150 minibus taxi owners have become shareholders in a multi-million rand mainstream public transport venture.
On June 30, the City of Johannesburg (CoJ) and taxi owners, together with Putco, signed a landmark Rea Vaya bus operating company agreement at Constitution Hill.
This is a 12 year agreement, of which taxi operators and Putco are shareholders of Ditsamaiso.
This venture will operate the Rea Vaya Bus Rapid Transit system along the Phase 1B routes from August 1.
The agreement was also signed by acting city manager Dr Refik Bismilla and Pascal Moloi, the interim chairman of the Rea Vaya bus operating company.
This agreement replaces the temporary agreement that was in place since 2013.
In this venture, the taxi operators hold 75 percent and Putco owns the rest of the shares.
The contract is worth R160,3-million in the first year.
Member of the Mayoral Committee for Transport, Clr Christine Walters, presided at the signing.
She praised all the parties involved for committing to improving public transport in the city and that the agreement is a milestone for the city’s drive to provide world-class public transport services
“This is a major milestone in the transformation of public transport in the city. I can’t even imagine the work you have done since the BRT project was first mooted. You were pioneers in this painful process of transformation. We didn’t always agree but today I am honoured and humbled by the progress we have made,” said Clr Walters.
The MMC said the agreement will be implemented from August to give the board of the new company time to ensure a smooth transition.
The new, joint venture company will operate Rea Vaya services along Phase 1B routes, including the trunk route from Thokoza Park to Parktown, as well as feeder and complementary services to and from Cresta, Flora Centre, Yeoville, Pimville, Dobsonville and Mapetla.
The MMC for Economic Development, Clr Ruby Mathang, said the agreement was another major move in the city’s quest to roll out improved public transport in the city.
“We are reaching out to all parts of the city. We intend to extend reliable public transport and no part of the city will be left untouched by this transformation. For the city to thrive, it has to provide efficient public transport, otherwise it is doomed,” said Clr Mathang.
“Change is painful, especially if you don’t understand it. But with this partnership, our industry has benefited a lot. My appeal to the new company is to make sure this business does not fail,” said Mr Andrew Sefala, from Putco.
“We were working in silos but now we are learning and growing in the transport sector. Taxis are now part of the mainstream of public transport. Owners and drivers have been empowered in the process,” he said.
