Sarcc And Spoornet Sign Mutual Hire Agreement

The South African Rail Commuter Corporation (SARCC) and Transnet trading as Spoornet have announced the signing of a Mutual Hire Agreement, which governs the utilisation of each other's assets and related services.

The agreement, which binds both the SARCC and Spoornet, sets out the principles on which the mutual use of each other's assets are based. This includes conditions pertaining to access, usage or lease by either party of Rail Network Assets, Commercial Assets, Customer Related Assets, Depots and Office Accommodation.

The SARCC is the agent of Government and other Transport Authorities in ensuring the provision of effective, efficient and sustainable rail commuter services in the public interest. The SARCC recently signed a Concessioning agreement with Transnet's urban passenger rail division, Metrorail for the provision of these services.

The basis term of the Mutual Hire Agreement came into effect from April 1, 1999 and may terminate on March 31, 2003. Termination at a later date shall be based on mutual consent.

The terms of this agreement also stipulate the terms of compensation for the usage of infrastructure, rights and responsibilities of each party, and areas of jurisdiction and control in respect of premises under usage.

The agreement also stipulates operating standards for both parties, which covers issues such as safety, liability for damage, accident reports and emergency communications.

SARCC Managing Director, Mr Wynand Burger, described the agreement as historic and laying the foundation for a sound business relationship between the two organisations.