Once again, the property management and development arm of the Corporation has done an outstanding job of optimising returns on the property portfolio. Besides the 36% growth in income, Intersite formally signed an agreement with the SA National Roads Agency to manage and develop its extensive portfolio.

Since its inception in 1992, Intersite has contributed about R310 million to the Corporation's income stream and, through this, helped to ease the subsidy burden. With its new responsibilities for the Roads Agency, Intersite will be looking to optimise the returns on these properties as well.

Intersite has also been very successful in facilitating public-private sector partnerships in its drive to maximise returns on State assets. In the past six years, R747 million of private sector investment has been mobilised into 61 Intersite developments, bringing the total invested in the Corporation's property portfolio to R1,2 billion since 1992.

There are also new opportunities in the wings. Two countries outside South Africa have asked Intersite for proposals to develop their public property portfolios, further recognition of the particular success the property management subsidiary is enjoying.

EMPOWERMENT

THE CORPORATION'S RESTRUCTURING HAS OPENED OPPORTUNITIES TO BETTER BALANCE THE ORGANISATION COMPOSITION.

Once completed, this process will result in a top and middle management structure that better reflects both the demographic distribution and the profile of the commuters being served. Continual staff development and training and the opportunities of concessioning and regionalisation will create the environment for ongoing staff promotion and growth. Intersite has also established a sound record of empowerment. More than 60% of its contracts has been awarded to companies owned and operated by previously disadvantaged groups, with another 30% awarded to joint ventures where skills transfer and capacity building are promoted.

With regard to capital projects, contracts worth R78 million were awarded to black-owned companies during the year under review.

THE FUTURE

The formalising of the concessioning agreement with Metrorail and resolving the funding problem, the Corporation finds itself with the two top priorities for the coming year. Both are linked in that the introduction of concessioning could be jeopardised by these funding problems. However, these are regarded as challenges to be overcome. Both the Corporation and Metrorail are positive about the future and determined to resolve the issues for the good of the commuter.

THANKS

The year under review has not been easy and more challenges are lying ahead, particularly if the depressed economic situation in the country is taken into account. I am, however, confident that with the continual support of our Chairman and the Board of Control and an excellent and dependable management team and staff, we will successfully negotiate the year ahead.

Wynand Burger
Managing Director