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24 February 2025

São Paulo Government Officially Dissolves EMTU For Transport Reform

Governor Tarcísio de Freitas signs decree leading to the transition of public transport management to Artesp, aiming for improved efficiency and integration.

The government of São Paulo has officially initiated the dissolution of the Empresa Metropolitana de Transportes Urbanos de São Paulo (EMTU), marking a significant transformation in the management of public transport within the state. Governor Tarcísio de Freitas signed the decree, published on Monday, October 24, 2023, outlining the plan for the disbandment of the EMTU, which has been responsible for regulating and overseeing intermunicipal transportation across various metropolitan regions.

According to the new decree, the EMTU's operations will be transferred to the Agência Reguladora de Serviços Públicos Delegados de Transporte do Estado de São Paulo (Artesp). This governmental shift aims not just to streamline the transportation services but also to modernize them significantly.

The publication of the decree stipulates the necessity of providing a plan for the dismantling of the EMTU within seven days. The government emphasized, "The disbandment will not affect the quality or operation of transportation services or the relationship with concessionaires," reinforcing the commitment to maintain service continuity during this transitional phase.

The decision to dissolve the EMTU was rooted in previous legislative action, having been approved by the Assembleia Legislativa do Estado de São Paulo (Alesp) back in 2020 during the administration of then-Governor João Dória. The original intent was to cut down on state expenses, with hopes of saving R$ 7 billion by phasing out certain state-run enterprises.

The current administration’s motivation behind the dissolution ties closely to its broader strategy, termed “São Paulo na Direção Certa,” which focuses on fiscal stability and reducing governmental involvement in public matters. This initiative includes plans for privatizations as well as other economic reforms aimed at fostering efficiency within public services.

State authorities have stated, "The transition of EMTU’s technical team to Artesp has already commenced and aims to yield improvements for users, including unified intermunicipal transport management, fleet modernization, enhanced fare integration, and improved monitoring through the Centro de Gestão e Supervisão (CGS)." These measures are seen as steps toward creating not only efficient but also environmentally sustainable transportation solutions.

The EMTU has historically played a significant role throughout various regions, including São Paulo, Baixada Santista, Campinas, Vale do Paraíba, and Sorocaba, serving over 134 municipalities. It coordinated and regulated services provided by concessionaires, ensuring compliance and quality within the public transport framework.

With its impending closure, the government is committed to defining the fate of the technical resources of the EMTU, ensuring the management of current contracts, and redistributing its core regulatory functions to different state management bodies to maintain operational integrity.

Critics of the EMTU’s dissolution have revealed concerns about how these changes may impact public transport services and the effectiveness of management transferring to Artesp. Nonetheless, state officials assert their plans will not adversely affect commuters and promise the transition will bolster oversight and efficiency.

While this dissolution has been anticipated since the 2020 legislative vote, the specific directives were not disclosed until now, over three years later. The current government’s implementation of the dissolution reflects its broader intention to shift the public transport management paradigm, thereby instigated debates on the effectiveness of privatization and public service management.

Moving forward, the government's strategy is pivotal as it moves to reshape transportation in São Paulo, with intentions to meet modern demands and operational challenges. The public will be watching closely as the transition progresses, awaiting clear evidence of improvements outlined by state officials.

The abolition of the EMTU marks the end of era for state-run transportation management, ushering in what the state hopes will be enhanced service delivery and operational efficiencies under the new regulatory framework established by Artesp. The coming weeks will determine how these promises materialize and how effectively the government can maintain public confidence during this significant transition.