Rea Vaya - Taxi industry poised to own Rea Vaya

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February 2010

Taxi industry poised to own Rea Vaya

Monday, 15 February 2010

IN THE NEWS A media briefing by members of the taxi steering committee

Talks are going well between the City and affected taxi operators, who will become beneficiaries and shareholders of the operating company.

THE Rea Vaya Bus Rapid Transit (BRT) system is set to affect the taxi industry positively as affected taxi operators are on the brink of becoming the owners and operators of the first contracted bus operating company.

Rea Vaya began operating on 30 August 2009 through a Special Purpose Vehicle Company, which was structured by the bus financiers in anticipation of the completion of negotiations with affected taxi operators.

Agreements are reached

Rehana Moosajee, the member of the mayoral committee for transport, said on 10 February: “I am pleased to announce that the negotiations in this regard are going well. Last month, a Participation Framework Agreement was signed which sets out how operators who are affected will become beneficiaries and shareholders of the new bus operating company.”

Between October and December 2007, numerous agreements and memorandums were signed between the City and the taxi industry, comprising the Top Six Taxi Association, the Greater Johannesburg Regional Taxi Council (GJRTC) and others.

These memorandums confirmed a joint understanding, discussions and future co-operation on the BRT between the parties involved. At the time, Eric Motshwane, the chairman of the GJRTC, acknowledged that the transformation of the taxi industry was “not an easy task”.

“Meaningful and effective transformation of the public transport industry requires the readiness of all role players to actively engage and contribute in this regard.”

It would be very difficult to improve and grow the sector as part of the community if the taxi industry was not willing to listen to alternative business-related proposals, he said.

Also during that time, Executive Mayor Amos Masondo said: “The City of Johannesburg recognises the centrality of the transport system to our economy in general and the role that the taxi industry plays in economic growth and development.”

Before the launch of Rea Vaya, additional negotiations took place with the help of the Taxi Industry Negotiation Team, representing the organisations of WATA/JTA, STS, Nanduwe, MDN, Diepmeadow, Dorljota, Bara-City, Noordgesig and JSSTA.

The Participation Framework Agreement signed in January sets out how, through a Bus Operating Contract, the bus operating company will operate services prescribed by the City. It has a number of innovative clauses, including penalties if any bus drivers do not drive safely or if buses are not regularly cleaned and maintained.

The fee per kilometre that the company will be paid for operating Rea Vaya will be up for negotiations this month; thereafter a final agreement will be signed.

On 10 February, Moosajee said: “The City is also discussing with the negotiating team of affected operators a smooth transition and hand over period once agreement has been reached to ensure an ongoing level of services, especially as we introduce new routes and provide a service during the 2010 FIFA World Cup™.”

Related stories:

Swapping one wheel for another
Negotiations on track

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