Agenda. Introduction to PRASA. Funding Allocation and Spending Performance. Strategic Plan. Rail Modernization. Challenges
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1 Agenda A Introduction to PRASA B Funding Allocation and Spending Performance C Strategic Plan D Rail Modernization E Challenges 0
2 Rail Modernisation 1
3 Rolling Stock Fleet Renewal Programme Modern Fleet PRASA wants to migrate from 1950 s technology to a modern fleet which is up to world standards Programme Requirements New Fleet requirement ~7224 procurement at ~360 coaches per year for two x 10 year contracts Total ~R123.5bn over 20 year period Job Creation Creating ~ direct and indirect jobs Rolling Stock Fleet Renewal Programme Industrialisation Focus on industrialisation through long term procurement aiming for above 65% of the value of a coach to be produced locally 2
4 New Generation Rolling Stock Number R123bn programme over 20 year period First coaches Phase 1: Gibela Rail Transport Consortium coaches: roll-out over 10 years R51bn BEE partner appointed Financial / Commercial Close April 2014 Localisation (min 65%) and job creation (±60 000) M Salvaged 5M Salvaged 10M 5M 5M GO 5M GO C2 10M 10M GO 10M GO C2 New RS 3
5 Key Features of a Modern Train (1/2) Right for the PRASA railway of the future: vehicles 600 Trains 1,346 passengers per 6-car train (Metro) 1,186 passengers per 6-car train (Metro Express) Commitment to PRASA reliability targets 31% energy saving compared to 8M Rolling Stock Design life of 40 years Real time diagnostic data for maintenance planning Passenger counting for operations planning 4
6 Key Features of a Modern Train (2/2) Right for the modern passenger: Air conditioned throughout Modern visual and audio information, internal & external Infotainment on Metro Express Real-time data travel information Wi-Fi on Metro Express Designed for Universal Access Right for modern safety & security stds: Modern crashworthy energy-absorbing carbodies Automatic Train Protection Powered automatic doors Open gangways for passenger visibility CCTV coverage with 2 wks data storage Black Box event data recorder 5
7 Depot Modernisation Design and construct (5) fully functional modern maintenance depots that will be able to support and service: PRASA s new metro trains by the time the first new train sets are delivered in Cranes PRASA s existing metro trains up until MTEF R1.9bn 6
8 Signaling Renewal Current Signaling: Only 14% not exceeded design life; obsolete technology; challenge with maintenance and spares Commencing immediately with building blocks towards envisioned signaling system (in cab): Replace current signaling (interlocking). New train control centres. Increase operational safety, capacity and train performance. Align first phase signaling installation with new rolling stock delivery program. Phase 1: ± R7 billion ACTION COST (Rbn) ANTICIPATED COMPLETION Gauteng 1 R1.1 11/04/2016 Durban region R1.3 13/05/2018 W Cape region R1.8 22/05/2018 Gauteng 2 R2.7 30/06/2020 7
9 120 km/h Perway & Electrical Programme The upgrade of line speeds for PRASA network to 120km/h (160km/h for express trains on priority lines where possible) Pretoria to Germiston Section to be prioritised (Pta Jhb Express: ±20min saving) Replacement of rails, turnouts, sleepers etc. Drainage upgrading, ballast screening, refurbish rails via grinding, Re-alignment of track and capacity improvements Upgrade of OHTE and Traction Substations MTEF R1.6bn Sleeper & Rail Replacement Machine Catenary Maintenance Vehicle 8
10 Station Modernisation (including ISAMS Project) 135 stations prioritised for upgrade Phase 1: 27 Stations Kempton Park, Limindlela, Oakmore, Leralla, Olifantsfontein, Tembisa, Pretoria, Germiston, & Vereeniging Stations Station building Integrated Station Access Management Solutions Speed gates Electronic information displays PA systems CCTV Intermodal facilities, walkways / NMT Commercial opportunities MTEF R1.5bn 9
11 Agenda A Introduction to PRASA B Funding Allocation and Spending Performance C Strategic Plan D Rail Modernisation Key Projects E Challenges 10
12 Waste dumped on tracks Informal Settlement
13 Compromised reserve Right: Encroachment Below: Commuter behaviour
14 Funding Rail Operations Subsidy trends Division 2012/ /14 % change 2014/15 % change 2015/16 % change Metrorail % % % MLPS % % % Prasa Rail % % % Downscaling of Metrorail subsidy over the last few years Although 7.5% increase in Subsidy for t2015/16, subsidy decreased by 19% in real terms over the last 2 financial years NDP recommends the expansion of regional and long distance passenger rail service to link rural /urbanised areas to cities. Lack of MLPS subsidy Due Diligence Study MLPS requires R800m pa Open Rail System - Fare Evasion 13
15 Corridor Densification Network Expansion is dependent on Stakeholder Management (Taxi Industry) and Planning Authorities Motherwell Blue Downs Bara Link Moloto Corridor Spatial Development responsibilities of Local Government Optimisation of PRASA land adjacent to rail corridors Accelerated Commercialisation and Value Capture 14
16 Transnet / PRASA Relations PRASA has a Interface, contractual and commercial relationship PRASA is totally reliant on Transnet for network access and support in Metrorail Eastern Cape and for MLPS Commercial value of Transnet contracts with PRASA is worth R1bn pa Relationship between the parties has been marked with disputes on delivery by TRANSNET entities, performance and payments/debts due to Transnet. Contractual agreement between the parties is outdated, one-sided and lacks effective performance measures (original asset split between the organisations has changed substantially since 1990) Progress has been made in settling outstanding debts, re-negotiating the contracts and re-establishing management and interface structures. Priority for negotiation between the parties is for fair and discounted charges policy intervention. 15
17 Skills and Human Capital Development Additional funding for the technical and key skills required for the modernization programme. Lack of adequate accredited trains in the operational and technical field RAIL Key Technical Skills vacancies for 2015 e.g. 786 signalling skills required as per the skills analysis only 246 warm bodies currently. Rolling Stock Fleet renewal programme projected to train unemployed people in technical and operational skills Need to train 1200 additional train drivers 500 additional security personnel to be train. Signalling Project 567 additional employees to train to meet business needs Protection Services 500 additional security personnel to be trained 16
18 End Thank You The FUTURE of South African Passenger Rail is here! 17 17
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