4.5.1. Independent Institutes or Companies - it has been noted above that traffic management agencies may not always be part of the city administrative structure. Semi-autonomous
transport institutes exist in a number of cities in Brazil including Rio de Janeiro
(CET/RIO), Belo Horizonte (BHTRANS), Campinas (EMDEC), Santos (SET/SANTOS), Sao Paulo (CET) and others. CET in Sao Paulo provides an interesting example of innovative arrangements:
CET- Companhia de Engenharia de Trafego de São Paulo, Brasil |
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CET was founded in 1976 as a “private company” [Sociedade Anonima] with the municipal government as the majority shareholder |
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CET works within overall policies determined by SMT |
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The purpose of CET is to manage traffic of the city; a huge task as Sao Paulo has a 10 million inhabitants, 4.7 million vehicles (88% of which are cars) and 11000 buses. |
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The responsibilities of CET are to plan, design, implement, operate and maintain all traffic facilities but not road construction, paving or maintenance. CET does not have powers to approve major road schemes, but mechanisms are in place for CET to participate in their definition and in the functional design |
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Traffic enforcement is mainly done by the State Police ( 2500 policemen), working in coordination with CET staff |
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A major reason for creating CET as a Sociedade Anonima ("company") was the need to recruit and sustain a team of professionals and technicians not linked to the unrealistically low wage policies of direct municipal administration. Today staff salaries are still competitive with the private sector. |
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CET has over 3500 employees and a budget of US$ 170 million per year. The income sources are 82% from municipal funds, through a contract with the Secretary of Transportation (SMT). The other 18% comes from the exploitation of curb parking spaces in a manual pay and display type of operation. |
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The budget is expended in (i) traffic operation (55%), (ii) installation and maintenance of signs and signals (17%), (iii) planning and designs of traffic measures (18%), (iv) road safety education and staff training (5%) and (vi) internal company costs (9%). |
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Directors of CET are elected by the Administrative Council of the company, chaired by the main shareholder (the Mayor of São Paulo). While CET is not isolated from political change, with few exceptions, the President of CET and its Technical Directors came from their internal staff and because of their high credibility changes in technical personnel as a result of political change are few |
4.5.2. Contracting out traffic management – some traffic management functions can be contracted out to the private sector. The contracting may be a conventional arrangement to perform a well-defined service such as for the maintenance of traffic
signals or the administration of parking both on and off street. These types of functions are already frequently contracted out in developing cities although there are issues which require the "traffic management agency" to frame and supervise the contracts with care. For example:
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