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.