Gautrain expansion: ‘Positive signals’ from government

The Gautrain Management Agency (GMA) is getting “very positive signals” from both National Treasury and the Department of Transport that the planned expansion to the rapid rail link will be part of the government’s multi-billion rand infrastructure plan “going forward”.

This was confirmed by GMA CEO William Dachs this week, who added: “So hold thumbs and hopefully we will have some announcements in that regard in the next few weeks.”

The GMA has already submitted its feasibility study and workings on the Gautrain network expansion to Treasury and the Department of Transport.

Treasury has to authorise the project in terms of Public Finance Management Act.

Infrastructure development

President Cyril Ramaphosa confirmed in his State of the Nation Address in February this year the government is moving at speed to try and secure funding for infrastructure development in the country.

Speaking at the inaugural Sustainable Infrastructure Development Symposium of South Africa (Sidssa) in June, Ramaphosa stressed that the severe damage caused by the Covid-19 pandemic, and the damage it continues to cause, has not diminished the government’s determination to drive an ambitious and sustainable infrastructure development programme.

“To the contrary, the coronavirus pandemic has made infrastructure investment even more compelling, even more important and even more urgent.

“That is why we have placed infrastructure at the centre of the stimulus our economy needs to achieve a sustainable recovery,” he said.

Funding

Dr Kgosientsho Ramokgopa, head of investment and infrastructure in the Office of The Presidency, told the symposium that finance institutions have made firm commitments running into “tens of billions of rand” for a host of planned infrastructure projects in South Africa.

Dachs admitted the planned Gautrain expansion “sounds like pipe dreams” now because the country is fighting Covid-19.

But Dachs stressed “we can’t take our eye off the ball” of what Gauteng will look like in 10, 15 or 20 years’ time.

“Good public transport is absolutely key in realising that future. To the extent that we can be a part of a post Covid-19 recovery, that will be fantastic,” he said.

Dachs in May this year told Moneyweb that construction of the planned expansion of the Gautrain rapid rail network, dubbed Gautrain 2, could realistically commence at the end of 2024.

Read: Gautrain 2 can only realistically start at the end of 2024

The current Gautrain network comprises 80km of rail along two route links: a link between Tshwane and Johannesburg and a link between OR Tambo International Airport and Sandton.

Gautrain 2 comprises another 150km of rail and a further 19 stations.

It will be built in phases and includes a new line from Marlboro through Sandton and Randburg to Cosmo City and then to Little Falls, which will later be extended through Roodepoort to Jabulani in northern Soweto, with Lanseria the ultimate destination for a rail service running east-west between OR Tambo International Airport and Lanseria Airport.

Moneyweb reported earlier this week that the GMA and Bombela Concession Company (BBC), which are in a public-private partnership, will both take multi-million rand hits because of low commuter patronage on the Gautrain caused by the Covid-19 lockdown.

Read: Gautrain partners take multi-million rand hit from drop in demand

JSE-listed Murray & Roberts (M&R) has a 50% stake in the BCC, which holds the 15-year concession for operating and maintaining the Gautrain.

Dachs said the province “paid R92 million more than budgeted” for the patronage guarantee in the first quarter of the 2020/21 financial year and “Bombela lost approximately R171 million in revenue”.

M&R CEO Henry Laas told Moneyweb in February this year the Bombela concession period runs until 2026, but “obviously we would like to extend the concession”.

Population increase

Explaining the rationale for wanting to expand the Gautrain network, Dachs said it has looked 20 years into the future and noted that the population of Gauteng will increase dramatically from about 16 million currently, to 25 million by the end of 2027.

Dachs stressed that the economy will recover from the impact of Covid-19 and people will have jobs and homes.

He said the GMA is trying to ensure it has planned ahead for this increase in population and so that the public transport system as a whole, not just the Gautrain, is able to move up to five million people every morning in the peak period and get them home again in the afternoon.

“It’s a massive challenge and one of the things which we struggle with is that rail in Gauteng actually has a very small footprint.

“The vast majority of people travel between Soweto and Johannesburg – not between Soweto and Sandton where there are an enormous amount of jobs,” he said.

Dachs said it is looking at linking Sandton and Soweto in phase one of the expansion so it can move people a lot faster and easier than currently.

He said they will definitely learn lessons from Covid-19 and stop looking at rail as a “mode of force” where people use it because there is no other alternative to it.

Dachs said they want people to use rail because they are offered a smart service.

“We are planning and fitting in a concept that mobility is a service, that people will be able to use their smartphones and smart technology to plan their trip.

“We will also be able to give them real-time information on at which times trains are empty and which carriages have the fewest people.”

Paperless ticketing on its way

Dachs said it definitely also has to move away from paper ticketing.

“I can’t think of anything worse than asking people for cash and then giving them a paper ticket in exchange … [which is] perfect for transmission of viruses.

“We will be moving to a technology that is ticketless. People will be able to use the same app that they used to plan the trip to pay for the trip, but not only for one mode of transport.

“They could use that same technology on a bus, taxi, Gautrain and Metro Rail. It’s really changing the paradigm of public transport,” he said.

Apart from the planned expansion of the Gautrain network, the GMA is also planning to invest R2 billion to ease capacity constraints on the existing network.

This includes the acquisition of second hand rolling stock from the United Kingdom.

Dachs confirmed in May this year the GMA anticipated the procurement of rolling stock will be completed in October 2020 but warned Covid-19 may impact on this target date.