Aug 29, 2008
Gautrain will not be a profitable venture – economistBack
Johannesburg|Port|Pretoria|Africa|Gautrain|Gautrain Rapid Rail|Road|Roads|System|T-Sec|Africa|Europe|South Africa|Europe Tunnel|Gautrain|Tambo International Airport|Transport|Gautrain|Gautrain|Mike Schussler|Rail|R300
© Reuse this A leading economist has said that the R25-billion-plus Gautrain rapid-rail link will not operate profitably, as its fares will be way above what the average public transport user can afford.
“A lot of people do not want to get on a train or bus because they are scared that they might get mugged, raped or attacked,” he added.
Schüssler said that because the Gautrain would charge fares of up to R300 to trans-port tourists from OR Tambo International Airport to Sandton, it would price itself out of the market.
“Even if the Gautrain is a good transport idea, people will still have to take a taxi to travel from the station to their destination. It is quite clear that we are aiming this thing at the wrong arena. “For a lot of people, R300 is a lot of money, and if people from Alexandra want to go to the airport, they would rather use a taxi,” he said.
“Who uses public transport?” he asked, rhetorically adding, “Not many rich people are in trains, buses, or taxis – they are in cars. “When we do something for public transport, we need to think about the target market. And if we think we will get the guy with the Bentley to use the Gautrain, then we are mistaken. “We need to have a clear knowledge of what goes on around us before we make these decisions.”
Schüssler said that because of the Gautrain, government would introduce a tax for using the road channels to the airport, and between Johannesburg and Pretoria, and that government might use this as leverage to increase usage of the Gautrain transport system.
“Another way in which government can enforce the usage of the Gautrain is to build new roads, charge people 50c/km, increase this to R1/km and a few years later to R5/km to use the road.
“Currently, we have a lot of new people driving cars. The amount of cars on the road was six-million, which recently increased to over 8,2-million cars, and to increase the usage of the Gautrain system, the government will increase road taxes, making it impossible for people to travel to, for example, Pretoria from Johannesburg, or to the airport, because the taxes will be too high. “We need to think these things through a lot [more clearly] than we are doing at the moment,” he concluded.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...