Rotterdam public transport company RET faces serious financial crisis

Rotterdam public transport company RET’s financial situation has deteriorated sharply in recent years, and the company fears a major transport shortage and serious funding problems over the next five years. Behind the scenes, the City of Rotterdam and the Metropolitan MRDH are vehemently debating how to solve these problems and who will pay for them. advertisement report.

RET is still struggling with fewer passengers than it was pre-coronavirus. The number of travelers, and therefore income, is now around 90 percent of pre-pandemic levels. And the company expected significant growth. Traveler numbers are now 18% lower than expected in the forecast.

And RET’s financial pact with MRDH, the metropolitan association of 23 municipalities in the Rotterdam-Hague region, is based on projections rather than actual figures. So while the company receives less grants each year from his MRDH, it needs more help.

Rising energy costs will cost RET an additional €40 million this year against a budget of €500 million. and likewise, Amsterdam equivalent GVBRotterdam’s public transport company has an aging workforce and high absenteeism.

RET’s two shareholders, the city of Rotterdam and MRDH, have been discussing the situation behind the scenes for months, AD said, but have yet to come to an agreement on a solution.

One proposal is a large financial injection from Rotterdam, but the city is concerned that this will not be a structural solution to the RET problem. Another option is to raise fares further, but if that happens, many people will not be able to use public transportation, and the number of travelers will decrease, which may further reduce RET income.

The Rotterdam city council is holding a closed and confidential meeting on Wednesday night about the situation, according to AD. Officials declined to comment for this paper. Rotterdam public transport company RET faces serious financial crisis

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