Technical and legal complexities are delaying the announcement of the preferred bidder in the three-horse race to provide twelve new four-car trains to the Gautrain system, says Gautrain Management Agency (GMA) CEO Jack van der Merwe.

The deal was expected to reach financial close at the end of last year.

The Gautrain system currently operates 96 coaches, with train configurations of either four or eight coaches, depending on time-of-day demand.

The Gautrain is operated by the Bombela Concession Company.
The acquisition of new trains is aimed at alleviating congestion during the morning and evening peaks.

The three pre-qualified bidders for the new rolling stock project are Bombardier Transportation, CRRC E-Loco Supply and Egoli Rail Consortium.

The Bombardier Transportation bid consists of Bombardier Transportation South Africa as the supplier, with the Strategic Partners Group (SPG) and Bombardier Transportation UK  shareholders in the group to maintain the rolling stock.

Both Bombardier and SPG are shareholders in Bombela, the Gautrain operator.

Bombardier Transportation is the rail equipment division of the Canadian firm Bombardier. It supplied the current Gautrain stock.

The CRRC E-Loco Supply bid includes CSR Zelc (SA) and the Matsete Basadi group as shareholders.

The two companies have partnered previously to deliver electric locomotives to South African State rail freight group Transnet.
CRRC E-Loco Supply is the South African subsidiary of China’s CRRC Zhuzhou Locomotive.

The Egoli Rail Consortium consists of Alstom Southern Africa, EOH Intelligent Infrastructure and Ubumbano OpCo.

The Gibela consortium, which is supplying Metrorail with 600 new commuter trains from a factory on the East Rand, is 61% held by Alstom Southern Africa and 30% by Ubumbano Rail. 

It has, however, in recent months emerged that Gibela is a special purpose vehicle and that the East Rand plant may not be used to produce any rolling stock other than for the Metrorail contract.

Also, Alstom has since the closure of the tender box been taken over by Germany-based Siemens, while CRRC has run into problems in its Transnet contract.

The complexities that have emerged regarding the Gautrain rolling stock contract revolve around the fact that the 48 train cars to be acquired are going to operate significantly longer than the current Bombela concession period, set to end in 2026, explains Van der Merwe.

This means the train cars will have to be held in a trust, which will hire the rolling stock to Bombela, he adds.

Europe has a vast number of different rolling stock brands operating successfully on the continent’s tracks, says Van der Merwe.

“The difference in rolling stock is not the problem, neither is funding. We have secured the funding necessary to execute the project. The challenge is how to structure the acquisition and use of these new train cars within a concession with a different life cycle.”

Van der Merwe emphasises, however, that the new rolling stock will have to operate at the same standards as the current Gautrain rolling stock.

“If these new train cars cause any delays, it will have a huge impact on the reliability of the entire Gautrain system.”

Van der Merwe expects the GMA to announce the preferred bidder and the reserve bidder by August this year, with financial close anticipated early in 2019.

Other expected improvements to the Gautrain system in the coming two years include upgrading the signalling system to reduce the time (headway) between trains, thereby increasing capacity on the network.

“We are also looking at adding an additional, fourth power source to enhance electricity supply to the system,” says Van der Merwe.

Network Expansion
The GMA is still awaiting approval from National Treasury to move ahead with the expansion of the Gautrain system by 150 km of rail and 19 new stations.

The expansion project proposes new lines from Little Falls to Cosmo City to Randburg to Sandton; from Jabulani, in Soweto, to Roodepoort to Little Falls; from Mamelodi to Hazeldean to Irene to Samrand; from Cosmo City to Fourways to Sunninghill to Olievenhoutbosch to Samrand; from Marlboro to Modderfontein to Rhodesfield to OR Tambo International Airport’s new proposed Midfield Terminal; and from Rhodesfield to East Rand Mall to Boksburg.

Van der Merwe says the private sector may become more involved in funding what has been loosely termed ‘Gautrain 2’, than was the case with the original 80 km system.

He says the current Gautrain network was build using funding from national and provincial government, as well as contributions from the winning bidder.

However, the construction of Gautrain 2 may be accelerated by imposing a levy on the private sector (such as property developers) wishing to leverage the position of a particular Gautrain station.

“We may charge the private sector for the benefits and value-add a Gautrain station bring to their developments,” explains Van der Merwe.

Gauteng Transport Authority
Gauteng’s 25-year Integrated Transport Master Plan (ITMP25) turns five this year.

Van der Merwe has been tasked by ITMP25 architect, Gauteng Transport MEC Dr Ismail Vadi, to review the masterplan.

“It seems as if the construction of certain systems, such as bus rapid transit systems, are not progressing as quickly as expected. Also, toll roads remain problematic. This means funding Gauteng’s transport network becomes problematic,” Van der Merwe explains.

Van der Merwe is also busy with legislation that will allow for the establishment of the long-awaited Gauteng Transport Authority (GTA).

The GTA will, for example, allow for holistic travel planning across the province’s three metros.

The Gauteng government aims to have the GTA up and running early in 2019.