A concession is defined as:
"a privilege or right granted by a government to an entity for the provision of public services
in terms of service specifications, a performance regime and competitive bidding."
Contracts Management manages, among other contracts, the contract between the SARCC and
Metrorail, that of providing commuter rail services on behalf of SARCC.
Through Contracts Management, the SARCC ensures the provision and management of safe, reliable
and accessible service, property, infrastructure and rolling stock and the provision of
effective and efficient rail commuter services.
The aims 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
1.2 Concessioning Agreement with Metrorail
April 1999 SARCC stepped into the concessioning era, through the effecting of a four-year
exclusive concessioning agreement with Metrorail. The concessioning contract is exclusive for
four years and thereafter the entire South African rail network will be open for competitive
bidding.