SANTACO's Response to Portfolio Committee on Transport: Support for TR3 2020 Strategy

1. SANTACO’s response to the Portfolio Committee on Transport on the Support required for the Implementation of the TR3 2020 strategy Parliament of the Republic of South Africa 21/03/2011

2. Background • Follow up on the TR3 2020 presentation made to the Portfolio Committee for transport, within the parliament of the Republic of SA • The Portfolio Committee gave the NDOT 3 weeks to respond to the presentation from SANTACO and provide a support plan to the TR3 2020 and support economic and social investment within the Taxi Industry

3. Who is the Taxi Industry • There seems to be a lack of understanding on who the Taxi Industry is • Supported the country during the dark days of apartheid and provided necessary means for the movement of people • Biggest BBBEE group within the transport sector • Still the largest transporter of millions of the previously disadvantaged and marginalised communities within the country – 15million • Support economic activity though connecting people with business centres and places of employment. • Contributes to the job creation initiatives

4. Economic transformation • Consolidation of individual taxi business operations to co-operative entities that will harness bargaining power and create efficiency in the management business operations. • Electronic Management System – develop a fare collection system that will create a platform for consolidation of value and power for the industry. • Promote empowerment through a conscious change from consumer to equity and shareholding arrangement within the Taxi industry value chain and all other economic transactions. • Expanding scope of business operations from Taxi To Transport thereby participating in other transport modes through a diversification strategy e.g. bus, rail, aviation etc.

5. Economic investment projects • EMS • Finance • Taxi Finance • Insurance • Co-operative bank • Workshop, vehicle parts and spares • Energy and petroleum • Local Taxi manufacturing

6. Social investment • Hlokomela • Road Safety programme • Customer service • Service standards • Call center • Uniform • Monitoring • Community development programmes • Moral regeneration and rehabilitation • Training academy • Skills development • Women participation • Improve service standards

7. Support from NDOT • Policy and legislation • NLTA • Role of associations • Transport Authorities and involvement of Taxi in decision making around routes etc. • Lifespan of permits • Submission of two permits to participate in larger modes • Application for intra-provincial licence – should be done at provincial level to prevent unfair competition form municipalities who themselves are providing same service • Compensation of operators for permits • TRP • Reinstatement of front seat • Colour coding to open other revenue streams

8. Research • Engagement of CSIR • Estimate contribution of the Industry to economy and GDP • Verification of the data on the scope of Taxi’s and extent of operations • Contribution to job creation • Corporatisation and co-operatives development • Study tours on the co-operative model • Kenya, Canada, Namibia

9. Diversification • Bus tender contracts • Facilitation of Set aside for the Taxi Industry • Aviation • Access and Licence to ACSA Airports for better transport integration between modes • Support in the launching of a Taxi Industry owned airline to service industry market • Licence to operate within the regional airports space • Rail – ensure strong participation within the rail development initiatives

10. Alignment and integration • Improve engagement of the Taxi industry on policy issues and decision making platforms and committees • BRT, Technical committee on vehicle specifications, toll system • Facilitate alignment with other government agencies and programme • RTMC – road safety • SETA – Training • PRASA – rail • SANRAL – road infrastructure & tolls

11. Key success factor • PMU – pool of experts to assist the industry in the following • Opportunity recognition • Packaging of business concepts and proposals • Development of business plans in specific areas • Support implementation of all initiatives for the duration of the strategy implementation • Funding • Use government resources to provide seed capital for key empowerment projects • Assist in the mobilisation of capital for economic and social programmes

12. Parliament support • Change of perception from parliament on the role and status of the Taxi Industry. • Acknowledgement of the contribution of the industry to the country’s GDP, job creation and economic and social development • Implementation of legislation on Co-operative development and BBBEE within the public transport sector • Support the economic and the social investment programmes facilitated by the taxi industry

13. Thank you!