New Piotrans buses hit Joburg streets after company turnaround

Almost a year ago, City of Johannesburg MMC of Transport Kenny Kunene unveiled the first of 10 new buses as part of a strategy to revitalise the embattled PioTrans bus operating company.

Today, a total of 45 branded Piotrans buses will be operational across the city from Monday.

The new leased fleet will be rolled out to the existing fleet aimed at restoring the company to its former glory.

New leased PioTrans fleet

These 45 buses will service the affected Rea Vaya routes, including F1 (Naledi to Thokoza Park station), F2 (Protea Glen to Thokoza Park station), F3 (Jabavu to Lakeview station), F4 (Mofolo to Orlando Police station), and F5 (Eldorado Park to Lakeview station).

Kunene explained the challenges faced during this process.

“When I arrived, Piotrans was bankrupt, and shareholders asked me to intervene. We faced difficult situations, but I tried to assist so that 299 families wouldn’t lose their livelihoods. These families in Soweto put their trust in me, but it was not easy,” the MMC said. 

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“We uncovered the rot at Piotrans and developed solutions that would work—such as bringing in more buses, establishing better systems, and appointing credible, professional people. That’s what we’re seeing today.” 

The company was placed under business rescue after creditors approached the High Court over pending debt, and the court granted the application, and a business rescue practitioner (BRP) was appointed. 

It also underwent restricting, and an independent interim board was appointed in 2023 to stabilise it. The interim board flagged fraud, mismanagement, and maladministration within PioTrans as the core of its problems.

Embattled bus company

The 12-year contract between the City of Johannesburg and PioTrans ended in January 2023 and was renewed on a month-to-month, two-year period on a performance contract. However, operational challenges reached breaking point as weekly disruptions of services and labour disputes left commuters stranded. 

Business rescue practitioner Mahier Tayob said Piotrans had a turnaround strategy, saying that the company was nearly back to its former glory. 

“We may reopen past routes and explore new ones, depending on the city’s decision. We’ve managed to secure jobs, ensure creditor and insurance payments, and maintain our fleet. These new buses will allow us to refurbish our existing fleet, with each reconditioned bus returning to service,” Tayob said.

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He said despite the challenges, operations are now stable, with fewer incidents of sabotage and breakdowns.

“The rehabilitation of Piotrans will continue at a steady pace, with reduced moratoriums. We have reliable fuel and spare part supplies, and breakdown incidents are at an all-time low. We’ve also negotiated the release of seven additional buses, which will soon be serviced and made operational,” he added.

Piotrans expects to clear all smaller debts under R300 000 by February 2025 and will begin payments to larger creditors afterward. 

Clearing smaller debts by February 2025

In addition, the company also renegotiated leases into lease-to-own agreements, securing two properties valued at R6 million to become Piotrans’ assets within five years.

“We are happy that we have been able to turn this around. I wasn’t just facing challenges with shareholders but also within the council. Eventually, I took the report to Section 79, and after months, we finally got the approval needed to deploy these buses,” Tayob said.