BuaNews (Tshwane)
3 July 2009
Cape Town — Government is investing R25 billion over the Medium Term Expenditure Framework period to stabilise and upgrade rail passenger transport services in the country.
Tabling his Budget Vote in Parliament on Friday, Transport Minister Sbu Ndebele said of this amount, R14 billion was being spent to upgrade rail passenger infrastructure and rolling stock while the rest will be funding for rail operations.
Minister Ndebele said the Passenger Rail Agency of South African (PRASA), had shown its capacity to absorb the huge capital allocations, and in some instances, had exceeded the capital funds allocated to it.
"Increased spending on rail infrastructure will be of vital importance in the current economic climate and in sustaining jobs," the minister said.
He said South Africa had gone a long way in arresting the decline in commuter rail services over the past few years.
PRASA has since the 2006/07 financial Year accelerated the rolling stock investment programme.
This has resulted in over 1 500 coaches being refurbished to the tune of R5 billion.
"An additional 700 coaches will go through this programme this year at an estimated R2billion," said Minister Ndebele adding PRASA was on course to eliminate the historical backlogs in the in the rail industry.
He further said while the R25 billion allocated by government remained vital to the upgrading of the current rail passenger transport, a need exists to recognise that intervention will not resolve the key underlying challenges facing rail in the long-term.
"We should be forward-looking and start investing in a manner that will meet future transport requirements," said Minister Ndebele.
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