Prasa’s collapse hit commuters in the pocket
THE Passenger Rail Agency of South Africa (Prasa) has not only lost its position as the leading commuter service operator in the country but has negatively affected low-income earners in the Eastern Cape who were forced to commute in taxis.
Last week, the Sunday Independent reported that Prasa acting CEO Nathaniel Roesch filed a court application to operate the AFRO4000 locomotives, which were previously deemed “too tall” for large portions of the country’s rail network, which marked the beginning of the collapse of the agency.
The liquidators of Swifambo, the company that was appointed in 2012 to supply locomotives worth R3.5 billion to Prasa from a Spanish company, Vossloh, are now seeking direction from the court on how the remaining locomotives can be distributed to Prasa in an effort to revive its long-distance passenger train services.
In recent court papers supporting the liquidators’ court case, Roesch argued that after an investigation the agency concluded the trains could be safely operated and wanted the delivery of all the “oversized” trains which it said it would modify.
It was unclear why the modifications were not considered when the courts held that the trains were unfit. The agency admitted that among those badly affected were Eastern Cape commuters who continued to suffer from the collapse of Prasa which failed to ensure that the locomotives were modified and safely operated – and save the agency from total collapse.
Roesch said: “The inability of Prasa to operate a reliable commuter service in the Eastern Cape has resulted in the passenger numbers dwindling over the past decade from about 7.7 million to a mere 150 000, and revenue from about R30m to R1.2 million.
“Prasa ideally requires four locomotives to operate the service and one for shunting. There is a significant demand for the service … A primary reason for this demand is that the taxi fare from East London to Ntabozuko is relatively expensive.”
According to the agency, the cost of a train ticket from East London to Ntabuzuko was R58 a week and R232 a month, compared to taxi fares of R600 a week and R2 400 a month. It said the majority of passengers who used the Prasa commuter service in the Eastern Cape were low-income earners.
The agency said its current fleet impeded the institution in its mandate and was in no position to support the business.
In 2009, Prasa operated a Mainline Passenger Service on 21 routes between major destinations in South Africa with 6 600 train trips that stopped at 95 stations and transported approximately 3.9 million passengers a year.
According to Prasa, its passenger profile was predominantly migrant workers travelling between rural and metro centres, and migrant workers from neighbouring countries including Mozambique, Malawi, Zimbabwe, Lesotho, and Zambia.
Prasa said in its court documents that economy class was the core service and contributed 87.5% of total revenue while premier class, tourist class, baggage, and car transport were additional services with a 12.5% contribution.
However, the routes decreased to four in 2020/21, train trips to 931 in 2020.
The court papers read: “Passenger numbers decreased to approximately 205 000 in 2020, a 93% loss of patronage, and further to a 99.5% loss by 31 March 2021. The routes further decreased to two in August 2022.
“During the 2023/24 financial year, Prasa operated only two routes: Johannesburg to Queenstown and Johannesburg to Musina, and the attempt to introduce additional routes between Johannesburg and Durban, and Johannesburg and Cape Town, in the high peak period between December 2023 and January 2024 was marked by a series of locomotive failures and infrastructure challenges.”
As a result, fare revenue declined from R228 million in 2010 to R67m in 2020, a 71% loss of revenue. Prasa should be funded to the extent of 40% by fare revenue.
Responding to the publication, Prasa spokesperson Andiswa Makanda said: “The AFRO4000s were manufactured at the height of 4140mm and did not meet the contractual specifications/did not comply with contractual specifications – grounds to review the contract.
“However, AFRO4000s can run on non-electrified and 25kV lines of the network.
“Prasa needs reliable locomotives to provide long-distance and Metrorail commuter services in the Eastern Cape, where the network has been de-electrified.
“For Prasa to continue delivering on its mandate and urgently save the long-distance and Metrorail commuter services, a competitive bidding process may prolong the provision of locomotives. The business continues to suffer losses due to the failings of its current ageing fleet of locomotives.”
The Special Investigating Unit, which investigates matters referred to it by the Presidency, announced in February this year that its eye was now on the Swifambo contract, and investigations into the Swifambo director and Prasa were under way.