Current Edition >> Archives Section >> Leading Stories >> 17 - 31 October 2003

Huge business complexes at taxi ranks coming for the Free State

Together with the imminent implementation of new taxi vehicles in South Africa by the national Dept. of Transport, 120 retail and service complexes to a total cost of some R2,5 billion are to be constructed nationwide as from November 2003, three of which would be in the Free State. These shopping and services complexes would be of a huge magnitude and in grand style, as being depicted in the artist's impression above. As such these planned complexes are to introduce a new concept in retailing and servicing also in the Free State and consequently would open up a new set of entrepreneurial opportunities.

Empowerment property development group Taxiprop-BR was appointed in December last year as the South African National Taxi Council's (Santaco's) development partner to transform existing taxi and bus ranks into diversified retail and service outlets, offering various facilities, including retail stores, financial and banking facilities, medical clinics, pension pay-out points, community centres, vehicle dealerships and other motor-related services. In so doing, taxi operators, commuters, retailers, shoppers and the community at large all stand to benefit.
The CEO of Taxiprop-BR, Mr. Kevin Williams, told the Free State Business Bulletin that while construction will be rolled out over a 10-year period and eventually include 120 such outlets, the first phase, which will involve the building of the first 30 outlets, is scheduled to begin next month.

Taxiprop is the developer and facilitator for the project and its responsibility is to develop projects according to the Santaco mandate, to search out, identify and negotiate the land, prepare financial prefeasibility and market studies, select tenants and secure lease agreements and appoint and manage the designer and contractor.
“The empowerment aspects of the move include an improved environment, as well as opportunities for informal retailers, who would be located within specifically designated areas. This is aimed at encouraging them to achieve semi-formal status,” Williams explained. National retailers will occupy 70% of the floor space, while the remaining 30% will be set aside for local business participation. The first five sites, to be developed this year, are expected to be the Bloed Street taxi rank in Pretoria, Randfontein in Gauteng, Wynberg in Cape Town, and Umtata and Mount Frere in the Eastern Cape.

For the Free State, Williams said three centres have been identified so far for the envisaged new complexes, namely Bloemfontein, Phuthaditjhaba and Welkom, while Taxiprop-BR is still exploring further possibilities. Construction of the complex at Bloemfontein is due to start March/April next year at a project cost of some R120 million. The estimated total cost of the complexes at Bloemfontein, Phuthaditjhaba and Welkom is put at R250 million. The design and layout of the projects plan for the Free State would be similar to the accompanying artist's impression.
Williams further said: “Planning has also been quite a challenge, as the taxi industry has a history of instability. We have to, therefore, consult extensively to ensure that no particular taxi group is to benefit from the project.” Taxiprop-BR shareholders are Taxiprop Development, an empowerment company, construction company Basil Read, and Ulutsha Development Projects, a women's empowerment group.
The development of the complexes goes together with the government's proposed programme to replace existing taxi's in South Africa with new 18- and 36-seater vehicles. This plan is to be implemented over a five-year period, after which the old taxi's will become illegal. What makes the new taxi unique is that if the vehicle is overloaded or the correct services are not met, it will not start. The new vehicle is to be sold with a full maintenance contract, which is to ensure upkeep and, most importantly, the safety of its passengers.
So if this imaginative and far-reaching planning comes to fruitition, it would not only also in the Free State change the face of the taxi industry, but would enter an unique concept in retailing and servicing opening up a host of new entrepreneurial and investment opportunities. For economically depressed areas, it could create important additional platforms for socio-economic development.