Losses among regional public transport operators in Latvia could reach 6.95 million euros this year, according to Ivo Ošenieks, president of the Latvian Passenger Transport Association (LPPA).
The association has sent a letter to parliamentary party factions, calling for meetings with regional carriers to find solutions to the chronic underfunding of public transport — a problem that could soon lead to service interruptions across the regions.
According to the association, since 2022, the costs of providing services have significantly increased due to the economic impact of Russia’s war in Ukraine. As a result, carriers with long-term contracts are now facing projected losses of nearly seven million euros in 2025.
Ošenieks warned that if no action is taken, the consequences could be felt within the next few months. “Every kilometer driven now causes losses for companies. In reality, carriers are currently subsidizing passengers themselves — ensuring that students get to school, pensioners reach medical institutions, and workers arrive at their jobs,” he said.
The association cautioned that
if companies go bankrupt, the state will be forced to urgently find new service providers,
who will likely demand higher prices, while the bankrupt carriers’ debts will become direct state losses.
At the same time, in several regions, carriers already fail to complete all scheduled routes, mainly because insufficient funding prevents hiring enough bus drivers. The number of canceled routes is expected to rise across all regions due to the growing driver shortage.
The LPPA also noted that the Public Procurement Law allows significant amendments to existing contracts if they are necessary due to unforeseen circumstances, provided the changes do not exceed 50% of the original contract value, or up to 10% without assessing material impact.
Currently, Latvia’s regional route network is divided into 16 service lots. Between 2019 and 2025, the Road Transport Administration (ATD) has signed long-term contracts for 14 lots through five procurement rounds. However, in two regions — “Cēsis” and “Sigulda, Limbaži” —
long-term contracts have not yet been concluded, and services there continue under direct award arrangements.
As previously reported, on the 12th of August, regional bus operators held a protest outside the Cabinet of Ministers, demanding compensation for unexpected cost increases caused by extraordinary circumstances. Later, on the 16th of September, carriers organized the protest “One Hour Without Public Transport” to draw attention to the sector’s chronic underfunding.
The carriers demanded 10% compensation for losses incurred under long-term contracts due to extraordinary conditions between on the 1st of July, 2022, and the 31st of August, 2025.
In mid-September, representatives from ATD met with passenger transport operators to discuss these issues. After the meeting, the ATD stated that it would seek legal mechanisms to fulfill the operators’ compensation requests.
Read also: “Such an approach goes against the interests of residents” – Ošenieks criticizes three-year public transport contracts