NATIONAL ROAD BASED PUBLIC
TRANSPORT TRANSFORMATION
PLAN: from bus to public transport
subsidisation
NCOP PRESENTATION, 19
MARCH 2013
1
Presentation Outline








Background Information
Provincial Status Quo
Investment in Public Transport
Way Forward
Funding Requirements
Implementation Programme
Key Success Factors (Risks)
Conclusion
2
Background Information
 For the past 14 years subsidised bus contracts remained stagnant
and most have been managed on a month-to-month basis since 2000
 As a result the current system is characterised by out-dated
information in relation to routes, passenger volumes, passenger
kilometres, poor quality service and a public transport system that is
in serious distress
 AG has started to query the month-to-month nature of the contracts
leading to qualification of audit opinions and irregular expenditure
disclosures
 In most areas there are no plans (IPTN’s, ITP’s, etc)
 There is an urgent need to stabilize the operating environment in the
short term and realise full integration in the long term
3
Background Information
 Provided for in Section 41 of the NLTA (No. 5 of 2009:
41. (1) Contracting authorities may enter into negotiated contracts with operators in
their areas, once only, with a view to—
(a) integrating services forming part of integrated public transport networks in
terms of their integrated transport plans;
(b) promoting the economic empowerment of small business or of persons
previously disadvantaged by unfair discrimination; or
(c) faciltating the restructuring of a parastatal or municipal transport operator to
discourage monopolies.
(2) The negotiations envisaged by subsections (1) and (2) must where
appropriate include operators in the area subject to interim contracts,
subsidised service contracts, commercial service contracts, existing negotiated
contracts and operators of unscheduled services and non-contracted services.
4
Background Information…(modal
split -road based)
5
6
Background Information (Economic Rationale
for Funding Support & Subsidisation)
 Worldwide extensive funding support for public. Grounds:
 Economic: Vital for functioning and most economically efficient
means of (urban) travel
 Society: Equity, basic right of access
 Environmental / sustainability - least cost
 Government funding to improve transport system effectiveness &
sustainability and help achieve (spatial) development policy goals.
International ReviewTotal Cost of Transport Strategies
25.00
% Metropolitan GDP
Total public passenger transport cost as
percentage of metropolitan GDP
20.00
Total private passenger transport cost as
percentage of metropolitan GDP
15.00
10.00
5.00
Source UITP 2000
0.00
Source UITP 2006
Developed cities
Developing cities
High density, pro-public transport & NMT
Low density, car based
Low density sprawling
% local GDP on transport
5-7%
12-15%
20% - 25%+
Conclusion: Compact cities with strong bias to public transport spend
much less on transport with significant social and economic benefits
7
International (International
Review :
Background Information
Review- 8
Urban
Densities
and
OperatingStrategies)
Cost Recovery
Total
Cost of
Transport
300
250
300
DENSITY : 5 city moving
average
250
200
200
150
150
100
100
50
50
0
0
60 World Cities (Developed)
DENSITY : 5 city moving
average
25 World Cities (Developing)
Conclusion:
Making public transport attractive (to all) requires major investments
and subsidy. Only with increased corridor densities are operating cost
recovery likely to improve significantly.
International (International
Review :
Background Information
Review- 9
PlotTotal
of Systems
on Quality
& Density
Cost ofbased
Transport
Strategies)
Low Density
High Quality
US/Aus, low density
auto dependent
Very high external
costs
W.Europe,
Strong policy
favouring PT
E. Europe, Centrally
Planned for PT.
Where next?
Latin
America.
Africa, Informal,
unsupported
S. Africa
Operational
Breakeven
Line
Low Quality
High Density
Developed Asian.
Sustainable,
Profitable
Developing Asian.
Sustainability issues
Background Information…(subsidized
services spread)
Source:Subsidy
GIPTN
Comparators:
PTOG
•Long urban commuter routes
•Long distance rural to urban
commuter trips
Rural
settlements
linkage to
regional
centres
•Transport to mines
•Some rural to urban
routes
Ex-homeland to
main urban routes
Exclusively intra-urban routes
•
•
Rural linkage to
regional centres
Intra-Urban Routes
Background Information… (subsidy
funding history)
11
Provincial Status Quo (PTOG Contracts)
Province
Nature and number of contracts
2012/13
Budget
Total
Interim
Tendered
Negotiated
Eastern Cape
1
1
0
0
174,466
Free State
7
0
5
2
192,872
Gauteng
34
8
26
0
1,625,746
Kwazulu Natal
39
2
36
1
808,279
Limpopo
11
7
1
3
260,725
Mpumalanga
7
7
0
0
439,003
Northern Cape
6
1
0
5
39,255
North West
4
0
1
3
80,686
Western Cape
1
1
0
0
696,237
110
27
69
14
4,317,269
GRAND TOTALS
12
PTOG split per Province
 2012/13 PTOG allocation R4,317,269,000
13
PTOG split per contract type
 About R2.9billion of the R4,3billion annual bus subsidy (PTOG) goes to interim
contracts
 The amount exclude provincial allocations (Limpopo, North West and Eastern
Cape)
14
18
Contract Cost Analysis
METROS
Putco
Golden
Soweto
Arrow
Av trip distance
Trips / bus/ day
Km/bus/day
Pax/bus/day
Pax/bus/km
% subsidy
Subsidy/pass.
Average fare
Cost/km
46
2.0
81
136
1.67
60%
R 13
R8
36
1 rtn trip
v low pax/bus.
High cost/km
26
4.2
129
166
1.29
63%
R 12
R7
25
TOWNSHIPS INTO METROS
RURAL
Putco
NWS
Ripple Effect
Sandfontein Botlhaba Interstate
(KZN )
73
5.4
225
203
0.90
62%
R 13
R8
19
81
2.2
160
157
0.98
61%
R 18
R 12
30
48
3.9
165
176
1.06
81%
R 13
R3
17
82
1.7
152
130
0.85
69%
R 25
R 11
31
World Bank
Long trips
V low fare !
Inter-work
Better cost/km
High per trip
Less dist.
Subsidy
1 rtn Long trip
low pax/bus
Long distance.
High cost/km
High sub.
250
1000+
4.5
South Africa
–
Current
Funding
Picture
Current PT Investments
14
20
15
10
5
0
Rural Transport
PRASA (Operating)
PTOG Bus Contracts
Capital Sum
Gautrain
PRASA (Capital)
PTISG (for IRPTN’s)
Minibus Taxi Recap
Capital: Benchmark + Operating :
Backlog = 16 to 24
Benchmark = 8
to 16 (12 Cities)
(Rm)
National Government Funding(Rbn)
25
23
Interventions
 Main Metro’s
 BRT system on multiple main
corridors
 BRT “lite” and integrated bus
operations on secondary
corridors
 Dedicated BRT System costs
include
 Dedicated BRT Roadway
(inc.pavement reconstruction)
 Feeder routes
 New stations
 New vehicle fleets
 Integrated ticketing system
 Operational control centre
 Full replacement of current
road-based system
 Other Metro’s & Emerging
Cities
 Single high volume corridor

Priority bus trunk route

Full /lite BRT single line in larger
cities.
 Other areas comprise bus & feeder
integrated scheduled network on
existing routes, with some priority on
busy corridors.
 Full replacement of current roadbased system
24
Interventions
 Towns
 Formal bus system
 Inter-town services
 Mixed fleets including
 Buses
 Midi buses
 Taxis
 Full replacement of current road-based
system
 Scheduled services
 High Density Rural and Rural





Formalised mixed operations
Vehicle re-cap
Scheduled daily services to main centres
Weekly services to regional towns
Minimal infrastructure investments
 Sparse Rural
 Selected interventions where viable
 Weekly & monthly services to towns
 Sharing services with health transport
and scholar transport
 Brokering, flexible scheduling and
confirmation of travel services
 No infrastructure costed
Way Forward
 Why the need to transform:
 For the past 14 years subsidised bus contracts remained stagnant
and most have been managed on a month-to-month basis since 2000
 As a result the current system is characterised by out-dated
information in relation to routes, passenger volumes, passenger
kilometres, poor quality service and a public transport system that is
in serious distress
 AG has started to query the month-to-month nature of the contracts
leading to qualification of audit opinions and irregular expenditure
disclosures
 In most areas there are no plans (IPTN’s, ITP’s, etc)
 There is an urgent need to stabilize the operating environment in the
short term and realise full integration in the long term.
19
Way Forward
 How should the transformation be approached?
APPROACH
PURPOSE
Negotiate
Integrate
GOAL
TRANSFORMATION
 Phase 1: Stabilisation that seeks to move from month-to-month and
interim contracts by negotiating them in terms of Section 41 of the NLTA
even in the absence of IRPTN’s.
 Phase 2: Then integrate the services into Integrated Public Transport
Networks as envisaged by both the National Land Transport Act (NLTA) and
the Public Transport Strategy with full integration as the main objective.
20
Way Forward
 Phase 1: Stabilisation
 Funds permitting identify interim and/or old order contracts to be
negotiated. Initially target those that need to be unbundled and ensure
that at least one such contract per province is negotiated.
 Identify role players (mainly industry role players whose operations will be
affected by the targeted contracts/ routes)
 Develop an national implementation work programme and involve the
municipalities.
 Fast track the removal of impediments; notably legislation obstacles
(develop a cooperation framework to deal with the contracting authority
challenges)
 Integrate the different funding sources, starting with the soon to expire
TRP allocation (as taxis will be integrated into mainstream formal public
transport system).
 Mobilise more funding
21
Way Forward
 Phase 2: Full integration based on IPTN’s
 Address the contracting authority challenges in the NLTA.
 Review the Public Transport expectations in relation to the “12 cities”
requirements with regard to IRPTN’s
 Adopt a differentiated approach for different PT challenges in the country
High Density Urban Setup
(travel demand,
congestion, travel time,
etc
Dedicated
infrastructure
& services
(BRT?)
Low Density Rural
Setup (availability,
access etc.)
Quality PT
services to
enable
access and
mobility
 Ensure the modes (rail, bus and taxi) compete for the road and not on the road.
 Integrate (merge) the funding streams ( PTIS, PTOG, TRP, Green Fund, etc.).
 MinMec approved the plan (concept) in principle
22
Subsidy Requirement (Stabilisation)
23
Funding Requirements (full integration)
Province
2012/13 Allocation
‘000
Taxi/SBO integration
‘000
Eastern Cape
174,466
523,398
Free State
192,872
578,616
1,625,746
4,877,238
Kwazulu Natal
808,279
2,424,837
Limpopo
260,725
782,175
Mpumalanga
439,003
1,317,007
Northern Cape
39,255
117,765
North West
80,686
242,058
696,237
2,088,711
4,317,269
12,951,805
Gauteng
Western Cape
TOTAL
24
Proposed programme per province
Implementation Programme for MTEF period 2014/15 to 2016/17
2014/15
2015/16
Province
Funding
Contract
Funding required
Contract
required
Eastern Cape
AB350 Phase 2
119,466,000 Algoa Bus Service
57,985,012
Mayibiye Bus
Service
89,404,900
Total
208,870,900
57,985,012
Free State
IBL
Thebeyagae
Total
Gauteng
North West Star
126,315,607 Putco Mamelodi
Putco Soweto
Boksburg
Operations
88,269,829 Putco Kwandebele
South Western
9,797,808
Areas
Eldorado Park
224,383,244
Total
Kwazulu Natal
Total
50,424,139 Maluti Bus Service
143,905
50,568,044
Impendhle
Sizananimazulu
Duzi Bus Service
Thembekile
RippleEffect
4,075,077
16,194,338
985,250
1,334,750
7,189,715
29,779,130
Combined
Transport
Ikhwezi
TansAfrica
Emondlo
Dumbe
Darnall
Maphumulo
2016/17
Contract
Funding
required
10,849,884
10,849,884
8,168,867
163,862,569
Brakpan Bus
Service
Putco
Soshanguve
34,419,242 Atteridgeville BS
9,483,947 Vaal Operations
215,934,625
8,905,084
25,476,666
34,735,982
8,401,122
1,298,864
1,364,175
1,112,452
81,294,345
BTI (Ulundi)
TansnatAfrica
Nondweni BS
3,939,927
67,319,861
17,353,511
24,775,684
113,388,983
9,896,966
12,430,322
3,327,414
25
25,654,702
Proposed programme per province
Implementation Programme for MTEF period 2014/15 to 2016/17
2014/15
2015/16
Province
Funding
Contract
Funding required
Contract
required
Great North
Limpopo
Transport
83,085,555
Risaba
2,349,907
Total
Mpumalanga
Total
Northern Cape
North West
Western Cape
Total
Buscor
83,085,555
116,108,991
Phumatra
Unitrans
Total
Atamelang
Phumatra
Thari Bus Service
Total
116,108,991
3,339,478
6,145,026
9,484,504
29,803,582
6,284,887
54,346,413
90,434,882
0
0
Mabirimisa
8,895,020
Bahwaduba
Magwaba
R Phadziri
G Phadziri
Enos
12,105,064
8,691,662
4,703,564
12,239,699
9,917,489
58,902,405
14,358,051
1,527,971
Megabus
Thembalethu
15,886,022
Bojanala
2016/17
Contract
Putco
Lowveld Bus
Service
Swangi's
Transport
Mukondeleli
Netshituni
Mulaudzi
Mabidi
Tilly's
Putco
GNT
Funding
required
131,079
7,013,468
9,918,162
4,088,084
9,543,173
5,730,988
784,345
37,209,299
2,279,075
782,175
5,456,581
8,517,831
69,529,999
69,529,999
Golden Arrow
231,399,282
231,399,282
26
Grand Total
812,715,250
741,781,574
184,770,815
Proposed programme per province
Implementation Programme for MTEF period 2014/15 to 2016/17
2014/15
2015/16
Province
Funding
Contract
Funding required
Contract
required
Great North
Limpopo
Transport
83,085,555
Risaba
2,349,907
Total
Mpumalanga
Total
Northern Cape
North West
Western Cape
Total
Buscor
83,085,555
116,108,991
Phumatra
Unitrans
Total
Atamelang
Phumatra
Thari Bus Service
Total
116,108,991
3,339,478
6,145,026
9,484,504
29,803,582
6,284,887
54,346,413
90,434,882
0
0
Mabirimisa
8,895,020
Bahwaduba
Magwaba
R Phadziri
G Phadziri
Enos
12,105,064
8,691,662
4,703,564
12,239,699
9,917,489
58,902,405
14,358,051
1,527,971
Megabus
Thembalethu
15,886,022
Bojanala
2016/17
Contract
Putco
Lowveld Bus
Service
Swangi's
Transport
Mukondeleli
Netshituni
Mulaudzi
Mabidi
Tilly's
Putco
GNT
Funding
required
131,079
7,013,468
9,918,162
4,088,084
9,543,173
5,730,988
784,345
37,209,299
2,279,075
782,175
5,456,581
8,517,831
69,529,999
69,529,999
Golden Arrow
231,399,282
231,399,282
27
Grand Total
812,715,250
741,781,574
184,770,815
Key Success Factors
TRANSFORMATION
Funding
Adequate
(additional)
and
sustainable
funding
Institutional
Structures
Good, strong
inter-sphere
relations
Support
Uniform
standards
and
guidelines.
Effective M &
E
Commitment
From
leadership,
management
and
stakeholders.
Communicate
all the time
Legislation
(un)certainty
Contracting
role
clarification;
legal
justification to
negotiate v
competition
THE PLAN
 All of the above can also be viewed as RISKS if not attended to
28
Conclusion
 The Plan was approved by MinMec.
 FUNDING remains the main impediment to achieve total
transformation and integration.
 The Taxi Recapitisation Programme will continue until taxis are fully
integrated in mainstream PT. In its current form the programme has to
run for a further 2 years to allow for:
 Finalisation of the option analysis
 Securing adequate funding
 Efficiencies will have to be introduced into the programme
29
THANK YOU