24 January 2000
Issued by: GCIS
Government's R3 billion plan to facilitate the development of South Africa's taxi industry into a safe, affordable and sustainable mode, will start becoming a reality this year after all interested and affected parties have had an opportunity to have a say in the products that will replace existing taxis over a period of four years.
This will happen by way of a special exhibition of a selection of vehicles that the shortlisted contenders for the manufacturing contract, to be staged at the Kyalami Exhibition and Conference Centre at the Kyalami Race Track, north of Johannesburg, on 27 and 28 January. The open days follow a special plenary session in which the vehicle proposers, taxi associations and Government departments will participate in on the preceding day, 26 January.
On the two open days visitors will be allowed free entry to the exhibition to view, participate in evaluation drives and finally to voice their opinions on which the final choice will be based.
The culmination of the Taxi Recapitalisation Project, will entail the scrapping and replacement of the some 126 000 minibus taxis which are responsible for conveying more than 65 percent of commuters in the country's cities, towns and rural areas. The existing taxi fleet which has an average age of 10 years will be replaced by purpose-built 18-seater and 35-seater diesel-powered vehicles.
According to Karin Pearce, Recapitalisation Project Leader, the replacement of the fleet will have wide-ranging economic and social benefits for the country. "Firstly there is the aspect of safety, both for taxi users and other road users. A reduction in serious accidents that will be one of the most visible benefits will save the country many millions of rands annually.
"In addition, a safer, more reliable and better regulated service will have significant productivity benefits for the economy. Most of the existing taxis were purchased as used vehicles and the establishment of required manufacturing facilities to replace all of them with new vehicles will provide numerous jobs, both at the assembly levels and at downstream industries such as component manufacturers and service providers.
"Export of the vehicles, both in taxi form and as medium commercial vehicles based on the same subframes, will also be encouraged and stimulated. Also, the comfort and convenience of newer vehicles will attract new commuters from other transport sectors which will inevitably increase the total fleet size of the proposed greater capacity vehicles.
"The scrapping allowance to be paid to operators who purchase new vehicles after scrapping existing taxis, will greatly ease the financial effects of the transition for operators, who will experience immediate benefits in better returns with the new products," she says.
The gradual introduction of new computer and electronic technologies with the new level of taxis, also hold significant benefits for the industry as a whole. The introduction of smart cards for payment of fares, computer monitoring of speeds, loads and servicing have major safety implications as well as enabling more effective and economic route planning and better distribution of taxi services. Registration as a taxpayer is also a prerequisite for individual operators getting access to the scheme.
"The role of Government in the Recapitalisation Project is purely to facilitate the change-over to a more efficient, cost effective and safe system. The autonomous taxi industry plays a very important part in the country's economy and lives of the majority of our people. In future the demand on their services will become even greater, and the Recapitalisation Project will enable a more stable industry better able to effectively meet these greater demands."
For more media information contact Karin Pearce, Recapitalisation Project Manager on 083 680 7031.
For exhibition information contact Pula Dippenaar on 082 448 2387, or Colin Horn on 012 310 9950.
Issued by the Government Communication and Information System (GCIS), Pretoria, 24 January 2000