The City of Cape Town has announced that it has extended its operating contract with the N2 Express Joint Venture (JV) vehicle operating company.

Mayoral Committee Member for Transport and Urban Brett Herron said in a statement that the contract was extended on Wednesday and that it was effective from Thursday.

He said the vehicle operating company was formed by Codeta in Khayelitsha, the Route 6 Taxi Association in Mitchells Plain, and the Golden Arrow Bus Service (GABS), prior to the roll-out of the four MyCiTi routes to the metro south-east in July 2014.

"These changes signify an important milestone where the taxi associations, who are part of the JV, will begin to take over the operations of the N2 express service from GABS in an incremental manner," he said.

Herron said Codeta and the Route 6 Taxi Association will take over the operations of the four N2 Express routes, as well as the management of the MyCiTi fleet, serving commuters from Mitchells Plain and Khayelitsha.

He added that the City will begin negotiations for the signing of long-term operating contracts for the N2 Express service.

"One of the City's core objectives is to build an inclusive city where the legacy of the past is undone through linking people with opportunities, and by creating an environment conducive to job creation and economic growth."

"Over the past three years the City has empowered the board members of the affected minibus taxi associations to set up and run their own vehicle operating company in a joint venture with GABS."

Herron said they have assisted former minibus taxi drivers to receive training in order to operate and drive the buses that are currently servicing the N2 Express routes.

"The GABS learning and assessment centre in Montana facilitated the training of the minibus taxi drivers to upgrade their licences from code 8 to code 11."

He said they have covered drivers' training costs as well as the costs of other personnel who completed courses in administrative duties.

"Our aim is to ensure that we bring taxi associations up to the same level as other major scheduled transport operators."