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Corporate Plan 2020-2022 1 CORPORATE PLAN 2020-2022 1 04 Legislative Mandate 05 Vision, Mission and Values 06 Legal Operating Structure 07 Organisational Structure 08 Contributing to the National Development Plan 10 National Government Imperatives 13 PRASA’s National Strategic Plan 14 Market Development & Industry Overview 19 Informing the Corporate Plan 21 The Value Proposition 23 Executive Summary 28 Key Drivers of the Corporate Plan 71 Human Resource Management 76 Employment Equity 78 Enterprise Risk Management and Plan 80 Enterprise Risk Management Framework 86 Fraud Prevention Plan 87 Financial Position 91 Materiality Framework 93 Capital Expenditure Programme: MTEF 2019/20 – 2021/22 99 Introduction to the APP 2020/2022 CORPORATE PLAN 2020-2022 3 LEGISLATIVE MANDATE PRASA, as the implementation arm of the National Department of Transport, the sole shareholder, is primarily focused on the mandate contained in the Legal Succession Act of South African Transport Services (“SATS”) Act of 1989 as amended. The main objective and main business of PRASA is to: • National Transport Policy • National Development Plan Ensure that, at the request of the Department of • National Land Transport Act Transport, rail commuter services are provided • Public Finance Management Act within, to and from the Republic in the public interest, • Green Paper on Rail and provide, in consultation with the Department of • Public Transport Strategy Transport, for a long haul passenger rail and bus • Economic Strategy and Job creation initiatives services within, to and from the Republic in terms of the principles set out in section 4 of the National Legislative & Regulatory Environment Land Transport Transition Act, 2000 (Act no 22 of 2000). • The crafting of the PRASA strategy and plan takes cognisance of the legislative The second objective and secondary business of • The National Land Transport Act (Act 5 of 2009) PRASA is that PRASA shall generate income from the as government’s transport exploitation of assets acquired by it. • Strategy and Green paper on Rail. • National Railway Safety Regulator Act A further requirement is that, in carrying out its [No 16 of 2002] objectives and business, PRASA shall have due • Labour Relations Act, Employment Equity Act and regard for key Government, social, economic and Conditions of Employment Act transport policy objectives. As a public entity, Government initiatives remain the strategy driver for PRASA. This is manifested through legislation, government policies and strategies such as: STATEMENT OF PURPOSE The launch of the Passenger Rail Agency of South of South Africa. This mandate is implemented in Africa (PRASA), in March 2009 brought forth a consultation with and under the guidance of the new era in passenger transport that saw the Minister of Transport. former South African Rail Commuter Corporation (SARCC) transformed into PRASA. Metrorail, The focus of the Corporate Plan is to ensure that, Shosholoza Meyl, Autopax (the subsidiary in the medium to long term, PRASA remains a company operating Translux and City to City bus leader in passenger transport solutions and that, services), as well as Intersite Asset Investments as a modern public entity, it continues to deliver (formerly under SARCC and Transnet) are now high quality passenger services in a safe and part of PRASA. The consolidation of entities secure environment which is underpinned by its followed a decision of the Cabinet of 1 December commitment to delivering Public Value. 2004. The consolidation of these entities was done to offer integrated passenger services that Deliver on the mandate of public transport by prioritise customer needs, provide better mobility providing safe, reliable, clean, affordable and and accessibility to transport by masses of the sustainable services resulting in customer South African population in need of safe and satisfaction of more than 80% in five years. affordable transport. Exploit PRASA’s assets that increase the As a wholly owned Government public entity, patronage of the public transport mandate by reporting to the Minister of Transport, PRASA’s bringing communities to stations and increasing main responsibility is to deliver commuter rail value from other assets to R1.071 billion by 2020. services in the Metropolitan areas of South Africa, long-distance (inter-city) rail and bus services within, to and from the borders of the Republic 4 CORPORATE PLAN 2020-2022 VISION, MISSION AND VALUES Vision To be the backbone of public transport. Mission To provide safe, reliable, affordable and clean passenger rail and bus services. Values Service Excellence Fairness and Teamwork Integrity Provide the kind of Treating our customers Working together services that meet and our colleagues the with our customers to and exceed customer same as we would like achieve a common goal expectation. to be treated. and recognizing each other’s strengths and contribution. Safety Communication Performance Driven Ensuring our customers Sharing information Developing the ability to and colleagues enjoy with our stakeholders in venture into new areas of their journey and arrive an open and honest way. opportunity whilst offering safely and refreshed. quality products to our customers. CORPORATE PLAN 2020-2022 5 LEGAL OPERATING STRUCTURE Divisions Subsidiaries RAIL DIVISION Mainline passenger service 6 CORPORATE PLAN 2020-2022 ORGANISATIONAL STRUCTURE PRASA Board of Control Group Company Audit Secretary Group GROUP Group Group Group Group Strategic Group Legal ENTERPRISE Group Human Capital Strategy ICT PROCUREMENT Asset Compliance WIDE RISK Finance Management Development/sip7 MANAGEMENT AUTOPAX PRASA Intersite CEO PRASA Rail PRASA CEO Operations Technical and CRES engineering Intersite BOARD AUTOPAX BOARD CORPORATE PLAN 2020-2022 7 CONTRIBUTING TO THE NATIONAL DEVELOPMENT PLAN According to the National Development Plan, The NDP notes that currently outdated, malfunction- mobility is one of the key dimensions of human prone railway technology and poor inter-modal capacity. Transportation cuts across the economy, linkages dominate these corridors. PRASA is aware environmental sustainability, spatial transformation, of the need for reliable, economical and smooth- global connectivity, state capability, social cohesion flowing corridors linking various modes of transport and health. To function optimally, South Africa needs (road, rail, air, sea ports and pipelines). In realising reliable, economical, and smooth-flowing corridors the objectives outlined in the NDP, PRASA plays a linking its various modes of transport (road, rail, air, crucial role in providing a suitable public transport sea ports and pipelines). solution that is safe, efficient, reliable and cost- effective. The National Development Plan calls for Integrated, holistic, long-term perspective on all transport The development and deployment of the total networks informed by growth priorities, the transport network, which will help improve transport environment, inclusivity and access. efficiency and accessibility while reducing the overall environmental, social and economic costs is key to Where people live and work matters. Apartheid attainment of the NDP imperatives. spatial planning has led to the majority of South Africans living far from places of work, with PRASA has noted the NDP strategic focus areas poor access to basic services and low levels of and planning priorities which focuses on creation participation in the economy. The need for people of workable urban transit solutions that will to live closer to their places of work and with better streamline an effective urban transport system, quality public transport allows them to access work particularly – as it pertains to PRASA, through: opportunities and in the most affordable manner. • Increasing investment in public transport The National Development Plan assumes that by and resolving existing public-transport policy 2030, investment in the transport sector will: issues • Providing incentives for public transport use a. Bridge geographic distances affordably, foster • Renewing the commuter train fleet reliability and safety so that all South Africans • Property Development can access previously inaccessible economic • Broadband Connectivity opportunities, social spaces and services. b. Support economic development by allowing the transport of goods from points of production to where they are concerned. This will also facilitate regional and international trade. c. Promote low-carbon economy by offering transport alternatives that minimize environmental harm. 8 CORPORATE PLAN 2020-2022 PRASA also takes into account the multi-dimensional aspect of the NDP regarding, employment, housing, environment and skill development and training. HOUSING EDUCATION PRASA’s approach to integrated transport planning Skills development and training for PRASA taking into account future human settlements employees as well as future employees are close and transport corridors and cities’ urban planning to the heart of the rail business. PRASA through and densification strategy. PRASA’s current various initiatives support development of learners and future network expansions are informed towards engineering fields for rail, development by the organisation’s National Strategic Plan and training of rail specific artisans and other that supports investments in safe, reliable and transport related skills. In addition the organisation affordable public transport supported by spatial supports transport, engineering, public service development frameworks
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