Feb 22, 2008
Improved payment process supports taxi recapitalisation programmeBack
Natal|Safety|System|Retail Selling Price|Transport|Eastern Cape|Department Of Transport|Vehicles Registration Authority|Maishe Bopape|Bearing|Eastern Cape
© Reuse this
The TRP was announced in 1999 in an effort to improve the safety of taxi transportation. The Department of Transport offers an incentive to taxi owners who scrap their old taxis and upgrade to new taxis that comply with government prescribed standards.
Department of Transport taxi recapitalisation programme chief director Maishe Bopape says, “The Department, in consultation with stakeholders, particularly the taxi industry, is reconsidering the process of effecting the payment of the scrapping allowance in an effort to further enhance the implementation of the TRP.”
Bopape reports, however, that the new proposed method of effecting the scrapping allowance currently being discussed with the taxi industry will ensure that the scrapping allowance is used for purposes of assisting in the procurement of the new taxi vehicles as part of the implementation of the TRP.
“The proposed method makes provision for the scrapping allowance to be deposited into a single interest-bearing account for all approved applications for scrapping. Once the operator has made his or her choice of the desired new taxi vehicle and the vehicle financing is approved, the scrapping allowance and the interests accrued will then be released directly to the vehicle financier to assist in off-setting the retail selling price of the new taxi.
The scraping process entails a number of checks and balances to ensure that the vehicle intended for scrapping is indeed a legitimate one and is qualified to participate in the TRP. “These checks and balances include police markings on the vehicle, vehicle and document verification to confirm the registration of the vehicle as a taxi, availability and validity of legal permits or operating licences, besides other things. The verification and authentication process is then followed by a vigorous vehicle inspection at the scrapping site. “Once confirmation and clearance have been achieved, the vehicle is surrendered to the Taxi Scrapping Administrator (TSA) and is deregistered from e-Natis and the scrapping allowance effected,” says Bopape.
The taxi owner wanting to participate in the programme has to submit a valid taxi permit or operating licence to the TSA.
This permit is then checked against the vehicle and the annual vehicle licence issued by the Vehicles Registration Authority. “This is done to ensure that there are no loopholes in the scrapping system. The owner of a pirate taxi who does not have a taxi permit or operating licence may not scrap the pirate taxi in order to receive the allowance,” says Bopape.
He adds that the other checks carried out by the administrator include a check that the vehicle was not involved in any crime and has no outstanding traffic fines.
Bopape reports that, since the implementation of the new taxi recapitalisation system in October 2006, over 13 261 old taxi vehicles had been scrapped. Apart from the scrapped old taxis, the South African Bureau of Standards (SABS) has certified 26 types/models of new taxi vehicles that comply with the compulsory safety requirements that came into effect from January 1, 2008. Additional models are currently going through the SABS certification process and the numbers continue to increase.
Bopape reports that the implementation of the TRP is yet another intervention by government to bring about effective, efficient, safe, reliable and regulated public transport. The TRP also serves as a catalyst for public transport modal integration.
“The Department of Transport has realised that certain challenges exist in the public transport arena. “For instance, some areas could be better served by buses because the ridership in those areas is large, whereas other areas can best be serviced by taxis because of the smaller number of commuters. “The approach for the revised public transport strategy seeks to manage these imbalances by bringing synergies together through public transport modal integration,” says Bopape.
On August 17, 2007, Creamer Media Online reported that the Eastern Cape was leading in the number of old taxis scrapped and the scrapping allowance paid out. This was followed by Limpopo, the North West, KwaZulu-Natal, the Free State, Mpumalanga, Gauteng, the Northern Cape, and the Western Cape. Bopape reports that this is still the case. “The relationship that the Eastern Cape Department of Transport has with the taxi operators has created a situation that ensured that Eastern Cape is the province that is leading the way in taxi recapitalisation payouts,” says Bopape.
The original TRP aimed to replace the current 16-seater taxis with minibus taxis that have a seating capacity of between 18 and 35 seats. This has since changed after extensive discussions between government, the taxi industry and other stakeholders. These discussions led to the reconfiguration of the TRP which took cognisance of the concerns raised by the taxi industry around the programme.
The reconfiguration of the TRP includes eliminating 18- and 35-seater taxis and the introduction of smaller taxis. The reconfigured approach allows vehicle manufacturers to produce taxi vehicles with a seating capacity of 9 to 35, including the driver.
Edited by: Laura Tyrer© Reuse this Comment Guidelines (150 word limit)
Other Roads News
Bulk materials handling equipment distributor BLT South Africa (BLT SA) states that its range of Capacity trucks has been designed for enhanced performance, increased safety, and requires minimal maintenance. The company adds that the Capacity trucks are 4x2 modes...
Article contains comments
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...