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The Portfolio Committee on Transport appreciates the good work and leadership shown by the Passenger Rail Agency of South Africa (PRASA) executive management team, led by Group CEO Mr Lucky Montana, as well as the complimentary relationship that exists between the management and the Board.
 
The magnitude of their good work was evident during the finalisation of the agreement for the first phase of the procurement process of the Rolling Stock Fleet Renewal programme which was signed between the Passenger Rail Agency of South Africa (PRASA) and the successful bidder, Alstom led Gibela consortium.
 
The signing of the agreement, witnessed by the President Jacob Zuma and visiting French President Francois Hollande, signals the beginning of a long-awaited process to ensure that the long held view that rail must regain its strategic position of being the backbone of the transport industry. “The Committee is pleased that the long engagements it held with PRASA, whilst sometimes robust, will finally start to bear fruit. The Committee is further still of the view of that more infrastructure investments, especially within the transport industry is needed if this country’s economy is to thrive,” said Ms Ruth Bhengu, Chairperson of the Committee. The Committee has long held the view that the revitalisation of South Africa’s the rail network is central to the country’s economy.
 
The investment made by government on railway transportation is central in addressing social and economic issues in South Africa, such as job opportunities that will be created when local production of trains begins. On the social side, an efficient railway transportation system would have a significant impact in reducing fatal road accidents that claim 14 000 lives per year costing the country in access of R306 billion. These investments will also assist in reducing the time of travelling reducing the urban influx which has resulted in an ever-growing number of informal settlements as people move from rural areas to towns and cities resulting in the disintegration of the family unit and an ongoing perpetuation of the migrant labour system.
 
The introduction of high speed trains, that are able to travel at 300km/h, will make it possible for a person who resides in Newcastle and works in Johannesburg to stay at home with his family as that person would only need an hour to travel between the two areas. This would eliminate the high cost involved in maintaining two households; the primary home and workplace, meaning people will have more money in their pockets. Another spinoff is that the burden to provide services will be lifted as there will be less informal settlements.
 
The Committee also welcomes the announcement of the future establishment of a manufacturing plant to be built in Gauteng. It is through this manufacturing plant that skills development and skills transfer necessary to sustain the sector in the future will be implemented. “The Committee has always held a view that skills development and job creation are central if the country is to successfully implement an integrated transport model that addresses socio-economic issues in the country. The number of job opportunities that will be created through this programme and new skills that will be transferred will assist in building the capacity within the rail industry in the country to sustain railway transportation for years to come” the Chairperson emphasised.
 
The Committee has identified a gap in terms of policy which then requires a commitment from the Committee as the legislative arm of state as well as the Department of Transport to ensure that we produce the required piece of legislation so as to create a conducive environment for railway transportation to play its central role of being the backbone of transport in South Africa. Such an approach will open trading opportunities including transportation of goods and services as well as the public across the African continent at safe and affordable standards.      
 
The Committee also welcomes the explanation by the PRASA management following the recent media reports alleging that the agency violated the Preferential Procurement Policy Framework (PPPF) as well as Treasury regulations on rolling stock in awarding a R 3.5 billion locomotive deal to Swifambo Rail. The Committee has long held the view that internal capacity must be build in the country within the rail industry were the entire value chain, from design to maintenance of trains is done internally. But this cannot done overnight and should not be the reason used to delay the revitalisation of ageing locomotives. The Committee accepts that at the time of the awarding of the tender Transnet did not have the capacity in-house to deliver as per PRASA’s requirements.
 
The Committee further welcomes the assurance that the locomotive deal as well as the R 123 billion rail rolling stock fleet renewal programme was done through an open and competitive procurement process.