City’s biggest BEE project sees over R300 million

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SPEECH BY THE CITY’S EXECUTIVE MAYOR, PATRICIA DE LILLE
City’s biggest BEE project sees over R300 million
investment in Mitchells Plain and Khayelitsha
Note to editors: this is an extract from a speech by Mayor De Lille, delivered at
an event to commemorate the successful launch of the MyCiTi N2 Express
service, on 27 August 2014.
Good morning, goeie môre, molweni, as-salaam alaikum, shalom.
Today we celebrate one of the most successful large-scale empowerment
projects in the city and the positive change that it has brought to many
people, specifically businessmen and women and former taxi drivers in
Mitchells Plain and Khayelitsha.
We can proudly say that MyCiTi is the biggest Black Economic Empowerment
project that the City has undertaken.
What is also commendable about this process is the positive relationship that
we have formed with our partners: CODETA and the Route Six Taxi
Association.
The N2 Express service is a noteworthy example of the vision and will of taxi
owners who have come on board and worked with the City to achieve a
smooth and successful industry transition.
The negotiations with the affected parties – CODETA, Route Six, and Golden
Arrow Bus Services (GABS) – were concluded in record time, taking only a few
months to complete.
This process has shown how we can make progress possible, together.
I want to thank Mr Vusumzi Miselo, Chairman of CODETA, as well as Siwe
Coka, who was instrumental in the negotiations. I also extend my thanks to
the rest of the CODETA leadership, GABS and its leadership, as well as Mr
Henry Williams and the rest of the Route Six leadership, for working hand-inhand with the City and ensuring that we could introduce a quality public
transport service to the metro south-east.
To date, the MyCiTi project has seen an overall investment of R6,5 billion by
the City as part of our commitment to infrastructure-led growth.
This includes:
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R2,5 billion in the form of long-term operating contracts, empowering
former taxi owners.
CODETA and the Route Six Taxi Association formed a Vehicle
Operating Company (VOC) with Golden Arrow Bus Services and
signed a three-year contract with the City, worth around R300 million,
to run the service.
For the N2 Express, the City made a capital investment of R200 million
for the construction of bus stations and stops and the procurement of
buses.
At a cost of over R29 000 to train each driver, the final investment will
see more than R2,5 million spent on training drivers – for the N2 Express
service alone.
Since the launch of the MyCiTi service, the City has invested around
R6,7 million to train around 447 drivers on all active MyCiTi routes,
including the N2 Express.
Industry transition has allowed former taxi owners to establish the VOC that
manages the MyCiTi service, along with GABS.
Up to 66% of the company that runs the MyCiTi N2 Express service on the
Cape Flats is owned by CODETA and the Route Six Taxi Association.
Apart from the N2 Express service being the latest contribution by the City to
large-scale empowerment, there have been numerous other benefits.
This has brought a quality, reliable and safe public transport system to some
of the communities most in need.
In addition to investing in infrastructure, redress is also about empowering
people.
During the construction, the City had an agreement with the contractor that
only local sub-contractors would be employed.
This is further proof of our commitment to create an opportunity city as we
support local businesses.
The MyCiTi project has also seen an investment into the lives of hundreds of
taxi drivers as they have advanced their skills through training.
By September, 88 former taxi drivers will have been trained for the N2 Express
service.
The industry transition also means that taxi drivers will enjoy many other
employment benefits. Being part of MyCiTi operations means drivers and staff
have fixed employment benefits such as medical aid, pension, leave, fixed
working hours and a stable employment framework.
This project is a fine example of a City that is making progress by creating an
opportunity and inclusive city.
The MyCiTi N2 Express service has been the first introduction of this quality,
universally accessible transport service to the metro south-east.
It has been a service welcomed by commuters, with a dedicated route to
the CBD which connects them to opportunities and many other parts of the
city.
As we celebrate this accomplishment, we must be mindful of the
responsibility that we all have in this venture.
Let us continue working in good faith as we extend and maintain this quality,
world-class transport service to more areas in Cape Town.
End
Issued by: Integrated Strategic Communication and Branding Department,
City of Cape Town
Media enquiries: Zara Nicholson, Spokesperson for the Executive Mayor –
Patricia de Lille, City of Cape Town, Tel: 021 400 4998 or Cell: 079 416 5996, Email: zara.nicholson@capetown.gov.za
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