CHAIRMAN'S REPORT
The beginnings of new partnerships and real progress. That sums
up the period under review which contained much to encourage and
much that disturbed.
For most of 1992 the violence in and around our trains on the
Reef in particular was a grim and disturbing reminder of the general
instability and depressed state of the economy.
On the other hand, the commitment of the Corporation, backed
up by appropriate funding and the determination to do everything
in its power to eradicate this violence, began to pay dividends
towards the end of 1992. The deployment of the Rail Guard at key
stations, the development of hi-tech security systems for our
trains, and the security fencing of stations are just some of
the measures that were planned and are now being executed.
I believe we have turned the corner as far as the train violence
is concerned - and this would be one of our most important victories
if we succeed once and for all to provide a mode of transport
that is both safe and secure as well as the cheapest available.
The Corporation established very important partnerships with
the community through both the Train Accord, set up in July 1992,
and other forums where community-based groups were able to interact
directly with top management about commuter problems. These regular
meetings produced concrete suggestions which the Corporation has
sought to implement wherever possible.
Another very important achievement of the past year was the resolution
of the issues surrounding the Corporation's funding. Since only
about a quarter of our annual expenditure is covered by fares,
substantial additional funding is needed to cover the operating
deficit and meet essential spending on capital development and
new security measures.
The Government has now agreed to an acceptable and realistic
subsidy arrangement that will provide the basic funding necessary
for the Corporation's continued operation now and in the future.
A third very positive indicator of progress was the performance
of Intersite Property Management Services, the Corporation's property
development subsidiary.
Intersite produced very encouraging results that were an improvement
on its budget for the 1992/93 year. The income from the property
portfolio is utilised in limiting fare increases and reducing
the subsidy we require from Government and so leads to a direct
saving for the taxpayer.
During the past year Intersite also made substantial progress
towards improving commuter facilities. It has begun to upgrade
key stations in Soweto, as well as in other metropolitan areas,
and is doing this with a very extensive Public Involvement Programme
that ensures community participation at all times.
Looking towards the future
I am positive about the future and the role the Corporation can
play in making it a better one.
At national level the multiparty talks brought the political
groupings together around the negotiating table, a good basis
for building the foundations of the country's constitutional future.
On the economic front, while the depression still caused suffering
all round there were growing signs of co-operation between political,
business and labour leaders in the search for solutions that would
lead to sustainable development.
At our level there are three challenges we have begun to address
but which will require a strong commitment from our people if
we are to win.
First, there is the need to rapidly extend the security measures
we have started implementing in order to secure safe metro train
travel. Second, the Corporation has to tackle the issue of fare
evasion through which tens of millions of rands were lost in the
past year. Third, is the need to continue with the rapid upgrade
of corn muter facilities at stations. The intention is to go beyond
providing pleasant, safe and efficient train travel. We also want
to provide facilities that enhance the communities in which they
are centred - and this, I believe, is what our refurbished stations
are doing in Soweto.
Acknowledgments
We in the Corporation are most grateful to the Minister of Transport
and of Posts and Telecommunications, Dr Piet Welgemoed, for his
ever-available support, guidance and foresight.
The co-operation received from officials of the Department of
Transport has been invaluable, particularly in securing an agreement
with Government for the future funding of the Corporation. In
this regard I must also thank those officials of the Departments
of Finance and of State Expenditure and of the Policy Unit for
Public Enterprises and Privatisation who understood the funding
difficulties which faced the Corporation and who have helped towards
resolving the issue.
Once again, we acknowledge the involvement and support of the
Metro Division of Transnet Ltd which made it possible for us to
provide a quality service. I particularly thank the Metro staff
at all levels for their efforts this past year.
Then there is our team in the Corporation itself:
o My co-directors who gave of their time and expertise over the
past year and made my task so much easier.
The board of directors:
The Corporation's managing director, Mr Wynand Burger, who carried
out his heavy responsibilities with exemplary diligence and sound
leadership and with whom it has been a pleasure to work
The management team and staff who showed a real dedication to
their duties and achieved much to be proud of during the year.
I thank them all most sincerely for their commitment.
The SA Rail Commuter Corporation is a dynamic, people business
and I am proud both of its achievements during the past year and
to be associated with it.
J T M Edwards,
Chairman
