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FM Corporate Report

02 October 2009 Xerox. The OriginalXerox. The Original



A switch



By Tamara Oberholster

Moving SA to a more developed transport system

The Passenger Rail Agency of SA (Prasa) is spearheading government's efforts to transform public transport in SA. This will realise the vision of "enhancing mobility as the gateway to accessible socioeconomic opportunities and a shared future".

The birth of the organisation heralds a new era for public transport - one of performance, investment and accountability. This will lead to the end of the historical underinvestment in the sector and facilitate the total transformation of passenger transport in the country.

Artist's impression of the Cape Town station

Prasa's beginnings go back to 2004, when cabinet approved the consolidation of passenger rail entities. In 2006 the first phase of this consolidation resulted in Metrorail being taken from Transnet and incorporated into what was then the SA Rail Commuter Corp (SARCC).

The second phase transformed SARCC into Prasa. Road-based regional bus passenger services company, Autopax (comprising the Translux and City to City brands) and regional and long-distance rail-based passenger business Shosholoza Meyl were transferred to the new integrated passenger transport entity.

Prasa also incorporates a fourth entity - a wholly owned subsidiary, Intersite Property Management Services - which administers the Prasa property portfolio and its development.

The new consolidated body aims to transform public transport in SA to create an integrated, intermodal transport solution that is both efficient and seamless. This will allow South Africans to access new socioeconomic opportunities and connect them with each other.

Over four years, beginning 2008/2009 and ending 2011/2012, Prasa will invest R25bn (R14,7bn on capital projects and R9,9bn on operations and system enhancements) to achieve the goals of sustainable and improved service delivery, effective asset management and improved accountability.

In his recent speech to the national assembly, transport minister Sibusiso Ndebele noted that: "Increased spending on rail infrastructure will be of vital importance in the current economic climate and in sustaining jobs." He pointed to a future where Prasa will be expected to play a major role in social and economic development as it moves people and communities, providing high-quality, reliable passenger transport solutions that improve lives.

As Prasa's moment of truth - the 2010 soccer World Cup - draws near, the organisation is set to welcome the world onboard. Says deputy minister of transport Jeremy Cronin: "2010 public transport is not just about the event, it is about creating a new public transport legacy for future generations."

As Prasa seeks to build that legacy, passengers in SA are set to experience its new slogan first hand and "be moved".

The power players behind Prasa

In 2008 amendments to the Legal Succession to the SA Transport Services Act of 1989 resulted in the renaming of the SA Rail Commuter Corp to the Passenger Rail Agency of SA and made provision for the transfer of long-haul passenger rail services and long-distance bus services to the agency.

This was not an overnight process, but one that required cabinet approval and the work of some dedicated players, including previous minister of transport Jeff Radebe.

Upon taking the reins as the incumbent minister, Ndebele has continued the drive to make government's vision for Prasa a reality as he concentrates his attention on World Cup preparations in the transport sector.

"The 2010 soccer World Cup is not just about sport, it is also about transport," he says. "Twenty-two soccer players and a referee in an afternoon at Soccer City is merely a practice game. It becomes a soccer spectacle only once the stadium is full of cheering fans, who can get there only because transport has taken them to the stadium."

Ndebele says that the World Cup is about placing transport infrastructure at the head of moving SA from being a developing country to being a developed country. He says the absence of adequate transport infrastructure slows down foreign direct investment.

"With a population of 48m people, SA has to pursue various efficient modes of transport," he says. "Our intention is to extend rail services to areas previously not covered and to improve the efficiency of the existing passenger railway lines. Government has committed over the next three years more than R25bn to improve our passenger rail system to eliminate missing rail infrastructure links and identify main infrastructure integration projects."

WHAT IT MEANS
R25bn put aside to improverail system
The 2010 World Cup will be the big test

He says SA has come a long way in arresting the decline of commuter rail services. However, there is still much work to be done to ensure a future in which public transport plays the role it ought to.

Prasa chairman Sfiso Buthelezi agrees, noting that Prasa is central to government's plan to position rail as the backbone of SA's public transport system. Rail will provide the foundation on which the transport network will be built, with greater integration between buses, taxis and rail necessary to create the intended seamless intermodal transport system across the nation.

Prasa group CEO Tshepo Lucky Montana says Prasa's strategy centres on improving delivery of services, effectiveness of asset management and accountability to the user. "Of the R25bn being invested in Prasa over the next three years, R14,7bn will finance the improvement of rolling stock, signalling projects, technology infrastructure, the upgrade of stations, as well as 2010 World Cup station upgrades," he says.

Lucky Montana

"R1,75bn is being spent on preparing for the World Cup. The 2010 plan also includes the refurbishment of a total of 2 000 train coaches. Major train station upgrades have commenced at Cape Town, Nasrec, Mabopane, Doornfontein and Orlando stations. In addition, Prasa is building new-generation stations at Bridge City (eThekwini), Moses Mabhida (eThekwini), Windermere (Cape Town) and Rhodesfield (Johannesburg)."

In terms of corporate governance, Buthelezi says that the Prasa board of control embraces the codes of corporate practice & conduct as set out in the King Report and ensures that the agency complies. The board is accountable to the department of transport and is tasked with setting out a strategic direction for the agency, overseeing its implementation and establishing clear performance targets across the areas of safety, health and environment; audit and risk; governance and performance; finance, capital and investment; as well as HR and remuneration.

Sindisiwe Mabaso-Koyana

Prasa has recently recruited Sindisiwe Mabaso-Koyana, a highly regarded charted accountant, as its chief financial officer. She brings a wealth of experience from the private and public sectors and regards joining Prasa as a "natural career move" within a sector she is familiar with - transport.

She says her focus at Prasa will be to deliver on the drive for strong governance and financial management, ensuring the optimal use of assets, while preserving them in support of Prasa's commitment to improved service delivery. "I will drive Prasa's strategies to strengthen its balance sheet and explore alternative financing models for the Rail Passenger business as it modernises itself for the future," she says.

Montana says the board is overseeing the implementation of the strategic plans, which will respond to the challenges faced by Prasa.

Prasa looks set to bring SA its much-needed integrated and efficient world-class public transport system.




"With a population of 48m people, SA has to pursue various efficient modes of transport" - SIBUSISO NDEBELE



New look - Artists' impressions of Nasrec Station and Rhodesfield Station


Sfiso Buthelezi



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