State institutions, including the transport sector, have been drowned by severe financial crises affecting the country and declining levels of growth and construction, including the fall of the dictatorial regime in 2003 and the absence or weakness of financial support by successive Governments in the formations of the Ministry of Transport over more than 17 years; This has contributed to the reduction of the number of development projects that constitute the backbone of the transport sector and the absence of infrastructures, such as buildings, services, garages, and seaports, as well as the neglect of tunnels and the network of roads and bridges, which are the workflow of some transport formations and transport lines. Corruption has also contributed to crippling the State and restricting its movement towards construction, reconstruction, education and service delivery in order to ensure the stability and safety of society and its ability to cope with difficulties and crises; This opens the door to external interference and destabilization of internal conditions. Thus, the transport sector has been exposed to similar shocks in this matter, including attempts to privatize certain carriers, eliminate their presence or reduce their contracts and marginalize their role as national carriers through the anarchy of employment in State companies, as opposed to professionalism and specialization, or by attempting to merge them with other losing companies; To cover the financial deficit of these companies in an ill-thought-out manner by some of those who try to keep pace with the Government’s move towards privatization of the public sector, and to refer public sector firms to investment without looking at the thousands of employees that private sector firms, if invested, can lay off for the highest percentage of profits.
The financial crisis and its impact on transportation companies. Constraints and solutions
Author: Editing & Research Department
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