Download as pdf or txt
Download as pdf or txt
You are on page 1of 12

Research in Transportation Economics 39 (2013) 34e45

Contents lists available at SciVerse ScienceDirect

Research in Transportation Economics


journal homepage: www.elsevier.com/locate/retrec

Overview of public transport policy developments in South Africa


Jackie Walters*
Institute of Transport and Logistics Studies (ITLS (Africa)), Department of Transport and Supply Chain Management, University of Johannesburg, PO Box 524, Auckland Park,
Johannesburg 2006, South Africa

a r t i c l e i n f o a b s t r a c t

Article history: Public transport in South Africa is one of the most burning issues in the transport sector. The government
Available online 6 July 2012 is faced with huge public pressure to improve public transport systems in the face of rising fuel costs, the
pending implementation of expensive urban toll road systems in the Gauteng province, and elsewhere in
Keywords: urban environments, public transport safety issues, public transport fleet renewal, especially the
Public transport developments in South commuter rail services, as well as limited resources to fund public transport. As a developing country, the
Africa
South African Government has pressing funding issues such as funds needed to improve housing for the
Public transport policy processes
poor to improve schooling and public health services. Government is also faced with a vocal minibus taxi
Taxi recapitalisation
BRT systems
industry that transports an estimated 65% of all commuters in the country that is also insisting on
PRASA subsidies for its services.
Many policies and strategies have been put in place to address the public transport system in the
country, some more successful than others. The purpose of this paper is to provide an overview of the
latest policy and strategy developments, to highlight the latest modal developments and to build on
previous overviews in the Thredbo Conference series.
Ó 2012 Elsevier Ltd. All rights reserved.

1. Introduction In the light of these challenges, a large number of studies have


been undertaken, with public transport strategy documents
Public transport in South Africa has always been a burning issue. developed and legislation enacted. Yet, the progress has been
Throughout the country’s history of separate development, millions relatively slow in transforming the public transport system in the
of people were artificially located long distances away from job country. Many reasons are given for this lack of progress, for
opportunities, places of recreation and daily chores such as shop- example, a lack of funding for public transport policy imple-
ping centres, health facilities etc. Public transport, in particular the mentation; organised labour opposition to a tender for contracts in
rail and bus modes of transport, was used as an “instrument” of the commuter bus industry; cumbersome and complicated public
policy to provide mobility at reduced costs (subsidised services) to engagement processes e also involving the respective modes of
affected communities. The spatial engineering of the past unfor- transport; a lack of skills to implement policy initiatives; compli-
tunately continues today and in some ways are still perpetuated by cations involving three levels of government in public transport
the development of major urban housing developments on rela- decisions; a lack of integrated public transport plans, especially at
tively cheap land (to make the houses more affordable), often at the the metro levels of government to guide the implementation
fringes of the long established townships. The challenge govern- process; and changes in political role players (and often senior
ment faces is how to provide (and balance) affordable, safe and bureaucrats) at the national, provincial and local levels of govern-
accessible public transport to these townships and the urban and ment following elections (loss of institutional capacity resulting in
rural communities of SA in the face of high levels of urbanisation, a lack of continuity in policy direction and implementation).
inward migration of millions of people from other African countries This paper provides an overview of public transport develop-
to the urban areas of South Africa, and the financial demands placed ments in South Africa over recent years and will describe the major
on the government for school and health services, provision of events that have taken place over this period. As will be seen,
housing for the poor, security, etc. progress is not consistent across the modes of transport while in
some areas, such as commuter bus transport, policy implementa-
tion has been delayed for many years. In other areas, for example
* Tel.: þ27 5592088. the recent introduction of bus rapid transit (BRT) systems and the
E-mail address: jwalters@uj.ac.za. operationalization of Gautrain, progress is evident.

0739-8859/$ e see front matter Ó 2012 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.retrec.2012.05.021
J. Walters / Research in Transportation Economics 39 (2013) 34e45 35

Public transport policy and its implementation can however be This profile suggests that there is general discord with the level
seen as one of the most complex areas of transport policy in the and quality of public transport services being provided by public
country due to its political implications, political linkages, funding transport operators in the country. Subsequent to the 2008 paper
constraints, a major push to involve previously excluded businesses by Walters (2008), as well as an update at the Thredbo 10 confer-
in the subsidy system, and being faced with financial constraints ence at Hamilton Island, Australia as well as at Thredbo 11
and a public outcry over the state of public transport in the country conference held in Delft, The Netherlands, progress with policy
(e.g., adequacy, public transport user costs, accessibility, safety implementation has been slow, although progress has been made
issues, affordability). In other areas of transport policy making and in a number of key areas. Government has recognised this and has
implementation, substantial progress has been made with the initiated a number of new strategies and policies to address the
deregulated air and road transport industries, and the development issues of concern. Progress with policy implementation as well as
of the national road system. the strategies will be discussed in the following sections, followed
by specific reference to the progress made (or the lack thereof) for
1.1. How is the current public transport system performing? the respective modes of public transport.

Few formal studies are conducted to establish the current state 2. Policy framework: road-based public transport
of public transport in South Africa. However, national travel surveys
are conducted from time to time, the last undertaken by the The policy framework for road-based public transport (bus and
Department of Transport (DoT) in 2003 (to be repeated in 2012). taxi) is depicted in Fig. 1:
An overview of the characteristics of public transport in South
Africa, based on a National Household Travel Survey (NHTS, 2003), 2.1. The White Paper on National Transport Policy, 1996
is given in Walters (2008). The following salient points regarding
the South African public transport system were highlighted: In brief, the White Paper established the principle of competi-
tive tendering for subsidised services, and promoted the principle
 Only about 10.7% of households surveyed in South Africa had of competition for the route in contrast to on the route. In future, all
a monthly income that exceeded R 6000 (about US$800 at an operators would be required to tender for their subsidised services.
exchange rate of R 7.50/US$). The majority of households This would “open up the market” to new previously disadvantaged
(83.1%) had a monthly household income of less than R 6000. operators that did not participate in subsidised public transport
 Bus and taxi services are relatively more accessible than rail service provision, as well as to potential international operators.
services. Following the White Paper, a number of tendered contracts were
 The percentage of households that have access to a car is 26.1% concluded with operators in areas where existing operators indi-
with an average of 0.40 cars per household. The highest cated that they wished to withdraw their services due to financial
number of cars per household are to be found in the metro- constraints.
politan and urban areas.
 Almost half of the households surveyed said that their main 2.2. The conclusion of interim contracts, 1997
problem was that public transport was either not available or
was too far away. In 1997 the Department of Transport (DoT) concluded interim
 One third of households reported that safety from accidents contracts (ICs) with existing subsidised operators which, in
and bad driving behaviour was the most serious transport essence, put their existing services on a contractual footing. Prior to
problems they experienced. this development, services were developed based on DoT approval
 One fifth of households mentioned that the cost of public but not within the ambit of a formal contract or an agreed Inte-
transport was of concern. grated Transport Plan (ITP). This situation gave the operators
 Respondents were also unhappy with security on trains (63%), perpetual rights in the operation of their services. The ICs were
lack of facilities at bus stops (74%), crowding on buses (54%) originally intended to last between one and three years in order to
and 51% with the low off-peak frequencies of bus services. give the operators time to “get fit” for the tendering system by
 Minibus taxi users were most unhappy about safety from reorganising their businesses in such a way that they would be able
accidents (67%), lack of facilities at taxi ranks (64%) and a lack of to tender competitively for their existing services. Interim contracts
vehicle road worthiness (60%). would also only come to an end when the services incorporated in

Fig. 1. Policy framework for road-based public transport (bus and taxi).
36 J. Walters / Research in Transportation Economics 39 (2013) 34e45

the ICs were put out to tender, and until such developments took system in 2002. Other reasons cited for the suspension was the
place would continue to remain valid. unaffordability of the tendering system considering the govern-
ment’s financial constraints. In most cases the tendered contracts
2.3. The Moving South Africa Strategy, 1998 proved to be more expensive than the services they were replacing
(Walters & Cloete, 2001). A number of negotiated contracts have
The Moving South Africa Strategy study was undertaken to however been concluded since 2000. These negotiations involved
provide a multi-modal transport vision and strategy for the country organised labour, the DoT and the operator reaching amicable
based on the White Paper of 1996s vision for transport in South settlements in the negotiations preceding the conclusion of the
Africa. This extensive study made a number of strategic recom- contract.
mendations regarding public transport, such as the establishment
of a corridor focus, the densification of such corridors, optimising 2.6. National land transport framework (NLTSF)
modal economics (by promoting the mode that offers the best cost/
service trade-off for a given corridor), and improving firm level The establishment of the NLTSF is a legislative requirement in
performance and productivity by creating, amongst other, compe- terms of the NLTTA of 2000 and provides a five year forward-
tition within and between modes of transport through tendering/ looking view of public transport developments (2006e2011). In
concessioning of services to private operators (Moving South Africa, terms of bus and taxi services the framework provided for all
1998, p. 135). This also laid the foundation for the formalisation of provincial and municipal bus operators to be corporatized; all
the taxi industry (Moving South Africa, 1998, p. 156). subsidised services had to be provided in terms of tendered/
negotiated contracts that would be open to all road-based public
2.4. The Tripartite Heads of Agreement, 1999 transport operators (Department of Transport, 2006, p. 5). In
support of the tendering system, it foresaw the gazetting of a model
During the period 1997 and 1999, a number of tendered tender document, the replacement of interim and tendered bus
contracts were concluded with IC operators, even before it was first contracts with new tendered or negotiated contracts, and the
legislated in 2000. Experiences with job losses and a reduction of issuing of tenders based on transport plans (where possible).
condition of service and benefits of labour led to two years of
discussions between the DoT, organised labour and the Southern 2.7. Taxi recapitalisation programme (2006)
African Bus Operators Association (SABOA) (representing opera-
tors), and eventually resulted in the Tripartite Heads of Agreement Following many years of discussion and debate, agreement was
in 1999 (HOA). The main purpose of the agreement was to soften reached between the DoT and the South African National Taxi
the impact of competitive tendering on labour through job losses Council (SANTACO) to begin a formal process of scrapping and
and a reduction in wages. In particular, the agreement compelled replacing old and unroadworthy taxi vehicles with new vehicles
any operator to source at least 75% of the required workforce of the that had to meet new national standards for the conveyance of
contract service from the incumbent operator. It also made provi- passengers. More information about this process is included in the
sion for a right of refusal of 10% where, should a service be put out taxi modal overview section of this paper.
to tender, and the incumbent operator’s tender prices was within
10% of the most acceptable tender, the incumbent operator was 2.8. Public transport strategy documents, 2007
offered the contract at the tender price of the most acceptable
tender. This principle was agreed to with a view to giving the In March 2007 the DoT published two influential strategy
incumbent operator the best chance of winning its services back, documents, The Public Transport Strategy, and The Public Transport
thus lessening the impact on labour. Action Plan, Phase 1 (2007e2010): Catalytic Integrated Rapid Public
Transport Network Projects. The purpose of these documents was
2.5. National Land Transport Transition Act, 2000 (NLTTA) to give new direction to public transport management as well as to
make provision for the introduction of bus rapid transit (BRT)
In 2000, the National Land Transport Transition Act was enac- systems. The Strategy document contains two key thrusts: accel-
ted. This act, for the first time, defined the functions of the erated modal upgrading (multi-modal) that included a consolida-
respective levels of government in managing public transport (a tion of the passenger rail sector; rolling out a National Rail Plan;
concurrent function in terms of the RSA Constitution), established implementing the taxi recapitalisation programme, including
the principle of transport authorities to manage public transport, improved regulation and law enforcement; and transforming and
legislated arrangements around competitive tendering, and also optimising current subsidised bus services. Secondly, it made
made provision for negotiated contracts under certain conditions, provision for Integrated Rapid Public Transport Networks (IRPTNs)
for example for transformational and empowerment reasons (a in the main metro areas of the country. The longer term vision until
requirement that the negotiated service had to be majority black 2020 is to develop a system that places over 85% of a metropolitan
owned within two years of such negotiated agreements). The act city’s population within one km of an IRPTN trunk or feeder
also made provision for integrated public transport planning e corridor. A further goal for metropolitan cities by 2020 is to achieve
a condition for concluding contracts with operators. This condition a mode shift of 20% of car work trips to public transport networks.
was later amended when an operator took government to court These networks will consist of core road and rail trunk corridors
(and won the case) when a provincial government tried to put its with feeder and distributor systems. The aim is also to achieve
services out to tender without the existence of an ITP. maximum physical and fare integration in the core public transport
Despite the conditions contained in the HOA to protect labour in services.
a tender situation, labour continued to voice its opposition to The Public Transport Action Plan details the Public Transport
competitive tendering. It remained, in principle, against competi- Strategy. It focuses on the six main metros and the public transport
tive tendering in public transport. This continued opposition and systems of the six secondary cities. It planned for the scrapping and
the lack of finding common ground between labour, the DoT and replacement of 75 000 taxis by 2010, the refurbishment of 2000 rail
SABOA (the Southern African Bus Operators Association) eventually coaches used for commuter rail services, and the replacement of
led to the indefinite suspension of the competitive tendering 30% of the current commuter bus fleet of 7500 to be tender
J. Walters / Research in Transportation Economics 39 (2013) 34e45 37

compliant by 2009/10. The Action Plan also established, amongst a concessioning system for the operation of rail services on
other, more detail about the BRT system principles (such as how to a competitive basis. Provision for the concessioning of commuter
accommodate affected operators) and included new specifications rail services was also made in the NLTTA. To date, concessioning has
for buses on the trunk routes. not happened and it is doubtful as to whether it is still government
policy to concession services. However, at a recent investors’
2.9. National Land Transport Act, 2009 conference held in Cape Town, mention was made of private sector
involvement in commuter rail services (van der Walt, 2011).
This act replaced the NLTTA of 2000 and expanded on the
principle of the acceptance of negotiated contracts. Negotiated 3.3. The Moving South Africa (MSA) Strategy
contracts can now also follow a tendered contract, which was not
allowed under the 2000 act. It also spelled out clearly that public The main recommendation of the strategy pertaining to trans-
transport should be devolved to the lowest effective level of port in South Africa, and by definition commuter rail commuter
government e the metro and local government levels. In addition, services, is that transport corridors should be densified; that there
it created new institutional structures applicable to the licensing of should be an optimisation of modal economics and service mix e
operators (permits), long distance passenger transport and best cost/service trade-offs for each corridor through encourage-
requirements for integrated public transport plans. ment of differentiated public transport services; and, improving
Progress with policy thrusts regarding commuter buses and firm level performance by creating competition within and
taxis will be highlighted later in a later section. between modes through tendering/concessioning (e.g. rail) of
services to private sector operators (MSA, p. 136).
3. Policy framework: rail based commuter transport
3.4. National Land Transport Transition Act
Commuter rail services are operated by Metrorail (previously
within the Rail Commuter Corporation and today a division of Similar to road-based public transport, the act makes provision
PRASA) in the Western Cape (Cape Town), Eastern Cape (Port for the inclusion of rail services in the development of transport
Elizabeth), KwaZulu Natal (Durban/Pietermaritzburg) and Gauteng plans. In contrast to the approval process of such plans for road-
(the greater Johannesburg and Pretoria areas). A total of 2.2 million based modes, the act stipulates that until the rail function is
passenger trips are operated daily Monday to Friday (PRASA & 2010, devolved from the national to another level of government, the
p. 12) making it the third largest public transport operator in SA. plans had to be submitted to the Minister of Transport for approval
The policy framework for commuter rail services in the country of the commuter rail components of the plan. To date the function
is depicted in Fig. 2: has not been devolved to a lower level of government, and
commuter rail remains a national government competency.
3.1. The Legal Succession to the South African Transport Services Act
3.5. The National Railway Safety Regulator Act
This act made provision for the establishment of the South
African Rail Commuter Corporation Ltd, a company wherein the Prior to the establishment of the act, safety issues were
state was the only shareholder and member of the company. managed by Transnet, the national rail operator, previously known
as South African Transport Services, as well as Metrorail as the
3.2. The White Paper on National Transport Policy operator of commuter rail services. The act established an inde-
pendent Regulator to oversee safety in the railway transport
The White Paper confirmed that the national transport industry and to promote the use of rail as a mode of transportation
authority (DoT) would own the commuter rail infrastructure, roll- through improved safety performance of the industry. It was tasked
ing stock and land associated with rail reserves until the provincial with drafting regulations in compliance with the act and to monitor
or metropolitan transport authorities (TAs) were in a position to and ensure compliance with the act.
take over the responsibility. It was also foreseen that operating and
maintenance concessions would be awarded by the TAs, initially 3.6. National land transport framework
nationally, and later at the provincial or metro levels of govern-
ment. It also foresaw the abolishment of the deficit form of This framework provides policy and strategy guidelines for a five
financing (deficit subsidies) and the replacement of it with year forward-looking period (2006e2011). In terms of rail services,

Fig. 2. Policy framework for rail commuter services.


38 J. Walters / Research in Transportation Economics 39 (2013) 34e45

the DoT envisaged significant rail capability enhancements in order  “Service levels to be improved with increased frequencies and
to better manage the rail function. It also foresaw the completion of reliabilities
a National Rail Plan and for significant implementation of the plan  Improved rail infrastructure, including the removal of capacity
to occur over the five year period. This would require the identifi- limiting bottlenecks
cation of priority rail corridors through a rail network classification  Improved signalling capacity
system, the upgrading of infrastructure and service levels on the  Enhanced levels of security and accessibility associated with
key corridors e.g. rolling stock, security and station improvements the station precincts with the A and B corridors
and improved infrastructure condition. Measures would also be  The refurbishing of 2000 rail coaches by 2010”
taken to reduce levels of fare evasion on the priority corridors.
A summary of the rail priority corridors, where 61% of the A and
3.7. The National Rail Plan (NRP) B corridors are supportive of public transport strategy, is set out in
Table 1.
The principal objective of the National Rail Plan is to secure the It can be seen that 61% of the corridors identified (or 22 in
future of commuter rail in South Africa by applying a priority corridors in total) were grouped in the A and B categories and 39%
corridor strategy to the rail network in each of the regions. Through (or 14 corridors) in category D. In terms of the NRP the “D” corridors
a series of regional rail plans (provinces where commuter rail is no longer warrant commuter rail services.
offered), the NRP seeks to find clarity in the role that commuter rail
should play in the context of an integrated approach to public 3.9. Legal Succession to the SATS Amendment Act
transport service provision (South African Rail Commuter
Corporation/Metrorail. National Rail Plan: i). Emphasis is also put One of the main purposes of the amendment of the act was to
on regions adjacent to metropolitan areas currently served by rename the SARCC to the Passenger Rail Agency of South Africa
commuter rail, as well as other urban areas and provinces such as (PRASA) and to expand its mandate to also include long distance
Limpopo and Mpumalanga where there are at present no passenger rail and bus services within, to, and from the RSA. The
commuter rail services. long distance passenger and rail services had to be transferred to
In each region, corridors were allocated A, B, C or D, based on the PRASA from Transnet by the end of March 2009.
level of service appropriate to the travel corridor of which rail is
a part. “A” represents corridors where much higher levels of service
than at present are warranted, and “D” corridors those where there 3.10. National Land Transport Act
is no longer a case for providing commuter rail services.
In addition to the information supplied in the previous section
regarding the NLTA, the act makes provision for the rail function to
3.8. Public transport strategy and the public transport strategy
be devolved to the municipal level where such municipality would
action plan (2007)
plan for rail services on a corridor network basis in consultation
with PRASA. This function, although nationally planned at this
The two key thrusts of these strategies (Department of
stage, can be requested by a municipality subject to an acceptable
Transport, 2007a, 2007b) applicable to commuter rail pertains,
Integrated Transport Plan. At this stage no municipality has
firstly, to accelerated modal upgrading; the consolidation of the
requested the function.
passenger rail sector; the roll-out of the National Rail Plan in the
short to medium term and, secondly, Integrated Rapid Public
Transport Networks (IRPTNs) with the aim to have a phased 4. Current state of commuter rail in the country (services
operational implementation of these networks in place in twelve managed by PRASA)
cities and at least six rural districts by 2014. The latter thrust could
also be more widely interpreted as to investigate new rail possi- The commuter rail section of PRASA (Metrorail) owns 317
bilities and even the establishment of rail services where the need stations (but operates 468 stations) and provides rail services on
may arise. 3180 of single km track. It has a fleet of 406 train sets of which 97.5%
In terms of the Public Transport Action Plan Phase 1: 2007e2010 were built between 1958 and 1985. The majority of the rail fleet
(Department of Transport, 2007b, p. 19) the target to implement the technology dates back to the 1950s (PRASA Corporate Plan, p. 10).
rail corridor strategy was to implement the Rail Priority Corridors A Currently, 65e70% of the resources required to operate the rail
and B in the applicable cities during the period 2007e2010. It was function come from Government in the form of deficit subsidies
also envisaged that by the end of 2010 the services had to be while the balance comes from internally generated free operating
improved in the following ways: cash-flow (PRASA Corporate Plan, p. 8).

Table 1
Priority rail corridors.

Regions Corridor Total % Total Corridor definitions


A&B

A B C % A Ideal corridor for rail, high quality service


Gauteng (Johannesburg and Pretoria area) 7 7 6 20 56 70 B Important role for rail, 2000 service levels
Western Cape (Cape Town) 3 3 2 8 22 75 C Role of rail uncertain, investigation required
KwaZulu Natal (Durban/Pietermaritzburg area 1 0 5 6 17 17
Eastern Cape (Port Elizabeth) 1 0 1 2 5 50
Total 12 10 14 36
% 33 28 39 100
% (A D B corridors) D C 61 39 100

Source: PRASA Corporate Plan 2009/10e2011/12:19.


J. Walters / Research in Transportation Economics 39 (2013) 34e45 39

During the period 2007e2010 government made available R 25b


(or about US$3.33b at R 7.50/US$) for the stabilisation of PRASA and
a turnaround strategy. This figure included an operational subsidy
to the value of R 9.9bn, capital investment of R 14.7bn for the
business, R 7bn for the refurbishment of 2000 rail coaches, R 1.4bn
for the procurement of new buses, infrastructure upgrades to the
value of R 2.6bn, and planned signalling upgrades at major stations
to the value of R 1.5bn (PRASA Leaflet: Our Positive Future).
At a recently organised (2011) DoT International Transport
Investors Conference held in Cape Town, where the DoT showcased
transportation infrastructure projects which may attract private
sector capital, PRASA highlighted the following potential projects
for financing: the Cape Town Airport Rail Link; the Moloto Rail
Corridor (north of Pretoria); the Bloemfontein e Botshabelo
Passenger Rail Corridor; the Bara Rail Link (Gauteng); The Moth-
erwell Rail Link (Port Elizabeth); the Daveyton Rail Extension
(Gauteng) and the re-introduction of the Hammanskraal Rail Link
north of Pretoria (van der Walt, 2011).
Fig. 3. Gautrain route map. Source: van der Merwe (2011).
In terms of its ageing rolling stock, PRASA mentioned that it was
busy with a feasibility study to replace 8600 rail coaches with new
rolling stock over an 18 year time frame. A transaction adviser for Currently there are 24 Electrostar train sets manufactured by
the project was appointed and it was estimated that the rolling Bombardier. The train sets operating to the airport differs from the
stock renewal programme would cost about R 86b over the 18 year normal commuter sets as provision is made for luggage capabilities
period. It was estimated that a Request For Proposals (RFPs) would on the airport services. The current frequency is between 10 min
be issued by mid-2012 (van der Walt, 2011). and 30 min with the latter mainly applying to weekend services.
Some of the challenges faced by PRASA are detailed in its The initial operating hours is from 05:30 to 20:30.
Corporate Plan 2009/11e2011/12 (PRASA Corporate Plan, pp. A significant bus feeder and distributor system supports the rail
21e28): service to and from stations. An example of the feeder system is
included in Fig. 4:
 Consolidation/Turnaround/Restructuring processes. The feeder and distribution system is operated with 125 buses
 Change management e consolidation of five organisations into operating 36 feeder and distribution routes spanning 420 km. The
a consolidated organisation (Metrorail (commuter rail); Auto- Gautrain service operates every 12e30 min generating about 2200
pax (consisting of Translux and City to City long distance bus bus trips per day and over 26 000 daily operating kilometres. The
services); Shosholoza Meyl (long distance passenger rail service complements existing bus services in the various metro-
services) and Intersite Property Services. politan areas (Dachs, 2011).
 Sustainable funding. The project is one of the largest PublicePrivate-Sector-
 Ageing rolling stock and infrastructure. Partnership (PPP) concession projects of its kind in Africa. The
 Human capital development. concession is for 20 years for the design, build, part-finance and
 Leadership and skills development e shortage of key skills as operation of the system. The Bombela Consortium1 manages the
well as a lack of depth in skills client interface with the Gauteng Provincial Government and
 Rail technology development e “catch up” with new technology. provides an integrated solutions approach for the PPP (http://www.
 Long term planning alignment e road, rail and land. gautrain.co.za/about/about-gautrain/concessionaire/). The esti-
 Strategic partnerships e national alliances and strengthening mated value of the project at completion was R 25.4bn or
relationships (nationally and internationally). US$3.39bn at an R 7.50/US$ exchange rate (Engineering News,
 Modal integration e poses internal and external challenges. 2009).
Gautrain has five sources of funding (van der Merwe, 2011):
5. The Gauteng high speed rail service (gautrain)
 The Division of Revenue Act e which enables funds to flow
The need to establish a high speed rail service between the from Central Government via the Department of Transport
metropolitan area of Tshwane (which includes Pretoria), Johan- (44.2%) to the Gauteng Province.
nesburg and Oliver Tambo International Airport (South Africa’s  The Medium Term Expenditure Framework from the Gauteng
main international air hub) has been a point of discussion for many Provincial Government (26.1%).
years. The project was meant to speed up the travel time between  Private sector equity (1.8%).
Tshwane and Johannesburg, a notoriously congested freeway link,  Private sector borrowing (9.5%), and
thereby enticing car users to make use of the rail service instead.
As the airport is some 20 km from the CBD of Johannesburg and
about 40 km from Tshwane, a link to the airport was also built into 1
The Bombela Consortium Concession Company Shareholders consist of:  Murray
the project as it is expected that the airport would in future become
& Roberts Limited e a leading South African engineering, construction and con-
significantly busier. The system consists of 10 stations and 80 km of tracting services company.  Strategic Partners Group (SPG) e a 25% shareholder in
railway lines (of which 15 km are underground) linking the three the Consortium.  Bombardier UK e a Canadian company and world leader in the
nodes (see Fig. 3). aerospace and rail transportation sectors.  Bouygues Travaux Publics e one of the
The Gautrain system interfaces with Metrorail commuter rail world’s top global “design and build” civil engineering and building contractors with
extensive experience in concession projects.  The J&J Group e an investment holding
services at Hatfield Station, Pretoria Station, Rhodesfield Station company with more than 200 000 shareholders representing individuals and their
and Johannesburg Park Station. The maximum speed of the system families.  ABSA Capital, a division of Absa Bank Ltd (subsidiary of Barclays Bank PLC).
is 160 km/h and operates on standard gauge. Source: http://www.gautrain.co.za/about/about-gautrain/concessionaire/.
40 J. Walters / Research in Transportation Economics 39 (2013) 34e45

Fig. 4. Sandton Station: feeder and distribution routes (OCD 2). Source: http://www.iweek.org.za/wp-content/uploads/2011/05/Gautrain-BusRoute.pdf.

 Provincial borrowing (18.4%). competitive tender. As an interim measure, it will enter into
negotiated contracts with incumbent operators for a period of up to
The project has a patronage guarantee of R 360m per annum for 12 years. Requirements to enter into such agreements may involve
the concessionaire (Dachs, 2011). set-asides for the taxi industry as well as small bus operators that
In terms of the concession agreement, the concessionaire takes have not yet participated in the subsidy system. It is also
all completion and integration risks, offers a fixed price for the a requirement that such contracts should be entered into based on
project, fixed specification and fixed time frame (turnkey contract). approved Integrated Public Transport Plans.
The concessionaire is fully involved in the operation and mainte- As mentioned earlier, a major impasse has been reached
nance of the system for the entire concession period. At the end of regarding competitive tenders mainly due to organised labour’s
the concession the concessionaire has to hand over the system to opposition to the tendering system and concerns about the
the client in a prescribed condition. potential costs of the system. At issue is the impact of competitive
The Sandton/Airport link was operationalized just before the tenders on employment levels, labour wages and benefits, and the
Soccer World Cup event in SA in 2010, and the remainder of the lack of continuity of employment. In this regard the last competi-
network opened in August 2011, excepting for a part of an under- tively tendered contracts were concluded in 2002. Since then most
ground section between the Johannesburg Park and Rivonia of these contracts have expired, and almost all operators are
stations where water seepage and sub-surface water issues are operating on short term contracts e from month to month or
currently being addressed. slightly longer. Since 2002 a few negotiated contracts were
The project is not without criticism. Opponents were of the view concluded. Government has indicated that it would negotiate all
that the project is “elitist” as it was meant to relieve the congestion contracts in the next round of tenders to avoid the issues that
on the highways around Gauteng (between Tshwane (Pretoria) and labour has with tendered contracts. This will probably allow suffi-
Johannesburg and the airport). These users were considered to be cient time to solve the remaining issues that labour has with the
already “mobile” through the use of their cars and now had the tendering system.
luxury of a choice of modes. Opponents were of the opinion that the All new contracts ought to be based on Integrated Transport
value of the project would have been much better spent, and Plans (ITPs). ITPs involve all public transport modes erail, buses and
reached many more potential users, should the funds have been taxis. These plans are currently being updated, and once completed
spent on the existing commuter rail services in the country. These should result in a wave of negotiated contracts being concluded.
services generate about 2.2 million passenger trips per day where it Should negotiations with operators not be successful, services will
was estimated that the Gautrain would generate about 120 000 be put out to competitive tender for a period of seven years.
passenger trips per day by 2010 (http://www.gautrain.co.za/about/ Table 2 sets out the current state of contracting in South Africa.
services/ridership-fare-structure/). Some of the challenges faced by the commuter bus industry and
which impact policy implementation are the following:
6. Commuter bus transport
 Lack of funds to adequately fund road-based public transport.
An overview of the policies, strategies and legislation applicable  Inadequate cost indexing in existing contracts e especially
to the commuter bus industry was provided earlier in the paper. problematic over longer term contracts.
This section considers the latest developments regarding policy  Organised labour opposition to competitive tenders.
implementation, and also highlights some issues that the industry  The slow progress with the development/revision of Integrated
is concerned about. Transport Plans.
The government policy is, and remains, that subsidised  Lack of managerial and implementation skills/capacity at the
commuter transport, now and in future, should be put out to provincial and local levels of government.
J. Walters / Research in Transportation Economics 39 (2013) 34e45 41

Table 2
Contracts in place in South Africa.

Type of contract Number of buses Contract characteristics Duration


Interim contracts þ/ 3849 (68% of Foreseen as transition arrangement in 1997 1e3 Years originally.
sub budget) In practice some interim contracts are 15 years old
Tendered contracts þ/1834 Based on standard contract document 5 Years originally.
(28% of subsidy Mostly “stand alone” services in rural/urban Contracts are being extended to 7 years
budget) operations New contracts to be 7 years.
Most contracts are currently on a month-to-month basis.
Negotiated contracts 250 Mostly applicable to state-owned and operated 5 Years originally.
bus companies e form of privatisation New contracts to be 7 years.
Some contracts on a month-to-month basis
Sale of bus entity through 1050 Applicable to bus operations owned by local and Contracts are 5 years in duration.
negotiation based on service provincial governments New contracts to be 7 years.
contract specification (form Implemented in the City of Durban (June 2003) and
of privatisation) North West Province (January 2004).

Source: Compiled by the author for the purpose of this paper (SABOA and DoT sources) (2006 data).

 Lack of properly capacitated institutional structures to imple- 7.1. Rea Vaya: Johannesburg
ment PT policy.
 Institutional complexities between National, Provincial and Plans are to introduce 325 km of BRT routes and 30 interchange
Local government (concurrent functions i.t.o. the RSA nodes in the Johannesburg area. Phase one of the system consisting
Constitution). of 122 km of routes was approved by the Johannesburg Metro
 Complexities of integrating the minibus taxi industry and the Council in 2006 (Seftel, 2011). The envisaged Rea Vaya BRT
commuter bus industry in one service design. network, when fully implemented is depicted in Fig. 5 and consists
of a number of phases.
7. Modal overview: bus rapid transit (BRT) systems The intention of the Johannesburg Metro (and supported by
government policy and strategies) was to incorporate the taxi
The introduction of BRT systems in the country was officially industry in the BRT, as the sole operator (there were no bus services
sanctioned in the DoT Public Transport Strategy and the Public on the route) on the Phase 1A route. The Johannesburg Metro
Transport Strategy Action Plans of 2007. These documents spell out therefore was one of the first Metros to engage the taxi industry in
government policy and strategy and provide guidelines for the a new business model that would manage the BRT route. Major
introduction of the systems in SA. Amongst other, guidelines are difficulties were however encountered to get the taxi industry to
spelled out on how to deal with existing operators on routes “transform” from an informal business to a formal business. Taxi
affected by the introduction of BRT systems. owners and their drivers were (amongst other) concerned about
At present two systems are in operation e the Rea Vaya system their future earnings, the loss of revenue as their taxi vehicles had
in Johannesburg and MyCiTi in Cape Town. A number of other to be removed from the route, the potential job losses, the
metro governments are planning systems, such as in Durban, Port complexities associated with a “formal” business etc. This led to
Elizabeth, Pretoria and Brits (west of Pretoria). protracted negotiations and many acrimonious meetings.

Fig. 5. Long term network proposed for Rea Vaya BRT in the greater Johannesburg area. Source: Seftel, 2011.
42 J. Walters / Research in Transportation Economics 39 (2013) 34e45

The Metro was however under pressure to have the first phase companies directly impacted by BRT route proposals. This could
of the service up and running by a certain date (a financial prove to be unmanageable.
requirement) and services began operating before agreement could
be reached with the taxi industry to buy into and manage the BRT
7.2. MyCiTi: Cape Town
system. In this regard the city initially signed a 12 year contract
with Clidet, an interim company owned by the BRT Systems Trust.
The MyCiTi BRT in Cape Town (or Integrated Rapid Transit as it’s
Clidet signed a management contract with Metrobus (the munici-
referred to in Cape Town) is a 15 year project to establish BRT
pally owned bus company) to manage the bus operating company
systems in the city area. The inner-city distribution service linked
in the interim whilst negotiations were still on-going with the taxi
the World Cup stadium in Sea Point area (to the west of the Cape
industry. After the Metro reached an agreement with the taxi
Town CBD) during the World Cup in 2010. A shuttle service links
industry to take over and manage the BRT, Clidet passed a resolu-
the Cape Town station to the Cape Town International Airport.
tion on 31 January 2011 to transfer the Clidet shares to the new
The most recent phase of the BRT was launched in May 2011 e
shareholders of the bus operating company consisting of taxi
the West Coast corridor between Table View and the Cape Town
industry role players (Ndebele, 2011).
CBD. This service is shown in Fig. 7.
The service is operated on a 12 year contract by the bus oper-
The entire service is supplemented with an extensive bicycle
ating company (valued at about R 184m per year) consisting of nine
route network and links existing bus, taxi and rail services. The
Taxi Operator Investor Companies (TOICS) who are taxi operators
interim inner-city feeder route between Gardens, the Civic Centre
affected by Phase 1A (Ndebele, 2011). Over 300 taxi owners owning
and the Cape Town Waterfront also began operating recently. The
about 550 taxi vehicles contributed R 54 000 equity derived from
business model included operators affected by the BRT. The market
the sale or scrapping of their minibus taxis in exchange for one
share model was based on passenger trips, passenger km gener-
share in the bus operating company (Seftel, 2011). The BOC was
ated, fare revenue and profits. The outline of the business model is
renamed PioTrans as from 1 February 2011 and operates in part-
depicted in Fig. 8 with the future systems plan in Fig. 9.
nership with an experienced South American (Columbian) BRT
operator, Fanalca (Rea Vaya, 2011).
Phase 1A from Soweto, a large township south west of Johan- 8. Modal overview: commuter taxi industry
nesburg, to Ellis Park on the north eastern side of the Johannesburg
CBD, has been operating since August 2009 and transports about In South Africa, the dominant public transport mode is the 16-
30 000 passengers per day over the 25.5 km of dedicated roadway, seater minibus taxi. These services had their origin after a 1985
33 stations and 146 Euro 4 buses (Seftel, 2011). White Paper on National Transport Policy where the services were
Fig. 6 shows the Phase 1A route. “legitimised”. This led to the rapid growth of the industry at the
Phase 1B construction is nearing completion and the expecta- expense of the formal commuter bus and rail industries. Today, it is
tion is that this phase will be operational during the first quarter of estimated that about 65% of all commuter trips take place in taxis,
2012. In contrast to the first phase, this phase impacts existing bus although the figure varies depending on local circumstances (Arrive
operators that will have to be accommodated in the business model Alive, 2011a). Table 3 provides a statistical overview of the taxi
to manage this section. These discussions have been very pro- operating sector:
tracted. Major issues were encountered in determining market The industry is regarded as a prime example of Black Economic
shares of the respective modes (buses and taxis), the sharing of Empowerment in the country, in particular small black business.
financial risk versus market share, expertise to manage the system The industry is largely unregulated, although route associations
etc. control access to routes and the associated associations. This has,
One of the criticisms of the current Metro approach is that it especially in the past, led to major rivalry among operators, often
appears as if each new section will demand a new round of nego- leading to bloody battles, deaths and injuries.
tiations. As the entire network is being rolled out section-by- It is estimated that there are between 120 000 and 140 000 taxis
section, this could mean that a host of operating companies will in the country with the largest concentrations in urban areas. There
have to be established to manage the system, eventually leading to is little effective governmental control over the industry by ways of
operational, integration, systems efficiency and managerial issues. fares (the market and intensity of intra- and inter-modal compe-
It should be remembered that there are a host of taxi operators tition determines fare levels), and the effective enforcement of road
operating sections of the route compared to only a few bus traffic laws governing vehicle road worthiness, driving techniques.

Fig. 6. Phase 1A route of the Johannesburg BRT. Source: www.reavaya.org.za/images/stories/2010/transportfor2010/routes.


J. Walters / Research in Transportation Economics 39 (2013) 34e45 43

Fig. 7. Map of the MyCiTi West Coast corridor route and picture of the route as seen from the Gardens area towards Cape Town. Map source: Fortune, 2011. Picture source: Fortune,
2011.

The industry is also criticised for its poor safety record e a point companies in the subsidy system (tenders), the BRT developments
that was mentioned in the National Household Travel Survey. in the country, and promises of taxi industry subsidies.
Government has been engaging with the taxi industry through
its representative structure SANTACO (South African National Taxi
8.1. The taxi recapitalisation programme
Council). This institution was formed by the DoT in 2001 to enable
government to engage with the taxi industry in a single national
The government’s aim is to formalise the taxi industry through
forum. This specific aim has largely been achieved although there
an R 7.7bn taxi recapitalisation programme (Arrive Alive, 2011a)to
are a number of large associations not affiliated with SANTACO. In
assist the industry to replace ageing and unroadworthy taxis, and,
addition, the DoT established a National Joint Working Group
eventually, to make it part of the overall public transport solution
(NJWG) to deal with matters such as the taxi recapitalisation pro-
through its envisaged involvement in ITPs. The governmental
gramme, taxi subsidies, legislation, regulation and enforcement. It
assistance is in the form of a once-off capital subsidy where, irre-
also deals with enterprise and skills development, communication,
spective of the condition of the vehicle, government will
stakeholder management, the BRT systems, and Integrated Public
compensate the operator R 57 400 to use as a deposit on a new
Transport Networks (South African Government Information,
2010).
In an effort to address the financial viability of the industry, and
to improve its service levels, a number of governmental interven-
tions have been identified, the most visible being the taxi recapi-
talisation programme that began in 2006 (Department of
Transport, 2006). Other initiatives include the involvement of taxi

Fig. 8. MyCiTi business management model. Source: Fortune, 2011. Fig. 9. MyCiTi development phases. Source: Fortune, 2011.
44 J. Walters / Research in Transportation Economics 39 (2013) 34e45

Table 3 participated in the subsidy system, will be accommodated through


Taxi operating statistics. the designs of such contracts, based on ITPs, to favour the “most
 Number of people using taxi services each day: 14 millionþ appropriate mode of transport” for given circumstances. In prac-
 Number of officially registered minibus taxis on South African tice this would mean that on trunk and high density routes,
roads: 120 000þ especially in the peaks, buses would be specified in the contract,
 Average number of taxis per owner: 2
 Average number of hours taxi drivers spend daily on the road: 8.8
and on the less dense routes, during the off-peak and after hours/
 Number of days each taxi driver works per week: 6.33 late night services, lower capacity vehicles. The lower capacity
 Average monthly kilometres driven by a taxi: 8000 vehicles, i.e. taxis, would also be used as feeder and distributor
 Average number of passengers transported monthly per vehicle: 3161 vehicles to the trunk routes. Taxi cooperatives/companies would
 Average time spent daily in a taxi by a passenger: 65 min
also be encouraged to tender, or be involved in, the negotiations
 Average number of trips per passenger per day: 2.3
for traditional bus service contracts, and in doing so, exit the taxi
Source: http://www.ComutaNet.co.za as quoted by the Mercatus Policy Series.
industry, and participate in traditional larger capacity public
Policy Comment No 3. Taxing Alternatives: Poverty Alleviation and the South
African Taxi/Minibus Industry. Author: K Boudreaux, Senior Fellow, Mercatus
transport service provision.
Center, George Mason University, February 2006 page 6.
8.3. The involvement of the taxi industry in the formal public
transport system through BRTs
vehicle or to use the money to exit the industry (South African
Government Information, 2010). The vehicles that are traded in Two successful examples of the conversion from taxis to buses
(or handed in should the operator wish to exit the industry) are are the BRT systems in Johannesburg and Cape Town. Taxi services
physically destroyed to ensure that they do not re-enter the are predominantly short distance urban commuter services, mainly
industry. A special Taxi Scrapping Agency (the Taxi Scrapping concentrating on high density corridors. Many of these corridors
Administrator) was established by the DoT and has a presence in all have been identified for BRT services. Based on the 2007 DoT
nine provinces. To date (May 2007) more than 42 000 taxis have strategy documents discussed earlier (Department of Transport,
been scrapped and a total of R 2.13b paid out as compensation for 2007a, 2007b), it is evident that many taxi operators will be
these vehicles (Department of Transport, 2011). encouraged to participate in these systems in future. The challenge
The aim of the recapitalisation programme is to improve the remains to find acceptable business models to accommodate both
safety and reliability of the industry through the replacement of existing bus and taxi industry service providers.
older vehicles with new, higher quality, purposefully specified
vehicles; to reduce the number of vehicles to about 85 000 8.4. Taxi industry subsidies
(Walters, 2008); to ensure that the new vehicles meet the South
African Bureau of Standards safety requirements for instance, roll- The call to subsidise the taxi industry has come from various
over protection, brakes, tyre ratings, seating arrangements, and quarters over many years. The most vocal of these have been
safety belts (Arrive Alive, 2011b); to replace existing 16-seater SANTACO. Philip Taaibosch, the General Secretary of SANTACO is
vehicles with 18-seater as well as 18e35 seater vehicles; to quoted as follows: “.government subsidised other modes of public
address the economic sustainability of the industry, and to effec- transport in the country, such as rail and bus transport, but the taxi
tively regulate the industry. industry did not get any subsidy and was discriminated against
In order to qualify for the recapitalisation programme: despite transporting between 68 percent and 70 percent of
commuters daily” (Taaibosch, 2011).
 Taxi operators are required to convert their radius based The DoT has indicated that it was investigating the subsidisation
operating permits to route based operating licences (for of the industry but the funding constraints faced by government, as
existing vehicles as well as for replacement/recapitalization well as the difficulty in managing such a system among thousands
vehicles). of small operators, remain a challenge. Most of the effort in this
 To ensure that minimum wages are paid to drivers and other regard has been through developing enabling policy and strategy
employees working in the taxi sector. documentation, especially the model tender documents, the BRT
 To regulate driving hours. Drivers are allowed to work at most systems and statements that provision will be made in ITPs for the
48 h per week and must have at least 12 h a day and 36 taxis to participate in the formal public transport system. There
continuous hours of rest per week. have been calls for set-asides in the future contracts of up to 30% of
 To regulate leave conditions. the vehicle kilometres for the taxi and small bus operators. This will
 To ensure that operators have adequate passenger liability no doubt negatively affect the financial wellbeing of established
insurance. bus operators that will find it difficult to cut overheads in relation to
 To ensure that operators pay their income taxes. A tax clear- the proposed 30% cut in their services. It has however often been
ance certificate is required before operators may participate in stated by government that the intention was to expand the public
the scrapping allowance as part of the recapitalisation pro- transport services to accommodate the taxi industry and the small
gramme (Walters, 2007). bus operators, and that it would not be at the expense of existing
operators. In reality, the lack of sustainable funding and the total
8.2. The involvement of the taxi industry in the public transport sum available for public transport subsidies will most likely dictate
tender and contracting system the policy direction that the DoT will be following. In the urban
areas there are however significant rationalisation possibilities
Provision is made in the “model tender document”, a guideline among bus operators, Metrorail (where commuter rail services are
document developed by the DoT in consultation with provincial present) and the taxi industry. Most, if not all, of the present urban
departments of transport and the respective industries, for, among transport system design emanates from the days before 1994 and
other, the taxi industry to participate in the tender and contracting the transition to democracy. The envisaged ITPs will address these
system. Little progress has been recorded to date, but it is ex- inequities in favour of integrated and operationally optimised
pected that once negotiated contracts are entered into, the taxi public transport systems and should be ready for implementation
industry, as well as the small bus operators that have not yet in some metros as from 2012.
J. Walters / Research in Transportation Economics 39 (2013) 34e45 45

Some of the unintended consequences of a de facto deregulated Dachs, W. (2011). Address to the air/rail conference, Venice, October 2011.
Department of Transport. (2003). National household travel survey.
taxi industry include: infighting about routes; issues arising from
Department of Transport. (2007a). Public transport action plan, phase 1
taxi associations controlling routes and taxi ranks; road safety (2007e2010): Catalytic integrated rapid public transport network projects. March
issues; lack of long term economic sustainability; maintenance and 2007.
capital renewal issues; driver behaviour etc. Department of Transport. (2007b). The public transport strategy. March 2007.
Department of Transport. (2011). List of consolidated payments as at 28 July 2011.
Correspondence received from the DoT regarding the taxi recapitalisation
9. Conclusions programme.
Engineering News. (2009). Gautrain to cost extra R300m e van der Merwe. Avail-
able from http://engineeringnews.co.za/article/gautrain-to-cost-extra-r300m-
The public transport sector in South Africa faces major chal- van-der-merwe Accessed 21.11.11.
lenges. There is no lack of a holistic vision as to the role that public Fortune, G. (2011). Acting manager: IRT System Planning & Modelling. Cape Town
transport should play in the future of South Africa e this is evi- integrated rapid transit project progress Address to the SABOA annual conference.
Pretoria: CSIR, 24 February 2011.
denced in the many policy and strategy documents that have been Moving South Africa. (7 September 1998). Towards a transport strategy for 2020.
developed. The main problem is the lack of effective policy Report and strategic recommendations. Draft for discussion.
implementation, mainly due to a lack of sustainable funding to Ndebele, S. (2011). Minster of transport. Address during the handover to the taxi
industry shareholders of phase 1A bus operating company. 7 February 2011.
achieve the ambitious policy objectives; the huge financial Available from http://www.info.gov.za/speech/DynamicAction?pageid¼461&
demands to replace ageing bus, rail and taxi fleets; a lack of skills to sid¼16061&tid¼27748 Accessed 02.08.11.
effectively implement and monitor policy initiatives; the complex PRASA Corporate Plan. Connecting people, building communities. Final. 2009/
10e2011/12.
political and policy relationship between the three levels of
PRASA leaflet: our positive future. Employee version of the corporate plan 2011/
government dealing with public transport; complex intra- and 12e2013/14.
inter-modal negotiation processes where many of the discussions PRASA Publication. PRASA &2010.
are, and will be centred on, how to involve the informal taxi Rea Vaya. (2011). Piotrans is new bus company. Available from http://www.reavaya.
co.za/news-archive/news-2011/646-piotrans-is-the-new-bus-operator
industry and the many small bus operators in the formal subsidised Accessed 02.09.11.
public transport industry; significant migration to the cities from Seftel, L. (2011). Executive director: Transportation Johannesburg Metro. Overview
the poorer parts of South Africa as well as countries to the north of of progress with IPTNs with specific reference to the role of BRTs in IPTNs24
February 2011 Address to the SABOA annual conference. Pretoria: CSIR.
South Africa; the resultant spread of existing townships further and South African Government Information. (2010). Keynote address by the Minister of
further away from job opportunities and the concomitant compli- Transport Mr Sibusiso Ndebele, MP. In South African National Taxi Association
cations of offering extended public transport services to serve these Council (SANTACO) national conference. 4 May 2010. Available from http://www.
info.gov.za/speech/DynamicAction?pageid¼461&sid¼10392&tid¼1049
communities; and complicated labour arrangements that oppose Accessed 03.08.11.
certain policy thrusts such as the competitive tendering system. South African Rail Commuter Corporation/Metrorail. (2006). National rail plan
There is also mounting public pressure to drastically improve consolidation report. Final report. August 2006.
Taaibosch, P. (2011). Taxi group seeks equal subsidies. Business report. 14 February
public transport access, availability and safety, especially in the face 2011. Available from http://www.iol.co.za/business/business-news/taxi-group-
of the imminent introduction of expensive urban tolls on the seeks-equal-subsidies-1.1025 Accessed 19.11.11.
freeways surrounding and supporting the cities of Pretoria, van der Merwe, J. (2011). CEO: Gautrain Management Agency. In Address to the
international transport investors conference. Cape Town: Cape Town Interna-
Johannesburg and Cape Town, as well as persistently high fuel
tional Convention Centre, 13/14 June 2011.
costs. Opponents to the toll system argue that they have no choice van der Walt, D. (2011). General manager: PRASA. In Address to the international
but to use their cars to commute to and from work as public transport investors conference. Cape Town: Cape Town International Convention
transport is not regarded as a viable alternative to the car. Centre, 13/14 June 2011.
Walters, J. (2007). Overview of public transport policy developments in South
On the positive side there are encouraging signs that issues are Africa. In Thredbo 10 conference, Hamilton Island Australia. August 2007.
being addressed and progress made: major funding has been made Walters, J. (2008). Overview of public transport developments in South Africa.
available for the renewal of Metrorail rolling stock and infrastruc- Research in Transportation Economics, 22(2008), 98e108.
Walters, J., & Cloete, J. J. (2001) An evaluation of the tender for contract system. In
ture improvements; there are major investments in BRT systems e Thredbo 7 conference, Molde, Norway.
two of which are already operating and many more being planned;
the development of a BRT business model in Cape Town that List of abbreviations
involves both existing bus and taxi operators in the operation of the
BRT, and a business model that is emerging in the Rea Vaya Phase BOC: bus operating company
1B involving established bus companies, small bus operators and BRT: bus rapid transit
CBD: central business district
the taxi industry; the introduction of the Gautrain high speed rail DoT: Department of Transport (National)
service; a firm decision to speed up the public transport contracting HOA: Heads of Agreement
system through the introduction of negotiated contracts of up to 12 IC/ICs: interim contract/s
IRPTN/s: Integrated Rapid Public Transport Network/s
years (thus by-passing the labour issues related to the competitive IRT: Integrated Rapid Transit
tendering system), and the recapitalisation of the taxi industry ITP: Integrated Transport Plan
through the taxi recap programme e although behind schedule, LTA: Land Transport Act, 2009
MSA: Moving South Africa
more than 42 000 taxis have been part of the programme. NHTS: National Household Travel Survey
The key to future urban transport in South Africa is to be found NJWG: National Joint Working Group
in the implementation of ITPs that will, over time, integrate and NLTSF: National Land Transport Strategic Framework
NLTTA: National Land Transport Transition Act, 2000
coordinate public transport service provision. This is however,
NRP: National Rail Plan
a medium term process, and full implementation is not expected PPP: PublicePrivate Partnership
for many years to come. PRASA: Passenger Rail Agency of South Africa
RFP: request for proposal
RSA: Republic of South Africa
References SA: South Africa
SABOA: Southern African Bus Operators Association
Arrive Alive. (2011a). Taxi recapitalisation. Available from http://www.arrivealive. SANTACO: South African National Taxi Council
co.za/pages.aspx?i¼2407 Accessed 03.08.11. SPG: Strategic Partners Group
Arrive Alive. (2011b). Minibus taxis and road safety. Available from http://www. TA: transport authority
arrivealive.co.za/pages.aspx?i¼2850 Accessed 03.08.11. TOICS: Taxi Operator Investor Companies

You might also like