Taxi operators move into hotel business

The alliance, which represents an estimated 60 000 - 70 000 taxi operators in SA, has signed a memorandum of understanding with Langa Sun Resorts Hotel to build three new hotels in Durban, Cape Town and Johannesburg at a total cost of R1.5 billion.

Taxi operators will, through their trust fund, own 90% of the new hotels, while the Langa chief executive Mandla Nxumalo will keep the balance.

NTA general secretary Alpheus Mlalazi said the capital would be raised from its structures over the 28-month period. Construction on the Durban hotel is scheduled around February next year.

"We want to acquire assets that we would use as collateral where ever we borrow money for the benefit of the members. Secondly, members will benefit directly from the hotel operations," he said.

In another development, NTA has adopted a franchising model, which seeks to turn around most people's image of the taxi industry.

"[Taxi] operators are unable to maintain their vehicles properly because of affordability problems. These include things such as high cost fuel, tyres and spare parts. We want to ring fence all those through a franchise that would be owned by the taxi industry.

NTA taxi operators and affiliates will own the bulk of the franchise at 85% and 10%, respectively, while 5% will go to potential investors.

The alliance also blasted Transport Minister Sbu Ndebele, calling for his resignation over alleged incompetence. "The industry, which transports between 65% and 70% of the commuting public in the country, remains unsubsidised, whereas other modes of transport are," Mlalazi said.

He added that the taxi registration process, which sought to eliminate turf wars along routes, had now stalled.