Gautrain to continue under PPP model as new operator talks advance

The Gautrain will continue operating under a public-private partnership (PPP) model beyond March 2026, as the Gauteng government moves to appoint a new private operator for the next phase of the rail system.

The current concession agreement with Bombela Concession Company is set to expire on 27 March 2026, ending a 19½-year contract covering the design, construction, financing, operation and maintenance of the system.

The Gauteng Provincial Government has identified a preferred bidder for the next 15-year concession, with negotiations at an advanced stage.

To ensure uninterrupted service, a six-month holdover period will take effect from 28 March 2026, allowing the current operator to continue running the system under existing terms.

The Gautrain, a state-owned asset valued at about R45 billion, will by the end of the current concession have fully repaid its initial development costs.

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The provincial government said retaining the PPP model would support operational continuity and ongoing private sector participation in one of South Africa’s largest infrastructure projects.

Finance minister Enoch Godongwana recently reiterated the role of PPPs as an alternative model for delivering public infrastructure.

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Alongside the transition, the Gautrain Management Agency said it would continue efforts to improve affordability.

Its KlevaMova initiative, launched in May 2025, offers a 50% fare discount to qualifying low-income commuters, including pensioners, students and Sassa grant recipients.

The system will also remain part of broader provincial transport plans, including expanding access to services in townships and underserved areas.

The focus is on maintaining service reliability while strengthening the system’s contribution to economic activity and mobility in the province, said Gauteng MEC for Roads and Transport Kedibone Diale-Tlabela in a statement.

*Likho Mbuka is a Moneyweb Intern