1. HARD TIMES: A DIFFERENTIATED REGULATORY APPROACH ANKIE PIENAAR RAILWAY SAFETY REGULATOR SOUTH AFRICA

2. CONTENTS 1.Introduction 2.Small operator characteristics 3.Permit class criteria 4.Safety management system requirements 5.Safety permit fees 6.Operator survey results 7.Regulatory benefits derived 8.Conclusion

3. INTRODUCTION Rail regulation in South Africa covers all rail operations Mainline operations and small operators World-wide economic recession Differentiated regulatory approach implemented Aim to enhance compliance by simplifying requirements, lowering cost of compliance

4. SMALL OPERATOR CHARACTERISTICS

5. Not core/Lack Knowledge Compliance view (Believe safe) Difficulty identifying rail risks Nominated Manager turnover rate Resist Guides Cost of Compliance

6. PERMIT CLASS CRITERIA

7. CLASS AACTIVITYCLASS B Any involvementPASSENGERSNo involvement > 50 000 net tons per annum DANGEROUS GOODS ≤ 50 000 net tons per annum > 500 000 net tons per annum GENERAL FREIGHT ≤ 500 000 net tons per annum > 500 000 gross tons per annum RAIL MANUFACTURIN G AND MAINTENANCE ≤ 500 000 gross tons per annum

8. SAFETY MANAGEMENT SYSTEM REQUIREMENTS

9. 1.No Annual Safety Improvement Plan 2.Policy, structure and procedures Nominated manager Internal audits Legal compliance 3. Operational rail risk management procedures Risk assessment Risk control

10. 4. Occurrence management Occurrence management procedures (including emergency preparedness) Occurrence recording, reporting Occurrence investigations (root cause) 5. Human factors management Safety-related grades Human factors risk assessment Gap analysis Implementation plan

11. 5. Safety standards: engineering and operations Life-cycle management Design and maintenance standards Maintenance plans Standard operating procedures 6. Interface, interoperability management Identify Manage as per formal agreement 7. Changes to operations or systems

12. SAFETY PERMIT FEES

13. Supplement government grant Permit fee to obtain a permit; annual fees Based on annual rail cost figures higher cost = higher fee Class B flat fee introduced Audited rail costs not needed Deliberately kept low

14. CLASS B SURVEY RESULTS

15. Class B operator survey results 2010/11

16. REGULATORY BENEFITS DERIVED

17. 1.More aligned international approach 2.Improved perception of RSR 3.68% increase in first-time applications 4.Administrative burden lowered 5.Frequency and scope of audits amended 6.Resources focussed on Class A

18. 7. Permit finalization improvements (2011/12) (days)

19. CONCLUSION Successful implementation positive impact Possible to effectively amend regulatory approach to assist operators Remaining Challenges Simplify communication ever further Future standard development