The MyCiTi bus service is Cape Town's biggest black economic empowerment (BEE) project, mayor Patricia de Lille said on Wednesday.

"To date, the MyCiTi project has seen an overall investment of R6.5-billion by the city as part of our commitment to infrastructure-led growth," she said in a speech prepared for delivery.

The city was celebrating the launch of the latest bus route, the N2 Express service, linking Khayelitsha and Mitchells Plain to the city.

De Lille said the service was an example of a smooth and successful industry transition.

Positive relationships had been formed with the Congress for Democratic Taxi Associations and the Route Six Taxi Association.

The two bodies had formed a vehicle operating company with Golden Arrow Bus Services and signed a three-year contract, worth around R300-million, with the city to run the service.

By September, 88 former taxi drivers would be trained for the N2 Express service. The drivers would have fixed employment benefits such as medical aid, pension, and leave.

De Lille said commuters had welcomed the dedicated route to the city.