Transnet PRASA dispute

[Stefan Andrzejewski]

This article appeared in the Cape Times this morning.


Thousands of Shosholoza Meyl passengers were left stranded as long-distance train services had to be halted due to a financial dispute between the Passenger Rail Agency of South Africa (Prasa) and Transnet.

Prasa claims Transnet reneged on providing services to it following the sale last year of Shosholoza Meyl - the long distance train service. Transnet denied the claim.

"The relationship between ourselves and Prasa is contractual."

"We have fulfilled all our obligations in terms of such contracts which relate to the provision of access to the rail network, haulage services, shunting and maintenance of rolling stock," said Transnet spokesman Mboniso Sigonyela.

In April last year Transnet sold Shosholoza Meyl to Prasa for an undisclosed amount. As part of the deal coach maintenance would have been provided by Transnet at a cost to Prasa.

Since the transfer the companies have been in discussions regarding the takeover process which Tiro Holele, general manager for Corporate Affairs at Prasa, said was a "difficult task".

Months of negotiating proved fruitless.

[John Ashworth]

I was going to book a ticket on Premier Classe Jo'burg-Cape Town for next week. Anyone know whether Premier Classe is affected by this dispute?

[Craig Duckham]

Blue Train and Premier Classe not affected by dispute.

[John Ashworth]

Thanks, Craig. I went to Pretoria Station to book this morning but found that it's fully booked for next week. The ticket seller told me it's because of the special offer on fares this month. Good to see that Premier Classe is doing so well, but this time I'll have to go by air. Next time...

[allanroy]

from IOL

Shosholoza Meyl train services would run a limited long-distance service nationally for around two weeks before phasing in a revised service, the Passenger Rail Agency of SA (Prasa) said on Thursday.

Prasa spokesperson Lillian Mofokeng said the cost incurred to run the current train service was way above what the business could afford.

The changes would focus on essential services and meet customer demand.

The revised schedule would be communicated to customers 72 hours in advance.

People who had already booked their trips were urged to contact the call centre to verify the availability of their trip.

Alternative transportation had been arranged to ferry passengers with valid train tickets.

Shosholoza Meyl services were also disrupted on Wednesday due to the unplanned unavailability of coaches.

Trains were affected in Gauteng, Eastern Cape, Western Cape, Durban, Musina and Komatipoort.

Mofokeng said the usual service between Johannesburg to Cape Town would run up to Kimberley and buses would collect passengers from Kimberley to Cape Town.

"A normal service will operate on the Cape Town-Durban route."

People should call the Shosholoza Meyl call centre on 0860-008888 for further information. - Sapa

Johannesburg to Cape Town would run up to Kimberley and buses would collect passengers from Kimberley to Cape Town -

Why does the train not keep going, whats the point of stopping it there?

[Stefan Andrzejewski]

Exactly. Poor management.

[Aidan McCarthy]

The reason may be that Kimberly is the switch over to 25 kV AC traction from the 3 kV DC.

[fanie kleynhans]

If the trains is going to stop at Kimberley what will be left to photograph down here? Premier Classe, Blue Train and Rovos seems what is left. The other day when I took a trip to the Wellington area I was there for a few hours and didnt even see a freight train.

[Chris Janisch]

If I may comment, this dispute has been a long time in the making.
Basically, TFR are a business unit and own the network. They thus charge PRASA and all other operators business tariffs. Government wants pax services to run and creates PRASA, but does not give them nearly enough money. Passenger services are by definition non-profitable. The only reason heritage pax ops make money is because of volunteer services, or in the case of Rovos a tight, well-managed and well-promoted business. PRASA ops do have have these luxuries.
There is also the issue of TFR rates. They are known to cahrge extremely stiff access, pilot and loco hire fees, which cannot be disputed since they have a 100% monopoly of the network. Heritage rail suffers dreadfully under this yoke.

The solution is as follows:
-Goverment to step in and support ALL passenger services including heritage, for many reasons, ie saving the roads, providing the public with a service, promoting tourism etc.
This support to be financial as well as logistical, through Tourism and Transport Depts inter alia.
-Government to create the much-talked about Economic Rail Regulator to take control of the network, and standardise access fees. ERR to remove discriminatory practices against non-TFR operators and open up the network, and promote rail usage.
-TFR to enter into the spirit and encourage rail usage as much as possible.

The dissolution of the old SAR into business modems has been a failure. Too many non-productive jobs created, too many interfaces and regulations, too much politics, all which this country cannot afford. Bring Transport back under one umbrella.

Easier said than done, but without a real plan and good leadership the last remnants of passenger transport on the railways will perish, and sooner rather than later.

[Derek Walker]

I think that the one comment made about Rovos sums it up "a tight, well-managed and well-promoted business" That is something none of these organisations can boast of. The day the railwaymen left and were replaced by accountants was the beginning of the end. There is a certain logic that says that if you have no passengers the best way to attract more is not be removing the service but by making it more affordable, safer, more efficient and more attractive to the public and tourists.

[John Ashworth]

Chris, Derek, whatever the merits of Rovos Rail's tightness and organisation, I don't think it's fair to include them in a discussion of passenger transport, as they are not a passenger operation in the normal sense of the word. They offer a 5-star luxury hotel on wheels experience to a relatively small group of people who can afford to pay outrageous prices. They do it very well, it's good for the tourism industry, they should be congratulated for it, etc, but it can't in any way be compared to a normal passenger operation which is trying to get lots of bums on seats from A to B at an affordable price in competition with planes, buses and cars.

[Steve Appleton]

PRASA halts virtually all passenger trains - Johannesburg to Durban Premier Classe next week is the sole survivor - says a story by Paul Ash in today's Sunday Times.
See: http://www.friendsoftherail.com/phpBB2/ ... 090#p24090

[Adelbert Stigling]

John - spoken as a true raiwayman that has gone trough the mill and I muust agree whole heartedly

[Chris Janisch]

I am not comparing Rovos with other passenger services. What I am saying is that all passenger services suffer from restrictions and high tariffs charged by TFR. And that government support is necessary from an economic and tourism point of view.

[John Ashworth]

MEDIA RELEASE
14 AUGUST 2010

PRASA RESPONDS ON ITS DECISION TO SUSPEND ITS LONG DISTANCE TRAIN SERVICES

The Passenger Rail Agency of South Africa (PRASA) and Transnet are doing everything in their power to address the issue of service suspensions of the Shosholoza Meyl Long Distance Trains and commence with the running of the service without further delay.

Shosholoza Meyl long-distance trains suspended its services due to operational difficulties experienced with its service providers, Transnet, in servicing the Shosholoza Meyl trains.

“PRASA pays Transnet huge amounts for the maintenance of Shosholoza Meyl locomotives as well as additional amounts to get access to the Transnet network. In fact, Transnet has been given the first right of refusal to render maintenance and refurbishment works. However, PRASA is not receiving quality and reliable services from Transnet to enable it to render decent train services to passengers. It will be difficult to continue to run these services when service levels are deteriorating on any given day. It is totally unacceptable that Shosholoza Meyl’s on-time performance stands at 35%, with passengers experiencing delays of up to 12 hours on-a-day to day basis due to failure by Transnet to do its work despite its high prices”, said Lucky Montana, Group CEO of PRASA.

When PRASA took over the running of Shosholoza Meyl in April 2009, there was an agreement between PRASA and Transnet that long distance trains will be guaranteed access on the lines historically operated by Transnet. In addition, PRASA gave Transnet the first right of refusal to take over all engineering works such as the servicing of locomotives, the inspection of locomotives, refurbishing of trains and access to the system in order to run the long distance trains. A capped amount of R300 million per annum was agreed upon between PRASA and Transnet and over R461 million has been paid by 15 July 2010, the rest of the amount award stands in dispute between the two entities.

“At the heart of the dispute is the inability of Transnet to adequately prove the alleged amounts owed to it by PRASA which are over and above what has been paid by PRASA. PRASA is prepared to go to arbitration in order to resolve the matter once and for all. The actions by Transnet are unconstitutional and prejudice the citizens of South Africa and rural travelers who are most reliant on the long-distance service,” added Mr. Montana.

PRASA is currently in high-level talks with Transnet to jointly resolve the issues and to immediately restore a skeleton service.

ends
Contact person:

Nana Zenani
Spokesperson for PRASA Group
082 626 8844
nzenani@prasa.com