Transport and Public Works
With regard to the Blue Dot taxi project:
(1) What feasibility studies were done before the project was launched;
(2) whether a plan or strategy document was prepared; if so, (a) what are the relevant details and (b) can a copy be made available;
(3) (a) what are the incentivising mechanisms, (b) how do these contribute to reducing taxi violence as claimed, (c) why is the project reportedly planned for nine months only, (d) what percentage of the Western Cape taxi industry is participating, (e) how many taxis are operating as “Blue Dot” taxis and (f) what are the prerequisites for a taxi operator to participate;
(4) whether the reference to “taxi companies” refer to taxi associations or mother body corporatising; if so, which ones have formed companies;
(5) whether all the operators in the associations of the mother body have shares in the companies; if not, who are these taxi companies; if so, how were shares allocated;
(6) (a) what is the total cost of the nine-month project, (b) what amount of this cost is transferred to the taxi industry, (c) how are these payments made up, (d) what is the financial incentive for each taxi company and (e) what is the financial incentive for each taxi driver;
(7) whether the incentive is a guaranteed gross incentive against which “demerits” are deducted or a reward incentive; if so, what are the relevant details;
(8) (a) what provision has been made to expand this project to the entire taxi industry and (b) what would the cost of that expansion be?
1) My Department has been working on a minibus taxi improvement project for several years through the Provincial Sustainable Transport Programme (PSTP). Numerous assessments and analyses were completed during this period. For the Blue Dot Taxi Pilot Project, a comprehensive business case was prepared.
2)a) As mentioned above, a business case was prepared.
2)b) Yes, we can share the business case but certain information will need to be removed due to industry dynamics and sensitivities.
3)a) To earn an incentive payment, participants need to meet eligibility requirements to reach what is known as green status. Those who have achieved green status can earn an incentive payment based on their performance against the performance standards.
3)b) Participating companies sign terms and conditions. When instances of taxi violence occur, these companies may be placed in red status and will no longer to able to earn an incentive payment while in red status. Further, the terms and conditions require that these companies take steps to address the violence.
3)c) The project is a pilot and is being run for 9 months to test the concept.
3)d) The project includes the participation of Umanyano Travel Services (UTS), a company wholly owned by the members of SANTACO WC; 8 newly established regional companies, each owned by the members of the Province’s 8 regional taxi councils; and up to 1,300 vehicles. This represents approximately 10% of the Western Cape’s legal local minibus taxis.
3)e) Up to 1,300 vehicles will participate in the pilot.
3)f) An operator must meet the eligibility criteria to participate. These include:
- A valid operating licence.
- A valid roadworthy certificate.
- The vehicle must be branded with the Blue Dot branding and fitted with a tracker.
- The vehicle must pass an inspection.
- The driver must have a professional drivers permit (PrDP).
- The operator must be registered on the Central Supplier Database and, therefore, must be tax compliant, without conflict of interest and have a valid bank account.
- The operator and driver must complete the Blue Dot training programme.
- The vehicle must operate a minimum number of kilometres per day.
- The operator and driver must sign the project’s terms and conditions.
4) As mentioned above, the project includes the participation of Umanyano Travel Services (UTS), a company wholly owned by the members of SANTACO WC, 8 newly established regional companies, each owned by the members of the Province’s 8 regional taxi councils, namely:
- Boland
- CATA
- CODETA
- Eden
- Greater Cape Town
- Mitchells Plain
- Northern
- Two Oceans
All 9 of these companies have signed on to participate in the pilot. This is the first time that the entire provincial taxi industry has signed up to participate in a minibus taxi improvement initiative, representing a giant leap forward for the formalisation, empowerment and transformation of the industry and laying the groundwork for further improvement.
5) UTS is owned by the 8 regional companies. Each of the regional companies is owned by their constituent associations.
6)a) A pilot has a budget of R150 million.
6)b) The incentive payments earned by the participants from the taxi industry will be determined by their performance against the performance standards.
6)c) Participants who are in green status are eligible to earn a monthly incentive payment based on their performance against the performance standards.
6)d) Unfortunately, we are unable to share this information at this stage in the project due to industry dynamics and sensitivities.
6)e) Unfortunately, we are unable to share this information at this stage in the project due to industry dynamics and sensitivities.
7) The incentive payment is not guaranteed. Operators in green status begin each day with 5 stars. Stars are deducted for poor performance, including speeding, harsh breaking, harsh cornering, harsh acceleration, failure to stick to licensed routes, and poor feedback from the public. Operators are paid based on the total number of stars earned per month.
8)a) My Department will assess the outcomes of the pilot and make a determination about the feasibility of expanding beyond the pilot phase. The continuation and expansion of the project will be dependent on securing the necessary budget. My Department is in ongoing discussions with the National Department of Transport to discuss this.
8)b) The cost of expansion will depend on a range of factors, including the number of operators who would be included. It is likely that the number of vehicles participating in the pilot would grow incrementally over time. We have not yet finalised the number of operators we expect to participate and how this will be phased in over time and, therefore, we are unable to share the cost of expansion at this time.
