This revelation comes just days before curtains are set fall on the passenger train service.
The service will be terminated on April Fools’ Day, Ministry of Works and Transport deputy permanent secretary Lewis Malikongwa announced at a press briefing held at the corpration’s Gaborone offices on Friday.
Malikongwa was accompanied by BR management chiefs when he narrated how over the years passengers’ lives have been in danger because the trains have not been serviced for the last 15 years for lack funds. Malikongwa says according to the planned maintenance programme, the coaches were to be overhauled at 500, 000km or every five years.
"The overhaul is ideally meant to address issues of wear and tear and safety critical components to ensure that the coaches are in good running order. By so doing the operators will be guaranteed availability, reliability and safety of the fleet. Unfortunately BR passenger coaches have not been overhauled over the past 15 years." He announced that due to lack of overhaul BR passenger service runs the risk of having accidents and poses problems in terms of predictability in the short-term sustainability of the service.
Malikongwa further says the BR passenger service accounts for less than 10 percent of the company’s operating revenues and has consistently made losses of P30 million in a year, which has continuously been offset and subsidized by the freight business.
The deputy PS added that the issue of sustainability of the rail passenger services has been extensively discussed across the globe and policies have been established that generally suggest that rail passenger service cannot operate commercially without government subsidy. " The notion is that they are run on behalf of government for social rather than commercial reasons".
Malikongwa cited neighbouring South Africa, where Transnet Freight Rail, formerly Spoornet, has handed over the operations of passenger service to the local authorities to run it and subsidize it, adding that the move has proved to be viable.
However, the deputy PS said with the development challenges that the country is faced with, it might not be prudent for Botswana to follow suit at this stage. " Further more in light of the current economic conditions government’s focus on more critical development initiatives is essential," Malikongwa added.
Asked to clarify whether this is a temporary suspension, Malikongwa confirmed the termination of the service, although he did not rule out the possibility of revisiting the "passenger train service issue" at an opportune time in future.
Speaking in a separate interview, Botswana Railway Workers Union (BRWU) vice chairman Simon Matenje told the Monitor that he was surprised at the announcement because the union was still in the dark. "We have an agreement with Botswana Railways management that neither of us can talk to the media without the other party knowing. Now I am surprised that you are telling me this train service is being stopped. I think it would be silly to take that route. The train is used by the low-income class. Passengers pay only P66 to and from Francistown by train, while the bus fare is over P160. People, especially the low income earners, won’t be able to travel and visit their beloved ones," he said.
Matenje suggested that instead of terminating the train service, BR should have adjusted their pricing. He said in 2006 the day passenger train was suspended because the company said they were overhauling the coaches and buying a new locomotive. " Now while we are still waiting for the day train to be returned, now this."
The passenger coaches will be sold to raise funds as part of a strategy to recapitalise the parastatal company, which made a P78 million loss last year. The company requires a recapitalisation of close to P600 million. The Minister of Works and Transport Jonnie Swartz told Parliament last Thursday that halting the passenger train service "is a necessary evil that must be tolerated" for the success of the company.
Swartz said they will have to terminate the train service to reduce BR’s operating losses, which had ballooned to P78 million from P10 million the previous year. He said the passenger services account for less than 10% of BR’s operating revenues, and have been consistently making losses.
The minister said in 2005-2006, BR’s cost of passenger services was P38.8 million, while revenues were only P9.1 million resulting in a net loss of P29.7 million. Swartz said a total investment of P586.5 million will be required to overcome BR’s shortage of locomotives and rolling stock to meet current demand. He said this will be financed by converting P104 million outstanding loans from government into equity, disposing of locomotive and rolling stock assets that are no longer useful, use of BR reserves and guaranteed borrowing, on the basis of a debt-equity ratio of 0.6:1.
Mmegi Online
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