PRASA PRESENTATION TO PORTFOLIO COMMITTEE ON TRANSPORT GROUP CEO – LUCKY MONTANA 10 OCTOBER 2012
PRASA Presentation to the Select Committee on Public Services 19 June 2012.
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Transcript of PRASA Presentation to the Select Committee on Public Services 19 June 2012.
PRASAPresentation to the Select Committee on Public Services
19 June 2012
Introduction Background
o Government mandate to PRASAPRASA Strategy 2012 – 2015
o Vision & Missiono Key Thrusts of PRASA Strategyo Capital Plano Strategies in Rail Operations
CONTENT
INTRODUCTION AND BACKGROUND
Passenger Rail on a Threshold of a Major Transformation with Government Approval for PRASA to acquire New, Modern Rolling Stock
A defining moment that will secure the future of Passenger Rail for the next 40 years
The Portfolio Committee on Transport played a Critical Role through Advocacy, Study Tours, and highlighting the Risks of failure to replace the current aged fleet
Potential of Passenger Rail: o Contribute to an efficient transport system o Facilitate greater access for the rural and urban pooro Promote socio-economic development
INTRODUCTION
PRASA established to house the assets, finances, personnel and
operations of the former SARCC, Intersite, Metrorail, Shosholoza Meyl
and Autopax
PRASA Owns, Manages, Operates and Maintains Assets under its
control.
PRASA established to be the leading provider of Integrated Public
Transport Solutions
Background
The Primary object of PRASA according to the Legal Succession Act is to:• Provide Urban Rail Commuter Services in the public interest• Provide Long Haul Passenger Rail services• Provide Long haul Bus Services
The Secondary Object of PRASA according to the Legal Succession Act is:o To generate income from the exploitation of assets acquired by PRASA – giving
due regard to Government’s Socio-Economic and Transport Objectives.
Responsibilities of PRASAo To effectively develop and manage rail & rail related transport infrastructure and
to provide efficient rail road based passenger transport within, to and from urban and rural areas.
LEGISLATIVE MANDATE
Passenger Rail Agency of South Africa
PRASA GROUP
PRASA CRES
INTERSITEINVESTMENTS
PRASA RAIL
AUTOPAX
PRASA TECHNICAL
METRORAIL (Commuter)
SHOSHOLOZA MEYL(Long Distance Pax)
· City to City· Translux
· Real Estate Asset Management· Station / Facilities Management
· Leverage investments on key property assets
·
Challenges of Our Railways
• Railway infrastructure and technology has reached the end of its design lifespan
• Poor levels of reliability and predictability
• High costs of maintenance
• Failure to contribute to an efficient transport system
• Inability to support economic development
• Limited access to socio-economic opportunities for rural and urban poor
• Long - Distances
• Low – Densities
• Low - Incomes
8
Structural Viability
DRAFT
Modernization drive underway poses challenges to PRASA
• The delays in capital expenditure 2011/12 – Accelerated Rolling Stock Programme a main contributor.
– PRASA needed to establish itself as a serious business operation, with the capacity to protect its interest.
– Negotiations yielded significant savings in accelerated rolling stock budget-allowing for more refurbishment of coaches.
• The significant growth in Capital budget not accompanied by commensurate growth in the Operations budget
– Place significant limits on technical & professional skills
• The multiplicity of major projects taking place due to the aged and technology obsolescence
– PRASA joins other major capital intensive companies in competing for skills, resources and expertise.
• Testing the capacity of PRASA to keep the operations running, requiring complex project management capabilities.
– Compounded by shocks to the system from time to time, e.g. the lightening strike at Kaalfontein
9
Investment in new rail rolling stock had not taken place for over three decadeso The last new train sets were purchased in the mid 80s
4 638 coaches for Metrorail operations 1 223 coaches & 124 locomotives for SMeyl operations The design and technology dates back to the 1950’s
o The technology is old and inherently obsoleteo Metrorail – average age of the current coaches is 40 years
while the life span of rail rolling stock is of the order of an average 46 years
o SMeyl – Average age of the current coach fleet is in the order of 33 years
Status Quo
Status Quo (Cont.)
0
200
400
600
800
1000
1200
0-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50
Age category
Coach
es
Bought
New Gen
5M2A
PRASA STRATEGY 2012 – 2015MODERNIZING PASSENGER RAIL FOR QUALITY PUBLIC
TRANSPORT IN SOUTH AFRICA
PRASA Strategy
“Shift Focus:
From Stabilisation of Commuter Rail Services towards the delivery of High-
Quality Passenger Services by 2015: The long-term goal of PRASA is to be a commercially viable entity capable of
delivery efficient, high-quality passenger transport services on a sustainable basis.
13
To be South Africa’s Leader in the Provision of Quality Passenger Services by 2015
o Mobility – • through providing high-quality passenger services founded on an integrated network of
mobility routes.
o Accessibility – • that enable individuals and communities to access socio-economic opportunities and
contribute to a better quality of life of the people as a whole.
o Sustainability – • a focus on sustainable development (financial, environmental quality and social equity)
VISION
PRASA STRATEGY
To Strive for High-Quality Passenger Service through Service Excellence, Innovation and Modal Integration
o Service excellence – • superior performance that is safe, reliable and affordable, provide a dignified travel
experience that makes a lasting value adding impression and builds brand loyalty for employees and customers
o Modal Integration • reframing the basis of business delivery, favouring innovation, seamless integration
and partnerships
MISSION
PRASA STRATEGY
Deliver on the Legal and Transport Policy Mandate
Building a commercially viable and sustainable entity
Investing in new capacity through the acquisition of new, modern trains,
signaling and operating systems to address service imbalances inherited
from the past.
Key Thrusts of Strategy
Strengthening the financial position of PRASABalance sheet Restructuring, Recapitalization of Prasa.
Improving the financial Performance of PRASAManage costs & increase revenue.
Operational EffectivenessService Excellence, 90% Predictable Train service performance, 90 day Action Plan, preventative maintenance, Annual reduction of 5% in incidents.
Modernization and Expansion of Asset BaseModernize operations and invest in new capacity.
Human Capital ManagementBridge gap between strategic focus and employee management and performance to improve productivity.
Risk ManagementSound management of business risks (e.g. operational safety), Manage risk through controlled compliance to statutory requirements, culture of good corporate practices.
PRASA Strategy: Summary of Key Interventions
17
Modernization of Technology:1. Acquisition of a New, Modern Rolling Stock Fleet2. National Signaling Upgrade Programme3. Modern Operating Systems:
i. Traffic Control Systemsii. Speed Gates, iii. Ticketing Systemsiv. Telecommunication Systems
4. Capacity Enhancement Programmesi. Accelerated Rolling Stock Programmeii. Bridge City iii. Mamelodi extensioniv. Station Upgrades
5. Light-Rail and High-Speed Rail
Investing in New Capacity
Strategies to deal with condition of train service
19
New Generation Rolling Stock
Progress as at end February 2012o Market engagement - April 2011o Feasibility study completed - June 2011o Project approved by Cabinet – November 2011o Funding arrangements finalised – February 2012o Online market engagement on local content with local suppliers and rolling stock
manufacturers: between February and March 2012
Key steps for 2012/13 o Issue Request for Proposal - April 2012o Bid evaluation and selection of preferred bidder - end August 2012o Recommendation of selected bidder and technology to Cabinet
– end February 2013
o Reach financial close with preferred bidder - end June 2013
PROGRESS TO DATE
Rolling Stock Fleet Renewal Programme
Key Strategic Projects
National Signaling Programme
Key Strategic Projects
Demonstration Corridors
Major Infrastructure investment (Perway, Electrical and Facilities)
Region Demonstration
Corridors Service
Route Distance (km)
Gauteng Mabopane - Naledi
Mabopane – Pretoria 39.0 Pretoria – Johannesburg 69.0 Pretoria – Johannesburg
(Business Express) 69.0
Leralla – Germiston 33.0 Johannesburg – Naledi Incl.
George Goch & Crown 29.6
Soweto Business Express 35.0
KZN Umlazi – Kwa Mashu
Umlazi - Durban 26.0 Isipingo - Durban 19.0
Kwa Mashu - Durban 19.0 Bridge City - Durban
Western Cape Khayelitsha – Cape
Town
Chris Hani – Cape Town 29.0 Khayelitsha – Cape Town
(Business express) 29.0
Kapteinsklip – Cape Town 32.0
Investment in New Generation of Locomotives for Shosholoza Meyl Vital to creating a reliable and efficient long-distance service passenger
service for over 3 million migrant workers who travel between cities and rural areas
Reduce travel times on mainline passenger services Increase running speeds to an average of 140 km/hour Modernize long-distance Passenger Coaches to create a new feel PRASA has prioritised the following corridors:
o Mthatha – Queenstown – Johannesburg (Eastern Cape)o Polokwane - Tshwane (Limpopo)o Vryheid – Durban - Johannesburg – Vryheid (Northern Natal)
MAINLINE PASSENGER SERVICES
PRASA STRATEGY - CAPITAL
Capital Programme2012/13 2013/14 2014/15 Total
MTEFRolling Stock Fleet Renewal Programme - - 5 130 000 5 130 000New locomotives for Smeyl 300 000 202 129 - 502 129Corridor Modernization Programme 450 106 580 192 569 202 1 599 500 PRASA Rail 854 000 1 015 550 1 006 328 2 875 878 Capital Intervention Programme (minor w orks, safety & SNP) 429 000 450 450 442 973 1 322 423 Electrical Programme: Substation, New Overhead Lines & OHTE 180 000 305 400 308 170 793 570 Footbridges, Level Crossings and Structures 105 000 111 300 116 865 333 165 Perw ays 140 000 148 400 138 320 426 720 PRASA Technical 2 676 000 3 157 831 2 996 475 8 830 306 General overhaul of Metrorail Coaches 1 931 000 2 179 971 2 072 222 6 183 193 General overhaul of Shosholoza Meyl coaches 193 000 204 580 214 809 612 389 General overhaul of Shosholoza Meyl locomotives 117 000 124 020 130 221 371 241 Depots Infrastructure & Equipments 270 000 450 860 423 403 1 144 263 Rolling Stock facilities 140 000 148 400 155 820 444 220 AY-Type Wagons 25 000 50 000 - 75 000 PRASA Corporate Real Estate 772 000 777 970 816 869 2 366 839 Station Improvement Programme 239 000 303 340 318 507 860 847 Station upgrades/transit oriented developments 248 000 332 880 349 524 930 404 Mabopane station upgrade 150 000 - - 150 000 Workplace Improvement Programme (incl facilities) 135 000 141 750 148 838 425 588 Information and Communication Technology (ICT) 86 000 91 160 95 718 272 878 ICT Systems 86 000 91 160 95 718 272 878 Infrastructure and related capital 1 563 000 1 560 335 1 242 687 4 366 022 Signaling & Telecommunications 768 000 814 080 854 784 2 436 864 Bridge City 260 000 - - 260 000 Green View - Pienaarspoort project 164 000 - - 164 000 Queenstow n - Umtata 100 000 150 000 200 000 450 000 National Speed Gates Project 205 000 367 300 - 572 300 Motherw ell Rail Extension - 178 955 187 903 366 858
Metrorail/Gautrain Stray Current Mitigation 66 000 50 000 - 116 000 Total 6 701 106 7 385 167 11 857 277 25 943 550 2012 MTEF Allocation 6 701 106 7 385 167 11 857 277 25 943 550 Unallocated - - 0 0 Year-on-year growth 9.2% 10.2% 60.6%
Medium-Term Expenditure Framework
STRATEGIES IN RAIL OPERATIONS
Changing the Nature of Operations, amongst others, through:1. Service Excellence
i. Service reliabilityii. Safety & Security
2. Preventative Maintenance Programmei. Established a Technical Division to focus on all Technical, Rolling Stock
and Engineering aspects of the Groupii. Rolling Stock and Rolling Stock depots for Metro and SMeyliii. Accelerated Rolling Stock Programmeiv. Focus on Wheels Business and critical components
3. Focusing resources on High-Volume Corridors4. Human Capital
i. Human Factor Management Programme
Operational Effectiveness
Strategies to deal with train time improvements
64% of fleet complete
Accelerated Rolling Stock Programme
0
100
200
300
400
500
600
700
800
2005/06 2006/07 2007/08 2008/09 2009/10 2009/10 2010/11 2011/12
219
310
489
709
487 505
334
510
Accelerated Rolling Stock Programme: Coaches completed
Human error the main cause of accidents
Human Factor Management Strategy developed
o Human Factor Standard Roadmap with RSR
o Increased supervision oversight to certify “fit for duty”
o Train simulator training inclusive of problem solving
o Medical Surveillance annually for safety critical grades
o Substance abuse monitoring
Longer term – Automatic Train Protection (ATP)
Strategies around addressing train accidents
Improve revenue to sustain current operations. Quality and reliable service. Safe Operations Safe and orderly environment. Cleanliness of stations and trains. Effective Information dissemination to customers. Professional appearance , positive attitude and improved customer care by
staff Taking care of our employees Effective Management of performance. A sound and healthy relationship with key stakeholders (mainly commuter
forums, labour, community structures, business and local government). Sound management of operational costs
PRASA Rail PROGRAMME OF ACTION 2012/13
Strategies around operational safety
Safety and Clean environment campaigns have commenced in all Metrorail regionso Special focus on commuter safety particularly the closing of doors and general
promotion of safe behavior within the rail environment. o Conducted in collaboration with Prasa CRES, Commuter Forums, Local
Government, SAPS and the RSR On time performance for Metrorail in May was 82.33% compared to 81.13%
in April 2012 which shows steady improvement from 76% in January, 77% in February.
On Infrastructure, a perway assessment report has been completed. o Special attention required in Gauteng South and KZN. o Gauteng corridor A lines (Naledi to JHB and Kempton Park to Germiston) need
particular attention. o Upgrades and improvements addressed through Capital Intervention Projects
from CAPEX budget.
PRASA Rail PROGRAMME OF ACTION 2012/13: Progress
Strategies around operational safety
Inclusive of yard collisions and derailments
Accident Trends
0
10
20
30
40
50
No
of in
cide
nts
Accident trend Metrorail
Collisions Derailments
Linear (Collisions) Linear (Derailments)
Passenger Performance Measure
Time improvement trend
0%10%20%30%40%50%60%70%80%90%
100%
2003
/04
2004
/05
2005
/06
2006
/07
2007
/08
2008
/09
2009
/10
2010
/11
Apr-
11M
ay-1
1Ju
n-11
Jul-1
1Au
g-11
Sep-
11O
ct-1
1N
ov-1
1De
c-11
Jan-
12Fe
b-12
Mar
-12
Apr-
12M
ay-1
2
Trai
ns d
elay
ed a
nd c
ance
lled
as %
of
Sche
dule
d tr
ains
Trend in Passenger Performance Measure
Approval of the Rolling Stock Recapitalisation Programmeo Feasibility study approved by Cabineto Funding secured from 2012/13 onwards
National Signaling Programme commencedo Stage 1, phase 1 in Gauteng commenced
• Lenz Midway Interim Solution implemented• Gauteng Nerve Centre Environmental Impact Assessment completed• Gauteng Nerve Centre Design approved.
Bridge City Rail link construction progress is on schedule for completion March 2013.
Growth in the Autopax bus business with year on year increase of 22% in fare revenue
Safety performance of commuter rail improved with accident rate down by 6%. Awarded over 240 bursaries that focus in the main on civil, electrical and
mechanical engineering for 2012 . Unfunded mandate of long-distance rail
2011/12
Key Highlights