PRASA To Receive R20 Billion For The 2023/24 Financial Year
The Minister of Transport Ms Sindisiwe Chikunga, made this statement during her speech delivered on 17 May, during the Transport Budget Vote In The National Assembly.
“Our work to rebuild commuter rail continues in earnest. In the last financial year, we committed to recovering 10 priority corridors. I am pleased that we not only achieved the target, but we exceeded it by recovering 13 corridors.
This financial year we plan to recover 16 priority corridors total, eight (8) in Gauteng, four (4) in KwaZulu-Natal and four (4) in the Western Cape and these priority corridors are: The full recovery of the Central line in Cape Town remains our top-most priority.
The cooperation between the National and the Western Cape Provincial Departments of Human Settlement, the HDA and the City of Cape Town to relocate the illegal settlements on the rail reserve, will enable us to achieve full recovery of the line.
For the 2023/24 financial year, we will transfer R20.5 billion to the Passenger Rail Agency of South Africa. These funds will mainly focus towards implementing PRASA’s strategic corridor recovery programme, signalling and continuing with its rolling stock renewal drive. Capital expenditure is expected to increase from R12.5 billion to R12.9. The portion of the transfers to the agency for operational expenditure increases from R7.2 billion R7.5 billion in 2023/24.”
In relation to the National Railway Policy:
“In his State of the Nation Address, President Cyril Ramaphosa indicated that the National Rail Policy will guide the modernisation and reform of the rail sector, providing, among other things, for third-party access to our rail network.
The National Rail Policy pronounced that the Interim Rail Economic Regulatory Capacity (IRERC) will guide the strategic direction for implementing economic regulation in the rail sector. In addition, the National Rail Policy mentions IRERC as a model that will be utilized as an interim arrangement for rail economic regulation within its mandate until the Transport Economic Regulator is established.
I must announce that the Department has commenced the process to develop the urgently required National Rail Master Plan; which will further assist in the identification of network constraints, and opportunities, including infrastructure improvements and rail network expansions required to assist in creating a conducive environment for private and public sector participation.”
Regarding the Transport Economic Regulation Bill
“As we continue to transform the face of our economy, the transport sector cannot be left behind as we remain focused on transformation and greater participation to enable the development and growth of a truly inclusive transport sector. It is for the purposes of effective transformation of the sector that we have formulated the Transport Economic Regulation Bill. This Bill when passed will ensure a level playing field in the sector and ensure regulation of monopolies towards fair pricing and easier access to new entrants among other aims.”
Access the full speech here: ( see attachment)