The South African Government has unveiled a plan to allocate R137bn ($17bn) to the Passenger Rail Agency (PRASA) to modernise rail infrastructure in the country..

The fund will be used to buy new rolling stock, build new rail tracks, introduce modern rail technology and revive South Africa’s rail engineering industry.

The country has increased its rolling stock investment from R97bn ($12.06bn) to R123.5bn ($15.3bn) to buy 7,224 new coaches over 20 years.

About R13.5bn ($1.67bn) will be invested in the installation of new signalling systems, as well as the contruction of new depots, modern stations and integrated ticketing systems between 2012 and 2015.

The country will invest R3bn ($373m) in new depots in Cape Town and Gauteng, and R1bn ($124m) in the set-up of a rail depot in Durban.

The initial portion of the investment will be announced in the February 2012 budget and will form part of the government’s New Growth Path and Industrial Policy Action Plan for reforming the manufacturing sector.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The first new trains will run on the Kapteinsklip and Khayelitsha routes and will be lighter and more energy-efficient with traction throughout all coaches.

High-speed trains have been planned for intercity journeys.

The bill is expected to be approved in 2012 and contract negotiations are targeted for January 2013, while the first test train is planned for delivery in 2015.

PRASA chief executive Lucky Montana stated that all funding for the projects would be public.