Gautrain project Johannesburg
28 September 2006
Minister Jeff Radebe
Deputy Minister Jabu Moleketi
MEC Mashatile
Other Members of the Executive Council
Executive Mayors and councillors
Your Excellencies, Ambassadors and High Commissioners
The Bombela consortia
Heads of departments and agencies
Distinguished guests
Ladies and gentlemen
Members of the media
During the state of the province address on 14 February 2000, we said:
"As part of our commitment to ease congestion on the roads, improve the
movement of goods and persons, promote easy connection between some of our
cities, we are embarking on an exciting venture which will link Pretoria,
Johannesburg and the Johannesburg International Airport(JIA). A pre-feasibility
study for a high-speed rail link was concluded at the end of last year. A full
feasibility study to be completed by October this year will begin before the
end of the first quarter of this year. Our goal is to call for international
tenders for this venture before the end of the next financial year."
On 4 September 2001, during the Gautrain rapid rail link investor conference
we said:
"Welcome on board the Gautrain rapid rail link. Sit down and relax. I hope
you will enjoy the journey from Johannesburg to Pretoria and from Sandton to
the Johannesburg International Airport. We are now ready to leave the
station.
This conference is an important milestone on the exciting journey we are
undertaking away from the congested Ben Schoeman, the M1, N3 and the R24. It
takes us closer to our goal to make Gauteng a "smart" province. It is also an
opportunity for us to engage one another on all the details of the project.
The Gautrain Rapid Rail Link is not just an ordinary transport or
infrastructure development project. It represents a change from the old
policies of rail transport in our country. It aims to contribute to the
creation of a more efficient public transport system. It is also an indication
of our commitment to move towards more usage of rail transport, both with
regard to passengers and freight.
While we will not abandon the building of new roads where necessary, we are
of the view that the only way to deal with congestion is through the promotion
of public transport. New roads should be primarily about linking new economic
and residential areas to existing ones and to cities and towns. It must never
be about satisfying our personal desires to travel alone in our cars.
Through this developmental project, we will forge a lasting partnership with
the private sector for the creation of infrastructure, the stimulation of
economic growth and the creation of employment opportunities for many of our
citizens. The recently completed comprehensive feasibility study has confirmed
both the viability and necessity of the project. As we are all aware, the
project involves a modern state-of-the-art rail connection, linking Pretoria,
Johannesburg and the Johannesburg International Airport.
A new attractive image for public transport is required for a realistic
alternative for the road user. Together with the successful bidder, we will
ensure that the trains are predictable, reliable, safe and affordable. The
successful bidder will have to put forward safety measures, including visible
security in trains and around stations. In order to provide a convenient
door-to-door service, adequate and safe parking for private cars will be
available at all stations. Dedicated bus and other services will also be
available to transport passengers to and from stations at each end of their
rail journey.
Besides a general transport services, a dedicated service for local and
international air passengers will be operated between Johannesburg
International Airport and Sandton, with de-centralised checking-in facilities
available at Sandton Station, as is the case in London and Stockholm. The price
of an air ticket will be able to include a train trip to and from Sandton and
that passengers will be able to weigh in baggage at Sandton. An air ticket
will, therefore, also be able to stipulate, for example, London to Sandton or
Sandton to Cape Town.
Purpose designed trains, suited to the specific needs of air passengers and
offering an excellent travel environment will be used for the dedicated airport
service. The airport connection service will bring Gauteng in line with many
major cities in the world where it is becoming common practice to link cities
and international airports by rail.
The Gautrain project will also actively promote a range of government
objectives, such as the promotion of tourism, job creation, small and micro
enterprises (SME) development, private sector participation and investment, and
black economic empowerment (BEE). Further strategic objectives of the Gautrain
project are:
* to strengthen existing development nodes in Gauteng
* to promote urban restructuring and redevelopment
* to facilitate the revitalisation of the central business districts of
Pretoria and Johannesburg, this is the key to economic growth in this
province
* to improve accessibility and mobility in the Pretoria-Johannesburg
corridor
* to promote the image and use of public transport
* to develop an integrated public transport system, through the use of feeder
and distribution systems
* to integrate land-use and transportation planning
* to facilitate value capture as part of the development of the station
precincts.
During the announcement of the preferred bidder on 2 July 2005 we said:
"The province has set itself the following key objectives that the Gautrain
project should obtain as part of a larger economic development initiative.
* to stimulate economic growth, development and job creation
* to alleviate severe traffic congestion in the Tshwane - Johannesburg
corridor
* to achieve the province's goals with small, micro and medium enterprises
(SMMEs), tourism, BEE, etc.
* to promote the use of public transport
* to improve the image of public transport and attract more car users to public
transport
* to promote business tourism through the link between Sandton and JIA
* to significantly contribute towards urban restructuring, shortening of travel
distances and improving city sustainability
* to provide a link(s) to the Tshwane ring rail project � linking Mamelodi,
Atteridgeville, Soshanguve and Mabopane
* to stimulate the renovation and upliftment of the Johannesburg and Tshwane
central business districts (CBDs)
* to link the main economic nodes in Gauteng with the JIA
* to comprise a holistic transport plan and network for Gauteng"
I have taken you on this journey to remind ourselves of the objective of the
Gautrain. This part is to ensure that we separate our own expectations from
those set by the national, provincial local government in pursuit of this
innovative and exciting venture.
A month ago when we launched the Gauteng City Region perspective, we said:
"A successful Gauteng city region needs an effective and integrated transport
system which includes a variety of different modes of transport including
trains, taxis, buses and private cars. Of particular importance in meeting the
needs of our people is a public transport system which is safe, reliable,
accessible and affordable and integrated."
We said the Gautrain is the backbone of such a system and taking into
account that many of our people will continue to rely on Metrorail, taxis and
busses our strategy must ensure that these modes of transport also become
efficient, safe, reliable, and affordable and integrated. It is therefore clear
that contrary to the assertion by those who have made the criticism of the
Gautrain a national pastime, we have never seen the Gautrain as a solution to
all our public transport needs.
So just as before let me once more welcome you on board the Gautrain. As is
popular it is important to announce those who are with me as co-pilots,
engineers, stewards etc. Past co-pilot Jabu Moleketi, welcome. I am happy you
are here to see the fruit of what many thought was adventurism by the two of
us. A warm welcome and congratulations to my current co-pilots, Minister Radebe
and Paul Mashatile the current chairpersons of the political committee on the
Gautrain.
Please fasten your seatbelts, sit back and relax. Be warned however that we
predict a storm after today's launch. We also predict turbulence on the way as
we do everything to ensure that the lending institutions finalise their plans
within the time frames set by themselves, that the storms in the Bombela
consortia subside as we begin construction, that national, provincial and local
government will have to in the meantime sort out the challenges of public
transport to ensure that it is safe, reliable, affordable, inter-modal and
expanded to new areas. So I would advise all passengers to keep their seatbelts
fastened for the duration of the trip.
As much as today is a day of celebration, it is also a day of reflection.
Reflecting on the route we have travelled on the journey of turning Gautrain
from a vision into reality. The journey was by no means easy, but it will
always be one well worth travelled. In more ways than one, it was indeed an
incredible journey.
This journey which started with the 1997 trade and industry strategy, has
taken us to the pre-feasibility, feasibility, request for proposals,
negotiations with the two chosen consortia, Gauliwe and Bombela, to the
announcement of the proffered bidder, to financial close negotiations, to
Environmental Impact Assessment (EIA) and the various objections culminating
with today when we now go under the belly of the earth with construction that
will include tunnelling.
We have already achieved a number of important milestones along our route
since I announced the Gauteng Provincial Government's plans for a rapid rail
system at the Opening of Legislature in February 2000.
In 2000/01 we did a feasibility study, followed by an extensive
Environmental Impact Assessment in 2002/2003 upon which final authorisation was
received in April 2004. The procurement process started in February 2002 and
the preferred bidder was announced in July 2005. Since then we have been in
extensive and fruitful negotiations towards Financial Closure. We commenced
with the procurement of land according to the Gauteng Transport Infrastructure
Act in April 2005.
However, Gautrain is now moving into a next phase "CONSTRUCTION!" Putting
into action the provincial government's commitment to make Gauteng a better
place, a place where people will have the choice of a world-class public
transport mode. We are proudly taking Gauteng further!
Gauteng remains the main contributor to South Africa's economy, accounting
for 33% of South Africa's Gross Domestic Product (GDP) and for about 10% of
Africa's GDP, making it the fourth largest economy in Africa. It is expected
that we can see a real Gross Geographic Product (GGP) growth of 5,5% in 2006.
Our province is responsible for 49,6% of all employee remuneration and 52% of
all turnovers of institutions.
Central to the development of any economy lies in the country's transport
infrastructure development. The powerhouse of South African economic activity,
the Gauteng province, illustrates its commitment in this regard with the
Gautrain project. We have confirmed the need for critical infrastructure
projects and investment by implementing this flagship project in partnership
with the private sector so as to enhance our service delivery to the
public.
We have agreed with the national Department of Transport that we should
jointly ensure that Gautrain is used as a catalyst to promote public transport
and to ensure that there are high levels of integration with other modes of
transport in the province existing and planned.
The development of an integrated and sustainable transport system is
critical to Gauteng's success as a global city region. We have identified the
pillars of a transport strategy required for a city region and they include
review of the current road network and development of a revised road network;
the development of an affordable, accessible, reliable and safe public
transport system; a review of the current public transport subsidy system and;
the introduction of intelligent transport systems and mechanisms to co-ordinate
and align various modes of transport.
The Gautrain project is an integral part of the Gauteng Growth and
Development Strategy (GDS) and is linked to the development of infrastructure,
ensuring the movement of people, goods and services. Our GDS provides a
practical framework to substantially raise the economic growth rate and create
sustainable jobs. It is estimated that Gautrain will create 93 000 direct,
indirect and induced jobs during construction, and more than 3 000 per year
once operation commences and that its contribution to the province's GGP will
be between 0,7% � 1,0%.
This means that the Gautrain will assist in meeting some of the objectives
of the GDS by providing social and economic infrastructure to stimulate job
creation and growth in an environmentally sustainable manner. It will also meet
the GDS requirements for Broad-Based Black Economic Empowerment (BBBEE) in
terms of broadening ownership and control; skills transfer and preferential
procurement. Emphasis is further placed on the empowerment of women, youth and
people living with disabilities.
Another important objective of government, the transfer of skills, will be
met by the Gautrain project. Not only will our people benefit by working
shoulder-to-shoulder with the best rail and civil engineers in the world, they
will also benefit from international skills transfer. The people responsible
for assembling the trains in South Africa will be trained at the Bombardier
plant in Derby in the United Kingdom.
But it is not only the people and the economy of Gauteng that will benefit
from the Gautrain, it is also our environment. A reduction of 70 000 tons of
carbon dioxide exhaust emissions from cars on the main routes between Tshwane
and Johannesburg will be evident. Furthermore a rail system can transport far
more people in less space than what it takes for road based transport I do not
have to remind you that we don't have an abundance of space in Gauteng.
In the future we will live in a very crowded Gauteng. On current demographic
projections, urban Gauteng will be home to 14,6 million people by 2015 and will
rank amongst the largest metropolitan settlements in the world. Investment in
strategic economic infrastructure is the key to the future success of Gauteng
as a competitive city region. Our investment in Gautrain will assist us in
meeting our objectives of infrastructure development, growing the economy,
increasing employment and reducing poverty.
Urban restructuring and densification as well as moving towards mixed-mode
living are two more benefits that Gautrain will bring to our urban landscape.
Properties in the regions of planned stations are in high demand. The planning
departments in all three metropolitan councils report that they cannot keep up
with approvals for developments in these areas.
Although construction will commence at the same time on the entire route,
the project will be completed in two phases:
* This first phase will be completed in 45 months, in time for the 2010
Federation of International Football Association Soccer World Cup and includes
the sections between Johannesburg International Airport, soon to be known as
the OR Tambo International Airport and Sandton, and Sandton and Midrand.
* The second phase, to be completed in 54 months, includes the sections
between Sandton and Johannesburg Park Station and Midrand and Hatfield.
Bombela has given me their assurance that we will be well in time for the
Soccer World Cup � a promise I'm going to keep them to! I however hope that
even the other leg, at least up to Pretoria station, will also be ready.
Gautrain is the world's second biggest rail public-private partnership. I
have a strong feeling that Gautrain will not only be seen globally as a leading
rapid railway system but also a shining example of effective public-private
partnership.
We have travelled the world to look at international best practices in the
rail industry I am sure that in a couple of years' time Gauteng and Gautrain
will be on the list of these international best practices.
In the streets, in the cafes and coffee shops, around dinner tables, in the
boardrooms of big and small corporations, in places of learning and around
newsrooms, people have been discussing this project. Some cannot wait to board
the train; others have used their freedom of speech to disagree with us. As the
Gauteng Provincial Government, we appreciate this debate - it is what makes our
democracy great. But it is also important to note that the train has now left
the station!
I am well aware of the challenges laying ahead of us especially the
challenge of managing the impact that the construction of this mammoth project
will have on the people of Gauteng. I give you my assurance that the
inconvenience will be well worth it.
Today as we commence with the construction of Gautrain, we look back and
acknowledge by working with others we have indeed been able to walk a minefield
to reach this milestone. This has been made possible through a partnership
approach:
A partnership amongst the three levels of government and with parastatals.
Here I would like to thank the national Department of Transport and the
National Treasury's Public-Private Partnership (PPP) Unit and the three
metropolitan councils of Ekurhuleni, Johannesburg and Tshwane. Special
recognition also has to go to the Airports Company of South Africa, South
African Rail Commuter Corporation and the South African National Roads Agency,
a partnership between the Gauteng Provincial Government and its private sector
partner the Bombela Consortium, and above all a partnership between the Gauteng
Provincial Government and the people of Gauteng.
My gratitude also goes to my colleagues, the chairperson of the Gautrain
Political Committee, MEC Paul Mashatile and his committee members MEC Jacobs
and Mahlangu, the provincial Director-General Mogopodi Mokoena and Nomfundo
Tshabalala, the Director-General of Treasury. To Jack van der Merwe and his
multi-disciplinary team congratulations and good luck for the next stretch, we
will keep a close eye on your progress.
I thank you.
Issued by: Gauteng Provincial Government
28 September 2006
