THE rolling stock renewal programme of the Passenger Rail Association of South Africa (Prasa) will serve as a catalyst for the re-industrialisation of South Africa’s railways.

According to Prasa’s project manager for the programme, Piet Sebola, the organisation wants to buy new trains and hopes in so doing to re-stimulate the country’s railways industry in an inclusive and sustainable manner.

In giving his view on the massive project to be rolled out next year, Sebola was also responding to concerns raised by the Black Business Council (BBC) that South African, particularly black, businesses were thought of as participants downstream and not upstream where critical business decisions are made.

CEO Xolani Qubeka said BBC wished to engage Prasa on the roll-out to facilitate better participation by black businesses.

But Sebola says Prasa has already engaged with black enterprises in market linkages that were intended to solicit their participation.

“We are excited about the fleet renewal project. It is like a rebirth of rail infrastructure development. The last time we produced railway components was in the 1950s.

“In this project, we will be migrating from the 1950s technology to ultra-modern technologies. In our specifications we have insisted that a minimum 65% of components be locally sourced.

“This will give local manufacturers leverage to establish processes that will enable them to meet our requirements.”

One of the outcomes of the programme will be that new skills focusing on engineers, technologists, technicians and artisans will be developed and enhanced, Sebola says.

He says the programme has been designed to empower black businesses with a minimum of 30% having been set aside for black ownership in the main contracting company.

“Of the 30%, we want 10% to go to employees of the company. Another 10% will be set aside for suppliers to the railway sector and other participants in the broader industry.

“Then 3% is targeted for educational trusts. Passive investors can participate in the remaining 7%.

“In our view this will achieve our objectives of meaningful participation by black businesses and second, a truly broad-based distribution of opportunity,” Sebola says.

 

 

Source: http://www.sundayworld.co.za