BUSINESS NEWS - The refurbishment of seven railway stations along the KuGompo City (East London) corridor could help reduce transport costs for workers and support economic activity in the Eastern Cape.
Transport Minister Barbara Creecy officially reopened the stations this week following a R115m investment by the Passenger Rail Agency of South Africa (Prasa).
The Motor Industry Staff Association (Misa) has welcomed the upgrades, saying the restoration of reliable, affordable passenger rail services could benefit thousands of employees, including those working in vehicle dealerships, workshops, service centres and other automotive businesses.
According to Martlé Keyter, Misa’s chief executive officer for operations, many employees depend on public transport to get to work and are forced to use more expensive alternatives when railway services are unavailable.
She said reliable train services could help ease pressure on household budgets, improve punctuality, reduce absenteeism and support workplace productivity.
The association also believes investment in passenger and freight rail infrastructure could have wider economic benefits, particularly for the retail motor industry.
The decline of freight rail services has resulted in more goods being transported by road, contributing to congestion, road infrastructure damage and higher logistics costs.
Keyter said an efficient railway network could reduce pressure on roads and help businesses manage supply chain costs. She added that the retail motor industry depended on sustainable businesses and consumers having sufficient disposable income to purchase and maintain vehicles.
Rising transport and logistics costs could therefore affect both businesses and employment opportunities.
Investment creates local employment opportunities
The railway refurbishment project also created 171 jobs and provided opportunities for 27 local small businesses and five co-operatives, which were awarded three-year maintenance contracts.
Passenger numbers in the Eastern Cape reportedly increased from about 630 000 in 2024/25 to more than 1.2 million in 2025/26.
While welcoming the improvements, Misa has stressed the importance of protecting refurbished railway infrastructure against vandalism, theft and neglect. Keyter said government should prioritise railway corridors linking communities and major employment centres to ensure workers have access to safe, affordable and reliable transport.
She believes sustained investment in rail infrastructure could reduce household expenses, protect livelihoods and support economic growth, including within the retail motor industry.
Misa represents more than 80 000 members across the country.
‘We bring you the latest Garden Route, Hessequa, Karoo news’
