, South Africa Has To Make A Ppp Model To Gear The Cross Sector’s Collaboration In The Rail Transit Transportation System

621 words - 2 pages

South Africa has to make a PPP model to gear the cross-sector's collaboration in the Rail Transit Transportation System: Urban Metro Network and Inter-city High-speed train

Introduction

From the National Planning Commission diagnosis overview of April 2010 "Successful countries generally invest at high rates and are continually modernizing public infrastructure to suit their economic, settlement and trade patterns. But South Africa has effectively missed a generation of infrastructure modernization. Public investment in both new and existing infrastructure falls far short of what is needed to meet the country's economic and social requirements. "(Manuel, 2010) , we can see that one of the nine challenges standing in the way of progress is the crumbling infrastructure in South Africa. It became a major challenge since South Africa has effectively missed a generation of infrastructure modernization. Public investment in both new and existing infrastructure falls far short of what is needed to meet the country's economic and social requirements.

According to Fourie (2008), "in most sectors the condition of the infrastructure seems to be rapidly deteriorating, mainly due to a lack of regular maintenance, skills shortages and overuse. " Despite South Africa having improved a great deal on infrastructure in 2010 for the World Cup, since then only little progressive development has been taken place. In the area of the Rail Transit Transportation System, South Africa has, since the last century, built a well-developed railway system as well as the road systems covering the whole country and connected to neighbouring countries. However, in big cities like Johannesburg and Durban, the road system has been heavily loaded and the condition of the poor inter- and inner-city railway system still stays as years before, not meeting the highly interactive business developing on both the national or multinational level.

As a mid-developed country in Africa as well as the leading economy in southern Africa, South Africa should build a comprehensive rail system in order to meet the multinational business transactions and improve domestic economy growth. The Rail Transit System is a particular business venture involving the cross-sector's participation. Since most inter- or inner-city Rail Transit Systems, including the construction and operation, are quite an important part of the infrastructure and the impact of infrastructure on GDP growth turns out to be...

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