does not close in most cities: city halls have to cover this difference, more than 70% of the operating cost. The ratchet, then, is a mere complement.

This fee comes with several additional costs — the company’s profit, the collector’s salary or the cost of the billing system, the administration to carry out this conference and so on. With the Zero Tariff, we have already reduced at least 20% of the operating cost of this fleet.

The value also weighs heavily — a lot — on the pockets of a significant portion of the population. Even more so for a transport system that is not efficient, with poor quality buses. And those who can afford it end up looking for alternative ways to get around. So, people stop using the public service, which still needs to be readjusted annually due to pressure from companies.

Why implement it in Vargem Grande Paulista?

In 2017, the operator at the time was unable to improve the fleet and, to subsidize this high operating cost, it would be necessary to increase the fare. Furthermore, I only wanted to operate the profitable lines. We broke away and hired an emergency service to transport people, avoiding price increases.

The following year, this goal became part of the budget to support the system. At the same time, we looked for several models in Brazil and abroad to find the one that best adapted to our reality and Tarifa Zero started in the city on November 5, 2019.

Despite a lot of fights and fans against it, we changed the model from concession to rental and not only did it work, we also renewed and doubled the fleet and expanded lines and opening hours. The new fleet — made up of 14 buses, 3 of which are electric, 1 articulated and the rest diesel — runs on 7 lines until 11pm.

And how was this done in practice?

Establishing priorities, allocating an average of 4% of the budget to zero tariffs. With its own resources, from 2019 onwards, the city council started to pay for the rental of these vehicles, paid per kilometer driven. The price already includes the cost of maintenance, driver and fuel.

Through a commission, we control and manage the lines, increasing or relocating them according to the number of passengers. Something unthinkable in the traditional contract system with concessionaires.

Where do these resources come from?

Instead of the employer providing the transport voucher, we first thought of a public transport tax based on the number of people with a formal contract (12 thousand), changed the tax code and created the Municipal Public Transport Fund as one of the revenues for this costing.

And, additionally, another 30% of traffic fines, in addition to parliamentary amendments that could go into this fund. With the arrival of the pandemic, the city council paid 100% this year, without charging fees to companies.

In the following years, it was placed in the budget as a government action and the Municipal Transport Fund, maintained with sources of revenue from advertising on buses, store rentals, determinations and parliamentary amendments that could involve some investment.

What were the gains for the city?

The Zero Tariff, for me, goes beyond mobility. It is also a social issue, generating jobs, income and dignity. The monthly ticket price has a major impact on the family budget, representing more than 20% of the salary, especially for those who earn less and do not receive transport vouchers.

In the case of companies, the voucher can also be 8% to 10% of the payroll. Here, the contracted company rented a warehouse, created 300 jobs with labor from here, and saved R$45,000 in transportation vouchers.

People move around more, spend in local businesses, including those in nearby cities, also generating resources for the municipality through taxes. People no longer miss scheduled appointments. If the money for the ticket was an impediment to taking care of your health, imagine if there was enough money for leisure in the center.

Before, we transported 36 thousand people/month, now 130 thousand and we should reach 150 thousand with the renewal and expansion of the fleet (7 to 14), lines (4 to 7) and opening hours, until 11 pm.

How can other cities implement the Zero Tariff?

Consider it a government action or program, prioritize this goal without taking it from other areas and understand that this cost is not an expense, but rather an investment in generating employment and income, also attracting other companies to operate in the municipality.

Furthermore, it is more sustainable because people leave their cars behind and can rely on quality public transport. In big cities it is complex, yes, but not impossible, based on partnerships and resources from the State and Federal governments, such as a transport SUS.

And, of course, with personalized studies tailored to the reality of each municipality. Many managers do not want zero tariffs because it is something that will be charged from now on, with several examples we already have, it requires studies, calculations and conflicts with many interests.

Read too: Domingão Zero Fare in São Paulo increased bus use by 33%

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Author: Daniela Saragiotto