A problem that faces the Corporation is the ageing rolling stock and a need to ensure
sufficient passenger coaches. The financial implications are high. Therefore, innovative ways
of financing rolling stock need to be found.
While the Corporation fully understands that it is not realistic to maintain the current level
of the commuter rail subsidy over the longer term, it therefore has to balance its determined
reduction in costs with fixed infrastructure and input expenses and the need to service routes
that are essential and economical. It is disappointing that the subsidy was not sufficient to
meet costs, of which Metrorail as the contractor carries the lion's share.
FUTURE
The Corporation aims to achieve and demonstrate effective and efficient management of the
Metrorail contract from the service and cost aspects. Our focus in this regard, combined with
our determination to succeed with a major concession agreement (the demonstration project),
should benefit the Corporation's stakeholders and in particular enhance the quality of service
observed by the rail commuters. We want to be closer to transport authorities at all levels and
to become the champion in ensuring the provision of world-class commuter rail services for
these transport authorities.
THANKS
As always, it has been my pleasure to have the guidance and input of the Minister of Transport,
Mac Maharaj, and his Director-General, Khetso Gordhan. It is with sadness that we have said
goodbye to Mr Gordhan who has moved on to other pastures. At the same time, we welcome the
opportunity to work with the new Director-General, Dipak Patel. My thanks to these gentlemen
and their officials for what they have done for us during the past year.
The Board of Control has also continued to show its fine calibre with excellent input and
advice to me. My sincere thanks to the Board for its support this year. We were sad to say
goodbye to a stalwart in the person of Dr Malcolm Mitchell, the representative of the
Department of Transport since the inception of the Corporation in 1990, who retired in March
1998. Dr Mitchell gave fine support and input for which we are most grateful. We also say
farewell to Charles Reynolds, the provincial representative of the Eastern Cape provincial
government, who resigned from the Board. In their places I welcome Harald Harvey from the
Department of Transport and Dr Vanguard Mkosana representing the Eastern Cape government. I
hope their stay with the Corporation will be long and fruitful. The part played by the
Participant Observers who represent provinces has been invaluable.
Also, to Zandile Jakavulu, Metrorail's Chief Executive Officer, and his staff, my thanks for
their efforts for their endeavours to provide the commuter rail service. We look forward to
signing the new agreement. This agreement must enhance the rail commuter experience.
FINALLY, I MUST THANK THE CORPORATION'S MANAGING DIRECTOR, WYNAND BURGER, FOR HIS MANAGEMENT OF
THE CORPORATION, INTERSITE'S MANAGING DIRECTOR, JACK PRENTICE, FOR HIS CONTRIBUTION, AND THE
EXECUTIVE MANAGERS AND STAFF FOR THEIR DEDICATION AND HARD WORK. WE HAVE A GOOD TEAM IN PLACE
AND LOOK FORWARD TO A SUCCESSFUL 1999.
John Edwards
Chairman
