1. SARCC Strategic Plan and Budget: 2008/09
Portfolio Committee on Transport “Accelerating the Momentum for Change”
12 March 2008

2. Table of Contents Introduction Key Features of SARCC
Strategic Focus of Consolidation
Key Highlights for 2007/08
Challenges facing Commuter Rail
Turning Rail Passenger Transport Around
Strategic Initiatives
MTEF Allocation and Budget
Conclusion

3. INTRODUCTION Stabilisation Phase well on course
Visible improvements due to Turn Around Strategy
Public investment in rail on the increase
Well functioning rail passenger transport critical
growing economy
congestion
rising fuel costs

4. Key Features of SARCC 2 860 km of the rail network (15%)
owns over 470 stations countrywide
Total fleet is coaches (409 train sets)
only coaches (270 train sets) available
2.2 million passenger trips per weekday
Five Regions:
South Gauteng (Wits)
Northern Gauteng (Tshwane)
Durban
Eastern Cape (PE & East London)
Western Cape
Book Value of Assets about R8 billion

5. Strategic Focus of Consolidation
Cabinet decision of December 2004 to consolidate passenger rail entities in two phases:
Successful completion of SARCC & Metrorail merger – 1st May 2006
Shosholoza Meyl transfer to SARCC due on 1st April 2008
Consolidation process culminates this year in the establishment of an integrated passenger transport company

6. Strategic Focus of Consolidation Cont…
The National Passenger Transport Company will play the following strategic roles:
Provide integrated transport solutions
Be a lever to drive Public Transport Strategic Goals
Integration
Accessibility
Affordability
Safety
Plan, Develop and Invest in Rail Infrastructure
Owning and Managing Rail Assets
Contribute to land use integration

7. Strategic Focus of Consolidation Cont…
The Integrated Passenger Transport Company will provide the following services:
Commuter Rail (Metrorail) will remain at the core of the business
Regional & Long distance rail services (SMeyl)
Property and Station Development
Feeder & distribution services in the form of buses

8. Critical Path Amendments to Legal Succession Act
Conclusion of Definitive Agreements between SARCC and Transnet on Shosholoza Meyl
Funding and Turn Around Plan for SMeyl
Approval of an Investment Plan for Public Transport

9. 415 refurbished Coaches back into service Passenger trips:
Key Highlights for 2007/08
415 refurbished Coaches back into service
Passenger trips:
12.4% above target
Metro Plus Passenger trips 17% above target
Fare Revenue: 7.6% above target
Punctuality: – (April 07 – January 07):
Average Performance: %
WC = %
Wits= 87.97%
Eastern Cape = 96.96%
Tshwane = 81.26%
Durban = 78.08%
Train Cancellations reduced to less than 2%
Launched the Khayelitsha Express Service and Soweto Business Express

10. Key Highlights for 2007/08 Cont…
Customer Satisfaction at 70%
Security: crime related incidents at levels far lower than 2006/07
incidents at end of January % below target for 2007/08.
Roll out of Railway Police: deployed in Metrorail Regions
Safety Incidents:
Train Collisions
Derailments
Level Crossing Incidents
BEE: 83% of value of contracts placed were to BEE companies.
Capex Budget: 85% spent – 93% spent on Rolling Stock

11. Key Highlights for 2007/08 Cont…
2010 Projects:
Accelerated the implementation of 2010 Projects
R700m of R1.3bn committed to projects
12 of the 24 planned contact points completed and operational
Approval Moloto Rail Corridor by Cabinet
first phase, 113 kilometres, Tshwane to Siyabuswa - R8.6bn
Launch of the Kei Rail Service
Completion of technical feasibility for CTIA Rail Link
Bridge City Development – R1.2bn: Construction has commenced

12. Construction of Bridge City Station

13. Key Highlights for 2007/08 Cont..
Intersite
SAPS Facilities (KwaMashu, DBN, Reunion, Escombe, Gavendish)
High Commands (Park Station, DBN, Tshwane, Germiston, CT) – R45m
Phase 1 for SAPS Contact points Wits (Parkstation, New Canada, Germiston, Springs etc– R40m
Khayelitsha Extension Station 4A completed - R70m
National Station Improvement Programme (40 stations) underway - R50m
Luxury coach terminus in Tshwane - R27m

14. Challenges facing Commuter Rail
Despite visible improvements, commuter rail services remain on a ‘knife edge’
A major incident in one region could trigger a crisis in the entire system, Tshwane Train Burnings an example
Underlying causes of Poor Performance:
Enormous Infrastructure backlog of over R25bn
Aged Assets (resulting in high failure rate)
Huge Operational Risks (overcrowding & risk of stampede)
Skills shortage

15. Challenges facing Commuter Rail Cont…
Rail System has not responded to spatial developments in the country
Customers continue to travel under difficult conditions
Fare evasion at 8.8%
Stations & Rolling Stock not accessible to people with disabilities
Customer Dissatisfaction remains high

16. SARCC Coach Age Distribution

17. Turning Rail Passenger Transport Around
Strategic approach:
Effecting significant short term improvements
Punctuality
Safety
Cleanliness
Revenue etc
Delivering long term infrastructure to secure rail as backbone of public passenger transport
Laying foundation for future growth e.g. New Generation Rolling Stock

18. Turning Passenger Rail Around Cont…
The Turn Around Strategy is divided into three phases:
Stabilisation (2007 – 2010):
securing feasible short term goals by region and corridor
investments intended to make early and material impact
Recovery (2011 – 2014):
building on stabilisation phase
Increase patronage
deploying new rolling stock etc
Growth phase (2015 – 2030):
expanding the rail network significantly

19. MTEF (Incl. S Meyl)

20. Grants, Revenue & Appropriations (incl. SMeyl)

21. RATIOS

22. Key Strategic Initiatives for 2008/09 - SMeyl
Concluding Definitive Agreements with Transnet
Review services offered by Shosholoza Meyl
Determine feasibility of regional services e.g. JHB to Rustenburg, JHB to Maputo
Transfer of key assets e.g. Locomotives & Properties
Amendments to Legal Succession Act
Driving Operational Efficiencies

23. Key Strategic Initiatives for 2008/09
Significant Improvements in Priority A Corridors as per Rail Plan
Focus investments in these Corridors by improving levels of service
5 – 10 minutes headway during peak periods
Longer operating hours
Predictable services at 90% availability
Train availability at 96%
Safety and Security
Punctuality at 90%

24. Strategic Initiatives - Accelerated Rolling Stock Programme
The Accelerated Rolling Stock Programme aims are:
To improve reliability, availability & safety of rolling stock
To improve Rolling Stock performance
The programme will deliver coaches into the service during this MTEF period (500 – 07/08;700-08/09;700-09/10)
Budgeted R1.5bn for 2008/09
The Accelerated Rolling Stock Programme will cost R5 billion over the medium term (R1.270bn – 07/08;R1.456bn – 08/09;R2.274bn – 09/10)

25. Strategic Initiatives-Gauteng Nerve Centre
Work will begin to establish a fully integrated Central Train Control Centre for Gauteng – R520m over 3 years
This will include a re-signalling project
73% of all public transport trips in Gauteng made within the Wits Metrorail area (Southern Gauteng)
Steps for the integration of the Wits and Tshwane Metrorail regions into one have begun

26. Strategic Initiatives - Preventative Maintenance Programme
Increasing level and quality of maintenance
Increased Maintenance & Materials budget by 18% to R707m for 08/09
Implement project to Upgrade facilities, equipment & skills at Metrorail depots at a cost of R300m over 3 Years

27. Strategic Initiatives – Enhancing Operational Safety
Continuous Improvement of Safety Management System (SMS) – as required by law
Submission of Safety Plan
Retain operating license
Obtain license to operate SMeyl
Review of 2 year implementation plan
Integration of Safety Standards & Quality Management through IMS

28. Strategic Initiatives - 2010 Projects
Accelerating implementation of 2010 FIFA World
Cup related projects:
Station development and upgrades impacting on the event.
Operational improvements i.e. - crowd control, park and ride facilities at stations and fan parks.
Improve security and telecommunications at various stations.
Refurbishment of SMeyl coaches as well as facilities for the National Mobile Train Unit
Total allocation of R1.3bn by 2010

29. Strategic Initiatives – Skills Devt.
Establishment of an Academy for Technical disciplines (signaling, electrical etc) as well safety critical grades
Leadership Development Programme – R4.6m
Executives
Middle Management
Supervisory Staff
Early Childhood Development – R2m
Training Teachers in 60 centres country wide
Bursary Programme for students at University and Technikons
Establishment of Centre for Transport Studies with UCT – R3m
Learnerships – R10m
Train Operations
Technical Training
Protection Services
Employee Wellness Programme Approved – R9m

30. Strategic Initiatives - Optimising Asset Value
SARCC’s strategy requires Intersite to focus on the development of properties and stations in and around the rail environment
In line with our strategic objective of optimising asset value, the following flagship project have been prioritised-
Cape Town Station Redevelopment
Mabopane Station.
Durban Station.
Park Station
Berea Station
Umgeni Business Park

31. Conclusion Critical Success Factors:
Sustainability of Turn Around Strategy dependent on recapitalisation of the business
Enhanced Operational Efficiencies and Good Corporate Governance
Continued investment in Skills, Operations and Infrastructure
Effective co-ordination in implementation of Public Transport Policy