Green Square Consulting has extensive experience in the following areas:
Costing Public Transport Tenders
Assisting public transport operators to tender for government (passenger transport) or private sector (staff transport) is a service we offer for this niche market. The tender documents are voluminous and can be overwhelming
for smaller public transport operators. We have the skills, expertise and resources to compile and submit a tender on time that is compliant to the administrative and technical requirements, is competitively priced, and still provides the shareholders with a fair profit.
Providing a market related, tender price for a seven year contract requires insight into the public transport market, the economy of the area where the services are required, and an understanding of transport industry-related inflation, to name a few prominent risk drivers. The transport industry inflation is often higher than the general inflation rate as the industry is sensitive to fuel pricing and the Rand exchange rate against major currencies where the chassis and major components of the Original Equipment Manufacturers (OEMs) are sourced. In addition, all of the seven year contracts are net based, which means the operator takes the fare revenue risk.
The realisation that the formal public transport market requires more competitors to level the playing field and ultimately provide competitive prices that are underscored by supply and demand principles is growing, especially in the public sector. We therefore see this service offering expanding in the future. Green Square Consulting has assisted Litsamaiso (Pty) Ltd with tendering for the following contracts:
- Public Transport Operating Grant contracts for three areas in the Gauteng Province;
- Rea Vaya Phase 1A;
- Crew and ground staff transport services for the Airports Company of South Africa (ACSA);
- Routes where vehicle shortages occur from time to time for the Passenger Rail Agency of South Africa (PRASA); and
- Staff transport services for Glencore Lion Smelter in Mpumalanga.