Company Profile
Founding the company
On 1 April 1990, the South African transport services (National
Railways) become a Public company called Transnet Limited, as
a consequence of the deregulation of the transport industry. The
National Railways also shed its responsibility for Rail commuter
Services to the newly formed entity.
The South African Rail Commuter Corporation Limited (the Corporation)
was established at the same time to assume the responsibility
for the rail commuter services throughout South Africa.
The Corporation inherited all assets (land and properties) in
and around commuter stations and corridors for the purpose of
commercializing these assets to financially contribute to a reduction
in the subsidisation of the social commuter rail service. During
1992, a wholly-owned subsidiary company of the Corporation, Intersite
Property Management Services (IMPS), was formed to perform this
function for the Corporation.
The main objective and business of the Corporation is to ensure
that, at the request of the National Department of Transport or
any local government body designated as a tranport authority,
rail commuter services are provided in the public interest. Services
are currently provided by Metrorail Services, an independent division
of Transnet, in terms of an operating contract.
In pursuance of its commercialisation object, the Government
has opted for a Concessioning approach (being a privilege or right
granted by government to an entity for the provision of public
services in terms of service specifications, a performance regime
and competitive bidding).
The aim and objectives of concessioning as a restructuring instrument
are:
- To improve efficiency and quality of service
- To improve competitiveness
- To improve financial performance
- To target private sector capital
As an agent of government, the corporation has to ensure the
realisation of the objective of concessioning in South Africa.
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