Abstract
D.Phil.
The purpose of this thesis was to assess the impact of the new public transport policy direction,
with specific reference to competitive tendering, on the transformation and restructuring of the
South African commuter bus industry. The main objective of this study was to develop a
methodology to guide the transformation and restructuring of the bus industry. This main
objective was achieved through the following secondary objectives:
A comparison between international transforrnation experiences and the South
African bus industry in an effort to develop a methodological basis for the change
process;
An assessment of the strategic gap in an effort to determine the 'focus of the
change process; and
The development of a detailed change strategy to guide the transformation
process.The policy of spatial separation on racial grounds has played a major role in the development of
the bus industry. The industry had shown consistent growth until 1982, but since then a
considerable portion of the bus market share was lost to the combi taxi industry. A major
conclusion of the study was that the new South African public transport policy is based on
international best practices as well as the needs of local stakeholders and the country at large.
The focus on integration of planning, modes and resources is of particular significance. Within
an integrated transport network the commuter bus will have the opportunity to optimise its
potential as safe, reliable and effective mass transport mode.
Based on a thorough multiple analysis of the bus industry against various strategic evaluation
models, the following major gaps were identified:
Ineffective application of public transport modes, especially the commuter bus ,
in accordance with their unique operating characteristics;
Pertinent skills deficiencies at operator and institutional level to successfully
manage change in the new competitive environment;
Efficiency of the present operations which is well below the required standard to
secure tenders;
Insufficient knowledge of and preparation for the tender system and its
requirements;
Insufficient actions to empower members of the previously disadvantaged
communities; and
Old and ineffective policies, systems and procedures.
In support of the strategic gap analysis, various evaluation techniques were used to determine
the best possible strategic alternatives. It was found that fundamental change is required to
position the bus industry for future challenges. Long term objectives should focus on specific
market objectives for the bus in transport networks, gaining of market share, securing alliances,
empowerment of small operators and improving effectiveness. The generic strategy to secure
tenders should be primarily a low cost leadership strategy. The essence of turnaround strategies
should focus on cost reduction, which should largely be achieved through increased efficiency.
Other grand strategies include diversification, market development, joint ventures and strategic
alliances.
Specific short term objectives are to formalise and structure the SABOA Development
Foundation as primary vehicle for the empowerment of small and medium sized entrepreneurs
in the transport industry and to facilitate further cooperation in the industry to share expertise and
resources. Guidelines to adjust operator strategies and to assess empowerment models are also
provided to guide operators in the transition process. It is recommended that change methodology
be formalised to assist operators in the transition process.
Finally it can be concluded that the bus industry can play a leading role in the future transport
dispensation if appropriate pro-active action is taken. There is a huge strategic gap between the
desired and expected outcomes which requires concerted efforts by the industry as well as the
three spheres of government. It is essential that the Moving South Africa strategy be
implemented as primary driving force behind the change process.