http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.15Change: -0.05
R/$ = 11.65Change: -0.10
Au 1283.66 $/ozChange: 10.51
Pt 1240.50 $/ozChange: 12.30
 
 
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 Letters 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 News This Week News
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
More
 
 
Latest News
SAA acting CEO Nico Bezuidenhout, Finance Minister Nhlanhla Nene and SAA chairperson Dudu Myeni
Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
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