As the dust settles on our national elections, a number of things have become abundantly clear with respect to the South African electorate. The first and most obvious is that our democracy has matured admirably – we no longer vote en masse for the romantic notions of the past and the ruling elite will be held accountable if they fail to deliver.
The ANC have learnt this in no uncertain terms this week and it bodes well for the future, but only if they now choose partners to take the country forward rather than aligning with destructive forces intent on destroying our Constitution for personal gain. South Africans no longer trust any single party to govern alone, which potentially opens the door to a far more accountable government of national unity (GNU). This coalition needs to be aligned to the best interests of the country (rather than personal interests) and needs to set aside any political and ideological differences to work together productively.
South Africa desperately needs a coalition that upholds the rule of law without fear or favour, that has zero tolerance for any form of corruption, and that supports investment and business-friendly policies.
Which segues nicely into another revelation this past week – the short-term memories and unfortunate ignorance amongst voters with respect to the level of destruction caused by corrupt politicians. We have spent the past few years bemoaning the ‘lost 9 years’ under Jacob Zuma – a period during which our SOE’s were looted to the point of collapse, misinformation and fake narratives around ‘white monopoly capital’ were perpetuated, and investors fled under threats of expropriation without compensation. Any reasonable person of sound intelligence would be astounded to know that nearly 15% of voters – more than 2.3 million people – still believe that Jacob Zuma could take our country forward.
South Africa now stands at a critical inflection point – one path lined with parties promoting populist policies that will inevitably deepen our economic crisis, and an alternative that includes parties willing to protect and promote our Constitution and advocate for market friendly policies.
Organised business at a national level – through organisations such as BUSA and BLSA – have made it clear that the working relationship with government, and subsequent gains achieved during the past few years, will come to an abrupt end if the populist route is followed. South Africa urgently requires both local and foreign direct investment in order to foster economic growth. A populist anti-business government threatening to destroy our Constitution and expropriate land is not going to attract any form of investment any time soon and will drag us back decades.
Organised business at a national level – through organisations such as BUSA and BLSA – have made it clear that the working relationship with government, and subsequent gains achieved during the past few years, will come to an abrupt end if the populist route is followed.
In the Western Cape, organised business has been represented by Accelerate Cape Town (ACT) since 2006. All the companies represented by this organisation have a national (or international) footprint and are very much aligned to the national growth agenda. However, the reality is that most of these businesses are cautious when pursuing meaningful initiatives in this region – because historical experience has shown that national government will seek to punish companies who are perceived to be favouring the region run by the opposition.
Ryan Ravens, CEO Accelerate Cape Town
This has defined to a large extent how organised business operates in the Western Cape. We don’t make a song and dance of every initiative, there are no pledges to be signed to generate PR, there are no committees or countless workstreams, and we don’t try and dictate who the political partners should be – instead, we’ve been quietly getting on with it. Quietly working together to create jobs and opportunity, quietly working together to improve the lives of the people who live here. Loudly criticising when we feel policies or behaviours are not conducive to creating a thriving business environment.
This is how it’s been in the Western Cape for nearly two decades. Organised business in this region is strictly apolitical but works very closely with the Western Cape government and have developed robust, deeply honest relationships.
We have co-created economic development policies such as the Growth for Jobs strategy, we share learnings and insights around job creation initiatives, we interrogate local and regional government’s infrastructure investment plans, and our feedback is valued and appreciated. Our official engagements in the province are devoid of the pomp and ceremony so common amongst the former ruling elite. The Premier and members of the provincial cabinet have never cancelled or even been late for a single engagement. Not once.
This spirit of meaningful collaboration – even if we don’t always agree with each other on every issue – has undeniably been working in this region. The Western Cape now has the lowest unemployment rate in the country – 21.4% compared to the national unemployment rate of 32.9%; over the past five years, 4 out of every 5 new jobs in SA were created in the Western Cape; we are less prone to load-shedding through initiatives like the Alternative Energy Support Programme; and even our property prices have enjoyed continuous growth as more South Africans seek to relocate.
Whilst we are greatly encouraged by the renewed mandate for the DA in the Western Cape and look forward to continuing the great work we’ve been doing, the hope now is that this same spirit of humility, collaboration, and commitment to the economic growth agenda will be what defines our new national government. The alternative is simply too terrifying to contemplate.
About Accelerate Cape Town
Accelerate Cape Town (ACT) is a business leadership organisation representing top-tier corporate business in the Cape Town city region. Established in 2006, ACT provides a forum for corporate business to connect and catalyse action to position Cape Town for growing economic success.
Rail transportation is one of the most energy-efficient transport modes and will remain the backbone of mobility in a sustainable world. The average passenger cars in South Africa emit 148gCO2e/km, which is 18.9 times more than riding a train.
The X’trapolis Mega Train being produced at Gibela for Passenger Rail Agency South Africa (PRASA) is made from 30% lighter steel than trains made of carbon steel. The stainless steel translates to less energy consumption which results in lower greenhouse gas emissions. In addition, 99% of the train components are recoverable and 96% of them are recyclable, thus decreasing the likelihood of end-of-life impact.
Alstom, a global leader in sustainable and green mobility solutions, has released a report in collaboration with Ernst & Young (EY) capturing the company’s socio-economic contributions from April 2021 to March 2022. It highlights the support of over 9 000 jobs and R3.9-billion injected into South Africa as Alstom continues to grow its local presence.
“We have been in South Africa for at least 10 years now and our commitment to South Africa goes beyond the manufacturing of trains or railway components. We are a reliable local growth partner and are actively participating in the development of an inclusive and sustainable rail industry through localisation, job creation and skills development. This report creates a baseline understanding of the impact of our work to date and acts as a tool to measure our progress moving forward,” said Bernard Peille, Managing Director, Alstom Southern Africa.
Alstom’s strategy in South Africa is illustrated by significant investments in the country, which include Alstom Ubunye, Gibela Rail Consortium and most recently with Bombela Maintenance and Alstom Rolling Stock South Africa.
“Alstom’s commitment to eco-design is centred on minimising the environmental footprint of its solutions throughout the lifecycle. This approach is already applied to more than 50% of Alstom products globally with a target of having 100% of all new products by 2025,” says Peille.
Supporting local industry
“When we started our journey 10 years ago, the rail industry in South Africa was dormant and a significant effort was put into building Gibela’s supply chain which now consists of over 90 South African suppliers and 65% of the train’s content is supplied locally. Gibela also has over 1 000 talented employees and has delivered more than 100 locally made trains to PRASA,” said Andrew DeLeone, President of Alstom in Africa, Middle East and Central Asia. Alstom’s actions also extend to freight; it is contracted to supply electric Traxx locomotives to Transnet, locomotives which will contribute to reducing heavy vehicle traffic on South Africa’s roads.
“In 2022, we expanded our manufacturing capabilities and can now produce locomotive car body shells in South Africa. Growing these unique locomotive skills locally is in line with our long-term growth strategy to introduce much-needed state-of-the-art freight solutions to the rest of the Southern Africa market. Reduced heavy vehicle/truck traffic on our roads also leads to less carbon emissions and improved safety,” added Peille.
Enhancing the local economy
According to the report, Alstom South Africa purchased R3.6-billion of goods and services over the reporting period, 79% of which are from South African suppliers. The company’s dedication to local economic development has resulted in increased partnerships and support for local business enterprises. Alstom collaborates with over 500 suppliers in South Africa, who provide components for Alstom trains and services to projects across the country. Fully 99% of Alstom’s new employees have been local hires in South Africa, of which 90% are black Africans and 45% fall into the youth category.
The company is committed to gender diversity and inclusion. Women compete equally for all roles and as a result 35% of the workforce is now female and this number will grow in the coming years through deliberate efforts. Alstom is committed to developing greener, smarter and safer mobility for its customers but more importantly, to build local capability.
World-class skills training
In terms of skills and rail expertise development, Alstom invested in multiple skills transfer programmes and sent South African employees to various Alstom sites around the world including France, the United Kingdom, Sweden, Australia and India, among others. Alstom’s South African employees regularly undergo technical and behavioural skills training to ensure they operate at the same level as any Alstom employee at any site globally.
In addition, Alstom also supports educational initiatives in South Africa focusing on science, technology, engineering and mathematics (STEM) subjects in high school and up to university level. Through its joint ventures, partnerships with universities are in place to advance railway-specific skills development, expand scientific and research capacity and attract and retain excellent researchers, students and scientists.
Alstom’s outlook for South Africa
By 2025, Alstom will grow its employee base by 10%, increase female representation up to 40% in the management, engineers and professionals category; optimise manufacturing to produce 62 X’trapolis Mega Trains per annum and intensify operational capacity to produce up to 50 locomotives per annum.
On track
Alstom has supported over 9 000 jobs in South Africa, according to EY
R3.9-billion GDP contribution to South Africa’s economy
99% local hires, 35% women
65% X’trapolis train content supplied locally
91% less gCO2/passenger.km by train compared to cars
About Alstom
Leading societies to a low-carbon future, Alstom develops and markets mobility solutions that provide sustainable foundations for the future of transportation. From high-speed trains, metros, monorails and trams to turnkey systems, services, infrastructure, signalling and digital mobility, Alstom offers its diverse customers the broadest portfolio in the industry.
Over 150 000 vehicles in commercial service worldwide attest to the company’s proven expertise in project management, innovation, design and technology. In 2021, the company was included in the Dow Jones Sustainability Indices, World and Europe, for the 11th consecutive time. Headquartered in France and present in 70 countries, Alstom employs more than 74 000 people. The Group posted revenues of €15.5-billion for the fiscal year ending on 31 March 2022.
This year, we are excited to present a thought-provoking event focused on the theme of Strengthening Infrastructure and Manufacturing Supply Chains for Future Growth.
In today’s rapidly evolving landscape, the significance of robust supply chains cannot be overstated. As we navigate through various challenges and opportunities brought on by recent events within KZN, it is imperative to enhance our infrastructure and manufacturing capabilities to ensure sustainable growth and resilience.
Join us as we gather industry leaders, experts, and stakeholders to explore innovative strategies, best practices, and emerging technologies that will shape the future of supply chain management in KwaZulu-Natal and beyond. Together, we will delve into insightful discussions, share experiences, and forge collaborations to drive positive change and propel our supply chains towards greater efficiency, agility, and competitiveness.
The Takealot Township Economies Conference & Expo is a one-stop destination for Township entrepreneurs! The event will explore support services to the informal market sector, focusing on the challenges these entrepreneurs face.
Through our event, we hope to shed light on these critical issues and help inform strategies for improving and expanding support services for those working in the informal market sector. By understanding the challenges of entrepreneurs and providing them with the tools they need to overcome these obstacles, we can enable them to flourish and grow their businesses, thereby strengthening our economy as a whole.
DEVAC Hydrogen-H Indaba, taking place at NH Sandton (F.K.A Hilton Sandton) in Johannesburg, South Africa, from 18-19 September 2024, is the leading platform for hydrogen project developments and investment opportunities where industry experts from government institutions, key private sector companies and international investors are brought together to engage on solutions to unlock Africa’s outstanding green hydrogen potential.
This exclusive event constantly promotes great collaboration between governments, the private sector, and key stakeholders from the African hydrogen value chain to ensure the continent can lead in the development of green hydrogen for energy transition.
The Armaments Corporation of South Africa SOC Limited (Armscor) is an acquisition agency for the South African Department of Defence (DOD) and other organs of state and entities. Armscor’s mandate is to provide the armed forces with state-of-the-art defence matériel, delivering innovative defence solutions efficiently and effectively.
The organisation manages the strategic capabilities of the DOD, producing research and vanguard technological solutions required to provide safety and security for South Africa, its citizens and the continent.
Armscor’s core businesses
Acquisition
One of Armscor’s core businesses is acquisition. Its key functions include requirements analysis, technology development, design and development of products and product systems and the industrialisation and manufacturing of mature products and product systems that fully meet user requirements. It also entails procurement of existing and qualified products, as well as the acquisition of product-system support for user systems during the operational lifetime of the systems.
Credit: Armscor
Research and development
Armscor, through its Research and Development, is able to conduct defence research and scientific research, test and evaluation services, technology management, analysis and industrialisation and intellectual property management services. The organisation has the capability to perform independent, centralised coordination and fulfil a management role for technology acquisition and technology commercialisation.
Naval dockyard
The dockyard provides repair and maintenance services to the SA Navy on various product systems from tugs to small craft, frigates and submarines. Maintenance and repair services cover both planned and ad-hoc projects. It is one of South Africa’s strategic national capabilities, where the country’s naval defence maintenance, repair and overall capabilities are housed.
Large numbers of South Africans use public taps as a source of water.
South Africa’s taps are at risk of running dry as its water-supply infrastructure comes under mounting pressure. As millions go without reliable in-home water connections and water supply infrastructure buckles under the pressure of population growth, urbanisation and industrialisation, the 2023 World Water Day theme of “accelerating change” was especially relevant for South Africans and the Gap Infrastructure Corporation (GIC).
The lack of access to clean water in many rural areas is becoming increasingly critical as water scarcity grows, leading to overcrowding at communal water taps and increased reliance on dirty or contaminated groundwater sources.
According to the last General Household Survey by Statistics South Africa, an alarming 12.2% of households used a public tap as a source of water; 1.9% used a neighbour’s tap; 1.8% used flowing, stream or river water; 1.7% made use of a water-tanker; 1.6% used a water vendor; and 1.5% used a rain-water tank, among other alternative sources.
Adding to the country’s water scarcity woes is below-average rainfall. South Africa’s annual precipitation is almost half that of the global average at just 497mm per year. “Given the high demands on South Africa’s water resources, it is crucial that we prioritise the development of sustainable and easily accessible water infrastructure such as boreholes or rainwater harvesting systems, and invest in upgrading existing water supply systems,” says Roelof van den Berg, CEO of GIC.
Water infrastructure is under pressure.
Community education on water conservation and efficient water use is also vital. Through teaching households water-wise habits, community education can help reduce the burden on shared water sources and ensure that more people have access to safe and clean water in their homes.
“World Water Day called for increased efforts to promote water conservation, efficient water use and sustainable water management practices. It also emphasises the importance of innovative solutions and technologies to ensure that water resources are used more sustainably.
“Finally, the topic of ‘accelerating change’ was particularly relevant for GIC as a trusted construction partner in the drive to roll out reliable water infrastructure for the benefit of all South Africans.”
In the ongoing quest to improve infrastructure development nationally, public-private partnerships have emerged as an invaluable tool. These successfully bring together the expertise and resources of both private construction companies and government to deliver enhanced services.
The four big benefits that companies can bring to the process are diverse:
Enhanced infrastructure roll-outs
Public-private partnerships are an effective way of increasing capacity, ensuring that more projects are undertaken simultaneously at a high-quality standard. By utilising these partnerships in the development of water infrastructure, South Africans can enjoy the benefits of new water-treatment plants and upgraded water-supply systems, while stimulating job creation, small business growth and increased investment in new technology and innovations for world-class water and sanitation systems.
Expert planning and design
Through proper planning and design, infrastructure development companies help to ensure that projects are initiated and managed in environmentally sustainable and cost-effective ways. Drawing on deep infrastructure development expertise and experience, companies such as GIC further work to ensure that projects meet the needs of specific communities. This includes developing comprehensive water and sanitation plans, identifying appropriate technologies and conducting feasibility studies and environmental impact assessments.
Professional project management for maximum returns
The private sector can supply government with the required expertise as well as the qualified and experienced staff needed to ensure the success of large-scale projects. Infrastructure development companies can manage construction contractors and sub-contractors, liaise with numerous suppliers and control operations to ensure that projects are completed on time and within budget.
Private companies can assist in launching and managing important learning and awareness programmes with communities, sharing responsibility with public entities for education and upliftment. For example, companies involved in water infrastructure development may roll out programmes teaching community members about water conservation and efficient water use and provide technical training and upskilling to local workers in the construction, operation and maintenance of water and sanitation infrastructure.
Many of our country’s water issues, current and future, can be resolved in large part by upgrading the country’s ailing water system and constructing new infrastructure in previously under-served areas. Public-private partnerships are the most suitable, sustainable and beneficial way to ensure that quality infrastructure is developed sooner rather than later.
We are excited to announce that the Biennial WISA 2024 Conference will be hosted again in the city of Durban from 12 – 14 June 2024 at the Durban ICC.
To maintain the momentum of the 2022 conference, this event will continue with the nautical theme and aims to engage professionals and thought leaders to collaborate on providing valuable insight and innovative solutions that will guide the progress towards achieving the Sustainable Development Goals (SDGs). We require accelerated change to reach the 2030 targets by “Turning the tide”.
Water is key to the economy including maintaining public health, jobs as well as poverty eradication (inequality). It forms the basis of many industries and the social well-being of all people.
The 2024 Conference will bring together academics, professionals and industry leaders in the water, sanitation, health, hygiene, mining, agriculture and manufacturing as well as the public sector in terms of policy makers, law makers and servicing authorities to collaborate on driving solutions for the broader challenges within the sector and build resilience against climate change through innovation and technology.
The new CEO of the Gautrain Management Agency believes that failures to deliver must have consequences. As he sets out to create “railtroplises” around Gautrain stations, Tshepo Kgobe is convinced that the public-partnership model where a “knowledgeable public party” ensures that high standards are maintained is the best model for mass public transit.
What is your mandate?
The mandate of the Gautrain as it stands now in the GMA Act is for us to implement the project, then manage the project and its assets and to ensure that we secure the finances of the entity itself. We need to ensure that we create financial sustainability over the long term and create jobs. Socio-economic development is a big part of what we do. To integrate with other transport modes the process allows the MEC to require us to assist on any projects that are public transport and rail related.
Somebody might ask, ”Why are you building a taxi rank?” and I will tell them it is a mandate from the MEC, it’s public-transport related. We are assisting PRASA in some of their operations and in resuscitating their operations here in Gauteng and in other parts of South Africa, and that comes from that mandate. When we get asked to assist other entities, we do exactly that.
To whom do you report?
The MEC is the shareholder. We need to demystify this thing: the Gautrain as an entity and its assets are actually owned by the Gauteng Provincial Government. They are owned by GPG and they own those assets through the Department of Roads and Transport. The Gautrain Management Agency is the custodian of the assets on behalf of the Gauteng Provincial Government and the Department of Roads and Transport.
So there are no private shareholders?
No, none of the assets are privately owned. It is operated by a private entity, an operation where we contracted somebody privately to operate it but the assets are fully owned and paid off. Gautrain is a R45-billion asset that is owned by the Gauteng Provincial Government.
Sandton Station
Please tell us more about what you are doing related to integrated transport.
The most interesting one is a partnership we have with the taxi industry. The taxi industry is contracted to provide last-mile services. Our distribution and feeder services in stations like Marlboro station in Alexandra and the surrounding areas are provided by them. In Centurion and other stations, they are provided by the Tshwane taxi industry. We contract the one part of the transport industry that nobody wants to touch, and it’s one of our most successful partnerships.
We have integrated with the minibus taxi associations to provide scheduled services for the Gautrain. People always ask us whether taxi drivers do not fight with us over our taking their routes. They don’t, because we contract the taxi association that owns the route to operate on that route.
We’ve been running this for 13 years and it runs like clockwork because we do our due diligence. We check through the registration system in the Department, we check with the cities, we get concurrence from both the provincial departments and authorities in various cities that that particular route is owned by this particular taxi industry. The lines are very clear.
How are passenger numbers post-Covid, are you recovering?
We’re recovering but it took a while. With the work-from-home culture, it took a while for the numbers to recover. In the last week of February, we breached 60% and went onto 64% of our previous numbers. But the freeway is full. A lot of companies have instructed their employees to return to work on a full-time basis. We are seeing the effects of it but we want it to translate fully back to about 50 000 passenger trips per day and then we will be satisfied. Not happy, but satisfied.
What does that represent in percentage terms?
That will be about 94% of pre-Covid numbers and then at 55 000 to 57 000 we will be back to 100% of pre-Covid numbers.
Do you know the total numbers?
A total of 175-million passengers have been carried on the Gautrain since its inception.
What is the percentage of the airport traffic of your general traffic?
Pre-Covid, the airport service carried about 10% of our ridership and the General Passenger Service carried 90% of our services all throughout the day. We have three services running over the line: the Airport Passenger Service runs from the airport directly into Sandton. Then the service that runs on the same line from Rhodesfield into Sandton and finally the North/South GPS service from Hatfield in Pretoria all the way to Park in the Johannesburg CBD.
Passengers can transfer from one service to the other in whatever direction they’re travelling.
How far advanced are the plans to expand the network?
The Premier in his recent State of the Province address announced that all three planned new routes will be expanded to all corners of the province. We have a short-term plan, which is the Soweto line that takes off from Sandton and then goes out to Randburg and on to Cosmo Junction, through Little Falls, through the Roodepoort ridge into Roodepoort and all the way to Jabulani. That becomes the Phase 1 line.
Are the finances in place?
Part of the process is for us to be able to look at the structuring of the finances and the important part is that we will have to relook at the finances. We want to ensure that the government’s contribution to the building of the extension is reduced as compared to last time. We’re looking at the division of revenue at allocation coming down to being at most 30% to 33% and then we would have private investors being 33% and then land value and station optioning and property development making up the other 33%.
We are intentionally developing properties or transit-related developments in and around our stations. You have the aerotropolis which is a city around an airport; we are setting out to develop a “railtropolis”.
Gautrain Marlboro Station
Property prices have gone up around Gautrain stations, not so?
Yes definitely. In the last economic impact study, we showed that for properties within a 5 km radius, property prices grew at market plus 5% greater than any other sector. Even in the 10 km radius, property prices still grew decently above the market growth.
Are you buying new rolling stock?
We are acquiring more rolling stock but we are acquiring it not as a standalone project but we are doing it as part of the re-concessioning of the system itself.
Please unpack the concessioning system.
A concession agreement allows the private operator to operate the assets on our behalf and for that we pay them some part and then they get part of that money from their revenue earnings. The question we have had to ask now that the Gautrain has been built is, are we going to operate the systems ourselves?
We have the assets and we have had success in having the separation of duties. You have an asset owner who gives an asset out for operations and levies penalties on the person if they do not operate the system properly. Then you have an operator who earns a fee for operating the system itself. We thought this is the best method possible of being able to get the best practice out of operating railway lines. On most days we operate at 100% availability and 100% punctuality, which is unheard of in South African terms.
The concession has a fixed term?
It has a 15-year term. The old concession had the construction and the development period included, so it was a 19-and-a-half-year term with four-and-a-half years for the development part. We are going into another 15-year concession at the end of March 2024. We have put the bid out into the market.
You were involved in the engineering details of the foundation of the Gautrain. What were the biggest challenges that you and your teams faced back then?
There were multiple challenges that we faced. In today’s context of looking at the extensions we are planning, it seems that sentiment towards public transport hasn’t changed in 20 years. When you say you are going to build a railway line, everybody says, “No, not in my backyard.” And then there are those who have experienced the Gautrain and you are getting a sentiment that says, “Why is it not coming into my backyard?” We are caught between the NIMBYS and the WIMBYS, as they now call the people who are asking, “Why not in my backyard?” As CEO, how do I work with this to satisfy everybody?
The biggest challenge originally was the line location. Where my office is right now is not where the Midrand line was supposed to run. It was supposed to be on the western side of the freeway because that’s where the residential areas are but because there was such great fear of what kind of a system we were going to bring, that was the biggest challenge.
It is the mental shift of being able to get people to understand that we are bringing a world-class system. A lot of businesses would now rather have their back wall being the Gautrain because they know that secures their businesses.
Anyone who has travelled on the Gautrain can’t but be impressed. What are the key pillars to the Gautrain’s success?
The fundamentals of a good transport system is that it must be functional. The availability of the system, the punctuality of the system, the punctuality of supporting systems such as the buses and the minibuses, the escalators and all of that, that basic product has to be functional before you add fancy technologies. The basic product – which is a train ride – must be safe and it must be reliable. A lot of things fall into what we call hygienic factors.
When they are in the background rather than them being the issues we argue about, then you then can superimpose technology on it. A good ticketing system will enhance the customer experience because the customer has the ability to be able to manage their own access. They can reload their card on an app or on a website or even travel with their bank card. We recently upgraded the technology so that you don’t need to buy a ticket, you can just show up with your debit card or with your credit card and ride on the system. That ease of access is the next level.
Gautrain is known for the professionalism of operations and staff who seem to care about what they are doing. How do you get that right?
Under concessioning I raised the issue of the separation of duties. First and foremost, it is a fallacy that the private sector would do this on their own. You have the kind of system that we have now because there is a knowledgeable public party (an agency such as ours) that ensures that these things happen.
You need an agency that without fear or favour will lay penalties on anybody who does not live up to the contract. Then you need a contract that is enforceable. Our contract is enforceable and the penalties are big if the services do not operate. We don’t want a contract that is penalty prone but it must be service prone, it is pro-service more than anything else.
As I tell the team here, I am not in the business of penalties, I am in the business of providing services. The penalties have to incentivise service.
So there are consequences?
There are big consequences and expensive consequences.
How do you maintain that kind of excellence within your organisation?
I was told by an old mentor of mine, “Hire good people.” The rest of it takes care of itself. We hire the best.
For our general interviews the minimum is a two-hour interview. We only bring the best to come and work with us. We source from both public and private but we only take the best in the market and that has always been my mantra. I will always hire for skill and capability and the rest of the things like employment equity come after the skill; the skill has to be there first and then we can talk about the other transformational issues.
What are your short- and medium-term goals as CEO?
The short-term goal is for us to be able to move the business with great speed to becoming self-sustaining. The operations of the entity have to completely come off the fiscus. We have to make our own money, so commercialisation is a big part of what we have to move with. We’ve already started with drivers’ licence and testing centres where you can get your new licence, you can register your car and you can get all sorts of other government services. That is turning out to be big business. I am meeting with Treasury to confirm additional funding for us to roll out these centres all around the province.
We are an agency that is gearing itself to be of great use not only to transport people, but to the greater public. We are also looking at developing a lot of properties around our stations and bringing on additional services. We will be self-sustaining and from then onwards we will start clawing back the amount of subsidy that is paid by government to subsidise the commuter.
I want to ensure that any money we get from the state goes directly into subsidising the commuter and maintaining the asset, not working to sustain the agency.
And the expansion projects of the new lines form part of your plans?
We have already started the process. I have had a meeting with the project steering committee and it is all at full speed. We also are looking at putting the new contract in place, another key issue. We also have to close out the current concession.
The amazing thing is that in and around South Africa there isn’t anybody who has closed out a concession similar to ours. We are the first, so we are creating new knowledge and as we continue with that, we have to make sure that we manage the knowledge and we have it recorded so that it can be shared with other people when they do this later on.
You have worked overseas and you’ve worked in the private sector. How have those experiences informed your approach to being CEO?
When I left the private sector, I explained to people who questioned my decision that my idea is to build public companies that are similar to private companies out there. If I can do that, then I would have served my country well. That becomes important: how do you meld in the capability that comes from the private sector with the rigour of spending public money? We have done that well enough at GMA so that we had 11 clean audits and I have been involved in nine of those.
CEO of the Gautrain Management Agency, Tshepo Kgobe.
Biography – Tshepo Kgobe, CEO of the Gautrain Management Agency
Tshepo Kgobe is an engineer with more than two decades of experience in managing complex projects and operations with diverse technical requirements in infrastructure, energy and mining. A graduate of UKZN and Henley Business School (BSc, Civil Engineering, and diplomas and certificates in business management), Kgobe has also worked on strategy related to BBBEE, transformation and corporate social investment and marketing.
His experience in the private sector includes serving as an Executive Director on the board of Hatch Africa and a period in the UK with Corus Rail Consultancy. He also worked at Metrorail. Tshepo was responsible for the engineering and project management of the trackwork subsystem in the Gautrain Rapid Rail Link project.
He then held the position of Senior Executive responsible for all technical and project services in GMA and was until recently the Chief Operating Officer of the Gautrain Management Agency, responsible for the everyday running of the agency. He assumed the role of CEO in February 2024.
A groundbreaking ablution block initiative by The Greater Tygerberg Partnership (GTP) has emerged as a beacon of progress for thousands of users in the Bellville community since its inception in November 2022.
Situated strategically on the corner of Kruskal Avenue in the bustling heart of the Bellville CBD, this safe and convenient facility has improved access to hygienic amenities – sanitation being one of our highest needs for all. This facility services informal traders and their customers, marking a significant milestone in community development.
Thanks to the facility, both male and females now have access to clean, accessible ablution facilities for a nominal fee of R2.00 per use. Open daily during general trading hours, the block features disabled access and baby-changing facilities, catering to the diverse needs of its users.
Monique Muller, Project Manager at GTP, expresses her enthusiasm for the project, stating, “The success of the ablution block initiative underscores its potential to transform urban communities across South Africa. To date the project has provided over 56 000 users access to clean ablutions.”
“Its modular and scalable nature presents opportunities for replication in areas where informal traders lack access to hygienic facilities, ultimately enriching the lives of countless individuals and fostering economic growth. It also offers an ongoing opportunity for funders to make a substantial difference to micro-entrepreneurs in other cities across South Africa,” Muller adds.
Monique Muller, Project Manager at GTP and Alderman James Vos, Mayoral Committee Member for Economic Growth at City of Cape Town.
Raising the lid
Since its inception, the ablution block has served a staggering 56 358 users, affirming its indispensable role in addressing a critical need within the community.
The success of this initiative stems from a collaborative effort, uniting design students, designers, city officials, and key partners such as GrowthPoint, MES, Boudry Architects, Galojo Projects, Container World, Durbanville Engineer, Viking Deco, and KSL Engineers. Another shining example of the power and change that exists in community collaborations.
“We are also proud to share positive stories from the team cleaning and managing this facility daily. One of the employees managed to become financially independent and rehabilitated herself to gain approval for a permanent rented homestead of her very own,” Muller affirms.
As the GTP looks towards the future, continued support and collaboration from partners, stakeholders, and funders will be vital for extending this transformative model to more locations across the Western Cape and beyond. With sustained investment and dedication, the ablution block initiative stands poised to make an enduring impact on communities far and wide.
For more information or to read more about GTP projects in Bellville, visit www.gtp.org.za
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