Media Release Thursday July 25 2002


To: News Editors/PR Wires


From: City Of Johannesburg


                   City saves over R155 million on fleet


Joburg  residents  were  saved  a  whopping  R155, 7 million and scored 93%
vehicle availability in a fleeting management deal.


The deal, which has been in place since last year after the City outsourced
its  vehicle  fleet,  came  about  after  poor  quality  of  internal fleet
management.  It  averaged 40% vehicle availability at a cost believed to be
higher  than the current deal. This figure is unknown due to inefficiencies
and  cross-subsidisation.  This  sorry  state  affairs  was  blamed on poor
budgeting  in  the  previous  Local  Councils, unnecessarily long approvals
process for repairs, non-replacement of vehicles and lack of adequate fleet
management.


The  5-year contract valued at R2, 6 billion was awarded to Super Fleet and
it covers all Council departments City wide and Council Utilities, Agencies
and  Corporatised  entities  (UAC's). Based on the projected contract costs
presented at the inception of the contract, fleet reduction, more effective
management  and  higher  availability of vehicles contributed significantly
towards  this  savings. Instead of R480 million per year, as projected, the
deal  cost Council R324, 3 million during the first year effectively saving
R155, 7 million.


The contract brought about availability of accurate information on vehicles
and  this allows the city to generate important statistics on the vehicles.
Over the last year, on its newer vehicles, the City travelled approximately
82  million  kilometres  and this translates to an average running costs of
R3.91 per kilometre.


Joburg   is  the  pioneer  in  this  type  of  fleet  management  with  the
implementation  of  this  service  contract.  Already there is considerable
attention  from  the  market,  other Councils and the private sector on the
performance of the contract.


ENDS.


For more information contact:


Mbangwa Xaba


Media Liaison


Tel: 407 7226


Fax: 403 3494


082 467 9230


mbangwax@joburg.org.za


Or visit our website


www.joburg.org.za






Nthatisi Modingoane
Media Liaison Officer
CITY OF JOHANNESBURG
Tel: (011) 407 7354
Fax: 403 3494
Cell: 082 467 9228
E-mail: nthatisem@joburg.org.za

For more information about this wonderful City of ours, please visit our
website : www.joburg.org.za

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