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Department of Transport. PUBLIC TRANSPORT , TAXI RECAPITALISATION PROJECT AND PUBLIC TRANSPORT SUBSIDIES. 01 JUNE 2004. 1. INTRODUCTION AND BACKGROUND INFORMATION 2. POLICY THRUSTS ON PUBLIC TRANSPORT 3. THE TAXI PROCESS 4. COMMUTER RAIL BUS CONTRACTS AN INTEGRATED PUBLIC TRANSPORT SYSTEM.
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01 JUNE 2004
INTRODUCTION AND BACKGROUND INFORMATION
Important for South Africa given its history, addressing significant
barriers to social inclusion:
§Reducing the need to travel;
§Making travel more affordable;
§And thus saving people’s income from increasingly used for transport cost.
T White Paper on National Transport Policy, 1996, brought a clear focus,
with the following key factors :
Government recognizing that public transport is a basic need
· To be efficiently provided so that resources are used in an optimal manner
·Based on transport plans
Creating a comprehensive integrated, multi-modal, public transport system
Approached on the basis of competitive tendering
THE RECAPITALISATION OF THE TAXI INDUSTRY
Investigate the conflict and violence prevalent in the taxi industry at the time.
Make recommendations to Government on how to address findings thereof.
Findings of the NTTT broadly grouped into three main areas, viz:
The need to regulatethe taxi industry
The need toformalisethe taxi industry
The urgent need for economic empowerment for the industry.THE TAXI PROCESS
The National Land Transport Transition Act , (NLTTA),2000
Associations and members thereof, encouraged to register with Provincial Registrars (Section 56 of the NLTTA apply).
Operators currently converting permits to operating licenses as required ( Section 32 of the NLTTA apply).
Establishment of the National Transport Register as required by the NLTTA (Section 52) – this is currently being rolled out with Provinces.
Registration with the South African Revenue Services (SARS) is a pre-requisite for conversion of a permit to an operating license.
Special Legalisation Process (SPL) initiated to give illegal taxi operators an opportunity to legalise their operations provided they met certain basic requirements- the “Be Legal Campaign” (BLC) , closed on the 31st December 2002 as per MINCOMresolution.PROGRESS MADE POST THE NTTT FINDINGS
Democratic elections held at association, regional and provincial level in all Provinces.
Democratically elected Provincial Taxi Councils (PROTACO’s) now serve as the mouthpiece of the industry at the Provincial level.
The South African National Taxi Council (SANTACO) elected into office in September 2001, by all Province.PROGRESS MADE POST THE NTTT FINDINGS
Government initiated and funded pilot taxi co-operatives as part of the economic empowerment suggested by the NTTT.
Pilot co-operatives became unsustainable due to lack of management skills of the industry and lack of funding.
Additional economic empowerment for the industry embedded in capital subsidy through the taxi recap program.PROGRESS MADE POST THE NTTT FINDINGS
Department of Transport
Seeks to replace the current 97 000 ageing fleet of 16 seaters with purpose built larger capacity New Taxi Vehicles (NTV) in the form of 18 and 35 seaters through a government tender process.
Economically empower the taxi industry, through a once off capital subsidy, the scrapping allowance of 20% per vehicle translating into R4 billion over 4 years.
Introduction of the electronic payment system to monitor and control data collection, provide audit functionalities, effect modal integration.
Cabinet approval – September 1999
The dti issued request for proposals – November 1999THE TAXI RECAP TENDER
The need to first formalise and democratise the taxi industry ( completed in September 2001)
De-linking of the Electronic Management System (EMS) from the New Taxi Vehicle (NTV) process, after it was realised that the EMS technology had overtaken developments of the process.
( Separate Tender for the EMS issued in March 2001, and four companies short listed.)
Dispute between Government and SANTACO over the ownership and management of the EMS arose, and the matter was resolved end of 2002.
Strategic review report which contained indicative affordability figures done in November 2002.TAXI RECAP TENDER DELAYED
The Steering Committee chaired by DOT reconstituted with the DTI, DME, Treasury and Office of Status of People with Disability( The Presidency )
The BAFO instruction document was issued to both NTV and EMS bidders. (21st May 2003)
Government entered into negotiations with the bidders to secure 25.1% equity for the taxi industry.
The BAFO submission was closed by the expected date of 12th September 2003.
The evaluation process for both the EMS and NTV tender processes was completed and a report finalised by 19th November 2003.PROGRESS MADEON TAXI RECAP TENDER
Additional funding requirement will be increased burden on the fiscus
Should NTV prices proposed by the bidders be higher than current taxi prices.
Some operators may not afford the cost of purchase and maintenance
Although the project have added advantage of safety and comfort to commuters.
Commuters may have to ultimately pay for fare increases
A conditional approval of NTV Suppliers to be followed by Homologation and Endurance tests.
Negotiations with suppliers still to be done.CHALLENGES FACING THE TAXI RECAP PROJECT
Rolling Stock Age Distribution
Tendered contract – contract awarded by a tender board between DOT and the operator for the provision of public transport service
Negotiated contract – allowed by the Minister to be negotiated with the operator rather than be put out to tenderBUS CONTRACTS
Approximately 7500 buses are currently subsidised
Approximately 2600 are unsubsidised
Approximately 1.8% of the population was subsidised in the 2001/02 financial year
On average passengers received R198 in subsidies per month = 6.7% of the average household incomeBUS SUBSIDY DISTRIBUTION
Remaining 70% of services a minimum of 35% PDI equity ownership required
10% subcontracting of the remaining 70% services to SMME/PDIsPROMOTION OF BEE: ROAD BASED P/TRANSPORT
Subsidy Management System is being rolled out in all provinces on the National Transport RegisterQUALITY MANAGEMENT
AN INTEGRATED APPROACH
TO PUBLIC TRANSPORT