Johannesburg — THE Department of Transport yesterday outlined an ambitious plan to revamp the country's passenger rail network over the next 20 years, including the building of three high-speed rail projects, a new link between Tshwane and Moloto and a R95bn investment in new rolling stock.

Once implemented, this will be the biggest railway investment in almost a century.

"SA has a wide rail network shaped by our economic and social history. This network requires massive rehabilitation and modernisation," said transport director-general George Mahlalela.

"Our starting point is that the passenger rail sector requires balancing investment between refurbishing existing stock, acquisition of new stock and the construction of new corridors."

He said rail was the backbone of the country's public transport.

The department has finalised a detailed investment programme of action, and several elements have been submitted to the Cabinet for consideration in the next few months. These include the building of high-speed networks between Johannesburg and Durban, Johannesburg and Cape Town, and Johannesburg and Musina. "We will start with the Durban-Johannesburg project. As of October, a team will start with the dual processes of concept development and test the market," said Mr Mahlalela.

He said it was too early to put a cost to the high-speed projects. They would be public-private partnerships and the department was investigating innovative funding mechanisms that did not require the support of the Treasury.

An investors conference will be held next month.

The department's deputy director-general, Lefranc Situma, said that it would be a mistake to use the Gautrain as a base to cost the Johannesburg-Durban high- speed rail link.

"The biggest cost of the Gautrain was property reclamation. That does not apply to this project," Mr Situma said. The new high-speed networks came in for some criticism at yesterday's presentation as being over ambitious and ignoring current rail infrastructure problems.

Mr Situma said that SA's rail infrastructure faced collapse because "we did not plan ahead and dream about the future. The last major infrastructure took place in 1908. We have moved on since then and we face new challenges in the decades ahead."

Other elements of the action plan include approaching the Cabinet this month to authorise a R95bn investment in new rolling stock at the Passenger Rail Agency of SA.

"We are planning to go to the market next year," said Mr Mahlalela.

A priority will be a new long-distance service between Tshwane and Moloto. "We have a challenge with regard to the movement of workers between Tshwane and KwaNdebele. Workers travel 120km- 180km one way to work every day at an average cost of R7500 per passenger per month. This is costing R350m per year on state subsidies. This is clearly not sustainable," he said.

He said there were several solutions, including encouraging people to move closer to Tshwane or getting new industries to set up in the area. "That is fine, but when is that ever going to happen? We believe under the circumstances that rail is the best option," said Mr Mahlalela.

The department has also targeted the end of the 2011-12 financial year to finalise a rail policy and the establishment of a rail economic regulator.