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National Land Transport Act, 2009 (Act No. 5 of 2009)

Chapter 6 : Regulation of Road-Based Public Transport

Part 2 : General provisions

52. Maximum validity period of operating licences

 

(1) An operating licence is valid for a maximum period of seven years, but where a negotiated contract has been awarded to an operator under section 41 for more than seven years, such an operating licence must be issued for the period of the contract in terms of section 56.

 

(2) Operating licences must be granted for a fixed period determined by the entity granting them, where applicable based on the directions of the planning authority contemplated in section 55.

 

(3) In determining the validity period of operating licences for non-contracted services, the following must be considered, subject to the dictates, if any, of relevant integrated transport plans:
(a) Current and envisaged trends in utilization on the route or routes, or, where applicable, in the area, concerned;
(b) the efficiency of the proposed services in meeting user needs;
(c) where applicable, the likelihood that in future the service may no longer be required in terms of the integrated transport plan; and
(d) the likelihood that the service may become the subject of a commercial service contract or a subsidized service contract.