http://www.businessday.co.za/articles/C ... ?id=117710
Blue Train sells for a rand
TRANSNET was negotiating to sell the Blue Train to the Passenger Rail Agency of SA (Prasa) for R1, acting CEO Chris Wells stated in Transnet’s annual report released yesterday.
JULIUS BAUMANN
Published: 2010/08/12 06:36:29 AM
TRANSNET was negotiating to sell the Blue Train to the Passenger Rail Agency of SA (Prasa) for R1, acting CEO Chris Wells stated in Transnet’s annual report released yesterday.
Mr Wells said previous attempts to dispose of Transnet’s 100% shareholding in the luxury train service were terminated when a deal could not be reached with the preferred bidder. Prasa then approached Transnet as a potential buyer.
Prasa Rail CEO Tumisang Kga-boesele said yesterday the sale was to have been completed by the start of the 2010-11 financial year, but Prasa was awaiting confirmation of state financial support for the loss-making entity. The Blue Train is forecast to make a R65m loss in 2010-11.
“When we took over Shosholoza Meyl we only received R400m in subsidies, yet we had to carry a loss of R1,2bn as we began the costly process of turning the service around. We cannot afford to have the added cost of the Blue Train without additional support,†he said.