Prasa losing millions in revenue

File: The embattled rail agency says while it is experiencing a cash-flow crunch, it's not bankrupt.

File: The embattled rail agency says while it is experiencing a cash-flow crunch, it's not bankrupt.

CAPE TOWN - It's been almost three months since train operations were suspended in some parts of the Cape Flats.

Prasa is losing almost half of its revenue, Cape Town's Central Line remains closed, and the rail agency's been crippled by vandalism and theft.

Meanwhile, the new administrator has described Metrorail as a broken business.

Prasa says cable theft and vandalism will cost billions of rands to fix and Prasa regional manager, Richard Walker says the way the transport company's funding model is structured will create significant challenges for the organisation.

New Prasa administrator Bongisizwe Mpondo has an uphill battle ahead.

Mpondo explained the way forward, "the plan that we have over the 12 months period of my appointment is to focus on three executions periods… Seeking to bring stability to Prasa and from June we accelerate our programs and focus on executions. And in December we will focus on commissioning business."

Currently Prasa says it's running at quarter of its demand. 

Walker said, "we require 88 trains' sets to operate schedule as it is, but I must reiterate that is already a challenge. We are currently running at 33 train sets. "

Over the past three years, more than 140 train carriages, which make up 40 trains, have been torched in separate incidents in the Western Cape. To date, not a single person has been prosecuted.

Source
eNCA