1. 1 Railway Safety Regulator Portfolio Committee on Transport: 21 October 2010 Annual Report 2009-10

2. Table of Contents RSR Mandate RSR Mandate Approach to Safety Regulation Approach to Safety Regulation Key Priorities – (2009-10) Key Priorities – (2009-10) Key Performance Highlights (2009-10) Key Performance Highlights (2009-10) Budget and Financial Performance Budget and Financial Performance 2009-10 State of Safety Data (Preliminary data). 2009-10 State of Safety Data (Preliminary data). Overview: State of Safety in Railways and key safety challenges. Overview: State of Safety in Railways and key safety challenges. Medium Term Interventions Medium Term Interventions Institutional Challenges. Institutional Challenges. 2

3. To oversee safety of railway transport, while operators remain responsible for managing safety of their operations; To oversee safety of railway transport, while operators remain responsible for managing safety of their operations; To promote improved safety performance in order to promote the use of rail; To promote improved safety performance in order to promote the use of rail; To monitor and ensure safety compliance through the conducting of audits, inspections and occurrence investigations; To monitor and ensure safety compliance through the conducting of audits, inspections and occurrence investigations; To develop appropriate regulations & standards for safe railway operations To develop appropriate regulations & standards for safe railway operations To collect and disseminate information relating to safety performance in the railway environment through producing state of safety reports; To collect and disseminate information relating to safety performance in the railway environment through producing state of safety reports; To promote the harmonization of the railway safety regime of South Africa with SADC railway operations. To promote the harmonization of the railway safety regime of South Africa with SADC railway operations.Mandate 3

4. 4 Approach to Safety Regulation LEGAL INSTRUMENTS NRSR Act NRSR Act Safety Regulations Safety Regulations Safety Standards Safety Standards Safety Management System Safety Management System Safety Permit Safety Permit Cooperative Agreements Cooperative Agreements COMPLIANCE & MONITORING Safety Audits and Inspections Safety Audits and Inspections Occurrence Investigations Occurrence Investigations Safety Assessments of new works/technology and operational improvements Safety Assessments of new works/technology and operational improvements State of Safety Reports State of Safety Reports Safety Plans Safety PlansENFORCEMENT Suspension and Revocation of Safety Permit Suspension and Revocation of Safety Permit Restriction or suspension of an activity (unsafe conditions) Restriction or suspension of an activity (unsafe conditions) Directives and Notices Directives and Notices Lay criminal charge for contraventions Lay criminal charge for contraventions Penalties (proposed) Penalties (proposed)

5. 5 Key Priorities (2009-10 ) Strengthen the Railway Safety Regulatory regime. Strengthen the Railway Safety Regulatory regime. Safety Regulations. Safety Regulations. Safety Standards - Safety Standards - Regulatory Model for various risk operator categories. Regulatory Model for various risk operator categories. Safety Permit Managem ent Safety Permit Managem ent Improve Safety Compliance and Adequacy Improve Safety Compliance and Adequacy Safety Audits Safety Audits Inspections Inspections Occurrence Investigations Occurrence Investigations Railway Technology Reviews Railway Technology Reviews Evaluation of Annual Safety Plans Evaluation of Annual Safety Plans Railway Occurrence Information Railway Occurrence Information

6. 6 Key Priorities (2009-10) Stakeholder Partnerships to promote and improve safety. Stakeholder Partnerships to promote and improve safety. Safety Awareness Campaigns in collaboration with key Stakeholders. Safety Awareness Campaigns in collaboration with key Stakeholders. National Railway Crime Combating Initiative/ Forum National Railway Crime Combating Initiative/ Forum Agreements with stakeholders to improve safety. Agreements with stakeholders to improve safety. Promotion of safety and harmonisation of railway operations in SADC railways Promotion of safety and harmonisation of railway operations in SADC railways Proactive Support of Key initiatives Proactive Support of Key initiatives Safety Oversight of the Gautrain Project. Safety Oversight of the Gautrain Project. Safety Oversight of dedicated 2010 World Cup services. Safety Oversight of dedicated 2010 World Cup services. Reviews/Assessments of capital programmes by major operators. Reviews/Assessments of capital programmes by major operators.

7. 7 Key Priorities (2009-10) Improve Institutional Effectiveness. Improve Institutional Effectiveness. Sound Financial Management Sound Financial Management Revenue Management Revenue Management Good Corporate Governance Good Corporate Governance Sound Human Capital Management Sound Human Capital Management Risk Management Risk Management Optimal Utilisation of ICT Optimal Utilisation of ICT

8. 8 Key Performance Highlights Safety Audits, Inspections and Occurrence Investigations. Safety Audits, Inspections and Occurrence Investigations. Conducted a total of 72 Safety Management System Audits. Conducted a total of 72 Safety Management System Audits. 16 Ad-hoc Inspections undertaken 16 Ad-hoc Inspections undertaken 23 Occurrence Investigations and Board of Inquiries conducted. 23 Occurrence Investigations and Board of Inquiries conducted. 43 Technology Reviews completed 43 Technology Reviews completed Targeted PRASA/TFR Technical audits focussing on infrastructure integrity, rolling stock maintenance, Targeted PRASA/TFR Technical audits focussing on infrastructure integrity, rolling stock maintenance, communication infrastructure and interface mngt. 27 Targeted technical audits on PRASA regions (Cape Town, Durban and Gauteng) were conducted. 27 Targeted technical audits on PRASA regions (Cape Town, Durban and Gauteng) were conducted. 24 Targeted technical audits on Transnet Freight Rail. 24 Targeted technical audits on Transnet Freight Rail.

9. 9 Key Performance Highlights Directives and Notices arising from audits, inspections and Occurrence investigations. Directives and Notices arising from audits, inspections and Occurrence investigations.  72 Safety Audits 3 Prohibition Directives issued (when immediate threat to safety was evident) 3 Prohibition Directives issued (when immediate threat to safety was evident) 17 Improvement Directives issued (when there is a possible threat to safety, e.g. Infrastructure defects) 17 Improvement Directives issued (when there is a possible threat to safety, e.g. Infrastructure defects) 6 non-compliance notices (when elements of a safety management system were not implemented). 6 non-compliance notices (when elements of a safety management system were not implemented). 253 audit non-conformance notices (relatively minor but important findings within an operator’s safety management system). 253 audit non-conformance notices (relatively minor but important findings within an operator’s safety management system).  16 Ad-hoc Inspections – resulting in 7 Improvement Directives and 1 non-compliance notice.  23 Occurrence Investigations resulting in 39 recommendations and 6 Improvement Directives.

10. 10 Key Audit Findings on PRASA and TFR.  PRASA Audits Sound Safety Management Structure in place –preparation and focussed planning for 2010 World Cup. Sound Safety Management Structure in place –preparation and focussed planning for 2010 World Cup. Low system capacity, rolling stock backlog/shortage (lead to overcrowding of trains) and age of assets remains a major concern. Low system capacity, rolling stock backlog/shortage (lead to overcrowding of trains) and age of assets remains a major concern. Increased demand on system lead to unsafe passenger behaviour. Increased demand on system lead to unsafe passenger behaviour. Poor reliability of rolling stock and infrastructure – particularly the signalling system. Service disruptions Poor reliability of rolling stock and infrastructure – particularly the signalling system. Service disruptions Theft and vandalism has placed immense pressure on maintenance. Theft and vandalism has placed immense pressure on maintenance. Extensive tests on Gauteng infrastructure revealed that it is sound despite major challenges – reliability of radios in trains is a major concern. Extensive tests on Gauteng infrastructure revealed that it is sound despite major challenges – reliability of radios in trains is a major concern. High number of vacancies in the safety critical grades in the infrastructure departments. High number of vacancies in the safety critical grades in the infrastructure departments.  Transnet Freight Rail Coal Line Audits. Risk Management processes not embedded in the organisation. Risk Management processes not embedded in the organisation. High levels of manual train authorisations – too many train control officer posts not filled. High levels of manual train authorisations – too many train control officer posts not filled. Signal equipment failures exceedingly high Signal equipment failures exceedingly high High levels of vandalism and theft of equipment High levels of vandalism and theft of equipment Too many vacancies in safety critical and safety related grades. Too many vacancies in safety critical and safety related grades.

11. 11 Investment Backlogs. Commuter Rail System. Investment Backlogs. Commuter Rail System. o Investment backlog = R20b o Rolling Stock Recap=R60b o 40% Fleet over 37 yrs & One third constantly out of service – reliability & performance poor. o Signalling system at end of economic life – only 23 (14%) of the 162 signalling installations have not exceeded their design life.

12. 12 Key Performance Highlights Gautrain Rapid Rail Project. Gautrain Rapid Rail Project. Issued Construction Train Safety Permit and Test and Commissioning Safety Permit. Issued Construction Train Safety Permit and Test and Commissioning Safety Permit. Safety reviews/assessments of the train control system and rolling stock completed. Safety reviews/assessments of the train control system and rolling stock completed. Evaluation of Traction Equipment in progress at year end. Evaluation of Traction Equipment in progress at year end. Safety Management System report under review at year end (requirement for issuing a Safety Permit for Phase 1 of the project). Safety Management System report under review at year end (requirement for issuing a Safety Permit for Phase 1 of the project). Hazard Log developed (identifies possible risks in the entire life-cycle of Gautrain project) and monitored & updated on a regular basis Hazard Log developed (identifies possible risks in the entire life-cycle of Gautrain project) and monitored & updated on a regular basis 2010 World Cup Readiness. 2010 World Cup Readiness. 4 PRASA (Metrorail) region based audits conducted. 4 PRASA (Metrorail) region based audits conducted. PRASA’s station programme evaluated. PRASA’s station programme evaluated. 8 Audits conducted on Tourist Operators 8 Audits conducted on Tourist Operators

13. 13 Key Performance Highlights Railway Safety Standards, Guides and Regulations. Railway Safety Standards, Guides and Regulations. Amended and published the General Railway Safety Management System Standard published. Amended and published the General Railway Safety Management System Standard published. Human Factors Management Standards (Safety critical positions in railways) – Draft standard developed to be published in 2010/11. Human Factors Management Standards (Safety critical positions in railways) – Draft standard developed to be published in 2010/11. Level Crossings Standard – Draft standard developed. Level Crossings Standard – Draft standard developed. Level Crossings Risk Assessment model developed and tested at 5 sites. Level Crossings Risk Assessment model developed and tested at 5 sites. Guidance notice on the standardisation of railway occurrence management issued to operators. Guidance notice on the standardisation of railway occurrence management issued to operators. Penalty Regulations completed but not published at year end. Penalty Regulations completed but not published at year end. Revised Permit Fee framework/model developed and approved as part of implementing the amended NRSR Act. Revised Permit Fee framework/model developed and approved as part of implementing the amended NRSR Act. Regulatory model for regulating small/low risk operators developed – to enable RSR to focus more resources on high risk operators. Regulatory model for regulating small/low risk operators developed – to enable RSR to focus more resources on high risk operators.

14. 14 Key Performance Highlights Stakeholder Partnerships to improve Safety. Stakeholder Partnerships to improve Safety. Integrated railway safety campaigns initiated in cooperation with PRASA, TFR, Railway Police and Commuter Organisations. Integrated railway safety campaigns initiated in cooperation with PRASA, TFR, Railway Police and Commuter Organisations. The MOU with the Chemical Industry Association (with regard to the transportation of dangerous goods by rail). The MOU with the Chemical Industry Association (with regard to the transportation of dangerous goods by rail). MOU with the South African Police Services. MOU with the South African Police Services. Active participation in the national Railway Crime Combating Forum (forum to address issues around crime and security in the railway environment). Active participation in the national Railway Crime Combating Forum (forum to address issues around crime and security in the railway environment). Regional safety standards in the Southern African Region through the Southern African Railways Association – regional safety policy adopted by the SARA Board in 2008/09) Regional safety standards in the Southern African Region through the Southern African Railways Association – regional safety policy adopted by the SARA Board in 2008/09) Monitoring Safety Performance in the Railway Industry. Monitoring Safety Performance in the Railway Industry. Revised format for the 2008/09 State of Safety Revised format for the 2008/09 State of Safety Evaluated 320 Annual Safety Improvement Plans. Evaluated 320 Annual Safety Improvement Plans.

15. 15 20102009 Income:Government Grant 37,260,00033,861,072 Permit Fees9,700,8005,087,000 Other Income805,03535,135 Investment Income 96,752427,571 Total47,862,58739,410,778 % Increase 08/09 – 09/10 = 28.27 % Budget 2009 - 2010

16. Income 2009 - 2010 16

17. 17 Budget & Expenditure for 2009 - 2010 Expenditure20102009 Staff Costs29,429,24323,328,436 Operating Expenses (including professional fees) 10,808,2737,934,584 Admin Expenses8,912,0397,052,447 Total49,149,55538,315,467 Deficit/Surplus(1,493,719)864,132

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19. 19 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2010 20102009 ASSETS Non-current assets4,892,8934,741,758 Property, plant and equipment4,112,4034,028,374 Intangible assets780,490713,384 Current assets1,301,8592,562,403 Trade and other receivables220,566127,570 Bank and Cash1,081,2932,434,833 TOTAL ASSETS6,194,7527,304,161 NET ASSETS AND LIABILITIES Net Assets1,053,2572,546,976 Accumulated Surplus1,053,2572,546,976 Non-current liabilities881,8341,176,080 Finance Lease Liability881,8341,176,080 Current Liabilities4,259,6613,581,105 Trade and other payables3,965,4153,385,383 Short-term portion of finance lease liability294,246195,722 TOTAL NET ASSETS AND LIABILITIES6,194,7527,304,161

20. 20 Medium Term Budget R’000 2010/20112011/20122012/2013 Transfers – Government Grant35,99437,47539,349 Permit Fees (Projected)10,00015,00016,000 Projected Interest480500 TOTAL46,47452,97555,849

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29. 29 SARCC/METRORAIL 2009/10 SECURITY RELATED OCCURRENCES CATEGORYTOTALRANK% TO TOTAL 1 - Theft of assets366218 % 2 - Vandalism444422 % 3 - Threats to operational safety960 % 4 - Train hijacking180 % 5 - Crowd related incidences580 % 6 - Industrial action related incidences2171 % 7 - Safety on trains399320 % 8 - Safety on stations533127 % 9 - Safety outside station platform area (yards, depots, sidings) 233512 %

30. 30 7. Personal safety on trains 8.Personal safety on stations 9.Personal safety outside station platform (yards, sidings and depots )

31. 31 7. Personal safety on trains 8.Personal safety on stations 9.Personal safety outside station platform (yards, sidings and depots )

32. 32 TRANSNET FREIGHT RAIL 2009/10 OPERATIONAL OCCURRENCES CATEGORYTOTALRANK% TO TOTAL A - Collisions819132 % B - Derailments556222 % C - Unauthorised Movements5962 % D - Level Crossings13065 % E - People struck by trains22859 % F - People-related occurrences2871 % G - Passenger-related occurrences0110 % H - People related: Platform1090 % I - People related: Station2100 % J - Electric Shock2181 % K - Spillage376415 % L - Fire332313 %

33. 33GRAPHS TRANSNET FREIGHT RAIL 2009/10 SECURITY-RELATED OCCURRENCES CATEGORYTOTALRANK% to Total Theft2924190 % Vandalism343210 % 3030 % 403 503 603 703 803 903

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36. 36 SARC 2009/10 COST OF OCCURRENCE DESCRIPTIONLOSS AMOUNT% TO TOTAL Theft & VandalismR6 783 202.206 % Train FiresR72 829 062.9765 % CollisionsR21 901 563.1020 % DerailmentsR9 730 464.239 % Level Crossing AccidentsR423 887.750 % TotalR111 668 180.25100 %

37. 37 TRANSNET FREIGHT RAIL 2009/10 RAIL OCCURRENCE COSTS DESCRIPTIONCATEGORYTOTAL% TO TOTAL Theft & VandalismCablesR54 267 33315 % Theft & VandalismDoors & WindowsR347 1560 % ArsonRolling StockR00 % Train FiresRolling StockR4 850 0031 % Level Crossing Accidents R/S & PerwayR25 864 1407 % CollisionsR/S & PerwayR6 758 6392 % DerailmentsR/S & PerwayR276 352 82575 % R368 440 096100 %

38. 38 Safety In Railways Safety In Railways Poor safety record over the past 5 years. Poor safety record over the past 5 years. From 04/05 - 09/10 combined accrued costs for TFR/Metrorail amounted to just over R3.5b excluding indirect costs. From 04/05 - 09/10 combined accrued costs for TFR/Metrorail amounted to just over R3.5b excluding indirect costs. Collisions & Derailments contributed over 90% of the combined incident costs for both TFR & Metrorail. Collisions & Derailments contributed over 90% of the combined incident costs for both TFR & Metrorail. Concerns around the condition of aging infrastructure, Rolling Stock, Signalling and Radio systems and capacity planning. Concerns around the condition of aging infrastructure, Rolling Stock, Signalling and Radio systems and capacity planning.  Vandalism and theft of railway assets/infrastructure Inadequate capacity to meet demand Inadequate capacity to meet demand ( Safety implications).

39. 39 Safety In Railways Safety In Railways Personal Safety in trains and stations Personal Safety in trains and stations Vehicle driver behaviour – level crossings accidents. Vehicle driver behaviour – level crossings accidents. Shortage of technical skills. Shortage of technical skills. Challenges in relation to balancing investments between maintaining the current system while migrating to new technologies. Challenges in relation to balancing investments between maintaining the current system while migrating to new technologies. General negative perception about rail transport in relation to safety and operational efficiency. General negative perception about rail transport in relation to safety and operational efficiency.

40. 40 Medium Term Interventions. The assessment of the condition/status of critical elements of the infrastructure, rolling stock, operational systems and management from both individual and overall systems perspective through undertaking technical audits. The assessment of the condition/status of critical elements of the infrastructure, rolling stock, operational systems and management from both individual and overall systems perspective through undertaking technical audits. The interrogation of the level of implementation and compliance with safety directives arising out of audits, inspections and investigations. The interrogation of the level of implementation and compliance with safety directives arising out of audits, inspections and investigations. An assessment of measures undertaken to address investment backlogs – to deal with issues of capacity/(commuter rail system) – safety assessment of new technologies. An assessment of measures undertaken to address investment backlogs – to deal with issues of capacity/(commuter rail system) – safety assessment of new technologies. An assessment of the extent to which sufficient measures are taken to ensure that the current assets continue to be used in a safe manner whilst renewal programmes are being introduced. An assessment of the extent to which sufficient measures are taken to ensure that the current assets continue to be used in a safe manner whilst renewal programmes are being introduced. An analysis of the measures that are in place to ensure the safety and security of railway assets, passengers and the public within the railway reserve and surrounding environment. An analysis of the measures that are in place to ensure the safety and security of railway assets, passengers and the public within the railway reserve and surrounding environment. An interrogation of measures that are in place to ensure sustainable capacity for railway operations. An interrogation of measures that are in place to ensure sustainable capacity for railway operations.

41. 41 Key Institutional Challenges Key Institutional Challenges Funding Constraints Funding Constraints o Limited Inspectorate capacity.(13 Inspectors – minimum required 35) (e.g. TFR has 22 000 km rail network, PRASA 2400km) o Limited overall staff complement in other critical functions of the organisation. Limited resources to undertake other critical safety activities such safety standards development, outreach/safety awareness programmes. o Inability to develop an appropriate information management system / inadequate investment in IT. o Lack of an appropriate compliance monitoring system. o Increased “New Rail Works/Projects” will place additional pressure on RSR’s limited capacity. o Limited Research capacity. o Alternative funding mechanisms General shortage of technical skills in the railway industry. General shortage of technical skills in the railway industry. Need to strengthen the enforcement regime – penalty system underway. Need to strengthen the enforcement regime – penalty system underway. Funding Challenges confronting railway operators (mainly the commuter rail services). Funding Challenges confronting railway operators (mainly the commuter rail services).

42. 42 Conclusion We hope that RSR interventions will contribute in; Enhancing a safety management culture railways. Enhancing a safety management culture railways. Reducing accidents & costs associated with railway occurrences. (transport costs) Reducing accidents & costs associated with railway occurrences. (transport costs) Promoting rail as a preferred mode of transport Promoting rail as a preferred mode of transport