Rethinking Public Transport Reform A City of Cape Town Perspective

1. Rethinking Public Transport Reform A City of Cape Town Perspective Name of Presenter (20pt) Date (18pt) Abdul Bassier 11 July 2018

2. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN Influencing Factors • Experience and lessons learnt in implementing IRT Phase 1 and N2 Express • Challenges in Planning of Phase 2 • Funding parameters and constraints

3. 1 Experience and lessons learnt in implementing IRT Phase 1 and N2 Express

4. LESSONS LEARNT Not always desirable to replace ALL minibus-taxis with MyCiTi buses, especially on feeders routes • Minibus-taxis can offer more frequent and flexible services • Understanding user preference • Not cost effective for MyCiTi to offer the same services • Enforcement challenges Taxi MyCiTi

5. LESSONS LEARNT Limited funding availability ALSO Need to consider a combination of minibus-taxi and MyCiTi services on feeders routes

6. SOME TRANSFORMATION REQUIRED CURRENT TRANSFORMED

7. OTHER BENEFITS OF A TRANSFORMED INDUSTRY • Offers benefits to the entire minibus-taxi industry, not only those affected by IRT • Will improve conditions for : TRANSFORMED • Minibus-taxi passengers • Other road users • The minibus-taxi operator • Government • Important building block for implementing the City’s IPTN (Integrated P T Network)

8. LESSONS FROM PHASE 1 & N2 EXPRESS Key Lessons Full replacement of taxis not efficient – Hybrid Model Compensation payments Consultation and involvement of affected taxi operators

9. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN Multi-modal integrated public transport approach

10. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN The ten elements of the IPTN Business Plan

11. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN The ten elements of the IPTN Business Plan • Improving demand patterns, through changes in land use towards Comprehensive Transit Oriented Development and effective Travel Demand Management. • Recapitalising rail, building key links and improving operations (including revenue / cost ratios), with the assumption that national government continues to cover all rail related costs; • Implementing BRT on key corridors not addressed by rail, based on careful prioritisation within the financial resources available to the City; • Providing quality bus services as high order feeders and a selection of direct services, partly through re-engineering and integrating the current GABS services into the network; • Investing in the minibus-taxi industry to improve their services as an integral part of the service mix, including on-demand and demand responsive services, while also integrating industry stakeholders into other vehicle operations as service operators;

12. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN The ten elements of the IPTN Business Plan • Advancing non-motorised transport to improve the quality of streets and public spaces, improve the ‘last mile’ for public transport users, and reduce passengers on the motorised public transport system; • Developing innovative technological solutions by, inter alia, building on new mobile phone based e-hailing technologies to develop ‘new generation’ public transport servicers, improve regulation and enforcement, and ensure an integrated, cost-effective and user friendly fare system; • Improving prioritisation not only on BRT trunk routes, but for all forms of public transport, through infrastructure provision and other measures; • Optimising revenue generation including through fares, grants from other spheres of government, and the development of new own revenue sources; • Ensuring optimal management of the multi-modal network to realise its full integrated potential, including through scheduling integration, sound regulation and effective enforcement.

13. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN The ten elements of the IPTN Business Plan 5.Investing in the minibus-taxi industry to improve their services as an integral part of the service mix, including on-demand and demand responsive services, while also integrating industry stakeholders into other vehicle operations as service operators;

14. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN Attributes of transport services in Cape Town (National Household Travel Survey 2013)

15. RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN Change in the minibus-taxi business model required Driver operated business • Target to owner • Competing with other drivers Operator run and controlled business Driver trained and employed No destructive competition

16. Minibus-taxi Transformation Strategy Facilitate the formation of Association-based Transport Operating Companies (TOCs)across the City as a precursor to the formation of PTI-based RTCs and contract-based VOCs VOC RTC TOC • TOC to own all Operating Licenses • TOC to employ drivers • TOC to own/manage the fleet (vehicles) A Association

17. Benefitsof TOCs • Better able to deal with the concern of passengers • Safety from accidents • Behaviour of the drivers towards passengers • Overcrowding • Roadworthiness • Better opportunities for the operator • Potentially more profitable • Opportunity for new business • Positioned to enter into contracts • Positioned to receive subsidy

18. Phase 2 Approach • On trunk routes – BRT to replace buses and minibus-taxis on incremental basis – as and when passengers shift to BRT buses • This easily facilitated when TOCs are in place • TOC would then be compensated for Operating Licenses and vehicles surrendered • All TOC shareholders benefit from compensation

19. VIABILITY OF TOCS Key Challenges RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN • Convincing the operating licence holder to transfer his/her license to the TOC in exchange for shareholding • Business Plan for TOC must show the operator will not be worst off

20. TYPES OF TOCS RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN 1 2 3 TOC required for implementation of new Phase of BRT TOC required in the absence of BRT TOC required to deal with taxis where BRT is already implemented To facilitate incremental replacement and receiving compensation Largely a business improvement model for the Association New Operating Licenses to be issued with conditions

21. Pilot TOCs RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN • 4 Associations • Route 6 TA – line haul linked to N2 Express • 7th Avenue TA – feeder linked to N2 Express • CALTA - feeder not linked to N2 Express • Hazeldene TA • Started with pilot project Nov 2017 • Extensive surveys to develop an AS-IS business model • Now developing operations plan with optimum fleet size

22. Pilot TOCs RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN

23. Pilot TOCs RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN

24. Pilot TOCs OTHER OPPORTUNITIES TO IMPROVE PROFITABILITY RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN • Lower operating cost by optimising the operations and reducing the fleet • Bulk buying (fuel, spares, maintenance) • Appropriate cashless fare collection • New business opportunities

25. SUMMARY RETHINKING PUBLIC TRANSPORT REFORM IN THE CITY OF CAPE TOWN • In terms of the City’s IPTN minibus-taxis is to be developed as an integral part of the service mix • Important to support initiatives to improve the service to address passenger concerns • Establishment of TOCs seen as key to the success of implementing Phase 2 and IPTN • Successful TOCs will provide an important building block for VOCs and to tender for bus contracts • TOCs offers a mechanism for govt to subsidise the minibus-taxi industry

26. THANKYOU Abdul Bassier Director :Regulations 021 400-9369 abdul.bassier@capetown.gov.za