According to the Mayor of Vélez-Málaga, Francisco Delgado Bonilla, the suspension of the tram system as from November 1st is a temporary measure until the end of December but if the Junta de Andalucia continues to refuse to help financially, the trams will be sold.
The Vélez-Málaga tram system, the first in Andalucia, has been operating for five years but has been plagued by financial problems since the start and municipal debt has been mounting and now stands at over €1.6 million.
One of the major problems relates to the so-called technical rate, the per ticket operating cost of the tram system, currently set at €1.82 but due to rise to €2.50 when, or if, the second phase of the system comes into operation. The actual ticket price to the consumer is fixed at €1.20 with the Council basically having to pay the difference.
It has not helped that the number of tram users has continued to decline and has never reached the targeted figures.
The tram system in Jaén is also apparently not an economically viable proposition and the solution being proposed to benefit both tram networks is to set the technical rate at €0.45 through the regional budget. In other words, a subsidy.
Peter Wilkinson says:
The Tranvia to my way of thinking was never thought out properly in the first place. Metro systems of this nature only work in areas of high density usage where at the most a 15 minute headway is run. In Torre del Mar it starts in the town and so people arriving by bus at the bus station are not going to walk the distance to use the Tranvia when they can pick up a local bus connection. It also stops short of the main shopping area in Velez. In addition at the main Hospital due to the topography the Tranvia stop is lower than the bus stop and one has to climb up steps to reach the road level so not much good if you are a bit dodgy on your legs. At the new bus station in Velez the building which was supposed to be the information/ticket office is fenced off and needs urgent repair to stop further deterioration, shame on them when you see what has been done to some of the former railway station buildings in other areas eg Rincon de la Victoria is a perfect example. I would have thought that the building in Velez would have made an ideal Public Transport/Tourist Information Office encouraging the use of public transport instead of private cars and have made a showpiece promoting what is supposed to be the major town in the Axarquia Region.