N3 Toll Concession(RF) Proprietary Limited
Providing
Safety. Convenience. Mobility. Contents
01 Toll Roads in South Africa 02 The Asset 03 The Business Model 04 Financial Performance 05 Traffic Forecasts 06 Environmental Management 07 Corporate Social Investment 08 Public Relations and Marketing 09 Conclusions
PAGE 2 Where is South Africa? South Africa – Road Network
PAGE 4 Toll Roads in South Africa • Toll roads introduced in 1984. • Tolls based on the ‘User Pays’ principle. • Grown from 27 kilometres to 3,120 kilometres: – 1,832 km managed by SANRAL; and – 1,288 km managed by three concessionaires. • Toll roads constitute 16% of the national road network of 19,704 km.
PAGE 5 The Asset: Overview • A single purpose company. • Effective date 02 November 1999 – 30-year concession. • Cedara to Heidelberg – 415kms. • N3 links the industrial heartland in Gauteng to the country’s biggest and busiest port in Durban. • AADT varies between 11,000 and 16,000 at the plazas. • 30 – 35 % heavy vehicles (based on AADT).
PAGE 6 The Asset: Concession Contract
• Concession Contract and 26 Annexures. • Obligations -> Design, Construct, Finance, Operate and Maintain • Risks assumed by N3TC – Traffic, funding, and construction • Risks assumed by SANRAL – Delivery of site, MAGA, toll rate adjustments, and overloading
PAGE 7 Safety. Convenience. Mobility.
• Safety: the ability to travel on a world-class road, with engineering, education and enforcement forming the pillars of our drive towards a safer N3. • Convenience: the ease with which our customers – be it for recreational or commercial purposes – can travel along the N3 Toll Route. • Mobility: where traffic congestion, due to weather, construction or accident delays are minimised.
PAGE 8 Business model: Design & Construct systems • Obligation to maintain the road pavement and structures, and to provide a remaining structural capacity at the end of the Concession. • LOS D Contractual minimum Level of Service. • Pavement management: – The Pavement Management System; – Network condition monitoring – annual measurements; and – Independent reviews. • Bridge management – The Bridge Management System • Geotechnical management – The Geotechnical Management System
PAGE 9 Business Model: Toll Operations
• Toll Collection Services outsourced. • Revenue collection risk assumed by Operator. • Toll collected at four mainline and five ramp plazas. • 58,000 transactions per day. • Automatic Vehicle Classification (AVC). • Video Toll Audit System (VTAS). • Queue Length Monitoring. • Electronic Toll Collection (ETC).
PAGE 10 Business Model: Traffic Management
• Operations 24/7: – Traffic counts and weigh in motion data; – Route control centre – 0800 N3 HELP; – Route patrol service; – Road Incident Management System; • Incident Reporting Information System (IRIS). • Variable message signs and CCTV. • Average speed enforcement. • PPP with law enforcement agencies.
PAGE 11 Traffic Management: Crash Rate
Crashes/100 M.V.Km January to June 60.0
50.0
40.0
30.0
20.0 Crash Rate
10.0
0.0 2010 2011 2012 2013 2014 2015 Crash Rate 52.7 54.4 50.2 49.0 46.9 45.2 Traffic Management: Fatalities
22 Fatalities/100 M.V.Km January to June 9.00 8.00 7.00 6.00 5.00 4.00 Fatality Rate Fatality 3.00 2.00 1.00 0.00 2010 2011 2012 2013 2014 2015 Fatality Rate 7.38 7.84 6.54 6.04 5.64 4.66 Traffic Management: Critical Date Planner
Inland Schools Gauteng,Limpopo,North west, Mpumalanga, Free State Potential leave Special Events N3TC :CRITICAL DATES YEAR PLANNER : REV 2: 8 JANUARY 2015 Coastal Schools KZN, Eastern Cape, Northern Cape, Western Cape Public holidays Only Cedara to Tugela 2015 Cedara to Heidelberg Only Cedara to Mooi Only Cedara to Lions River
DAY Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 New Year's Day
Jan-15 C A A A C Bs/Cn C Bs/Cn Cs Cn Cs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Midmar Race
Feb-15 Cn A B B C B Cs Cn Cs Cn Cs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Human Rights
Mar-15 Cn Cs Cn Cs Cn Cs Cn A A
1 2 3 4Good Friday5 6 7Family Day8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Freedom Day
Apr-15 A A A C B A C Cs A Cs Cn A A A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Comrades Marathon Worker's Day May-15 A A Cs Cn Cs Cn Cs Cn Bs/Cn B B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Youth17 Day 18 19 20 21 22 23 24 25 26 27 28 29 30 Jun-15 Bn/Cs Bn Cs Cn B B Cs Cn A C
2015 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Durban July
Jul-15 A B A Cs Cn C A Cs Cn 1 2 3 4 5 6 7 8 9 10 11Public Holiday12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Traffic to peak from 14:00 Women Day to 18:00: Vehicles on SB greater than 1000 vehicles per hour (2014 data used) Aug-15 Cn A A Cs Cn Cs Cn Cs Cn 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Heritage Day
Sep-15 Cs Cn Cs Cn Cs Cn A A C A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Oct-15 A C C A Cs Cn Cs Cn 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Nov-15 Christmas Cn Cs Cn Cs Cn Cs Cn Cs Cn
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17Day of Reconciliation18 19 20 21 22 23 24 25 26 27Day of 28 29 30 31 Goodwill
Dec-15 C C B B A A A A B B A A A A A C C A A A B B B LEGEND A = Extremely busy - Unlikely to solve B = Very busy C = Moderately busy, roadway should n = Northbound Example B n = Very busy northbound total demand, delays likely normally cope, beware incidents ! s = Southbound where lower case omitted, both directions are implied
14 Traffic Management: Driver Wellness Programme • Voluntary Program • State of driver health. • Important link in understanding unacceptable number of crashes involving trucks. • Address driver health in a sustainable, co-ordinated manner. • Reduce the number of health-related crashes. • Improve the morale and quality of life of drivers. • A safer Route for all. Finance • At Inception – debt/equity ratio was 83/17. • Fixed rate and CPI linked debt. • Financial model update: six-monthly. • Preference share issue. • Refinancing. • Hedging.
PAGE 16 Traffic Forecasts • Forecasts generated using a Forecast traffic: example only traffic model developed over the Concession Period. 120,000 8.0% • Traffic model updated by an 90,000 6.0% AADT independent consultant using 60,000 4.0% GDP-Traffic Regression 30,000 2.0%
methodology. - 0.0% 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F • Capacity Upgrades 2014A
Class 1 Class 2 Class 3 Class 4 Year-on-Year growth (rhs)
PAGE 17 Environmental Management
• Environmental – Environmental Management Plan. – Compliance monitoring by Independent Environmental Consultant. – Use of reclaimed asphalt and steel slag. – Initiatives with Birdlife SA, Midlands Conservancies Forum, Endangered Wildlife Trust, Wildlands Conservation Trust. • Health and safety – Ongoing audits.
PAGE 18 Corporate Social Investment: Touching Lives • Priority areas – Education – Tourism – Environment – Enterprise Development • Review of 2014 Activities – Number of CSI projects: 78 – Number of lives touched 74,000 – Number of CSI Jobs created: 640 full time and 462 part time – 10 bursaries awarded – CSI Spend: R10million • Targets set by SANRAL exceeded • N3 Gateway
PAGE 19 Public Relations and Marketing
Value Proposition – Brand Awareness – Reputation • Align activities with business purpose and values. • Radio and print media releases – Tracking of + and – media • Sponsorships and community event support. • Media tours. • Social media – Twitter handle @N3Route (48,000 followers) – Facebook – YouTube • Mobility mobile application. • N3TC website.
PAGE 20 Conclusions • Service level improvements on congested facilities: – Congestion relief – Level of Service (Capacity constraints) – Enhanced customer value and experience • Customers vs Road users. • Research-informed customer service interventions. • Value for money - more than a Road...Safety. Convenience. Mobility. • Innovation – keep it simple, it does still work!
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