A New State Enterprise Invests R25 Billion to Transform the Country’s Public Transport
System
20 March 2009
Johannesburg, South Africa: Leading South African branding firm, The Brand
Leadership Group leads Department of Transport has expanded the mandate of the South
African Rail Commuter Corporation (SARCC) to launch a new business that will invest
R25 billion in the transformation of the country’s public transport system over
the next three years.
The event, held at Johannesburg Park Station Concourse, featured the Grammy Award
winning Soweto Gospel choir and celebrated poet, Lebo Mashile, was attended by over
1,500 VIP’s, government and business representatives, commuters and a live transmission
to over 13,500 staff in 7 regional venues.
The transformation of SARCC into the Passenger Rail Agency of South Africa (PRASA)
has been in process since December 2004, when Cabinet approved the consolidation
of passenger rail entities in two phases, initiating the total transformation of
public transport.
Phase 1, completed in May 2006, was the consolidation of Metrorail into SARCC. Phase
2 involves the transfer of Shosholoza Meyl and Autopax (the long distance passenger
bus operator - Translux and City-to-City) into SARCC, creating an entity that makes
rail passenger transport the backbone of an integrated mass public transport network.
Intersite Property Management Services, is a subsidiary of PRASA responsible for
property management and development, as well as maximising return on investment
in the stations and property portfolio.
"Due to fragmentation, the responsibility for passenger transport service provision
did not facilitate the seamless movement of passengers. The old model for commuter
rail created a separation of asset ownership and operations that resulted in severe
limitations in the business’s ability to deliver effective commuter rail services,”
says Tshepo Lucky Montana, Chief Executive Officer of PRASA.
"PRASA is the culmination of a deliberate process and policy of Government to transform
passenger rail to form the basis of a sustainable, integrated and efficient mass
rapid public transport network, and to improve service to passengers," says Minister
of Transport, Jeff Radebe.
The new brand, with the promise: be moved, was developed, implemented and launched
by The Brand Leadership Group. It is inspired by the insight that an efficient,
integrated transport system enables commuters to build relationships and pursue
opportunities that create value for the individual as well as the economy.
"The brand symbol – a seamless intersection of two wheels representing rail and
road – denotes an efficient, integrated network," says Thebe Ikalafeng, founder
of the Brand Leadership Group.
"The optical illusion of the new brand symbol reflects the new business’s commitment
to a continuous innovation in meeting commuter and economic needs," he says.
Shosholoza Meyl, with an active coach fleet of 1,223, transports 3,970 million passengers
each year, of which the sitter or economy class travellers contribute 87.5% of total
revenue.
Autopax operates the three established brands: Translux – the luxury long-distance
intercity bus operator, City to City - a semi-luxury, no-frills long distance bus
operator and City-to-City Express - a no-frills regional service. Together they
serve over 100 destinations throughout Southern Africa.
Of the R25 billion injection into PRASA over the next three years, R14.7 billion
will finance the improvement of rolling stock (coaches), signalling projects, technology
infrastructure, the upgrade of stations, as well as 2010 FIFA World Cup station
upgrades like Orlando Station. The plan will also see a total of 2 000 train coaches
refurbished as part of the 2010 FIFA World Cup preparations.
"Undoubtedly, the establishment of PRASA will result in improved efficiency in the
delivery of services, improved effectiveness of asset management and improved accountability
to the user," Montana concludes.