The second stretch of the Tranvia tram line in Vélez-Málaga, a 1,200 metre section from the Parque Jurado Lorca to the old railway station, is still not operating despite being completed in February 2008 at a cost of over €8 million.
The current 4,600 meter tram system has now been operational for four years but has not proved to be an economical success, and so far this year less than half the required number of passengers have used the tram.
The current ‘technical rate’, the actual cost of a ticket, is €1.68, but the price charged to the consumer is €1.30, meaning that the Council has to pay the €0.38 difference, a sort of subsidy or grant. The Council also has to pay for any shortfall between the number of actual passengers using the tram and a pre-agreed ‘anticipated’ number of passengers.
The anticipated number of passengers for 2010 is 1,200,000, the actual number is 481,668.
In this way, the Council has built up a debt with the operating company, Travelsa, of €1,150,000 and this is one of the sticking points to extending the service, Travelsa insisting that this debt is paid before the new section is opened.
Travelsa also want to revise the ‘technical rate’, a second sticking point to extending the service.