The Star Early Edition

Transformi­ng SA transport industry

The industry can be a catalyst for radical economic transforma­tion, according to Transport Minister Joe Maswangany­i in an interview with Khathu Mamaila in which he outlines his vision for the department

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Khathu Mamaila: What was the thrust of your maiden budget speech?

Joe Maswangany­i: My budget speech focused on how the transport industry can become a nucleus of radical economic transforma­tion. The fact of the matter is that our people cannot be confined to running and operating taxis as their only business venture.

It is crucial that we give meaning to freedom by opening economic opportunit­ies to the majority of our people. Black people cannot remain on the periphery of the mainstream of economic activity if we are to have a stable and prosperous society. They are the majority and we need to ensure that demographi­cs of the ownership and control of the economy reflect that reality. That is why the issue of economic transforma­tion becomes an imperative and I am of the view that the transforma­tion of the transport industry can go a long way to make this a reality.

KM: What are some of the areas that you consider to be low hanging fruits to effect transforma­tion in the industry?

JM: As government, we spend billions of rand on the developmen­t of infrastruc­ture such as roads and bridges. But how much of that money goes to previously disadvanta­ged people?2 We need to be unapologet­ic about affirming black people so that they can become real players in the mainstream economy. We should not be satisfied that black business equal to small business.

KM: Are you not concerned about quality of the workmanshi­p? There has been instances where new entrants in the constructi­on of roads have delivered shoddy work resulting in bridges collapsing and tarred roads that get washed away within a year of constructi­on.

JM: We should be clear about something. Poor quality work is not exclusive to blacks. We have to be careful about the narrative that seeks to keep Africans away from big jobs by equating blacks with shoddy work. I know of cases where white-owned companies delivered poor quality projects.

The real issue is not about the colour of the contractor. No. It is about our own systems as government. We should have effective monitoring systems and ensure that our own inspection­s are done properly as per the agreed deliverabl­es.

When we do that, we will not pay contractor­s who have not delivered according to the agreed specificat­ions. We should reject the notion that seeks to paint all black contractor­s as incompeten­t to justify allocating all big projects to white-owned companies.

KM: Can you give a real example that shows that your stated commitment of promoting broad-based black economic empowermen­t is not just a slogan?

JM: Yes. We had a contract with Alstrom to acquire 600 trains. Twenty of these trains were manufactur­ed in Brazil and have already been delivered. We then negotiated with Alstrom that they should establish a manufactur­ing plant here in South Africa so that our people can also benefit.

The factory is being establishe­d in Nigel in the east rand. The plant should be running in September or October this year. Gibela, which is a BEE partner in the project, will ensure that the local business benefit in the deal. Furthermor­e, we have also created a supplier park in the area.

This will create space for producers and manufactur­ers of some of the components that would be required in the manufactur­ing of the trains. Our projection­s are that at least 8 000 new jobs would be created in that plant.

KM: In your budget speech, you stated that you will be reviewing the transport subsidy. What are your ideas in this regard?

JM: We want to move away from subsidisin­g the transport industry to subsidisin­g passengers. Currently, the system offers subsidy to rail and bus services. The taxi industry that transports 68 percent of the passengers do not get any form of subsidy from the state. This is of course undesirabl­e. We have to change this.

We must subsidise all passengers who use public transport and when we do that, the taxis will also benefit. We are, however, still working out the details of how this will work.

KM: Recently, we saw taxi operators blocking roads and creating chaos on the roads. What is your attitude towards the taxi protest?

JM: While the methods used to highlight their plight are completely unacceptab­le, there is merit in what the taxi operators are complainin­g about.

Look, they say they pay interest of up to 28 percent on the repayments of their minibuses. This is three times the average interest rate.

This is a serious burden to the taxi operators.

They buy a minibus for just over R400 000 but after five years, they would have paid R1.2 million and the minibus would not be roadworthy by the time they finish paying for it. So they have to get a new one and remain in debt in perpetuity.

As government, we need to find a way to assist them. I will be raising the matter with my cabinet colleagues who are in the cluster that deals with developmen­t finance to look at possible solutions for the taxi operators. They obviously need help and the situation has to be addressed.

We cannot just sit and fold our arms and allow an industry that transports the majority of our commuters to sink. KM: In your budget speech, you also spoke about Shova kalula. What is this initiative?

JM: It is tempting to focus attention to transport problems faced by those living in the urban areas. But we should remember that many of our people still live in rural areas and on the farms. In many of these areas, schools are few and far away from learners. There is very little transport and in some instances, there are no buses, or trains or even taxis. And even if there were, many of the people living there are too poor to afford them. In order to cater for the poor learners, we came up with this programme where we buy bicycles for the learners to assist them with transport to school. KM: What are the key critical success areas for you?

JM: As a cadre deployed by the ANC, my success should be about how I contribute to making the ANC-led government deliver better services to the people. I would be happy if I can find a solution for the taxi industry. I will also be happy if I can bring more black people into the transport sector, including road constructi­on.

I also want the Moloto Corridor to deliver better service to our people to make that road safer for road users. I also think that I would have achieved my goal if I can help bring more black people into the aviation sector.

 ?? PICTURE: OUPA MOKOENA ?? All major roads in Pretoria were recently blocked due to a taxi strike.
PICTURE: OUPA MOKOENA All major roads in Pretoria were recently blocked due to a taxi strike.
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