MANAGING DIRECTOR’S REPORT
Rail
commuting experience of the South African public was enhanced
by the successful implementation of commuter rail infrastructure,
station and rolling stock development programmes during the year
under review.
The Corporation received a subsidy of R1 727,0 million for 2000/2001.
(R1 372,0 million for operational costs and R355,0 million for
investment in capital projects.)
Upon taking over as the Acting Chief Executive Officer on 1
October 2000, management fast tracked the implementation of the
outstanding elements of the 2000/2001 Business Plan. Four task
teams were established in November 2000 to address the following
objectives: The management of the concessioning agreement with
Metrorail; Establishment of commuter rail Information Resource
Centre; Modal integration; and Devolution of rail services to
the lower spheres of government.
The Information Resource Centre task team’s outcome resulted
in the formation of a new division called the Information Management
and Communication Division on 1 May 2001 and the subsequent appointment
of a new Executive Manager, Ms Selomane Maitisa, to head the division.
Services
The second year of the four year negotiated concessioning
agreement with Metrorail (a division of Transnet) is now complete.
The Corporation strengthened its Contract Management Division
by appointing additional personnel to assist in the closer monitoring
of the contract. One of the highlights of the year, with regards
to the provision of commuter rail services, was the reinstatement
of services on the Katlehong–Kwesini line in October 2000.
This line was severely vandalised during the period preceding
the 1994 elections when the railway and stations were left abandoned.
The restoration of the line was completed in 2000 and the three
affected stations, namely Katlehong, Kwesini and Lindela were
redeveloped. People in the Katlehong-Kwesini areas, who have not
had the opportunity to use rail transport since 1994, are now
being catered for.
Stations
During the past year, the Corporation, through its subsidiary
Intersite Property Management Services, developed eleven stations
at a cost of R117 million. The station developments included the
building of the new Stretford Station in Orange Farm and the upgrading
of the Westgate Station, which included modal interchange facilities.
The Westgate development promotes an interface between the various
modes of transport in the public transport system. Station upgrades
are undertaken with safety and security in mind. The Corporation
continues to improve access control systems to facilitate the
safe flow of passengers. Station concourses, passages and stairways
at stations are also being improved.
Signalling
Subsequent to an infrastructure condition assessment, which
indicated that there is a backlog regarding the replacement of
the signalling systems, the Corporation embarked on a national
infrastructure rehabilitation programme to upgrade its signalling
system which is about fourty years old (on average).
During 2000/2001, four major signalling projects namely Braamfontein,
Croesus–Langlaagte, Kliptown–Nancefield and New Canada
were undertaken by the Asset Management Division of the SARCC
at a cost of R165 million.
Rolling Stock
The programme to refurbish the Corporation’s rolling
stock fleet of 4 500 coaches began during the year under review.
176 coaches in Cape Town and Johannesburg regions respectively
(88 each) are being refurbished at a cost of R400 million. The
first completed coaches will be delivered in the second half of
2001 in Gauteng and the rest by 31 March 2003. The refurbished
coaches have a new interior and externally, a more modern look.
During the year 2000/2001, 268 coaches underwent a general overhaul.
This is an ongoing programme that ensures that coaches are safe
to operate.
CHALLENGES
Funding
The ageing rolling stock fleet remains a concern for the delivery
of reliable and punctual service. Funding of the refurbishment
programme, which the Corporation has embarked upon has become
critical. The repeat ordering process will require a capital funding
of R400 million annually, and even this is woefully inadequate.
The full benefit of the programme will, however, only be realised
if our upgrade cycle is reduced to twelve years instead of the
present eighteen years. The refurbishment of the 4 500 coaches
at present cost would be R10,5 billion. If this programme is supplemented
by purchasing new coaches, it would cost about R40 billion, based
on new coach prices over a fourty year horizon.
Vandalism
Vandalism of rail assets remains a concern to management.
In 2000/2001 the Corporation spent R23 million on restoring and
replacing vandalised assets. There were two major incidents, which
affected the business during the financial year namely the national
security personnel strike during December 2000 and January 2001
which resulted in damage to coaches and stations and the burning
of the Pretoria Station. Restoration work on the Pretoria Station
has commenced and should be completed by December 2001.
Safety
Safety of commuters remains a priority for the Corporation.
Funds are invested in improving safety of operational facilities
such as rolling stock, signals, perway and stations on a continuous
basis.
The Corporation has appointed an independent risk management
company to oversee security and safety measures, which include
monitoring of passenger safety procedures in all six regions where
commuter rail services are provided.
The Contract Management Division, which manages and monitors
the Corporation’s contract with Metrorail, holds regular
safety meetings with Metrorail to ensure that Metrorail complies
with safety measures as contracted.
An Emergency Management Steering Committee consisting of SARCC,
Metrorail and Spoornet personnel at Executive level has been set
up to address emergency and safety plans on thirty two identified
stations and to co-ordinate actions where there is more than one
operator.
THANKS
The 2000/2001 financial year signified the beginning of the
acceleration of delivery of improved commuter rail services. I
thank my management team and staff for their extra effort and
co-operation in realising the objectives of the Corporation. I
also thank the Managing Director of Intersite, Mr Jack Prentice,
and his team for their continuing contribution to the business.
I appreciate the role of the Board of Control and our Chairman,
Mr Eddie Lekota, in enabling the Corporation to forge its way
into the future.
BEN VAN DER ROSS
ACTING CEO
