The R27-billion Gautrain project had contributed around R20-billion to the provincial gross domestic product (GDP) over the six years it took to build the rapid-rail link, noted a KPMG Gautrain economic impact report, released in Johannesburg on Thursday.

Construction also sustained 121 800 jobs, and increased government revenue by an estimated R5-billion. Lower income households received around R2-billion during construction, mainly through wages and salaries, said the report.

It also noted that for every R1 in new investment into the economy by the Gautrain, an additional 73c was added to the Gauteng economy, and 16c to national government revenue.

Investment into the possible expansion of the Gautrain implied that an additional five jobs per R1-million spent would be sustained during construction.

Future expansion would also imply poverty alleviation in that 17% of additional household income generated would flow to low-income households.

When looking at current Gautrain operations, the system contributed R1.7-billion a year to provincial GDP, while sustaining about 6 000 jobs in Gauteng in 2013.

The system also increased government revenue by around R400-million a year, with around R200-million received by lower-income households, again mainly through wages and salaries.

For every R1 spent on operating the Gautrain, the provincial economy gained another 96c, and the national economy 24c.

The Gautrain also improved the quality of life of the province’s residents, noted the report, reducing road congestion by cutting car trips per day by 21 300 trips.

Around 63 000 people use the Gautrain every weekday.

The KPMG report also noted that around R10-billion was invested in new developments and upgrades to retail centres in a 10 km radius around stations between 2009 and 2014. Around R1-billion was invested in office space.

Residential property saw an increase in property value of R12.9-billion.

Gauteng Roads and Transport MEC Ismail Vadi said at a media conference that the results of the economic study were “extremely positive and better than we anticipated”.

“The study also shows that the Gautrain is not a system for the rich, as is often believed, as it benefits people from different income groups.”

Gautrain Management Agency CEO Jack van Merwe said the Gautrain operator currently received around R900-million a year in subsidies from government.

He said seat churn on the Gautrain – the amount of times the same seat is ‘sold’ – was much less than originally envisaged, with commuters taking longer journeys than what was planned for the system.

This affected the fare box.

Van der Merwe emphasised, however, that all forms of public transport was subsidised.

“It is the same as to look at a 50-storey building and ask if the lift makes money. Without the lift that building would be ten storeys or less. And if it doesn’t work the impact will surely be visible.”

He believed the KPMG study might assist in twisting National Treasury’s arm to assist in funding an expansion to the Gauteng rail network, required in order to deal with the rapid urbanisation visible in the province.

The feasibility for the possible expansion programme was scheduled for completion by the middle of next year.