1

Railway Safety RegulatorStrategic Plan:

2007/8 to 2009/10

Presentation to the Portfolio Committee on Transport

28 March 2007

2

Presentation Outline Strategic Challenges Service Delivery

Environment Key Strategic Thrusts• Strengthening the

regulatory framework.• Effective Safety Compliance

Regime• Monitoring and evaluation• Stakeholder management and

operator support• Sound Management of the RSR

Enterprise• Sustainability of the RSR

Budget Information Conclusion

3

Strategic Challenges

• Establish Institutional Capacity to undertake full mandate of the RSR

• Develop appropriate responses to key initiatives within the Rail sector

• Develop an approach to RSR’s role with respect to security

• Develop appropriate response to the State of Railway Safety

• Railway Security• Regional Harmonisation of Railway operations

4

Strategic Priorities• Consolidating and strengthening the RSR’s regulatory

framework.

• Developing an effective safety compliance regime.

• Monitoring and evaluation of safety performance.

• Stakeholder Partnerships to improve safety.

• Institutional Capacity and Management

5

Service Delivery EnvironmentState of Railway Safety

6

Safety Permits

• 233 Safety Permits issued to date– These are valid for 3 years

7

Market Segment Breakdown

8

Operational Sites Per Province

9

% Operational Sites Per Province

10

Cat 2003/4 2004/5 2005/6

A 29% 26% 30%

J 35% 40% 34%

The predominant categories are A (collisions and derailments) and J (security related occurrences).

2090

142 163

614

813

11823

149

406

2344

67 140

500

1000

1500

2000

2500

Incidents: 2005/6

11

Collisions & DerailmentsCATEGORY A: COLLISIONS & DERAILMENTS

68 75

412

1828

1436

1994

0

500

1000

1500

2000

2500

2003/2004 2004/2005 2005/2006

Metrorail

Spoornet

12

Security-Related OccurencesCATEGORY J: SECURITY-RELATED OCCURENCES

1007 968

1240

1409

1767

1588

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2003/2004 2004/2005 2005/2006

Metrorail

Spoornet

13

Spoornet Incident Costs

• The total cost for 2005/6 is 700m

356 364

504

693 700

0

100

200

300

400

500

600

700

800

2001/02 2002/03 2003/04 2004/05 2005/06

YEARS

RA

ND

S (

MIL

LIO

NS

)

14

MetroRail Incident CostsMETRORAIL INCIDENT COSTS

28

42 43

156

0

20

40

60

80

100

120

140

160

180

2002/2003 2003/2004 2004/2005 2005/2006

Financial Year

(R m

illi

on

)

15

MetroRail: FatalitiesFatalities

277

256

251

235

240

245

250

255

260

265

270

275

280

2003/4 2004/5 2005/6

Financial Year

Fatalities

16

Conclusions: Occurrence DataConclusions: Occurrence Data State of railway safety and security in the country is not

improving.

Costs associated with incidents are dramatically increasing and adversely impact on the cost of doing business.

Risk profile of major operators is unacceptably high and has a bearing on costs associated with managing risk.

General negative perception about the state of the rail sector in the country.

Poor human factor management practices (…in particular, safety critical positions) and lack of safety culture within organisations.

Poor state of the rail infrastructure and outdated technology.

17

Strengthening the Regulatory Framework

• Amendment of the RSR Act. June 2008

• Develop the following Regulations. Permit Fee Structure Regulations: March 2008 Dangerous Goods Regulations: March 2008 Level Crossing Regulations: March 2009 Amended SMS Regulations: March 2009 Construction Regulations: March 2009 Compliance Regulations: March 2009

18

Strengthening the Regulatory Framework

• Develop the following Standards.

SANS 3000-2(General Technical) September 2007 Standards (Dangerous Goods by Rail) September 2007 SANS 3000-2-2

(Track, Civil & electrical infrastructure): March 2008 SANS 300-2-3 (Rolling Stock) March 2009 SANS 3000 –xxx (Occurrence Investigations): March 2008 SANS 3000-3 (General): March 2009 SANS 3000-1 (Amendment) March 2008 SANS 3000-2-4 TO 6 March 2010

19

Strengthening the Regulatory Framework

• Safety Permits policy and procedures. May 2007

• Issue new Safety Permits: 50% by March 2008 & 100% by March 2009

• Implement Permit Fee Structure March 2009

• Develop a guiding framework/Protocol on the RSR’s supportive role on security

May 2007

20

Strengthening the Regulatory Framework

• Develop interventions aimed at reducing high levels of Human Tragedy in railways. Interventions to focus on the following aspects:

Level Crossings Crime and Security Trespassing and Informal settlements along the rail reserve:

March 2009.

21

Effective Safety Compliance Regime

• Safety Audits primarily focussing on the High Risk category:

March 2008 (Per audit schedule)

• Conduct Inspections: March 2008. Timeframe informed by audit findings, occurrence investigation

findings, information from various sources and inspection schedule.

• Conduct Occurrence Investigations March 2008. Depending on occurrences reported and the prioritisation thereof.

• Compliance Enforcement through issuing notices, directives and suspension/revocation of permits.

March 2008. Dependent on notices and directives issued.

22

Monitoring and Evaluation

• Monitor implementation of corrective actions by operators based on RSR’s audit, inspection and Occurrence investigation findings:

March 2008. Dependent on directives issued.

• State of Safety Reports based on railway occurrence data as per SANS 3000-1.

Annual State of Safety Report (2006/07) by October 2007.

• Develop an effective tool/system to improve data capturing, monitoring, safety analysis and ensure integrity of the information at RSR’s disposal.

March 2008. Dependent on notices and directives issued.

23

Monitoring and Evaluation

• Ongoing monitoring of the Gautrain Rapid Rail Project in line with the RSR’s SMS requirements.

March 2010

• Develop a Safety Performance Management tool which shall be used to develop safety performance agreements between RSR and 2 big operators (SARCC and Spoornet).

October 2007.

24

Stakeholder Management and Operator Support

• Conclude MOU’s and Cooperative Agreements with the following state agencies;

National Nuclear Regulator: April 2007 Dept Minerals and Energy: September 2007 South African police Services: September 2007

• Operator Liaison Forums ensure ongoing cooperation and support for major operators (Spoornet/SARCC) on key safety issues / strategic issues.

Quarterly

• Engage in SADC forum to promote the harmonisation of the railway safety regulatory regime.

March 2008

25

Sound Management of the RSR Enterprise

• Performance Agreement with Minister of Transport April 2007

• Review and develop the following policies Human Resources Management Policies: May 2007 Financial Management Policies, procedures and related controls: May 2007 Procurement Management Policy: May 2007

• Effective Budget Planning and Monitoring. Compliance with Budget cycle

• Develop relevant reports in line with the requirements of the RSR Act, PFMA, Shareholder Compact and any other relevant requirements.

As per reporting schedules

26

Sound Management of the RSR Enterprise

• Develop an RSR wide Risk Profile April 2007

• Development and deployment of the National Information and monitoring System

September 2008.

• Review and develop a Communication Strategy and Plan for the RSR.

April 2007

27

Sustainability of the RSR • Amend the Act to make provision for revenue

generation by the RSR March 2008

• Implement Permit Fee Structure: March 2008

• Develop a Revenue Generation Strategy for the RSR July 2007

• Develop a sound business case for the adjustment of the RSR’s budget as well as the request for additional funding over the MTEF.

July 2007. As per budget cycle

28

SUMMARY OF REVENUE FOR THE MTEF 2007/08 TO 2009/10

  Apr 07 – Mar 08 Apr 08 - Mar 09 Apr 09 - Mar 2010

ORIGINALLY REQUESTED FROM TREASURY

67,533,088 60,258,200 62,042,571

APPROVED ALLOCATION    

Transfers - Baseline Allocation 22,260,000 23,361,000 24,523,000

Transfers - Additional funds 5,000,000 5,000,000 5,000,000

       

TOTAL ALLOCATION 27,260,000 28,361,000 29,523,000

Interest 150,000 162,000 175,000

TOTAL REVENUE 27,410,000 28,523,000 29,698,000

29

BUDGET SUMMARY: 2007/08 TO 2009/10

SUMMARY OF REVENUE AND EXPENDITURE

DESCRIPTION 2005/06 2006/07 2007/08 2008/09 2009/10

R'000

Government Grant - Baseline Allocation 20,000

21,200

22,260

23,361 24,523

Additional Funds/ Retained Surplus 15,664

11,051

5,000

5,000 5,000

* TOTAL ADJUSTED ALLOCATION 35,664

32,251

27,260

28,361 29,523

Interest on bank -

-

150

162 175

TOTAL REVENUE 35,664

32,251

27,410

28,523 29,698

TOTAL EXPENDITURE (24,613) (32,251) (27,410)

(28,523) (29,698)

SURPLUS/ (DEFICIT) 11,051

- -

- -

30

Budget Breakdown per Category 2007/08

64%

29%

6% 1%

COMPENSATION FOR EMPLOYEES GOODS AND SERVICESINTEREST AND RENT ON LAND CAPITAL EXPENDITURE

31

Budget Breakdown per Department 2007/08

17%

30%

20%

7%

15%

8% 3%

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