Trade & Industry

Gautrain cancels new trains and expansion plans

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. The GMA now says

Gautrain cancels new trains and expansion plans

Gautrain cancels new trains and expansion plans

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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.

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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.

The GMA now says it will take up to three years for demand to fully recover. That could push out trouble with too many riders towards 2026, when the current concession is due to end, and new investment is expected.

The lack of demand has also seen a change in the expected dates for Gautrain 2, a huge expansion of the service. By mid 2020 there was still hope that construction on Gautrain 2 could start before the end of 2024, but that has been dashed.

The first phase of the expansion had been due to see the network expand from Marlboro to Little Falls in Roodepoort. A second phase had been due to see it expand to Soweto, with a final reach into Boksburg, Lanseria, Irene, and Mamelodi. 

Gautrain expansion

How the project would be funded was never settled. 

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Proposals included a 30% contribution to the capital cost from the government – and another third to be collected from consumers around South Africa via levies such as airport taxes or vehicle licence fees.

With the government already scrambling to find new and additional sources of revenue to fund spending on combatting the coronavirus, that suggestion did not go down particularly well.

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Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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