Moloto Rail Development Corridor Portfolio Committee on Transport

Moloto Rail Development Corridor Portfolio Committee on Transport 22 September 2015 M 315 Marks Building Cape Town

LINK WITH THE SIP’s The project has been identified as a component of the Strategic Integrated Projects (SIP) 01: Unlocking South Africa’s northern mineral belt – under the Presidential Infrastructure Coordinating Commission (PICC). 2

PROJECT RATIONALE • Long travel times • Road accidents with loss of life, injuries and damage to property • High cost to both Government and commuters • Unacceptable service quality – special needs, delays, quality of life • Insufficient and poor road network – feeder services • Increasing traffic congestion in urban areas 3

GOVERNANCE STRUCTURES Project Management Committee • DOT (Chair) • National Departments • Provincial Departments (MP, GP, LP) • PRASA and SANRAL • Municipalities (Nkangala DM, City of Tshwane, Greater Sekhukhune DM, Thembisile Hani LM, Dr JS Moroka LM) • Development Bank of SA Steering Committee • Director General: DOT (Chair) • Directors General: National Departments • Provincial HOD’s (MP, GP, LP) • PRASA • Municipal Managers (Nkangala DM, City of Tshwane, Greater Sekhukhune DM, Thembisile Hani LM, Dr JS Moroka LM) • Development Bank of SA Political Oversight Committee • Minister of Transport (Chair) • National Ministers • MEC’s (Mpumalanga, Gauteng, Limpopo) • PRASA • Executive Mayors (Nkangala DM, City of Tshwane, Greater Sekhukhune DM, Thembisile Hani LM, Dr JS Moroka LM) 4

MARBLEHALL 9% 3% Origins SIYABUSWA m N N 1 1 k 18 1 ce n 40% R 568 GROBLERSDAL a t Dis MOLOTO 22% 24% R 573 km 59 e c tan Dis PRETORIA CBD Destinations CENTURION 5

Queenswood Pienaarsrus Vilier Gezina Capital Park Daspoort Deernis Tshwane distribution 14 stations to De Wildt Mountain View Hercules Technicon Rant Belle Ombre 5 Station to 26+ stations to Saulsville Park Station 18% 14% Hatfield Loftus Mears St Walker St Rissik Devenish St Pretoria Barrack Rebecca Bosman St Hartbeespruit Schutte St Pretoria Wes Eersterust Silverton Koedoespoort Golf Elektro 9 Stations to Rayton 84% of pax to 29 stations in Tshwane & 16 % other modes 13% 39% 6

RAIL SERVICE DESIGN Operational Plan 46 Train sets 12 car train sets 15 000 passenger / hour 2 hour peak high 54 Million operational km (base year) • 3 new staging yards in the corridor • 22. 5 Million Passenger Trips per year • • • 2 Hour Peak 7

RAIL SERVICE DESIGN Rail Infrastructure • 125 km of double track • 3 KV DC OHTE • 38 Road over rail bridges • 23 Rail over road bridges • 9 pedestrian bridges • 44 river crossings • 14 new stations • 1 major multi modal interchange • 120 km/h operational design speed • Signalling Systems 8

The feeder services Feeder service design • 49 bus routes • 681 bus stops • 832 km total road length • 385 km currently gravel • 500 km of sidewalks and • 500 km street lighting Operational Plan • 226 low-floor 40 seater buses • 320 peak hour trips (base year) • 9. 6 million km (base year) 9

Station Example: Thembalethu Station Walking distance < 1 km 10

Environmental Due Diligence • No environmental fatal flaws. • Full environmental Impact Assessment required. • A variety of environmental issues/actions. • Extensive public participation process required. 11

Project procurement Components Land Acquisition Supply Trains Construct Infrastructure Operate Trains Operate Infrastructure Feeder/ Distribution Bus 12

Moloto Corridor Costs NPV Rail land costs Rail infrastructure (75% Capex) Access Charge (36 years) Rail Depot (Capex) Rolling stock (Capex) Rail operations (Opex) Feeder Road upgrade R 573 upgrades Feeder bus Contract (subsidised service contract) Bus (Fleet and facilities) Contingencies PIMO R 1. 3 Bn R 13. 5 Bn R 8, 4 Bn R 1. 0 Bn R 10. 0 Bn R 16, 0 Bn R 2. 7 Bn R 3. 8 Bn R 6. 8 Bn R 2. 3 Bn R 2. 2 Bn R 0. 4 Bn Sub-total R 68. 4 Bn Corridor fare revenue IC 52 Taxes -R 16. 6 Bn -R 13. 6 Bn -R 0. 9 Bn Sub-total -R 31. 1 Bn Total R 37. 3 Bn Authority PRASA / PPP PRASA Local / Prov/ SANRAL Prov /Sanral NDOT/ provinces n/a 13

Government Commitment R 12. 00 Bn Extra Construction IC 52 R 10. 00 Bn Operations R 8. 00 Bn 10. 69 R 6. 00 Bn 7. 34 R 4. 00 Bn 5. 69 R 2. 00 Bn 1. 69 1. 92 0. 58 0. 62 0. 66 0. 69 0. 74 0. 78 0. 83 0. 35 0. 88 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 0. 94 R 0. 00 Bn 1. 37 0. 41 0. 48 0. 93 0. 98 Yr 9 14 Yr 10

Operation Period 36 years 2059 Operations period ends 5 years 2022/ 23 Operation Starts Construction 2017/ 18 Construction Starts TA 3 Procurement 2016/ 17 Procurement Starts Complete PPP TA 1 2015 TA 2 Design Timeline Summary TA - Treasury Approval 15

MTEF APPLICATION Funding is requested for the preliminary design, the Environmental Impact Assessment (EIA) process and the funding of the PIMO in PRASA as follows: 2016/17 2017/18 2018/19 Total MTEF Preliminary Designs for Bus & Rail Infrastructure 70 000 85 000 000 240 000 Environmental Requirements 200 000. 00 3 800 000 2 000 6 000 4 000 5 015 639 6 251 058 15 266 724 74 200 000 93 905 639 93 251 058 261 266 724 & Compliance PIMO costs Total costs 16

CONCLUSIONS • Treasury Approval 1 application submitted in Oct 2014; • National Treasury Review Committee considered application on 26 th June 2015; • PRASA and DOT and are awaiting formal feedback from National Treasury; Key preliminary concern raised by National Treasury: • Rail demand forecast indicates and increase in passengers that will entrench the spatial distortions of apartheid ü - rail proposal is an improved level of service vs current contracting arrangements and in fact will promote Transit Oriented Developments (TOD), act as a driver for local economic development, to promote job creation and improve social cohesion through feeder services that will link social and economic infrastructure. 17

WAYFORWARD 1. Immediate approval for 2016/17 funding required. 2. Preliminary Design Process to commence required in the following work streams: – – Technical (Prelim Design, route determination) Optimised Financial Solution Environmental Studies PIMO fully operational 3. Economic development plan and spatial development plan to be coordinated via he Municipal IDP’s and guidance of the PICC relevant SIP’s. 18

Taking the Moloto Rail Development Corridor forward: 1. PRASA has established the Project Implementation and Management Office (PIMO) – located at the PRASA House in Hatfield 2. PRASA to further manage the processes for TA 2 & 3 Approvals and see the project to completion. 3. The DOT to continue working with PRASA and monitor 19

Thank You