South Africa seeking funds for massive railway upgrade

South Africa's national rail network is set to undergo a major recapitalization program after the government green-lighted the multi-billion rand (multi-hundred million US dollar) investment.

The project includes the acquisition of over 7,000 new trains for both passenger and freight service networks, and the creation of over 65,000 jobs. In total, around 136 billion rand or 15.8 billion US dollars will be spent on the upgrade to the country's aging railway system.

Significant upgrades to both passenger and freight services form the bulk of the project's goals will include the very latest railway rolling stock and bring the rail system into line with modern international standards. With the average age of the current commuter coaches as old as 40 years, the entire fleet is due for a much needed replacement.

The project is anticipated to revitalize South Africa's railway sector in addition to providing vastly improved public transportation in the country.

"It will in fact have so profound an effect on the South African landscape in almost every way, that it is wonderful to contemplate. It will mean that South African cities will become, if it's done the way it should be done, cities in which public transport will be a practical reality," said Robin Carlisle, Minister of Transport and Public Works in South Africa's Western Cape province.

As part of its strategic objective through recapitalization, the government will require that any preferred bidder will have to develop a number of related programs locally.

Lucky Montana, the Chief Executive Officer of the Passenger Rail Agency of South Africa (PRASA), said that one of major issues PRASA is promoting is investment in local industry, insisting on 65 percent local content in the building of the trains and railway infrastructure materials.