• $3.7B to upgrade trains and signaling systems via PRASA

• 600 new trains planned; 275 delivered via Gibela-Alstom JV

• Passenger trips expected to triple to 186M by 2027/28

South Africa has proposed a $3.7 billion budget to modernize its passenger railway system over the next three years. The funds will be directed to the Passenger Rail Agency of South Africa (PRASA) to renew suburban train fleets and upgrade aging signaling infrastructure.

Finance Minister Enoch Godongwana presented the proposal to Parliament on May 21, 2025. A significant portion, approximately $1.02 billion, is allocated to the replacement of rolling stock. The program, implemented by the Gibela consortium (a joint venture with French firm Alstom), involves local assembly of X'Trapolis Mega trains at the Dunnottar facility. To date, 275 of the planned 600 trains have been delivered.

Simultaneously, about $690 million is earmarked for the overhaul of South Africa’s signaling systems. This includes the replacement of electromechanical equipment, much of it installed between the 1930s and 1960s, with modern electronic systems. The upgrades are being deployed in key hubs across Gauteng, KwaZulu-Natal, and the Western Cape, and include fiber optics, electronic locking, and GSM-R communication systems aimed at improving safety and punctuality.

The government targets an increase in annual passenger trips via PRASA from 60 million in 2024/25 to 186 million by 2027/28. The goal is to expand access to affordable public transportation in a country where car ownership remains out of reach for many.

Despite the ambitious plan, implementation faces several obstacles. Widespread vandalism, especially cable theft, continues to hinder progress. Illegal occupation of rail infrastructure also delays rehabilitation efforts. Moreover, although the new trains are capable of reaching speeds of 120 km/h, many currently operate below 40 km/h due to ongoing signaling system delays.

The government views the investment as critical to reviving the national rail service and restoring commuter confidence, while easing transport costs for millions of South Africans.