9.1
9.1 Purpose of the OLS
The OLS is developed from analysis of the CPTR data surveyed in 2003/2004.
The primary purposes of the OLS are:-
¾ to act as a framework for the eThekwini Transport Authority (ETA) to give direction to the Operating Licence Board (OLB) on the issuing/amendment or withdrawal of taxi or bus operating licences.
¾ to provide a tool for the ETA to implement the requirements of the Public Transport Plan.
The documentation in this section of the ITP is supported by a separate comprehensive analysis report.
9.2 General Principles
This section sets out key conditions for granting of an operating licence for bus or minibus taxi operations. These conditions include some of the key requirements set down in national legislation (NLTTA 2000) which the provincial Operating Licence Board (OLB) will apply in reviewing applications. As such these requirements/policies are also reflected in the ETA’s policy.
The following policy relates to general principles that set the framework for consideration and allocation of road-based public transport licences.
9.2.1 Licence Allocation Principle
Allocating new licences or required changes to existing is clearly the responsibility of the Operating Licence Board (OLB). In the past the taxi industry in some locations has attempted to control which associations should be allocated licences for new service areas. This creates potential for conflict and is counter-productive in the delivery of a properly rationalised and restructured public transport system.
9 OPERATING LICENCE STRATEGY (OLS)
Purpose of OLS
Principles
eThekwini Public Transport Plan Operating Licence Strategy
9.2
Problems can also arise when public transport operators take the viewpoint that they have a right to be allocated a licence.
The fundamental principle which address this issue is:-
No. 1 The responsibility for determining the number of public transport licences required vests with the Transport Authority.
The current problems of over-trading in some areas and the need to restructure and rationalise the public transport system and services will necessitate a carefully structured programme of repositioning and in some instances removal of existing licences.
Outstanding issue:
The ETA needs to be able to re-position operators in addressing over-trading and under-trading in different areas as well as to allocate licences in new service areas.
In order that such service changes do not introduce conflict with those operators directly affected, or with those who perceive themselves to be affected, a process must be developed which adequately addresses these potential issues and any others that could be associated with such changes.
New licences to new operators will not be issued except under exceptional circumstances until such time as the problems of over-trading and the need for re-positioning have been dealt with.
9.2.2 Licence Validity Period
In consideration of the validity period for new licence applications the ETA will give due regard to:-
¾ Current and expected trends in utilisation of the route(s)
¾ The efficiency of the proposed services in meeting user needs
¾ Where applicable, in terms of planning recommendations for the future public transport system, the likelihood that the particular mode of public transport may be replaced by another mode
Allocation of licences
Assessment of current/
future needs for licencing New Licences
eThekwini Public Transport Plan Operating Licence Strategy
9.3
¾ The likelihood that the public transport service may become the subject of a commercial service contract or a subsidised service contract
Policy in this regard is:-
No. 2 As per the requirements of the NLTTA 2000, no new operating licence will be issued for a period longer than five years, except where the licence is issued pursuant of a permit allowed for in terms of provincial legislation, as in the case of a seven year subsidised bus contract.
9.2.3 Transfer of Licence The ETA’s policy in this regard is:-
No. 3 The ETA will not support applications for the transfer of an operating licence from the holder of the operating licence to another person, for which the holder of the operating licence has been providing the service for less than a period of one year.
Where transfers are permitted the first option for purchase belongs to the ETA.
In the case of the taxi industry, the person to whom the operating licence is transferred must be registered as a member of an association or registered as a non-member. To avoid potential conflict, the ETA will recommend that the person to whom the operating licence is transferred belongs to the same taxi association(s) as those operators that are currently operating on the route.
9.2.4 Number of Taxi Routes per Licence Outstanding Issue:
The system of route rotation where minibus taxis each have an opportunity to operate on the more profitable routes within a set of routes is problematic and needs to be addressed as part of a longer term licence strategy.
Licence validity period
Route rotation
eThekwini Public Transport Plan Operating Licence Strategy
9.4
9.2.5 Preparation of Recommendations
Section 9.4 addresses the process of licence approval in respect of the interaction of the Operating Licence Board and the ETA. Within this context the ETA’s policy on the preparation of licence recommendations is as follows:-
No. 4 The ETA will make its recommendation and any representations it considers fit, having due regard to the Passenger Transport Plan and any other relevant investigations carried out, and submit them to the OLB within the required period.
The ETA’s recommendation will address:-
• rank / holding areas availability at origin and destination
• preferred mode on route/corridor
• utilisation of existing services
• long term planning requirements
9.3 Conditions for Granting of Licences
The following policy relates to conditions that will need to be met for a licence to be approved. All regulations within the Road Traffic Act (1996) will need to be complied with and are not repeated in the PTP.
9.3.1 Person Qualifying for Operating Licence
In line with the requirements of the NLTTA 2000, ETA policy is:-
No. 5 Except on the conversion of a taxi permit to an operating licence, no person has a right to be issued with an operating licence. An operating licence in respect of a minibus taxi type service may only be granted to a person who is either:-
- a member of a provisionally or fully registered association
- a registered non-member
Registered membership
for minibus taxi licence Preparation of recommendations
eThekwini Public Transport Plan Operating Licence Strategy
9.5
- a person who has applied for registration as a non-member and has been granted a certificate contemplated in section 113(2) of the NLTTA
No. 6 Applicants for bus and minibus taxi licences must show proof of or the ability to secure passenger liability insurance from a recognised insurer.
Operating licences can only be uplifted on presentation of proof of passenger liability cover.
The operating licence will become invalid if at any stage passenger liability cover is terminated and it is the responsibility of the operator to immediately inform the OLB of termination of cover.
9.3.2 Membership per Route
No.7 A person applying for a new minibus taxi operating licence, on an existing route, must belong to the same association(s) as the operators currently providing service on that route.
9.3.3 Vehicle Standards and Equipment
The following policies apply to vehicle standards for approval of a licence, replacement of a vehicle and requirements for special equipment.
No. 8 All vehicles must comply with SABS or SANS standards and specifications.
No. 9 Where the holder of an operating licence wishes to replace the vehicle that is specified in the operating licence with another vehicle with the same passenger capacity, the holder must apply to the Board for approval on the basis that the replacing vehicle meets all requirements in the original licence and the quality of service is not affected.
No.10 Special equipment (eg. Special needs access) attached to approval of a licence must be installed and operational before commencement of service.
Passenger insurance
SABS / SANS