30 march 2000
Master of ceremonies,
Chairperson of the board of control, dr Keevy Steyn,
Members of the board of control,
Previous chairperson, mr Mafika Mkwanazi,
Management of the SARCC and intersite and
Distinguished ladies and gentlemen.
It is a privilege for me to address you tonight during this very special time in the history of the South African Rail Commuter Corporation. As you are all aware, this corporation, the SARCC, was established on 01 april 1990 with the aim of ensuring that commuter rail services are provided in the best interest of our commuters who happen to be located in the disadvantaged communities of our country.
Since its inception, the board and management of the corporation had to deal with major difficulties which include politically motivated violence during the early 90's, continuous criminal activities on trains and at stations, the mariannhill-train accident in 1994 in which 68 people were killed and 391 injured, continuous vandalism of trains, and the unfortunate stampede at tembisa station where 15 people were killed and 97 injured.
But notwithstanding these difficulties, the corporation still manage to reach major milestones over the past 10 years.
Firstly, great successes were made with the management and development of the corporation's fixed assets, strategically located in the major metropolitan areas. This resulted in the establishment of a wholly-owned subsidiary, namely intersite property management services. Intersite is currently busy with very exiting developments and I think the board and the management of intersite can rightfully feel very proud about achievements in property development. These developments do not only ensure that strategic assets are fully utilised, but it also assist in limiting the financial liabilities of the corporation and enhances the asset value of the corporation's portfolio through third party investment.
Secondly, Metrorail, an independent division of Transnet, was established in 1994. The corporation also played a vital role in the ringfencing of the commuter rail operations within Transnet. This development enabled the corporation to enter into a concession-type agreement with metrorail in terms of which commuter rail services are currently provided. The advantages of the agreement are already being experienced by commuters as it led to vast improvements in the punctuality, cleanliness, and the overall commuter experience.
Thirdly, the development of the Park Station. This strategic asset is viewed as one of the prime properties of the corporation but it was in desperate need of rehabilitation and upgrading. After major refurbishment and the building of a sky deck, a world class intermodal facility can now be provided to long-distance passengers.
Another achievement, is the corporation's contribution towards the development of historically disadvantaged individuals. The development of the bath and cookhouse at Park Station is one of the best examples of what can be done to assist hawkers and other informal traders to operate in an organised manner. The last achievement which I would like to highlight is the enthusiasm with which the corporation embarked upon the hiv/aids campaign and for which they won the financial mail - prism award for best pr practices. The prevention of hiv/aids is the responsibility of all of us, and it is in the interest of our country and our children that we continue to actively persuade this issue. Mr chairman, ladies and gentleman, there are however a number of challenges ahead of us. The first and foremost is that of funding. I think you will agree that we have to a large extent dealt with the operational needs , but the backlog in the maintenance and provision of fixed infrastructure and rolling stock is a major challenge. In the coming financial year, my department in collaboration with the corporation will embark upon a process to determine and quantify the backlog in order for me to make sustainable recommendations to parliament.
One thing is for sure, we should no longer solely rely on government funding, but alternative funding mechanisms such as public/private partnerships should be persuaded. I am very concerned about the fact that the rail industry had to cancel a number of tenders for the replacement of rolling stock over the last few years, and I think the board's decision to spent R100 million of the capital budget annually on the refurbishment of rolling stock, is a step in the right direction.
The second major challenge is the implementation of the concessioning pilot project and the finalisation of the concessioning roll-out plan. It is absolutely crucial that the corporation works very closely with the transport authorities in implementing concessioning. I would also like to recommend that three specific issues be addressed in the development of these concessions, which are firstly, ways to limit fare evasion, secondly, the elimination of duplicate subsidised services provided by bus and rail and lastly, improved modal integration and co-operation with buses and minibus-taxis.
The third challenge is the institutional reform of commuter rail. As you are aware, my department is currently managing a process during which alternative institutional structures will be identified. I would like to assure you that, before parliament be approached for approval of a new institutional structure, an independent international expert will be appointed to evaluate the outcome of this study.
Mr chairman, I will not do justice to tonight's function if I do not pay tribute to my predecessors, the previous and current chairpersons and members of the board, and the previous and current management of the corporation, intersite, departments of finance and state expenditure and my own department. All I can say tonight is thank you for the contribution everyone made since the establishment of the corporation.
I would like to conclude by specifically thanking the chairperson of the board, mr John Edwards. He is not only the longest serving member of the board, but he is also chairperson since 1991. John, thank you very much for the time and special effort you have put in guiding the corporation during the last 10 years. I know sometimes things were very difficult, but in spite of that you managed to stay positive and motivated.
Ladies and gentlemen I would therefore like to request you to stand and give a warm applause to mr John Edwards, the management of SARCC and intersite and anybody else who contributed to the success of the SARCC.
Thank you