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Comparing two projects - Research Paper Example

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The Gautrain Rapid Rail Link presently being completed in the province of Gauteng in South Africa and the A380 project of the European aircraft manufacturing company Airbus exemplify the best technology in modern transportation system. The Gautrain project was primarily…
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Comparing two projects

Download file to see previous pages... rojects preceded from necessity but while the Gautrain project is a Public Private Partnership (PPP) between the province of Gauteng and the Bombela Consortium, the A380 is a flagship project of a company whose majority shares are owned by European governments under a “Contractual Partnership.”
As a PPP, the Gautrain project was initiated by the Gauteng province, which provided the land and the accompanying pertinent legislations. On the other hand, concessionaire Bombela, the winning private concessionaire, took care of the rest - subcontracting various aspects of the works from the civil works, electrical and mechanical works, operations and maintenance to its various partners. The risks are therefore shifted from Gauteng to Bombela. Airbus, on the other hand, divided the work on the A380 among its several partners whose plants are located across the European continent in accordance with the latter’s specialisation; their finished products eventually transported to Airbus’ main headquarters in Toulouse, France for assembly work. The cost of production of the Gautrain was primarily shouldered by the private concessionaire while the A380 was shouldered alone by the airplane manufacturer partly from money loaned to it by the respective government partners under a “launch loan.”
Of the nine provinces constituting South Africa (SA hereafter), Gauteng is the smallest with its area comprising a mere 1.4% of the entire area of the country. As can be seen from Fig. 1, Gauteng (in yellow) is located in the northeastern portion and is landlocked by four other SA provinces. Despite its area and inaccessibility to export and import terminals, Gauteng is the economic center of South Africa 1 and is home to most of SA’s corporate headquarters and financial sector located in the province. 2 It comprises three very important urban areas: Pretoria, the capital of South Africa where the national political government is located; Johannesburg, the capital of the ...Download file to see next pagesRead More
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