Plans to link taxi industry with big players

File photo by Simphiwe Mbokazi

File photo by Simphiwe Mbokazi

Published Apr 23, 2013

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Johannesburg - The Department of Transport plans to get the country’s powerful taxi industry to work with major fuel retailers and vehicle manufacturers in an effort to grow the industry, following its not-so-successful taxi recapitalisation programme.

Parliament heard from the Auditor-General earlier this year how, regarding the thousands of taxis bought from owners by the department and scrapped since May 2006, not one cent could be accounted for.

The Siyazi Corporation pocketed R639.9 million from the department to manage the taxi recapitalisation programme.

Transport Minister Ben Martins now wants the taxi industry, with its enormous “buying power”, to look no further than big industry players such as tyre manufacturers and spares shops in the form of co-operatives.

In a written reply to Dirk Feldman of Cope, who had asked Martins whether his department was engaging the taxi industry in developing its infrastructure, economic development and growth, Martins said: “The process of acquiring a service provider to develop a co-operative model has already started and is at an advanced stage.

“The mandate for the service provider is to investigate and advise the department on areas to be engaged in ensuring that the industry gets into partnerships and co-operatives with the bigger industry role-players who benefit from the buying power of the industry such as fuel retailers, tyre manufacturers, spares shops and vehicle manufacturers.”

He said the department was also looking into the training of taxi drivers.

“A number of taxi drivers have benefited from the training provided by the department together with the Transport Education Training Authority. The department is continuing with this initiative, but the operators themselves will also be roped in for specific training courses that would prepare them in the area of business, financial and marketing,” said Martins.

Regarding the taxi recapitalisation programme, he said taxis affected by integrated public transport plans would be compensated through “negotiated compensation packages” in the various cities.

“This is what is currently happening, and it will continue as cities roll out for implementation. The compensation models vary but have been successful thus far,” said Martins.

He added the successful transformation of the public transport system was dependent on the involvement of the taxi industry and all operators.

The Star

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