Transportation Strike

Submitted by fyl on 8 May, 2008 - 06:48.
The strike is not new—it has been going on all week. But, it hasn't been discussed here. This Prensa Latina article offers up the issue. Basically, transportistas, want the price of oil fixed.
At least 80 percent of urban and interurban public transportation and cabs from most of the country's 17 departments have supported the protest, according to several sources.

It's a real issue but clearly not unique to transportistas or to Nicaragua. And, yes, the strike has real impact. We are, for example, in an holding pattern for an order of 550 bags of cement for the Geek Ranch project because of it. The question is what should the government do, if anything, to address this.

‹ Transportation Strike Really Over Reasons Behind German Aid Suspension ›
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The STRIKE, in León, and its start in Managua

Submitted by Daddy-YO on 8 May, 2008 - 15:20.

On the second day of the strike, more than 300 vehicles (buses, taxis, & microbuses) blocked the main Managua-León-Chinandega highway near León. Police interceded with teargas & rubber bullets, breaking windows to pull people out of vehicles. More than 100 strikers were jailed, but some 50 were released the next day for lack of jail space. Between 75-150 vehicles were seized.

Carlos Argeñal, president of COBUL (la Cooperativa de Buses de León) said that the repression reminded him of the Somozan dictatorship. “We, as Sandinista sympathizers, never expected that the government of Daniel Ortega would have done this repression against the transportistas. We agreed to pull back off the road to let the CPC vehicles pass unimpeded, but afterwards we were attacked by the officials.”

The Chief of Police in León, Zeledón, said that the transportistas “threatened to burn the city of León” by exploding 4 of 6 fuel tanks (trucks?) that were found on the highway to Managua. He considered it practically terrorism. The threat was made when told that the police intended to remove the more than 300 vehicles blocking passage. The highway is now open to traffic.

On April 24 about 6,000 taxi drivers in caravan demonstrated outside the MTI (Ministerio nicaragüense de Transporte e Infraestructura) in Managua without incident. They demanded that the government freeze the price of gas at $2.11/gal (it’s now $4.48, diesel is $4.27) and subsides for public transportation within Managua. They warned there would be a nationwide strike if the price of fuel was not frozen.

Betanco, president of Fetraconic (la Federación de Transportistas Colectivos de Nicaragua), that covers 5,800 buses serving the 17 provinces in the country, said Nicaragua has the highest fuel prices in Central America, despite enjoying a special contract for Venezuelan petroleum. “The beauty of this case is that the Venezuelan oil touches Nicaragua port, gets distributed to other countries (in the region), and in those other countries it’s cheaper than here.”

In Nicaragua there are some 25,000 taxis, 7,000 cargo trucks, 7,500 intermunicipal buses and 1,200 urban buses.

sources: today's El Nuevo Diario online, and invertia.com

Is it really true that

Submitted by expat on 9 May, 2008 - 18:07.

Is it really true that Nicaragua is taking the Venezuelan oil and selling it elsewhere cheaper? If so, it´s a scandal of major proportions. Wouldn´t surprise me though.

Does Nicaragua have an oil refinery, or are they taking delivery of already-refined fuel?

I expect so

Submitted by fyl on 9 May, 2008 - 21:56.

The refinery is owned by Esso but there is one, yes. I don't know whether they are selling crude or refined oil to other countries but they are selling it.

Now, no scandal here. Being an ALBA member, they get "the good deal" which means 50% now and a long time to pay at very low interest. So, the more they sell the more current cash they have to invest in other programs.

If there is a scandal, it is what is or isn't getting done with the "profit".

Why is it not scandalous?

Submitted by bluewater on 10 May, 2008 - 12:01.

The Ortega government refuses to disclose how the market price oil money is being spent. The total lack of transparency is at the cost of withdrawal of other foreign aid and the general perception that they are using the money for personal gain or party purposes.

This also illustrates the double morality of the Ortega regime. It is perfectly appropriate for them to sell petroleum products at market prices when they have the good deal and control the risk and reward but it is bad when others try to make a profit. At the same time the Ortega family is selling oil at market prices like multinational Esso, they bitterly attack "savage capitalism" in speeches given from an air conditioned stage in the Plaza of the Revoluton and sipping imported water from hidden botles of Perrier.

Orwell's Animal Farm

Submitted by joshrothmann on 10 May, 2008 - 12:43.

Now, now, bluewater. Don't you know that some men are more equal than others?

http://en.wikipedia.org/wiki/Animal_Farm

Not only in Nicaragua

Submitted by dirtbag on 8 May, 2008 - 08:03.

There was a Long Haul Truckers demonstration in Washington last week due to Fuel Costs. Yesterday and today there is a major foul up on the Roads around Toronto by protesting Dump Truck Drivers over fuel costs. A large percentage of Shippers in North America are not willing ..so far..to pay increased Freight surcharges due to higher fuel costs. I can see from now until and through 2009 higher prices for all kinds of Commodities to Consumers, not the least, more for foodstuffs.

Very true

Submitted by fyl on 8 May, 2008 - 10:39.

Thanks for putting this is perspective. The main difference is that here in Nicaragua the margins are a lot thinner. For example, the Urbano (local bus) rates in Estelí are about C$3/trip or about US$.15. Each bus has at least two employees as well as operating costs of the equipment.

I feel that those living in the First World can use what is happening in Nicaragua as the "canary in the coal mine". Ignore what is happening in Nicaragua and the same sort of problems are likely to occur at home soon.

Already has

Submitted by ATZ on 8 May, 2008 - 15:55.

Commuter, many who drive 500 miles a week (and some with spouses who drive another 400 the other way, now pay another $300 a month in gas. On an already stretched budget that make s a big dent. Food prices are up here too.....not as big a problem as like in C.A. where people spend a lot more of their income on food, but another $200 tot he monthly bill and oh oh. Lots of blame on a lot of people and not a lot of personal responsibility.....as in maybe I should have planned a bit better and not spent every last dime every month. And these are not the ones in trouble with their mortgage. Be a long time before this gets better. The canary done sung and nobody was listening.

ATZ

Hugo Chavez

Submitted by chatwari on 8 May, 2008 - 15:38.

didn't promise us (USAnos) cheaper gas -- gas remains less than 25 cents a gallon in Venezuela.

The strike is bad enough..

Submitted by ezgringa on 8 May, 2008 - 15:07.

The strike is bad enough.. No buses, no taxis. We are 40 min. drive from Diriamba. .No food (delivered) or bottled drinking water or CERVEZA in my town of Casares due to the strike. We are also experiencing no electricity (AGAIN!) for 6 hrs. a day for the last 3 days. Just a thought I would share...Maybe my 5 Million dollar view will feed me!

not so sure I'm Nica-bound

Submitted by joshrothmann on 10 May, 2008 - 12:45.

It would stretch my retirement budget, but Panama and Costa Rica are looking better...