It makes sense for the City of Cape Town to take over the running of commuter rail, but there is a catch: it is very expensive. This is according to Prof Stephan Krygsman, an expert in transport economics at Stellenbosch University.
Earlier this month, the city announced it had signed a service-level plan (SLP) for rail with the Passenger Rail Agency of South Africa (Prasa) after extensive negotiations.
This month the Cape Town council also approved its rail feasibility study, which began in 2022 and investigated the impact and implications of passenger rail services being devolved to the city.
The study reports that lower- to middle-income earners would save an estimated R932m a year if trains were working as they should.
Krygsman says transport is perhaps the most important element of local planning.
“As the main purpose of local government is to stimulate economic development, ensure equitable and effective access to employment opportunities and redistribute income, it only seems fair that the city should control all the transport modes under its spatial area of jurisdiction,” he tells the FM.
But he points out that the various elements of rail must be considered, “including the physical track, the stations, the signalling, the coaches, the locomotives, the staff (operational and administrative), the management systems and so forth”.
He adds: “The skills involved are not the typical ones you will find in a city government.”
Another big issue, says Krygsman, is what the city’s focus would be: accessibility or the modes of transport.
Our passenger rail plan cannot take only the current situation into account. It has to cater for future demand
— Geordin Hill-Lewis
“The success of rail, and in fact of all modes [of transport], depends a lot on where people are located. If a lot of people live on the urban edge, they will require a lot of transport to employment opportunities. But ultimately, the better option is to move them closer to employment or move jobs closer to them.”
Krygsman adds that the Gautrain receives a subsidy of about R1.6bn a year and its market is significantly larger. “Cape Town will have to get a substantial subsidy allocation from the national government.” He says the city could also claim a larger share of the fuel levy to fund rail.
It is important to view the entire transport system as a unit, he says. “It’s difficult to undertake a feasibility study for a single mode. It’s much better to determine the overall integrated intermodal system for the city, as the modes are sometimes substitutes and sometimes complementary.”
The topic of rail devolution was discussed in parliament recently. Deputy transport minister Mkhuleko Hlengwa said the department is working on a devolution strategy and that it will be workshopped when that work is done.
“We must look at the key questions of affordability and practicality. Can we afford to have nine Prasas? Does it form part of the strategic direction that is consistent with what we want to achieve? So there are many factors that we have to look at, but this work is under way,” he said.
The city’s feasibility study reports that the passenger rail system has faced significant challenges because of theft, vandalism and operational disruptions, particularly during Covid. These incidents cause substantial financial losses and hinder network recovery efforts.
The study proposes three possible ownership models. The first is that the city owns, operates and maintains the rail network, stations and trains, and absorbs Prasa personnel. The second is for the city to own all rail-related assets and concessions, the rail network and the stations, and for it to have responsibility for all train operations and maintenance. The concessionaire would absorb Prasa personnel. The third suggestion is for the city to procure a large-scale integrated solution through a comprehensive concession.
The city says the business plans should be completed by mid-2025.
Mayor Geordin Hill-Lewis told the city council this month: “Through these business plans, we will get a clearer idea of the viability as well as the possible funding strategies for each option. We will also then have clarity on the kind of capital investment it will take to replace dated assets and expand the rail network.
“Expansion is important, because our city is growing at a rapid rate. Our passenger rail plan cannot take only the current situation into account. It has to cater for future demand, whether this is through increasing the capacity on existing lines or expanding the service to new areas.”
A Prasa statement says the SLP is the first of its kind and represents a “partnership designed to harness co-operative governance” and is not an agreement on devolution.
The national department of transport did not respond to questions.
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