Agenda

A Introduction to PRASA

B Funding Allocation and Spending Performance

C Strategic Plan

D Rail Modernization

E Challenges

0 Rail Modernisation

1 Rolling Stock Fleet Renewal Programme

Modern Fleet Programme Requirements • PRASA wants to migrate from • New Fleet requirement ~7224 1950’s technology to a modern procurement at ~360 coaches per fleet which is up to world year for two x 10 year contracts standards • Total ~R123.5bn over 20 year period

Rolling Stock Fleet Renewal Programme Job Creation Industrialisation • Creating ~65 000 direct and • Focus on industrialisation through indirect jobs long term procurement aiming for above 65% of the value of a coach to be produced locally

2 New Generation Rolling Stock

• R123bn programme over 20 year period 8 000 • First coaches 2016 7 000 6 000 • Phase 1: Gibela Rail Transport Consortium 5 000 • 3600 coaches: roll-out over 10 years Number 4 000 • R51bn 3 000 • BEE partner appointed 2 000

• Financial / Commercial Close – April 2014 1 000

• Localisation (min 65%) and job creation -

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 (±60 000) 8M Salvaged 5M Salvaged 10M 5M 5M GO 5M GO C2 10M 10M GO 10M GO C2 New RS 3 Key Features of a Modern Train (1/2)

Right for the PRASA railway of the future: • 3 600 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 Key Features of a Modern Train (2/2)

Right for the modern passenger: Right for modern safety & security stds: • Air conditioned throughout • Modern crashworthy energy-absorbing • Modern visual and audio carbodies information, internal & external • Automatic Train Protection • Infotainment on Metro Express • Powered automatic doors • Real-time data travel information • Open gangways for passenger visibility • Wi-Fi on Metro Express • CCTV coverage with 2 wks data storage • Designed for Universal Access • “Black Box” event data recorder

5 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 2016. – PRASA’s existing metro trains up until 2034. – MTEF R1.9bn

6 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

7 120 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) 4 – to Section to be prioritised (Pta – Jhb Express: ±20min saving) 3 • Replacement of rails, turnouts, sleepers etc. • Drainage upgrading, ballast screening, refurbish rails via grinding, 2 • Re-alignment of track and capacity improvements • Upgrade of OHTE and Traction Substations • MTEF – R1.6bn 1

Sleeper & Rail Replacement Machine Catenary Maintenance Vehicle

8 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 Agenda

A Introduction to PRASA

B Funding Allocation and Spending Performance

C Strategic Plan

D Rail Modernisation – Key Projects

E Challenges

10 Informal Settlement

Waste dumped on tracks Compromised reserve

Right: Encroachment

Below: Commuter behaviour Funding Rail Operations

Subsidy trends

Division 2012/13 2013/14 % change 2014/15 % change 2015/16 % change

Metrorail 2 072 712 438 2 611 382 130 26.0% 2 760 013 045 5.7% 2 966 957 800 7.5%

MLPS 424 000 000 650 000 000 53.3% 0 -100.0% 0 -100.0%

Prasa Rail 2 496 712 438 3 261 382 130 30.6% 2 760 013 045 -15.4% 2 966 957 800 7.5%

• Downscaling of 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 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 / PRASA Relations

• PRASA has a Interface, contractual and commercial relationship

• PRASA is totally reliant on Transnet for network access and support in Metrorail 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 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 19500 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 End – Thank You

The FUTURE of South African Passenger Rail is here!

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