Bus Contract Monitoring in KwaZulu-Natal

In 2004, TESS was appointed by the KwaZulu-Natal Department of Transport on the mainstream and learner transport contracts to provide monitoring and supervision services. TESS was tasked with designing and implementing the contract and monitoring strategies on the variations of the bus contracts including operational assessment, route changes and timetable changes. In addition, TESS provide:

  • Mentoring and training of operators in operations, financial and monitoring management

  • Calculation of monthly operators’ contract rates and escalation factors taking into consideration fuel, labour, consumer price index and bus and truck index where applicable

  • Compilation of monthly operator subsidy payment certificate

  • Service designs

  • Divide of larger contracts into smaller contracts to allow opportunity for new entrants to the bus industry in the Province

  • Re-design of the contracts to ensure that the routing, timetables, vehicle requirements

  • Re-costing of services taking into consideration the current and future passenger revenue income and complete operational costs through financial modelling and determining a feasibility rate per km

  • Re-design an escalation formula to compensate operators for possible increases in costs during contract period

  • Assist negotiations with new operators

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