Passenger Transport

A complete passenger transport solution to customers in the commuter, personnel, intercity and tourism markets

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The Unitrans Passenger Transport division offers a diversified passenger transport solution in southern Africa, covering the commuter, intercity and tourism markets. The business is aimed at building a transport service that matches customers’ requirements.

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This specialised service offering focuses on innovation, safety, service and cost optimisation, which has positioned the business as a market leader, providing fit-for-purpose passenger services to customers in South Africa, Mozambique and Zimbabwe.

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The Unitrans Passenger Transport division offers a diversified passenger transport solution in southern Africa, covering the commuter, intercity and tourism markets. The business is aimed at building a transport service that matches customers’ requirements.

This specialised service offering focuses on innovation, safety, service and cost optimisation, which has positioned the business as a market leader, providing fit-for-purpose passenger services to customers in South Africa, Mozambique and Zimbabwe.

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27
DEPOTS
1 408
REVENUE-EARNING VEHICLES
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3 794
EMPLOYEES
110 million
KILOMETRES PER ANNUM
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“We strive to be the preferred passenger transport service provider, differentiated by high standards of safety and reliability.”

– Nico Boshoff

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Business environment

The Passenger Transport division found trading conditions challenging during the year, particularly during the second half. The intercity and tourism operations experienced lower industry passenger numbers and aggressive competition on all routes. The division was unable to recover the impact of inflated fuel costs on its legacy commuter contracts. The impact of a 19% higher average diesel price compared to the prior year, which the division was unable to contractually recover, amounted to R54 million for the year. The remainder of the commuter and personnel travel operations performed satisfactorily despite a particularly challenging environment with increasing unemployment levels. The division’s Mozambique operations performed well, showing revenue and profit growth.

Commentary

The primary focus of this division is the renegotiation of onerous conditions in its commuter contracts and the rationalisation or sale of its intercity operations. The division continues to pursue growth opportunities where it can earn acceptable returns, including further expansion in Mozambique.
With the ever-increasing movement of people between South Africa and southern African countries, Citiliner opened its first service to Malawi in September 2018 to complement the current Zimbabwe and Mozambique routes. During March 2019, additional services were opened from Johannesburg to Mzuzu via Lilongwe in Malawi.

Outlook

While the uncertain political and resultant subdued economic environment impact negatively on the division’s areas of operation, the division remains well positioned to deliver attractive returns on capital employed.

A strategic review has been initiated in relation to the division’s intercity operations to optimise the allocation of capital. Commuter contracts are currently being renegotiated. The amendments to the contracts will assist in the recovery of fuel inflation, improving both income and margins.

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