PRASA Rejects Service Level Agreement with Cape Town

The Passenger Rail Agency of South Africa (PRASA) has declined to sign a Service Level Agreement (SLA) with Cape Town’s local government, which has sparked discontent among city leaders and commuters alike. PRASA’s unwillingness to commit to improving the level and quality of passenger rail services in Cape Town has further highlighted the need for rail service devolution.

City of Cape Town Initiates Dispute Resolution Processes

The City of Cape Town has initiated formal dispute resolution processes under the Intergovernmental Dispute Resolution framework in response to PRASA’s refusal to comply with the legal requirements outlined in section 11(1)(c) of the National Land Transport Act. The SLA would have served as the foundation for the devolution of Cape Town’s passenger rail service, which would ultimately benefit its residents.

Rail Feasibility Study Reveals Benefits of Efficient Passenger Rail Service

According to the Rail Feasibility Study, an efficient passenger rail service system in Cape Town could save lower-income households up to R932 million annually, while the local economy would benefit from an additional R11 billion each year, and over 51,000 jobs would be sustained. These figures underscore the importance of PRASA’s commitment to improving rail services and working with the local government.

PRASA’s Non-Binding Memorandum of Understanding Deemed Unacceptable

PRASA’s proposal for a non-binding Memorandum of Understanding (MoU) has been deemed unacceptable by the City of Cape Town. A similar MoU signed in 2015 failed to bring about the desired accountability from PRASA and the National Government. Mayoral Committee Member for Urban Mobility, Councillor Rob Quintas, expressed disappointment in PRASA’s change in position, given their earlier willingness to discuss an SLA.

Hope for Rail Service Devolution in Cape Town

The National Transport Department’s Director General recently committed to gazetting a Devolution Strategy in 2023, which could enable capable metros like Cape Town to manage their passenger rail systems successfully. Mayor Geordin Hill-Lewis eagerly anticipates a devolution commitment from President Cyril Ramaphosa, given the city’s urgent need for a functional rail system. A letter dated 12 June was sent to President Ramaphosa inviting him to form a joint working committee with the City of Cape Town to expedite the devolution of passenger rail services.

Ongoing Dispute Highlights Need for Unified Approach

The ongoing dispute between PRASA and the City of Cape Town emphasizes the need for a unified approach to improving rail services in the city. While the city awaits a direct devolution commitment from the President, residents remain hopeful for a more efficient, safe, and affordable rail system in the near future.