Programme Director
The President of SANTACO: Mr Arthur Mthembu
The CEO of SANTACO: Mr Bongani Msimang
The Secretary General of SANTACO Mr Phillip Taaibosch
Distinguished guests
Members of the media
Ladies and gentlemen
Programme director, in September we launched the South African National Taxi Council (SANTACO) Airline at Lanseria in Gauteng marking a significant achievement in the history of the Taxi Industry in South Africa.
We appreciated and welcomed the launch as a strategic and focussed intervention by the Taxi Industry to commit itself to extend reliable, affordable and sustainable public transport to the majority of our people.
Towards the end of September SANTACO also celebrated its 10th Anniversary of its existence as a public transport operator organisation at the forefront of transporting our people. Today as we launch the South Africa National Transport Academy, SANTACO is saying the back up through skills development in the public transport system needs to be developed. As government, we cordially support the inroads being made by SANTACO of taking some of the transport burdens on its shoulders and be able to work with us.
Following the Cabinet’s approval of the Public Transport strategy in 2006, we committed huge investments in the development of public transport infrastructure and services. Over the past six years, we have invested over R48 Billion in our Bus Rapid Transit System comprised of rail and bus and taxis. We have also spent over R9 Billion rolling out the Integrated Public Transport Networks in our major cities.
Ladies and gentlemen, as profoundly articulated in the National Skills Development Strategy (NSDS III), the single greatest contributors to poverty are unemployment and low paid work. Government’s position is clear: the new development and growth path for South Africa requires the participation of all economically active South Africans in productive activities. The policy levers to achieve faster growth, higher employment and reduced levels of poverty include skills development which must assist the formal private sector growth, labour-intensive industries, infrastructure investment, public service delivery and rural development.
The transport sector is a key demand-driven input sector that has been identified by all economic policy trajectories as one of the drivers of economic growth. The sector has important spill-over effects that affect the entire economy. An improvement in transport decreases the input costs of industry, which in turn improves production costs and reduces inflationary pressures.
In South Africa, public transport, and the taxi industry in particular, claims a significant portion and is a substantial contributor to the country’s Gross Domestic Product (GDP).
Unfortunately this industry is always overlooked in the calculation of the transport sector's contribution to the GDP and other social and developmental objectives of the country including job creation.
Taxis are the most popular mode of transport for the majority of the South African population and also provide the following;
The South African taxi industry plays an important role in the economy considering that the majority of South Africans are poor and dependent on public transport.
The taxi industry consists of minibuses, dominating 90% of the market, and metered taxis active in the remaining 10% of the market.
Public transport by taxis account for 65% of the transport total, 20% by bus and 15% by rail.
The industry consists of approximately 283 159 public minibus taxis.
The South African taxi industry is estimated to contribute more than R30 billion to the GDP of the Country.
The minibus taxi industry in South Africa is comprised of more than 125 000 owners and creates about 600 000 jobs viz:
- 283 159 drivers
- 100 000 conductors
- 80 000 rank marshalls
- 100 000 car washers
- 150 000 informal traders
Key challenges
Distinguished guests, in most scenarios where there are developments, pressing challenges cannot be ruled out.
Within the Taxi Industry despite the large market share, an analysis of the operating environment revealed the following:
An industry that has been effectively de-regulated for nearly two decades, and any form of regulation has been viewed with suspicion.
An industry where profit margins are narrow and break-even points are precarious for some operators, which results in activities to raise additional income.
An industry where negligent driving is prevalent because in most cases, drivers are expected to reach a specified daily revenue target.
An industry where the absence of benchmarks and standards, causes drivers to chase as many passenger trips as possible in order to make extra income for themselves.
An industry which, because of its daily cash-based system, provides fertile ground for money laundering.
An industry where working conditions and training requirements were not given priority.
But in spite of all the challenges that I have mentioned above, what is interesting is that the Taxi Industry does not sit and look back.
In response, the taxi industry aims to achieve the following:
Set acceptable vehicle standards and conduct training aimed at addressing road safety and driver skills.
Promote the formal registration and accreditation of drivers through training and certification over a set period.
Develop a data base for accredited drivers and discourage the employment of drivers who have not gone through a proper training programme after the set period.
Ensure only legal operators ply their trade and develop operational standards and benchmarking revenue.
Promote a business culture that promotes growth and empowerment through corporatisation of the industry by offering business and management course for operators
Strengthen leadership and institutional development through capacity building on policy, corporate governance and strategic leadership
Develop a deeper understanding of the government processes and ensure that operating licenses are issued in accordance with integrated transport plans that support integrated transport and spatial development.
Promote legislative and regulatory compliance relating to taxes, working conditions, health and safety, law enforcement etc.
Facilitate modal integration through a seamless commuter experience in all modes with high customer service standards.
TR3 2020 strategy and Transport Academy Objectives
SANTACO has developed a TR3 2020 strategy by which it seeks to develop effective business units which will harness the value that is embedded within the Taxi business but also improve customer care and road safety. The vision therefore seeks to create a self-sustaining industry which is a leader in transportation service, moving all South Africans in a continuously improving transport service that is affordable, safe and reliable.”
The critical element in the achievement of the strategic objective of the TR3 2020 strategy is the establishment of the Transport Training Academy (“Training Academy”), which is intended to develop the skills and capacity of the taxi operators, drivers and general staff within the industry to perform all tasks with competency, thereby provide an excellent service to all customers.
AS we launch the SANTACO Transport Academy today we aim to provide a platform for the advancement of critical skills within the taxi industry and the broader transport sector thereby facilitating the achievement of the objectives of the NSDS III.
We have to develop pools of resources and personnel within the industry that are competent and professional in executing their functions.
The promotion of road safety and development of proper driving skills for drivers, improvement of service delivery and creation of a customer-orientated service within the transport industry.
We also need to strengthen the implementation of the Department of Transport and TR3 2020 strategies and ensure that their intended outcomes are achieved and to provide the basis for empowerment and sustainability within the public transport industry and the taxi industry, in particular.
Among other matters we need to:
To improve and deepen the level of understanding and capacity for policy, business and operational procedures.
To create employment opportunities for various segments of the community within the transport industry, especially women.
To improve the usage of IT systems within all operations in the industry and also support the implementation of the EMS.
To fast track delivery of an efficient and an integrated transport system in the country.
The academy will be established to meet the training requirements of the transport sector. This implies that all people employed or intending to be employed in that sector will be targeted, including; association and business leadership and management; administrative and operational staff; bus drivers and bus owners; taxi drivers and taxi owners; truck drivers and truck owners; rank managers; taxi associations and the general public (public awareness).
Training programme
In order to be responsive to the needs of the sector, the academy will both develop and source applicable programmes for delivery to the sector and its students. It is envisaged that the library of programmes will include:
- formal, Sector Education and Training Authority accredited occupational and skills programmes (including practical training) and specific ad hoc workshops and training courses/programmes
- learning workshops and focus groups and conferences
- A professional development programme, encompassing various components and designed specifically for the sector.
Engagements with the province
There has support from the Provincial Department of Transport especially the Department of Tourism and Environmental Affairs who perceive the Training Academy and its location in Welkom as an opportunity to revitalise the dying town but also provide opportunity for economic development. There are a lot of people who will visit the province and the Welkom town as result town as a result of the Academy and the MEC of Tourism has committed his support of the this initiative and other projects that may bring growth and sustainable jobs and also revive tourism in the trovince.
Support from the Department of Transport
Ladies and gentlemen I must also mention that our sound relationship with the Taxi Industry has shown the Department of Transport committing a capital of R5.5 million to support the establishment of this Training Academy. The department has also mobilised support from Transport Education and Training Authority to ensure quality and proper standards are maintained and resources are provided to ensure long term sustainability of the Academy.
The pilot for the first candidates will start on the 15 of November 2011 to the 15 of December 2011. This period will also serve for registration period, marketing of the academy and finalisation of renovation and construction activities. The Academy will then officially open in 17th January 2012.
As SANTACO continues to strengthen its position, it does so from a solid base on which it has become the mode of choice for millions of commuters all over the country.
This is indicated in the following statistics.
- The Taxi Industry commands a turnover of over R35 billion annually
- The Taxi Industry employs over 250 000 employees who are mainly lower and semi-skilled workers consequently contributing immensely to government’s poverty alleviation programme
- In addition the Taxi Industry serves ancillary economic activities such as hawkers and other informal retailers who rely on taxis for their livelihood
- The number of taxis operating on South African roads is 283 159, excluding the informal taxis awaiting permits.
The annual purchase power of the Taxi Industry and its contribution to the economy is as follows:
- fuel consumption is R15 billion
- insurance is R2 billion
- tyre costs is R600 million
- manufacturing is R2 billion
- vehicle maintenance R2.7 billion
- lubricants is R110 million
- employment costs is R4 billion
- passengers annually is R1.9 billion
United Nations (UN) Decade of Action and Operation Hlokomela
As part of TR3 2020 strategy SANTACO has defined its vision for the Taxi Industry and provides a programme and approach for the empowerment of the Taxi Industry. In the implementation of the TR3 2020 strategy, SANTACO launched Operation Hlokomela to support for and create proper dialogue with commuters and drivers. This programme includes a framework to monitor Taxi operations and services rendered, through various initiatives implemented as part of operation Hlokomela.
Among others these include; check points for compliance with road traffic regulations and general safety checks on vehicle condition; visible monitoring of drivers and driver condition; vehicle and driver assessment at the rank before the trip is undertaken to ensure proper registration of commuter particulars in case of an emergency. We are excited because Operation Hlokomela has become a key component of our national programme in support of the “The UN Decade of Action for Road Safety”.
The UN Decade of Action for Road Safety aims to reduce road traffic fatalities by half by 2015. Annually 14 000 people die on our roads with a total cost to our economy amounting to R52 billion per annum. This predicament calls for all sectors of our economy to work hand in hand in fighting road traffic fatalities.
Ladies and gentlemen the launch of this Training Academy today should serve as a true testimony within ourselves, private institutions, civil organisation, business and labour that through partnership we can go a long way in addressing various challenges that are facing most of our disadvantaged communities.
I thank you.
