07 November 2024, the City of Cape Town’s Portfolio Committee on Urban Mobility recommended that the outcomes of the City’s Rail Feasibility Study serve before the Council for approval and further action.
- The study proposes three ownership models for Cape Town’s ailing PRASA-run passenger rail service, with the key finding that the City should be in control of passenger rail for it to become fully functional and efficient, and to serve the City’s constitutional mandate of providing an integrated public transport system.
- Devolution would benefit Capetonians and lower income households in particular, and support local economic growth for decades to come.
View: President Ramaphosa Quietly Announces Major Delay to National Rail Devolution Strategy
The City’s Rail Feasibility Study commenced in July 2022 to investigate the impact and implications of passenger rail services being devolved to the City of Cape Town; ownership models based on international best-practice amongst others, and associated risks.
‘While the President delays rail devolution, Cape Town is racing ahead to develop detailed business plans to take over rail and get it working for all residents, especially lower income households.
‘Our city urgently needs a fully functional, efficient passenger rail service to meet the demands of a growing population, increase productivity, and expand our economy. Currently, up to 89% of commuters use road-based transport. This situation is unsustainable, and costly for especially lower income households, not to mention the impact of congestion and lost productivity on our economy and environment.
‘Functional rail will save lower income families in Cape Town R932 million per year and sustain 51 000 jobs in the metro, according to our research, which finds that the City should be in control of passenger rail for it to become fully functional and efficient, and to serve the City’s constitutional mandate of providing an integrated public transport system.
‘Simply put, we cannot serve our broader constitutional mandate for public transport without having control over rail as the backbone of an integrated system.
‘What is also clear is that the City cannot take over passenger rail without funding. The National Government will have to transfer the required budget to the City to enable us to operate passenger rail, which we estimate amounts to R123 bn over a 30-year period. Despite our frustrations with national government, we will continue pushing for a joint committee to fast-track devolution on behalf of Cape Town residents,’ said the City’s Mayor Geordin Hill-Lewis.
The following ownership models will serve before the Council for consideration, and if agreed upon, the next step will be to develop business plans for all three ownership options:
- The City owns, operates and maintains the rail network, stations and trains; and absorbs Prasa personnel
- The City owns all rail-related assets and concessions rail network, stations and responsibility for all train operations and maintenance. The concessionaire absorbs Prasa personnel
- The City procures a large scale integrated solution through a comprehensive concession
The study identified the above ownership models taking into consideration the City’s policy mandate and Integrated Development Plan. Potential financial implications were evaluated through a cost-benefit analysis to determine the extent to which financial support would be required. A detailed qualitative risk assessment was also undertaken as part of the study.
The estimated cost in nominal terms (which allows for inflation) over a 30-year period amounts to R123 billion. As such, a subsidy will be required from the National Government.
Pending City Council approval, the development of the business plans for the above ownership models will proceed for finalisation by mid-2025.
‘Pending council’s go ahead to further explore the above ownership models, then the next step is to develop a business plan for each model. The business plans will further investigate the financial, operational and strategic viability of the preferred ownership models. These will be comprehensive and detail the funding strategies, financial modelling, and operational management plans.
‘Once complete, the business plans will give us further clarity on the required capital injections to replace dated assets and expand the rail network. Expansion is critical as we have to plan ahead for a growing population – be it to increase capacity on the lines where the demand is high, such as the route between Strand and Bellville, or to expand the service to areas where there are currently no trains at all, such as the implementation of the Blue Downs line,’ said the City’s Mayoral Committee for Urban Mobility, Councillor Rob Quintas.
If all goes as planned, the outcomes of the Rail Feasibility Study will serve before Council in December.
