CHAPTER 13MINIBUS-TAXIS

GUIDELINES FORPASSENGER TRANSPORT IN SOUTH AFRICA

A MULTI MODAL ANALYSIS

13.2 South African and Overseas Minibus-taxi Situations Compared

13.2.1 The pattern of growthThe 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.

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.

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.

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.

– 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.

13.2.2 The operating conditions cont’

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

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:1. introduction of subsidised rail services where

passenger volumes were sufficiently high, and the 2. subsidisation of bus passengers through levies on

wages and appropriations from Government funds.

• 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.

13.2.3 Factors unique to South Africa-the apartheid policy cont’

13.2.4 Summary

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

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

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.

13.5 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.

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.

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

13.6.1 The recapitalisation programme cont’

• The Moving South Africa report (1998:155 - 156) underlined the need for the scheme as follows:– emphasises formalisation of the industry as the

critical first step.

• 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.

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.

13.6.1 The recapitalisation programme cont’

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.

• 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.

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,

1. operating on a schedule, 2. using the same through - ticketing scheme and3. sharing the same branding as the larger vehicles.

• 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.

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:

1. 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.

13.6.3 The future role of the taxi industry cont’

2. 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.

13.6.3 The future role of the taxi industry cont’

3. 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.

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.

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.

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

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.

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.

13.6.3 The future role of the taxi industry cont’

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.

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.

13.7 Conclusion