Alderman Geordin Hill-Lewis
Mayor of Cape Town
The City of Cape Town plans to finalise business plans by mid-2025 for managing its passenger rail services, following the City Council’s approval of the Rail Feasibility Study. The study recommends three ownership models for Cape Town’s passenger rail, affirming the City’s role in ensuring an efficient rail service in line with its mandate for integrated public transportation.
Mayor Endorses Devolution Benefits:
In his Council address, Mayor Geordin Hill-Lewis highlighted the potential economic growth and benefits for lower-income households, stating, “Taking charge of Metrorail is especially important for lower-income households, who would save an estimated R932m a year if trains were working as they should.”
Mayor Hill-Lewis outlined plans to significantly increase passenger numbers, introduce new train sets and routes, and upgrade stations and surrounding areas with affordable housing over the next two decades. The City will oversee Prasa’s progress through a joint committee, assessing performance against the SLP to revitalize stations, increase train sets, reopen service lines, and improve passenger volumes and train operations.
The SLP presents Prasa’s commitments, while the City will support passenger rail with necessary municipal services, promote transit-oriented development along rail corridors, and expedite relevant permits. Business plans for three devolution scenarios, grounded in international models, will be developed:
Full City ownership and operation, integrating Prasa personnel
Asset ownership and network concession, with the concessionaire employing Prasa staff
Procurement of an integrated solution through a comprehensive concession
A cost-benefit analysis indicates a nominal 30-year cost of R123 billion, requiring national subsidies and private investment to be financially sustainable. Detailed business plans will explore financial, operational, and strategic feasibility, encompassing funding strategies, financial models, and operational plans. Expansion plans aim to upgrade infrastructure and expand the network to accommodate Cape Town’s growing population, particularly high-demand routes and underserved areas.