With regard to public transport, our strategy aims to accelerate the improvement of public transport by establishing integrated rapid public transport networks. We are engaging in a comprehensive rail upgrade that looks at placing rail at the centre of freight and commuter movement.
Regarding the Moloto Corridor between Gauteng and Mpumalanga, this is important because we have witnessed several horrific road crashes on this stretch of road. Clearly a long-term solution is required for the Moloto Corridor, and we believe that an extension of the rail system from Pretoria, at Hatfield, to the former KwaNdebele through the Moloto road is an absolute necessity. At the moment, we are subsidising commuters travelling on this route to the value of R470 million per annum but due to the long travelling hours road crashes continue to be the trend. So, within the next three weeks a steering committee that will include the national Department of Transport, Gauteng and Mpumalanga provinces will be meeting the affected municipalities and other sister departments to deliberate on a financial feasibility study for the rail project for Moloto.
As of 1 April 2011, government will be spending R30,2 billion over the next three years on rail upgrades across the country, with R19,5 billion earmarked for capital spending to upgrade the existing infrastructure.
The Department of Transport, through the Passenger Rail Agency of South Africa, Prasa, is investing in new rail rolling stock at an estimated R97 billion. Through this programme, Prasa will be able to procure new rolling stock and locomotives for the Metrorail service and long-distance rail services. This will create opportunities for business and stimulate the rail engineering industry. We have been to Koedoespoort, and there is one here in Cape Town and others in the Eastern Cape and KwaZulu-Natal. These will create opportunities for business, stimulate the rail engineering industry and related suppliers in the value chain, as well as contribute to our industrial policy objectives.
We say, working together we can do more. [Applause.]