French multinational rail group Alstom has been appointed as a shareholder and strategic industrial partner in Sihamba Sonke Mobility, the consortium that will operate and maintain the Gautrain under a new 15-year concession. The concession, which runs from 2026 to 2041, was awarded after Sihamba Sonke Mobility reached financial close on September 28. As part of the deal, Alstom will undertake work worth €800m over the 15-year period.
Alstom's scope of work includes manufacturing eight additional four-car trains, which will increase the Gautrain fleet from 24 to 32 trains. The trains will be built at Alstom's Ubunye plant in Gauteng. The company will also install a new signalling system, upgrade communications, refurbish and modernise existing trains, and provide long-term maintenance. However, Alstom has not disclosed how the €800m will be split between the different components.
The additional trains are intended to increase capacity and allow more frequent services on the Gautrain. The programme is focused on the existing Gautrain network and does not include new routes or stations. Any extensions to the network will be handled through separate planning and procurement processes led by the Gauteng provincial government and the Gautrain Management Agency.
Sihamba Sonke Mobility, the consortium appointed to operate and maintain the Gautrain, comprises several partners, including AIIM-Motseng, RATP Dev, GIBB-Crede, AIH Connect, and SSM InvestCo. RATP Dev, the French public transport operator that has operated the Gautrain for more than 15 years, is part of the consortium. Alstom has been involved in maintaining the Gautrain since its launch.
The new concession marks a change in the private company responsible for running the Gautrain after the end of Bombela Concession Company's 19-year agreement with the Gauteng provincial government. Bombela was appointed in 2006 to design, build, partly finance, operate, and maintain the Gautrain, which opened in 2010 ahead of the Fifa World Cup.
The Gautrain has become a significant part of Gauteng's transport infrastructure, connecting Johannesburg, Pretoria, and OR Tambo International Airport, with buses extending the network beyond the rail stations. The 80km rail network has 10 stations and had recorded more than 216-million passenger trips by June, according to the Gautrain Management Agency.
The consortium's investment partner, AIIM-Motseng, has a specific ownership structure, with AIIM holding 51% of the joint venture through its Ideas Managed Fund, and Motseng holding 49%. Additionally, AIH Connect is wholly owned by AWCA Investment Holdings and is 100% black women-owned and managed, while SSM InvestCo is a broad-based ownership vehicle intended to give Gauteng residents a direct equity stake in the concession company.
Key points
- Alstom's €800m deal includes manufacturing new trains and upgrading the signalling system.
- The new concession will increase passenger capacity and train frequency on the Gautrain.
- The Gautrain network has recorded over 216 million passenger trips since its launch.
