Johannesburg: The Passenger Rail Agency of South Africa (PRASA) has committed R21.1 billion in capital expenditure against an allocated budget of R11.6 billion for the 2024/25 financial year.
According to South African Government News Agency, PRASA Group Chief Executive Officer (GCEO) Hishaam Emeran stated that this expenditure underscores the agency’s commitment to fleet renewal, infrastructure recovery, and system modernisation. Emeran emphasized that the strategic investment in the rail infrastructure not only accelerated the agency’s recovery and modernisation programme, but also generated 12,988 direct jobs. Furthermore, this investment led to an additional 71,730 job opportunities, contributing significantly to economic stimulation, Emeran highlighted during a media briefing on the 2024/25 Group Annual Report in Johannesburg.
Emeran noted that the full utilization of PRASA’s capital allocation marks a departure from a history of underspending and slow project execution. Starting from 1 April 2025, PRASA’s subsidiary, Intersite Asset Investments, will focus on diversifying revenue streams and driving commercialisation to achieve long-term financial sustainability. The commercial income for 2024/25 reached R708 million, exceeding the budget by 5%.
Key achievements include developments like the Cape Town Station Mixed-Use Development, The Lab on Park Student Accommodation in Braamfontein, Goodwood Social Housing in Cape Town, and Dieprivier affordable housing. Emeran pointed out that PRASA’s Transit Oriented Development strategy will continue to drive growth, with 24 out of 26 development leases finalized, valued at approximately R7.8 billion. Notably, Intersite is advancing renewable energy integration, with a 1 MW photovoltaic rooftop plant at Durban Station currently under construction.
The Group Annual Report revealed an overall performance level of 93%, an improvement from the previous year’s 87%. PRASA successfully transported 77 million passengers across 35 operational corridors, with services accessible through 313 rehabilitated stations.
Looking ahead, PRASA plans to optimize services to enhance commuter experiences. Priorities will include expanding train services, upgrading track quality, and installing modern signalling systems to reduce waiting times. The agency also aims to reopen metro stations, introduce modernized ticketing solutions, and expand its electric multiple unit fleet, with the delivery of Train 300 marking a significant milestone.
Emeran concluded by stating that this year has been pivotal for PRASA, as the agency not only fulfilled its promises but exceeded them.