Gautrain vs car travel shootout
A new study reveals that, financially, the Gautrain has been an economic success -while also making transportation into the country’s economic hub far more efficient.
The KPMG Gautrain economic impact report 2015 showed that the Gautrain
construction generated a variety of positive economic spin-offs from the R26.5 billion invested in the project.
The project created 121,800 jobs and contributed R20 billion total gross domestic product to the provincial economy over a six year period, from 2008.
The Gautrain increased government revenue by an estimated R5 billion.
The report also pointed out that for every R1 in new investment into the economy by the rail project, an additional 73 cents was added to the Gauteng economy, and 18 cents to national government revenue.
Investment into the expansion of the Gautrain implied an additional five jobs per R1 million spent will be sustained during construction.
Future expansion would also have a poverty alleviating impact for the province in that 17% of additional household income generated would flow to low-income household, KPMG said.
The report found that the Gautrain’s operations yield a variety of positive economic spin-offs from R1.6 billion of revenue generated in 2013/14 including the contribution to provincial GDP, while also sustaining about 6,000 jobs in Gauteng in 2013.
The Gautrain also increased government revenue by around R400 million a year, while approximately R200 million was received by lower-income households.
For every R1 spent on operating the Gautrain, the provincial economy gained 96 cents, while the national economy received 24 cents.
More pertinent for the average South African, the report highlighted the improved quality of life created by the system by reducing road congestion.
The Gautrain cut vehicle road trips by 21,300 per day, resulting in fewer road accidents, while also ensuring time savings for commuters and increased productivity levels.
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