The Gautrain system will continue to operate under a Public-Private Partnership (PPP) model, once its current concession agreement comes to an end later this month.
The Gautrain Management Agency (GMA) announced on Wednesday, 4 March 2026, that it had identified a preferential bidder to operate, maintain, refurbish, upgrade, and modernise the rail service for the next 15 years.
It existing concession agreement with the Bombela Concession Company (BCC) will end on 27 March 2026.
The concession ran for 19 and a half years, during which time the BCC was responsible for the design, construction, operation, and maintenance of the Gautrain, which is currently valued at R45 billion.
It was also partially responsible for funding the Gautrain.
The Gautrain Rapid Rail Link itself was developed and implemented as a PPP under Treasury Regulation 16 of the Public Finance Management Act (PFMA).
The Gauteng provincial government is the public partner and primary promoter of the project.
In preparation for the new concession, the GMA has introduced a contractual holdover arrangement, which will start on 28 March 2026.
This will allow the BCC to continue managing the system for another six months until negotiations are concluded.
Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela, stated that the priority during the transition is to ensure that the service continues to operate while expanding the role of the private sector.
“Our priority is to safeguard service continuity, strengthen private-sector participation, and ensure that the Gautrain continues to contribute meaningfully to economic growth, job creation and improved mobility for all residents of Gauteng,” said Diale-Tlabela.
The GMA highlighted Finance Minister Enoch Godongwana’s recent National Budget Speech, where he emphasized that public institutions should increasingly consider PPPs as a viable alternative model for delivery.
It further explained that the post-2026 concession marks an important step for the Gautrain to realise enhance economic and operational benefits for the province and its residents.
This comes at a time when the Gautrain is set to undergo a major expansion that will add new lines, expanding the service to new areas in Soweto, Mamelodi, Springs, Atteridgeville, Fourways, and the West Rand.
Gautrain expansion
Back in October 2023, then-GMA CEO William Dachs announced that the Gautrain would receive a R120-billion expansion to expand the service’s reach across the province.
The project will add roughly 150km of new tracks, almost tripling the coverage of Gautrain’s existing 80km network.
Gauteng Premier Panyasa Lesufi added that the multi-billion rand investment will create more than 125,000 construction jobs and generate additional growth in property, retail, and logistics.
However, the project has not been without criticism, as groups like the AA argue that the Gautrain is a massive waste of money.
It has labelled the Gautrain a white elephant in the past, highlighting that it has still not reached the 130,000 daily passengers it set as its target when the service launched over a decade ago.
It also receives billions of rands per year in the form of the patronage guarantee, which is an annual taxpayer-funded subsidy paid to the Gautrain to offset its low commuter numbers.
The Gauteng provincial government paid the Gautrain R3.1 billion in subsidies during the 2025 financial year, and the total subsidies paid since its launch are estimated to be over R18 billion.
The AA claims that the resources would be put to better use establishing a provincial-level bus system, improving taxi ranks, and repairing the existing Metrorail and Prasa infrastructure.
The GMA has defended the service, arguing that it is taking steps to address concerns over its high prices.
In 2025, it introduced the KlevaMova initiative, which offers a 50% discount on fares for select low-income groups, including students, pensioners, disabled persons, and households with a net income of less than R350,000 per annum.
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