Fin24

Prasa hit by R1bn loss

2011-10-13 12:18

Cape Town - The passenger rail agency of south Africa (Prasa) has reported a loss of R1.019bn for the 2010/11 financial year.

Prasa reported a loss of R1.26bn in the previous financial year.

Prasa CEO Lucky Montana told parliament on Thursday that passenger rail did not generate sufficient resources to recapitalise itself.

"Metrorail passengers are generally lower income earners, which makes it difficult to increase ticket prices."

Prasa is the owner of the inter city passenger trains, Metrorail as well as the long distance rail operators, Shoshaloza Meyl.

Prasa also operates Intersite, a property management company and Autopax, which is a national passenger bus service.

Montana said Prasa struggled with the high cost of operating an old railway system with rolling stock older than 40 years on average.

He said the agency suffered a serious decline in rolling stock availability and reliability in the past year.

"The result was a decline in passenger trips from 633 million in 2009/10 to 471 million in the past year."

He however, said the group remains positive, albeit with a number of challenges.

"We have started rolling out our recapitalisation programme as well as implementing a new signalling system. These projects will take a number of years to complete."

 

Comments
  • noitall - 2011-10-13 12:50

    why are we not surprised! I take any bet the MD still got a fat bonus

  • Patrick - 2011-10-13 12:53

    What a disaster!

  • SMME owner - 2011-10-13 12:58

    Could this be the real reason why Prasa does not pay its accounts ? Did work for them in early July, still waiting for payment...... Excuses given many and varied, I wont be doing work for them again

  • motsoka - 2011-10-13 13:08

    My goodness nothing good comes from this company! Just scrap the whole thing

  • Neutedop - 2011-10-13 13:26

    And a new signalling system will turn it all around how???

      ANC-FTL - 2011-10-13 16:11

      A tender will be put out and it will go to some BEE company who will then pass it over to a well-run company who will get paid very little because the other company who won the tender took all the profit. It has nothing to do with making it profitable just making their comrades richer and richer - Government "Making SA a better future for all"... year right - Talk about sustainability.

  • Craigr - 2011-10-13 13:31

    Ummm... how much was really due to losses, and how much of the 1 Billion was for CORRUPTION....

  • micasa - 2011-10-13 13:36

    decline in number of passengers but want to spend more money on implementing signalling system ? how is that going to increase revenue. put out a tender for the signalling system that has no use and make a loose of R2bn next fiscal year

      Muffdiver - 2011-10-13 13:47

      Maria Ramoses legacy....unqualified people due to cadre deployment and now shes running ABSA

  • Seniorman - 2011-10-13 13:41

    And they want us to believe that the Gautrain will be profitable?

  • Freethinker - 2011-10-13 19:12

    Financial year 2009/2010: Loss R1.26bn on 633 million passenger trips Financial year 2010/2011: Loss R1.01bn on 471 million passenger trips Passenger volume dropped by +/- 25% in one year. At this rate, PRASA will be carrying ZERO passengers by 2015 !

  • Maggie - 2011-10-14 08:51

    I am using Verreiniging line(via Langlaagte) is the horrible line frm all, which means we must expect the worse!!! now they have reduce their coaches to ten, next yr will be 5 coaches per train.

  • Charmaine McBride - 2011-10-14 10:54

    Its all because they have no access control or ticketing system. should organise more like the tube or the underground ...

  • Bernard - 2011-10-17 09:29

    PRASA was a sponsor of the 2010 World Cup. Why? Why did PRASA think sponsoring the WC is a good idea? It just does not make sense?

  • Obotseng Phokompe - 2012-02-01 06:56

    The reason is this goverment entities continues to report loose every time. Even their CEO are corrupt, they can make the finding but what goverment do suspend after that golden handshake.

  • pages:
  • 1