CHAPTER 13 MINIBUS-TAXIS

1. CHAPTER 13MINIBUS-TAXIS GUIDELINES FOR PASSENGER TRANSPORT IN SOUTH AFRICA A MULTI MODAL ANALYSIS

2. 13.2 South African and Overseas Minibus-taxi Situations Compared 13.2.1 The pattern of growth The world-wide growth of the minibus-taxi industry has followed a classic pattern, as identified by the UITP: (1: 13) • Rapid population growth and urbanisation leads to squatting around the large towns. • Travelling distances increase and the road network is inadequate to cope with the traffic.

3. 13.2.1 The pattern of growth cont’ • The authorities attempt to restrict subsidies which leads to substandard formal public transport. • This encourages the introduction of makeshift informal private transport systems using minibus-taxis, modified trucks and buses. • Although these private operators do not make a loss, they serve only certain areas and operate only when full.

4. 13.2.2 The operating conditions • Stronger role in the developing world • The main reasons for this are • inadequate road systems, • unreliable formal transport services, and • rapid population growth in urban areas • which has made long-term planning difficult.

5. 13.2.2 The operating conditions cont’ • Many studies also suggest the following reasons why the minibus-taxis has a strong role in the developing world: • Minibus-taxis provide higher levels of access and mobility in some areas than formal buses. • Where formal bus fares are subsidised by the authorities, minibus-taxi fares are higher. In other circumstances they are lower.

6. 13.2.2 The operating conditions cont’ • Minibus-Taxi profits are sometimes achieved through long working hours, overloading of vehicles and carrying out essential maintenance only. • Minibus-taxis concentrate on medium-to-high density corridors and ignore low-volume passenger movements elsewhere. • Minibus-taxis penetrate further into certain areas (e.g. informal settlements) than buses and also offer shorter journey times.

7. 13.2.3 Factors unique to South Africa-the apartheid policy • A major difference is the widely held perception that the minibus-taxi has been playing a part in the economic advancement of the black community, an aspect which has no apparent equivalent elsewhere in the world. • This old policy had two significant implications for urban passenger transport: • longer commuting distances • longer journey times

8. 13.2.3 Factors unique to South Africa-the apartheid policy cont’ • The economic consequences were an increase in transport costs to the user, which the Government alleviated by adopting a policy of subsidisation of passengers. • Achieved by: • introduction of subsidised rail services where passenger volumes were sufficiently high, and the • subsidisation of bus passengers through levies on wages and appropriations from Government funds.

9. 13.2.3 Factors unique to South Africa-the apartheid policy cont’ • The social consequences of the policy of segregation were, among others, a feeling of resentment towards these subsidised services, which came to be seen in the minds of the black community as instruments of Government policy. • Contributing to this resentment was the physical discomfort of overcrowded trains and buses, long journey times and uncomfortable vehicles.

10. 13.2.4 Summary • There are insufficient transport economic research on a holistic basis that has been carried out into the mode.

11. 13.4 Some Macro-economic Implications of Minibus-taxis • An earlier study of minibus-taxi costs was carried out by the Department of Transport in 1984 (4) which came to the conclusion that: • the minibus-taxi is a more economical mode of travel than the bus in the case of low passenger levels and short trip lengths. • a value was placed on the passengers’ time and the minibus-taxi became more competitive because of its higher speed

12. 13.4 Some Macro-economic Implications of Minibus-taxis cont’ • These calculations were based on a passenger load of 68 for a conventional bus and 10 for a minibus-taxi. • At a load factor of say 15 passengers, the economics of the minibus-taxi would be more favourable.

13. 13.5 Problems Facing the Minibus-Taxi Industry • Concern over a high collision rate and • Many deaths and injuries in minibus-taxi collisions. • Exist lower standards of vehicle maintenance which appear to be the result of financial problems being experienced by the industry in the form of • high interest rates on loans, • high insurance premiums, and • lower-than-expected income levels due to the saturated nature of the industry in some areas.

14. 13.5 Problems Facing the Minibus-Taxi Industry cont’ • The presence of a “gang mentality” in the industry exacerbated by disputes over routes, and perceived harassment by the authorities. • The deterioration of the taxi fleet.

15. 13.6.1 The recapitalisation programme • 1999 the Government announced a ‘recapitalisation” scheme to • renew the aging fleet of minibus taxis. • allocation of R3,2 billion (now nearer R8 billion) • allow existing operators to trade in existing vehicles for new midibuses with a seated capacity of between 12 and 35 persons

16. 13.6.1 The recapitalisation programme cont’ • The Moving South Africa report (1998:155 - 156) underlined the need for the scheme as follows: • emphasisesformalisation of the industry as the critical first step.

17. 13.6.1 The recapitalisation programme cont’ • The strategic actions should tie the incentives to the goals of: • Encouraging appropriate roles for taxis in keeping with their inherent modal economics. • Creating an industry that is sustainable and profitable and can afford to reinvest in its equipment. • Migrating the industry gradually to larger vehicles in order to facilitate their role in a larger road-based transport industry, but only following formalisation and regulation.

18. 13.6.1 The recapitalisation programme cont’ • In late 2005, amendments were made to the scheme, to include some of the following key points: • The empowerment of municipalities to take control of taxi ranks and routes. • To remove 10 000 old and unroadworthy vehicles from the roads by December 2006. • To invite taxi operators who wish to leave the industry to voluntarily hand in their vehicles and receive a scrapping allowance of R50 000.

19. 13.6.3 The future role of the taxi industry • Replacement of smaller, worn-out taxis with newer, larger vehicles will not solve the quality of service provided • Unless steps are taken to ensure that: • vehicles are adequately maintained, • improvements take place in driving standards and • overloading is eliminated, • the problems that are now being experienced will simply continue.

20. Another problem that will result from the use of larger vehicles will be the loss of jobs. • Optimal solution - include the currently, informal taxi industry in the proposed gross contract system.

21. 13.6.3 The future role of the taxi industry cont’ • Gross contract system: • new recapitalized vehicles enter service, • the associations to which they are affiliated should be contracted by the transport authority to operate them on the formal network as fully fledged buses, • operating on a schedule, • using the same through - ticketing scheme and • sharing the same branding as the larger vehicles.

22. 13.6.3 The future role of the taxi industry cont’ • The contract system will also lay down the maximum hours of work: • helping to reduce driver fatigue, • improve driving standards and • ensure that jobs are retained.

23. 13.6.3 The future role of the taxi industry cont’ • The conversion/transition process will not be smooth, however, for a number of reasons: • Firstly, many taxi associations, owners and operators find the present different financial arrangements convenient. • Few records are kept and • accountability levels are low. • This allows undesirable practices, such as the exploitation of drivers and understatement of income to continue unchecked.

24. 13.6.3 The future role of the taxi industry cont’ • Secondly, there are examples of routes that do not necessarily satisfy the needs of passengers but that have been crudely “carved up” among associations. • This forces passengers to make roundabout trips in many situations as well as having to pay twice.

25. 13.6.3 The future role of the taxi industry cont’ • Thirdly, the day-to-day transition from “informal” back to “formal” will be an uneasy one. • At any given moment, taxi associations will be operating a combination of older, unregulated vehicles and newer, regulated vehicles at the same time • The route patterns will probably also differ, as well as the cash/ticketing and administrative requirements.

26. 13.6.3 The future role of the taxi industry cont’ • The passenger will also experience uncertainty during this period, as the services on offer change in terms of routes, schedules and payment options. • A possible solution would be to place even the older vehicles on to the gross contract system as an interim measure.

27. 13.6.3 The future role of the taxi industry cont’ • Strong political will is going to be required to overcome the resistance that can be expected to ensure that the process is to succeed. • Despite the problems, “formalization” of the taxi industry should be pursued with vigour.

28. 13.6.3 The future role of the taxi industry cont’ • Best place to start the formalization process is in areas of low population density where • passenger levels are usually too low to justify frequent services using large, traditional buses. • Much of South Africa’s traffic congestion originates in these areas, which are almost entirely dependent on private cars

29. 13.6.3 The future role of the taxi industry cont’ • Use of smaller, more suitable vehicles (taxi’s) in such areas will: • allow more frequent services to operate and • will offer residents a much higher level of public transport. • This will assist the government in achieving its stated objective of reversing the shift away from private transport.

30. 13.6.3 The future role of the taxi industry cont’ • The use of recapitalised taxis on major routes will • allow frequencies to be improved, which, combined with better low-density services, will • make a strong contribution to the marketing of public transport on a regional basis. • Such an approach is vital to ensure that schemes like Gautrain are successful.

31. 13.6.4 Minibus-taxi design • This study guide suggests that urgent research be carried out into the benefits of using a more spacious type of body, including • the use of front entrances, • a higher roof and a • proper aisle between the seats.

32. 13.6.4 Minibus-taxi design cont’ • It can be expected that this will help to raise the image of the industry in general and assist its marketing efforts, particularly among the more affluent groups.

33. 13.7 Conclusion