R 081325Z SEP 09
FM AMCONSUL JOHANNESBURG
TO SECSTATE WASHDC 6598
INFO AMEMBASSY PRETORIA 
AMCONSUL JOHANNESBURG

UNCLAS JOHANNESBURG 000133 
 
 
E.O. 12958: N/A 
TAGS: ELAB ATRN ECON SF
SUBJECT: JOHANNESBURG BUS RAPID TRANSIT (BRT) ROLL-OUT A SUCCESS, 
WITH MINOR LABOR UNREST 
 
¶1.       The City of Johannesburg launched its long-awaited Bus 
Rapid Transit (BRT) system on August 30, 2009.  Independent taxi 
operators staged a mild protest with a `go slow' on August 31, 
and there were reports of isolated  acts of violence over the 
following three days which police believe were perpetrated by 
individual taxi operators.  This first phase of the BRT roll-out 
had been postponed in June 2009 following an outcry against the 
BRT system from the taxi operators and a more organized campaign 
of violence and protest.   The full BRT is expected to be 
implemented no later than January 2010. 
 
Background 
--------------- 
 
¶2.        The BRT coaches, also known as Rea Vaya, each carry up 
to 90 people.  Rea Vaya stations are located along major 
Johannesburg commuting routes, spaced about half a kilometer 
apart.  The two billion rand (USD 254 million) BRT project was 
approved by Johannesburg City in 2006; this was modeled on 
municipal bus systems in cities like Bogota and Mexico City. 
The country-wide BRT system was proposed by participating South 
African cities as part of their local transport plans, but it 
also forms part of South Africa's broader national strategy to 
create integrated public transport systems.  Johannesburg is the 
first city to get the system running, but Cape Town, Port 
Elizabeth and other cities plan their own BRT networks.  The 
first phase of the Johannesburg BRT is expected to raise 1.5 
billion rand (USD 195 million) in annual revenues.  To win 
buy-in from the powerful independent taxi (minibus) operators, 
BRT and municipal officials have offered to share approximately 
150 million rand (19.5 USD million) of BRT revenue with 
participating operators. 
 
¶3.       Municipal officials recognize that the BRT system will 
displace taxi operators working on the routes earmarked for the 
BRT.  Approximately 575 taxi operators will be affected when the 
full BRT is in place.  The proposed Johannesburg City plan is 
that taxi owners and operators become part-owners of the Bus 
Operating Companies (BOCs) that will run the BRT and be 
contracted to the city.  The debt for the buses will also be 
passed on to the BOCs. 
 
Taxi Industry goes on strike 
---------------------------------- 
 
¶4.        In April 2009, thousands of taxi drivers embarked on a 
one-day strike against Johannesburg's BRT system.  They accused 
the municipal government of `stealing' business from the taxi 
industry.  The strike was not coordinated with or through the 
powerful Congress of South African Trade Unions (COSATU).  Taxi 
operators blocked major highways and routes; sporadic violence 
around town was reported.  The South African Department of 
Transport and COSATU criticized the taxi operators for 
disrupting traffic and putting the lives of commuters at risk. 
The former Minister of Transport (and now Minister  of Justice) 
Jeffrey Radebe publicly stated that the BRT will be a `win-win 
situation' for all South Africans, arguing that the taxi 
operators would suffer no loss of profit or jobs.  Following the 
protest and violence, Johannesburg shelved plans it had to roll 
out the BRT system prior to the recently-completed FIFA 
Confederations Cup tournament (in June 2009), preferring instead 
to start Rea Vaya without the world's attention on South Africa. 
 
¶5.       On August 17 the South African National Taxi  Council 
(SANTACO) issued a strike notice to protest the new public 
system on August 27.  The City of Johannesburg vowed to go ahead 
with the rollout on August 30, despite the SANTACO threat of a 
national strike.  Following ongoing negotiations between taxi 
operators and city officials, the strike was called off by the 
South African Taxi Association (SATA); however, SANTACO and some 
taxi operators did conduct a `go slow' on Aug 31, the first work 
day after the rollout, which affected some commuters along 
non-BRT routes and outer Johannesburg areas. 
 
Violent actions against the BRT 
---------------------------------------- 
 
¶6.        On September 2, 2009 assailants shot at two BRT buses 
in Soweto, despite the heavy security presence of 350 soldiers, 
police officers and metro cops assigned to BRT stations and 
along the bus routes.  Police have not identified the shooters, 
but voiced suspicion that independent taxi operators were 
involved in the incidents.  In addition, there were isolated 
reports that some taxis blocked individual BRT routes near the 
Noord Street taxi station.  Police arrested one taxi driver and 
impounded his taxi; no other arrests have been made in relation 
to the shootings.  Following the September 2 events, the City of 
Johannesburg has committed itself to maintaining significant and 
prominent security measures in support of the BRT system. 
 
Taxi industry not pleased with the absence of government's 
funding model 
--------------------------------------------- -------------- 
 
¶7.       South African National Taxi Council (SANTACO) 
spokesperson Phillip Taaibosch told Consulate Labor specialist 
that government had not adequately explained to independent taxi 
operators how the Rea Vaya bus rapid transit would compensate 
those taxi owners who traded in their business for a stake in 
the new system.  Taaibosch maintained that government has not 
produced a funding model of the BRT project outlining its 
sustainability and its ability to integrate taxi operators. 
According to Taaibosch, the BRT model is built on taxi operators 
surrendering their taxi operation licenses for a stake in an 
operation company that will run the new bus system; the taxi 
operators are concerned with the city's lack of clarity on the 
financial implications for the taxi industry. 
 
¶8.       Lisa Seften, Johannesburg's Executive Director of 
Transport, stated that the city would guarantee a minimum income 
to the operating company created to run the buses.  Seften noted 
that the city would make its financial model public only after 
concluding negotiations with the taxi associations affected by 
the BRT roll-out.  According to Seften, there are 10 separate 
taxi associations in Johannesburg, of which nine had signed up 
to negotiate with the city. 
 
¶9.       Coment: 
The BRT system roll out on August 30, 2009 was preceded by 
strong resistance from SANTACO.  However, nine other taxi 
associations are already involved in the negotiations process, 
and the City of Johannesburg may yet conclude successful 
financial negotiations to win their buy-in.  SANTACO does not in 
principle oppose the BRT system, but the operators are not yet 
willing to commit themselves to a deal that has no clear 
financial plan for the industry.  The City of Johannesburg is 
committed to the BRT system.  SANTACO, as the only taxi 
association out of the ten South Johannesburg taxi associations 
not yet on board, will eventually have to work within the 
Johannesburg City proposal.  Both sides realize that, with only 
nine months to go until the 2010 FIFA World Cup, the 
negotiations between the City of Johannesburg and the Taxi 
industry must not be delayed any further.  City and national 
security officials have made clear that they will not tolerate 
violence by the taxi associations, and will maintain strong 
security measures in support of the BRT. 
 
 
PASSEN