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Cape Town tables business plan to take over PRASA operations

10th November 2025

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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Cape Town Mayor Geordin Hill-Lewis says Cape Town aims to be the first South African city to take over the management of its passenger rail system.

This follows the tabling of a Rail Business Plan, with the council set to consider its adoption on December 4.

The business plan weights the financial, operational and strategic viability of devolving passenger rail services to the city.

Adopting the plan, however, does not imply the start of the devolution process, as the ultimate say-so remains within the ambit of the national Department of Transport.

The business plan provides a roadmap on how Cape Town’s passenger rail system can be restored and expanded to serve as the backbone of a revitalised city-wide public transport system.

The plan explores nine devolution scenarios, identifying the three most viable options.

These options include the devolution of rail services, associated assets and infrastructure to the city, with the private sector to provide services on a contractual or concession basis.

The plan rules out what has been determined as less viable devolution scenarios, such as the option where the infrastructure remains owned and managed by the current owner, the Passenger Rail Agency of South Africa (PRASA), and where the city operates the rail service rather than the private sector.

The plan also notes that devolution is only possible with funding from the national fiscus, with no room within the rates base of the City of Cape Town (CoCT) for the cross-subsidisation of the rail service.

The city must also have authority over fare-setting, access to long-term national grant-funding, and the ability to generate local revenue through public-private partnerships and commercialisation.

The city believes this to be in line with its constitutional mandate to provide integrated transport planning across different public transport modes.

“With this business plan, Cape Town is now front of the queue to be South Africa’s first city to take over local passenger rail, in line with the Constitution and National White Paper on Rail,” says Hill-Lewis.

“We will now seek the city council’s go-ahead to engage national government on the devolution of passenger rail and funding to run a high-quality, integrated public transport system in the Cape Town metro area.

“Capetonians urgently need an expanded, affordable and reliable rail service that is integrated with other forms of transport via one ticketing system,” adds Hill-Lewis.

“Devolution is one of the critical first steps in this long-term vision to massively scale up passenger numbers, train sets and new routes, upgrade stations, and develop surrounding precincts with affordable housing over the next two decades.”

Hill-Lewis also calls on Transport Minister Barbara Creecy to “make good on her promises to finalise the draft National Rail Bill and [Rail] Masterplan before the end of the year, while ensuring that local government is properly consulted as the key implementing partner”.

The Bill, Masterplan and long-delayed National Devolution Strategy are vital policy pillars for devolving passenger rail to capable metros, in line with the National White Paper on Rail, says Hill-Lewis.

“While national efforts to restore passenger rail operations are ongoing, this does not remove the need to advance devolution in line with national policy and the imperative for locally responsive service delivery,” adds CoCT Urban Mobility MMC Rob Quintas.

“To ensure a viable devolution handover, it is necessary for PRASA and national government to restore the failing rail network and operations to the 2012 levels of 620 000 daily passenger trips, which existed prior to the steady collapse of rail over the last decade.

“The city would then work to further expand the rail service. In most scenarios this includes a new Blue Downs rail link and potentially further expansion, dependent on the national fiscus.”

 

 

Edited by Creamer Media Reporter

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