The City of Cape Town will have complete business plans in place by mid-2025 to take over the management of passenger rail services in the metro, Cape {town} Etc reports.
According to the City, the City Council has adopted a Rail Feasibility Study proposing three potential ownership models for Cape Town’s passenger rail service.
The study’s key finding is that the City should take control of rail to ensure a functional, efficient service aligned with its constitutional mandate to provide an integrated public transport system.
In a speech to the Council, Mayor Geordin Hill-Lewis said devolution would benefit Capetonians, particularly lower-income households, and support local economic growth for decades.
Mayor Hill-Lewis further announced in Council that the City last night received a signed Service Level Plan (SLP) from Prasa following months of negotiations, with the SLP set to lay the foundation for future rail devolution.
‘With Council’s approval of our Rail Feasibility Study today, Cape Town is set to have detailed business plans in place by mid-2025 for the City’s takeover of passenger rail,’ said Mayor Hill-Lewis.
‘Taking charge of Metrorail is especially important for lower income households, who would save an estimated R932m a year if trains were working as they should.
‘We have a vision to massively scale up passenger numbers, new train sets, new routes, and to upgrade stations and surrounding areas with affordable housing over the next two decades.
‘This is why we are glad to announce that Prasa has sent us a signed Service Level Plan to improve Metrorail in the short-term, which the City will monitor via a joint committee with Prasa.
‘The SLP lays the foundation for future rail devolution to the benefit of Capetonians and our local economy.
‘This is a big step towards improving the quality and reliability of the service through a legally binding agreement, and I am very pleased that we managed to get this finalised this year still,’ said Mayor Hill-Lewis.
The SLP enables regular, accurate progress reporting from Prasa, with the City overseeing Annual Performance Plan goals, including station revitalisation, more train sets, recommissioned service lines, and increased passenger numbers and train trips.
The City also commits to supporting passenger rail through municipal services, promoting transit-oriented development along rail corridors, and expediting permits within its planning authority.
Business plans will now be developed for three ownership models following Council approval today:
• 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 assessed ownership models based on the City’s policy mandate and Integrated Development Plan, evaluating potential financial implications through a cost-benefit analysis.
The estimated 30-year cost is R123 billion, requiring subsidies from National Government and significant private sector investment in passenger rail.
‘The business plans will further investigate the financial, operational and strategic viability of the preferred ownership models,’ said the City’s Mayoral Committee for Urban Mobility, Councillor Rob Quintas.
‘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.’
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Picture: Prasa Group/ Facebook
