The City of Johannesburg has started an open tender process to appoint a new operator for the Rea Vaya Bus Service. This is despite strong resistance from the current operator, PioTrans which was formed by taxi owners.
They surrendered their permits to make way for the Rea Vaya bus service.
As a compromise, the city gave the taxi owners a 12-year contract to run the buses without an open tender process.
The City of Johannesburg has been accused of dealing with the shareholders of PioTrans in bad faith.
A meeting between the company and City officials descended into chaos, following the City’s decision to advertise the tender for a contract.
PioTrans shareholders say they were under the impression that their contract which ends in January next year, would be extended.
Piotrans appeals for extension
PioTrans was given a 12-year contract to operate the Rea Vaya bus service in the city in 2011.
PioTrans CEO Noge Mochele wants the owners to reap the full benefits of the contract as they have lost their operators’ permits and their taxis were scrapped.
“It is important that our contract be extended so that we can get the true value of what to me is a wonderful initiative. But what you don’t want is the contract to be ended prematurely and people who gave away their licenses for this investment are left destitute.”
First Rea Vaya Bus Operating Company, PioTrans wants its contract extended when it ends: