After confirming that the Gauteng government would take over the Gautrain as a fully paid asset at the end of March, the operators now say it will continue as a public-private partnership for an extended period.
As the Gautrain rapid rail system approaches the completion of its initial contract in March 2026, authorities have confirmed it will now continue operating under the PPP model, with a new 15-year deal under negotiation.
The Gautrain Rapid Rail Link was established and executed as a PPP under Treasury Regulation 16 of the Public Finance Management Act (PFMA) in 2011.
The public partner and main advocate for the project is the Gauteng Provincial Government (GPG), while the Bombela Concession Company (Pty) Ltd (BCC) serves as the private partner.
The BCC currently holds a 19.5-year concession for the design, construction, partial financing, operation, and maintenance of the Gautrain system.
The Department of Roads and Transport and the Gautrain Management Agency (GMA) said the PPP model remains central to Gautrain’s operational framework.
“In his recent National Budget Speech, the Minister of Finance, Enoch Godongwana, emphasised that public institutions should increasingly consider PPPs as a viable alternative model for delivery,” the group said.
All costs related to establishing the Gautrain project will be fully settled by 27 March 2026, which should enable the Post-2026 Gautrain Project to deliver greater economic and operational benefits to the province and its residents.
To prevent any travel disruptions during this handover, a six-month extension has been arranged with the Bombela Operating Company to continue as per the existing concession agreement.
Gautrain, a state-owned asset valued at approximately R45 billion, offers a 50% discount on train fares to qualifying low-income earners, scholars, pensioners and SASSA disability grant recipients as part of its KlevaMova initiative to make public transport more accessible and affordable.
Additionally, students under the age of 25 are also eligible for a 50% discount through the Student Product, which was introduced in 2022.
The GMA said it will continue to support the Gauteng Provincial Government in advancing transport and rail-related initiatives, including the rollout of smart Driver’s Licence Testing Centres located closer to communities, particularly within Townships, Informal Settlements and Hostels.
“As we transition into the post-2026 phase, our priority is to safeguard service continuity, strengthen private-sector participation, and ensure that the Gautrain continues to contribute meaningfully to economic growth, job creation and improved mobility for all residents of Gauteng,” said the Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela.
