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Starting Minibus Taxi Business In South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | All Articles , Business Ideas , Business Plans , Transport Industry

Starting Minibus Taxi Business In South Africa – Business Plan (PDF, Word & Excel)

Starting a minibus taxi business in South Africa is a rewarding venture. South Africa’s minibus taxi industry plays a crucial role in the country’s public transportation system, providing millions of people with a convenient and affordable way to get around. Minibus taxis in South Africa are the most available and most affordable form of public transportation used by the majority of people. Despite some people owning their own vehicles there are still innumerable numbers of people needing public transport. According to the South African National Taxi Council, the minibus taxi industry transports more than 16 million per day. This article will outline how to start the minibus taxi transport business in South Africa and the minibus taxi business plan – PDF, Word and Excel.

Market Research

The public transportation sector is extremely broad and is also characterised by fierce competition. So before you set out to start your minibus public transportation business in South Africa, you have to do some extensive market research to get a grip of the industry. You must appreciate that minibus taxis are different from other public service vehicles including regarding seating capacity. This means you cannot just service any route you want and thus you will have to research about that.

There are many ways in which you can package your services e.g. catering for a particular route doing pick and drops. You could do airport pickups or ferry school kids to and fro school. You could specifically niche by focusing on corporate clients where you ferry them to and fro work daily. These are just some of the possible services one could offer.

So the point is you must do market research and decide which type of services you want to offer, and for which routes. Ensure that you study existing players’ business structures, strategies, marketing approaches and pricing regimes plus so much more. Be very thorough in your pursuit to gather as much information so that you make informed decisions in building your business. That’s why it is essential for you to have a detailed minibus taxi business plan before you start this business.

Premises, Vehicles And Equipment

You will need minibuses since they will be the major component of your business. The number of minibuses will depend on your intended scale of business operations and also the amount of capital which you have. You will have to get the minibus taxis branded (if needs be; it depends on your marketing approaches). You will need to get equipment for the minibuses that are mandatory with respect to regulations. We are talking about things like fire extinguishers, emergency warning triangles, jacks and so on – basically things that are mandatory by law and are necessary for preparedness to deal with any incidentals. When it comes to fleet management you can choose to have your own garage/workshop or you can outsource services as and when you need them. Depending on the number of minibus taxis you will be operating you might need a base of operations for communication purposes (a dispatch centre of sorts). That essentially would bring us back to the issue of having your own garage or workshop which could also play that role all in one.

The other important decision to make is whether to purchase brand new minibus taxis or second hand vehicles. Ideally it will be better to purchase brand new minibus taxi vehicles as they are more reliable and efficient with low repair and maintenance costs. However, if you have limited capital, then you may start the minibus taxi business with used vehicles which are cheaper. You have also to consider the seating capacity of the minibus taxis. This will depend on your operational strategy and the routes which you want to service. The most common modern model for minibus taxis in South Africa is the Toyota Quantum. The other modern models used in South Africa include the Nissan NV350 and Mercedes-Benz Sprinter. The costs of purchasing the minibus taxis and equipment should be included in your minibus taxi business plan.

Maintenance & Repairs

In the realm of South African minibus taxi operations, the importance of maintenance and efficient repairs cannot be overstated. It’s a linchpin of ensuring the safety of passengers and the sustainability of your business. Preventative maintenance takes center stage, involving regular checks of critical components like the engine, brakes, tires, lights, and more. These proactive measures not only enhance passenger safety but also extend the lifespan of your fleet, ultimately reducing the long-term costs associated with repairs. A well-maintained fleet not only instills confidence in passengers but also translates to fewer service interruptions, contributing to higher customer satisfaction and loyalty.

The expertise of skilled technicians is equally essential. Minibus taxis endure considerable wear and tear from daily operations, making the competence of your mechanics and technicians paramount. It’s crucial to have access to professionals who can diagnose and address issues promptly, minimizing downtime. Moreover, forging strong partnerships with reputable repair shops and spare parts suppliers can streamline the repair process, ensuring that your vehicles spend less time off the road.

Budgetary considerations play a pivotal role in this equation. Creating a dedicated budget for maintenance and repairs is essential to ensure that these expenses are accounted for without negatively impacting your financial stability. While cost-cutting measures may be tempting, investing in quality maintenance and repairs ultimately pays dividends by reducing unforeseen repair expenses and maintaining a fleet that passengers can rely on. Exploring strategies such as bulk purchasing of spare parts and negotiating maintenance contracts with trusted service providers can help optimize your budget, ensuring that your minibus taxi business remains both safe and financially viable.

Minibus Taxi Services

There are many possible services to offer in this is type of business including the usual pick and drops, ferrying school kids, airport pick ups and private hires. One of the key factors in choosing the type of services to offer is the distance to be covered. For instance, if you plan on servicing a long distance route, for instance 150 kilometres that would mean you can do pick and drops along the way.

Alternatively you could use a booking system to ensure you only ferry people travelling the whole distance. You could also offer hiring services for a broad range of customers. If it is intra-city you can also follow the same approaches i.e. pick and drops, ferrying full-distance passengers or offering hiring services. If you are enterprising enough and always have an eye out you can notice many other services that you can offer.

Routes are the lifeblood of any minibus taxi business in South Africa. When embarking on this entrepreneurial journey, it’s essential to strategize your routes effectively to ensure the success of your venture. The first route category to consider is connecting the bustling City Centre (CBD) to and from nearby residential areas. These routes cater to the daily commuting needs of residents, providing a convenient and reliable means of transportation to work, shopping, and other activities in the city center. Efficiency and timeliness are key in meeting the demands of this busy crowd.

Expanding your reach, consider establishing routes that connect different residential areas within a city. Passengers often rely on minibus taxis for social visits, events, or errands within their city. By providing comfortable and efficient transportation options, you can tap into the steady demand for intra-city travel.

To broaden your revenue potential, explore inter-city routes that connect major cities in South Africa. People travel between cities for business, leisure, and family visits, presenting an opportunity for your minibus taxi business to thrive. Additionally, consider routes that bridge the gap between urban centers and rural areas, catering to the transportation needs of residents who rely on these services for access to essential facilities. Operating in rural areas requires careful planning and a commitment to serving these communities.

Minibus Taxi Licences and Insurance

To operate a minibus taxi business in South Africa, there are some legal requirements you have to adhere to. All your vehicles should be registered and have a valid vehicle licence which is renewed annually. Any person that transports passengers in South Africa must obtain a public operating licence, this applies also to minibus taxi drivers. A  public operating licence is a permit or document giving drivers permission to transport people for public gain. All your drivers should also have drivers license. The minibus taxi drivers should also have have a professional driving permit for driving passenger vehicles.  It’s important that you adhere to all the regulation otherwise you risk getting fined and losing your operating license.

When operating a minibus taxi business in South Africa, it is important to protect all of the assets of your business. Appropriate and adequate insurance coverage is an important part of protecting your taxi business. It is better to take out comprehensive insurance policies for all your vehicles. This is the most extensive form of insurance and covers you in the event of theft, hijacking, loss and/or damage caused by an accident, fire and natural disasters, and claims made against you by third parties where you are responsible for the damage to their vehicle. The costs of insurance and licences should be catered for in your minibus taxi business plan.

Minibus Taxi Business Model

The Minibus Taxi Business Model is a straightforward yet critical component of operating a successful minibus taxi business in South Africa. It begins with the purchase of vehicles, followed by the hiring of drivers who will operate these vehicles on specific routes. These routes are carefully chosen to cater to the transportation needs of commuters. Minibus taxis are typically stationed at taxi ranks, where passengers board until the vehicle is full, and they pay a fixed fare for the journey. This model relies on efficiency and passenger capacity to maximize revenue while serving the transportation needs of the community.

The major expenses that minibus taxi businesses encounter include fuel, driver salaries, vehicle repairs and maintenance and the necessary licenses and insurance. Profitability hinges on the number of trips the minibus taxis can complete each day. A higher volume of trips translates to increased revenue, which should ideally cover the substantial expenses, primarily fuel and other operational costs. With careful management and strategic planning, a profitable minibus taxi business can even generate enough revenue to expand by purchasing additional vehicles, thus further contributing to its growth and success in meeting the demands of South African commuters.

Staff And Management

This is informed by your scale of operations. The most elementary scale of operations is by being an owner-driver. If this is your level then you can do all that has to be done without hiring anyone. It becomes a different story when you have several minibuses in operation. You would need more hands on deck to run and manage the day to day business activities.

One of the key things to be on top of is close monitoring of how drivers are conducting their trips. Having to ensure that daily revenue targets are being adhered to by the drivers, responsible vehicle handling and many other things will require some full-time staff. Management can always effectively be done by the owner if the business is relatively small to medium scale. When the business grows to huge proportions you might end up needing to have supervisors, managers and even a workshop or garage. Necessary staff for a medium to large scale business include marketing staff, operations staff, finance and accounting staff. Operations staff includes drivers, conductors, mechanics, supervisors and operations managers. Your minibus taxi business plan should include costs for the wages and salaries of all your staff.

Minibus Taxi Business South Africa

Minibus Taxis

Market for Minibus Taxi Business

Despite the competition, the market for minibus taxis is vast and inexhaustible. According to the South African National Taxi Council, the minibus taxi industry transports more than 15 million per day. This show that the demand for minibus taxis is high in South Africa. The majority of these public transport commuters are low income earning individuals. Minibus taxis are the preferred mode of transport for over 50% of the South African population who earn R3 000 or less per month and can’t afford private transport. A proper marketing strategy should be included in your minibus public transport business. 

Keys to Profitability

In the dynamic landscape of the minibus taxi business in South Africa, achieving and maintaining profitability requires a strategic approach and an acute understanding of the market. First and foremost, route optimization is a fundamental aspect. Carefully selecting and fine-tuning your routes is crucial to attracting a consistent flow of passengers. Routes connecting urban centers, residential areas, and transportation hubs tend to yield higher passenger demand. Regularly assessing and adapting to changing commuter patterns ensures that your minibus taxis remain a preferred choice for travelers.

Efficiency in vehicle maintenance is paramount. Regular servicing and maintenance not only reduce repair costs but also instill passenger confidence in the safety and reliability of your fleet. A well-maintained fleet is less likely to experience disruptions due to breakdowns, ensuring a steady stream of revenue. Managing operational costs effectively is another key element. This includes vigilant monitoring of expenses such as fuel, driver salaries, vehicle repairs, and marketing efforts. Implementing cost-saving measures, such as fuel-efficient driving techniques and bulk purchasing of essential supplies, contributes to overall profitability.

Moreover, setting an optimal pricing strategy is essential. Competitive yet fair pricing that takes into account the distance traveled and local market rates strikes a balance between attracting passengers and covering costs with a reasonable profit margin. Maximizing vehicle utilization by ensuring minibuses operate at full capacity during each trip is vital. Offering incentives during off-peak hours can attract additional passengers, while efficient scheduling and reliable service help retain customer loyalty. Building a reputation for excellent customer service and investing in marketing and branding efforts to raise awareness can set your minibus taxi business apart in a crowded market. Compliance with regulations, meticulous financial management, and a commitment to continuous improvement complete the formula for achieving and sustaining profitability in the South African minibus taxi industry.

Advantages of Minibus Taxi Business in South Africa

Embarking on a minibus taxi business in South Africa presents a range of compelling advantages that make it an appealing entrepreneurial pursuit. Firstly, the country’s significant population and urbanization have fostered a robust demand for public transportation. Minibus taxis are instrumental in meeting this demand, serving as a vital mode of mobility for millions of daily commuters. This substantial customer base ensures a consistent flow of passengers, offering a strong foundation for business growth and profitability.

One of the standout features of the minibus taxi business is its inherent flexibility. Entrepreneurs have the liberty to tailor their services according to specific routes, schedules, or even special events. This adaptability allows for a diverse range of business models, from short intra-city trips to long-distance journeys between cities and rural areas, accommodating a wide spectrum of customer needs. With effective route optimization, reliable scheduling, and prudent cost management, the potential for achieving healthy profit margins is significant.

Moreover, beyond its financial benefits, the minibus taxi industry plays a vital role in job creation, offering employment opportunities for drivers, mechanics, administrative personnel, and support staff. Entrepreneurs who venture into this sector contribute to the overall economic development of their communities by providing essential transportation services that enable access to employment, education, healthcare, and social activities. The industry’s relatively low entry barriers further democratize entrepreneurship, making it accessible to a diverse group of individuals interested in participating in South Africa’s transportation landscape. In sum, the minibus taxi business presents a compelling blend of economic potential, adaptability, and community impact, making it an enticing choice for aspiring entrepreneurs in South Africa.

PRE-WRITTEN MINIBUS TAXI BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the minibus taxi business in South Africa, purchase our minibus taxi public transport business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the minibus public transport business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a minibus taxi transport business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the minibus business plan will lay out all the costs involved in setting up and running the minibus taxi business. The business plan is designed specifically for the South African market.

USES OF THE MINIBUS TAXI BUSINESS PLAN (PDF, WORD AND EXCEL)

The minibus public transport business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your minibus taxi business
  • As a minibus taxi project proposal
  • Assessing profitability of the minibus transport business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE MINIBUS TAXI TRANSPORT BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the minibus taxi business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your minibus taxi public transport business in South Africa

The Minibus Taxi Business Plan package consist of 4 files

  • Minibus Taxi Business Plan – PDF file (Comprehensive – 73 pages)
  • Minibus Taxi Transport Business Plan – Editable Word File (Comprehensive – 73 pages)
  • Minibus Taxi Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 44 pages)
  • Minibus Taxi Business Plan Automated Financial Statements – (Editable Excel file)

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The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

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The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

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GET THE MINIBUS TAXI BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

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How to start your own transport business

October is national transport month and with the sector estimated to grow substantially over the next decade, it provides exciting career opportunities..

The Department of Transport (DoT) has estimated that demand for transport, especially freight transport, will grow in South Africa by between 200 and 250 percent over the next 15 years.

Vuk’uzenzele explores the opportunities available in the sector. These range from passenger transportation to the transport of goods. The DoT has released a handy booklet which identifies the opportunities and threats in the sector.

The booklet can be found on the DoT website.

Called Business Opportunities in the Transport Industry, the booklet covers the sub-sectors of taxi, road freight and bus in particular, as well as rail, air and maritime transport.

For taxis, the most promising opportunities range from pre-booked tours to catering, deliveries, passenger transport and the manufacture of vehicles.

In road freight, the department has identified the building of truck stops and the distribution of food, beverages, timber and general commodities as the most promising areas for small businesses.

In the bus sub-sector, scholar transport, joint ventures and maintenance present the most opportunities for entrepreneurs.

Starting your own transport business

Starting a transport or logistics business does not require vast sums of money. The industry has low barriers to entry, as anyone with a minibus or bakkie is able to start offering transport services. It is, however, essential that you do your homework first. 

Many of the small transport businesses in South Africa do not have enough funding to stay sustainable in a very competitive industry and sometimes lack knowledge about marketing, licensing and business plans. To get this knowledge, it is advisable that you study a professional course such as the N3 National Certificate in Freight Handling offered at some Technical and Vocational Education and Training colleges.

It is also a good idea to join the Road Freight Association, which offers a number of support services to members.

Securing funding can sometimes be a challenge, but you should explore avenues such as the South African SME Fund or the Department of Trade and Industry (dti) in order to access grants. It is important to note that you need to have a solid business plan in place when approaching these organisations for assistance. 

The booklet can be accessed at  www.transport.gov.za . For copies of the booklet, contact the Department of Transport on 012 309 3172.

*For enquiries about starting a transport business, contact the dti at 0861 843 384.

How to Operate a Transport Business in South Africa

transport business

South Africa presents many opportunities for those in the transport business. The country has loads of bus transport routes, and all kinds of industries rely on transport in order to operate. This means starting the right kind of transport business can be highly rewarding. However, it’s important to understand what goes into starting and operating a transport business in South Africa. This guide will cover some of the key steps, licenses, and requirements that transport business owners need to know.

Establish Your Position in the Market

Starting a transport business in South Africa can be a lucrative venture. However, there is also a lot of tough competition. This is why it’s so important that transport business owners establish exactly how and where their business will fit into the market. This involves doing plenty of market and competitor research. As the transport industry is so big, there are various areas your business can specialise in – such as certain types of people transport (regular taxis, tourism, film shoots, etc), or different types of logistics transport. Establishing where your business will focus and what area you will specialize in is key. This is necessary for obtaining the right type of vehicle and the right licenses and permits.

Fund Your Transport Fleet

An important part of operating a transport business is purchasing and maintaining your vehicles. This could be a single vehicle or a whole fleet of taxis. Transport businesses will need to find enough funding to purchase the right kind of vehicle in order to start. It’s also important to consider the ongoing costs of vehicle maintenance and insurance when investing in your fleet. This is the stage that stops many people from starting a transport business, as the cost of purchasing the right vehicles can act as a barrier to entry.

Basic Requirements for a Transport Business

As with starting any type of business in South Africa, there are a couple of basic requirements your transport business will need to meet. These include the following registrations and certificates.

Company Registration

First, you will need to register your transporter business which will allow you to formally trade as a registered company. This needs to be done with the CIPC.

Tax Clearance Certificate

Your tax clearance certificate shows that your company is in good standing with SARS and that all of your tax obligations are taken care of. These documents are used by departments or contractors who might work with your transport business.

Your COID letter of good standing is necessary for protecting your employees. Any transport business that has at least one employee will need to register for COID at the department of labour.

Other Transport Business Requirements

You have various options when it comes to starting a transport business in South Africa. You could start a logistics business, a taxi service, or even offer transport for waste management. Whatever the case, each type of business will need a unique business plan, as well as the relevant licenses. Let’s break down some of the legal requirements for different transport businesses.

Public Operating License

Any driver that transports people professionally will need to hold a public operating license. This is necessary for those working in the taxi industry. These licenses can be applied for at your local municipality or at through the National Public Transport Regulator.

NPTR Operating License

Any driver that transports goods professionally will need to hold an NPTR operating license. This is necessary for anyone working in the logistics industry. NPTR operating licenses can be applied for through the National Public Transport Regulator.

Central Supplier Database

Logistics companies that transport goods for large suppliers or the government will also need to be registered on the Central Supplier Database.

Waste License

If you run a transport business that handles or manages waste, then you will need to hold a waste license. These licenses can be applied for through the Department of Environmental Management.

Operating a transport business in South Africa can be a great way to make money. There are endless opportunities within the transport sector, and there are various areas that transport businesses can focus on. However, this also means there are some unique considerations that transport industry professionals need to make. Make sure your transport business is set up with the right licenses and permits, and that it has a clear business plan. This is necessary for operating legally and profitably.

SEE ALSO: THE BEST LOGISTICS BUSINESS IDEAS

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Need a Transport and Logistics   Business Plan for your  Transport and Logistics Business ?  We write Professional  Transport and Logistics  Business Plans.

Our  Transport and Logistics  Business Plan is for Start-Ups looking to apply for basic Funding , Tenders and Industry Regulators .

Our Transport and Logistics  Business Plan is focused on the  Transport and Logistics  Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

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Our Transport and Logistics Business Plan is focused on the Transport and Logistics Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

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Our  Transport and Logistics Business Plan  is focused on the  Transport and Logistics  Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

Service Includes: 

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passenger transport business plan south africa

2024/2025

How To Start Transport Business In South Africa

What is transport business?

A transportation business is basically any business that has a hand in transporting people or goods. It can also have to do with providing transportation for other business owners who need help linking their product to their actual business.

1. Decide on a Specific Transport Niche

As you begin your transportation business, the first step involves who and what you will serve. You’ll need to answer the question, “What niche will I choose?” As mentioned above, there are different categories of transport companies, and you may need to select only one in order to be successful.

The best part about step one is that the possibilities are nearly endless! You can start anything from a bicycle rental company to a logistics corporation, or a medical transport service. The critical element is that you choose one area and learn all that you can about it. 

If you’re not sure what to choose, do some research about the supply and demand in your local area. Providing the solution to a specific and relevant need or problem ensures that you’ll have a steady client base when it’s time to open.

2. Establish Your Preferred Business Model

Once you’ve chosen a niche and learned all that you can about it, you’ll need to move into the business model stage. This is the time when you’ll set up your business structure and begin to fill in the operational information about your business.

When it comes to having a specialized business model in place, you have several options.

  • Sole proprietorship : In this model, you work as an individual or married couple, but you do not incorporate. Although this offers flexibility, the downside is that any business losses may be assumed on a personal level. 
  • General or limited liability partnership:  In a partnership, you have the opportunity to go into business with others. The differences between general and limited liability partnerships are the ways that each partner assumes the risks, debts or actions of the business as a whole. 
  • Limited liability company (LLC):  If you operate as an LLC, your personal and company information is entirely separate. While this changes your tax status, it does protect you from personal losses based on the company’s performance. 

3. Secure a Federal Tax ID Number

One of the first steps in your transportation service journey is setting up as an actual business. This means you need to secure a license from your local or state authorities. Because rules vary by location, you also need to consult your local government to find out how to apply for a business license.

From a federal standpoint, you need to apply for a federal tax ID number, or employer identification number (EIN), before you open for business. 

The EIN process is fairly standard, and having this identification number:

  • Makes it easier to file quarterly and yearly taxes
  • Can protect you or your business from identity theft
  • Speeds up the business loan application process
  • Establishes business credit early on 

4. Apply for Licenses and Permits

When you begin your transportation service, you need to have the right licensure. Why would transport businesses require more permits than other types of companies? The answer is that in many scenarios, you’ll be working with passengers, people and other types of precious cargo.

If you specialize in freight management or operations, the Department of Transportation has a specific list of requirements that you need to follow. This list is mostly based on the weight and size of what you’re hauling.

Within the transportation industry, other types of licenses and permits might include:  

  • Commercial driver’s license (CDL) 
  • Commercial vehicle registration for any fleet vehicle
  • Fuel carrier licenses
  • Heavy load or cargo permits
  • Insurance coverage for drivers, passengers or goods

5. Set a Budget and Financial Expectations

Based on the type of transportation business you choose, costs could be minimal or extensive. Running a one-vehicle taxi service is bound to be much cheaper than a full-fledged logistics fleet, but any type of business owner can plan for these costs.

Do you need to obtain a loan to get started? The Small Business Administration is a great resource, and local banks or credit unions can also help. Make sure to have a solid business plan established and on paper, since many lenders will ask to review this plan before considering a new loan application.

It’s also never too early to set financial goals and benchmarks. You need to consider:

  • What revenue you need to maintain to clear operating expenses
  • How much to invest in supplies, equipment and manpower
  • The specific amount of debt your business has in loans or other expenses
  • What amount of money you’re willing to invest in marketing and advertising

6. Make Purchases and Build Your Fleet

Choosing the right equipment can set you up for profitability by giving your new business a professional look from day one. Vehicle size and quality matters, especially when you’re transporting goods and materials on behalf of other people. Showing up to a job with a vehicle that’s too small or inadequate (lacking refrigeration, space, etc.) can reflect poorly on your company.

Here are a few things to ponder as you make vehicle purchasing decisions and build your fleet.

  • Will you need to transport any passengers?
  • How heavy are the materials you’ll be transporting?
  • What kind of ground or terrain do you need to cover on an average trip?
  • What wear and tear might you need to expect on a regular basis?
  • Are there any fuel-efficient or sustainable options to choose from? 

Take your time to research the best options based on quality, price and safety. All of these factors are extremely important as you establish your transportation business. 

7. Establish Solid Hiring Practices

Your company’s hiring practices might evolve as your organization grows, but you always need to incorporate standard hiring procedures into your business plan. This helps formalize the process and ensures that you’re following local and state rules regarding employment.

Although your list of employees might include you and only a few others to begin, think about ways that your company could grow. In addition to drivers and service providers in the field, what other positions do you need to think about down the line? 

These positions might include:

  • Office and administrative staff
  • A team of maintenance technicians
  • Sales and marketing professionals
  • Human resources (HR) staff
  • Part-time or seasonal employees

8. Keep up with Maintenance and Recertifications 

When you own a transportation business, you need to start with the future in mind. Although your supplies, vehicles and fleet might be brand new, long-term usage can affect both safety and quality. How will you keep up with routine maintenance to ensure that your customers don’t experience any gaps in service?

In addition to regular inspections, your company’s certifications and licenses may require renewal at various intervals. To stay compliant with legal requirements, and to keep your business functioning smoothly, you need to make sure that these are always up-to-date. 

While it’s easy for the small details to get lost in the shuffle of everyday operations, setting up recurring reminders or putting a specific employee in charge of routine checks can prevent many problems.

Frequently Asked Questions (FAQs)

How much do truck owners make per month in South Africa?

Data sourced from salary website Indeed shows that the base salary for a truck driver is closer to R10,324 per month in South Africa – or roughly R124,000 a year. Comparative salary data from Payscale shows that the average pay is slightly lower at R98,225 a year, or R8,185 a month.

Which business can I start with a bakkie in South Africa?

A bakkie is so versatile it can also make you money. Think delivery or transport service, mobile beauty salon, a pop-up restaurant, or a garden refuse business.

Is transport a good business in South Africa?

The transport business is also one business in which you can make cool cash. Large transportation companies enjoy economies of scale as regards purchasing and the ability to provide a more extensive service. Small transportation businesses can compete better in local and regional areas.

How does a transportation agent work in South Africa?

Transport agents operate under the control of the transport system to perform specific processing on messages at different points of their passage through the transport system. The most important agents are those that execute transport rules and perform journaling.

How do brokers find loads in South Africa?

Brokers can find loads in the same way that many other industry giants drum up business: marketing campaigns. This may involve direct mailers to companies who have loads that fit into their niche, targeted online ads, or social media marketing campaigns.

How much do code 14 truck drivers earn in South Africa?

The average driver salary in South Africa is R 236 110 per year or R 121 per hour. Entry-level positions start at R 174 000 per year, while most experienced workers make up to R 1 960 691 per year.

How much do droppa drivers earn in South Africa?

Droppa levies a 15% commission on whatever bakkie and truck operators using the platform charge the end customer. Drivers using the platform charge between R300 and R2000 per load, with the charge depending on the size of the load.

Is trucking a good investment in South Africa?

Although the trucking business can be extremely profitable, it can also be one of the most competitive industries out there. Aware of the potential for profit, several would-be entrepreneurs try to get their foot into the industry, and year after year, they end up failing.

Sample Transportation Business Plan

Transportation company business plan sample.

Transportation is a business that does not need any real skill before an individual can set it up.

Unlike some other businesses that require a high level of skill before being successfully set up, with a transport business, talent is replaced by experience. This means that there are three major requirements for setting up this business.

They are experience, capital, and business plan.

We believe that if you are setting up this business, you already have the required capital and experience; all you need is the right business plan. Well, this article is a transportation business plan sample.

This business plan sample can be relied upon to help you develop the right business plan, even when starting a fuel or truck transport business.

Other Transport-Based Business Plans:

  • Bike taxi business plan
  • Wheel alignment business plan
  • Valet parking business plan
  • Non-emergency medical transportation business plan
  • Bike shop business plan
  • Truck operator business plan
  • Taxi service business plan
  • Limousine business plan
  • Car rental business plan
  • Mobile oil change business plan
  • Car service business plan
  • Auto GPS tracking business plan
  • Auto repair business plan
  • Auto Detailing business plan
  • Automotive business plan
  • Driving school business plan
  • Charter bus business plan
  • Roadside assistance business plan
  • Diesel distribution business plan
  • Dealership business plan
  • Bike rental business plan
  • Private jet charter business plan
  • Truck driving school business plan
  • Tire shop business plan
  • Airport management business plan
  • Child transportation services business plan

Here is a sample business plan for starting a cargo van or passenger transport business .

Business Name:  Dani Brown Transportation Company

Executive Summary

  • Our Products and Services

Vision Statement

Mission Statement

Business Structure

  • Market Analysis

Sales and Marketing Strategy

  • Financial Plan

Competitive Advantage

Dani Brown Transportation Company is a registered and licensed transportation company that will be located in Brooklyn, New York. This transport company is jointly owned by Daniel Pascal and Teddy Brown, Two big-time businessmen with over 30 years of experience in the transportation business.

Dani Brown Transportation Company will be set up with $200,000. This amount will be used to get a facility serving as an office and a car park. In addition, a massive chunk of the $200 000 will be used to get the vehicles needed to start this business.

Products and Services

We will not deny that this business was set up primarily to make a profit. However, beyond that, there are other reasons why we have decided to set up this business. Chief among these reasons is that we want to make top-quality transportation options available to Brooklyn, New York, residents, and potential clients in other cities in the United States.

As much as we want to start on a reasonably small note, we hope to expand very early. Some of the products that we will be offering to our potential at Dani Brown Transportation Company are;

  • Taxi services
  • Helicopter services
  • Airline services

Our vision in the transportation industry is to establish a transport company that will be regarded as one of the best transport companies not just in New York but also in other parts of the United States and parts of Canada. The

Our mission is to set up a standard transportation company known for constantly providing our potential customers with high comfort and luxury. We are also looking to franchise our transport company after being in operation for up to five years.

In addition to providing top-quality services for our clients, we are also looking to establish a transportation company that is top-notch as well as very affordable.

The fact that no real skill is needed to set up this business indicates how competitive it is. Becoming a force to be reckoned with in this industry will not come easy, and we are very aware.

As a result of this, to achieve all that we have set out to accomplish as a company, we have devised to come up with a policy that will favor only those that are hardworking and also very willing to learn.

Market Analysis Market Trend

There has been steady growth in the transportation industry over a long period. This is a result of the fact that new categories are being added to the transport business regularly. Gone are the days when the transportation business only involves managing cars and buses.

The transport business involves cars, buses, planes, boats, and even helicopters. This has therefore brought about unforeseen growth.

In addition to the growth that has taken place in the transport industry, successfully running a transport business has become much more complex and challenging than it used to be.

As a new transportation company, we will need to do a lot of work to make our name known to members of the public. We must also ensure that our potential customer’s trust and are willing to do business with us. To make all this happen rapidly, we will be doing the following;

  • Printing handbills and making them available in public places
  • Have a strong internet presence
  • Offer discount prices to our first set of potential customers

Target Market

This business does not differ from others because a target market must exist. We have taken out time to carry out our research and have come up with what we believe is the perfect target market.

Those in our target market are:

  • Pregnant women and Nursing Mothers
  • Business Executives

Financial Goal Source of Startup Capital

As it stands, we need $200,000 to set up our business. Of this amount, we have been able to raise $100,000. The other amount will be gotten from the bank.

Our advantage over other firms is there; we are not ending at just owning cars and buses; we are into all forms of transportation. Also, we are strategically positioned in a part of the city where we can be easily reached.

This is a business plan sample for a transportation business. This business will be located in Brooklyn, New York, owned by Daniel Pascal and Teddy Brown.

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  • Provincial Operating Licence Boards
  • Permits are required
  • Vehicle Requirements
  • What regulations apply?

For a business to outsource staff transportation to your company, you must provide quality and reliable door-to-door shuttle transportation.

To do this you must comply with the South African transport regulations, the by-laws that affect the area in which you operate and that your business has adequate insurance cover.

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Department of Transport

Public transport, national road safety strategy.

Official Guide to South Africa

Furthermore, transport connects businesses with customers and suppliers. Transport networks are essential arteries of a vibrant economy, and a catalyst for development and economic growth.

The Constitution of the Republic of South Africa of 1996 identifies the legislative responsibilities of different spheres of government with regards to all modes of transport and associated infrastructure.

The Department of Transport (DoT) is responsible for the legislation and policies for rail, pipelines, roads, airports, harbours, and the intermodal operations of public transport and freight. As such, it conducts sector research, formulates legislation and policy to set the strategic directions of subsectors, assigns responsibilities to public entities, regulates through setting norms and standards, and monitors implementation.

Over the medium term, the DoT aimed to streamline efforts towards improving mobility and access to social and economic activities. It expects to achieve this by cultivating an enabling environment for the maintenance of national and provincial road networks, facilitating integrated road‐based public transport services and revitalising passenger services.

The goods and services budget will mainly be used to fund the expansion of the central roads data repository, operational costs associated with the administration of the recapitalisation of taxis, and unitary payments towards building a tugbo t for monitoring South Africa’s coastlines under the department’s maritime pollution prevention function.

Cultivating an enabling environment for maintaining road networks

The Road Transport programme facilitates activities related to maintaining the country’s national and provincial road networks. Investments in road networks are targeted at ensuring that passengers and freight carriers, which haul almost 80 per cent of South Africa’s freight load, have adequate access to safe roads.

The department has allocated funds over the next three years to construct, upgrade and maintain the national and provincial road networks. The South National Roads Agency (SANRAL) planned to strengthen and upgrade the national non‐toll network, and complete the N2 Wild Coast project, the R573 (Moloto Road) Development Corridor and the Gauteng Freeway Improvement Project.

Amongst the SANRAL’s mega projects is the construction of the two iconic bridges, Msikaba Bridge, which is between Lusikisiki and Port St Johns in the Eastern Cape, being the highest, and the Mtentu Bridge, near Lundini also in the Eastern Cape, being the longest bridge, in Africa.

Government was also in the process to commence with construction work in the North Bound section of the 3.9 km-long Hugeunot Tunnel, making it the longest road-based tunnel in Africa. These SANRAL mega projects confirm the diverse engineering excellence and profound expertise found right here in South Africa.

The road maintenance component of the provincial roads maintenance grant provides for the maintenance and rehabilitation of the provincial road network to prolong its lifespan. Over the medium-term period, funds were allocated for road refurbishment, disaster relief and the construction of 96 bridges in rural areas. Provinces were expected to use funds from the grant to rehabilitate 9 893 lane kilometres, reseal 13 122 lane kilometres, regravel 19 355 kilometres and blacktop‐patch 6.5 million square kilometres.

Facilitating integrated road‐based public transport services

The DoT planned to achieve a seamless integration of all modes of public transport to deliver an efficient, safe and reliable public transport system. R60 million is set aside over the medium term to pilot the integration of all road‐based public transport ticketing systems.

The public transport network grant funds the infrastructure and indirect costs of bus rapid transit services in 10 cities, including Cape Town, Ekurhuleni, George, Johannesburg, Nelson Mandela Bay and Tshwane.

Revitalising passenger rail services

To address the deterioration of passenger rail services, transfers to the Passenger Rail Agency of South Africa (PRASA) through the Rail Transport programme are focused on the recovery of the rail network.

The budget will be used for the agency’s shift in focus towards implementing its strategic corridor recovery programme and continuing with its drive to renew rolling stock.

Refurbishment, rehabilitation and eradication of potholes

The work to improve the condition of the road network includes the refurbishment, rehabilitation and eradication of potholes, particularly in provincial and municipal roads. As part of this labour-intensive project, the department is working closely with the Transport Education Training Authority to develop requisite skills.

The department has also recognised the value of working with research institutions like the Centre for Scientific and Industrial Research for innovative solutions, like the nano technology solutions which were piloted in 2023 in the gravel road upgrade programme. The nano technology solutions will be used to upgrade gravel roads to a well-engineered and all-weather condition network.

The 12 public entities under the Ministry of Transport are the  Airports Company South Africa  (ACSA);  PRASA ;  SANRAL ;  Ports Regulator of South Africa ;  Air Traffic and Navigation Services  (ATNS);  Cross-Border Road Transport Agency (CBRTA);  Railway Safety Regulator ;  Road Accident Fund  (RAF);  Road Traffic Infringement Agency  (RTIA);  Road Traffic Management Corporation  (RTMC);  South African Civil Aviation Authority  (SACAA) and  South African Maritime Safety Authority  (SAMSA).

Airports Company South Africa

ACSA was established in terms of the Airports Company Act of 1993 . The company owns and operates the nine principal airports in South Africa, including the three main international gateways – OR Tambo International Airport, Cape Town International Airport and King Shaka International Airport.

Over the medium term, the company aimed to focus on building and replacing infrastructure, and planned to invest approximately R1 billion in each year over the medium term on capital expenditure projects. This focus was deferred during the Coronavirus Disease 2019 (COVID‐19) pandemic, which saw a significant decrease in commercial air travel, resulting in financial instability.

Passenger Rail Agency of South Africa

PRASA was established in terms of the Legal Succession to the South African Transport Services Amendment Act of 2008 . Its primary mandate it to provide rail commuter services within, to and from South Africa in the public interest. The agency also provides long‐haul passenger rail and bus services within, to and from South Africa.

Over the medium term, the agency aimed to focus on ensuring the recovery of commuter rail services by implementing it strategic corridor recovery programme and modernising its core infrastructure, which includes the replacement of old rolling stock and investment in signalling infrastructure.

As part of its strategic corridor recovery programme, the agency aims to restore services on Cape Town’s central line and Tshwane’s Mabopane line.

South African National Roads  Agency Limited

SANRAL was established in terms of the SANRAL and National Roads Act of 1998 . It is responsible for the planning, design, construction, operation, management, control, maintenance and rehabilitation of the South African national road network, including the financing of these functions, for both toll and non‐toll roads.

Over the medium term, the agency aimed to continue focusing on the construction, maintenance and preservation of the national road network. It planned to increase the length of the network in active strengthening and resurfacing contracts from 1 500 kilometres in 2022/23 to 3 000 kilometres in 2025/26.

Ports Regulator of South Africa

The PRSA was established in terms of the National Ports Act of 2005 to regulate South Africa’s ports infrastructure system. The regulator sets port tariffs for the National Ports Authority and oversees complaints and appeals to preserve fairness,  transparency and competitive practices for ports infrastructure. The PRSA continues to focus on strengthening the economic regulation of ports infrastructure and compliance with the ports regulatory framework over the medium term.

Air Traffic and Navigation Services

The ATNS Company is mandated to provide safe, orderly and efficient air traffic navigational and associated services to the air traffic management community in terms of the ATNS Act of 1993.

All its services are in accordance with the International Civil Aviation Organisation (ICAO) standards and the civil aviation regulations issued in terms of the Civil Aviation Act of 2009.  The ATNS Company maintains its focus on providing safe, efficient and cost-effective air traffic management solutions and related services.

Cross Border Road Transport Agency

The CBRTA is mandated to regulate the cross‐border road freight and passenger industry in terms of the Cross‐Border Transport Act of 1998 . Over the next three years, the agency planned to continue facilitate an unimpeded flow of freight and passenger road transport across the region. To this end, the CBRTA planned to conduct inspections to enforce cross‐border road traffic law over this period.

Railway Safety Regulator

The RSR was established in terms of the National RSR Act of 2002 . The regulator is mandated to oversee railway operations, monitor operators and enforce a safe operating environment. This includes rail operators from neighbouring countries with operations that enter South Africa.

Over the medium term, the regulator aimed to focus on its primary business of issuing safety permits to railway operators and conduct safety initiatives. These include education and awareness campaigns, community involvement programmes and training for safety ambassadors.

Road Accident Fund

In terms of the RAF Act of 1996, the RAF is mandated to compensate South African road users for losses or damages caused by motor vehicle accidents within the borders of South Africa. Over the medium term, a change in the settlement policy of loss‐of‐income claims from lump sum to annuity was expected to see a moderation in the payment of claims to match the fund’s payas‐you‐go principle.

Road Traffic Infringement Agency

The RTIA derives its mandate from the Administrative Adjudication of Road Traffic Offences Act of 1998 . The agency was established to administer procedures to discourage the contravention of road traffic laws, adjudicate infringements, enforce penalties for the contravention of road traffic laws, provide specialised prosecution support services, and carry out community education and awareness programmes in road safety‐related matters.  The RTIA’s activities over the medium term focused on administration, adjudication and support, and the roll-out programme.

Road Traffic Management Corporation

The RTMC was established through the RTMC Act of 1999. It is mandated to provide national road traffic strategic planning and law enforcement, and pool public sector resources for the provision of road traffic management.

Over the medium term, the corporation planned to promote road traffic safety through education and awareness campaigns, manage road traffic data and information through the automation of processes in driving licence testing centres, maintain the electronic national traffic information system, and improve the coordination of road traffic law enforcement.

South African Civil Aviation Authority

The SACAA was established in terms of the Civil Aviation Act of 2009 . The authority is mandated to oversee the safety and security of the civil aviation industry and ensure compliance with and adherence to the standards and recommended practices of the ICAO.

Over the medium term, the SACAA aimed to focus on implementing safety and security programmes in line with the standards and recommended practices issued by the organisation and civil aviation regulations in South Africa.

Accordingly, it planned to conduct air safety infrastructure investigations and air safety operation inspections per year over the medium-term period.

South African Maritime Safety Authority

The SAMSA was established in terms of the SAMSA Act of 1998 . The authority is mandated to ensure the safety of life and property at sea, and prevent and combat marine pollution. Over the next three years, the authority aimed to continue focusing on ensuring safety and preventing pollution at sea.

National Transport Master Plan (NAPMAP)

The NATMAP 2050 is aimed at delivering a dynamic, long-term and sustainable transportation system framework which is demand responsive and that provides a coordinated transport agenda for the whole country. The NATMAP recognises that efficient, affordable and reliable transport systems are critical components of national economic development.

National Airspace Master Plan (NAMP) 2020-2025

The NAMP 2020-2025 provides the strategic view and direction of airspace organisation and management within South Africa.

The objectives of the NAMP are to:

  • service the airspace in accordance with ICAO Standards and Recommended Practices (SARPS) in such a way that it meets the requirements of all users and particularly, the international community.
  • Rationalise all managed airspace in accordance with ICAO SARPS in such a way that it meets the requirements of all users by a consultative process, strategically and tactically.
  • Minimise all permanent prohibited, restricted and danger areas in accordance with ICAO SARPS and to facilitate the flexible use of airspace to the benefit of all users.
  • Continually maintain information (uncontrolled) airspace in accordance with ICAO SARPS in such a way that it meets the requirements of all users.

Civil aviation serves as a major catalyst for global economic activities and is vital to trade and tourism. South Africa’s major airports include:

  • OR Tambo International in Gauteng
  • Cape Town International in the Western Cape
  • King Shaka International in KwaZulu-Natal
  • Bram Fischer International  in the Free State
  • Port Elizabeth International  in the Eastern Cape
  • Upington International  in the Northern Cape
  • East London Airport  in the Eastern Cape
  • George Airport  in the Western Cape
  • Kimberley Airport  in the Northern Cape
  • Polokwane International Airport  in Limpopo
  • Kruger Mpumalanga International Airport  in Mpumalanga.

Scholar Transport

The National Scholar Transport Policy provides a framework for safe and secure transport for learners through the cooperation of stakeholders and law-enforcement authorities. The DoT developed the national operational guidelines to remedy operational challenges that provinces have in implementing the Scholar Transport Programme.

The DoT continues to make a difference in the lives of many learners in rural and farmland areas through the Shova Kalula initiative, which supplies learners with non-motorised mobility in the form of bicycles.

Taxi and bus industries

The taxi industry remains the most important part of South Africa’s public transport system. Taxis are the preferred type of road transport. With more than 200 000 taxis on the road, the taxi industry generates about R40 billion per year and has created approximately 300 000 direct and indirect job opportunities, including drivers, taxi marshals and administrative support. The Taxi Relief Fund secured by the DoT to mitigate the negative financial impact of COVID-19 on the minibus taxi industry came to an end on 31 March 2023. About R440 million has been disbursed, accounting for over 80 000 operating licences

Integrated public transport networks (IPTNs)

The implementation of the IPTNs in the country is central to the functioning of hubs of economic activity as they provide sustainable, affordable and functional transport solutions to urban commuters.

By mid-2023, seven cities were already operational:

  • MyCiTi in Cape Town, Western Cape.
  • Rea Vaya in Johannesburg, Gauteng
  • A Re Yeng (Let’s go) in Pretoria, Gauteng.
  • Go George in George, Western Cape.
  • Harambee in Ekurhuleni, Gauteng.
  • in Nelson Mandela Bay, Eastern Cape.
  • Leeto la Polokwane in Polokwane, Limpopo.

The Gautrain is an 80-km long mass rapid transit railway system that links Johannesburg, Pretoria and OR Tambo International Airport. It was built to relieve traffic congestion in the Johannesburg-Pretoria traffic corridor and offer commuters a viable alternative to road transport, as Johannesburg had limited public transport infrastructure.

The Gautrain offers two distinct train services: An Airport Service linking Sandton and Marlboro to the OR Tambo International Airport and a Commuter Service linking Rhodesfield, Marlboro, and Sandton (east-west link) and Park, Rosebank, Sandton, Midrand, Centurion, Pretoria Central and Hatfield (northsouth link). All stations with the exception of the Airport Station have integrated car parking facilities.

South Africa has three thousand (3000) kilometers coastline, correctly positioned along the sea trading route. We have the world’s largest bulk coal terminal port in Richard Bay. Durban Port is the busiest in Africa and the largest container facility in Southern Africa.

The Port of Ngqura is the deepest container terminal in Africa. The Port of Cape Town is the biggest refrigerated container facility in Africa. Saldhana Bay is the largest port in Africa by water footprint. South Africa is among the top 15 countries that trade by sea.

SAMSA has since rolled out the Maritime Safety Programme with specific focus on ship safety inspection programmes which have resulted to no reported ship losses in South Africa’s waters.

National Road Safety Strategy (NRSS) 2016-2030

Road safety has become a global issue that ranks as one of the most pressing matters facing society today. South Africa implemented various strategies and campaigns in the past, with varying degrees of success in slowing down the rate of fatalities over time.

The objective of the NRSS is to create a safer road environment for all users with a significant reduction in the number of injuries and fatalities due to road crashes.

Source:  Official Guide to South Africa

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How to Start a Passenger Transportation Company

  • Small Business
  • Setting Up a New Business
  • Starting a Company
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How to Start My Own Towing Business

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Fuel is getting more expensive every year. In 2018, U.S. customers spent $2.60 per gallon, on average. A growing number of people are leaving their cars in the garage, seeking alternative means of transportation. As an entrepreneur, you can leverage this trend and start your own passenger transportation business.

Perform drug tests and background checks on your drivers. This is a legal requirement in most states. Also, make sure they all have commercial driver's insurance.

Choose the Right Business Model

Before writing a business plan, make sure you have a good understanding of the passenger transportation industry. This market includes more than buses, taxi services and airport shuttles. Ferryboats, cruises, passenger airlines and limousine services are all an integral part of this industry. The same goes for ridesharing services like Uber and Lyft.

Each business model is subject to different regulations and involves different costs. A ridesharing service, for example, requires lower startup costs than a charter bus company. Assess your budget as well as your short- and long-term goals. Choose a type of business that aligns with your vision.

Create a Business Plan

A passenger transportation business plan should include an executive summary that describes your services, target market and goals. It also needs to outline the key aspects of your business, such as its name and location, mission statement, legal structure, expenses and financial projections, industry description, competitor analysis and more.

Try to answer the following questions in your business plan:

  • How many vehicles will you operate?
  • Will you lease or buy your vehicles?
  • What services do you plan to offer?
  • What makes you stand out from the competition?
  • Who is your ideal customer?
  • How many employees do you need?
  • What are the costs involved?
  • How much do you expect to earn?
  • How do you plan to promote your business?
  • What licenses and permits are required?
  • What goals do you have for the first year?
  • What challenges do you expect to face?
  • What routes and service areas are you targeting?

This document will guide your efforts and serve as an action plan. At this point, its role is to outline what you want to achieve and how you will do it. Research the market thoroughly, study your competitors and have a clear understanding of your target audience.

Purchase a Fleet of Vehicles

Decide whether you'll lease or purchase your fleet of vehicles. Leasing a van, for example, allows you to spread the payments over time. Plus, you don't have to worry about repair and maintenance costs. The downside is that you might need to stick to a mileage limit, depending on the leasing company.

Buying a minibus, van or other vehicles will cost more. However, you can always purchase used cars to lower your expenses. Whether you buy new or used, check the cost of auto insurance beforehand. Older vehicles carry higher insurance premiums.

Estimate the costs involved, and research your financing options. Small business loans, bank loans, business lines of credit, SBA loans and peer-to-peer loans are all common ways to secure funding. Some states offer grants to business owners who purchase new environmentally friendly vehicles, so that's an option too. If your passenger transportation company has a unique concept, reach out to angel investors .

License and Registration

Make sure your business meets all legal requirements. Register it with the Secretary of State; decide on a legal structure, and choose a catchy business name. You must also apply for a tax ID number and get a commercial transportation license and/or business license.

Contact the Department of Motor Vehicles in your state to find out what licenses and permits are required. The State of California, for instance, requires drivers who operate 10- to 15-passenger vans to have a commercial driver's license. If you're planning to start a taxi company, you will need special license plates and additional permits. Some states also require passenger transportation companies to perform drug tests and background checks on their employees.

Market Your Passenger Transportation Business

Once your business is established, promote your services to the target audience. List your company in local business directories , such as Yelp, Foursquare, Bing Local, Google My Business, Yellow Pages and LinkedIn Company Directory. Add a brief description, along with a link to your website and social media pages.

Leverage the power of Facebook advertising to gain exposure in your local community. Facebook enables users to create ads that match their target market. For example, you can choose to display your ads only to customers who live within 18 miles of your city, have an annual income of $60,000+ and travel frequently.

Advertise your passenger transportation business locally too. Reach out to travel agencies and make a partnership proposal. Exchange marketing materials with other businesses, such as stores selling travel gear and accessories. Sign up for travel-related events and trade shows in your area, distribute flyers and spread the word about your services.

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  • Read and understand all local ordinances regarding where you can pick up fares. Some municipalities only allow ground transportation companies to pick up customers from designated locations, such as taxi stands.

Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.

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New York Takes Crucial Step Toward Making Congestion Pricing a Reality

The board of the Metropolitan Transportation Authority voted to approve a new $15 toll to drive into Manhattan. The plan still faces challenges from six lawsuits before it can begin in June.

Multiple cars are stopped at a traffic light at a Manhattan intersection. A person responsible for controlling traffic stands nearby wearing a yellow reflective vest.

By Winnie Hu and Ana Ley

New York City completed a crucial final step on Wednesday in a decades-long effort to become the first American city to roll out a comprehensive congestion pricing program, one that aims to push motorists out of their cars and onto mass transit by charging new tolls to drive into Midtown and Lower Manhattan.

The program could start as early as mid-June after the board of the Metropolitan Transportation Authority, the state agency that will install and manage the program, voted 11-to-1 to approve the final tolling rates, which will charge most passenger cars $15 a day to enter at 60th Street and below in Manhattan. The program is expected to reduce traffic and raise $1 billion annually for public transit improvements.

It was a historic moment for New York’s leaders and transportation advocates after decades of failed attempts to advance congestion pricing even as other gridlocked cities around the world, including London, Stockholm and Singapore, proved that similar programs could reduce traffic and pollution.

While other American cities have introduced related concepts by establishing toll roads or closing streets to traffic, the plan in New York is unmatched in ambition and scale.

Congestion pricing is expected to reduce the number of vehicles that enter Lower Manhattan by about 17 percent, according to a November study by an advisory committee reporting to the M.T.A. The report also said that the total number of miles driven in 28 counties across the region would be reduced.

“This was the right thing to do,” Janno Lieber, the authority’s chairman and chief executive, said after the vote. “New York has more traffic than any place in the United States, and now we’re doing something about it.”

Congestion pricing has long been a hard sell in New York, where many people commute by car from the boroughs outside of Manhattan and the suburbs, in part because some of them do not have access to public transit.

New York State legislators finally approved congestion pricing in 2019 after Gov. Andrew M. Cuomo helped push it through. A series of recent breakdowns in the city’s subway system had underscored the need for billions of dollars to update its aging infrastructure.

It has taken another five years to reach the starting line. Before the tolling program can begin, it must be reviewed by the Federal Highway Administration, which is expected to approve it.

Congestion pricing also faces legal challenges from six lawsuits that have been brought by elected officials and residents from across the New York region. Opponents have increasingly mobilized against the program in recent months, citing the cost of the tolls and the potential environmental effects from shifting traffic and pollution to other areas as drivers avoid the tolls.

A court hearing is scheduled for April 3 and 4 on a lawsuit brought by the State of New Jersey, which is seen as the most serious legal challenge. The mayor of Fort Lee, N.J., Mark J. Sokolich, has filed a related lawsuit.

Four more lawsuits have been brought in New York: by Ed Day, the Rockland County executive; by Vito Fossella, the Staten Island borough president, and the United Federation of Teachers; and by two separate groups of city residents.

Amid the litigation, M.T.A. officials have suspended some capital construction projects that were to be paid for by the program, and they said at a committee meeting on Monday that crucial work to modernize subway signals on the A and C lines had been delayed.

Nearly all the toll readers have been installed, and will automatically charge drivers for entering the designated congestion zone at 60th Street or below. There is no toll for leaving the zone or driving around in it. Through traffic on Franklin D. Roosevelt Drive and the West Side Highway will not be tolled.

Under the final tolling structure, which was based on recommendations by the advisory panel, most passenger vehicles will be charged $15 a day from 5 a.m. to 9 p.m. on weekdays, and from 9 a.m. to 9 p.m. on weekends. The toll will be $24 for small trucks and charter buses, and will rise to $36 for large trucks and tour buses. It will be $7.50 for motorcycles.

Those tolls will be discounted by 75 percent at night, dropping the cost for a passenger vehicle to $3.75.

Fares will go up by $1.25 for taxis and black car services, and by $2.50 for Uber and Lyft. Passengers will be responsible for paying the new fees, and they will be added to every ride that begins, ends or occurs within the congestion zone. There will be no nighttime discounts. (The new fees come on top of an existing congestion surcharge that was imposed on for-hire vehicles in 2019.)

The tolls will mostly be collected using the E-ZPass system. Electronic detection points have been placed at entrances and exits to the tolling zone. Drivers who do not use an E-ZPass will pay significantly higher fees — for instance, $22.50 instead of $15 during peak hours for passenger vehicles.

Emergency vehicles like fire trucks, ambulances and police cars, as well as vehicles carrying people with disabilities, were exempted from the new tolls under the state’s congestion pricing legislation .

As for discounts, low-income drivers who make less than $50,000 annually can apply to receive half off the daytime toll after their first 10 trips in a calendar month. In addition, low-income residents of the congestion zone who make less than $60,000 a year can apply for a state tax credit.

All drivers entering the zone directly from four tolled tunnels — the Lincoln, Holland, Hugh L. Carey and Queens-Midtown — will receive a “crossing credit” that will be applied against the daytime toll. The credit will be $5 round-trip for passenger vehicles, $12 for small trucks and intercity and charter buses, $20 for large trucks and tour buses, and $2.50 for motorcycles. No credits will be offered at night.

Grace Ashford contributed reporting.

Winnie Hu is a Times reporter covering the people and neighborhoods of New York City. More about Winnie Hu

Ana Ley is a Times reporter covering New York City’s mass transit system and the millions of passengers who use it. More about Ana Ley

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  1. Starting Minibus Taxi Business In South Africa

    PRE-WRITTEN MINIBUS TAXI BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS. For an in-depth analysis of the minibus taxi business in South Africa, purchase our minibus taxi public transport business plan. We decided to introduce the business plans after noting that ...

  2. PDF Autopax Passenger Services (SOC) Strategic Plan 2023 2025

    NTMP National Transport Master Plan SOC State Owned Company VOR Vehicles Off Road 1. Introduction Autopax Passenger Services (SOC) Ltd also known as Autopax is a wholly owned subsidiary of the Passenger Rail Agency of South Africa (PRASA). The company derives its mandate from the Shareholder's compact.

  3. PDF PRASA Corporate Plan

    It is hereby certified that this Corporate Plan: 1. was developed by the management of the Passenger Rail Agency of South Africa under the guidance of the Department of Transport; 2. takes into account all the relevant policies, legislation and other mandates for which the Passenger Rail Agency is responsible; and 3.

  4. How to start your own transport business

    It is important to note that you need to have a solid business plan in place when approaching these organisations for assistance. The booklet can be accessed at www.transport.gov.za. For copies of the booklet, contact the Department of Transport on 012 309 3172. *For enquiries about starting a transport business, contact the dti at 0861 843 384.

  5. PDF Passenger Rail Agency Of South Africa

    Passenger Rail Agency Of South Africa Corporate plan 2021/2024 5 Legislative mandate PRASA is a schedule 3B national government business enterprise reporting to the Minister of Transport. It derives its mandate from the Legal Succession to the South African Transport Services Act (1989), as amended.

  6. How to Operate a Transport Business in South Africa

    An important part of operating a transport business is purchasing and maintaining your vehicles. This could be a single vehicle or a whole fleet of taxis. Transport businesses will need to find enough funding to purchase the right kind of vehicle in order to start. It's also important to consider the ongoing costs of vehicle maintenance and ...

  7. PDF Report on Trends in Passenger Transport in South Africa

    status of passenger transport in the provinces, metropolitan, urban and rural parts of South Africa. It has hitherto been difficult to obtain good-quality information about transport movements, because of the dynamic nature of traffic and travel and because of the numerous boundary changes which have occurred over the past two decades.

  8. PDF 2020 -2024

    Autopax Passenger Services (SOC) Ltd also known as Autopax is a wholly-owned subsidiary of the Passenger Rail Agency of South Africa (PRASA). The company derives its mandate from the Shareholders compact. In addition, the company also manages the PRASA Groups bus business with the mandate to grow the market share, expanding the business and create

  9. PDF We don't just drive buses; we transport people

    The entity's business priorities are driven by its stakeholders and an understanding of their critical needs, taking into account the City of Johannesburg ("City")'s long-term objectives. Consistent with the 2017/18 business plan, the 2018/19 Business Plan content has been organized to

  10. Transport and Logistics Business Plan

    Our Transport and Logistics Business Plan is focused on the Transport and Logistics Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection. Service Includes: 40 - 60 Pages. Professional Business Plan Layout. 5-Year Financial Projection.

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    PMG

  12. How To Start Transport Business In South Africa

    It can also have to do with providing transportation for other business owners who need help linking their product to their actual business. How To Start Transport Business In South Africa. 1. Decide on a Specific Transport Niche. As you begin your transportation business, the first step involves who and what you will serve.

  13. Starting A Tour Or Tourist Transport Business

    The Transport Sector is defined as businesses involved with transporting tourists in and around South Africa, including airlines, shuttles, trains, buses, ships, taxis, etc. Before you start this type of venture, make sure you are aware of all the rules and regulations governing the sector. Here is a simple checklist to help you get organised. 1.

  14. Sample Passenger Transport Business Plan Template

    This business plan sample can be relied upon to help you develop the right business plan, even when starting a fuel or truck transport business. Other Transport-Based Business Plans: Here is a sample business plan for starting a cargo van or passenger transport business. Business Name: Dani Brown Transportation Company.

  15. How To Start A Passenger Transport Business

    For a business to outsource staff transportation to your company, you must provide quality and reliable door-to-door shuttle transportation. To do this you must comply with the South African transport regulations, the by-laws that affect the area in which you operate and that your business has adequate insurance cover. Page 1 of 6.

  16. PDF Passenger Rail Agency of South Africa Corporate Plan

    Passenger Rail Agency of South Africa Corporate Plan 2022/2025 www.prasa.com. 2 PRASA | Corporate Plan 2022/25 CONTENTS VISION ... that the company's business plan is feasible and sustainable, however, this is largely dependent ... informing the corporate plan transport. PRASA | Corporate Plan 2022/25. PRASA . PRASA . PRASA . 25 • GBVF

  17. PDF Passenger Rail Agency of South Africa

    The Passenger Rail Agency of South Africa (PRASA) is a schedule 3B national government business enterprise that reports to the Minister of Transport. It derives its mandate from the Legal Succession to the South African Transport Services Act (1989), as amended. PRASA's main objectives and business are to:

  18. Review of South Africa's public transport system

    The minibus taxi industry comprises medium-sized buses with a capacity of 13-16 seats. The industry accounts for the largest proportion of ridership in public transport accounting for 83% of the public transport journeys with most low-income households using minibus taxis for commuting trips (Statistics South Africa, 2021; see Fig. 1).Fig. 1 below shows that taxi usage has grown from 59% in ...

  19. Transport

    PRASA was established in terms of the Legal Succession to the South African Transport Services Amendment Act of 2008. Its primary mandate it to provide rail commuter services within, to and from South Africa in the public interest. The agency also provides long‐haul passenger rail and bus services within, to and from South Africa.

  20. How to Start a Passenger Transportation Company

    Register it with the Secretary of State; decide on a legal structure, and choose a catchy business name. You must also apply for a tax ID number and get a commercial transportation license and/or ...

  21. The major projects planned for South Africa

    The major projects planned for South Africa - including new borders. SA News. · 23 Feb 2022. The Passenger Rail Agency of South Africa (PRASA) will over the next three years spend R42.1 billion ...

  22. South Africa Air Transport Industry and Aviation

    Passenger Transport. A substantial reduction in air travel left South Africa's air transport industry in financial crisis, resulting in liquidations and business rescues, staff layoffs, salary ...

  23. Monthly rail passengers in S.Africa 2022

    Monthly CPI of transport in South Africa 2021-2023 South Africa's rail passenger traffic 2009-2018 Net profit or loss in the transport and storage industry in South Africa 2010-2016

  24. NYC Congestion Pricing and Tolls: What to Know and What's Next

    Under the final tolling structure, which was based on recommendations by the advisory panel, most passenger vehicles will be charged $15 a day from 5 a.m. to 9 p.m. on weekdays, and from 9 a.m. to ...