Demand for public intermunicipal road transport in the Algarve increased by around 20% in March, driven by the rise in fuel prices following the war in the Middle East, according to data from the Algarve Intermunicipal Community ().
Speaking to the Lusa agency, the first secretary of AMAL, Joaquim Brandão Pires, stated that, “from one month to the next” demand for Vamus intercity road transport increased by around 20%, but stressed that, taking into account the difference in days between March and February, “absolute demand increased by around 15%”.
The growth trend was also recorded in road transport managed by municipalities, with an increase of around 20%, according to the head of the entity that functions as Transport Authority in the region.
Among the municipalities with the highest increase, Faro, Portimão and Albufeira stand out, which have always been “above 20%”, although, for now, this growth does not justify changes in the available supply.
“[…] Occupancy rates are average, they are relatively low, and therefore we do not yet have the need”, replied Brandão Pires, when asked about possible measures to reinforce services to respond to the growth in the number of passengers.
The first secretary of AMAL admitted, however, the possibility of adapting the offer, “in the medium term and if these increases are consolidated”, in the number of passengers.
Brandão Pires argued that transport is an area in which “the very existence of new supply generates new demand” and this “is one of the main factors behind the sector’s growth”, along with measures such as reducing prices or creating passes.
The United States and Israel launched a military attack against Iran on February 28 and, in response, Tehran closed the Strait of Hormuz, through which around 20% of the world’s oil and liquefied natural gas (LNG) passes.
International conflict puts pressure on fuel prices
As a consequence, oil tanker traffic in the strait fell sharply and supply-related instability increased, putting pressure on prices.
The escalation of conflict in the Middle East, a region crucial to the global supply of fossil fuels, is causing a sharp rise in prices.
The AMAL leader highlighted that, after the start of the war, an “effect on the purchase of securities [de transporte]”, such as passes, single or pre-purchased tickets.
“They all increased immediately, immediately, so it was an almost immediate response, with people assuming that the rise in fuel prices was coming. Fortunately it wasn’t that much, but they immediately started preparing for other transport solutions”, he added.
Intermodality still developing
Brandão Pires indicated that AMAL already has intermodal solutions that allow passengers “with a single ticket to be able to change transport, whether intercity or municipal”, but recognized that it is now necessary to extend these responses to other operators.
“The best thing would be if it could also be a railway, but we still haven’t managed to reach the railway”, he acknowledged, considering that the creation of a green pass for trains has “delayed this intermodality” in the region.
Brandão Pires clarified that AMAL is currently “studying, doing calculations on how much we have to pay to each operator” to create a single transport ticket valid for different services.
“I would like that at the beginning of the next school year […] we already had all of this working”, he estimated, when asked about the entry into force of an intermodal solution.
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