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Annual Report for the Period of 1 April 2009 to 31 March 2010

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Annual Report for the Period of 1 April 2009 to 31 March 2010 A SECTION A - NON-REGULATORY INFORMATION 2 Rhodesfield Station, Gauteng. A SECTION A - NON-REGULATORY INFORMATION 3 Dr S Ndebele Honourable Minister of Transport National Treasury Parliament Dear Honourable Minister SUBJECT: FINANCIAL YEAR ENDED 31 MARCH 2010 We have a pleasure in submitting, for your information and presentation to Parliament, the Passenger Rail Agency of South Africa Annual Report for the period of 1 April 2009 to 31 March 2010. The report has been prepared in accordance with South African Generally Accepted Accounting Practice (SA GAAP), the Public Finance Management Act, 1999 (Act No 1 of 1999) and other relevant Treasury regulations. Yours sincerely Sfiso Buthelezi Tshepo Lucky Montana Chairman Group Chief Executive Officer 4 Nasrec Station, Gauteng. A SECTION A - NON-REGULATORY INFORMATION PASSENGER RAIL AGENCY OF SOUTH AFRICA ANNUAL REPORT 2009/10 5 CONTENTS SECTION A - NON-REGULATORY INFORMATION 03 Letter to the Minister of Transport 06 Introduction 08 Mandate of PRASA: 10 - Mission - Vision - Values 12 - Strategic Role 14 Legal Operating Structure 16 Chairman’s Statement 20 Group Chief Executive Officer’s Overview 28 PRASA’s Review against Objectives SECTION B - ANNUAL FINANCIAL STATEMENTS 40 Board of Control Responsibility Statement 42 Audit Committee’s Responsibility 43 Report of the Independent Auditors 46 Directors’ Report 57 Consolidated Statements of Financial Position 58 Consolidated Statements of Comprehensive Income 59 Consolidated Statements of Changes in Equity 60 Consolidated Statements of Cash Flows 61 Notes to the Consolidated Financial Statements 92 FIFA Expenditure Report 95 Administration A SECTION A - NON-REGULATORY INFORMATION 06 INTRODUCTION BEING FOCUSED The transformation of the These organisations are In fact, PRASA transports more South African Rail Commuter Metrorail which services than 645 million passengers per Corporation (SARCC) into the commuter rail, Shosholoza Meyl, annum across Metrorail (95%), new Passenger Rail Agency of including the Premier Classe Shosholoza Meyl (2,5%) and South Africa began in December luxury train travel offering, Autopax (2,5%) via 468 stations 2004 when Cabinet approved which services long distance in cities and throughout the the consolidation of passenger rail, Autopax which hosts the country. rail entities, in a bid to provide long distance bus transport better mobility and accessibility services offered by Translux to transport, in the pursuit of a and City-to-City and Intersite better life for all. Property Management which is PRASA is the umbrella the organisation responsible for organisation for a variety of the development of station and organisations that service the property infrastructure. South African public in terms of commuter rail, inter-city rail and luxury rail services, as well as long distance bus public transport services. Nasrec Station, Gauteng A SECTION A - NON-REGULATORY INFORMATION PASSENGER RAIL AGENCY OF SOUTH AFRICA ANNUAL REPORT 2009/10 07 07 PRASA exists to ensure that South Africans are moved - from city to city, from suburb to suburb, from home to work and back again. In the years to come post the 2010 FIFA World Cup™, PRASA will continue to invest billions in infrastructure improvements, all designed to ensure PRASA does what it’s determined to do: Move South Africa. And that is exactly what PRASA has been doing. A SECTION A - NON-REGULATORY INFORMATION 08 MANDATE OF PRASA: OBJECTIVE PRASA’s primary objective is: • To ensure that, at the request • To provide, in consultation with of the Department of Transport, the Department of Transport, rail commuter services are long haul passenger rail and provided within, to and from the bus services within, to and from Republic of South Africa in the the Republic in terms of the interest of the public; and principles set out in section 4 of the National Land Transport Transition Act, 2000 (Act No 22 of 2000). The new Moses Mabhida Station and entrance to the Moses Mabhida Stadium, KwaZulu-Natal A SECTION A - NON-REGULATORY INFORMATION 09 R70 000 000 A SECTION A - NON-REGULATORY INFORMATION 10 MANDATE OF PRASA: MANDATE OF PRASA: MANDATE OF PRASA: MISSION VISION VALUES TO BE AN INNOVATIVE, TO BE MOVED. FROM TO BE ACCOUNTABLE, EMPOWERED AND CITY TO CITY. FROM FAIR, OPEN AND MODERN, INTER- SUBURB TO SUBURB. VALUED MODAL TRANSPORT WITH WORLD-CLASS SOLUTION PROVIDER. SERVICE. PRASA’s mission is to provide The vision of PRASA is to The values that have guided sustainable transport solutions provide enhanced mobility as PRASA and which will continue through service excellence, the gateway to accessible to underpin the performance innovation and modal socio-economic opportunities ethos of the organisation are integration. and a shared future. Two derived from and rest on the This mission reflects four key fundamental principles fundamental and progressive intentions: underpin the vision: human values of the Constitution of the Republic of Service excellence Accessibility South Africa. They are: Superior performance that is PRASA should facilitate access safe, reliable and affordable; or be a gateway to a better • Fairness and Integrity that makes a lasting impression, quality of life through enabling • Service Excellence and builds brand loyalty - both individuals and communities • Performance Driven internally (employees) and to access socio-economic • Safety externally (customers) - that opportunities. • Communication adds benefit to the passenger. • Teamwork • Mobility Sustainability PRASA should connect A focus on sustainable individuals and communities development in business that through an integrated network considers not just the financial of mobility routes. ‘bottom line’ of prosperity and profit, but also environmental quality and social equity. • Mobility solutions Reframing the basis of business delivery, favouring innovation, integration and partnerships. Integration Safe, seamless and dignified travel experiences across all modes of public transport. A SECTION A - NON-REGULATORY INFORMATION PASSENGER RAIL AGENCY OF SOUTH AFRICA ANNUAL REPORT 2009/10 11 11 Some of the 570 new buses acquired for Translux and City to City. R1,4 billion A SECTION A - NON-REGULATORY INFORMATION 12 MANDATE OF PRASA: STRATEGIC ROLE Created by Government to advance its agenda for the transformation of the public transport system into a vibrant, efficient one, PRASA’s strategic role may be defined as follows: PRASA introduces a unique offering into the public transport environment with its vision to provide integrated transport solutions due to its control of commuter rail, inter-city, long distance rail and road-based long distance services, supported by transit-orientated station and terminal developments. Modal integration lies at the heart of the Department of Transport’s public transport strategy. PRASA is positioned to build on the synergies that Metrorail, Shosholoza Meyl and Autopax bring to the delivery of public transport services. It also retains the option of reinforcing these with feeder distribution services, where appropriate and beneficial, for wider integrated public transport solutions that increase mobility and accessibility to all the people of South Africa. No other existing providers of public transport services have this potential. Secondly, PRASA is the first and only Government-owned vehicle in the area of public transport. Government will continue to subsidise and/or regulate public transport operators, while many municipal entities have had their roles reduced. With the restructuring of the former South Africa Transport Services, Government lacked leverage to directly influence public transport service provision and relied on other providers to drive its own public transport goals. With the creation of PRASA, Government is in a far better position to drive the new public transport strategy. PRASA is expected to play a major role in the development of social and economic infrastructure. The organisation will partner with transport and rail authorities to plan and deliver on rail and other transport infrastructure. PRASA’s primary responsibility is to effectively develop and manage rail and related transport infrastructure and to provide efficient rail and road-based passenger transport services. This is supported by the focused management of a property portfolio that is being developed to enhance passengers’ travelling experience. This is being achieved through the transformation of key station properties into transit-orientated development precincts that can generate sustainable income streams. Right: Progress on the new Nasrec station, Soccer City, Gauteng A SECTION A - NON-REGULATORY INFORMATION 13 R263 000 000 A SECTION A - NON-REGULATORY INFORMATION 14 Rhodesfield Station, Gauteng. This station is one of three stations that intersect with the Gautrain rapid rail system R105 000 000 A SECTION A - NON-REGULATORY INFORMATION 15 LEGAL OPERATING STRUCTURE 15 MINISTER OF TRANSPORT BOARD OF CONTROL DIVISION SUBSIDIARY SUBSIDIARY A SECTION A - NON-REGULATORY INFORMATION 16 CHAIRMAN’S STATEMENT “It was an enormous honour to transport Presidents, Prime Ministers, Ministers and other dignitaries and provide them with great service, all without a hitch.” A SECTION A - NON-REGULATORY INFORMATION 17 South Africa has just concluded the successful hosting of the 2010 FIFA World Cup™ tournament, the first in Africa. Sceptics about the country’s ability to host the event have been forced to admit that, indeed, South Africa has outdone itself in the way in which it delivered
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