Fin24.com – Finweek
Johannesburg – In two weeks’ time, the Passenger Rail Agency of SA (Prasa) will set the ball rolling for the transfer of R37bn into the hands of black South Africans.
Prasa chief executive Lucky Montana, the architect of South Africa’s modernisation of passenger rail transportation, has left no stone unturned to ensure that South Africa’s largest black economic empowerment (BEE) deal is also the most broad-based.
“Historically, you would find that individuals who have access to money fly to Germany or China to strike a deal. We have avoided this by making it broad-based. What we have done with this deal is to recognise workers,” Montana told City Press.
Prasa will acquire 7 224 new train coaches from a foreign rolling stock manufacturer at a cost of R123bn over 20 years.
The first phase of the project will see the passenger rail parastatal buy half of these coaches at a cost of R40bn over 10 years.
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