Government to take over Arriva operations today

Transport Malta will be officially handed the public transport operations in Malta today, slowly bringing an end to Arriva's disastrous experience in Malta.

Spurred on by the previous PN government, the company chosen to take over the national public transport system, Arriva Malta, was constantly in the ire of commuters with complaints of inefficiency and unsatisfactory routes often being the stumbling block between the operators and the Maltese commuters.

While constantly bemoaning the government's "inherited situation", two weeks ago, Transport Minister Joe Mizzi announced the transition of the public transport system.

The transition will now see the government and Arriva sign a share transfer agreement in the coming days. The move will see the government purchase Arriva's shares and assets, including its vehicles.

Quizzed on how much the transition will cost the taxpayer, the minister kept mum on the details and said he was not in a position to commit to figures until details were signed but it is reported that the €50 million of Arriva's debt will be borne by the government.

The transfer share agreement is expected to be signed in the coming days.

With losses ranging between €30 and €35 million during its two years operations, the Minister had said that it was a "lose-lose situation".

"Our backs were to the wall: either the company gets liquidated and we end up with no public transport operator, or we buy the public transport system. Months of negotiations proved fruitless." Mizzi said.

Consequently, the minister said, the best option was for the government to take over the public transport system.

Arriva management will remain in Malta for a few months to assist Transport Malta with the transition. Sources said that management from TM taking part in the transition would act independently of the transport authority.

The transition will not affect any routes until the near future.

The minister said that an expression of interest for both foreign and local companies will be issued in the next few days but he gave no indication as to till when this expression of interest will be extended to.

Addressing media recently, the minister said Arriva did not have enough money to invest in the route but instead insisted on increasing its complement of busses on the roads. This proved to be the Achilles heel during negotiations between the two parties as the government insisted on increasing the coverage of routes.

"Arriva did not have enough money to keep investing in the route. The government was faced with subsiding a service that was not up to scratch, whilst the company itself was losing money," Mizzi stressed.

Meanwhile, the minister has not ruled out subsidies for the new public transport operator but has failed to put a price tag on the subsidies.