CHAIRMAN’S REPORT
Subsequent
to the South African Rail Commuter Corporation (SARCC) Board of
Control’s (the Board) end of term, the Minister of Transport,
Dr. Dullah Omar, appointed new members to the Board with effect
from 1st October 2000. The new appointments constituted five Non-Executive
Directors, with Messrs. Peter Malungani and Ben van der Ross,
respectively appointed as Acting Chairman, and Acting Chief Executive
Officer. On the 28th February 2001, I was appointed the Chairman
and Mr. Malungani the Deputy Chairman. An additional Non-Executive
Director was appointed to the Board at the same time.
I, therefore prepare this report as the incoming and in-charge
Chairman as at the end of the financial year under review. In
particular, I would like to indicate that the aspects of this
report, under the “review” heading, are based on my
assessment of the progress of the Corporation against the year
2000/2001 business plan, inclusive of the brief I received from
my predecessor and management.
BACKGROUND
Commuter rail transport, as a component part of the overall
public transport system, plays a significant role in the social
and economic development of South Africa. Our Government has identified
the development of public transport, as one of its major focus
areas. In particular, the promotion of rail as the preferred mode
of public transport has recently been given a high priority in
Government debates and public statements. I regard this goal as
a challenge and an opportunity for SARCC and other government
entities involved in the provision of rail services.
Through an effective commuter rail transport, there will be
an increased mobility for people to gain access to opportunities
of employment, education and social integration. On the other
hand, the promotion of tourism within the country is, amongst
others, dependent on the effective, efficient, safe and reliable
public transport system. The mission of commuter rail transport
is guided by the Constitution of the Republic of South Africa
(RSA), the objectives of the Reconstruction and Development Programme,
and the development policies of the Government of National Unity
(GNU)
REVIEW
The SARCC signed an agreement, based on concessioning principles,
with Metrorail (a business unit of Transnet) for the provision
of commuter rail services. The main focus during this financial
year was to ensure the delivery of quality commuter rail services
in South Africa on the basis of this agreement. To this effect,
a task team was established to develop strategies for restructuring
and re-alignment of the Contract Management Division. Proposed
plans would be put in place during the following financial year.
To achieve the objective of developing a reliable commuter rail
information database and to build rail intelligence, the SARCC
established the Information Management and Communication Division.
This division also focuses on the building of a new image for
the SARCC that would reflect a transformed, efficient and service
oriented entity. The Communication Strategic plan has been developed
by this new division and would be implemented during the 2001/2002
financial year.
Ageing rolling stock fleet remains a concern with regards to
the reliability of the service and the possible compromising of
safety in the future. Despite the shortage of funds to buy new
coaches, a programme to refurbish 176 coaches was put into motion
during 2000/2001. The appointment of contractors to carry out
this project took place during the financial year. In order to
complete the refurbishment programme, an amount of R10,5 billion
is required in the next 40 years. Intersite upgraded eleven stations
nationally at a cost of R117 million during the year, some of
which were officially opened by the Minister of Transport. The
SARCC’s transformation programme inclusive of the objective
to develop commuter rail capacity were not successful. This is
mainly due to a moratorium placed on the filling of existing posts
and a creation of new ones. However, the SARCC has developed the
Employment Equity Plan in line with the requirements of the Employment
Equity Act.
The delivery of commuter rail services suffered a slight set
back as train punctuality decreased from 91.19% in 1999/2000 to
89.65% in the year under review. This is mainly due to the declining
condition of rail assets and the implementation of internal operations
rationalisation programme from a study conducted by the operator.
One other contribution to the decline in service is vandalism
of asset, which includes the cable theft, removal of parts of
coaches, and even arson to property and trains.
CHALLENGES
The progress review above, when measured against the background
stated earlier and the 2000/2001 financial year business plan,
highlights significant challenges to the SARCC during the next
and subsequent financial years. These challenges include:
- The development of the appropriate, effective and efficient
institutional structures within the rail industry with a clear
and focused role of each player. This process will have an effect
on the improvement and development of the delivery capacity
of the SARCC.
- The relationship of the SARCC and stakeholders within the
commuter rail sector and other related passenger transport services
also needs to be reviewed for improvement in that commuter rail
service cannot function optimally in isolation to other modes
of transport. This aspect should also include the proactive
practical implementation of the modal integration transportation
system, which is complemented by logistics such as the through-ticketing
system usable in all related modes.
- The development and implementation of sustainable asset funding
strategies for the growth of the commuter rail asset base to
ensure improved rail operational services, accessibility and
better network coverage, and thereby achieve the government
objective to make rail the preferred mode of transport.
- Implementation of appropriate commuter rail alternative technologies,
investment strategies that would predominantly benefit South
Africans and systems to penetrate middle and high income segments
with rail services. The aim is to reduce the congestion on the
roads caused by uneconomic use of private cars that amount to
the total cost of approximately of R124 billion per annum. However,
a simultaneous effort should be made to also maintain rail as
the cheapest and affordable mode that provides the improved
benefits to the lowest income category of South Africans.
- The protection of both the rail commuters and assets through
the implementation of the visible and effective safety and security
measures. A parallel programme aimed at creating a positive
mind-set in the communities and rail commuters should be embarked
upon. FUTURE The SARCC aims at turning commuter rail into the
preferred mode of public transport that provides a safe, reliable,
effective, efficient and co-ordinated system, with fully integrated
rail transport operations and infrastructure. Visible, genuine
and effective transformation of the SARCC with regard to its
employee demographic profile, implementation of the affirmative
procurement programmes, and the overall change of the image
should be implemented.
FUTURE
The SARCC aims at turning commuter rail into the preferred
mode of public transport that provides a safe, reliable, effective,
efficient and co-ordinated system, with fully integrated rail
transport operations and infrastructure.
Visible, genuine and effective transformation of the SARCC with
regard to its employee demographic profile, implementation of
the affirmative procurement programmes, and the overall change
of the image should be implemented.
The corridors and terminals of the commuter rail network should
become the backbone of the sustainable small business development
that would would contribute to the growth of the South African
economy. The implementation of strategies that would improve all
commuter rail management efficiencies, build human skill capacity
within the industry and in turn contribute towards making the
transport industry one of the preferred employers in the country.
The devolution of rail services and accompanying decision making
to the lower tiers of government inclusive of a proactive role
towards assistance to build capacity for the transport authorities
to be formed.
ACKNOWLEDGEMENTS
I hereby record my acknowledgement of the leadership and contribution
of my predecessors Messrs John Edwards and Peter Malungani, inclusive
of my fellow Board Members for their unqualified support to the
business of the SARCC during the year under review.
I would also wish to express my appreciation of the guidance
and support provided by the Minister of Transport, Dr. Dullah
Omar, his Director-General, Mr Sipho Msikinya, Officials from
the Department of Transport and all other stakeholders representing
the interests of the Government (shareholder).
To the Chief Executive Officer of Metrorail, Mr. Honey Mateya,
his predecessor Mr. Zandile Jakavula, the executive management
and staff, I thank them for the commitment shown in the provision
of operational commuter rail services in a challenging and volatile
environment. I also note the support provided to Metrorail by
the Transnet Board and Chairperson (Prof. Louise Tager).
On behalf of the Board, I would like to thank the Acting Chief
Executive Officer of the SARCC, Mr. Ben van der Ross, his executive
management, and staff for their efforts under a challenging environment
during the financial year. I also acknowledge the important role
played by Mr. Jack Prentice, Managing Director of the subsidiary
company, Intersite Properties (Pty) Ltd, management and his staff
in managing the property portfolio of the SARCC.
EDDIE LEKOTA
C H A I R M A N
