Gautrain: Purchase of more rolling stock put on hold

The Gautrain Management Agency (GMA) has placed on hold until further notice the planned investment of R2 billion in procuring additional rolling stock and a depot enhancement project.

This decision was taken because of the massive slump in passenger demand on the high-speed train caused by the Covid-19 pandemic and lockdowns.

Figures released by the GMA to Moneyweb on Wednesday show that passenger demand on the Gautrain slumped by almost 80% in January 2021 to a total of just 213 953 passenger trips – down from 1 069 235 in January 2020 and 1 062 462 in January 2019.

However, GMA CEO William Dachs confirmed that planning for the multi-billion rand extension to the Gautrain network is continuing, with the GMA currently awaiting National Treasury approval.

Dachs told Moneyweb in June 2020 that construction on the planned expansion of the Gautrain, dubbed Gautrain 2, could realistically commence at the end of 2024.

He confirmed on Wednesday that it has been further delayed.

Gautrain 2

Gautrain 2 comprises another 150km of rail and a further 19 stations, with the first phase comprising a new line from Marlboro through Sandton and Randburg to Cosmo City and then to Little Falls.

The second phase will extend the line from Little Falls 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 in a later phase.

The GMA has already submitted an application to Treasury for authorisation for the extension project in terms of Public Finance Management Act (PFMA).

Dachs said the Gautrain extension project is currently being evaluated as part of the Sustainable Infrastructure Development South Africa Symposium (Sidssa) programme, and the PFMA process is running parallel to this process.

Part of post-pandemic economic revival

The symposium was hosted by President Cyril Ramaphosa in June 2020 and led to the unveiling of the first tranche of the government’s infrastructure plan to revive the economy post Covid-19, comprising 55 strategic infrastructure projects (Sips) and 12 special projects involving a total investment of R360 billion.

Dachs said the Gautrain extension project was submitted for reconsideration to the SIDSA programme and the gazetted projects were announced in July 2020.

“Although the Gautrain extension project was not part of the gazetted projects announced in July 2020 it is currently being re-evaluated by the Presidential Infrastructure Coordinating Committee,” he said.

The planned procurement by the GMA of additional rolling stock was initiated to ease previous capacity constraints on the Gautrain.

Temporary drop in demand

The GMA said on Wednesday that road traffic volumes have also decreased significantly and the growth trajectory for people movement is likely to take some time to recover to pre-Covid levels.

“Thus, while the need for additional rolling stock remains, it is no longer as urgent as it was at the time of issuing the tender documents in 2019,” it said.

Dachs confirmed the GMA is postponing the rolling stock programme as a whole but cancelling this tender as a specific part of that programme.

“The part of the tender related to the train purchases had already closed and bids had been evaluated, he said, adding that the part of the tender related to local refurbishment had only reached prequalification stage.

Former GMA CEO Jack van der Merwe in 2019 disclosed that the GMA intended to procure pre-owned rolling stock in the UK for use on the Gautrain network.

Dachs said this was to address the medium-term need to alleviate overcrowding on trains in anticipation of ridership growth over the period from 2022 to 2026.

“Since that overcrowding has disappeared [Gautrain ridership figures are between 20% and 30% depending on the lockdown level compared with pre-Covid levels], and in the absence of any certainty on the return to pre-Covid demand levels, the timing of the original need to be addressed has changed,” he said.