South Africa - Technical report on the Transport Project

/v uo 4v' 4 Rt t L~~~~~L1 1.3 CIRCULAT3Ni t0f?, RESTRICTED TO BE RETURNED TO REPORM K I This report is restricted to use within the Bank. I INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TECHNICAL REPORT on the TrAJ.WDPrT DPAnTWrT of the UNION OF SOUTH AFRICA December 20, 1950 Loan Department  rMAfl 1, T.' r n r-,T,,,r Page 'lio. Sumnmary i - iii The Borrower and the Project 1 Scooe and Organization of South African Railways and Harbours Administration 1 .lanagement of Railway Administration 2 Labor 3 Capital Investment 3 Additions to Capital Account 3 Sources of Capital h Rates Equalization Fund 4 Operating R.esults Li Operating and Financial Problems 6 Railway Rates 6 Traffic and Earnings 8 Steps Taken to Increase Earnings 9 1946 Overseas Mlission 10 Pro-,ram of Capital and Betterment '-orks 11 Committee of Investigation into Capital ^'Trorks 12 Import Requirements for the Railwfay Administration's Program 13 Discussion of Need for Imports 14 (a) Rol:Ling Stock 14 (b) IMechanical Ilborkshops 16 (c) Additional Track Capacity 16 (d) Road i.Iotor Eouipment 16 (e) Other Railwvay 7'orks 17 (f) Aircraft 17 Engineering Staff 17 Conclusion 18 Annex - List of Goods 1 - 2 Liann - Snuth African Railvdavs and Harhours. 1950 List of Tables Table 1 - Surolus or Deficit Table 2 - Traffic and Earnings 8 Table 3 - Eynencditnures and OneratAng Ra+tios 9 Table 14 - 1950/51 Estimated Revenue and Expenditures 10 Table 5 - Estimated Exnenclitures - Canital and Betterment 7Torks 11 Tabhl 6 A ('n +.Catelori Pq nf Trnnnr+.ts nnrd Currencyr Rpeirerr- ments 14 Table 7 - nl Ing Stock Position as at 31st+ IvT-n"ni 1950 15 Table 8 - Rolling Stock Acquired Domestically and From Overneeas 1 Table 9 - Enozine Repairs 16  SUIAAIRY TPA ?.1'OS OR PROJ RCT UNION OF SOUTH AF31ICA The Union of South Africa has requested the Bank to provide $30,000,000 I/ or the equivalent in other currencies to finarnce a part of the foreign exchange requilrements of the South African Railways andl Harbours Administration 2, in i951 and 19$2. About UU.A 3 million is des ird in U. S. dollars and the equivalent of j21.7 million in sterling for purchases principally in the U. K. vith perhaps smali amounts for purchasies on Ihe continent. lhe proceeds of -the loan, if granted, would be used lor -Ile aceuisitlon from abroad of additional rolling stock, worksiho) -:chinczy, road motor eouip!-ent, snare parts for aircraft, rniscellaneou.D n..;rucl,lon ana maintenance equipment and structural materials. When the Union of Southl Hfrica was leg-ally eitaWi!.ei in 13)(9, thle ov,nership and rianagement of all the railvways and. harbors belon-wLns to the various colonies viere vested in the cerntral -overnr,nent. bInce tL!en the Railway !-dmninistration has been autilorized by lavs to opec