Cetrapam, the Paraguayan association representing about 75% of the companies operating public passenger transport in Asunción and the surrounding Central Department,, has announced a 72-hour bus strike in Paraguay. The strike follows what the union describes as the government’s misfiring to honour agreements made in June 2024.
The strike is scheduled to begin on 21 July and will affect nearly three-quarters of public transport services in Paraguay’s metropolitan area. César Ruiz Díaz, president of the Centre of Metropolitan Area Public Transport Entrepreneurs (Cetrapam), confirmed that an extraordinary assembly voted unanimously for the strike action.
Transport operators demand fare updates according to Paraguay’s National Public Transport Association criteria. They seek a presidential decree guaranteeing subsidy disbursements by the 20th of each month. The union requests that government subsidies flow directly to passenger transport cards, rather than to transport company owners.
Paraguay bus strike follows financial crisis
Paraguay’s public transport sector faces financial difficulties. Ruiz Díaz revealed that approximately 15 of Cetrapam’s 30 member companies cannot continue operating under current conditions. Moreover, current government subsidies reflect operational costs from January 2024, despite significant increases in fuel, and maintenance costs.
Transport operators argue this outdated subsidy calculation forces companies to operate at financial losses whilst maintaining government-controlled low fares.
President sees system collapse
President Santiago Peña has acknowledged that Paraguay’s current public transport system “cannot continue”, and requires “profound and radical change”. In addition, the president announced that comprehensive reform legislation will be presented next week. He described the situation as a structural problem, that has collapsed and requires integral reform.
“Why would we maintain a system where nobody is happy?,” Peña stated. He emphasised that, whilst the current system has prevented fare increases, it has created numerous operational problems.
Government contingency response
Peña announced that a multidisciplinary institutional team is coordinating efforts to ensure citizens can reach their workplaces during the strike. Therefore, the government expects private sector companies to remain operational during the action. On the other hand, state institutions have committed to deploying their buses to assist affected commuters.
The president criticised current operational practices where transport companies deploy vehicles only during peak demand hours. Consequently, he noted that fewer buses operate during low-demand periods because subsidies are paid per passenger rather than per kilometre travelled.
Approximately 900,000 users affected
The Única Central de Empresarios de Transporte del Área Metropolitana de Asunción (Ucetrama) has confirmed it will join the Paraguay bus strike. As a result, combined union action will affect the majority of bus services across Asunción and Central Department. The strike affects approximately 900,000 users who depend on metropolitan public transport services daily.
Operators control a potential fleet of 1,500 buses. However, Paraguay’s transport authorities must establish minimum service provision during the strike period, suggesting some limited bus services may continue operating.
Resolution prospects
Paraguay’s government officials and transport company owners failed to reach agreement in recent negotiations. Nevertheless, Ruiz Díaz acknowledged that “everything is always possible”, regarding negotiations, but emphasised that the alleged lack of responses from Paraguay’s Vice-Ministry of Transport resulted in this “sad decision”.
The Paraguay bus strike reflects broader challenges facing South American public transport systems dependent on government subsidies. Therefore, President Peña’s admission of system collapse indicates recognition of fundamental problems requiring immediate attention. Swift government response could prevent the strike and restore stability to metropolitan public transport services essential for Paraguay’s capital region.
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