Along with the tourism industry, HORECA and trade, the transport sector is one of the most affected by the pandemic. To a different extent, all segments of this sector were adversely affected. Cargo transport had a decrease of 35% in the first 5 months of 2020 compared to the respective period of the previous year (at the end of June the decrease eased slightly -22% although it remains well below the values of the previous year). Although international circulation is more difficult during the pandemic, the decisive factor in the reduction of the number of trips is the impossibility of obtaining transport permits on the territory of some states (Russia, Turkey, Hungary). The situation in the passenger transport segment is worse. Operational figures from the Modern Bus Station system shows a decrease of 63% in the number of tickets sold for suburban trips, compared to the period before the pandemic, 70% on intercity routes and 87% on international routes. It should be noted that the number of routes has not decreased proportionally (23, 40 and 67%, respectively) which means that the buses that circulate have a smaller number of passengers and operate with a boarding coefficient of 25-30%, thus incurring losses.

Against expectations, Moldovan Railways (MR) are in a similar situation. Cargo transport by rail decreased on average by 45%, of which goods transported for export by 26%, those imported by 15%, those in transit by 71% and domestic transport by 3%. The main international passenger routes (St. Petersburg and Moscow) are suspended until the decision of the authorities of the Russian Federation is changed. Internal passenger transport is operational, but with social tariffs for this category of passengers the financial situation of the MR remains precarious.

The impact of the pandemic on the transport sector is multidimensional. Unfair competition from illicit passenger transport is added to the losses from reduced volume of sales. Regular passenger routes comply with travel restrictions in the Republic of Moldova and the countries of destination and operate under the conditions of the formal economy (applying VAT, paying excise taxes on the purchase of diesel), while illicit transport avoids both travel restrictions and a number of costs. More seriously, drivers who perform regular trips are paid according to the number of hours spent behind the wheel, or as the number of trips has decreased, their wages have decreased by 30-40%. There is a risk that in the medium and long term, we could have a shortage of drivers, as they are attracted by the prospect of higher wages for the same work to EU or Russia.

Financial difficulties faced by transport operators are enormous. Interest payments on loans were deferred during the state of emergency only until 29 June, without the implementation of a staggered repayment schedule over a longer period.

* This information is collected during the discussions conducted by the experts who elaborate the Impact Study of the COVID-19 pandemic on the sectors of the economy. The data can be taken from the website www.consecon.gov.md only with the obligatory mention of the source “Economic Council under the Prime Minister of the Republic of Moldova” and the specification that “The impact study of the COVID-19 pandemic on the economic sectors is carried out by The Economic Council jointly with the Ministry of Economy and Infrastructure, with the support of the European Bank for Reconstruction and Development and the United Kingdom Government Fund for Good Governance. ”

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund.