HRASA update 27 September 2009

[John Ashworth]

Update from HRASA

September has been a pivotal month for the Heritage railway Association of
South Africa.

Early in the month, a most constructive meeting was held with the new
Transnet Foundation head Cynthia Mgijima, and other key officials. A good
understanding was developed at this meeting and both sides showed a
willingness to do business. A number of decisions and plans were made at
this meeting, which bode well for the future of heritage rail.

After discussions and suggestions from both parties, a new MoU is being
entered into between HRASA and Transnet. The document effectively enshrines
the principles of co-operation and mutual respect as business partners.
HRASA, which through its members has the knowledge and experience necessary,
has been realised as being vital to the advisory and decision-making
processes, as Transnet move towards dealing with the question of
reallocation and disposal of remaining heritage assets.

This MoU is valid for a period of one year, but will in all likelihood be
renewed on an annual basis. This is of course dependent on the achievements
of the partnership, and the need to work as a team, but we are very excited
about the possibilities that now exist.

Following on from this, HRASA made the recommendation that Transnet develop
a policy framework for the management of their assets and their approach to
heritage rail. Transnet have made it clear they require assistance and
advice regarding the day-to-day management of the above, and in fact would
like to dispose of as many of the assets as possible in consultation with
all relevant stakeholders. They do however acknowledge that they have a
responsibility of ensuring that proper processes are put in place so that
the assets may be best accounted and cared for, and that tourist railways
benefit. HRASA, as advisory body to TF, was thus asked to provide input for
a draft a policy for TF, which would be a mix of what would be good for both
sides, but with the focus on the upliftment of our industry.

We would like to see established and new operations developing and
flourishing, thus providing stables for heritage assets country-wide. This
of course can only be achieved through the direct intervention and support
of Transnet. The draft policy has been submitted and has attracted
favourable comment, and now awaits modification and legal formatting by
Transnet's legal department. We have also been asked to make recommendations
as to the future of the remaining rolling stock scattered around the
country. The submission thereof will follow shortly.

These processes are wonderful indications of the trust and co-operation that
is developing at last between the two bodies. We have certainly come a long
way since last year!

The Millsite/Humewood Road Deed of Donation is of course still on everyone's
lips. A decision was made on this following legal and practical issues
emerging from the issue.

In a nutshell, the DoD has been cancelled, as there was agreement that the
original DOD did not fully serve Transnet and HARSA interests. To this end,
the assets thus revert to Transnet. The allocated stock will now be dealt
with as part of a new holistic approach to the country's assets. Scrapping
will be only be considered where the stock is damaged beyond reasonable
levels and is of no historic significance.

There is a sincere desire from Transnet to sort out the heritage question
once and for all. Time is of the essence and we would all like the process
to be expedited as soon as possible.

The biggest challenge in dealing with the allocation and disposal of assets
will be funding. There are a number of possibilities and these will all be
investigated and implemented if at all feasible. What HRASA would like is
that all monies raised from sale of unwanted stock be ploughed directly back
into preservation. It is hoped that lend-lease will be reactivated shortly,
and that items in danger can be moved to places of safety as recommended by
HRASA.

There have been considerable internal changes and events within HRASA.

Following on from the BoD meeting held in PE on 22 August, it has decided to
allocate each of the seven directors a responsibility. This will ensure that
the workload is spread out and that a truly team effort results. It cannot
be expected for the chairman and secretary to do all the work. Director Ed
van den Heever presented a restructuring model at the meeting, together with
recommendations as to a Code of Conduct, Fiscal and Corporate Discipline and
Levels of Authority. A company vision has been implemented and reads as
follows:

"To be the recognised representative body for the benefit and support of its
members and oversight of the heritage rail preservation and heritage rail
tourism industry in South Africa".

Our mission statement is a challenging yet realistic set of goals:

"To provide effective direction and efficient administrative infrastructure
for the preservation and management of rail heritage, preservation and
heritage rail tourism industry throughout Southern Africa for the benefit
and enjoyment of its stakeholders who are: Our Members, Our Stakeholders,
Our Volunteers, Our Suppliers and The Community".


To this end , the clear responsibilities of each director are as follows:

Corporate Liaison- Chris Janisch
Operations- Ian Pretorius
Marketing- Nerina Skuy
Financial- Mark Robinson
Tourism- Dudley Smith
Corporate Governance- Ed van den Heever
Member Liaison- Elize Lubbe

Monthly reports are to be submitted by each director, following which a
summarised report will be issued by the secretary.

In addition to the above, the board has co-opted the following members to
assist:
Coen Pretorius, Bruce Brinkman, Kevin Wilson-Smith, Charles Phillips, Mike du Plooy.

Each portfolio is allocated a number of board members to assist as a
subcommittee. Where necessary, expertise from outside is also sought to
assist.

We would like this to be an all-inclusive exercise. Anyone in the heritage
rail community who has something positive to offer is most welcome to become
involved. The days of exclusivity and the Ivory Tower are over. We are
responsible to the industry and will hear and act upon its needs and
suggestions.

Our adopted Code of Conduct is available and is attached.

Further positive news is that the Rail Safety Regulator has approached HRASA
with a view to establishing a set of standards specifically geared to our
industry. A most successful meeting was held between key HRASA and RSR
personnel earlier in the month. The result was that the two bodies will work
together to formulate a proper code of understanding, to be followed by the
abovementioned standards to be complied with. This is very important in the
modern theatre where rail safety is a prerequisite to operations.

HRASA is to dramatically increase its focus on tourism and the importance of
gaining governmental attention to our industry. We are most fortunate in
having the services of Dudley Smith, who has pioneered the concept of rail
tourism in a small municipality, and which will no doubt set the benchmark
for further such projects. Dudley will also be representing South Africa at
the World Heritage Conference in Brisbane during October, where we are sure
he will gain much insight into the successful establishment and operation of
tourist railways. Thanks are due to SIA for driving the fundraising effort
to get Dudley to Australia.

We are hopeful of increasing our membership base. This will increase
revenue, which is much needed, as well as making us even more
representative, and also bring more skilled people into the fold. We aim to
increase our service levels to the point that each member gains great
benefit from membership.

HRASA is to hold its next board meeting at the end of October, where we will
be able to gauge the progress made and measure the contributions of each
director. Nothing will be achieved without hard work.

In summary, I am happy with the progress of the new HRASA. Some great
breakthroughs have already been made, but we have many challenges ahead,
which we look forward to facing head on.

Chris Janisch
27 September 2009