Tuesday, April 21, 2009

Weblog
Jozi
22 April 2009

There is a quaintly Luddite quality to the South African Taxi Industries belated response to the impending introduction of the Bus Rapid Transport System and its impact on their revenue stream. In the general babble it is difficult to evaluate whether much consultation took place, and quite possibly it didn’t; probably to forestall an inevitable opposition to an inevitable event.

For offshore readers South Africa’s/Azania’s most important cities: Cape Town, the national legislative capital, Tshwane, the national executive capital and Jozi [The Big J] : the magnificently materialistic financial capital of the continent, have for decades been dependent on a savage breed of entrepreneur: predatory in every sense of the essential capitalist spirit; for the mass movement of less affluent citizens who need to commute daily to and from work, and perform other chores.

Globally prestigious newspapers like for instance the economist have over the decades written paeans about one of the world’s most successful [so-called] Black capitalist developments and by and large it is a justified source of pride.

It leapt into a gap presented by the disintegration of the sclerotic Apartheid era cronyist dominated publicly sponsored mass transport system and provides fast, efficient, time dependent citizen movement. They are also terrifying to fellow road users, through whose space many hurtle with reckless abandonment,[and always did: my childhood was shot through with the reality of crossing the road in front of my parents house, to the park beyond, dodging speeding taxing driving lunatics in big Plymouths, Dodges, Chevrolets and Ford Galaxies.] The annual death toll from minibus taxis crashes with other road users, or just passing furniture, probably makes up a large part of the annual road slaughter that is part and parcel of an era of mass movement. Personally I prefer to use routes that are less populated with minibus taxis unless I feel specifically, the need for an adrenaline rush.

Nowadays it is an over traded and frequently violent industry in the ‘slippery slope’ stages of its product life cycle. It is being forced by legislative fiat to modernise its fleet, at about the time in a product life cycles stage where it is over -commoditised and the return on capital is negative. It managed to see off the prospective competition from the new high-speed rail line being created between Jozi and Tshwane by seeing to it that it only drew audiences from the private car sector. It is now faced with competition from an unanticipated source; a mass movement bus rapid transit system that runs on dedicated high-speed routes that are being carved out on all the major arteries serving the Big J [presumably all over Tshwane and Cape Town too.].
One remembers that there was a time when stagecoaches kept the cities and the citizens lined. They fell prey to the coming of trains in the late 19th century. Presumably ‘they did not go quietly’ into that dark night. The same is true for the taxi industry facing regulation and competition. There has been violence, sticks are routinely waved, shots are routinely fired in rage, frustration or whatever and now the new President has agreed to simply stop the whole business for awhile until the election is over [technically he is only the new president after the election, which is a foregone conclusion unless something remarkable happens over the next 48 hours. So I am making an assumptive statement].
Of course next week when the election is over the BRT process will continue, Contracts are signed, work is in progress; the entire region is being routinely disrupted by a battery of roadwork programmes, that are well under way; and are fortuitously helping to propel us along the upper surface of this Great Global Recession, gripping the planet currently. To stop this BRT process now could have catastrophic financial repercussions and would undoubtedly impact on exchange rates and market confidence.

Then there is the question as to whether the interests of the State are synonymous with those of an unelected business consortium? We await Mr Z’s position after the election when I am sure the entire matter will be delegated to people who will simply carry on regardless. This is a pattern of behaviour that has become predictable and impervious. Why abandon a winning formula? Especially when you have just been given what, subject to an unanticipated “Lie” factor, looks to be an 80% majority.

The real answer here is that the minibus taxi has reached its commoditisation date and must yield to the more efficient system. That does not by any means mean the end of the taxi industry. Rather that the smart money will move to something more lucrative. Others will search out niche markets and cross town routes linking parts of the city that currently require multiple journeys to reach. They will have to practice running around the web rather than down the main lanes to the hub and out again, we are in any event no longer that type of city really… We are an edge city and most city planning hasn’t worked that out yet.

A big competitive issue will be to improve the quality of the journey and develop more credibility and exploit the natural advantages the minibus has over the BRT; Nimbleness, flexibility, linking routes between BRT lines. That is how you deal with market competition… not by demanding protection from progress.

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