Mobility

Question by: 
Hon Derrick America
Answered by: 
Hon Ricardo Mackenzie
Question Number: 
1
Question Body: 

With regard to the R5,2 billion to be spent by the City of Cape Town to expand the MyCiTi bus service:

  1. How many (i) temporary and (ii) permanent jobs are set to be created and (b) how many residents are set to benefit for the expansion of the MyCiTi bus service?

 

Answer Body: 

Acccording to information received from the City, MyCiTi Phase 2A comprises two ambitious trunk services and a network of 34 feeder routes. Collectively, these routes will traverse a considerable proportion of the city, touching the lives of nearly half of the residents of Cape Town. 

With 221 busses expected to deliver this Phase of the MyCiTi services, it is estimated that approximately 888 staff will be employed directly in the two (2) minibus-taxi (MBT) Vehicle Operating Companies intended to be established and operate the services. These job opportunities will be for VOC Board Members, Executive Management, Office Staff and Management, Operations and Maintenance, and Bus Drivers. Eligible MBT employees, who form part of the MyCiTi Expansion Area (MEA) will be granted preferential employment opportunities in the VOCs.

It is further estimated that an additional 120  jobs (best estimate) will be employed through the ancillary MyCiTi contracts consisting of the Station management, landscaping and advertising contracts.

Total estimated jobs: 1008

Shareholding:

Through this initiative by the City of Cape Town, more than 3500 individual MBT operators will have the opportunity to become shareholders of the above-mentioned companies.

  1. Introduction

Phase 2A (formerly known as the Lansdowne-Wetton Corridor) in the Metro South East has been identified as a priority bus rapid transit corridor to link the Khayelitsha/ Mitchells Plain areas with the Wynberg/ Claremont areas.

As part of the IPTN planning, extensive surveys were conducted investigating the operational characteristics of public transport services along the Phase 2A corridor.  Journey times in excess of an hour between the areas in the Metro South East and Claremont and Wynberg were identified.  The corridor carries very high volumes of public transport traffic, with some 9200 peak hour trips in the peak direction.

The primary objectives of the Phase 2A project are therefore to:

  • Provide safe, reliable, quality public transport to high population density in metro south-east; and
  • Improve access to economic opportunities for residents in the metro south-east.

Socio-economic challenges

The Phase 2A area accommodates approximately a third of the city’s population, which results in approximately 1.5 million residents.  It is also the least economically developed part of the city.

Approximately 56% of the Phase 2A area households have a monthly income of R3,200 or less, and are hence under the poverty line.  Almost 16% fall within the R3,200 to R6,400 income category.  These households do not qualify for government subsidised housing and in most cases need to rent, leaving little disposable income.  When combining these homes with those under the poverty line, it emerges that about 72% of the households of the Phase 2A area are under some form of income stress.

 

Figure: Metro South East (Phase 2 A) Corridor

 

 

 

 

  1. Benefits to the Metro South East communities

Benefits include the creation of job opportunities in the development phase of the corridor, which will contribute to poverty reduction.  Temporary jobs are estimated at 9 000 opportunities.

There will be multiplier effects as a result of implementing MyCiTi Phase 2A.  The investment of capital to realise the MyCiTi Phase 2A development will result in the stimulation of the economy.  The investment in infrastructure will lead to an increased demand for goods and services in the area, which in return will increase the business sales of local businesses.  The increase in sales/production will boost economic activity, which is translated as Gross Geographic Product (GGP).  Due to the increased demand for goods and services and increased economic activity additional jobs will be created.  A summary of these impacts is shown in Table 1.1.

Table 1.1:  Impact of investment of capital to develop MyCiTi Phase 2A

 

Construction

Operation

New business sales/production

30 billion

4 billion

Gross Geographic Product

10.9 billion

1.8 billion

Additional employment

40 100

5 400

 

The implementation of MyCiTi Phase 2A has the potential to drive economic development as well as support efficient urban development to drive Transit Oriented Development and support equality and inclusivity by providing access for the most marginalized communities to economic activities/opportunities.

Employment of minority and disadvantaged groupings such as women and the youth who live at or close to the development could also increase.  MyCiTi Phase 2A would support equality and inclusivity by providing access for the most marginalised communities to economic activities or opportunities.  The disabled and elderly people will have improved access to transport as the MyCiTi lanes and stations will have full special needs and wheelchair access.  Implementation of MyCiTi Phase 2A would also create attractive locations for private investors to invest in.  The demand for residential properties surrounding the stations will increase as people who use public transport prefer to live close to transport nodes, leading to increases in property values.  Commuters in the Phase 2A area will have a greater choice between various modes of public transport.  In addition, commuters will also have better direct access to destinations within the Phase 2A area, and beyond it.  Commuters will also spend less time in congestion and have greater access to work opportunities, healthcare services, and other services as a result of increased stations, more frequent buses, and dedicated bus lanes.  The project will also have positive environmental impacts such as improved air quality and better solid and liquid waste management systems.

(source: MyCiTi Phase 2A Corridor System Plan – City of Cape Town)

 

 

 

 

 

 

 

Date: 
Friday, May 19, 2023
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