An important area for the Department of Transport has been to drive the capacity of the aviation sector and attract much-needed skills and investment for growth to take place in this sector. The Airports Company of South Africa (ACSA) has embarked on a very impressive programme to prepare for 2010 and beyond. Revenue is expected to grow from R3bn in 2007/08 to over R4.3bn by 2010/11. This growth averages an increase of 12.1% per annum. ACSA in turn continues with its concerted infrastructure expenditure through developments at OR Tambo International Airport, Cape Town and Durban and other airports at a cost of over R20bn to provide for the expansion of airport infrastructure.

One major area of investment and upgrading is in the area of public passenger transport as a critical part of the 2010 FIFA World Cup. We have seen major initiatives being undertaken by almost all spheres of Government in preparation for 2010 FIFA World Cup.

The approval by Cabinet last year of a Public Transport Strategy has gone a long way in guiding all spheres of Government towards the creation of mass rapid and efficient public transport networks, and this is a major improvement from a situation three years ago, where there was neither interest nor focus on public transport issues.

Before Parliament rises we will present the National Land Transport Bill to Parliament which will set a new framework for roles and responsibilities between the three spheres of Government and amongst others the effective management of the Public Transport Sector.

I must commend the many stakeholders ranging from community based structures to municipalities that participated actively at our public transport strategy and continue to champion public transport transformation. In a great way those are the makers of history who actively work with the ANC government to effect a thoroughgoing socio-economic transformation.

In particular, I am glad to announce that we have made significant progress in the planning and implementation of Phase one of the Public Transport Networks in our major cities. This includes Operational, Business and Infrastructure Planning in Johannesburg, Cape Town, Tshwane and Nelson Mandela Bay.

These four pioneering cities will have Phase 1 Bus Rapid Transit projects fully operational in late 2009/early 2010. Johannesburg and Nelson Mandela Bay have already started construction of certain portions of their Bus Rapid Transit (BRT) networks. Tshwane and Cape Town are due to commence construction in the second half of this year.

Again, honourable members, these BRT initiatives are underpinned by the objectives of ensuring bus transport as the public transport of choice because efficiency would be enhanced by dedicated bus lanes. All these efforts are aimed at enhancing the value of public transport and therefore help reduce traffic congestion and carbon emissions on our roads. The escalating price of fuel also means we have a duty to lighten the heavy burden this has on the income of our people.

I am sure you are well aware that the economic growth experienced in the country over the past few years has also resulted in an enormous increase in the demand for public transport. This is evident in the year on year increases in the actual subsidy expenditure on buses that has increased at a rate of about 15%. An overall average growth in passenger numbers of 12% was experienced nationally with some operators experiencing growth of up to 40%. This growth has put a strain on the annual subsidy budget allocation.

However, honourable Members – by early 2010 South Africans will start experiencing a radically improved public transport service that is based on an integrated city-wide network and which fully incorporates the minibus taxi industry. It is our stated objective that the current Bus Rapid Transit (BRT) initiatives will be integrated with the Taxi Recapitalisation Programme (TRP).


We must use the opportunities presented to us by the public transport initiatives to accelerate the transformation of the taxi industry as we know it. Today, more than ever, opportunities have emerged for the taxi industry which I believe will take this industry of emerging entrepreneurs to greater heights.

I am encouraged by the leadership that SANTACO has shown on this matter in clearly stating that they are not only taxi operators but seek to empower and transform the industry to become transport operators in all modes. Honourable members, this brings me to the progress in rolling out the Taxi Recapitalization Programme (TRP), particularly to improve the role of Government in improving the safety of the majority of our commuters who depend on taxis as their primary mode of transport.


The scrapping of old and unsafe taxi vehicles and their replacement with New Taxi Vehicles (NTVs) with better safety features is on track. To date, over 13 533 old taxis have been scrapped and R676m has been paid out to taxi operators as scrapping allowance. Currently demand for scrapping has exceeded expectation.