link project case study

Gautrain Rapid Link Project

COUNTRY | Gauteng

REGION | Africa

SECTOR | transport

QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 4 Building Resilience, Principle 5 Social Considerations, Principle 6 Infrastructure Governance

QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Value for money analysis, 2: Life-cycle costing, 2: Operation and maintenance, 2: Technological innovation, 3: Environmental Impact Assessment, 3: Emissions, 6: Growth & development strategies, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Anti-corruption

Cost: Capex: R31.8 billion; Opex and maintenance: R6.2 million/km (year 1) – R10.9 million/km (year 5); Rolling stock: R17.3 million per coach.

Size: The Gautrain is a rapid rail project that spans approximately 80km linking the metropolitan cities of Johannesburg and Tshwane as well as the O.R. Tambo International Airport. The rail is considered to be a trunk service and is complimented by a feeder/distributor bus fleet.

Relevant contractual details (type, length etc.): The project is a Public-Private-Partnership (PPP) officiated through a concessionaire agreement between the Gauteng province as the project owner and Bombela Concession Company as the private sector party. The Gautrain Management Agency (GMA), an entity of the province, manages, coordinates and oversees the Gautrain project on behalf of the province. The concessionaire is responsible for operations and maintenance as part of a design, built, operate and transfer contract model.

Context:  The Gauteng Province embarked on a project to implement a state-of-the-art rapid rail network in Gauteng. The project was conceptualised in 1997 and implementation started in 2000. The goal of the project was not only to radically upgrade public transport in the Province, thereby contributing to the goals and objectives of a large range of national and provincial policy plans, but also to improve the economy of the Province and the quality of life of the people of Gauteng. In view of Gautrain’s driving forces, the vision of a broader provision of integrated transport emerged, which entailed at its core a rapid rail link system that would connect with various other nodes of transport in Gauteng.

Aim(s) of the project:  The project aims to relieve traffic congestion on arterial routes between Johannesburg and Tshwane by providing a viable alternative public transport option to private car users. This was said to be achieved through reduced travelling time and improved mobility for passengers by offering a reliable, predictable, safe, secure and comfortable service. The project is also said to form a key component of an integrated transport solution for the province that complements (and not compete with) other modes of transport.

Key dates including procurement, construction, operations

Given the scale and uniqueness of the project, a decision was taken to follow a PPP procurement model in an effort to leverage off private sector expertise and funding. As part of the process, a feasibility study was undertaken and completed in 2001. Thereafter, three subsequent revisions to the feasibility study were done at Treasury Approval stages 1 and 3, with greater level of detail and accuracy improving as technical designs firmed up with finalisation of routes and thus the cost estimates became more realistic. The final iteration of the feasibility study was completed in 2006 and used as a key input into the concessionaire agreement that was subsequently drawn and signed between the province and the concessionaire.

Initial works for the Gautrain started in May 2006 and construction commenced after the signing of the Concession Agreement between the Gauteng Provincial Government and the Bombela Concession Company on 28 September 2006. Construction took place in two concurrent phases: the first phase involved the construction of the section between Sandton and OR Tambo International Airport. The second phase included the remaining six stations.

On the 15 May 2004, it was announced that South Africa would host the 2010 Soccer World Cup™. Gautrain’s project managers and stakeholders felt an obligation to South Africa to have the link between the OR Tambo International Airport and Sandton commissioned in time for the soccer world cup held in South Africa. In an effort to contribute to make the World Cup a success, the first part of the system, between Sandton and OR Tambo Airport, opened to the public on 8 June 2010, in time for the 2010 FIFA World Cup.

The route from Rosebank to Pretoria and Hatfield commenced operations on 2 August 2011, while the remaining section from Rosebank to Johannesburg Park Station opened on 7 June 2012.

Source: Economic impact of the Gautrain system and future expansion on the Province Executive Summary November 2014

Highlights/expected benefits In addition to generating concrete economic benefits, the Gautrain also delivers on social dimensions, bring about a greener, more sustainable Gauteng and improved quality of life for Gauteng's residence. Reduced cars on the road Between 1 April 2013 and 31 March 2014, an average of 42 456 passengers utilised the General Passenger Service route between Pretoria and Johannesburg on business days (excluding the airport link). As a result, the Gautrain effectively removed 24 200 would-be motorists from the Pretoria Johannesburg corridor every business day over this period. Therefore, based on the assumption that approximately 300 000 cars use the Pretoria Johannesburg corridor every business day, the Gautrain reduced the traffic congestion on this stretch of highway by 7.5% during the week over this period.

Reduced fatal accidents and resultant fatalities Between 1 April 2013 and 31 March 2014, a daily average of 42 456 passengers utilised the General Passenger Service route between Pretoria and Johannesburg on business days. This means that approximately 24 200 would-be motorists were effectively removed from the Pretoria Johannesburg corridor every business day throughout this 12-month period. Assuming the most recent fatal accidents and fatalities per day statistics listed hold true for the period 1 April 2013 to 31 March 2014, it stands to reason that the Gautrain has avoided 13 fatal accidents and 14 resultant fatalities during this period.

Reduced travel time The Gautrain's ability to move a large number of people through the busiest metropolis in Africa at a rapid speed is unequivocally its greatest advantage. While the minimum travelling times between Hatfield and Park station are relatively closely aligned for the two transport modes, road congestion occurs very often and inhibit one's ability to travel the distance in under an hour. With heavy traffic, the time spent between these two stations can increase three-fold. The Gautrain utilises a direct route between OR Tambo and Sandton station, thereby reducing the total road distance travelled by almost 40%. The reduction in distance travelled allows this trip to be completed in less than half the time a motorist would require with no traffic and up to 8 times faster with heavy road congestion.

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National Treasury

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