PRASA
Presentation to the Select Committee on Public
Services
19 June 2012
CONTENT
 Introduction
Background
o Government mandate to PRASA
PRASA Strategy 2012 – 2015
o Vision & Mission
o Key Thrusts of PRASA Strategy
o Capital Plan
o Strategies in Rail Operations
INTRODUCTION AND BACKGROUND
INTRODUCTION
 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 poor
o Promote socio-economic development
Background
 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
LEGISLATIVE MANDATE
 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 PRASA
o 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.
Passenger Rail Agency of South Africa
PRASA GROUP
PRASA
TECHNICAL
PRASA RAIL
METRORAIL
(Commuter)
SHOSHOLOZA MEYL
(Long Distance Pax)
PRASA
CRES
AUTOPAX
·
·
City to City
Translux
·
·
Real Estate Asset Management
Station / Facilities Management
INTERSITE
INVESTMENTS
·
·
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
Structural Viability
8
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 budgetallowing for more refurbishment of coaches.
The significant growth in Capital budget not accompanied by
commensurate growth in the Operations budget
–
•
The multiplicity of major projects taking place due to the aged and
technology obsolescence
–
•
DRAFT
Place significant limits on technical & professional skills
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
Status Quo
 Investment in new rail rolling stock had not taken place for
over three decades
o 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 obsolete
o 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 (Cont.)
1200
1000
New Gen
Coaches Bought
5M2A
800
600
400
200
0
0-5
6-10
11-15
16-20
21-25
26-30
Age category
31-35
36-40
41-45
46-50
PRASA STRATEGY 2012 – 2015
MODERNIZING PASSENGER RAIL FOR QUALITY PUBLIC
TRANSPORT IN SOUTH AFRICA
PRASA Strategy
 “Shift Focus:
From Stabilisation of Commuter Rail Services towards the delivery of HighQuality 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
PRASA STRATEGY
VISION
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)
PRASA STRATEGY
MISSION
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
Key Thrusts of 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.
PRASA Strategy: Summary of Key Interventions

Strengthening the financial position of PRASA
Balance sheet Restructuring, Recapitalization of Prasa.

Improving the financial Performance of PRASA
Manage costs & increase revenue.

Operational Effectiveness
Service Excellence, 90% Predictable Train service performance, 90 day Action Plan, preventative
maintenance, Annual reduction of 5% in incidents.

Modernization and Expansion of Asset Base
Modernize operations and invest in new capacity.

Human Capital Management
Bridge gap between strategic focus and employee management and performance to improve
productivity.

Risk Management
Sound management of business risks (e.g. operational safety), Manage risk through controlled
compliance to statutory requirements, culture of good corporate practices.
17
Strategies to deal with condition of train service
Investing in New Capacity
Modernization of Technology:
1.
2.
3.
Acquisition of a New, Modern Rolling Stock Fleet
National Signaling Upgrade Programme
Modern Operating Systems:
i.
ii.
iii.
iv.
4.
Capacity Enhancement Programmes
i.
ii.
iii.
iv.
5.
Traffic Control Systems
Speed Gates,
Ticketing Systems
Telecommunication Systems
Accelerated Rolling Stock Programme
Bridge City
Mamelodi extension
Station Upgrades
Light-Rail and High-Speed Rail
New Generation Rolling Stock
19
PROGRESS TO DATE
 Progress as at end February 2012
o
o
o
o
o
Market engagement
- April 2011
Feasibility study completed
- June 2011
Project approved by Cabinet – November 2011
Funding arrangements finalised – February 2012
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 2012
o Bid evaluation and selection of preferred bidder
- end August 2012
o Recommendation of selected bidder and technology to Cabinet
– end February 2013
o Reach financial close with preferred bidder
- end June 2013
Key Strategic Projects
Rolling Stock Fleet Renewal Programme
 Acquisition of 7224 vehicles over a 20 year period, divided into three
components:
o 5 256 Vehicles to satisfy existing rail passenger demand on current network until
the year 2020
o 456 vehicles to satisfy growth in rail passenger demand to the year 2030 on
existing network
o a further 1512 vehicles to satisfy long-term rolling stock needs on new railway
lines to be constructed as part of a possible future expansion of the existing
network and development of a new network .
Key Strategic Projects
National Signaling Programme

PRASA to invest R7 billion in new, modern Signalling over the next 5 years

Progress as at end March 2012
o
o
o
o
o

Preferred bidder selected for Gauteng Phase 1
- October 2010
Contract for 1st Phase Gauteng commenced
- 1st quarter 2011/12
Interim Lenz Midway solution implemented
- October 2011.
Gauteng Nerve Centre EIA completed & Concept Design approved - December 2011
Tender for KZN phase 1 closed
- January 2012
Key steps for 2012/13
o
KZN Tender Phase 1
•
•
o
- June 2012
- July 2012
Western Cape phase 1
•
•
•
o
Contractual negotiations complete
Construction commence
Tender close
Contractual negotiations complete
Construction commence
- March 2012
- June 2012
- July 2012
Gauteng
•
PHASE 1
– Validation of Interlocking
- June 2012
– Detailed design of Gauteng Nerve Centre approved
- November 2012
•
PHASE 2
–
–
–
Tender Closure
Contractual negotiations complete
Construction commence
- July 2012
- September 2012
- October 2012
Major Infrastructure investment
(Perway, Electrical and Facilities)
Demonstration Corridors
Region
Gauteng
KZN
Western Cape
Demonstration
Corridors
Mabopane - Naledi
Umlazi – Kwa Mashu
Khayelitsha – Cape
Town
Service
Mabopane – Pretoria
Pretoria – Johannesburg
Pretoria – Johannesburg
(Business Express)
Leralla – Germiston
Johannesburg – Naledi Incl.
George Goch & Crown
Soweto Business Express
Umlazi - Durban
Isipingo - Durban
Kwa Mashu - Durban
Bridge City - Durban
Chris Hani – Cape Town
Khayelitsha – Cape Town
(Business express)
Kapteinsklip – Cape Town
Route
Distance (km)
39.0
69.0
69.0
33.0
29.6
35.0
26.0
19.0
19.0
29.0
29.0
32.0
MAINLINE PASSENGER SERVICES
 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)
PRASA STRATEGY - CAPITAL
Capital Program m e
2012/13
2013/14
2014/15
Medium -Term Expenditure Fram ew ork
Rolling Stock Fleet Renew al Program m e
5 130 000
New locom otives for Sm eyl
300 000
202 129
Corridor Modernization Program m e
450 106
580 192
569 202
PRASA Rail
854 000
1 015 550
1 006 328
Capital Intervention Programme (minor w orks, safety & SNP)
429 000
450 450
442 973
Electrical Programme: Substation, New Overhead Lines & OHTE 180 000
305 400
308 170
Footbridges, Level Crossings and Structures
105 000
111 300
116 865
Perw ays
140 000
148 400
138 320
PRASA Technical
2 676 000
3 157 831
2 996 475
General overhaul of Metrorail Coaches
1 931 000
2 179 971
2 072 222
General overhaul of Shosholoza Meyl coaches
193 000
204 580
214 809
General overhaul of Shosholoza Meyl locomotives
117 000
124 020
130 221
Depots Infrastructure & Equipments
270 000
450 860
423 403
Rolling Stock facilities
140 000
148 400
155 820
AY-Type Wagons
25 000
50 000
PRASA Corporate Real Estate
772 000
777 970
816 869
Station Improvement Programme
239 000
303 340
318 507
Station upgrades/transit oriented developments
248 000
332 880
349 524
Mabopane station upgrade
150 000
Workplace Improvement Programme (incl facilities)
135 000
141 750
148 838
Inform ation and Com m unication Technology (ICT)
86 000
91 160
95 718
ICT Systems
86 000
91 160
95 718
Infrastructure and related capital
1 563 000
1 560 335
1 242 687
Signaling & Telecommunications
768 000
814 080
854 784
Bridge City
260 000
Green View - Pienaarspoort project
164 000
Queenstow n - Umtata
100 000
150 000
200 000
National Speed Gates Project
205 000
367 300
Motherw ell Rail Extension
178 955
187 903
Metrorail/Gautrain Stray Current Mitigation
66 000
50 000
Total
6 701 106
7 385 167
11 857 277
2012 MTEF Allocation
6 701 106
7 385 167
11 857 277
Unallocated
0
Year-on-year growth
9.2%
10.2%
60.6%
Total
MTEF
5 130 000
502 129
1 599 500
2 875 878
1 322 423
793 570
333 165
426 720
8 830 306
6 183 193
612 389
371 241
1 144 263
444 220
75 000
2 366 839
860 847
930 404
150 000
425 588
272 878
272 878
4 366 022
2 436 864
260 000
164 000
450 000
572 300
366 858
116 000
25 943 550
25 943 550
0
STRATEGIES IN RAIL OPERATIONS
Strategies to deal with train time improvements
Operational Effectiveness
Changing the Nature of Operations, amongst others, through:
1. Service Excellence
i.
ii.
Service reliability
Safety & Security
2. Preventative Maintenance Programme
i.
ii.
iii.
iv.
Established a Technical Division to focus on all Technical, Rolling Stock
and Engineering aspects of the Group
Rolling Stock and Rolling Stock depots for Metro and SMeyl
Accelerated Rolling Stock Programme
Focus on Wheels Business and critical components
3. Focusing resources on High-Volume Corridors
4. Human Capital
i.
Human Factor Management Programme
Accelerated Rolling Stock
Programme
64% of fleet complete
Accelerated Rolling Stock Programme: Coaches completed
709
800
700
600
489
500
510
505
310
334
400
300
487
219
200
100
0
2005/06 2006/07 2007/08 2008/09 2009/10 2009/10 2010/11 2011/12
Strategies around addressing train accidents
 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 operational safety
PRASA Rail PROGRAMME OF ACTION 2012/13











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
Strategies around operational safety
PRASA Rail PROGRAMME OF ACTION 2012/13: Progress
 Safety and Clean environment campaigns have commenced in all Metrorail
regions
o 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.
Accident Trends
Inclusive of yard collisions and derailments
Accident trend Metrorail
No of incidents
50
40
30
20
10
0
Collisions
Derailments
Linear (Collisions)
Linear (Derailments)
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Trains delayed and cancelled as % of
Scheduled trains
Time improvement trend
Passenger Performance Measure
Trend in Passenger Performance Measure
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Key Highlights
2011/12
 Approval of the Rolling Stock Recapitalisation Programme
o Feasibility study approved by Cabinet
o Funding secured from 2012/13 onwards
 National Signaling Programme commenced
o 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