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Gauteng taxpayers spend R100m a month to keep Gautrain running – report
The service is reportedly running at a loss, with the people of South Africa allowing it to keep going.
File image.
A “patronage guarantee” ensures that, every month, the difference between what the Gautrain makes from passengers and what it spends to keep running is paid by Gauteng taxpayers, according to a report on IOL.
And, as the number of people who use the train decreases, the amount taxpayers fork out each month has reportedly increased, with the guaranteed amount almost doubling since 2013.
This amount was R821 million in 2013 and rose to sit at almost R1.6 billion during the 2017/2018 financial year.
According to the IOL report, factors that led to the decline in passengers include violence outside stations relating to tensions between meter taxi drivers and drivers for apps such as Uber and Taxify, as well as the congestion that used to plague the train at peak hours.
The train did enjoy several years of growth beyond the expectations of many, but this has now apparently slowed.
READ MORE: Gautrain expansion roll-out will take some time to implement
It looks like, whether or not it makes a profit, the train will see expansion in the coming years.
It was reported in October last year by BusinessTech that proposed expansion to the Gautrain Rapid Rail Link Network will see new stations being built in Randburg, Roodepoort, Little Falls, Soweto, and at the Lanseria Airport over the next twenty years.
According to data regarding road use in Gauteng, it’s expected that the number of vehicles on Gauteng’s roads will increase from 3.9 million in 2014 to 8.6 million by 2037. This increase would also affect peak-hour traffic, which would slow to 41km/h by 2025, and 23km/h by 2037. This would naturally cause chaos on the roads and shows a desperate need for an increase in public transport options in the province.
The proposed expansion is aimed at alleviating the growing issue of traffic on Gauteng roads. Gautrain plans to directly address this issue with a proposed expansion plan that will see 211,000 jobs created as well as a R19 billion procurement spend on black-owned entities.
(Compiled by Daniel Friedman)
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