Revamping stations creates opportunities
Thursday, 29 July 2010 |  Jane Steinacker  |  1 comment

Image by Kennethyeung815

The R25-billion investment that the Passenger Rail Agency of SA dedicated to improving its transport is turning into retail and commercial opportunities.

These opportunities may not only cater to the needs of train commuters as some of the money will also be used to uplift some old buildings. About R2.6-billion was allocated for major station and infrastructure upgrades.

This includes the R70-million Doornfontein, Johannesburg, station upgrade, as well as several new sites for the World Cup.

But now that the tournament is over, the focus will shift to Johannesburg Park Station, Daveyton, on the East Rand, Hatfield, Durban and Pretoria stations.

An advertisement asking for request for proposals by Intersite Property Management Services, a wholly owned subsidiary of Prasa that manages its property portfolio, has asked business to submit ideas for more than 30000m² of retail and commercial space at prime stations.

The potential sites include:

PARK STATION

* 482m² (currently being used as a restaurant)
* 482m² (office space)
* 1000m² (office space)
* 350m² (retail banking)
* 230m² (retail banking)
* 1795m² at the Rotunda building (offices)
* 560m² (office space)
* 600m² in the basement (for filming and commercials)
* 4000m² in the Lab building (office space)

DAVEYTON STATION

* 500m² new building with retail potential
* 550m² (restaurant)

PRETORIA STATION

* 1019m² (office space)
* 720m² (restaurant)
* 14000m² in the Africon building (office space)

DURBAN STATION

* 3000m² (office space)
* 1200m² (office space)
* 370m² (office space)

Most of the property that is up for grabs is old office space that can be converted into retail centres with restaurants, food courts, or even apartments or parkades.

Intersite has also said it would entertain creative ideas for the various sites.

Metrorail is responsible for more than 600million passenger trips a year, while Shosholoza Meyl undertakes 4million long-distance and regional journeys.

But, will the re-vamp of these sites be able to flourish, while the rest of the economy is still crawling out of the recession, even if the passenger count may be the most appealing factor? Published reports quoting various economists all seem to say the same thing. We're on our way up - but we're not quite there yet.

"We think the economy has definitely come out of recession, but at the moment, it looks like the recovery has lost some momentum," said Salomi Odendaal, from Citadel.

"We still think the economy will continue growing, but consumer spending is still fragile, so we do not think it will be a robust recovery," said the economist.

The retail sector is reported to have shed 40000 jobs in the first quarter of the year, despite trade sales rising by 4.6% in May, compared with May last year.

Statistics SA also reported that the highest sales rates were recorded for retailers in household, furniture, appliances and equipment, followed by pharmaceutical and medical goods, cosmetics and toiletries and, thirdly by textiles, clothing, footwear and leather goods. This data may indicate that the retail stores focusing on appliances, cosmetics and clothing could prosper - if this trend continues.

All of this echoes comments from BoE Private Clients, portfolio manager Deryck Janse van Rensberg.

"At this stage, you are seeing a retail sector that's obviously looked forward, and they really are hitting some short-term highs as we stand."

If this project is successful, this will contribute to Intersite's goal of providing 120000 jobs in downstream industries affected by the economic impact of the passenger rail industry.

Source: Times Live

Picture Source: Flickr