Cheaper Gautrain tickets expected

Gautrain Management Agency (GMA) chief operating officer Victor Shange said that the Gautrain could soon be offering more affordable tickets for specific users.

MyBroadband recently spoke to Shange for more details about the Phase 2 expansion of the Gautrain network to around triple its current size.

In October 2023, the GMA announced it was in the advanced stages of finalising the project, which will see the total length of the Gautrain network jump from 80km to 230km.

On the North-South commuter line, it will add an additional route between Samrand and Mamelodi, with stops in Irene, Pretoria East, and Hazeldean.

The East-West Commuter line will be extended in both directions, going as far as Boksburg in the east and Cosmo City in the west.

A new line with Cosmo City in the middle will also extend from Jabulani in the south to Samrand in the north, with new stations in Roodepoort, Little Falls, Fourways, Sunninghill, and Olievenhoutbosch along the way.

Finally, the Airport Service line will be extended to Lanseria Airport, with new stations in the Cradle, Randburg, and Sandton.

The map below provides the basic composition of the expanded Gautrain network.

The expansion plan will see people in less affluent areas gain access to the service.

While these areas also have middle-class and higher-income earners, it would be a boon to those that have been restricted to bus or taxi services, if fares are priced similarly.

However, the Automobile Association of South Africa (AA) has emphasised that the system’s fares currently only cater to those with their own cars anyway.

It has described the expansion as a “disastrous” financial decision because it would fund a “failing” system.

The AA has taken particular issue with using billions of rand in Gauteng Provincial Government (GPG) funding to partially subsidise the system despite its fares being too expensive for many of Gauteng’s working residents.

It determined that Gauteng taxpayers—including those who do not use the Gautrain—had contributed close to R13 billion to the system through a Patronage Guarantee to the Bombela Concession Company, which operates the Gautrain.

“Because of the built-in insurance for poor performance through the Patronage Guarantee, less money is available in Gauteng for transport projects which can cater for the majority of citizens who do not have access to the Gautrain,” the AA said.

“The fact remains that the Gautrain serves people who already have transport options – the large parking infrastructure at Gautrain stations attests to this.”

Focus on reducing subsidy — but also dropping fares

The current concession agreement expires in 2026, after which the Gautrain will be handed over to the GPG.

Shange told MyBroadband that Gautrain’s number one focus would be generating alternative revenue to reduce its reliance on the subsidy.

The second focus will be reducing prices through special reduced fares for certain groups — including indigent families, pensioners, and scholars.

“The premium fare will always be there, but we’ll be able to introduce other ‘targeted’ fares,” Shange said.

These fares will apply to the expanded network and be rolled out earlier on the existing routes.

It should be noted that Gautrain already offers a 25% discounted fare for students who buy 10-trip or 44-trip products.

Shange explained that the first phase of the Gautrain’s development was an unproven greenfield project in South Africa.

This contributed to the original calculations used to set fares and the fact that the government had to offer the Patronage Guarantee to attract a capable concession.

“We come from where we had to have a business case that demonstrates particular margins for the investor,” Shange said. “Our margin of negotiation was very limited.”

Shange pointed out that the system would make more revenue than in the past, partly because it is now a fully paid-for asset worth R45 billion.

“Going forward, we know the commercial revenue and have the commercial rights to the system,” Shange said.

“At the moment, where there’s a billboard on the system, for example, we share the concession in terms of revenue. Going forward, that becomes ours.”

In addition, the GMA will tap into new revenue sources such as the driving licence testing centres (DLTCs) rolled out at its Centurion and Midrand stations.