Cape Town’s passenger rail system has seen a drastic decline over the past decade under the management of the Passenger Rail Agency of South Africa (Prasa), with passenger trips plummeting by 92% from 172 million in 2012/13 to just 13 million in 2023/24, Cape {town} Etc reports.
Now, a new proposal suggests that if the City of Cape Town takes over the management of the rail network, it could restore the system to 2012 levels and even expand the network, creating up to 54 000 new housing units on land around the city’s 92 train stations.
The proposal, set to be presented to the City council on 5 December, outlines the potential of turning underutilised land around stations into hubs of residential, office, and commercial developments. The estimated cost for this transformation is close to R100 billion over the next 30 years, with the aim to increase daily passenger trips from 707 to 981 by 2032. Key upgrades proposed include new east-west lines across the southeast metro and extensions to areas like Bloubergstrand and Kraaifontein, which would offer more convenient routes for commuters.
A major part of the plan also focuses on generating revenue from the land around the stations, which could increase income from R46 million a year to R777 million. However, the initial development costs are significant, projected at R88.5 billion for 25 stations. Despite the steep upfront costs, the plan emphasises that revenue from the land, combined with strategic town planning and infrastructure development, could create a sustainable, modernised rail system for Cape Town.
The study suggests several possible structures for governance, including the City assuming full control of the network or working with private operators. The preferred model is one where the city owns the network but grants concessions to private operators for management.
This model is seen as the least risky while ensuring a reliable service. While fare revenue alone will not cover operating costs, the City’s ability to leverage its real estate could make the revitalisation of the rail network financially viable in the long term.
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