http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.50Change: 0.09
R/$ = 10.49Change: 0.06
Au 1294.90 $/ozChange: -0.67
Pt 1413.00 $/ozChange: -15.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 22, 2008

Improved payment process supports taxi recapitalisation programme

Back
Maishe Bopape from the Department of Transport discusses the revised scrapping allowance payout system (29/01/2008)
Natal|Retail Selling Price|Transport|Eastern Cape|Department Of Transport|Vehicles Registration Authority|Maishe Bopape|Eastern Cape
natal|retail-selling-price|transport-industry-term|eastern-cape|department-of-transport|vehicles-registration-authority|maishe-bopape|eastern-cape-province-or-state
© Reuse this



Improving the mechanisms of payment of the scrapping allowance could go a long way to ensuring the successful implementation of the Taxi Recapitalisation Programme (TRP), reports the Department of Transport.

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 explains that the scrapping allowance is currently deposited directly into the accounts of taxi owners who successfully scrap their old taxis and those who exit the industry. There are concerns, however, that some operators do not necessarily use the scrapping allowance received to off-set the retail selling price on the new taxis. Instead these funds are then used for other private and/or personal matters separate from recapitalising the aged taxi fleet.

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
 
 
 
 
 
 
 
 
Other Transport & Logistics News
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
Updated 7 hours ago The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
TEAMWORK The 65 t container straddle carriers were loaded onto low-bed trailers using two mobile cranes
Updated 7 hours ago Machine moving and abnormal load specialist company Lovemore Bros successfully transported two cumbersome container straddle carriers from the Port of Durban to the city’s former major airport, Durban International Airport on February 11 and 12.
Updated 7 hours ago AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
More
 
 
Latest News
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
ANC SG Gwede Mantashe (L), chairperson Baleka Mbete (C) and President Jacob Zuma (R)
The creation of a small and medium enterprises department is very likely, African National Congress national chairwoman Baleka Mbete said on Thursday. "We are talking about a focused department looking at small and medium businesses because the departments must be...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of 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 steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
Updated 7 hours ago The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
Updated 7 hours ago The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
Updated 7 hours ago The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
Updated 7 hours ago AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
Updated 7 hours ago South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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