South Africa’s rail commuter system will get R4,5-billion in capital subsidies over the next three years, according to the Budget Review.
The review, released on Wednesday together with Finance Minister Trevor Manuel’s Budget, notes that the system “faces urgent challenges”.
Manuel said the Budget allocated an extra R1,6-billion to the Transport Department over the three years starting in 2006/07 for rail infrastructure.
Spending on the capital subsidy rises from R655-million in 2004/05 and R688-million in 2005/06, to just over R1-billion in 2006/07.
It rises sharply again in 2007/08 to R1,5-billion. It again rises sharply to just over R2-billion in 2008/09.
The operational subsidy stays much the same at about R2,1-billion in 2005/06 and 2006/07, but rises to R2,2-billion in 2007/08 and then to R2,48-billion in 2008/09.
Manuel noted that about 2,2-million passenger trips per day were made on the network, “which comprises 3Â 115km and associated assets, such as power and signaling systems, 478 stations and more than 4Â 000 coaches”.
“Trains are often late, security is poor and there are safety concerns. Ageing signalling and track infrastructure and deteriorating rolling stock contribute to the service delivery challenges. The low fare structure contributes less than a third of total costs, requiring government subsidies to cover the balance of operating expenses and capital expenditure.”
“Capital costs in this sector are substantial — a new coach costs R12-million and refurbishment and upgrading costs range from R2,2-million for a standard coach to R4,7-million for a motor coach.”
Manuel noted that the South African Rail Commuter Corporation (SARCC) — an agency of the Transport Department — had responsibility for ensuring that rail commuter services were provided in the public interest and was “the custodian of commuter rail assets”.
Metrorail, a division of Transnet, operated the train service on behalf of the SARCC.
Over the past two years, the SARCC had upgraded 868 coaches at a total cost of R1,6-billion. In 2006/07 the SARCC planned to refurbish more than 500 coaches at a cost of about R2,5-billion, Manuel noted.
However, Transnet chief executive Maria Ramos announced this week that Spoornet had signed an agreement — worth R3,5-billion — with Mitsui and Company African Rail Solutions, a joint venture between the Japanese company and local partners, to supply the parastatal with 110 locomotives over five years.
Meanwhile, Manuel, noted that the consolidation of the three passenger rail entities — SARCC, Metrorail and Shosholoza Meyl — into a single structure had begun. A national commuter rail plan would lay the foundation for optimising public transport modes in metro areas and refocus passenger rail into higher-capacity corridors “ensuring a more sustainable service, improved operations and revenue and proper maintenance of assets”. ‒ I-Net Bridge