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  
 
 
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)
 
 
 
Safety|System|Bearing
Safety|System|Bearing
safety|system|bearing
© 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 (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
Acting Transnet CEO Siyabonga Gama
Acting Transnet CEO Siyabonga Gama, who was appointed to the position following the surprise secondment of Brian Molefe to Eskom, has placed revenue diversification at the top of his list of immediate priorities, with the weak commodity outlook seen as having the...
Monwabisi Kalawe
Suspended South African Airways (SAA) CEO Monwabisi Kalawe has resigned, with immediate effect, as his relationship with the State-owned carrier had been “irretrievably broken down”. The step was taken following arbitration proceedings between Kalawe and SAA, in the...
More
 
 
Latest News
Updated 10 minutes ago Top aluminium producer United Company Rusal will start producing metal at its Boguchansk project, in Russia, by June and will ramp up output over the following year depending on demand, the company's chief executive said on Monday. Weak aluminium prices are forcing...
Updated 13 minutes ago Dubal Holding, the holding company for Dubai's stake in Emirates Global Aluminium and other assets, is considering possible acquisitions in local and international energy projects, it said on Monday. The firm was looking for equity interests related to coal, solar,...
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
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
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
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