Fin24

MyCiti buses running at a loss

2012-05-28 07:53

Cape Town - The City of Cape Town has spent R175m running the Myciti bus service since the 2010 Soccer World Cup, compared to an income of R35m, the Cape Times reported on Monday.

The city said that despite the huge deficit, the service is a "social project that will benefit the poor and improve the quality of life for all citizens".

Transport mayoral committee member Brett Herron said the national transport department supports the project and its funding relieves the burden on ratepayers.

From 2010, the projected cost for managing and maintaining the stations, including revenue collection and insurance, was R55m. The next biggest costs were the direct running costs of buses at R43m, and overhead costs at R39m.

"All services, both public and private, have to first invest substantially before they are able to break even," Herron said.

"The percentage of cost recovery has increased from month to month as passengers have increased."

 

Comments
  • Emmanuel - 2012-05-28 08:07

    Feasibility study vital

      Fussed - 2012-05-28 09:06

      Are you two from stutterheim by any chance

      Gareth - 2012-05-28 09:52

      I dont mind paying taxes to subsidize something like this (more so than e-tolls). Public transport is vital in this country, so running at a R140m loss is not then of the world until this country gets its head around making use of this infrastructure rather than 1 man 1 car thinking.

      Gareth - 2012-05-28 09:57

      I dont mind paying taxes to subsidize something like this (more so than e-tolls). Public transport is vital in this country, so running at a R140m loss is not then of the world until this country gets its head around making use of this infrastructure rather than 1 man 1 car thinking.

      Gareth - 2012-05-28 09:57

      I dont mind paying taxes to subsidize something like this (more so than e-tolls). Public transport is vital in this country, so running at a R140m loss is not then of the world until this country gets its head around making use of this infrastructure rather than 1 man 1 car thinking.

      Rob - 2012-05-28 11:45

      Made your point Gareth.

      Rob - 2012-05-28 11:46

      Made your point Gareth.

  • Emmanuel - 2012-05-28 08:07

    Feasibility study vital

      sean.redmond3 - 2012-05-28 08:19

      Should have been done before implementation.

      sean.redmond3 - 2012-05-28 08:19

      Should have been done before implementation.

      Fussed - 2012-05-28 09:06

      Are you two from stutterheim by any chance

      sean.redmond3 - 2012-05-28 10:18

      Should have been done before implementation.

  • Andres - 2012-05-28 08:27

    Bottom line: Public transit does not make a profit, anywhere in the world. It is a service, not a profit-making business. We scream when roads are tolled to make a profit, so we would scream if public-transit was there to make a profit. Remember: They have, for most of the last year, only had one trunk route open with minimal feeder routes. Once the feeder routes and additional trunk routes come online, many more people will be able to effectively use the service. So, I hold my judgment till then. Obviously, it should not be making a substantial loss, but it's too early of days one year on to cast judgement on the viability just yet.

      wesley.bischoff - 2012-05-28 08:45

      It is an awesome service. A very metropolitan way to get around this wonderful city at a decent price, with buses always full :) the only issue i have is the beeping sound made when the doors open and close... waaay to loud lol

      stefan.vanderspuy - 2012-05-28 08:59

      You're right, even the the most efficiently run public transportation services, e.g. the Seoul Metro, are lucky if they break even or make a small profit. They rely on Government support to provide a service to the public. The first years are the biggest loss-making ones. I just hope the City of Cape Town persists with this initiative. If just one city in this country can boast with a good public transportation system, it will be a good start.

      stefan.vanderspuy - 2012-05-28 08:59

      You're right, even the the most efficiently run public transportation services, e.g. the Seoul Metro, are lucky if they break even or make a small profit. They rely on Government support to provide a service to the public. The first years are the biggest loss-making ones. I just hope the City of Cape Town persists with this initiative. If just one city in this country can boast with a good public transportation system, it will be a good start.

  • Andres - 2012-05-28 08:27

    Bottom line: Public transit does not make a profit, anywhere in the world. It is a service, not a profit-making business. We scream when roads are tolled to make a profit, so we would scream if public-transit was there to make a profit. Remember: They have, for most of the last year, only had one trunk route open with minimal feeder routes. Once the feeder routes and additional trunk routes come online, many more people will be able to effectively use the service. So, I hold my judgment till then. Obviously, it should not be making a substantial loss, but it's too early of days one year on to cast judgement on the viability just yet.

  • Andres - 2012-05-28 08:28

    Bottom line: Public transit does not make a profit, anywhere in the world. It is a service, not a profit-making business. We scream when roads are tolled to make a profit, so we would scream if public-transit was there to make a profit. Remember: They have, for most of the last year, only had one trunk route open with minimal feeder routes. Once the feeder routes and additional trunk routes come online, many more people will be able to effectively use the service. So, I hold my judgment till then. Obviously, it should not be making a substantial loss, but it's too early of days one year on to cast judgement on the viability just yet.

  • herbert.plessis - 2012-05-28 08:33

    Could it have anything to do with the taxis refusing to take passengers to the MyCiti pick up points? Could it have anything to do with taxi's, and their associated cohorts threatening those waiting at MyCiti bus stops? Could it have anything to do with taxi owners threatening those who take the MyCiti service from the Airport to town?

  • colin.dovey - 2012-05-28 08:34

    Why is everyone stuttering this morning? Must be the cold weather....or the cost of everything going up so alarmingly...:-)

  • colin.dovey - 2012-05-28 08:35

    Why is everyone stuttering this morning? Must be the cold weather....or the cost of everything going up so alarmingly...:-)

  • myrna.andrews1 - 2012-05-28 08:36

    If they hadn't implemented the card system more people would be using the buses. I, for one, would use it if I could pay when I need to, on the bus, instead of being forced to buy pay upfront with the card system.

  • Klipkop - 2012-05-28 08:36

    2010 world cup? its now 2012 and they are still not done with construction in Table View area! Someone needs to fired for this mess and that ugly bed pan stadium.

  • myrna.andrews1 - 2012-05-28 08:36

    If they hadn't implemented the card system more people would be using the buses. I, for one, would use it if I could pay when I need to, on the bus, instead of being forced to buy pay upfront with the card system.

  • colin.dovey - 2012-05-28 08:40

    Why is everyone stuttering this morning? Must be the cold weather....or the cost of everything going up so alarmingly...:-)

  • wesley.bischoff - 2012-05-28 08:44

    It is an awesome service. A very metropolitan way to get around this wonderful city at a decent price, with buses always full :) the only issue i have is the beeping sound made when the doors open and close... waaay to loud lol

  • wesley.bischoff - 2012-05-28 08:44

    It is an awesome service. A very metropolitan way to get around this wonderful city at a decent price, with buses always full :) the only issue i have is the beeping sound made when the doors open and close... waaay to loud lol

  • Allen - 2012-05-28 09:00

    We pay enough tax in this Country for all bus services to be free-of-charge! Most other cities in the world offer a free bus service which routes in and around the city.

  • Allen - 2012-05-28 09:00

    We pay enough tax in this Country for all bus services to be free-of-charge! Most other cities in the world offer a free bus service which routes in and around the city.

  • capetownphotographer - 2012-05-28 09:06

    Tax the taxis.

  • danny.levin.351 - 2012-05-28 09:10

    This was known while they were still construnting the first set of roads for it. they can either charge realistic prices for the service to sustain itself ( which were going to be unaffordable and just as expensive as driving your car) or keep subsidizing it from our tax money. As is the case with idiots who can't plan things properly can willnot admit they are wrong and cancel projects that are doomed to fail, they abuse the tax-payer (rate payers in Cape Town) money. ANd still the fatcats in the Myciti management and owners keep takign nice salaries and bonuses....

  • Piet - 2012-05-28 09:35

    Easy Get rid of all the deathtrap TAXI'S... Problem solved...

  • Piet - 2012-05-28 09:37

    Get rid of the taxi's and no more problems...

  • Gareth - 2012-05-28 09:52

    I dont mind paying taxes to subsidize something like this (more so than e-tolls). Public transport is vital in this country, so running at a R140m loss is not then of the world until this country gets its head around making use of this infrastructure rather than 1 man 1 car thinking.

  • Loo - 2012-05-28 10:03

    Difference between Capetown and other Cities is that Capetown AT LEAST knows what the figures are and are monitoring it .. Yes they run at a loss on this project , but it does serve an important purpose ... I guarantee you that the project will be turned around .. how else .. its competent people running it.

  • Loo - 2012-05-28 10:03

    Difference between Capetown and other Cities is that Capetown AT LEAST knows what the figures are and are monitoring it .. Yes they run at a loss on this project , but it does serve an important purpose ... I guarantee you that the project will be turned around .. how else .. its competent people running it.

  • ismail.lunat.35 - 2012-05-28 12:59

    "social project that will benefit the poor and improve the quality of life for all citizens". Except the citizens living in Mitchelle's Plain and the areas populated with mainly non-white citizens.

  • ismail.lunat.35 - 2012-05-28 12:59

    "social project that will benefit the poor and improve the quality of life for all citizens". Except the citizens living in Mitchelle's Plain and the areas populated with mainly non-white citizens.

  • ismail.lunat.35 - 2012-05-28 13:00

    "social project that will benefit the poor and improve the quality of life for all citizens". Except the citizens living in Mitchelle's Plain and the areas populated with mainly non-white citizens.

  • Andre - 2012-05-28 16:14

    This is a great social project, but the excess still get taken from the tax payers. What about the millions that goes to ABSA bank every time a consumer load money onto a MyConnect card? This is the part of the system that should be revised. Why doesn't ABSA also invest in this as a social project?

  • lydonmcg - 2012-05-28 17:57

    It's a public transport service. It shouldn't have to run at a profit. And that is especially true when the service is still new and growing with passengers every month, and the large majority of the routes are still under construction. What on earth do people expect?

  • lydonmcg - 2012-05-28 17:57

    It's a public transport service. It shouldn't have to run at a profit. And that is especially true when the service is still new and growing with passengers every month, and the large majority of the routes are still under construction. What on earth do people expect?

  • Dawie - 2012-05-29 12:49

    This does not surprise me in the least, as many of the minutiae of the project suggest a complete failure to understand the nature of pedestrian movement, and the crucial relationship of public transport to pedestrian movement. The pre-purchased card system alone is capable of making a white elephant of the system, as it makes an ad-hoc or tentative introduction to the system impossible. By requiring a prior commitment-decision (and R22+R5+inconvenience) to buy into the system, it fails to respond to the random, impulsive nature of pedestrian movement. Thus it will fail to become a broadly-supported system of general urban mobility, and remain yet another official commuters' lift-club alongside all the other official commuters' lift-clubs that already exist; the only difference being that this one was much more expensive to implement. Ad-hoc ticket sales at the point of use are crucial to the success of the system. The way to save the system is either to handle cash on the buses or to provide ticket vending machines at each and every stop. If the City can have parking marshalls both handling cash and equipped with fancy electronic gadgets, I submit that their excuses in this regard are rather lame.

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