By Nangamso Mabindla
5 March 2008

THE provincial department of roads and transport wants to reposition the local bus operator, Mayibuye Transport Corporation (MTC), and turn it into a money-generating entity. This is the word from the MEC for safety, liaison, roads and transport, Thobile Mhlahlo.

Mhlahlo was speaking in East London on Tuesday, 4 March at the signing of the biggest black economic empowerment business deal in which his department has ever been involved. The deal is between the department and the new, 100 percent black-owned Africa's Best 350 (AB350) bus company.

The company, which will operate in the Transkei, was set up by small bus operators from the region. It has 194 shareholders.

"We are committed to increasing procurement procedures to develop best practices for the benefit of black emerging industry. Today, we are here to witness the sealing of a R944-million deal over a period of nine years between Africa's Best 350 Ltd [and the department]," Mhlahlo said.

The department would pay a monthly subsidy of R2,75-million during phase one of the deal, which would run over seven years.

His department aimed to emulate the AB350 concept in areas like Buffalo City and Nelson Mandela Bay Metro. "Already progress is being made in Buffalo City with the integration of Mayibuye Transport Corporation with the municipality's public transport plan.

"We will further recapitalise the fleet to meet the growing transport demand," he added.

The MTC, formerly the Ciskei Transport Company, was set up by the former Ciskei government in 1978; it was wholly owned by that government and at its peak operated 350 buses.

The original company was liquidated in 1990 after most of its buses were burnt during the coup that ousted Lennox Sebe. The MTC was formed in the same year, and used the remaining ageing fleet. Today the company is registered as a Government Business Enterprise and operates within the Buffalo City municipal area.

It has been restructured by the department of roads and transport to provide affordable and accessible public transport services throughout the province. To ensure that the group is run professionally, a board of directors is already in place; now the department plans to turn it into a money-making entity.

"We want to reposition the MTC as a parastatal; we want it to be economically viable. Now the department is pumping money into the corporation and last year we bought new buses for Mayibuye," Mhlahlo said.

"It is a gradual process. We already have a board and a new chief executive officer, but we are aware that [it] will take time before we achieve our goal of turning it into a money-making entity."

The department aimed to undertake the same actions for small bus operators in the Nelson Mandela Bay Metro, which is dominated by the Algoa Bus Company.

"We also want to accommodate small operators in the area. The taxi industry will not be left behind. We are well advanced with our taxi recapitalisation programme."

Mhlahlo said that all these efforts formed part of the provincial 2010 Public Transport Plan which linked road, air, rail, maritime, taxi and bus operators and was aimed at improving the province's economy and transport system.