ACHIEVING SIGNIFICANT PUBLIC TRANSPORT IMPROVEMENTS IN CAPE TOWN Progress Key lessons learned Challenges and risks City of Cape Town 12th September 2017 [v3.2 20170911]

Presentation outline Project Progress Key Lessons Learnt Challenges & Risks

1. Project Progress Current MyCiTi services Operational performance Improved efficiencies Project successes

CURRENT MYCITI SERVICES – PHASE 1 AND N2 EXPRESS Atlantis 18m 12m 9m Table View / Du Noon Century City Joe Slovo Airport Inner City & Sea Point Khaye-litsha Mitchells Plain Camps Bay Hout Bay

MYCITI SERVICES LOW INCOME AREAS Overall, 50% of all passengers using MyCiTi on a daily basis reside in low income areas.

MYCITI QUARTERLY PASSENGER JOURNEYS 2011 TO 2017 * * Bus drivers’ strike from in April 17 resulted in this drop in pax numbers A passenger journey is the full journey from origin to destination and often includes trunk and feeder segments

Phase 1 & N2 Express Statistics Infrastructure and vehicles Number of peak vehicles 255 Bi-directional dedicated lanes 31.4 kms Number of MyCiTi stations 42 Number of MyCiTi routes 40 Number of MyCiTi depots 3 Number of public transport interchanges 4 Park and rides 12 Kms of cycle lanes 140 kms Hectares of land purchased 20.3 Some operational statistics: MyCiTi BRT (July. 2017) Passenger journeys Nov 2013 to July 2017 61.6 million Passenger journeys per average weekday 74 171 Drivers employed 559 Peak hour travel time: Table View to Civic Centre By car Approx. 1 hr MyCiTi all stops bus  35-37 mins MyCiTi express bus 27-29 mins  Compared to Gautrain average of 54 799 passengers per weekday (2015/16)

INCREASING COST RECOVERY Fare revenue in Phase 1 and N2e covers increasing proportion of direct operating Cost recovery on T01 trunk route approx. 80% Nov 2013 to Oct 2016

PROJECT SUCCESSES Provides clear evidence that government is serious about providing quality and car competitive public transport services Passenger satisfaction with high quality, reliable, all day services High levels of utilisation of trunks Attracting significant numbers of private motorists Significant travel time improvements on trunk routes in peak hours New competitive business model for public transport Integrated fare system with multiple operators which can extend to other PT modes and other functions i.e. parking Driver of new institutional arrangements at local government level Facilitates integration between transport and land use Universal accessibility through level boarding

2. Key Lessons learned Review of the original BRT model IPTN Business Plan Multi-Year Financial Operational Plan (MYFIN)

KEY LESSONS LEARNED Review of the original BRT model Phase 1 very successful but scheduled feeders have low cost recovery ratio Solution is multi-modal approach for future phases Focus on trunk services, supported by: Core and high demand scheduled feeder services with priority lane measures; Rationalized Quality Bus services; and On-demand Minibus-taxis to play a feeder and/ or distribution services. City must play central coordination and integration role between modes Requires assignment of Regulatory and Contracting functions to achieve structured integration between BRT, Quality Bus, taxis and rail City’s role as integrating authority includes combining functions of transport, land use and human settlements Led to formation of the Transport and urban Development Authority (TDA) in Cape Town (Jan 2017)

KEY LESSONS LEARNED Review of the original BRT model Compliance with DORA conditions a legal requirement for cities to receive PTNG allocation: Integrated Public Transport Network plan and strategy must show financial sustainability and be approved by municipal council [IPTN] Projects must be based on an operational and business plan, which must include a multi-year financial operational plan approved by municipal council. [MYFIN] CT Council approved its IPTN Business Plan and MYFIN reports in Aug 2017. It found this process very helpful to understand operating costs and adjust plans to ensure fiscal and financial sustainability Following slides extract from IPTN and MYFIN

IPTN BUSINESS PLAN Integrated public transport methodology Passenger Rail Bus Rapid Transit and Quality Bus City-wide integration, infrastructure, strategic management Focus public resources on trunk services and a limited number of high order feeder and direct services Most feeder (and some trunk) demand will be provided by minibus-taxis and ‘new generation’ services – which will not receive operating subsidies Assumes high proportion (more than 2/3) of minibus taxis continue to operate, increasingly adopting ‘New Generation’ technologies City to manage overall, integrated, multi-modal network, including indirect services Minibus-Taxis & new generation services

Trunk: Rail City’s Public Transport Backbone Blue Downs link must be implemented in short-medium term Major operational improvement required throughout system to reverse decline Blue Downs rail extension provides a critical trunk north-south link that provides access for low income areas to employment opportunities in the north whilst reducing the travel times for current commuters - Dependency on PRASA to initiate detail design work to facilitate implementation over medium term. Request to support provisions in PRASA capital budget - Support value for money analysis in relation to the rail capital expansion programme to ensure highest return on investment – economically, socially and spatially Ensure funds follow function in function shift for contracting authority and MRE Provide for greater certainty and flexibility in capital grant allocation to promote spatial transformation Extend integrated fare system to rail City involvement to ensure integration and quality

Bus Rapid Transit: along key corridors Long term network vision: BRT trunks to fill in network not covered by rail Comparative advantage in serving fairly dense corridors with high seat renewal 15

integrate GABS into network Quality Bus: integrate GABS into network Core feeders and direct services Integration with MyCiTi BRT trunks Easy transfers Ticketing integration Timetable integration Branding integration (irrespective of VOC) Same infrastructure (1 system) Real time information and monitoring Requires assignment of Contracting Function

Hybrid minibus-taxi solutions New Generation Services Minibus taxis will form a key part of the envisaged system Hybrid minibus-taxi solutions New Generation Services Well positioned to benefit from “New Generation” technologies Transformation of industry Infrastructure must be designed for their integration into the network

Envisaged Information Technology platforms The platform is to facilitate: Integration between modes Route planning Better matching of supply and demand Fare payment

IPTN BUSINESS PLAN Levers for success Scheduled feeders: Reduce extent of scheduled MyCiTi feeders, increase direct services – facilitate new generation services (fewer scheduled feeders, increased use of direct services, extensive use of New Generation minibus-taxi services supported, investment in e-hailing technology) Bus operating variables (increase speed, larger vehicles, ensure buses are full in the peak and less positioning kms) Competitive Vehicle Operating Company rates (reduce VOC rates through competitive tendering) Reduce indirect costs (reduce cost of station management, fare management, enforcement, oversight) Sensitivity to land use scenarios, transit oriented development and transport demand management (improved reverse flow, seat renewal, reduction in travel distance and in demand, widen times of travel) Non-fare revenue funding increased (Additional rates income, widen parking management, securing additional revenue sources)

IPTN BUSINESS PLAN COST MODELLING FOR FULL SYSTEM Contribution to operating deficit after deducting fare income and other funding from costs Positive swing Negative swing -R6,000 R5,000 R4,000 R3,000 R2,000 R1,000 R0 -R1,000 -R2,000 -R3,000 R-4,000 -R5,000

400 subsidised scheduled feeders IPTN BUSINESS PLAN COST MODELLING FOR FULL SYSTEM Contribution to operating deficit after deducting fare income and other funding from costs 400 subsidised scheduled feeders Full feeders No scheduled feeders Scheduled feeders Positive swing Negative swing -R6,000 R5,000 R4,000 R3,000 R2,000 R1,000 R0 -R1,000 -R2,000 -R3,000 R-4,000 -R5,000

400 subsidised scheduled feeders IPTN BUSINESS PLAN COST MODELLING FOR FULL SYSTEM Contribution to operating deficit after deducting fare income and other funding from costs 400 subsidised scheduled feeders Full feeders No scheduled feeders Scheduled feeders Bus operating variables Positive swing Negative swing -R6,000 R5,000 R4,000 R3,000 R2,000 R1,000 R0 -R1,000 -R2,000 -R3,000 R-4,000 -R5,000

400 subsidised scheduled feeders IPTN BUSINESS PLAN COST MODELLING FOR FULL SYSTEM Contribution to operating deficit after deducting fare income and other funding from costs 400 subsidised scheduled feeders Full feeders No scheduled feeders Scheduled feeders Bus operating variables Competitive VOC rates Positive swing Negative swing -R6,000 R5,000 R4,000 R3,000 R2,000 R1,000 R0 -R1,000 -R2,000 -R3,000 R-4,000 -R5,000

400 subsidised scheduled feeders IPTN BUSINESS PLAN COST MODELLING FOR FULL SYSTEM Contribution to operating deficit after deducting fare income and other funding from costs 400 subsidised scheduled feeders Full feeders No scheduled feeders Scheduled feeders Bus operating variables Competitive VOC rates Business as usual Full TODC Land use and travel demand patterns TODC achievable by 2032 Positive swing Negative swing -R6,000 R5,000 R4,000 R3,000 R2,000 R1,000 R0 -R1,000 -R2,000 -R3,000 R-4,000 -R5,000

400 subsidised scheduled feeders IPTN BUSINESS PLAN COST MODELLING FOR FULL SYSTEM Contribution to operating deficit after deducting fare income and other funding from costs 400 subsidised scheduled feeders Full feeders No scheduled feeders Scheduled feeders Bus operating variables Competitive VOC rates Business as usual Full TODC Land use and travel demand patterns TODC achievable by 2032 Non-fare revenue funding Positive swing Negative swing -R6,000 R5,000 R4,000 R3,000 R2,000 R1,000 R0 -R1,000 -R2,000 -R3,000 R-4,000 -R5,000

400 subsidised scheduled feeder buses IPTN BUSINESS PLAN: SENSITIVITIES TO OPERATING COSTS Contribution to operating deficit after deducting fare income and other funding from costs 400 subsidised scheduled feeder buses Full feeders No scheduled feeders Scheduled feeders Bus operating variables Competitive VOC rates Business as usual Full TODC Land use and travel demand patterns TODC achievable by 2032 Non-fare revenue funding Positive swing Negative swing -R6,000 R5,000 R4,000 R3,000 R2,000 R1,000 R0 -R1,000 -R2,000 -R3,000 R-4,000 -R5,000

THE IPTN BP 10 POINT PLAN ONE integrated, multimodal network 9. Revenue optimization 10. Regulation, Enforcement, Network Management 8. Physical priority for public transport 1. Enhancing demand patterns (TOD* and TDM) 7. IT/tech strategies/ AFC 2. Rail TOD, TDM: Improved reverse flow, seat renewal, reduction in travel distance and demand, peak spreading Rail: High volume, peak, long distances – capacity and operational efficiency, north south links, PRASA responsibility BRT: High volume movers, create precincts and corridors for TOD Quality Bus: Core feeders and direct services, peak only depending on design, integrated ticketing and services MBT: Part of IPTN, demand responsive and flexible, e-hailing technology, infrastructure support to increase mobility NMT: walking and cycling Technology: Integrated ticketing, route planning, match supply and demand, collectivized services Physical priority for all public transport, BMT lanes – mixed 11% capacity of BMT lanes Revenue optimization Regulation, enforcement and network management – local government functional alignment 6. NMT 3. BRT along key corridors 5. ‘Hybrid’ minibus taxi solutions 4. Quality Bus

MULTI-YEAR FINANCIAL OPERATIONAL PLAN (MYFIN) MyCiTi Phase 1, N2e, Phase 2A, s46 GABS Financial analysis of operating costs/revenues up to 2032/33 (i.e. until Ph2A VOC 12 year contracts are likely to end in accordance with DORA conditions) Business Parameters for design of Phase 2A BRT, Quality Bus and New Generation services Capital availability and rollout plan for integrated Ph2A services

Phase 2A: Future services to low-income areas IPTN implementation: Prioritisation of corridors that serve areas with low income households. Phase 2A - trunk routes (T11 and T12) supported by a feeder network. Connects the low income areas of Khayelitsha, Gugulethu, Nyanga, Crossroads, and Philippi as well as areas such as Mitchells Plain, Manenberg and Hanover Park to economic opportunities to the west at Wynberg, Claremont, and surrounding areas along the corridor. Phase 2a areas served

MYFIN: OPERATING COSTS/REVENUES Ph1, N2e, Ph2A, QBS (s46) & NG services MYFIN shows that Phase 2A is able to cover direct operational costs from fare revenue and city contribution, i.e. meets NDOT and MFMA sustainability criteria – provided certain criteria are met: Re-assignment of Contracting Function and PTOG essential, incl. transitional costs for QBS equipment and vehicle recapitalisation Grant funding assumptions re: PTNG and PTOG remain stable, no real growth (only CPI), 25% of discretionary portion of PTNG assumed for initial years, PTNG operational expenditure capped (to ensure timeous roll-out) Increase in City Rates contribution on direct costs up to 5% in 2024/25 Additional sources of funding secured Parameters: Support TOD – mobility and activity corridors, absolute and relative speeds, hybrid approach, incrementalism, efficiency and convenience.

CAPITAL AVAILABILITY - ROLLOUT OF PHASE 2A SERVICES BFI Funding

Requires urgent assignment of s46 contracts, and PTOG subsidy Projected growth in passenger trips for MyCiTi Ph1, Ph2A, Quality Bus and New Generation services Requires urgent assignment of s46 contracts, and PTOG subsidy

3. Challenges and Risks Grant funding stability and certainty Alignment of National specifications to adjusted approach Fragmentation of institutional responsibilities Failure to assign s46 Contracting Function Passenger rail continues to decline, failure to assign Rail in terms of the Rail draft White Paper

GRANT FUNDING STABILITY AND CERTAINTY DORA allocation to Cape Town for PT investment Application for discretionary allocation of PTNG (25% = R329m) DORB allocation proposed in 2018/19 (R807m) Current Rands i.e. escalated per year Excludes adjustment funding

GRANT FUNDING STABILITY AND CERTAINTY Critical towards delivery of Integrated Urban Development Framework

GRANT FUNDING STABILITY AND CERTAINTY DORA allocation to Cape Town for PT investment Cities are the engine of the economy. Engines requires integrated land-use and transport planning to ensure efficient movement of people. Cities can only work effectively if they improve public transport and facilitate TOD linked to public transport improvements. Cities cannot fund public transport by themselves. Supported by international precedent. Thus, to help turn around the economic downturn cities need more public transport support from the National fiscus, not less. Implications of reduced grant funding Untenable rollout delays (>15 years) Public transport continues to deteriorate Reduced economic growth Accelerated apartheid restructuring and TOD not possible for next decade Recommendation to Increase PTNG allocation to key metro’s Award discretionary allocation from PTNG based on performance Develop other funding sources (i.e. Budget Facility for Infrastructure (BFI))

FRAGMENTATION OF INSTITUTIONAL RESPONSIBILITIES Different levels of government are responsible for different modes of public transport Passenger Rail (PRASA – National) – assignment to City in terms of new draft Rail White Paper is supported Legacy s46 bus services (Provincial) BRT (City) But, cities need coordinated planning, implementation and operations that prioritises resources across all modes, and integrates modes (ticketing, scheduling etc.) The NLTA envisages the assignment of the PTOG funded s(46) contracts to cities The NLTA does not provide for renegotiation of contracts whilst still with provinces The current contract is not designed to facilitate integration with MyCiTi

IMPLICATIONS OF FAILURE TO ASSIGN s46 CONTRACTING FUNCTION Integration between s41 and s46 services (trunks and feeders) not possible without assignment. City has insufficient leverage to ensure Fare integration: cash/clipcard to AFC system Route and timetable integration: routes and schedules of provincially subsidised services cannot be optimally aligned with MyCiTi routes Service quality standards: appropriate contractual mechanisms not in place to ensure high quality of service, and real time information and monitoring between modes not possible Vehicle re-capitalisation: ensuring appropriate bus types are purchased to enable s(46) contracted service to use MyCiTi infrastructure, to dock at stations; and provide universal access Branding integration TDA has followed the process set out in the NLTA for the Assignment of the Contracting function for s(46) contracted bus services. The assignment and associated PTOG funding was agreed by all relevant parties (FFC, NT, CoGTA) over 3 years ago.​ Notwithstanding full compliance with the NLTA, the Minister of Transport has not yet signed off the assignment The assignment is now long overdue and creates a problem to ensure the roll-out towards an integrated public transport network service Recommendation Transport PC requested to assist to unblock Contracting Assignment function

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