ON 1 APRIL 1990, THE SOUTH AFRICAN TRANSPORT SERVICES (SATS) BECAME A PUBLIC COMPANY CALLED TRANSNET LIMITED, AS A CONSEQUENCE OF THE DEREGULATION OF THE TRANSPORT INDUSTRY. AT THE SAME TIME, THE RESPONSIBILITY FOR COMMUTER RAIL SERVICES WAS TRANSFERRED TO A NEWLY FORMED ENTITY CALLED THE SOUTH AFRICAN RAIL COMMUTER CORPORATION (SARCC).

SARCC is an agency of the National Department of Transport. It inherited all assets (land and properties) in and around commuter stations and corridors from SATS for the purpose of commercialising them in order to reduce Government subsidy for commuter rail. The property portfolio is managed by Intersite Property Management Services (IPMS), a wholly owned subsidiary of the SARCC, which was established in 1992.

SARCC has contracted Metrorail Services, a division of Transnet; to provide commuter rail services on its behalf. These services are provided in six regions: Witwatersrand, Pretoria, Cape Town, Durban, Port Elizabeth and East London.

The main function of SARCC is to ensure that, at the request of the National Department of Transport or any local government body designated as a transport authority, rail commuter services are provided in the public interest.

To pursue its objective of commercialising commuter rail assets, Government has opted for a Concessioning approach (being 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). SARCC has been charged with the responsibility of implementing concessioning in South Africa.

The SARCC employs about 100 people, with the majority of employees based at the head office in Johannesburg, and a few in two regional offices in Cape Town and Durban.

Vision

The SARCC is the recognised champion in ensuring the provision of world-class commuter rail services for all transport authorities.

Mission

The South African Rail Commuter Corporation is the preferred agent of Government and other transport authorities. The Corporation is committed to ensuring the provision of effective, efficient and sustainable rail commuter services in support of public transport through:

• Sound asset development and management
• The development and management of concessioning and other contracts in the field of rail commuter services and the related infrastructure
• Assisting and advising on policy development and the implementation thereof
• Research and development and other specialist functions.

Business Objectives

• To be an effective concessionor by ensuring the provision of safe, reliable, clean and punctual rail commuter services.
• To position the Corporation, in line with its new role as concessionor, with its stakeholders and the public.
• To plan and facilitate optimal rail commuter infrastructure expansion.
• To manage optimal utilisation of funds and rail commuter assets.
• To develop and manage concessioning and other contracts relating to rail commuter services and infrastructure.
• To enhance the value of the Corporation's assets by facilitating investment from external sources.
• To create opportunity for economic empowerment.
• To promote rail commuter transport as the preferred public transport mode.
• To ensure value for money in the utilisation of the rail commuter subsidy with a view to decreasing the subsidy.