ARTICLE

Interjurisdictional Transport of Passengers Deregulated

The deregulation of motor vehicle transport of passengers seeks to allow companies to provide services freely on all routes.

November 11, 2024
Interjurisdictional Transport of Passengers Deregulated

Decree 883/2024 was published in the Official Gazette on October 7, 2024, repealing Decree 958/1992, which governed the activity.

The new Decree creates a new legal regime for medium- and long-distance motor vehicle transport of passengers under the principle of maximum simplification of requirements. Accordingly, it eliminates the classification of services into
 

  1. public services,
  2. free traffic services,
  3. executive services,
  4. transport services for tourism.
     

Instead, the Decree establishes that all services will be provided freely.

This implies that companies can now establish their own routes, vehicles, schedules, prices, and duration of services, complying with safety requirements and previously informing the services they will provide. The aim is to deregulate the activity and allow any company to provide the service freely, which until now was only established for those companies that previously had routes assigned to public service.

To this end, the Decree creates the Federal Registry of Interjurisdictional Passenger Transport by Motor Vehicle, in which interested companies must register to be allowed to provide the service.

The Decree also establishes that companies may use any loading and unloading stations authorized by the corresponding local jurisdictions, and that access to ports, airports, and aerodromes will be allowed to vehicles of any type that belong to any company providing motor transport services.

Furter, the Decree states that companies may enter into agreements for the indistinct use of vehicles and personnel, and must report such agreements to the enforcement authority, which implies that both vehicles and personnel may be shared.

With this measure, the Government expects that new players can be incorporated into the sector and that the range of services and price competition can be expanded, to benefit users and companies.