The Gauteng Department of Roads and Transport and the Gautrain Management Agency (GMA) have confirmed that the Gautrain system will continue to operate under the public-private partnership (PPP) model as it advances into the next phase of its operational journey.

As the current concession agreement approaches its conclusion, the parties have noted that the process of appointing a new private partner to operate, maintain, refurbish, upgrade and modernise the Gautrain system for the next 15 years is at an advanced stage of negotiation.

The Gautrain Rapid Rail Link was developed and implemented as a PPP in terms of Treasury Regulation 16 of the Public Finance Management Act (PFMA).

The Gauteng provincial government (GPG) is the public partner and primary promoter of the project.

The private partner, the Bombela Concession Company (BCC), currently holds a 19-and-a-half-year concession for the design, construction, partial financing, operation and maintenance of the Gautrain system.

The concession agreement between the GPG and BCC will come to an end on March 27.

As one of South Africa’s largest and most successful PPP projects, the parties note that the Gautrain will continue operating under the PPP model beyond this date, ensuring stability, continuity and sustained private-sector participation.

They note that, by March 27, the costs associated with establishing the Gautrain project will have been fully paid off.

“This important step positions the post-2026 Gautrain project to realise enhanced economic and operational benefits for the province and its residents.”

The Gautrain, a State-owned asset, is valued at about R45-billion. They note that the preferred bidder has been identified for the new concession agreement.

“During the negotiation period, the GMA has triggered a contractual holdover arrangement as of March 28, that will allow the current operator, Bombela Operating Company (BOC), to continue operating the Gautrain system as per the existing concession agreement which makes provision for a holdover period of six months, thereby ensuring uninterrupted service to passengers,” the parties note.

The PPP model remains central to Gautrain’s operational framework.

In his recent National Budget Speech, Finance Minister Enoch Godongwana emphasised that public institutions should increasingly consider PPPs as a viable alternative model for delivery.

In parallel with ensuring operational continuity, the parties note that Gautrain remains committed to making public transport more accessible and affordable.

Among its initiatives is KlevaMova, which provides a 50% discount on train fares to qualifying low-income earners, scholars, pensioners and South African Social Security Agency (SASSA) disability grant recipients.

Since its launch in May 2025, they note that thousands of eligible passengers have registered for KlevaMova.

Students under the age of 25 also benefit from a 50% discount through the Student Product, which was introduced in 2022.

The parties explain that the GMA continues to support the GPG 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,” says Gauteng Roads and Transport MEC Kedibone Diale-Tlabela.