Durban - KZN’S long-distance taxi drivers are hoping to take advantage of the opportunity to possibly fill up their empty taxi seats as Greyhound and Citiliner suspend their services.
The province’s taxi industry, which incurred heavy losses during the hard lockdown, has an estimated 35 000 vehicles and 246 taxi associations. Of those, approximately 13 000 do long-distance trips across the country.
Sifiso Shangase, provincial spokesperson for the South African National Taxi Council, said they had insufficient passengers when it came to long-distance travels.
Shangase said due to the low numbers, some drivers were now only making single trips per week to Johannesburg and other areas, spending most of their time at their local ranks, losing money.
“We will certainly fill the void and we hope that travellers will now use our mode of transportation. We are not going to be adding any additional vehicles.
“The numbers that are currently operating will continue on the routes that we shared with the bus service,” Shangase said.
In a bid to ensure safe commuting and the decrease in the spread of Covid-19, taxi associations within the greater Durban area launched a sanitation campaign last month. The goal was to sanitise 1000 taxis a day per region.
The coach and bus industry and its sub-sectors have suffered millions of rand in losses and hopes of recovery have been dashed by the second wave of the coronavirus and the threat of a third.
Industry leaders had anticipated that the country would have returned to “some semblance of normality” by March but endless months of non-operation and no income have resulted in some operators having to bow out.
Greyhound staff members across the country will be jobless come Sunday evening as the bus operator shuts down due to financial woes, marking an end of an era.
The bus company, which has been in existence for 37 years, had been bleeding cash for a lengthy period and the onset of the Covid-19 pandemic further aggravated the situation.
Trade unions have approached the Commission of Conciliation, Mediation and Arbitration (CCMA) for consultation to weigh workers options and have labelled the bus operator’s failure to involve CCMA to facilitate the retrenchment process as suspicious.
Gavin van der Merwe, investor relations and sustainability executive at KAP Industrial Holdings, owner of Greyhound operator, Unitrans Passenger, explained that Greyhound was no longer financially sustainable and that efforts to sell the business had been unsuccessful.
“We have reported previously that Greyhound had been losing money for several years. Management has tried a variety of different things to improve the business, but Covid-19 came and had a further impact,” he said. “We were losing money before Covid-19, so it’s not only a Covid related problem.”
Van der Merwe said a section 189 notice, a retrenchment process in terms of the Labour Relations Act, which permits employers to dismiss employees for operational requirements, had been issued to trade unions and that it would take its course.
Bazil Govender, executive manager at the Southern African Bus Operators Association (Saboa) said prior to the pandemic, the bus and coach industry had been under financial pressure due to increasing costs and currency fluctuations while the market was negatively affected by the declining economy.
During the pandemic, the industry had been hard hit by the impact of the capacity restrictions at various lockdown levels of operations.
Govender said that the public transport operational grant (PTOG) framework had been amended to set aside about R337 million for compensation and relief to road based public transport. Provincial governments were tasked with effecting the relief measures provided the allocation is not exceeded.
“This should have materially translated into relief to the taxi, bus and all related sectors. The Temporary Employer Relief Scheme (Ters) and other relief fund options did not realise the intended outcomes due to many businesses not receiving the payments as per application but were affected by either reduced or no payments.”
Govender added that the government and transport ministry were not “flexible and agile” in their approach to the unusual times. He said without critical interventions and relief, the association foresaw further restructuring, retrenchments and rationalisation of services. This would have a direct impact on the quality and availability of public transport options for the public.
Govender stressed that an out of the box, fresh approach was required in the PTOG, as well as the costs and penalties associated with licences.
“On behalf of the industry, Saboa implores government and the department of transport to facilitate the speedy disbursement of the PTOG set aside for relief and to urgently mandate the correct entities to critically engage the industry stakeholders to ensure that the impacts are mitigated and prevent further job losses and closure of companies.”
Ayanda Allie Paine, spokesperson for the minister of transport, Fikile Mbalula, said the position in which some bus operators found themselves was unfortunate and is a source of concern for the Ministry of Transport.
She explained that from the commencement of the lockdown, the president had announced various sector specific grants to assist businesses in distress.
Paine said bus operators were encouraged to apply depending on their configuration and characterisation.
“At present, bus operators in need of financial assistance are urged to make use of the Credit Guarantee Scheme, which provides loans to qualifying businesses. Over and above, the Ministry of Transport has on several occasions, extended the validity of relevant documentation necessary for the success and sustainability of transport operations,” she said.
“In addition, as a concerned stakeholder, the ministry has engaged public and private entities on behalf of the operators, seeking further means of supporting long distance bus operators.”