PUBLIC TRANSPORT, TAXI RECAPITALISATION PROJECT AND PUBLIC TRANSPORT SUBSIDIES
1 June 2004
CONTENTS
1. INTRODUCTION AND BACKGROUND INFORMATION
2. POLICY THRUSTS ON PUBLIC TRANSPORT
3. THE TAXI PROCESS
4. COMMUTER RAIL
5. BUS CONTRACTS
6. AN INTEGRATED PUBLIC TRANSPORT SYSTEM
1. INTRODUCTION AND BACKGROUND INFORMATION
The overarching objectives for a sustainable public transport system which contributes to the economic growth of our country are:
The White Paper on NationaI Transport PoIicy, 1996
The promotion of a safe , reliable, effective, efficient, co-ordinated, integrated, and environmentally friendly land passenger transport system in South African urban and rural areas, to ensure that people experience improving levels of mobility and accessibility.
POLICY THRUSTS
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.
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
The primary aim of the taxi recapitalisation project at conception was aimed at:
THE TAXI PROCESS
In 1996 The National Taxi Task Team (NTTT) was established constituted of Government officials, community Ieaders and members of the taxi industry to:
Findings of the NTTT broadly grouped into three main areas,
Viz:
PROGRESS MADE POST THE NTTT FINDINGS
On Regulation:
The National Land Transport Transition Act (NLTTA),2000
Special Legalisation Process (SPL) initiated to give illegal taxi operators an opportunity to legalize their operations provided they met certain basic requirements- the "Be Legal campaign" (BLC), closed on the 31st December 2002 as per MlNCOM resolution.
PROGRESS MADE POST THE NTTT FINDINGS
On Formalization:
On Economic empowerment:
THE TAXI RECAP TENDER
BACKGROUND
· 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 td monitor and control data collection, provide audit functionalities, effect modal integration.
· Cabinet approval - September 1999
· The dti issued request for proposals - November 1999
TAXI RECAP TENDER DELAYED
Due to:
PROGRESS MADE ON TAXI RECAP TENDER
The following progress has been realized:
The following progress has been realized
CHALLENGES FACING THE TAXI RECAP PROJECT
· The BAFO received is mandated for this project at a funding requirement level of R4 billion.
- 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
COMMUTER RAIL
· Commuter rail is operated by Metrorail on behalf of SARCC (an agency of the Dept.)
· Metrorail is a business unit of TRANSNET , reporting to the Department of Public Enterprise
· Dept has an MOU with SARCC and provides assistance in the form of subsidies.
RAIL FUNDING REQUIREMENTS
2004 /05 ‘000 |
2005 /06 ‘000 |
2006 /08 ‘000 |
|
Operational |
1 873 550 |
1973 843 |
2 092 274 |
Capital |
655 000 |
688 300 |
729 598 |
Total |
2 528 550 |
2 662 143 |
2 821 872 |
Operational Shortfall |
- |
162 491 |
196 631 |
CAPITAL FUNDING REQUlREMENTS
ROLLING STOCK
· NO INVESTMENT IN NEW COACHES SINCE 1988
· AVERAGE AGE OF FLEET 30 YEARS
· 4500 COACHES WITH A REPLACEMENT COST OF R 63 BIL
· 264 COACHES REFURBISHED in 2003/04
CAPITAL FUNDING REQUIREMENTS
Rolling Stock Age Distribution
Coaches [PMG note: Graph Not Included]
BUS CONTRACTS
· Interim contract - untendered contract between the DOT and the operator
· Tendered contract - contract awarded by a tender board between DOT and the operator for the provision of public transport service
· Negotiated contract - Minister empowered by the NLTTA to negotiated contracts with the operator rather than tender contracts.
AN INTEGRATED PUBLIC TRANSPORT SYSTEM
The National Travel Survey Surveyed 50 000 households
PROGRESS REPORT: BUS CONTRACTS
· Tendered contracts - 58
· Negotiated contracts - 2
· interim contracts - 34
BUS SUBSIDY DISTRIBUTION
· There are 10100 commuter buses (excluding municipal and long distance buses)
· Approximately 7500 buses are currently subsidized
· Approximately 2600 are unsubsidized
· Approximately I .8% of the population was subsidized in the 2001/02 financial year
· On average passengers received R198 in subsidies per month = 6.7% of the average household income
BUS SUBSIDY DISTRIBUTION
PROVINCE |
2001/2002 |
2002/2003 |
2003/2004 |
2004/2005 |
Eastern Cape |
65,398,919.11 |
62,000,000.00 |
66,733,762.77 |
82,351,819.96 |
Free State |
94,729,760.92 |
96,000,000.00 |
112,679,495.81 |
116,665,078.28 |
Gauteng |
672,757,268.44 |
723,000,000.00 |
781,134,577.90 |
790,788,630.14 |
Kwazulu-Natal |
379,945,998.57 |
379,742,000.00 |
448,295,115.14 |
446,653,044.03 |
Mpumalanga |
157,035,418.76 |
162,000,000.00 |
190,112,148.87 |
211,475,250.49 |
Northern Cape |
9,901,770.94 |
12,000,000.00 |
13,187,493.34 |
14,411,568.49 |
North West |
46,837,580.53 |
40,000,000,00 |
24,069,272,94 |
39,064,324.85 |
Limpopo |
61,305,657.84 |
72,000,000.00 |
73,006,134,96 |
83,935,508.81 |
Western Cape |
226,883,624.91 |
260,000,000.00 |
334,781,998.27 |
372,694,774.95 |
1,714,796,000.02 |
1,806,742,000.00 |
2,044,000.00 |
2,158,040,000.00 |
BUS SUBSIDY DISTRIBUTION
[ GRAPH NOT INCLUDED]
PROMOTION OF BEE : ROAD BASED P/ TRANSPORT
· Provinces to set aside a minimum of 30% of services to be contracted to companies with at least 50.1% PDI equity
· Remaining 70% of services a minimum of 35% PDI equity ownership required
· 10% subcontracting of the remaining 70% services to SMME / PDIs
QUALITY MANAGEMENT
· A National Supervision and Monitoring team is in the process of being appointed
· Subsidy Management System is being rolled out in all provinces on the National Transport Register
AN INTEGRATED PUBLIC TRANSPORT SYSTEM
Rationale for Subsidy |
Targets for redistribution |
Spatial allocation |
Mode to be subsidized |
|
Equity Distance Affordable |
Workers Job seekers Learners Poorest Needy Disability |
Densification Urban Rural |
Rail Business Taxi |
AN INTEGRATED APPROACH TO PUBLIC TRANSPORT
[PMG note: GRAPH NOT INCLUDED]
THANK YOU