Another blow for crisis-ridden Prasa - The Mail & Guardian

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Prasa has a new concern to deal with: being prosecuted for contravening the country’s competition law.

Themaintains that a Prasa division called Prasa Corporate Real Estate Solutions and a Prasa subsidiary called Autopax Passenger Services have conducted themselves in an anti-competitive manner.

But Prasa also owns Autopax Passenger Services, which operates in the interprovincial bus services market under the brands City to City and Translux. The report says Autopax is a serial loss-making company with staff who have no “relevant technical expertise” and a management team that “lacks relevant experience in the bus industry”.

The inquiry’s report says interprovincial bus operators have expressed concerns over the fees Prasa Cres charges at terminal facilities, especially at Park Station. “The interprovincial bus services market is competitive and the continuous protection or bailout of Autopax seems unjustifiable,” says the report. “This concern is exacerbated by the fact that Autopax is inefficient and has been underperforming for years.”Autopax made losses of R28.5-million, R212.5-million, R304.6-million and R442-million during the four financial years from 2015 to 2019.

 

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