Hosken Passenger Logistics and Rail announced a 9.5% fare increase for passengers on its Golden Arrow buses in Cape Town – on the same day it unveiled a bid for a bigger share of the city’s commuter market.
Golden Arrow general manager Derick Meyer said fares would rise on December 31. The increase follows a 5% rise six months ago.
Meyer blamed “relentless fuel price increases” for the higher fares, saying diesel now cost 34% more than 18 months ago.
“The company has implemented rigorous cost-absorption measures and continues to focus on improved efficiencies, but total operational costs have still increased significantly,” he said.
“In addition to the rocketing cost of fuel, nationally determined wages increased by 9%. These two cost items make up approximately 74% of Golden Arrow’s total costs. A fares adjustment is therefore unavoidable,” said Meyer.
Hosken informed shareholders on Wednesday that it was negotiating to buy out fellow shareholders Sibanye Bus Services and Table Bay Rapid Transport.
Golden Arrow owns one third of Sibanye’s issued shares and 50.06% of TBRT, which operates some trunk routes on the City of Cape Town’s MyCiTi bus rapid transit service.
“While negotiations are still at an early stage and the acquisition of some or all of these shareholdings may not proceed, the company nevertheless considers it prudent to inform shareholders of the potential transaction,” said Hosken.