10 June 1998
The Minister of Transport Mac Maharaj announced today that three consortia have been shortlisted for R3-billion, six-year contract for the provision of transport services to five national departments. The three consortia are:
Imperial Holdings Ltd who has bid as a single entity to provide the entire service in-house, with the use of subcontractors where necessary. The financing for this consortium is to be provided by their internal financing division, Imperial Bank.
Newco, a consortium headed by the black empowerment concern Peu Investments Group, who have a 51% majority share holding, is to be funded through Lease Plan Fleet Management and Stannic, with individual services to be provided by Alisa Car Rental (Hertz), Rent-A-Bakkie, Kempston Investments and Fastfleet Vehicle Leasing (Telkom).
Auto fleet services (pty) ltd heads the consortium bid and is supported by Avis Holdings, with the following subcontractors; Sizwe Car Rental, Avis Rent-A-Car, McCarthy=s Motor Holdings, Supergroup Trading, Professional Risk Services and Forbes Financial Services. Financing for this consortium will be done jointly through Avis Holdings and First National Bank.
The winning consortium will provide for the transport needs of the national departments of Transport, Labour, Correctional Services, Health and Water Affairs and Forestry.
Minister Maharaj said the decision to outsource part of government=s needs for motor transport was driven by Transport policy to introduce competitive practices that would also ensure government got value for money.
The evaluation process identified bidders who had the financial and technical capacity to deliver a service of this size and undertook a relative assessment of the tenderers understanding of, and approach to, the proposed contract.
The shortlisted consortia will be invited to make formal bids. The contract will be awarded in September to a single supplier for the provision of transport services to the five departments for a six-year period with an annual value of R500 million. The winning consortium is expected to start operations in October this year.
The outsourcing of this contract in only one part of the Department of Transport=s proposals to make the provision of government transport more effective and efficient. The department is also revising the subsided car system to government employee to allow for a greater private sector involvement.
Issued by Didi Moyle: PA and Media Liaison Officer to the Minister of Transport