launch of the Itumele Bus Lines in Thaba Nchu, Free State
11 October 2007
It is an honour for me to address this symbolic occasion as part of our
journey to transform the transport sector in South Africa.
In particular, we have made a lasting decision that the transformation of
the sector will not be complete without an absolute overhaul of our public
transport system. We have therefore undertaken a huge task to review our public
transport system, which has culminated into the development of our Public
Transport Strategy and Action Plan approved by Cabinet in March 2007.
One of the key thrust of our strategy is the introduction of Integrated
Rapid Public Transport Networks which aims to bring about high quality public
transport services that are fully integrated and based on passenger volumes on
a given corridor as well as applying appropriate mode to a specific
corridor.
We believe that this overhaul will help bring about quality service through
the reduction in travel time, extended operating times, increased access,
safety and high quality infrastructure such as modern interchanges and bus
stations.
Chief among our initiatives has been our duty to transform the taxi industry
into a safe and sustainable industry for it to be part of the integrated
service. It was in this province, last year, where we begun with the scrapping
of the old taxi vehicles as part of the Taxi Recapitalisation Programme
(TRP)
Today I'm glad to announce that we have already scrapped more than 10 000
old taxis and paid more than R 500 million in scrapping allowances throughout
the country. It is our firm belief that the TRP will allow the taxi industry to
be at the centre of our visionary integrated public transport system.
Distinguished guests, I'm happy to report that some of the major cities and
municipalities are moving with speed to finalise their integrated public
transport plans for the restructuring of their road based public transport
system. Cities such as City of Johannesburg, eThekwini, Western Cape, Nelson
Mandela Bay and Buffalo City are at an advanced stage in this regard. And some
work has already started in the Mangaung Municipality in Bloemfontein, as part
of this task.
It is therefore clear that the launch of Itumele Bus Lines' Broad Based
Black Economic Empowerment share scheme is taking place against the backdrop of
many positive initiatives to transform the public transport system.
One of the most important priorities has been to maximise the participation
of the black majority in the mainstream economy as part of our Codes of Good
Practice on Black Economic Empowerment (BEE) approved by Cabinet in February
2007.
Our aim is to increase a number of black people who manage, own and control
the country's economy. As a result, the Broad Based Black Economic Empowerment
has been effectively placed at the centre of economic growth to promote
economic transformation in order to enable meaningful participation of black
people in the transport industry and achieve a substantial change in the racial
composition of ownership and management structures of existing and new
enterprises.
It is against this background that my Department embarked on the development
of an Integrated Transport Sector Broad Based Black Economic Empowerment
Charter.
Key stakeholders in the transport sector were consulted and were directly
involved in this process. In particular, Organised Labour, Industry
Associations as well as Civil Society were involved in the development of the
Bus Sub Sector BEE Charter, which is one of the eight sub-sectors charters
being developed.
I'm happy to say that the launch of the Itumele Bus Lines (IBLs) BBEEE Share
Scheme augurs well with the provisions of our BEE Codes of Good Practice. This
deal has made it possible for employees, small bus operators and taxi operators
to be joint owners (shareholders) of Itumele Bus Lines.
I'm glad to say that the shift into the integrated public transport approach
gives opportunities to the members of the minibus taxi industry to fully
participate as operators or to establish joint operating entities with bus
operators in order to actively participate in the new integrated networks.
These new operating entities will serve as special purpose vehicles where
minibus taxi operators and small bus operators take up shares and form part of
the new entities. There is a need for partnerships between taxi operators and
bus operators. The Itumele Bus Lines' share scheme is a good example of this
partnership. I want to emphasis that taxi operators must begin to perceive
themselves not as taxi operators, but as public transport operators. This is
part of our vision to transform the public transport system for the better.
It is also important to note that over the past few years, the bus sector
has experienced a major growth in passenger volumes. It is specifically for
that reason that South Africa needs to urgently shift into an Integrated Public
Transport Network. Statistics indicate that for the past two years the country
experienced an increase of more than 10 percent in passenger volumes for people
using public transport. It is envisaged that the introduction of integrated
rapid public transport network would therefore assist in providing sufficient
public transport of the highest quality.
We are looking forward to the new company, Itumele Bus Lines, playing a
major role in providing this quality service particularly in this area. As we
move ahead in reorganising and upgrading our public transport operations, we
are prepared to work with existing operators but also create opportunities for
new entrants to participate. It is only through a collective effort that we
will be able to achieve the objectives of our Public Transport Strategy.
We should always remember that the eyes of the world are on us as we
accelerate our preparations for the 2010 Soccer World Cup. We should use this
event as a catalyst to develop and provide world-class public transport system
that would be enjoyed by all beyond 2010. As government, we have allocated
billions of rands to achieve our 2010 milestone.
* R9,2 billion for Public Transport Infrastructure
* R19,3 billion for airports development programme
* R16 billion for the passenger rail improvements over a period of three
years.
We want to ensure that, once visitors arrive, they enjoy a transport
experience that lives up to the world's expectations. However, at the end of
the day, it is individual transport operators such as Itumele Bus Lines, who
will bring that transport experience to fruition. And we view the launch of the
IBLs today as a step in that direction.
You should make Public Transport shine out like a beacon of rationality on
our congested streets - streets brought to a standstill by vehicles with just
one occupant. If we are really serious about encouraging people to change their
travel habits, it is your duty to offer a package that improves on their
current transport.
With those few words, allow me to officially launch the Itumele Bus lines. I
want to remind you that when we talk about the public transport system in South
Africa, we are in fact referring to Itumele Bus Lines and many other operators
around the country.
Quite frankly, I believe that in the years to come, the pride we take in our
quest for an efficient public transport system will define our nation.
I thank you.
Issued by: Department of Transport
11 October 2007
