Branch line concessions20 Dec 2011 15:44
.1 Branch Line Concession Agreement – key principles
3.1.1
Transnet will retain ownership of the Branch Lines assets and grant to the Concessionaire a right of use for a long-term period. The term will be determined by Transnet and will depend upon the business case for the concession in question.
3.1.2
Each Concessionaire will be required to make the necessary capital investments in the Branch Lines and maintain such assets to an agreed operating standard throughout the concession period. Concessionaires will be required to provide railway services, comprising freight transportation or passenger transportation services, or a combination thereof, on specified Branch Lines for an agreed period.
3.1.3
Each Concessionaire will be expected to assume at its own cost the risk relating to the design, condition of the Branch Line assets and infrastructure, functioning and operation of the Branch Lines (including the risk of integration with the Core Network)
3.1.4
Each Concessionaire will be expected to provide rail services to a range of customers on a common user basis and may not convert the concession to an exclusive use arrangement.
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3.1.5
Transnet will not require concession fees to be paid by Concessionaires for the right to operate a Branch Line or Branch Line Cluster.