BACKGROUND

The National Land Transport Act 5 of 2009 (“NLTA”) provides for the development and implementation of the Integrated Rapid Public Transport Network (“IRPTN”) plans by metropolitan cities in order to provide uninterrupted public transport services to commuters.

The City of Tshwane (“the City”) consequently initiated the implementation of the IRPTN plan to improve the quality of lives of its commuters through facilitating an affordable and safe public transport service that will reduce the daily travel time between home and work.

Tshwane Rapid Transit (Pty) Ltd (“TRT”) was incorporated in 2012 as a private company with limited liability in terms of the Companies Act, 71 of 2008. The company is wholly owned by Tshwane Bus Operating Company Trust, which was created to hold the shares of the taxi and bus operators along the Bus Rapid Transit (“BRT”) corridor in Tshwane known as Affected Operators. This shareholding will be transferred to the Affected Operators as and when each phase of implementation becomes fully operational. The shareholding on each phase of implementation will be informed by current market share of each Affected Operator and the compensation model. TRT is managed as an independent private entity.

In November 2014 TRT was contracted by the City to operate the A Re Yeng BRT services within the metropolitan municipal area of the City. TRT and the City concluded a concession agreement known as the Bus Operating Company Agreement (“BOCA”) which governs the relationship between the City and TRT. The City of Tshwane is responsible for the monitoring of the service, fee collection, and tracking of TRT’s performance based on the agreed service level standards.

A corporate governance structure was established as an interim arrangement for the daily operations of TRT until the handover to the Affected Operators. TRT has its own board, management and staff. Its plan is to provide the public with services that are pleasantly efficient and commercially viable for the benefit of the Affected Operators.

TRT buses are owned and managed by the company.