Unsustainability and losses made PUTCO to pull plug!

Putco logoThe Public Utility Transport Corporation (PUTCO) has decided to stop operating and if, it all goes according to plan, the MEC for Transport in Gauteng could shed a light on the reasons of the decision.

Tshwane, Ekurhuleni and Sedibeng municipalities will be affected.

The department has however given the assurance that Autopax, a subsidiary of the Passenger Rail Agency of South Africa (Prasa), will step in.

It is also unknown what will happen to drivers who operated in the affected areas.

Managing Director of Putco Franco Pisapia says it has ended certain routes because they’ve become totally unsustainable and were making loss, when asked if it had to do with alleged poor management.

The City of Johannesburg announced they have signed a 12 year bus operating contract with the second Rea Vaya bus operating company, Ditsamaiso.

The service will be implemented on the 1 August 2015.

The new company which is owned 75% by former taxi operators and 25% by PUTCO has been in existence since 2013.

Spokesperson for Southern African Bus Operators Association (SABOA) was not available for comment.

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