Business / Business News

Warren Mabona
2 minute read
27 Jan 2016
5:00 am

Gautrain goes the extra mile

Warren Mabona

Expansion expected to sustain 9 000 jobs in Gauteng.

File picture: Gautrain. Picture: Neil McCartney.

The Gauteng government will boost the capacity of the Gautrain system by purchasing 12 electrical trains at a cost of R3.5 billion to cope with increasing public demand for the service.

It has engaged the Development Bank of Southern Africa (DBSA) as a mandated lead arranger to provide loan capital for the new rolling stock procurement, roads and transport MEC Ismail Vadi said in Sandton on Tuesday. Vadi said the bank has approved, in principle, the loan that would be channelled into the Gautrain Management Agency (GMA) to pay for the new rolling stock.

“The capital expenditure of approximately R3.5 billion for additional rolling stock and supporting infrastructure is expected to sustain 9 000 jobs in Gauteng,” said Vadi. “The total government revenue is expected to increase by an estimated R450 million [as a result of the rolling stock and supporting infrastructure].

“The total income expected to be received by households is R1 billion. Of this amount, R158 million will benefit lower-income households. “This increase in the usage of Gautrain shows that commuters are making a conscious shift from private cars to public transport, which is in line with the vision set out in our 25-year integrated transport master plan.”

Bombela Concession Company has invited suppliers to qualify as short-listed bidders by submitting a compliant document for qualification, added Vadi. He said this was for the design, manufacturing, supply and the maintenance of 48 coaches as well as the design and construction of additional depot infrastructure for the Gautrain system.

The maintenance project would be for a minimum of 15 years, although bidders would be able to offer alternative proposals for up to a 35-year contract. GMA CEO Jack van der Merwe said the government would expand the Gautrain system to other places, including Mamelodi, east of Pretoria, in the near future.

INFO:

  • The Gautrain system has transported more than 50 million rail passengers, currently 1.4 million passengers per month.
  • An estimated R46 billion has been added to the provincial economy due to property development induced by Gautrain. This has created 245 000 jobs.
  • Gautrain offers a service to 60 000 passengers daily.
  • Gautrain passenger numbers have increased by 26% year-on-year.