Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines
Road/Rail Freight

Gautrain, a financial train wreck that must be stopped – AA

07 Oct 2024 - by Staff reporter
 Source: TripAdvisor
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

The Automobile Association (AA) has strongly condemned plans to expand the Gautrain service, calling it a financial train wreck that must be stopped.

“Any expansion of the current Gautrain service is wasteful expenditure on a service that doesn’t serve the needs of most of Gauteng’s citizens,” it says. “Spending billions of rands on extending the service must seriously be reconsidered and stopped before it’s too late.”

The Association says remarks by Premier Panyaza Lesufi that the province will invest R120bn in the expansion of the Gautrain over the next two years is cause for great concern.

“In 2021 we made a detailed submission on the extension of the Gauteng Rapid Rail Integrated Network – Gautrain – and urged the provincial government to reject any extensions of the service which we labelled a White Elephant. In our view, any extensions perpetuate a system that caters for a minority of citizens who don’t need it, at the expense of better public transport for the majority who need it most,” says the AA.

“The Patronage Guarantee remains one of the biggest issues facing the extensions and should be addressed properly before any further work on the service is done. The Patronage Guarantee is a mechanism whereby Bombela – the private concessionaire which operates Gautrain – is compensated for low ridership levels on their trains.”

According to the Gautrain Management Agency’s 2024 Integrated Annual Report, the Gauteng Department of Roads and Transport paid Bombela R2 790bn in the 2023-2024 financial year, and R2.371bn in the 2022-2023 financial year in the form of the Patronage Guarantee “due to the actual revenue and ridership being significantly below the minimum required total revenue projections”. Billions of rands of Gauteng taxpayers’ money has been paid to Bombela since 2012 through the Patronage Guarantee.

The AA has questioned whether figures provided now for the justification of further extensions can be trusted given that the current revenue projections already fall way short of the mark – and have done for many years – and result in huge payouts to Bombela.

“It is quite clear that Gautrain failed to deliver on its ridership projections from the outset, and now the burden of funding falls on taxpayers – the majority of whom don’t even use the system because it’s too expensive to do so. They are, in effect, subsidising a system that caters to the elite who are already mobile. The fact that Gautrain stations have some of the biggest parking lots in the province for the vehicles of those who use the system stands in stark contrast to those who have no transport solutions at all. In addition, there is a lack of reliable, sustainable, affordable, and safe public transport for the majority of the province’s citizens, many of whom must walk to their destinations because they have no alternative.

“Of equal concern is the fact that the MEC for Finance and Economic Development, Lebogang Maile, only last week warned that the province is on the brink of potential bankruptcy because of its commitments, among other things, to e-toll debt. This sentiment does not correlate with the sentiment of the premier to invest billions of rands into what is clearly a financial train wreck for the province,” notes the AA.

The Association says siphoning money from the Gauteng roads and infrastructure budget to Bombela (effectively built-in insurance for poor performance) means other transport options are not being properly funded, again disadvantaging the majority of Gauteng’s citizens who need it most.

“We stand firm in our opposition to the extension of the Gautrain network, and the continued funding of the system through the Patronage Guarantee. A serious rethink of the expansion of the system is needed, particularly since it has shown that it cannot deliver on the numbers it projects and is, therefore, more of a liability than an asset,” the AA adds.

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

South Africa’s citrus export season gets under way

Imports and Exports

Growers forecast a rise in demand despite US tariff uncertainty and ongoing EU phytosanitary barriers.

05 May 2025
0 Comments

Thriving agri-sector pushes up tractor imports

Imports and Exports

No duties apply because we can't place import duties on equipment we don't produce. – Wandile Sihlobo.

05 May 2025
0 Comments

Carriers face capacity planning nightmare

Air Freight

The de minimis change is going to disrupt the market, and we’ll see its impact this month. – Xeneta.

05 May 2025
0 Comments

Australia launches world’s largest electric ship

Sea Freight

At 130 metres in length, Hull 096 is the largest electric vessel of its kind ever built.

05 May 2025
0 Comments

Naval drones cause havoc at Black Sea port

Logistics

The strike destroyed a Russian Su-30 fighter jet mid-air in a historic first for UAVs.

05 May 2025
0 Comments

Ukrainian authorities detain Tanzania-flagged cargo ship

Sea Freight

The vessel was intercepted near the Port of Reni as it was reportedly en route to the Turkish port of Gemlik.

05 May 2025
0 Comments

Multi-purpose terminal operator for Port of Durban sought

Logistics

The brownfield development site spans 145 hectares in the Maydon Wharf precinct of the port.

05 May 2025
0 Comments

Maputo port’s $165m terminal expansion under way

Sea Freight

The container terminal will be able to accommodate post-Panamax vessels of up to 366 metres in length.

 

02 May 2025
0 Comments

Strong figures confirm Mozambique’s economic ascendancy

Africa

Last year, growth decreased to 5%, mainly because of political unrest following disputed elections.

02 May 2025
0 Comments

DP World ships vinyl from high-tech UK warehouse

International

Robots move independently across the facility after receiving worker input in a blend of automation and manual precision.

02 May 2025
0 Comments

Trump tariffs cast shadow over SA’s soybean exports

Africa

Increased competition in third markets seems a certainty as US producers seek alternative destinations.

02 May 2025
0 Comments

South African beef exports up 30% y-o-y

Africa

For this export momentum to continue, we must intensify our efforts to control animal diseases. – Wandile Sihlobo.

02 May 2025
0 Comments
  • More

FeatureClick to view

Sea Freight May 2025

Border Beat

The N4 Maputo Corridor crossing – congestion, crime and potholes
Today 11:15
Fuel-crime curbing causes tanker build-up at Moz border
08 May 2025
Border police turn the tide on illegal crossings
29 Apr 2025
More

Featured Jobs

New

Sales & Marketing Assistant

Lee Botti & Associates
Johannesburg - North
12 May

Transport Clerk (DBN)

Tiger Recruitment
Durban (New Germany)
09 May
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us