Rail agency CEO rights "wrong track" claim: iLIVE

21 February 2011 - 13:18 By Lucky Montana, CEO Prasa Group
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Prasa Group CEO Lucky Montana responds to article published on iLIVE on Feb 17, 2011 10:01 PM| By Bert Armstrong headlined ‘Rail agency CEO on the wrong track: iLIVE’

Prasa Group CEO Lucky Montana responds to article published on iLIVE on Feb 17, 2011 10:01 PM| By Bert Armstrong headlined ‘Rail agency CEO on the wrong track: iLIVE’

I believe that Bert Armstrong got it wrong. There is no debate that the 5M2 and 5M2A coaches of our Metro fleet were built by Union Carriage and Wagons since the 1960s. We have always recognized this historical fact. There is also no dispute that South Africa at one stage had the capacity to design, build and maintain its own trains. It was part of a clear industrial policy but which also served the very policies of the past.

However, we must recognize that the capacity is no longer there and to pretend otherwise will not solve our problems. It is a fact that we no longer have that capacity to design and build modern trains, and design capacity has almost disappeared from UCW itself. What we are seeing today is a "bastardization" of rail technology, with most not meeting modern rail standards. This is as a result of almost 30 years of under-investment in both passenger and freight rail.

Going back to the 1960s is not an option. Rail technology has since progressed and South Africa has unfortunately not kept pace with modern rail technology developments. Lack of investment, poor and deferred maintenance, loss of critical skills and outdated maintenance practices have all contributed to the deterioration of our current rail system.

Our strategy should be to revitalize the rail engineering industry through the adoption of modern technologies which we do not have in our country. It is also our view that the new rolling stock, with the right kind of localization within a broader industrial strategy, will be the catalyst for the revitalization of the rail industry in South Africa and in the long run, the entire SADC region. Our calculations suggest that we will be able to create over the next 12 - 15 years in the order of 18 000 jobs through the New Rolling Stock Acquisition Programme.

Yes, we have identified that key elements of our old industry as mentioned by Mr. Armstrong remain and we should use current investment initiatives to harness these as part of our modernization drive. I can confirm that harnessing existing capacities and other critical elements forms part of our rolling stock replacement or acquisition strategy. A key strategic consideration is for the new coaches to be built in South Africa through a creative and innovative partnership between existing industry players and Original Equipment Manufacturers (OEMs). However, it is important to recognize that we retain capacity in such areas like coach refurbishment which will not allow South Africa to undertake a significant technology modernization. It is therefore important that our response to the challenges facing passenger rail should be strategic, more balanced and guided by scientific considerations.

I am inspired though by the commitment and passion for the rail industry shown by Mr. Armstrong. I wish to assure him that many of us who today are part of the industry are more than willing to learn from the experiences of stalwarts of our industry like him. However, this does not mean going back to the 1960s but embarking on a bold plan to modernize our rail engineering industry in South Africa.

I am keen to engage with Mr. Armstrong on the challenges facing rail and how South Africa should respond to the challenges of our time. - Lucky Montana

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