Santiago’s bus transportation system, Transantiago, plans to increase its rush hour bus fares by 20 pesos on July 17 in an effort to combat a growing annual budget deficit.

The price increase follows on the heels of an 80-peso price hike earlier in the year, resulting in a total increase of 100 pesos (US$0.20) for 2010. Metro prices increased by 120 (US$0.25) pesos in the same time period. Fares during peak operating hours will be 500 pesos for buses and 580 pesos for the Metro, up from 400 pesos and 460 pesos, respectively, for the same time last year. 

Study may lead to restoration of aging funiculars

Regional Development Undersecretary Miguel Flores announced last week that local governments would seek to secure funds to buy and operate Valparaiso’s much acclaimed (but very deteriorated) funicular systems. Funding will be sought from the Urban Recovery and Development Program (known as PRDUV).

Flores said the plan contemplates the purchase of privately owned funiculars and the restoration of funiculars owned by the city of Valparaiso.

The line is to be built jointly with Line 6

Construction of the Santiago Metro’s long-languishing Line 3 will finally start this year, after a 25 year delay, Metro president Raphael Bergoeing confirmed this week.

Bergoeing made the announcement Wednesday, adding that Line 3 and Line 6 would be built together, but in sections, during the current four-year mandate of President Sebastián Piñera (2010 to 2014). The lines would be completely finished by 2015 and would connect many poorer parts of the Metropolitan Region with the more prosperous parts.

This weekend Transantiago bus prices went up by US$0.04 (20 pesos) and are expected to increase another US $0.04 in May. A Metro ride now costs anywhere from US$0.83 (430 pesos) to US$0.90 (490 pesos), depending on the time at which one takes the train. But by the end of 2010, the lowest Transantiago price is anticipated to be US $0.96.

For the forth day in a row, thousands of European flights have been cancelled due to the volcano eruption in Iceland

Although situated on the other side of the world, Chile has felt the impact of the travel chaos caused by the volcanic eruption in Iceland last week.

Hundreds of Chileans and foreigners are either stuck in the country unable to travel to their European destination, or are abroad unable to get back as large parts of Europe remain on air travel lockdown.