http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 20, 2012

SA amends incentive to help restart minibus taxi assembly

Back
DURBAN|Africa|Diesel|Motors|PROJECT|Roads|Toyota South Africa Motors|Africa|South Africa|Toyota’s Durban Plant|Automotive|Manufacturing|Minibus Manufacturing|Motors|Product|Products|Safer Products|Service|Johan Van Zyl|Motors|Philip Taaibosch|Rob Davies|Motors|Diesel
|Africa|Diesel|Motors|PROJECT|Roads||Africa|||Automotive|Manufacturing|Motors|Products|Service|Motors||Motors|
durban|africa-company|diesel-company|motors-company|project|roads|toyota-south-africa-motors|africa|south-africa|toyotas-durban-plant|automotive|manufacturing|minibus-manufacturing|motors-industry-term|product|products|safer-products|service|johan-van-zyl|motors-person|philip-taaibosch|rob-davies|motors|diesel
© Reuse this



Toyota South Africa Motors (TSAM) has officially restarted minibus taxi assembly in South Africa with a R70-million investment to enable semi-knockdown (SKD) production of a 16-seater Quantum Ses’fikile – one seat more than the previously imported 15-seater minibus.

The investment created 90 direct jobs at Toyota and 210 jobs at suppliers and service providers, and will see the assembly of 40 taxis a day on a single shift operation, or 10 000 to 15 000 units a year.

The investment follows a request by government for TSAM to restart local production of a local minibus taxi, halted in 2007.

Trade and Industry Minister Dr Rob Davies noted at the opening of the assembly line at Toyota’s Durban plant that the investment would receive government support under the Automotive Investment Scheme (AIS), through a new mechanism that allows SKD assembly of minibus taxis to qualify for incentives.

Under normal circumstances, the AIS, which is a chapter of the new Automotive Production and Development Programme, supports only completely knockdown (CKD) assembly.

“We are amending the AIS to provide support levels to this endeavour. It will be completed in the next few weeks,” said Davies.

He noted, however, that SKD assembly would only be supported until March 2015, by which time government expects taxi assemblers to take advantage of the scheme to convert to CKD taxi assembly, which demands more localisation.

Davies said this “flexibility” is allowed in order to “kick-start” minibus manufacturing in South Africa.

He added that a local taxi assembly industry can feed vehicles into a broader African market, especially under a pending free trade agreement, still being negotiated, between 26 countries on the continent. His department is also pushing for preference to be given to locally assembled taxis under the Department of Transport’s taxi recapitalisation programme, which provides financial support to the taxi industry when replacing their vehicles with newer, safer products.

The South African registered minibus taxi industry numbered 280 000 units in 2009, with the yearly purchase of new taxis at 19 000 units in the same year, said Davies.

“Of these, fewer than 100 were made in South Africa. This was a situation we desperately needed to turn around.”

The local minibus industry contributes R30-billion to South Africa’s gross domestic product a year, transporting nine-million people.

Davies said he believed the support pro- gramme for minibus taxi assembly could secure R1-billion in investment in total, creating around 2 000 jobs.

“We would like to see other companies follow suit and bring minibus production to South Africa.”


TSAM assembly division 3 VP Fezile Myoli says the local arm of the Japanese manufacturer will produce two taxi derivatives in Durban, namely the 2.5 ℓ diesel and 2.7 ℓ Ses’fikile petrol models.

“It really makes sense to produce it here because of its popularity.”

It is estimated that there are currently 250 000 Toyota minibus taxis operating on South Africa’s roads.

Myoli says it took 18 months to roll out the assembly line. Local content on the project is low at the start of the project, with only the starter motor, glass and the battery locally sourced.

TSAM president and CEO Dr Johan van Zyl says a second phase in the taxi project may see the assembly line incorporate other product derivatives, such as a panel van. It will also include greater local content.

South African National Taxi Council (Santaco) general secretary Philip Taaibosch notes that it has always been the council’s ambition to again see taxis assembled in South Africa, especially as it contributed to job creation.

“We must compliment Dr Van Zyl and Toyota on the decision they have made to again assemble taxis locally. We are delighted”.

Santaco has 187 000 members, buying around 35 000 new taxis a year, he noted.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Construction on Line 2B of Pretoria’s A Re Yeng bus-rapid transit (BRT) system would start in August, while construction on Line 2C would start in November, Transport Minister Dipuo Peters has revealed. Line 2B will run between Hatfield and Menlyn and Line 2C between...
Local airline SA Airlink and banking group Nedbank Capital have concluded a finance deal, which will result in an expanded network of feeder routes for SA Airlink.
Transnet’s Maritime School of Excellence provided the ideal opportunity to provide skills development for South Africa and the rest of the subcontinent,” Department of Public Enterprises acting director-general Matsietsi Mokholo said at a Maritime School of...
Article contains comments
More
 
 
Latest News
Updated 14 minutes ago The developers behind the large-scale mixed-use residential development, the “holistic” R20-billion Coega Ridge housing estate, outside Port Elizabeth, in the Eastern Cape, have confirmed that the project remains on track to break ground in 2018 and will likely slash...
Updated 21 minutes ago Telecommunication giants MTN and Vodafone have collaborated to deliver seamless transactions between their respective Mobile Money and M-Pesa mobile money services in East Africa. A memorandum of understanding between the parties would see customers of MTN’s Mobile...
Updated 54 minutes ago JSE-listed integrated information and communication technology systems provider Datacentrix posted higher earnings for the financial year ended February 2015. The group achieved a 16.4% increase in earnings from R89-million in the year ended February 2014 to...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
SMART DISTRIBUTION Providing funds to introduce smart grid technologies in the absence of a clearly defined strategy will not result in the desired outcome
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96