Minibus taxi owners who will have their vehicles scrapped to make way for the R2.2-billion Phase 1C of the City of Johannesburg’s Rea Vaya Bus Rapid Transit (BRT) system will share more than R805-million in compensation when a company to operate the new route is established.
The Rea Vaya Phase 1C route – between the Johannesburg inner city, Alexandra and Sandton – is currently being developed and bus operations are expected to come on stream by October 2018.
The operations of the 17km BRT route will be run by a bus operating company consisting mainly of minibus taxi owners, the majority of whom are members of the Alexandra Taxi Association, whose vehicles are currently operating along the affected Louis Botha Avenue route.
This means that the minibus taxi operators, who will also relinquish their taxi operating licences, will become shareholders of the new company.
Many of the minibus taxi drivers are expected to be trained to operate the 141 articulated and rigid BRT buses to be deployed on the route.
Privately owned public bus company Putco, which also currently operates on the affected route, is also expected to have a shareholding in the still to be formed company.
Lisa Seftel, the City’s Executive Director of Transport, says negotiations with the affected minibus taxi owners regarding the establishment of the new bus operating company are ongoing.
She says plans are also in place to raise the required funds for the compensation of the affected minibus taxi operators. “Yes, of course, there is a plan in place to raise the money for compensation,” she says.
She adds that agreements on how many taxis will be scrapped are still being finalised. “The number of minibus taxi owners who will be affected by Phase C is still to be finalised in the engagement and negotiation with the minibus taxi industry,” says Seftel.
The removal of minibus taxis and Putco buses from the Phase 1C route will contribute to the reduction of traffic congestion and a cleaner environment.
Seftel says compensation amounts will be subject to negotiations. “Once these negotiations are concluded, there will be a handover or transition period during which a bus operating company is set up and compensation can be paid out,” she says.
Two bus operating companies have been established since the BRT system was introduced in Johannesburg in 2009. Piotrans was established in 2011 to operate Phase 1A, which runs between Thokoza Park in Rockville, Soweto, and the Johannesburg CBD.
Ditsamaiso operates the Phase 1B route, between Soweto and the Johannesburg CBD via Noordgesig, Coronationville, Westdene and Parktown.
The two 12-year agreements have resulted in about 500 minibus taxis being scrapped and minibus taxi operating licences relinquished.
