PRASA Challenges & Opportunities Standing Committee on Appropriations 25 th March 2015
Agenda A Introduction to PRASA B Funding Allocation and Spending Performance C Strategic Plan D Rail Modernisation Key Projects E Challenges 1
PRASA the Passenger Rail Agency of South Africa PRASA Structure PRASA GROUP PRASA RAIL PRASA TECHNICAL AUTOPAX (Long distance coach) PRASA CRES INTERSITE INVESTMENTS R/Stock engineering and maintenance Capital Projects Translux City to City Real Estate Solutions Facilities Management Leverage investment on assets METRORAIL (Suburban) S-MEYL (Long distance) The Primary object of PRASA in terms of the Legal Succession SATS 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 is to: Generate income from the exploitation of assets acquired by PRASA 2
PRASA Summary Fact Sheet Total Rail Network Commuter Rail Network 22 300 Km Number of Metro Coaches 4 638 Number of MLPS coaches 2 230 km electrified track 1 223 Coaches and 124 Locos Number of Buses 458 Mercedes Benz, Man 109 and Old Fleet 150 Passenger Numbers Total Number of Employees ±16 500 Stations Metrorail 550 million passenger trips Bus Service 3.1 million passengers SMEYL 1.1 million passengers 498 stations Value of Assets R36bn 3
Agenda A Introduction to PRASA B Funding Allocation and Spending Performance C Strategic Plan D Rail Modernisation Key Projects E Challenges 4
Funding Allocation 2014/15 Allocation Amount Received Internal Revenue Total Revenue Total Expenditure Current Allocation 3 563 397 3 420 799 6 984 196 7 856 462 Current Allocations amounted to 51% of PRASA's total revenue as at 28 February 2015. The rest of the revenue is mainly made up of Fare Revenue and Rental Income which are internally generated. Total Expenditure is mainly made up of Employee costs, Energy costs, Material and Maintenance and Municipal charges. Allocation Amount Received Actual Expenditure Capital Allocation 10 598 582 11 383 761 Total expenditure for the period that ended on 28 February 2015 exceeds the funding allocation by R785 million. The major spending items were Rolling Stock Fleet Renewal Programme R5.7 billion Acquisition of New Locomotives R1.4 billion General Overhaul of Coached R702 million Integrated Station Access Management Systems R735 million Signalling and Telecommunications programme R488 million 5
Budget Framework over the 2015 MTEF Table1: Budget Framework over the 2015 MTEF Budget Fram ew ork 2014/15 2015/16 2016/17 2017/18 Total R thousands Adjusted Budget Medium-Term Expenditure MTEF Framew ork 2015 MTEF Baseline (after reduction) 11 058 959 14 155 887 14 958 602 15 707 896 44 822 385 2015 MTEF Baseline (before reduction) 14 203 547 15 010 421 15 760 943 44 974 911 Capital Baseline Reduction -47 660-51 819-53 047-152 526 2014 Baseline for New Rolling Stock 4 348 000 4 522 000 4 815 752 5 056 540 14 394 292 Year-on-year increase 28.0% 5.7% 5.0% Adjustm ent New Rolling Stock Cashflow Adjustment 1 351 959-1 961 492-645 486-636 058-3 243 036 Capital Baseline Reprioritization 1 961 492 645 486 636 058 3 243 036 2015 Baseline for New Rolling stock 5 699 959 2 560 508 4 170 266 4 420 482 11 151 256 Commitments Projected commitments into the 2015/16 8 502 558 0 0 8 502 558 Available budget 11 058 959 14 155 887 14 958 602 15 707 896 44 822 385 Notes The Framework was used to guide the budgeting process. Reprioritisation to projects was conducted, based on project priorities, project cash flow requirements and future potential commitments Overall growth in capital expenditure has increased by 11.3% per cent when compared to the 2014 MTEF of R40 billion. 6
Investment Outlook Infrastructure vs. Rolling Stock Investment Outlook 42,5% 57,5% Programmes Overview Infrastructure Corridor Modernization Programme Capital Intervention Programme Station Improvement and Upgrade Programme Rail Network Extensions Depots Programme Workplace Improvement Programme Electrical Programme Rolling Stock Rolling Stock Fleet Renewal Programme Accelerated Rolling Stock Programme New Locomotives 7
PRASA Corporate Capital Programme 2015/16 2016/17 2017/18 Total MTEF PRASA Corporate 4 976 697 393 6 532 160 107 6 882 089 713 18 390 947 213 Rolling Stock Fleet Renew al Programme 2 560 508 293 4 170 266 732 4 420 482 736 11 151 257 761 Signalling and telecommunications Programme 1 875 973 200 1 844 184 241 1 912 835 295 5 632 992 736 ICT Systems 270 503 900 286 734 134 303 938 182 861 176 216 Enterprise Resource Planning (ERP) 88 587 000 40 794 000 43 241 640 172 622 640 Asset Protection Programme 181 125 000 190 181 000 201 591 860 572 897 860 Note: The Integrated Ticketing System Programme is one of the key drivers for ICT over the 2015MTEF R6.5bn R6.9bn R5.0bn 8
PRASA Rail Capital Programme 2015/16 2016/17 2017/18 Total MTEF PRASA Rail 1 681 777 625 1 690 424 085 1 791 849 530 5 164 051 240 Capital Intervention Programme (minor w orks, safety & SNP) 584 496 125 403 720 800 427 944 048 1 416 160 973 Depots Machinery and Equipments 75 000 000 80 000 000 84 800 000 239 800 000 New Locomotives 562 281 500 719 103 285 762 249 482 2 043 634 267 Rolling Stock Adhoc Condition Work 160 000 000 169 600 000 179 776 000 509 376 000 Rolling Stock Components 300 000 000 318 000 000 337 080 000 955 080 000 R1.7bn R1.7bn R1.8bn 9
PRASA Technical Capital Programme 2015/16 2016/17 2017/18 Total MTEF PRASA Technical 4 722 394 156 4 408 605 608 4 705 695 037 13 836 694 801 General overhaul of Metrorail Coaches 1 267 474 223 1 283 522 676 1 360 534 037 3 911 530 936 Refurbishment of Smeyl Coaches 217 329 000 103 750 000 151 415 304 472 494 304 Depots Modernization (5 depots, incl fencing) 1 336 378 316 804 305 000 939 373 441 3 080 056 757 Electrical Programme: Substation, New Overhead Lines & OHTE 323 578 500 342 087 000 362 612 220 1 028 277 720 Footbridges, Level Crossings and Structures 122 708 250 129 727 000 137 510 620 389 945 870 Metrorail/Gautrain Stray Current Mitigation 67 543 567 42 094 626 0 109 638 193 Station Modernization Programme (135 stations) 722 986 300 764 341 116 740 201 583 2 227 528 999 120km Perw ay Programme 310 000 000 327 732 000 347 395 920 985 127 920 Green View - Pienaarspoort Project 181 006 000 117 356 000 0 298 362 000 Queenstow n - Umtata 58 390 000 60 297 000 60 795 960 179 482 960 Bridge City 55 000 000 65 000 000 0 120 000 000 Motherw ell Rail Extension 60 000 000 368 393 190 605 855 952 1 034 249 142 R4.7bn R4.4bn R4.7bn 10
PRASA Corporate Real Estate Capital Programme 2015/16 2016/17 2017/18 Total MTEF PRASA Corporate Real Estate 2 775 017 826 2 327 412 000 2 328 260 720 7 430 690 546 Station Improvement Programme 334 432 350 370 572 000 392 806 320 1 097 810 670 Station upgrades/ developmental acqusitions 484 160 200 385 350 000 408 471 000 1 277 981 200 Upgrade of Park Station 360 500 000 426 121 000 483 488 260 1 270 109 260 Workplace Improvement Programme (incl facilities) 406 279 375 414 093 000 423 938 580 1 244 310 955 Property Acquisition 197 189 468 - - 197 189 468 Integrated Station Access Management System (ISAMS) 882 456 433 614 676 000 619 556 560 2 116 688 993 Mabopane Station Upgrade 110 000 000 116 600 000-226 600 000 R2.8bn R2.3bn R2.3bn 11
2015 MTEF Capital Programme Capital Programme 2015/16 2016/17 2017/18 Total MTEF PRASA Corporate 4 976 697 393 6 532 160 107 6 882 089 713 18 390 947 213 Rolling Stock Fleet Renewal Programme 2 560 508 293 4 170 266 732 4 420 482 736 11 151 257 761 Signalling and telecommunications Programme 1 875 973 200 1 844 184 241 1 912 835 295 5 632 992 736 ICT Systems 270 503 900 286 734 134 303 938 182 861 176 216 Enterprise Resource Planning (ERP) 88 587 000 40 794 000 43 241 640 172 622 640 Asset Protection Programme 181 125 000 190 181 000 201 591 860 572 897 860 PRASA Rail 1 681 777 625 1 690 424 085 1 791 849 530 5 164 051 240 Capital Intervention Programme (minor works, safety & SNP) 584 496 125 403 720 800 427 944 048 1 416 160 973 Depots Machinery and Equipments 75 000 000 80 000 000 84 800 000 239 800 000 New Locomotives 562 281 500 719 103 285 762 249 482 2 043 634 267 Rolling Stock Adhoc Condition Work 160 000 000 169 600 000 179 776 000 509 376 000 Rolling Stock Components 300 000 000 318 000 000 337 080 000 955 080 000 PRASA Technical 4 722 394 156 4 408 605 608 4 705 695 037 13 836 694 801 General overhaul of Metrorail Coaches 1 267 474 223 1 283 522 676 1 360 534 037 3 911 530 936 Refurbishment of Smeyl Coaches 217 329 000 103 750 000 151 415 304 472 494 304 Depots Modernization (5 depots, incl fencing) 1 336 378 316 804 305 000 939 373 441 3 080 056 757 Electrical Programme: Substation, New Overhead Lines & OHTE 323 578 500 342 087 000 362 612 220 1 028 277 720 Footbridges, Level Crossings and Structures 122 708 250 129 727 000 137 510 620 389 945 870 Metrorail/Gautrain Stray Current Mitigation 67 543 567 42 094 626-109 638 193 Station Modernization Programme (135 stations) 722 986 300 764 341 116 740 201 583 2 227 528 999 120km Perway Programme 310 000 000 327 732 000 347 395 920 985 127 920 Green View - Pienaarspoort Project 181 006 000 117 356 000-298 362 000 Queenstown - Umtata 58 390 000 60 297 000 60 795 960 179 482 960 Bridge City 55 000 000 65 000 000-120 000 000 Motherwell Rail Extension 60 000 000 368 393 190 605 855 952 1 034 249 142 PRASA Corporate Real Estate 2 775 017 826 2 327 412 000 2 328 260 720 7 430 690 546 Station Improvement Programme 334 432 350 370 572 000 392 806 320 1 097 810 670 Station upgrades/ developmental acqusitions 484 160 200 385 350 000 408 471 000 1 277 981 200 Upgrade of Park Station 360 500 000 426 121 000 483 488 260 1 270 109 260 Workplace Improvement Programme (incl facilities) 406 279 375 414 093 000 423 938 580 1 244 310 955 Property Acquisition 197 189 468 - - 197 189 468 Integrated Station Access Management System (ISAMS) 882 456 433 614 676 000 619 556 560 2 116 688 993 Mabopane Station Upgrade 110 000 000 116 600 000-226 600 000 Total 14 155 887 000 14 958 601 800 15 707 895 000 44 822 383 800 2015 MTEF Allocation 14 155 887 000 14 958 601 800 15 707 895 000 44 822 383 800 12
2015 MTEF Capital Programme 13
Economic Development Impacts Job Creation PRASA s Capital Programme s will have a strong emphasis on Job Creation and Economic Development Job Creation will be measured throughout the Programmes, based on the following: o o o Job Creation quantum will be measured throughout the Programmes using consistent measurement principles Quarterly reporting on Job Creation numbers Targets to be set during procurement phase and monitored throughout implementation Furthermore, it is targeted that a full report on Job Creation will be submitted on all key Capital Programmes by the end of the first quarter of 2015/16 Financial Year 14