Passengers get on and off the Gautrain. (Photo: Gautrain / Facebook).
The Gautrain system will continue to be operated under a public-private partnership (PPP) model as it enters the next phase of its operational journey.
This follows after the Gauteng provincial government confirmed that the process to appoint a new private partner is already at an advanced stage of negotiation.
The new private partner will be responsible for operating, maintaining, renovating and modernizing the Gautrain system for the next 15 years.
The current concession agreement with the Bombela concession company (BCC) comes to an end on 27 March. The BCC currently holds a 19½-year concession for the design, construction, partial financing and operation of the system.
Kedibone Diale-Tlabela, the Gauteng MEC for roads and transport, says the focus is now on the future.
“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.”
Financial milestone and state ownership
The Gautrain was developed as a PPV under Treasury Regulation 16 of the Public Financial Management Act (PFMA). By March 27, the costs associated with the establishment of the project will be paid in full. This step is of crucial importance as it places the project after 2026 in a position to unlock increased economic and operational benefits for the province. The Gautrain is valued as a state asset at approximately R45 billion.
Enoch Godongwana, the finance minister, emphasized in his recent national budget speech that public institutions should increasingly consider PPV models as a viable alternative for service delivery. The PPV model therefore remains central to the Gautrain’s framework to ensure stability and sustainability.
Measures for uninterrupted service
Although a preferred bidder has already been identified, the Gautrain Management Agency (GMA) has activated a contractual agreement which applies from 28 March. This arrangement allows the current operator, Bombela Operating Company (BOC), to operate the system for a further six months according to the existing agreement. This ensures that passengers will not experience any interruption in service during the final phase of the negotiations.
(Photo: Gautrain/Facebook)
Accessibility for community
Through initiatives such as KlevaMova, the Gautrain ensures that public transport is more affordable. This program offers a 50% discount on train journeys to eligible low-income earners, scholars, pensioners and Sassa grant recipients.
Since its launch in May last year, thousands of passengers have already registered for KlevaMova. Students under the age of 25 also benefit from a similar 50% discount through the “Student Product” since 2022.
In addition to the train operations, the GMA supports the provincial government in rolling out smart license test centres, which are located closer to communities, especially in townships and informal settlements.