Metamorphosis: MCRT received a letter from a journalist but responded to a citizen

The Ministry of Digital Development and Transport (MCRT) responded to Turan Agency's information request from July 11, 2024, within two weeks. The agency had requested comments on an unpublished article titled "Why is the fare on outdated and new buses the same?" The article was published on July 12 without the ministry's input, as the response had not been received in time. This delay suggested the ministry needed an extended period to form its opinion, akin to addressing an agricultural issue rather than a transport-related query.

Moreover, the ministry's response was addressed to citizen Mehman Aliyev instead of journalist Mehman Aliyev, effectively shifting the legal framework from media-state interaction to that of citizen-state interaction. In the former case, a prompt response is expected, while in the latter, a 15-day timeframe is provided.

Here is the ministry's response:

"The Ministry of Digital Development and Transport of the Republic of Azerbaijan reviewed the request dated July 11, 2024, regarding the article on the Baku bus park.

Regarding the question about the same fare for old and new buses, we inform you that in international practice, bus fares are uniformly set regardless of the year of manufacture, model, and brand.

Currently, 27 companies are engaged in passenger transportation in Baku, and the public is regularly informed about indicators in this area.

For your information, in Baku, 425 million passengers are transported annually, and about 35.4 million monthly. One bus transports approximately 17-18 thousand passengers per month. Therefore, the number of passengers per bus and monthly income indicated in the article significantly differ from real indicators. Analysis shows that under normal conditions, the cost of transporting one passenger by one bus, including depreciation costs, driver salary, fuel, repair and maintenance, insurance, other expenses, and margin, is 1 AZN. Additionally, the cost of one modern bus (CNG or electric) ranges from 400 to 500 thousand AZN (including taxes and purchase price).

To improve population mobility and ensure the accessibility of public transport, a mobility transformation program has been implemented for over a year. To increase accessibility, improve service quality, and ensure more comfortable and faster transportation of passengers, a new network of routes and updated bus lanes has been developed.

We note that the work on updating and expanding the bus fleet is carried out regularly. Over the past year, more than 200 buses have been put into operation in Baku alone. Additionally, as a result of competitions on route lines in 2023 and 2024, 203 new buses have been attracted to urban transportation.

We want to inform you that one of the main directions of reforms in the transport sector is to ensure the sustainability of the country's transport system through the integration of modern, progressive, and environmentally friendly vehicles. To ensure the use of electric buses in public transport and update the bus fleet through local production, a working group of representatives from relevant bodies was created in accordance with the decree of the Cabinet of Ministers of Azerbaijan. The working group conducted extensive research among companies specializing in the production of electric buses, organized visits to manufacturing enterprises, and conducted a comparative analysis, based on which the company 'BYD' from the People's Republic of China was determined as the winner. According to the plan, 160 electric buses are to be introduced into operation in Baku by the November COP29 event in 2024. Thus, in the first stage, modern, comfortable, quiet, and environmentally friendly buses will be put into operation in the capital, and then in other cities.

Also, in accordance with the decree of the President of the Republic of Azerbaijan dated April 19, 2024, No. 3854, the Transport Coordination Council was created. The Council is a collegial body created to coordinate the activities of various types of transport, ensure population mobility, develop transport infrastructure, organize road traffic, safety, and regulation.

Since January 2022, within the framework of the 'Our Road to Karabakh' project, regular bus routes to the liberated cities of Agdam, Fizuli, and Shusha have been organized. Further organization of routes to other liberated regions is also planned. Additionally, for the first time in intercity transportation, new buses have been introduced on routes from Baku to Ganja, Mingachevir, Zagatala, Barda, and Tartar, and this process continues.

Over the past year, the modernization of the transport sector has seen significant progress in the implementation of cashless payments and mobile applications, such as the information system 'AYNA,' 'Azparking,' 'biletim.az,' and 'BakıKart.'

Overall, the work to improve the quality of services in public transport continues intensively, and significant innovations are expected in this area in the coming years."

The letter indicates that there are 2023 buses in Baku, most of which are outdated. Before the recent fare increase, one bus, with a fare of 0.40 AZN, generated 86,000 AZN in annual revenue. The ministry's letter does not specify the structure of expenses in monetary terms. We hope the ministry will disclose the cost structure and net profit to present a clearer picture of bus profitability and the justification for fare rates.

The letter emphasizes electric buses, which are few in the capital's bus fleet. Yes, they cost 450,000 AZN, but they do not run on diesel, and their fuel costs are significantly lower, which cannot justify fare increases.

It is hard to agree with the ministry's thesis that fares are set uniformly regardless of the bus's technical characteristics and condition. Gentlemen, it is one thing to ride an electric bus and quite another to ride an outdated 15-20-year-old bus. Imagine a bus bought 20 years ago for 22,000 AZN that has generated around 1 million AZN in revenue over that period, considering a fare of 0.30 AZN. Again, we do not know the actual earnings of such buses, as they were not equipped with cashless payment terminals, and there is no information on expenses.

We hope the Ministry of Digital Development and Transport will disclose information on the condition of the bus fleet (structure of the bus fleet by years), income, expense structure in monetary terms, and net profit. These data will help create a clearer picture of the cost of bus transportation.