Leeto La Polokwane Phase 1A Operations “Restraint of Trade” Compensation – Nominated and Shortlisted Public Transport Operators

Leeto La Polokwane is the City of Polokwane’s Integrated Public Transport System, planned in line with the 2007 Public Transport Strategy and Action Plan, under the guidance of the National Department of Transport. One of the implementing principles of the Integrated Rapid Public Transport Networks (IRPTNs) is that existing public transport operators should not be left worse off, they should be integrated into the operations and that competition with the system should be reduced. This necessitated negotiations between the City and Affected Operators, which resulted in a concluded restraint of trade agreement, in which 125 affected operators will be compensated for their loss of business.  This means, 125 minibus taxi operators on the Leeto la Polokwane Phase 1 A affected routes will be compensated for surrendering their Business Rights in the form of a) Operating Licences (OLs) and b) the linked minibus taxi vehicle.

The Leeto La Polokwane system is implemented in a phased approach, Phase 1 A of the system is planned to go operational in 2020. In terms of the Phase 1 A implementation,  the Municipality has engaged in negotiations with the Florapark Pietersburg Taxi Association (FPTA), Seshego Polokwane Taxi Association (SPTA) and Westenberg Taxi Association (WTA), who are directly affected by the system footprint. Operations for this phase will consist of a 36 bus fleet,  comprising of 12-meter and 9-meter buses. Before operations, a total of 125 minibus taxis has to be removed and their respective OLs cancelled.  The split of the vehicles to be removed is depicted in the table below: