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Publish Date : 30-Jan-2016

The Roads and Transport Minister of Gauteng Province Ismail Vadi on Wednesday has announced that they have secured an in-principle approval for a loan worth US$350-million from the Development Bank of Southern Africa (DBSA) for the procurement of new Gautrain coaches.

Speaking at a press meet in Johannesburg, the Minister has revealed details on the business model for the new rolling stock of Gautrain. He has explained that it will be essential to procure overall 48 new rail coaches to facilitate the development of the Gautrain system over the next 10-year period to ensure capacity expansion for the Gautrain.

According to him, the Gautrain system capacity upgrading project forms a part of the future strategy of the Gautrain Management Agency (GMA) and the Bombela Concession Company (BCC).

Vadi has further said that the loan will be repaid to the South Africa-based donor agency on the basis of a self-funding method, comprising revenue to be earned from the improved passenger accommodation capacity.

The Minister has added that the Gauteng Provincial Government will also utilize revenue from the service, which is generated from the existing funding sources involving the current concession pact with BCC.

The contemporary passenger train service has been successful to gain significant popularity and is well-liked by passengers for its speed and efficient performance.

The Roads and Transport Minister has disclosed that the Gautrain system currently serves 1.4 million commuters on a monthly basis, and since start, it has carried more than 50 million rail passengers.

The services of the avant-garde passenger train system were commenced during the FIFA World Cup in 2010. The system serves the route between Johannesburgs OR Tambo International Airport and the up-market area of Sandton.

Vadi revealed, Current passenger growth has been consistent in the peak periods and if the current patronage in the peak periods is not addressed, capacity will become more constrained.

The need for additional Gautrain rail cars indicates that citizens have come to value the safety, reliability and affordability of public transport and are making a shift from private to public transport.

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