City of Johannesburg signs agreements with two Alexandra Taxi Associations

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Transport MMC in the City of Johannesburg, Funzi Ngobeni, has signed agreements with two Alexandra Taxi Associations, ARMSTA and ATA for the implementation of a new Rea Vaya route that will connect routes from the Johannesburg CBD to Alexandra, Greenstone and Sandton.

The agreements include compensation for economic loss, Bus Operating Company Formation and Participation Agreements.

This will see the removal of 940 minibus taxis from the new Phase One C route, making way for a bus-only route.

“With this initiative, the City is transforming the taxi industry through section 41 of the National Land Transport Act 5 of 2009 which promotes economic empowerment while restructuring transport operators to discourage monopolies and therefore seeing the realisation of the owners of the affected minibus taxis becoming shareholders and manage Rea Vaya buses through a registered company,” said MMC for Transport Cllr Funzi Ngobeni.

The soon-to-be-formed bus operating company will come into full effect once the Bus Operating Company Agreement has been entered into between the City and the affected taxi Industry.