1. 11 November2014 RAILWAY SAFETY REGULATOR 2014/15 FINANCIAL YEAR QUARTER 1 & QUARTER 2 PROGRESS 1

2. OVERVIEW 2 INTRODUCTION BACKGROUND 2014/15 QUARTER 1 & 2 PERFORMANCE COMPARATIVE ANALYSIS OF QUARTERLY PERFORMANCE

3. INTRODUCTION 3 Strategy is an ongoing process of enriching ideas, improving concepts and initiatives, making the execution happen and getting RESULTS

4. INTRODUCTION: STRATEGIC OVERVIEW 4 Vision To be a sustainable recognised authority overseeing and enforcing Railway Safety in South Africa Mission To oversee and promote safe railway operations through appropriate support, monitoring and enforcement, guided by an enabling regulatory framework Values Transparency Integrity Innovation Reliability Effectiveness Our People Social Responsibility Professionalism

5. 5 INTRODUCTION: RSR’S NEW Strategic DIRECTION Time Impact & Change Impact landscape Collaboration landscape Operational landscape PAST PRESENT FUTURE

6. BACKGROUND 2014/15 STRATEGIC APPROACH Premised on Results/Outcomes-Based Management Emphasises outcomes and impacts Makes explicit provision for organisational learning and accountability Differentiates between Strategic, Tactical and Operational Targets More Outwards Focussed i.e. Attention to External Environment Greater emphasis on Collaboration and Intra-Departmental Work Proactive Provides the basic Architecture for Good Governance 6

7. BACKGROUND 2014/15 STRATEGIC approach Cont. Supports the Policy Framework for the Government-Wide Monitoring and Evaluation System (GWMES) Aims to establish a political and administrative culture characterised by accountability, continual improvement, efficiency, a concern for ethics, and avoidance of conflicts of interest by facilitating a clear sequence of events based on critical reflection and managerial action in response to an analysis of the relationships between the resource inputs, service delivery outputs, and their associated outcomes and impacts. 7

8. BACKGROUND 2015/16 – 2018/19 FINANCIAL YEARS: Focus on Strategy Execution Higher level focus on external impacts will require focus on critical issues : Value creation – contribute to the SUSTAINABLE growth of rail as a safe, reliable, cost-effective and more energy efficient mode of transportation Stakeholder engagements Understanding the Risk Landscape Practice and Demonstrate Integrated thinking Upwards matrix – transformation journey 8

9. 2014/15 QUARTER 1 & 2 PERFORMANCE 9 STRATEGIC OUTCOME 1: RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.1: Effective compliance with legislation Objective Statement: Conduct sufficient and effective audits and investigations to ensure that operators comply with legislation as one of the key enablers to mitigate risks in the railway landscape Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 Target Actual Performance Q2 TargetActual Performance Number of Inspections conducted 120 Inspections conducted 25 Inspections conducted 24 Inspections conducted 30 Inspections conducted 33 Inspections conducted Number of Audits conducted Number of Audits undertaken 90 Audits conducted 20 Audits conducted 21 Audits conducted 25 Audits conducted Number of Follow-up Investigations conducted Number of Audits undertaken 28 Follow-up Investigations conducted 7 Follow-up Investigations conducted 7 Follow –up Investigations conducted 7 Follow-up Investigations conducted 9 Follow-up Investigations conducted Investigations conducted Number of Investigations undertaken 32 Investigations conducted 8 Investigations conducted 4 Investigations conducted 8 Investigations conducted 12 Investigations conducted

10. 2014/15 QUARTER 1 & 2 PERFORMANCE 10 STRATEGIC OUTCOME 1: RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.2: Ensure continuous improvements in railway safety through innovation Objective Statement: Research and implement innovative techniques and methods to ensure continuous improvements in railway safety Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 Target Actual Performance Q2 TargetActual Performance Strategy to regulate the maintainer developed Percentage implementation of the strategy to regulate the maintainer Strategy to regulate the supplier of safety critical systems and services to the industry developed Literature review completed Target Achieved First draft of the strategy to regulate the maintainer developed Target Achieved Percentage of Safety Critical Grades certified New IndicatorProject implementation plan developed Project Charter developed and approved Target AchievedImplementation framework developed Target Achieved

11. 2014/15 QUARTER 1 & 2 PERFORMANCE 11 STRATEGIC OUTCOME 1: RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.3: Strengthen the regulatory framework and approach Objective Statement: Develop regulatory tools and commands to direct enforcement, contribute towards the development of world-class safety regulatory legislation Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 Target Actual Performance Q2 TargetActual Performance Impact of Regulatory Framework and Tools assessed New IndicatorRegulatory Impact Assessment conducted --First Draft report completed Target not Achieved The RSR is looking to achieve this target.

12. 2014/15 QUARTER 1 & 2 PERFORMANCE 12 STRATEGIC OUTCOME 1: RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.3: Strengthen the regulatory framework and approach Objective Statement: Develop regulatory tools and commands to direct enforcement, contribute towards the development of world-class safety regulatory legislation Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 Target Actual Performance Q2 TargetActual Performance Number of Regulations drafted No. of Regulations developed and/or amended 4 Regulations drafted ----

13. 2014/15 QUARTER 1 & 2 PERFORMANCE 13 STRATEGIC OUTCOME 2: RAILWAY SAFETY EFFECTIVELY PROMOTED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 2.1: Cultivate and instil a culture of safety in the stakeholder environment Objective Statement: Drive education initiatives and effective communication towards improved compliance by operators to contribute to a culture of safety Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual TargetQuarter 1 Target Actual Performance Q2 TargetActual Performance Education Awareness Campaigns conducted New Indicator 2 Education Awareness Campaigns conducted on a specified safety topic -- 1 Operator workshop conducted Target not Achieved Due to other operational activities the workshops were postponed to Q3 Number of Stakeholder Engagements conducted New Indicator 4 Stakeholder Engagement sessions conducted 1 Stakeholder Engagement sessions conducted Target Achieved 1 Stakeholder Engagement sessions conducted Target Achieved Profiling campaigns conducted New Indicator 12 Profiling campaigns conducted 2 Profiling campaigns conducted Target Achieved 5 Profiling campaigns conducted Target Achieved 1 Railway Safety Conference planned and hosted Railway Safety Conference concept paper approved Target AchievedProgress ReportTarget Achieved

14. 2014/15 QUARTER 1 & 2 PERFORMANCE 14 STRATEGIC OUTCOME 2: RAILWAY SAFETY EFFECTIVELY PROMOTED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 2.2: Inform stakeholders on State of Safety in rail Objective Statement: Use the State of Safety Report to increase public knowledge and guide stakeholders of the issues and challenges in the rail environment to increase safety awareness Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual TargetQuarter 1 Target Actual Performance Q2 TargetActual Performance Report to RSA nation on the State of Safety State of Safety Report developed State of Safety Report disseminated -- State of Safety report approved by the Board Target Achieved Number of External Technical Safety workshops conducted New Indicator10 External Technical Safety workshops conducted 2 External Technical Safety workshops conducted Target Achieved3 External Technical Safety workshops conducted Target Achieved

15. 2014/15 QUARTER 1 & 2 PERFORMANCE 15 STRATEGIC OUTCOME 3: NEW INVESTMENTS IN RAIL INFRASTRUCTURE AND TECHNOLOGIES IMPACTS POSITIVELY ON RAILWAY SAFETY Outcome Description: Ensure investments in rail infrastructure and technologies address safety improvements Strategic Objective 3.1: A process for RSR safety assurance of rail investment and technology changes Objective Statement: Guide industry investment and technology changes to ensure safety compliance and improvements Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual TargetQuarter 1 Target Actual Performance Q2 TargetActual Performance Technology Reviews conducted % of Technology Reviews undertaken 80 % of the total Technology Reviews received for the financial year conducted 80 % of the total Technology Reviews received in Quarter 1 conducted Target Achieved80 % of the total Technology Reviews received in Quarter 2 conducted Target Achieved 28 of 35 Reviews received conducted

16. 2014/15 QUARTER 1 & 2 PERFORMANCE 16 STRATEGIC OUTCOME 4: SUSTAINABLE INSTITUTIONAL GROWTH AND DEVELOPMENT Outcome Description: Enrich organisational governance processes and procedures to promote integrated thinking and collaboration and to enable the sustainable growth and development of the RSR Strategic Objective 4.1: Assure corporate sustainability and growth Objective Statement: Develop corporate institutional capabilities to ensure sustainability and to effectively manage organisational growth and development Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 TargetActual Performance Q2 TargetActual Performance Number of Initiatives to assist SADC countries Number of Initiatives undertaken to assist SADC countries 2 SADC Initiatives completed Infrastructure and rolling stock audits in Namibia Target not Achieved A number of initiatives are scheduled to take place in Namibia that requires a set amount of days to be completed. RSR did not secure sufficient time to conclude these audits due to conflict of schedules between RSR and the Operator -- Communication Strategy implemented New Indicator1 Customer Care Call Centre established Progress report on the process of establishing the call centre completed Target AchievedProgress report on the process of establishing the call centre completed Target Achieved

17. 2014/15 QUARTER 1 & 2 PERFORMANCE 17 STRATEGIC OUTCOME 4: SUSTAINABLE INSTITUTIONAL GROWTH AND DEVELOPMENT Outcome Description: Enrich organisational governance processes and procedures to promote integrated thinking and collaboration and to enable the sustainable growth and development of the RSR Strategic Objective 4.1: Assure corporate sustainability and growth Objective Statement: Develop corporate institutional capabilities to ensure sustainability and to effectively manage organisational growth and development Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 TargetActual Performance Q2 TargetActual Performance Communication Strategy implemented New Indicator 4 Branding Initiatives conducted Draft report on the process of Branding the RSR developed Target not Achieved The process of branding the RSR is being addressed in the Communication strategy that is still in the process of being developed 4 Branding Initiatives conducted Target Achieved Co-operative Agreements between RSR and external parties implemented Number of Agreements renewed, concluded and implemented 11 Agreements implemented 3 Agreements implemented Target Achieved3 Agreements implemented Target Achieved

18. 2014/15 QUARTER 1 & 2 PERFORMANCE 18 STRATEGIC OUTCOME 4: SUSTAINABLE INSTITUTIONAL GROWTH AND DEVELOPMENT Outcome Description: Enrich organisational governance processes and procedures to promote integrated thinking and collaboration and to enable the sustainable growth and development of the RSR Strategic Objective 4.2: Guarantee effective resource management Objective Statement: Enable effective and efficient management of organisational resources to support the sustained growth and development of the RSR Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 Target Actual Performance Q2 TargetActual Performance Percentage of Revenue effectively collected New Indicator 95 % of Revenue generated from exchange transactions collected 10 % of Revenue generated from exchange transactions collected Target not Achieved The Gazette containing the new Permit Fees schedule was issued in May resulting in RSR having to grant extensions to permits expiring in Q1 35 % of Revenue generated from exchange transactions collected Target Achieved NIMS implemented % implementatio n of the ICT Strategy 100 % NIMS Phase 2 implemented Rolled out Permit management module to the production environment Target AchievedImplemented the Occurrences Management module Target not Achieved The implementation of the module was delayed due to the late signoff of the functional specification.

19. 2014/15 QUARTER 1 & 2 PERFORMANCE 19 STRATEGIC OUTCOME 4: SUSTAINABLE INSTITUTIONAL GROWTH AND DEVELOPMENT Outcome Description: Enrich organisational governance processes and procedures to promote integrated thinking and collaboration and to enable the sustainable growth and development of the RSR Strategic Objective 4.2: Guarantee effective resource management Objective Statement: Enable effective and efficient management of organisational resources to support the sustained growth and development of the RSR Strategic Key Performance Indicator (KPI) Baseline as at 2012/13 2014 Annual Target Quarter 1 TargetActual Performance Q2 TargetActual Performance Procurement from Black Owned Enterprises % implementatio n of the BBBEE Strategy 60 % of new procurements from BBBEE Enterprises Target not Achieved The target of 60 % was not aligned to the RSR procurement demand 60 % of new procurements from BBBEE Enterprises Target not Achieved RSR will endeavour to achieve 60 % for the financial year.

20. QUARTERLY PERFORMANCE: COMPARATIVE ANALYSIS 20

21. THANK YOU Q & A 21