Property Management
The South African Rail Commuter Corporation is the custodian
of an extensive property portfolio with a nationwide spread. These
substantial property interest must not only be professionally managed,
but also astutely exploited to maximize commercial return. The Property
Management Division was specifically created in February 1991 to
acquire and direct the specialist management and business skills
necessary to fulfil this vital function.
Its primary objective is to efficiently and cost-effectively
manage the Corporation's properties, utilising them imaginatively
as a source of revenue, thereby significantly reducing the Corporation's
dependence on public funds for its commuter service. To achieve
this end, management of property resources cannot be confined
to simple stewardship. A more pro-active approach is required.
The Division's commercial objectives need, however, to be balanced
with its social responsibilities whereby the communities served
by the Corporation will derive a direct benefit from its property
management activities. This includes the enhancement of the commuting
experience by ensuring that appropriate facilities are provided
and their standards maintained or improved. It also encompasses
social upliftment through the creation of facilities, work and
entrepreneurial opportunities and improved urban integration.
With efficiency and profit generation being key, the Property
Management Division has decided upon a lean structure with an
entrepreneurial orientation. Franchising and network business
practices will therefore be employed to reduce staff levels and
administrative burdens.
The involvement of the private sector is desirable if optimum
utilisation of existing properties is to be achieved quickly and
new development potential rapidly explored. Close co-operation
with key players and potential partners in the property management
and development and financial sectors will therefore be an early
priority.
The unique geographic positioning of many SARCC properties, their
often forming the hub of our country's major metropolitan areas,
suggests that the Corporation will become an increasingly desirable
partner for those developers and financiers looking to unlock
the potential of South Africa's major urban centres.
A highly visible property owner with interests in the hearts
of our cities must acknowledge certain civic responsibilities.
Such developments will impact dramatically on the cityscape of
our major centres and on the lifestyle of millions of urban South
Africans.
Here, the exploitation of a new form of tenure for development
purposes - Air Space Rights - deserves a special mention. This
involves the use of modern construction technology to span rail
tracks and sidings to permit the development of air space above.
Air Space Rights could unlock many millions of rands in latent
potential within the property portfolio. These opportunities will
be pursued energetically by the Division.
Air Space Rights above our stations represent more than just
a major source of potential revenue. International experience
indicates that a major spin-off in the commercial utilisation
of these rights is the opportunity for more effective urban design.
They thus also present a fresh generation of city and town planners
and developers with the chance to breathe new life into South
Africa's city centres.
We do not believe that a commitment to the community, the urban
environment and wider social issues and the pursuit of business
opportunities to be mutually antagonistic. Indeed, synergies may
often be achieved. For example, it may well prove possible to
mobilise private sector funding to upgrade station facilities-
provided such initiative are linked to development schemes which
allow investors to derive an appropriate commercial return.
Already, the private sector has signalled its interest in investment
opportunities relating to the development of our property resources.
Shopping malls, commercial office developments, community centres,
educational and health facilities all look destined to achieve
much closer integration with our nation's transport infrastructure.
Commercial utilisation of railway property obviously cannot proceed
without due regard to the needs of commuters or the wider needs
of transport planning. Relationships will therefore be established
with those charged with the transport authorities and operators,
including taxi associations.
Rationalisation of the various transport modes is a critical
aspect of such planning. Previously undeveloped or underdeveloped
sections of station property will be utilised for the construction
of these facilities. Inter-modal transport facilities are high
on the new development agenda.
A further challenge lying ahead of the Property Division is to
harmonise their developments with the realities which are emerging
in the new South Africa - whether this entails facilities for
mini-bus taxis or the provision of retail space for market traders
and small scale entrepreneurs. The importance of informal sector
activity as a means of social upliftment is readily acknowledged.
The new Property Division of the SA Rail Commuter Corporation
clearly has a multi-faceted mission. It will e dedicating itself
to the exciting challenge of reducing the public funding of the
Corporation by initiating new business opportunities that both
generate financial returns and deliver significant benefits to
commuters and the communities in which they live.
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