R/€ = 15.24Change: 0.00
R/$ = 14.40Change: -0.01
Au 1057.02 $/ozChange: -0.86
Pt 828.00 $/ozChange: -7.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Apr 03, 2009

New passenger rail agency seeks to crowd in private investors

Africa|Gautrain|Gautrain Rapid Rail|Projects|rail|Rolling Stock|rolling-stock|System|Systems|Technology|Transnet|transport|Africa|Gautrain|Logistics|Service|Systems|Gautrain|Gautrain|Infrastructure
Africa|Gautrain|Gautrain Rapid Rail|Projects|rail|Rolling Stock|rolling-stock|System|Systems|Technology|Transnet|transport|Africa|Gautrain|Logistics|Service|Systems|Gautrain|Gautrain|Infrastructure
africa-company|gautrain-company|gautrain-rapid-rail|projects|rail|rolling-stock|rolling stock|system|systems-company|technology|transnet|transport|africa|gautrain-facility|logistics|service|systems|gautrain-organization|gautrain|infrastructure
© Reuse this

The leadership at South Africa’s newest State-owned enterprise, the Passenger Rail Agency of South Africa (Prasa), claims it is keen to find ways to partner with private investors on some of its commuter rail and bus projects as it prepares to invest R25-billion over the next three years.

The utility will combine the already merged assets and employees of the South African Rail Commuter Corporation and Metrorail, with those of Shosoloza Meyl and Autopax, the long-distance rail and intercity bus compa- nies respectively, which currently fall under the aegis of freight logistics group Transnet.

Property management and development company Intersite would also be consolidated into the 13 000-plus employee entity to manage, maintain and upgrade stations, as well as to pursue projects that could extract value from the group’s substantial property assets.

The sale agreements between Prasa and Transnet for the transfer of Shosoloza Meyl and Autopax into Prasa should be concluded soon.

Chairperson Sfiso Buthelezi says that the preconsolidated organisation had already materially increased the scale and pace of its investment into the upgrading of both infrastructure and rolling stock.

He says it will spend R5-billion in 2009/10 and that over the three-year medium-term expenditure framework horizon, a total of R25-billion would be invested to arrest a back- log created by decades of underinvestment.

However, CEO Lucky Montana insists that this catch-up expenditure will be insufficient to ensure that the utility is able to increase its capacity much beyond the 643-million passenger journeys currently being achieved.

To move to a different level of service delivery, new infrastructure, technology and systems would be required, including high-speed trains to link into the emerging Gautrain rapid-rail network and a possible light-rail investment programme.

Planning was already under way for the proposed develop- ment of the so-called Moloto rail corridor, running between Tshwane and Mpumalanga, which would cost R9,7-billion.

In addition, initial investigations were being pursued in the creation of a high-speed train between Johannesburg and Durban.

Buthelezi indicates that Prasa is keen to pursue these developments in partnership with the private sector, but both he and Montana stress that the service will only be economically viable and remain affordable if government were to make greater subsidy contributions.

Speaking at the launch event in March, Transport Minister Jeff Radebe stressed that the development of Prasa was central to government’s plan to place rail back at the heart of South Africa’s public transport system.

But he also stressed that the strategy was premised on greater integration between buses, taxis and rail, and outlined his vision for a 24-hour, single-ticket system across modes and metropolitan and provincial boundaries.

Radebe lauded progress that had been made in stabilising the utility, which he said had been on the brink of collapse in 2004.

Since 2006, some 1 400 coaches had been refurbished at a cost of R4-billion; over 2 000 railway police had been recruited and deployed, which had helped to lower rail- related crime by nearly 40% in the last quarter; and R300-million had been set aside for immediate station refurbishments, which would be completed ahead of the 2010 FIFA World Cup.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
Other Transport & Logistics News
French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
In its opinion outstanding e-toll bills are related to an unjust and irrational law which makes it unnecessary for businesses to be concerned about the amount they owe or to disclose it as a debt to shareholders, the Opposition to Urban Tolling Alliance (Outa) said...
Latest News
Updated 12 minutes ago Creamer Media’s second edition of its African Mining Projects in Progress 2015 report tracks project developments taking place across various mining sectors on the continent, including coal, copper, gold, iron-ore, platinum and uranium.
French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96