Let there be light

According to Genesis 1.3, in the beginning “God said, ‘let there be light,’ and there was light”. although nothing nearly as spiritual as that, we have now had over 150 days without loadshedding… could this be a sign of brighter days ahead? SHARMINI NAIDOO sure hopes so!

Loadshedding was suspended in July this year due to steady ongoing improvement in the reliability of the power utility’s generation fleet, which led to sustained generation performance. According to media reports, Eskom has performed much better than expected. However, government remains cautious and will not announce an end to loadshedding.

Eskom has been rumoured to have applied for a 44% tariff proposal hike to the National Energy Regulatory of South Africa but will not publicly confirm the proposal. So, let’s hope that it remains just a rumour.

Speaking at the inaugural Just Energy Transition (JET) Municipal Conference in August, President Ramaphosa highlighted the risk of reliance on fossil fuels as the world moves towards cleaner energy sources. The president stated that the municipalities are central to the efforts to decarbonise the energy sector, as they are responsible for nearly half of South Africa’s electricity distribution and play a vital role in expanding access to clean, affordable energy. He announced that the municipalities will lead the way in adopting renewable energy sources and modernising the electricity grid.

The South African economy is highly carbon intensive, as our electricity is generated from coal-fired power stations. This will definitely pose a threat to our economy, society, and environment that needs to be addressed, and we will have to conform. As a signatory to the Paris Agreement, we have already committed to contributing to the global climate change effort; government will have to ensure that measures are taken to achieve decarbonisation.

Whilst electrification of the public transport sector may be a solution to reduce emissions, electric vehicles (EVs) do not come cheap. Within the bus sector, the cost of EVs ranges from R5.4 million to R8.1 million. This is about two or three times the cost of a diesel-powered bus.

According to the Electric Vehicle Market Intelligence Report, EVs are a cleaner alternative that can assist public transport operators to save on operational costs – primarily fuel and maintenance costs – which would improve profitability. However, the limited availability of financing mechanisms, limited public charging infrastructure, and energy security are among the challenges.

Currently there are a few EV projects being conducted in the industry, including one by Golden Arrow Bus Services and one at the University of Johannesburg (UJ). Professor Andre Nel, executive director: facilities management at UJ, recently shared the results of the university’s EV journey at the SABOA Annual Conference. For UJ, reducing its carbon footprint is the single most important performance index.

For the average operator, cost and return on investment will be the most important determining factors. Unfortunately, the high capital costs of EVs pose a major barrier to most operators. Although more original equipment manufacturers (OEMs) have EV offerings these days, there remains a strong need for green financing solutions and incentives to make these vehicles more viable and accessible to bus operators for there to be significant rollout in the industry.

Service delivery woes

The “Leave No One Behind” District Development Model Presidential Imbizo, meanwhile, is being hosted across provinces. The Imbizo is supposed to be a critical public participation platform to ensure the voices of communities are heard. As expected (and justifiably so), there were many community leaders and stakeholders who expressed their dismay and discontent about service delivery.

Government’s key issues seem to centre on funding and ensuring that the municipalities deliver. With most municipalities severely challenged due to lack of unity, corruption, bankruptcy, resignation of officials, and no confidence votes, it will be interesting to see how they will now also be the frontrunners in renewable energy.

Funding is a major challenge in the country, with public private partnerships and financing from international benefactors being looked at as probable solutions. However, there does not seem to be any solution for underfunding of the bus industry. Speaking at the SABOA Annual Conference, Thys Heyns, executive director of the Larimar Group, highlighted one of the problems plaguing the industry since 2009. He referred to the “dysfunctional funding model” and likened it to “the albatross around the neck of the bus industry” that has resulted in the severe underfunding of bus contracts.

The constitution, the National Land Transport Amendment Act, and the Division of Revenue Act clearly spell out that the primary source of funding for bus contracts should be the budget of the contracting authority (province or municipality).The supplementary source of funding for bus contracts should be the Public Transport Operations Grant in the Division of Revenue Act. Unfortunately, this has not materialised; the primary source of funding for bus contracts has been absent and the industry has had to live with the consequences.

With consumer inflation at a three-year low, there is a small reprieve for operators as a fuel price drop is expected in September. Unaudited data from the Central Energy Fund indicates that the wholesale price of diesel is expected to decrease by about 76c/litre – not much, but we’ll take whatever we can get.

Tribute to Jackie Walters

Finally, after nearly four decades of being synonymous with SABOA, Professor Jackie Walters recently retired as the strategic advisor of the association. As Prof Walters leaves a void with big shoes to fill, he will still assist the association on an ad hoc consulting basis. SABOA paid tribute to Prof Walters at a farewell function in Randburg.

Prof Walters joined SABOA as CEO in 1989. He took the post on a part-time basis, whilst fully employed at the then Rand Afrikaans University (RAU) – now UJ – initially only for six months until SABOA could find a permanent CEO. This arrangement became permanent, however, and his job title was later changed to Strategic Advisor. His involvement in this capacity would eventually last for 35 years.

Over the years, he focused on public transport policy matters, including the conceptualisation of the 1996 White Paper on National Transport Policy. He also provided inputs to the new 2021 White Paper. He was instrumental in the design and involvement of the Moving South Africa Strategy in 1997 (which is still relevant today) and in the conceptualisation and implementation of the Interim Contract system.

Prof Walters’ research and lobbying activities have been invaluable to SABOA, and the association’s “gentlemanly approach” to lobbying can only be attributed to his manner and disposition. SABOA wishes to express its deepest gratitude to Prof Walters for his tireless dedication and commitment. We wish him many enjoyable hours of fishing, hunting, camping, game driving, and bird watching, all whilst still keeping an eye on the industry.