Presentation to Presentation on Status Quo Competition Commission of SouthCompany Africa
31 August 2018 SCOPEFULL 21 (PTY) LTD t/a MALUTI BUS SERVICE
Contents of presentation
1. Maluti Bus Service - Background 2. The dilemma of our time 3. Competitors and/or concurrent operators 4. Subject matters as per Statement of Issues – from an MBS perspective 4.1 Contracting relating to bus operations – long-term contracts which have not been subjected to competitive bidding for a long time. 4.2 Access to infrastructure and terminal facilities. 4.3 Transformation in the public transport – assessment of the transformation level across the value chain. 5. Summary
2 Extract from the Annual Report of Qwa Qwa Transport Corporation 1990/1
3 MALUTI BUS SERVICE Vision
A dynamic bus operator in the Eastern Free State who fulfils the transport needs of the community and forms an integral part of the economic growth and uplifting of the region.
Mission Statement
Our mission is to provide a reliable, safe, profitable, yet affordable passenger transport service to all our clients. We accept our responsibility towards the travelling public and the various client groups that we serve. We endeavor to understand and fulfil their transport needs. We value our personnel and passengers as our most important assets, and whose loyalty, passion and commitment are essential in achieving our goals. We strive to grow within the scope of our ability, thereby contributing to the prosperity of those we serve.
4 MALUTI BUS SERVICE SHAREHOLDING - 2018
Shareholding • 15 % Maluti Employees Transport Trust (METT) • 85 % Remmoho Sisonke Transport (Pty) Ltd 15% Remmoho Sisonke consists of – • Qwa Qwa United Taxi Association • Bethlehem Taxi Association
• Harrismith Taxi Association 85% • Tshiame Taxi Association • Provincial Taxi Council
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Board of Directors
• Mr MO Phumodi - Director (Chair) - Secretary of SANTACO (Free State) • Mr KJ Ramohloki - Director - Treasurer - Regional Taxi Council – Eastern Free State • Mrs AC Msibi - Director - Chair – Harrismith Taxi Association • Mr MC Maseko - Independent Director - Dept of Education • Mr PS Molingoane - Independent Director - Retired businessman • Mrs MJ Ntshingila - Independent Director - Provincial Manager, SEDA • Mrs N Ravele - Independent Director - CA(SA) • Mrs JF Seapi - Independent Director - HR Manager, FDC
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• Public Interest Company • Negotiated Contract since 2000 • Government subsidised bus services • Commuter services • Social responsibility
• Facilities (none owned) • 2 Depots • 2 Ticket sales outlets • 2 Termini • Extensive workshop facilities
7 MALUTI BUS SERVICE • Personnel composition 4 Functions namely: • Operations • Technical • Human Resources • Administration and Finance
• Equipment • 38 Economy class commuter buses • Electronic ticketing equipment (integrable for multi-modal use) • Contemporary business systems
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1991 2012
2014
2017
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MBS operate 17 local and 21 external routes
• 173 trips per day (Mon – Fri) of which 159 are subsidised and 14 non-subsidised services.
• 7,369 kilometers per day (Mon – Fri) subsidised and 247 km non-subsidised.
• Two community-project trips per day (weekdays) - 45 km per day.
• Operation times from 04:00 until 21:00.
• Longest route, between Bethlehem and Harrismith, is 92 km.
• Ad hoc trips for private-rental clients are also undertaken.
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• The fleet consist of 37 contract buses and 1 bus converted for the disabled.
o 1 Mercedes Benz 1724 – bus specially converted for disabled passengers - 2000 model
o 18 MAN HB1 – 2013 model
o 5 MAN HB4 – 2014 model
o 2 MAN HB4 Train buses – 2017 model
o 5 MAN HB5 – 2013 model
o 7 Mercedes Benz 1730 - Marcopolo – 2013 model
11 Bus routes Local - red External - yellow Bethlehem Intabazwe
Kestell Harrismith Khalanyoni Tshiame/ Industriqwa
Hlatseng/ Industries Mabolela/ Setsing Matebeleng Lusaka/Comet/ Tseki/ Metsi Matsho/Pereng Boiketlo Bolata/ Masaleng E-Ross
Thaba Bosiu/ Marakong Thibella/Tshirella/ 12 Petha/Tsheseng MALUTI BUS SERVICE
• The dilemma of our time
• Spatial dilemma • Qwa Qwa is a nodal point • Housing matters • Infrastructure development • Transport challenge • Remote areas • Time and distance factors • Traffic congestion • Necessity for affordability • Most commuters in low-income category
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• Competitors and/or concurrent operators
• Scholar commuter transport services • Tornado (Bethlehem) • Kgatleng (Qwa Qwa and Harrismith) • Mazibuko Trans (Harrismith) • Scholar taxi services (All areas)
• Charter and private hire • The above-mentioned bus operators • Bus operators from other regions that hold valid permits for such operations, such as • Transnat (New Castle/Danhauser) • Gauteng Coaches (Johannesburg) • Big Sky and Free State Coaches (Bloemfontein)
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• Subject matters as per Statement of Issues – an MBS perspective
• Contracting relating to bus operations – long term contracts which have not been subjected to competitive bidding for a long time • MBS’ Negotiated Contract of 2000 is now on month-to-month basis. All operating conditions of 18 years ago are still specified in contract • No expansion
This issue affects: • Licencing – permit moratorium • Price regulation – FSDoT prescribes fares • Allocation of operational subsidies – DORA and PTOG • Transport planning – Implementation of IPTN’s – urgently required for this rural area
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• Subject matters as per Statement of Issues
• Access to infrastructure and terminal facilities • Ageing infrastructure becoming inadequate • Terminal facilities outdated and insufficient
16 MALUTI BUS SERVICE • Subject matters as per Statement of Issues
• Transformation in the public transport – assessment of the transformation level across the value chain • Maluti Bus Service – an example of successful business transformation • Suppliers of services – first option is always local suppliers • Challenge: Most specialist services are located in cities (Johannesburg, Pretoria, Bloemfontein, Durban) – minimal transformation • Suppliers of commodities – developed in foreign countries and distributed under strict licencing in South Africa
17 MALUTI BUS SERVICE Summary • Contracting, expansion of services, and many more matters rest with all tiers of Government. The concept should, however, be a priority. • MBS takes cognisance of and embraces the concept of integrated transport networks. • Infrastructure, facilities, ranks have not kept pace with the demands of the times and may seriously affect future developments. • Transformation in the value chain has both opportunities and boundaries.
18 THANK YOU FOR THE OPPORTUNITY
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