Sunday, February 14, 2010

Rail Officials Blame Government Underfunding for Poor Service

South Africa's passenger rail agency is struggling with financial burdens, and officials blame underinvestment on the federal government. Some questions now remain about whether train infrastructure will be ready to carry the crowds expected to travel throughout the country during the World Cup

The Passenger Rail Agency of SA (Prasa) yesterday pinned the blame for the commuter rail parastatal's financial woes on underfunding from the Department of Transport, and on the poor performance of some of its own managers.

In an advertisement 'open letter' to the Democratic Alliance's (DA's) Manny de Freitas in Business Day yesterday, Prasa CEO Lucky Montana said a due-diligence report on Shosholoza Meyl, one of Prasa's subsidiaries, had revealed that the group required about R1,4bn a year to run this business "effectively".

South Africa: Passenger Rail Chief Blames 'Underfunding'
February 10, 2010