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

2. Presentation outline Project Progress Key Lessons Learnt
Challenges & Risks

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

4. 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

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

6. 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

7. 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 passengers per weekday (2015/16)

8. 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

9. 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

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

11. 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)

12. 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 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

13. 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

14. 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

15. 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

16. 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

17. 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

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

19. 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)

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. MULTI-YEAR FINANCIAL OPERATIONAL PLAN (MYFIN)
MyCiTi Phase 1, N2e, Phase 2A, s46 GABS
Financial analysis of operating costs/revenues up to /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

29. 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

30. 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.

31. CAPITAL AVAILABILITY
- ROLLOUT OF PHASE 2A SERVICES
BFI Funding

32. 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

33. 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

34. 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

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

36. 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))

37. 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

38. 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

39. THANK
YOU