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MyCiti buses running at a loss

May 28 2012 07:53
Sapa

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."

 
cape town  |  myciti  |  transport

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