Presentation to the Portfolio Committee on Transport Gautrain Update. Jack vd Merwe (Pr. Eng) CEO: Gautrain Management Agency 25 August 2009
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1 Presentation to the Portfolio Committee on Transport Gautrain Update Jack vd Merwe (Pr. Eng) CEO: Gautrain Management Agency 25 August 2009
2 Gautrain in a nutshell
3 Scope Currently the largest Greenfields rail infrastructure project in the world. Emphasis on the integration of Gautrain with all existing public transport modes in Gauteng Was voted Best Global Deal to Sign in 2007 by the International Public Finance Association
4
5 Technical specifications Safety and security paramount International standard gauge Maximum speed: 160 km/h 24 modern state of the art trains Bombardier s Electrostar Thus totally different from existing SA system Different couches for commuters and air passengers Frequency every 10 to 30 minutes Minimum operating hours 05:30 to 20:30
6 Feeder & distribution service Gautrain bus service integrated with Gautrain rail 125 buses 36 feeder and distribution routes spanning 420 km Every 12 to 30 minutes in relation to train time-table bus trips per day km of bus services per day Gautrain bus links to complement BRT & bus services in metropolitan areas Ample park and ride facilities
7 Objectives of the Gautrain Project
8 Development Goals Economic growth, development and job creation Must meet other goals of Government (SMME promotion, Business tourism, BBBEE, etc.) To promote business tourism by means of the link between JIA and Sandton
9 Transportation Goals Alleviate severe traffic congestion (traffic volumes in corridor growing at 7% p.a. for more than a decade) Show Government s commitment to the promotion of public transport (National Land Transport Transitional Act, Act 22 of 2000) Catalyst public transport project Improve the image of public transport with this project and attract more car users to public transport To link to the Tshwane Ring Rail Project, linking Mamelodi, Atteridgeville and Soshanguve / Mabopane Part of holistic transport plan and network for Gauteng Catalyst public transport project of national importance
10 2000 Northbound and Southbound Vehicle Volumes :00:00 01:00:00 02:00:00 03:00:00 04:00:00 05:00:00 06:00:00 07:00:00 08:00:00 09:00:00 10:00:00 11:00:00 12:00:00 13:00:00 14:00:00 15:00:00 16:00:00 17:00:00 18:00:00 19:00:00 20:00:00 21:00:00 22:00:00 23:00:00 Northbound Southbound Hour Beginning Hourly Volume
11 2005 Northbound and Southbound Vehicle Volumes 7000 Northbound Southbound :00:00 0:45:00 1:30:00 2:15:00 3:00:00 3:45:00 4:30:00 5:15:00 6:00:00 6:45:00 7:30:00 8:15:00 9:00:00 9:45:00 10:30:00 11:15:00 12:00:00 12:45:00 13:30:00 14:15:00 15:00:00 15:45:00 16:30:00 17:15:00 18:00:00 18:45:00 19:30:00 20:15:00 21:00:00 21:45:00 22:30:00 Hourly Volume 0 Hour Beginning
12 Flagship Public Transport Project of National Significance Gautrain is a flagship public transport project of national importance. It can be the catalyst to free existing resources or to generate new resources to promote public transport in a holistic fashion Need to ensure Gautrain is integrated into the public transport system of Gauteng: Promotion of public transport Strategic integration Operational integration Funding strategy / process Gautrain governance structure
13 Spatial Development and Urban Planning Goals To contribute towards urban restructuring, shortening travel distances and improving city sustainability Stimulate the renovation and upliftment of the Johannesburg and Tshwane CBDs Link the main economic nodes in Gauteng with JIA
14 Gautrain: More than Just Another Transport Project The project stimulates Economic growth Investment New development Job creation Design to Restructure urban areas Reduce travel distances, time and cost Improve city sustainability The Gautrain will promote Public Transport SMME & BBBEE Development Tourism Business development
15 Funding
16 Funding Gautrain has 5 sources of funding DoRA (Division of Revenue Act) money from central government via the Department of Transport MTEF (Medium Term Expenditure Framework) from Gauteng Provincial Government Private Sector Equity Private Sector Borrowing Provincial Borrowing
17 Project Financing
18 Expenditure Currently in month 30 (of 54 month development period) Expenditure to date R 16,221 billion Financial Close amount : R 25,1 billion CA is: Fixed Price; Fixed Scope; Fixed time concession contract Estimated cost at completion?
19 Expenditure PPP regulations & authorisation must be followed TA3 Authorisation has specified a CAPEX Cap OPEX Cap How can the project cost increase? Increase in FOREX (Hedged) Increase in CPIX (only the delta of ) Variation Orders Claims from the Concessionaire
20 Lessons Learned Creation of the GMA Single point accountability Contract form Public Private Partnership (PPP) Complex Difficult to handle variations Composition of Concessionaire Equity Operator
21 Lessons Learned Link to external events FIFA 2010 Soccer World Cup Added pressure / Places Government at a disadvantage Scope of work must be well defined Interaction & co-operation 3 rd Parties essential Stakeholders & Role players Continuous consultation vs. time it takes to implement the project
22 Lessons Learned Challenges of integration Strategic integration infrastructure Operational integration Ticket integration vs. Fare integration EIA process Time it takes to complete the approval process Compliance to the Environmental Management Plan Technical challenges Tunnel & Dolomites
23 Lessons Learned Creation of a competent team to manage the process In-house Consultants (local & international) Cost Retention of expertise Challenges of a green-fields project Public sector comparator Ridership predictions
24 Lessons Learned Acceleration cost to open the Airport link in time for the FIFA 2010 Soccer World Cup Possible future claims
25 The Seven Stages of a PPP Project Enthusiasm Promises & Programmes Disillusionment Panic Hunt for the guilty Punishment of the innocent Reward for those who had nothing to do with it
26 Thank You The philosophers have only interpreted the world, the point however is to change it Karl Marx The Future is not for the faint hearted. R Reagan
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