19 May, 2011 16:42

Artwell Dlamini

Gautrain is a catalyst for development: economist

Gautrain, the rapid transit rail commuter service that goes into full operation in just over a month, provides an economic backbone for Gauteng, SA's wealthiest province, according to Chris Hart, economist at Investment Solutions.

Gautrain, which links Johannesburg, Pretoria and OR Tambo International Airport, will officially start to run its full operation from June 28.

Already, the multibillion-rand rapid rail commuter service is drawing interest from businesses, underscoring its potential for galvanising Gauteng's economic activities.

Hart says Gautrain's 10 stations would prove to be developmental hubs and add a new dimension to how cities are developed and designed.

Stations, he says, have increasingly become central points of urban planning, highlighting the Gautrain's role as the "backbone of economic development".

There are office and residential nodes around stations, which will ultimately create work opportunities.

Presently, the Gautrain commercially operates on the route linking Sandton and Oliver Tambo International Airport. Some feeder bus services are available.

It is clear that Gautrain's ticketing has been priced to attract regular commuters, Hart says, adding that the rapid transit system will help speed up the movement of people around and between the major cities of Johannesburg and Pretoria.

The Bombela Concession Company, which will operate the Gautrain for the next 15 years, says there is interest in the Gautrain from businesses in Gauteng, some of whom are already utilising the current operational service to and from the airport.

Although Bombela does not have figures, it is keen to engage with businesses on Gautrain service offerings, it says.

The Gautrain has made its mark, in particular, when it comes to socioeconomic advancement, such as empowerment and job creation.

Black-owned businesses hold 25% shares in Bombela.

During construction, more than 5.08 billion rand was spent on procurement from, and sub-contracting to, black entities.

The Gauteng Management Agency, which is overseeing construction of the Gautrain on behalf of the provincial government, says 34,837 jobs were created for South African-based workers.

Unskilled staff and semi-skilled staff attended more than 15,080 courses to improve their skills levels, Gauteng Management Agency says.

But Hart poses a question, asking whether the Gautrain model would inspire the rejuvenation of Metrorail to also catalyse further development.

Metrorail is a national passenger rail service that is part of the Passenger Rail Agency of South Africa (Prasa).

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