It was the only company in Peru to hold a Guinness World Record, but modernization led it to bankruptcy: Ormeno’s story

From holding the Guinness World Record for the longest track in 1995 to facing stiff competition and regulatory changes. Find out how the fortunes of this iconic Peruvian transport company changed. Credit: TikTok @cesaribarra2023

A company called Ormeno Transport, recognized in Peru and South America for its presence on the roads before the new century due to its innovative fleet, was eventually forgotten due to the modernization of the sector. From this its buses were started Peru And traveled kilometers To reach places as diverse as Chile, Colombia, Venezuela, Bolivia, Argentina and Brazil.

Joaquin Ormeno Cabrera, the organization’s founder and top leader for three decades, made a decision that turned out to be critical to the company’s future decline. The popularity of Don Joaquin, as his employees called him, increased in 1977 when he decided to expand his bus route and purchased the first double-deckers to start a route from Lima to Buenos Aires.

Thirteen years later, he decided to expand his business and for that, A 17 thousand square meters of land It was previously owned by brothers Mario and Pedro Brescia. In 1990, this space was occupied by Fiat, specializing in vehicle assembly.

Ormeno Transport Company, once a leader in South America’s routes, is facing its twilight after decades of success and failure. Check out the important decisions about his fate. Composition: Infobae Peru

Ormeño received the company Guinness World Records in 1995 For completing the longest route traveled by a passenger bus, covering 9 thousand kilometers. The journey started in Buenos Aires, Argentina and ended in Caracas (Venezuela).

See also  Israel vs Hamas: Nearly 1,000 killed in two days of conflict | Palestine | Benjamin Netanyahu | Gaza Strip | Islamic Jihad | Daniel Hagari | Ebrahim Raisi West Bank | Hezbollah | Latest | the world

Several factors played a major role in the downfall of the company Ormeno. In 1990, A The Act liberalized the routes, allowing anyone in a bus to provide public transport services. This has fueled fierce price competition, with new entrants often offering lower rates than established companies Southern Cross Y Ormeno.

OrmenoIn its early years, it operated with buses, with a high-quality fleet in Peru They cost up to half a million dollars, Compared to informal buyers who bought second-hand vehicles in the US for five thousand dollars.

Don Joaquín’s company thrived under a regulated system in which concessions and prices were controlled by the government. Ministry of Transport. However, the company suddenly found itself competing with a growing number of competitors. Adapting to these changes was difficult, and the company suffered a decline in the quality of its fleet as it could not afford new vehicles due to low passenger demand.

The Ormeño company achieved international fame before being overtaken by technological progress and persistent financial problems. Know the factors behind its demise. Credit: Andina

2011 marked the beginning of the company National Observatory of Tax Administration (SUNAT) It was revealed that the business group had taken an action Ormeno He owed 76 million soles. The Circumcision A property at Dagna was seized and three buses recovered after negotiations and efforts by the directors of the company.

As the 20th century progressed, Ormeño’s fleet was drastically reduced, marking a turning point in the company’s history. This fall coincided with the death of Don Joaquin Ormeno in 2019.

According to Cesar Barra On his TikTok channel @cesaribarra2023, the main mistake Ormeno Betting on long-haul routes as the future of transportation, while airlines are leading the passenger market on international routes.

See also  What is the small amount that Leonard Leon wanted to give to Carla Tarazona for his children's pension? | eye view

After the death of the founder, the company passed into the hands of his eldest son. Louis Joaquin Ormeno Malone, He was at the helm a year before his death in 2020. The company was left in the hands of the second son, Julio Cesar Ormeno Malonewho served as Head of Operations Maintenance, but did not have the same fate as his father in running this interprovincial route business.

However, the most devastating blow Ormeno And there were many companies worldwide The Covid-19 pandemic has buried this international transportation system, which is appreciated by Peruvians and Latin Americans alike.

The life and legacy of Joaquín Ormino Cabrera, one of Latin America’s most important transportation companies, and how his death marked the beginning of the system’s end.

César Barra not only shares with us the history of the company, but also his work experience Don Joaquin Ormeno. According to Tiktoker, the founder of the company was considered a pioneer in interprovincial passenger transport by former President of the Republic Fernando Belante Terry.

The liberation of the corridors in Peru had a series of significant consequences. This restriction led to a drastic increase Bus group in Lima and Calloattains the figure of 48 thousand units in circulation. Technical inspection systems were removed and the use of taximeters was abolished. In addition, free fares were established on all bus routes and import of used vehicles for public and private transport was allowed. Import of used auto parts was also legalized.

The taxi market was crowded with vans Station Wagon With the steering wheel on the right side, especially on the Dagna. Enatru, a public company that operates articulated buses and food systems like the Metropolitano, was controversially privatized. This liberalization of routes also led to the proliferation of informal intermediate terminals, which sowed the seeds of many more. Problems that continue to affect For transportation services so far.

See also  Congress | Returning with a populist tinge: What programs will Congress prioritize after the break? | Alejandro Soto | Citizen Protection | AFP | principle

Read more

Local News