CHAIRMAN'S REPORT
The restructuring of commuter rail into a more focused, cost
effective service deliverer is underway. After years of neglect,
a new Government focus on this mode of transport has paved the
way for a fundamental change in the way commuter rail services
will be managed and financed in the future.
Three developments, in particular, have set the scene for the
change:
- First, the future of Metrorail was finally decided and it
became an independent division of Transnet on April 1, 1997.
This has removed the uncertainty which clouded the pats three
years and provides greater autonomy and flexibility for the
management of Metrorail.
- Secondly, the Department of transport has opted for concessioning
as the new approach to the management of commuter rail services
and appointed the rail commuter corporation as government agent
for implementing the system. In terms thereof, the corporations
will help to restructure commuter rail services so that specific
routes will be opened up for public tender in the future.
- Thirdly, responsibility for commuter rail services, along
with all land-based public transport, will ultimately be develop
to provincial and metropolitan authorities in terms of the new
Constitution.
This will undoubtedly lead to greater integration of commuter
rail into public transport planning - a positive development that
will lead to more accountability for service delivery.
Positive performance
Increased revenue, better cost coverage, more people using
trains - these are the positive indications of a Metrorail that
is gaining in heath and vitality.
Importantly for our role as the administrators of the annual
subsidy paid by the State, we have succeeded in bringing down
this amount, in real terms, every year since 1992 to 32 % this
year.
I would like to congratulate the tight and effective financial
management in both the corporation and Metrorail for achieving
this excellent result - and sustaining it over the years.
Although the corporation is exempt from taxation in terms of
legislation (with the exception of Value Added Tax, Regional Council
Service levies and other indirect taxes), our contribution to
state revenue through income tax and these other taxes is a significant
indicator of our positive role in economic growth. In the year
under review it reached R 241 million.
Intersite
The corporation's property management company continued its
remarkable success story with another year that reaffirmed its
record of achieving more than 25 % growth each year. During 1996/1997,
intersite turned in its best year ever - property development
projects worth R 180 million were undertaken which more than doubles
the output of the previous year.
The future
The introduction of concessioning has been embraced with enthusiasm
by all the Corporation's staff and its new vision and mission
promise a future that is looked forward to with optimism.
The establishment of regional and metropolitan transport authorities,
far from shrinking the corporation's sphere of activities, will
open up a range of new possibilities. The expertise that has been
and will be built up within the corporation will be valuable resource
for these fledgling authorities.
Thanks
As always, we are extremely grateful for the excellent relationship
we have with the Minister of Transport, Mr Mac Maharaj, and his
Director General, Mr Ketso Gordhan, and their staff. This adds
a most positive outlook to our future and that of commuter rail.
This year is also one of farewells and new beginnings. We congratulate
the former staff member of the Corporation who transferred to
Metrorail and we wish them well in their new adventure. Metrorail
and all the staff under Zandile Jakavula also carry our good wishes
as they prepare to tackle the challenges concessioning will pose.
We extend our thanks and a farewell to board member Sibusiso
Buthelezi who was with us for a very short time before taking
up another position.
We also welcome participant observers onto our board, representing
the four provinces where Metrorail operates - Jack van der Merwe
of Gauteng, Roy Petersen of Western Cape, Charles Reynolds of
Eastern Cape and Jenny Gray of KwaZulu Natal (who takes over from
T M Manyati).
These new members, will bring depth of transport knowledge and
insight which will be most valuable to us. We are delighted to
have them on board!
To the stalwarts on the Corporation Board, my sincere thanks
for another year of sound advice and guidance which has always
been shared freely and has proved most valuable.
Finally, my appreciation for the management and staff of the
Corporation under Wynand Burger, and Intersite under Jack Prentice.
Both re professional teams that are pioneering new approaches.
I am privileged to work with you and thank you for your support
and co-operation during the year.
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