Metrorex severs ties with RATB and Sindomet Comserv

Newsroom 20/03/2014 | 12:57

Metrorex, the company that manages Bucharest’s subway network, has made the decision to eliminate common subscriptions with RATB, which owes Metrorex over RON 15 million.

As a result, the subway company no longer accepts, since March 14, Activ cards emitted and charged by RATB and neither will it accept common Metrorex/RATB tickets. At the end of 2013, RATB had accumulated debts of RON 17 million, out of which only about RON 2 million have been paid to Metrorex since the beginning of 2014.

“We want to assure our partners that RATB will make every effort to honor its payment obligations”, the company’s representatives said, adding that the “debts haven’t been neglected” but couldn’t be paid “given the difficult economical context”.

Approximately 25.000 people used Activ cards every month, which could be used to pay for both RATB and subway transport.

Metrorex made several other drastic decisions this week. Firstly, it cancelled its contract for renting advertising space in subway station. Secondly, the contract with Sindomet, which rents commercial spaces in subway stations, will be renegotiated.

Established in 1992, Sindomet Comserv manages all the commercial spaces within Metrorex’s property, as well as part of the advertising space.  The sole shareholder for the company is the Metrorex union, led by Ion Radoi, former PSD senator. Between 2007 and 2012, Sindomet recorded a profit of EUR 1 million with revenue up to EUR 5.5 million,. The contract between the union’s firm and Metrorex established that 75 percent of income from advertising and rentals will go to the union, and 25 percent to the subway company.

“The decision has been made and we’ve sent the proper notifications. In two weeks, the contract for advertising will be terminated. At the General Board Meeting we’ve made a decision to reverse the percentages for the deals Metrorex had with Sindomet. If the union cashed 75 percent of profits and we got 25 percent, now the split will be made with 60 percent for us and 40 percent for them. Furthermore, the board has decided to push for 90 percent, which I will do. If they don’t want to, then goodbye”, Aurel Radu said, general director for Metrorex.

The new contract to lease space for businesses within Metrorex’s properties will contain a Code of Conduct. The code will stipulate what kind of commercial activities can be performed in the subway stations.

“We don’t want any shady businesses, no lingerie, no bakeries that will fill the station with suspicious aromas. We would like to see modern shops, preferably owned by multinational chains” , Radu argues.

Diana Petrescu

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