Directorate: Contract Management

The functions of the newly formed Directorate: Contract Management have always been a central part of the Public Transport Directorate when it was established in 1997. The work of the section has been lauded nationally. Also, the work of the subsidised public transport contract management section, is recognised as an example of best practice in South Africa. With the restructuring of the Department, the role of the section was expanded and it became the Contract Management Directorate. With the appointment of Mr. Chris Stretch as Director, the Directorate continues in providing excellent and innovative leadership in the public transport contract management field in South Africa.

• Subsidised Public Transport
  The Contract Management Directorate is recognised nationally as the leader in public transport subsidised contract management. Over the past year, subsidised transport has provided commuters with over 51 million subsidised passenger trips, which has covered over 30 million kilometres. The Subsidy has increased substantially since 1997 when the KZNDOT delegated the subsidy management function to the province. Prior to 1997, the subsidies had increased at below inflation levels for several years resulting in a decline in the industry. The increase occurred as the Directorate facilitated the restructuring of the subsidised bus industry. This was meant to bring about empowerment and the recapitalisation of the bus fleet, and has improved safety and reliability of the subsidised bus fleet. It has also stopped, and in many cases reversed, the decline in patronage that had been seen in previous years. The Directorate will continue to ensure that KwaZulu Natal receives their equitable share of the national public transport subsidy budget in order to ensure prosperity through mobility in the province.
  
  The Contract Management directorate is very committed to ensuring that we provide first class public transport to the commuters in our province. In saying this, it is a pleasure to mention that a total of 112 new buses were introduced into service. An estimated additional 80 buses are to be introduced this coming year. This reduced the average age of our subsidised bus fleet, to less than seven years, thus ensuring that newer, safer, more comfortable services are delivered to the community.
  
  This has many benefits, with the commuter being obviously the main benefactor. But there are many other spin offs, such as job creation in the bus manufacturing industry, as well as more environmentally friendly vehicles being introduced.
  
  
• KwaZulu Transport
  In 2001, KwaZulu Transport, a corporatised parastatal bus company owned by the Department of Economic Development and Tourism, went into liquidation and was sold to the private sector. A commission of enquiry was instituted in 2002 to investigate the reasons behind the collapse of KZT. This was done because of allegations being levelled against, amongst others, the KZNDOT of maliciously causing the collapse of the company. The commission of enquiry found no evidence to show any malice on the part of the Department and exonerated the KZNDOT from any blame with regards to the collapse of KZT. Despite the setback suffered by KwaZulu Transport (KZT), which was under liquidation, the company was sold as a going concern without one days break in service to the community. The main challenge this past year was for operators to reinvest in the fleet they inherited from KZT. The new owners also needed to ensure that the fleet was brought back into a condition that was acceptable to both the communities and the Department of Transport.
  
  
• Black Economic Empowerment
  Of the 1388 subsidised buses, (excluding Durban Transport), 100 % of buses are owned and operated by Previously Disadvantaged Individuals (PDI). Of the total 160 buses are owned and operated by Black Economic Empowerment businesses consisting solely of members of the Preferential Population Group (PPG). Prior to 2002 only 32 buses were owned and operated by BEE businesses. Also before 1999, only 10 buses were owned and operated by BEE businesses. Since 2002, through the concerted efforts of the Contract Management Directorate, there has been a 400% increase in BEE participation in the subsidised bus contracts. Over the past four (4) years, the Public Transport Directorate facilitated the increase in black economic empowerment in the subsidised contracts by 1500%.