Government turns to private sector to save passenger rail

South Africa is seeking private investment in its passenger rail system, saying national coffers aren’t deep enough for the type of cash required to modernise and expand the network.

The government is looking at investment in regional rapid trains with top speeds as high as 300 kilometers (186 miles) per hour, Transport Minister Barbara Creecy told reporters on Sunday.

Funding is also needed for spending on smart ticketing, upgrading train maintenance depos and commercializing the Passenger Rail Agency of South Africa’s fiber-optic network, she said.

Prasa collapsed in 2020 during the Covid-19 pandemic after looters vandalized most of its 580 stations and stole power lines feeding the trains, rendering about 95% of its network unusable.

The state has since paid for repairs and restoration of the network, according to Creecy.

“To continue on the recovery path, Prasa requires additional investment that cannot be carried by the fiscus alone,” Creecy said in the capital, Pretoria.

There will first be an information-gathering process on the projects, which may take four to six months, after which South Africa will issue a request for proposals.

The private investment will be directed to expanding and developing new passenger railway assets that will eventually revert to state ownership, according to the minister.

“Building new railways lines is not an immediate issue, but if you don’t start, you’ll never finish,” Creecy said.