South Africa Advances Plans for Johannesburg–Durban High-Speed Rail

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The South African government is preparing to issue a request for proposals (RFP) for high-speed rail corridors, including a line between Johannesburg and eThekwini (Durban). The RFP step signals movement beyond planning and into the procurement stage of the project. Nearly 30 companies have already expressed interest in participating in the development of high-speed rail corridors after an earlier request for information. The proposed corridors include not only a Durban–Johannesburg connection, but also a route from Johannesburg to Musina in the northern part of the country.

The Gautrain Rapid Rail Link (Gautrain) is a modern rapid rail network in South Africa’s Gauteng province, originally built between 2007 and 2010 and fully opened by 2012. It connects major economic hubs — including Johannesburg, Pretoria, Sandton, and OR Tambo International Airport — via about 80 km of track and 10 stations, supported by feeder bus routes. After a few years of operation, the Gautrain began exceeding its original passenger forecasts. Ridership grew so quickly that available trains and infrastructure became stretched, especially at peak times, meaning demand was outstripping supply. The system needed more rolling stock (trains) and supporting infrastructure to maintain comfortable service and accommodate future growth. The existing operational concession — the financing and management agreement with the original private operator — was set to end in March 2026. Given this timing and the fact that the operator would not take on large new debt, the Development Bank of Southern Africa (DBSA) was appointed as Mandated Lead Arranger (MLA) to develop a new funding solution for the additional trains and infrastructure.

To make the expansion financially feasible, the DBSA structured a long-dated financing facility of about ZAR 3.5 billion (US$217 million) through a special purpose vehicle (SPV). This approach allowed the additional rolling stock and infrastructure to be funded over 15 years, instead of within the original concession term. By doing so, the project avoided putting undue financial strain on the existing operator and enabled a smoother funding transition across concession periods. In addition to financing rolling stock, the DBSA secured a project preparation grant from the Infrastructure Investment Programme for South Africa (IIPSA) to help cover transaction costs and reimburse bidders for certain design expenses, encouraging faster progress and better proposals. The DBSA is also supporting planning for further phases of Gautrain expansion, which aim to eventually extend the network into new suburbs and locations within Gauteng beyond the original routes.

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