Only 700 of the 2,300 licenses for share-route taxis issued by the state are currently in use. Every week more licenses are going out of use. These are alarming figures for shared-use taxis (effectively small buses), which are supposed to supplement public transport in Israel and reduce road congestion.
The Knesset Economic Affairs Committee, headed by MK Eitan Cabel (Zionist Union) yesterday discussed preparing an amendment to the Road Transport Ordinance regulating the shared-route taxi sector for its second and third Knesset reading. The meeting took place amidst reports of a plan by the Ministry of Transport for making rav-kav cards (plastic multi-line rechargeable transit pass) usable in shared-route taxis.
The taxi sector reform announced by Minister of Transport Yisrael Katz last week is planned to include the use of rav-kav cards in all shared-route taxis, both new and existing one, after auctions are carried out for 120 new routes. The auctions will determine how much the operator will receive for each rav-kav card validation in a shared-route taxi. The subsidy will not apply to the existing routes before an auction is held for them. The Ministry of Transport estimates that its auctions will get under way only in late 2018.
The current shared-route taxi licenses will expire on January 31, 2018. Since the introduction of rav-kav cards in public transportation, the shared-route taxi sector has been declining. According to figures from the shared-route taxi association, since the rav-kav reform went into effect, 1,600 shared-route taxis have discontinued operations due to lack of economic viability caused by passengers switching to buses.
Katz's reform does not actually solve the plight of shared-route taxis in Israel. Even if the validity of the licenses is extended past January 31, 2018, the sector is at risk of extinction if the use of rav-kav cards for shared-route taxis is not introduced soon. A position paper by the shared-route taxi associations states, "If the Ministry of Transport's reform is implemented, by the time the auctions are completed, operators selected, and drivers are found, something that could take far longer than the end of 2018, there will be no active shared-route taxis left to provide passengers with a transportation solution - a solution that has been demonstrated to reduce transportation loads."
Knesset Public Transportation Subcommittee chairperson MK Dov Khenin (Joint List) said during the debate, "There is general agreement today that shared-route taxis are an important part of the solution for public transportation problems in Israel. It is essential to realize the urgency of the matter - the shared-route taxi sector is in great and real danger. The number of shared-route taxis in the field has waned in recent years and we are facing a risk that we will simply have no shared-route taxis. The government's statements must be carried out immediately: there are technical solutions that make it possible to operate this system within two or three months."
The technical solutions that Khenin is talking about include the immediate use of rav-kav cards for currently operating shared-route taxis, without waiting for the results of the Ministry of Transport's auctions. This alternative was proposed today in the discussion about the shared-route taxis association. At the same time, the shared-route taxis association today proposed extending the validity of the licenses for at least three years in order to allow a period of adjustment to the new shared-route taxis entering the sector for the purpose of providing passengers with shared-route taxi solution.
Discussion of these solutions is scheduled at the upcoming meetings of the Knesset Economic Affairs Committee in order to conclude the handling of the matter by the end of January. The solution for the existing shared-route taxis proposed by the Ministry of Transport is to extend their licenses until the end of 2018, when the auctions will take place, but without introducing the use of rav-kav cards.
Another problem with the new reform in shared-route taxis is the threshold conditions in the new auctions. These have not yet been published, but it appears that only people with more than NIS 200,000 in capital will be able to participate in the auctions. This condition constitutes a barrier for the existing shared-route taxis, most of which are in small private stands, leaving large operators as the only ones able to participate in the auctions.
MK Cable summoned up the meeting by saying that the Knesset Economic Affairs Committee planned to complete the task by finishing the legislative process by January 31, 2018, the expiry date for the existing licenses. He added, "Just like the minister of transport is the King Herod of Israel's roads, he has to now be the King Herod of public transport; otherwise, his title is meaningless." Commenting on the auctions, Cable said that he would not allow powerful forces to take over the market, and told the representatives of the shared-route taxis, "If I see that you are coming from a good place, I will be your partner, but if I see that you are coming from greed, I will not be a party to it."
Published by Globes [online], Israel Business News - www.globes-online.com - on December 20, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017