Gauteng's Gautrain
The Gauteng Provincial Government formed a partnership with local and international experts in business to build a modern transport network, the biggest Public-Private Partnership in Africa.
The train is expected to cut the number of cars on the N1 Ben Schoeman Highway by 20%, with 100,000 daily passenger trips.
The Gauteng Department of Transport obtained environmental authorization and conducted an Environmental Impact Assessment (EIA) for this purpose. Authorization was granted on 25 April 2004. On 7 December 2005 the South African government gave the go-ahead for the project, expected to cost more than 24 billion Rand.
In February 2006, Finance Minister Trevor Manuel announced the allocation of R7.1 billion from the National Fiscus for Gautrain. On 16 February 2006 then Gauteng Premier Mbhazima Shilowa announced that the Gauteng Province had reached commercial close with the Bombela Consortium, the preferred bidder, and that negotiations to reach financial close commenced.
Construction started on 28 September 2006, and investors, developers, small businesses, and entrepreneurs are starting new ventures such as office blocks, shopping malls, entertainment, and residential developments along Gautrain’s network. The demand for land as well as property prices in these areas increased dramatically.
Lightstone, an independent risk assessment company, has analyzed residential transactions and repeat sales price inflation of properties within 2 to 3 kilometres (1.2 to 1.9 miles) of each station, and compared this with the overall price inflation in Gauteng, Johannesburg, and Pretoria. The proportion of all transactions in Gauteng involving properties within 2 km (1.2 mi) of the station grew from 3.8% to 6.0% from 2000 to 2007, while activity in areas between 2 and 3 km (1.2 and 1.9 mi) from the stations remained relatively constant between 4.0% and 5.0% over that same period.
Future projections for business transactions and access to new markets for products, goods and services as a result of the Gautrain network is R6 billion. Sustainability of the transport service and city rejuvenation are key to Gautrain’s success.
Gautrain further achieved important objectives described in Gauteng’s Growth and Development Strategy. It included requirements for Broad Based Black Economic Empowerment in terms of broadening ownership and control; skills transfer and preferential procurement. Emphasis was also placed on the empowerment of women, youth and people living with disabilities.
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