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Martins confirms Gautrain ridership guarantee payments

12th July 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Government has paid a monthly rider- ship guarantee to Gautrain operator, the Bombela consortium since June 7 last year, amounting to R831.4-million by the end of March, Transport Minister Ben Martins has revealed in a written response to a question posed in Parliament.

While this number probably has critics of the public transport system up in arms, Gautrain Management Agency (GMA) CEO Jack van der Merwe emphasises that the monthly patronage guarantee has been steadily dropping since last year, as the result of an increasing ridership on the public transport system.

Average weekday passenger trips on the train increased from 26 000 at the beginning of April 2012 to 42 000 at the end of March.

According to the agreement between government and Bombela signed at the start of the R26-billion project, a patronage guarantee is payable to the operator to ensure it covered all its costs, while still making a reasonable profit.

It is expected that the guarantee payable will decrease as fare box income increases, with a 50:50 profit sharing system between government and Bombela applicable once the fare box income reached a level where all Bombela’s costs were covered.

These costs include operational costs, maintenance and replacement costs and the servicing of loans. Income includes fare box revenue, value-add income (such as advertising revenue).

The patronage guarantee serves to make up the shortfall.


Van der Merwe says public transport is subsidised worldwide, and the Gautrain is no different. Metrorail is also heavily subsidised, at roughly two-thirds of ticket costs.

He expects to reach the profit-sharing phase of the concession “in a few years’ time”.

Martins also noted in his Parliamentary response that there are no plans to increase the number of stations in the Gautrain system in the short term. However, provision has been made for possible stations at Modderfontein, on the east–west service, and Samrand, on the north–south service.

He says a property developer will provide the capital for the Modderfontein station.
He also notes that Bombela is investigating the technical feasibility and associated costs to introduce an earlier train and a later train between Sandton and OR Tambo Interna- tional Airport, without impacting on the contractual engineering/maintenance hours.

“The concessionaire indicated its willingness to consider paying for this, but reserved the option to request a possible contribu- tion from the GMA. Discussions and investigations are continuing to further extend the operating hours, but there is no definite plan yet.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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