http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 20, 2009

New public-transport utility promises R25bn investment push

Back
Prasa CEO Lucky Montana on his vision for a modernised and expanded passenger-rail business. 20/3/2009. Cameraperson: CorpCinema. Editing: Darlene Creamer.
 
 
 
Engineering|Africa|Gautrain|Gautrain Rapid Rail|Projects|Rolling Stock|rolling-stock|System|Systems|Transnet|Africa|Gautrain|Service|Systems|Gautrain|Gautrain|Infrastructure|Rail
Engineering|Africa|Gautrain|Gautrain Rapid Rail|Projects|Rolling Stock|rolling-stock|System|Systems|Transnet|Africa|Gautrain|Service|Systems|Gautrain|Gautrain|Infrastructure|Rail
engineering|africa-company|gautrain-company|gautrain-rapid-rail|projects|rolling-stock|rolling stock|system|systems-company|transnet|africa|gautrain-facility|service|systems|gautrain-organization|gautrain|infrastructure|rail
© Reuse this



A new State-owned rail and bus public transport utility, dubbed the Passenger Rail Agency of South Africa (Prasa), was officially unveiled on Friday with a promise of a R25-billion investment programme over the next three years.

The utility would 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 companies respectively, which currently fell under the aegis of freight logistic 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.

Speaking at the launch, which took place symbolically at Park station, in Johannesburg, which is Southern Africa’s largest commuter rail and bus hub, Transport Minister Jeff Radebe indicated 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.

The sale agreements between Prasa and Transnet for the transfer of Shosoloza Meyl and Autopax into Prasa were meant to be concluded soon. But Radebe also criticised Transnet reported tardiness in ensuring that the deals were concluded and in ensuring that affected employees were properly consulted.

He described this failure as “totally unacceptable”.

Transnet refused to comment on the matter when approached to do so by Engineering News Online.

CROWDING IN THE PRIVATE SECTOR?
Prasa chairperson Sfiso Buthelezi said 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 said that it would 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 backlog created by decades of underinvestment.

However, CEO Lucky Montana insisted that this catch-up investment would be insufficient to ensure that the utility was able to increase its capacity much beyond the 643-million passenger journeys currently being achieved.

To move beyond that level, 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 development of the so-called Moloto rail corridor, running between Tshwane and Mpumalanga, which would cost of R9,7-billion.

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

Buthelezi indicated that Prasa would be keen to pursue these development in partnership with the private sector, but both he and Montana stressed that the service would only be economically viable and remain affordable if government were to make greater subsidy contributions.

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 FIIFA World Cup.

Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Two influential US senators, central to the so-called ‘chicken war’, have announced their intention to pursue amendments to the African Growth and Opportunity Act (Agoa) to secure greater access for US poultry into the SA market. “We believe passionately in Agoa’s...
The Independent Communications Authority of South Africa (Icasa) on Friday published the findings of a discussion document on South Africa’s television and radio local content environment. Icasa last year requested industry input as it reviewed and revamped...
Buying the catering unit of cash-strapped state airline South African Airways (SAA) could work for Bidvest Group, its chief executive said on Friday. SAA is considering selling some of its units including its inflight and airport lounge catering business, Air Chefs,...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
SMART DISTRIBUTION Providing funds to introduce smart grid technologies in the absence of a clearly defined strategy will not result in the desired outcome
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
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