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Gautrain set for new chapter as private partner talks near conclusion

Gauteng government confirms advanced talks to appoint a new private partner to operate and modernise the Gautrain system for the next 15 years.

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Gautrain set for new chapter as private partner talks near conclusion - South African business and economy

The Gautrain rapid rail network is poised to enter a new era of operations, with the Gauteng provincial government revealing that discussions to secure a fresh private sector partner have reached an advanced stage. The system will remain under a public-private partnership (PPP) framework, with the incoming partner tasked with running, maintaining, refurbishing and upgrading the Gautrain infrastructure over the next 15 years.

The existing concession held by the Bombela concession company (BCC), which spans 19½ years and covers the design, construction, partial financing and operation of the network, is due to expire on 27 March. Gauteng MEC for roads and transport Kedibone Diale-Tlabela said the province's attention has now shifted to what lies ahead. "As we enter the post-2026 phase, our priority is to secure service continuity, strengthen private sector participation and ensure that the Gautrain continues to contribute significantly to economic growth, job creation and improved mobility for all residents of Gauteng."

Developed under Treasury Regulation 16 of the Public Financial Management Act (PFMA), the Gautrain project will have all its establishment costs fully settled by 27 March. This milestone is seen as pivotal, positioning the system to deliver greater economic and operational returns for the province beyond 2026. The network is currently valued at roughly R45 billion as a state asset. Finance minister Enoch Godongwana recently underscored in his national budget address that public bodies should increasingly explore PPP arrangements as a credible option for delivering services.

To safeguard commuters during the transition, the Gautrain Management Agency (GMA) has put contingency measures in place despite a preferred bidder already having been selected. A contractual arrangement taking effect from 28 March will allow the current operator, Bombela Operating Company (BOC), to continue running the system for an additional six months under existing terms, ensuring seamless service throughout the final negotiation period.

Meanwhile, the Gautrain continues to broaden access to affordable public transport through its KlevaMova initiative, which provides a 50% fare reduction on train trips for qualifying low-income earners, school pupils, pensioners and Sassa grant beneficiaries. Since launching in May last year, the programme has attracted thousands of registrations. Students under 25 have also enjoyed a comparable 50% discount through the "Student Product" offering since 2022. Beyond rail services, the GMA is assisting the provincial government with the rollout of smart licence testing centres situated closer to communities, particularly in townships and informal settlements.

Source: Maroela Media

Published by SA Press

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