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Gautrain gobbles government money

In a short space of time the Gautrain has changed Gauteng's public transport landscape. But, despite rising passenger numbers, the project still relies heavily on government subsidies - getting R800m this year alone.
Gautrain gobbles government money

The latest Gautrain performance report showed the passenger tally rose 60% year on year to 48,000 last month.

Gautrain chief executive Jack van der Merwe said this growth was exceeding even his wildest expectations. "Passenger figures are now close to 50,000 people a day. That means, with an average of 1.1 people per car in SA, we are seeing almost 50,000 fewer cars on the roads every day.

"The fact that petrol prices have risen steadily for the past two years has influenced people's behaviour to some extent. I am sure so will the toll roads when they are implemented," he said.

But DA transport spokesman Ian Ollis said not enough was being done to push up passenger numbers and accommodate higher levels of traffic during peak hours.

"Bad planning is costing taxpayers millions every year," he said.

"The government had to subsidise any shortfall between revenue derived from passengers and what operating company Bombela was asking to keep everything running, in line with a "patronage" guarantee signed in 2006," he said.

Currently, the Gautrain could generate revenue of about R55-million a month, but needs to pay the operating company about R80-million a month.

Subsidies from government

"This year government will be subsidising the train with more than R800m from the Gauteng budget. This means that money is also being taken away from other transport projects," said Ollis.

It is estimated that the Gautrain could break even if it doubles its passenger numbers to about 100,000 a day.

Usually a project of this magnitude takes about three years to reach the necessary passenger numbers. Van der Merwe said that, technically, the full service (including Park station) has been running for less than a year.

But Ollis disagreed, saying that the first trains started operating in June 2010, which means that should be reaching a consistent level.

"If they believe that increase in passengers has just started, it means that these exorbitant subsidies will drag on for another four years, or even longer," claimed Ollis

Ollis said the Gautrain management and operating company needed to look at ways to bolster passenger numbers, such as providing more trains during peak hours, extending operating times and providing discounts during off-peak times.

"They should have introduced more trains during peak hours six months ago, when they reached capacity," said Ollis.

Van der Merwe said extensions were constantly being considered and would be implemented if viable. Immediate plans were to add parking, extend the hours of the line that links to OR Tambo International Airport and consider two more stations, at Samrand and Modderfontein.

"If all goes well, we could do away with passenger guarantees within the next three years or so. In five to 10 years the project could turn profitable, which is impressive for a public transport system of this nature," he said.

Van der Merwe, who has been working on the project for 16 years, said he would be happy to work on another project such as the Gautrain if given the opportunity.

"It really is pure magic," he said.

Source: Business Times via I-Net Bridge

Source: I-Net Bridge

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