Estonian coach operator Lux Express has successfully influenced Latvia to change its public transportation principles, allowing intercity bus services to be operated on a commercial basis, similar to the system in Estonia.
State-subsidized public transport in Latvia has led to absurd situations. For instance, long-distance buses may have toilets, but the operators do not open them because the contract does not stipulate such services. Consequently, they make 10-minute stops at bus stations along the route.
As an international service provider in Latvia, certain Lux Express executives have long worked to open intercity commercial routes for their southern neighbors. They have aimed to prove that market liberalization would be cheaper for the state, more convenient for passengers and would spur competition among the previously monopolistic bus companies.
“No one without a state contract could enter the market. But last year, the ice began to thaw a bit. The reason was that, just like in Estonia, maintaining public transport in Latvia had become very expensive and unsustainable,” explained Ingmar Roos, a member of the Lux Express board.
The Estonian company now serves passengers on Latvia’s longest bus route, from Liepaja to Daugavpils via Riga. After just over a month of operating in the Latvian market, significant changes have occurred in Latvian passenger transport. Multiple companies’ buses now depart from Riga to Liepaja simultaneously, and companies accustomed to subsidized services have also started opening commercial routes.
“For many years, both the Ministry of Transport and the Road Transport Administration have been addressing these issues. Legislation had to be changed to allow such services. For me, it is important that both state-subsidized and commercial bus lines meet the same passenger transport standards,” said Latvian Minister of Transport Kaspars Briskens.
The connection between Riga and Liepaja can be compared to traveling between Tallinn and Tartu, except there are far fewer bus lines, and the train runs only once a day.
“Latvian carriers are accustomed to fighting for most of their business to be built on state subsidies. Passengers’ desires or comfort have taken a backseat,” said Aldis Kibens, head of Lux Express Latvia.
Riga has long had problems with connections between the airport and the city center. Lux Express has now opened this minibus line as well. For Estonians traveling via Riga Airport, this is like an extension of a train or bus line, as not all international buses to Riga stop at the airport. (ERR)