http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.76Change: 0.11
R/$ = 10.96Change: 0.10
Au 1193.42 $/ozChange: 4.09
Pt 1213.50 $/ozChange: 10.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 29, 2008

Gautrain will not be a profitable venture – economist

Back
 
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
Port||Africa|Gautrain|Gautrain Rapid Rail|Road|Roads|System||Africa|||Gautrain||Transport|Gautrain|Gautrain|Rail|
johannesburg|port|pretoria|africa-company|gautrain-company|gautrain-rapid-rail|road|roads|system|tsec|africa|europe|south-africa|europe-tunnel|gautrain-facility|tambo-international-airport|transport-industry-term|gautrain-organization|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.



“For five years, the Europe tunnel has not been making money, and there are many other railway lines in the world that are also not making money, because people prefer cars, and they prefer having personal mobility,” said T-Sec chief economist Mike Schüssler at the annual Rhode conference held in Johannesburg recently.

But for people who did not have cars, Schüssler remarked, the Gautrain was a good idea, because South Africa did not have a decent and reliable public passenger transport system.

“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 Construction News
A month before it plans to list on the main board of the JSE, property group, the Pivotal Fund has posted a net asset value per share excluding deferred tax (NAVPS) for the six months ended August 31, of R15.55 – a 5.9% increase on the NAVPS at the end of the...
Steel among the five resource value-chains being prioritised
The Mineral Beneficiation Action Plan (MBAP), which is currently in draft form, should be finalised by the end of March 2015, the Department of Trade and Industry (DTI) has confirmed. The department is leading the drafting process, which also involves the National...
Construction company Group Five says its strategy is strongly focused on expansion in Africa, with selected projects in Russia and Northern America also possibly on the horizon. Outgoing CEO Mike Upton says the South African construction industry saw what appears to...
More
 
 
Latest News
Industrialisation remains a major part of the South African developmental agenda and an important vehicle towards achieving the Department of Trade and Industry’s (DTI’s) target of creating 100 black industrialists in the next five years, Trade and Industry...
The construction of a new innovation hub in the heart of the Dube TradePort, in Durban, was set to kick off in March 2016, as Dube TradePort Corporation sealed a R160-million lease agreement with Eureka Capital. Eureka Capital planned to develop a seven-storey 21 500...
South Africa will become the first African country to host the Organisation for Economic Cooperation and Development’s (OECD’s) Steel Committee Conference when the committee’s seventy-seventh session takes place in Cape Town between December 11 and 12. The...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks