TSHWANE RAPID TRANSIT – Economic Handbrake Slows TRT Rollout

From Ga-Rankuwa in the west to Bronkhorstspruit in the east, crossing the world-famous Pretoria CBD at its heart, the sprawling Tshwane Metropolitan Municipality is one of South Africa’s busiest cities. Almost three million people share this 2500 square mile part of Gauteng and the flow of people falls to a few specialist providers. Perhaps the most prominent public transport system is the Tshwane Rapid Transit (TRT).

The region’s version of a worldwide success story, bus rapid transit (BRT), the TRT is a modern and effective bus service designed around the Tshwane commuter.

For TRT CEO Samuel Matebane, 2020 has started with mixed feelings. The company on the cusp of significant expansion, that could see more and more residents able to benefit from the efficient and reliable bus service offered by the company, but economic and political issues have slowed progress.

Currently, the TRT has access to a segregated right-of-way infrastructure throughout the municipality, utilised by a fleet of modern buses that provide commuters with fast, easy and safe transport. Matebane would like to add more routes, more buses, and improved services but is waiting to receive approval from all parties involved.

“Our goal is to move all public transport from the city-centre and have them operate in the peripheries. How possible is that considering the financial constraints in the country right now and the timescales we face? That remains the question to which I have no answer right now,” he tells Enterprise Africa.

BUDGET IMPACT

In February, Finance Minister Tito Mboweni’s budget speech detailed spending cuts which would hit transport and housing as the government looks to relieve pressure on its finances. Only urgent priorities would receive significant attention and public transport spending would be reduced by R13.2 billion over the next three years.

“It does impact us,” admits Matebane. “Transport may not be a priority for all but when you look at the percentage of household income spent on transport you see that, for the poorer, it’s a large portion of their income so that does impact us directly.”

TRT is built on the principle of providing excellent customer service. With this budget news, TRT plans to invest in new buses – especially environmentally friendly compressed natural gas (CNG) powered buses – will be re-evaluated.

“We are reviewing the situation and reprioritising as we work with the City of Tshwane on these matters. From a roll out point of view, there will likely be a slowdown,” says Matebane.

“We have 114 buses right now. 40 of those businesses have been successfully converted to CNG. It’s good for the environment, there are less emissions, and they produce less noise than regular buses. With global warming and various environmental concerns that have become prominent, we have had to look at how we can expand and how we are making an impact.”

SUSTAINABLE FUTURE

While initial outlay for CNG converted buses is large, the long-term impacts make sense, both financially and environmentally. Eventually, the target at TRT is for all buses to run on CNG or similar systems. With government expenditure under the spotlight like never before, any investment will be meticulously considered as Matebane explains.

“Looking at buses with environmental credentials, like a solar powered house, the initial cost is higher than the normal conventional product – that is a big factor for us to consider. We are paying a premium right now in order for us to benefit in the longer term but we are busy deciding on what is best for the company and it is certainly not a decision we take lightly.

“We would like to purchase around 57 new buses in the future and we are in discussions surrounding that right now. When we are ready to partner with OEMs, we will ask the question about whether we purchase CNG buses or conventional buses. Any acquisitions will be price dependent.”

In terms of running cost, the price of fuel (diesel) came down 54 cents in March. Even with the Rand depreciating against the Dollar, the prices of petrol and diesel came down. For TRT, using a fleet of CNG buses allows for improved bulk buying capabilities which will result in savings.

“Our aim has always been to move further into natural gas as we expand. The main reason for that is that the more fuel we use, the economies of scale bring the average costs down which helps us a lot in the long run,” details Matebane.

In terms of expanding the reach of the system to new communities, growth is pencilled in for Q2 and Q3, helping to further entrench the reach and reputation of TRT.

COMMUNITY ASSET

“The company is viewed in a very positive way and the communities of Tshwane are very proud of the company,” insists Matebane. “We see that in the number of passengers that we are moving – on average, 25,000 per day. Day in day out we have enquiries about our expansion.

“We will be expanding in April,” he adds. “Through that expansion, we are expecting another 15,000 people per day onto our buses. In July, there will be another expansion and that is when the new buses will come in handy.”

The route between Loftus stadium and Menlyn will receive attention and continues with a growth strategy that has been in place for a long time.

“It is all part of the strategy which was developed in 2014. We have reprioritised based on the cost and budget situation but overall expansion has been planned for a long time and we are looking forward to getting moving,” says Matebane.

Asked for more specifics on time frames for new buses and route expansion, the CEO is unsure. “We work alongside the city so we have to wait and see,” he says. “A lot of decisions are made at government level so it is difficult to commit to certain times but I know that in the next financial year we are aiming to complete the purchase of the 57 new buses.”

REALISTIC GOALS

Over the past 12 months, there has been frustration from some commuters when services have been cancelled or changed without notice. The vision of TRT is to be the leading passenger transport operator in the continent. So, is it possible considering the challenges that the country and company faces; especially with a range of different competitors all vying for market share in the municipality?

“It is realistic,” confirms Matebane. “Talking about competition, the BRT does not directly compete with the taxi industry. They are a feeder into that system so we see them as complementary. We do compete with other services but it really all depends where a person is travelling to and from. We compete very well against other bus companies and we seem to be hitting the right buttons, so we are very proud of the work we do.”

TRT is not the only BRT in South Africa. Cape Town has the MyCiTi, Johannesburg has the Reya Vaya, George has the Go George BRT, Rustenburg has the Yarona, and the Nelson Mandela Bay had a BRT system put in place to service traffic during the 2010 FIFA World Cup. All have come under fire for operational inadequacy, but all continue to move South Africans to and from work on a daily basis. For TRT, some critics have pointed to the relatively small scope of the system when compared to initial promises from 2014. The imminent expansion should ease these concerns as the organisation targets coverage from Soshanguve to Mamelodi.

Matebane is enthusiastic about the future as the business continues to grow its reach, bringing it closer to its vision.

“Our focus area is the Mamelodi commuter bus service and we are busy making that business cost effective. That is what excites me right now. We are looking at leasing buses to add to the fleet and we are looking at automated collecting systems as well as adding more value in that space so that we can realise profits. We have a mandate to run that service for another three years from April 1 and that is what excites us,” he says.

Excitement from the CEO’s office spreads through the organisation. TRT employs around 250 people throughout the business and Matebane, who has been in the industry for 10 years, is keen that all are regularly upskilled with relevant knowledge. For this reason, TRT is busy establishing a new training centre.

EMPLOYER OF CHOICE

“In our business, we are recruiting the majority of employees, especially drivers, from the taxi industry. The skills in the taxi industry are different, so we are required to upskill and that is something we are continuing to do,” he says. “For me, the thing that shows we are doing well is that we have been fighting off other companies who are trying to take drivers from us. Clearly, they recognise that our drivers are better so our continued focus on training is a very important thing for us right now. We are ready to launch a new training centre for drivers and other employees and we will be taking drivers and asking them to help train new staff members while they go through various internal training programmes. Where we require external training, we will bring people inhouse to complete that. It helps to save on cost and will save our drivers travelling a long way to external centres. We have the centre, we have the facilities, we have the skills. So we are saying, come and do your training here and save on the cost.

“Currently, we have 36 apprentices in training and we are happy with how the process is going, with various elements of training sponsored by the Department of Transport. It creates a bigger pool for us when we require new skills.”  

For the most important people involved with TRT, its customers, the hope is that the service can continue running smoothly, quickly and safely, while expanding across the municipality and introducing new buses which improve sustainability credentials. Of course, those within the business will hope that the political and economic landscape can provide some predictability so that plans can be put in place. Unfortunately, they may be waiting for some time following the announcement at the start of the month that the City of Tshwane council would be dissolved and fresh elections would be held after the council had become dysfunctional since November 2019 meetings collapsed.

For Matebane, it’s business as usual as he continues to strive for ongoing improvement.

“We will persist with improving the socio-economic conditions and quality of life of all Tshwane residents, offering a better level of service as part of an integrated public transport system, and striving to be recognised as an employer of choice,” he concludes.