Transport Tenders: Navigating Route Permits & Vehicle Compliance

The License is the Tender

In the transport sector, owning a bus is the easy part. The barrier to entry is the Operating License (formerly known as a permit). Under the National Land Transport Act, you cannot transport passengers for gain without a route-specific license issued by the Provincial Regulatory Entity (PRE).

Many tenders for Scholar Transport or Departmental Staff Shuttles are adjudicated solely on who holds the rights to the route. If you bid for a route you are not licensed for, your bid is invalid.

The Application Nightmare (OLAS)

Getting a license is a bureaucratic marathon via the Operating License Administrative System (OLAS). It is not quick.

The Process

1. Publication: Your application is published in the Government Gazette.
2. Objection Period: There is a 21-day period where existing operators (like Taxi Associations) can object, claiming the route is 'oversaturated'.
3. Hearing: You may be called to a tribunal to defend your application.

💡 Pro Tip: Tenders often require a 'Letter of Support' from the relevant school or department to speed up this process. Do not try to apply for a 'General' permit; apply for a 'Contract' permit linked specifically to the tender you are bidding for.

Vehicle Roadworthiness & Age Limits

Government refuses to transport children in old wrecks. The tender specification will typically state: 'Vehicles must not be older than 5 years from date of first registration.'

Critical Documents per Vehicle

• Certificate of Fitness (COF): Unlike a normal license disc, a bus/taxi needs a COF every 6 months.
• Roadworth Certificate: Must be current.
• Passenger Liability Insurance: Standard car insurance is not enough. You need specific liability cover (often R5 million to R10 million per incident) to cover mass casualty events.

Navigating Taxi Association Politics

This is the unwritten rule of South African transport. Routes are 'owned' by associations. If you win a tender to transport kids from Soweto to a school in Sandton, you are crossing territories.

Winning a tender but being physically blocked from operating by rival operators is a real risk. Strategy: Successful tenderers often 'partner' with local associations or sub-contract a portion of the route to local operators to ensure peace. Government is aware of this dynamic and sometimes requires proof of 'Stakeholder Consultation' in the bid.

Pricing the Route: The Km Factor

Transport tenders are paid on a 'Rate per Passenger Kilometer'. Calculation: (Distance x Passengers x Rate). Warning: Check the road conditions. 10km on a tar road takes 15 minutes. 10km on a rural gravel road takes 45 minutes and destroys your suspension. If you quote the same rate for both, you will go bankrupt on repairs.

Conclusion

Transport is a high-cash-flow but high-maintenance business. To win, focus on newer vehicles (which score higher points) and ensure your admin regarding Operating Licenses is perfect before the tender even comes out.