11 March 2003 1 11 March 2003 11 March 2003 The Portfolio Committee on The Portfolio Committee on Transport Transport Presentation on SARCC’s Strategic Presentation on SARCC’s Strategic Goals, Plans and Budget for 2003/2004 Goals, Plans and Budget for 2003/2004 By By CEO – Eddie Lekota CEO – Eddie Lekota SA Rail Commuter Corporation Ltd
SA Rail Commuter Corporation Ltd. The Portfolio Committee on Transport Presentation on SARCC’s Strategic Goals, Plans and Budget for 2003/2004 By CEO – Eddie Lekota. 11 March 2003. Presentation Overview. SARCC Mandate Vision Mission Corporate Strategic Objectives Major Strategic Plans - PowerPoint PPT Presentation
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11 March 2003 1
11 March 200311 March 200311 March 200311 March 2003
The Portfolio Committee on The Portfolio Committee on TransportTransport
Presentation on SARCC’s StrategicPresentation on SARCC’s Strategic
Goals, Plans and Budget for 2003/2004Goals, Plans and Budget for 2003/2004
ByBy
CEO – Eddie LekotaCEO – Eddie Lekota
SA Rail Commuter Corporation Ltd
11 March 2003 2
Presentation Overview
• SARCC Mandate
• Vision
• Mission
• Corporate Strategic Objectives
• Major Strategic Plans
• Budgetary Implications (by Jakkie van Niekerk)
• Conclusion
11 March 2003 3
The Mandate of the SARCC
Mandate
The SARCC’s mandate is to ensure
that, at the request of the National
Department of Transport or any
sphere of government, rail
commuter services are provided in
the public interest, and to promote
rail as the primary mode of mass
commuter transportation.
Primary & Secondary Objectives
of the Act
Primary Objective
The SARCC’s mandate is to ensure that, at
the request of the National Department of
Transport or any sphere of government, rail
commuter services are provided in the public
interest, and to promote rail as the primary
mode of mass commuter transportation.
Secondary Objective
To generate income from the exploitation
of assets transferred to the SARCC by the
Minister of Transport under Section 25 of
the Legal Succession to the SATS Act
(Act 9 of 1989)
11 March 2003 4
To ensure
The provision of rail commuter services
In the public interest
The Mandate of the SARCC
At the request of NDOT or Transport Authority.
11 March 2003 5
To ensure
The provision of rail commuter services
In the public interest
The Mandate of the SARCC - Legal Succession Act – to Ensure
11 March 2003 6
To ensure: (provision of rail commuter services)
•To make sure
•To make certain
•To guarantee
To guarantee: (provision of rail commuter services)
•Offer a formal assurance
•Something that makes a specified condition certain
•To take responsibility for
•To undertake to protect
•To promise
The Mandate of the SARCC - Legal Succession Act
11 March 2003 7
To ensure
The provision of rail commuter services
In the public interest
The Mandate of the SARCC - Legal Succession Act
11 March 2003 8
Public
Community•Trade and industry
•Suppliers•Labour•Other modes
Business Stakeholders
ShareholderGovernment (Incl. TA’s)
Users
The Mandate of the SARCC - Legal Succession Act - Public Interest
11 March 2003 9
To ensure
The provision of rail commuter services
In the public interest
The Mandate of the SARCC - Legal Succession Act
11 March 2003 10
Service RequirementService Requirement
Service ProvisionService Provision
In public interestIn public interest
Travel NeedsTravel Needs Available FundingAvailable Funding
Shareholder
CommunityStakeholders
Users
The Mandate of the SARCC - Legal Succession Act – Provision…
11 March 2003 11
Vision
To establish rail as the preferred mode of public transport and to be the recognized champion in ensuring the
provision of quality commuter rail services for all transport authorities in South Africa, in the public interest
11 March 2003 12
Mission
To ensure the movement of people through the provision
of safe, reliable, affordable and sustainable commuter
rail services; and to develop the rail assets, using
best practices in the interest of all stakeholders.
11 March 2003 13
Corporate Strategic Objectives
1. Utilize and develop the commuter rail provision environment to protect and
promote the interest of the users, public and stakeholders.
2. Support the rail system through ITP’s and IDP’s towards the aims and
requirements of policies of all tiers of government.
3. Establish the delivery policy framework for rail commuter service provision.
4. Improve (and establish where necessary) the performance compliance framework
and mechanisms for funding, delivery and compliance of rail commuter services.
5. Develop and promote the provision of sustainable mass-moving rail commuter
services, optimized funded enhancements and professional services towards
socio-economic development.
6. Create an environment for the development of expertise and knowledge within a
consultative and rail business intelligence framework.
11 March 2003 14
Major Strategic Plans
• Funding and optimization of subsidy
• Bi-nationals and SADC
• Investment in assets
• Transformation of SARCC and commuter rail business.
• Safety and security of passengers and assets
• Promotion of rail as the mass mover.
11 March 2003 15
Major Strategic Plans - Transformation
• Internal Transformation
•Management and employee representativity
•Black Economic Empowerment
•Tender Policy and suppliers’ / consultants’ workshop
•Skills development and exchange programmes
•Information resource and business intelligence
•External focus – new structure incorporating public participation
• Safety and security remains the biggest threat to the image of rail commuting
2000 2001 2002
Injured Killed Injured Killed Injured Killed
Operational Safety Act 85
Violent Crime
Total
% of Incidents
involving people
400
354
754
17
12
29
468
401
929 35
21
14 414
416
830 28
11
17
24,8% 29,3% 42,1%
11 March 2003 17
Major Strategic Plans – Safety and Security
Cost of damage to assets
2001/2002 2002/03
•Vandalism R8,7m R11,3m
•Arson - Buildings R20,1m R32,4m
•Arson - Rolling Stock - R48,0m (Insured cost)
(Replacement cost = R350 m)
11 March 2003 18
Major Strategic Plans – Safety and Security – Court Case
• Court case in Western Cape has serious implications.
• Costs to address the issue of the “open system” as is required by the outcome of the
court case.•Closing-off the system = R1,2bn once-off capital•Operating costs R1,4bn per annum.
11 March 2003 19
Major Strategic Plans – Safety and Security Plan in Progress
• SARCC investigated increase in crime on the rail commuter system since
March 2002.
• Developed total safety and security strategy with feasibility pilot study in
Western Cape.
• Project involves alarms on cables, helicopter surveillance, dedicated armed
response teams and development of intelligence capability with existing forces.
• Pilot successful and has been implemented on the entire Western Cape
system since October 2002.
11 March 2003 20
Major Strategic Plans – Safety and Security Plan in Progress
Results since October - December - Western Cape
•Serious crime related incidents - Decreased 63%
•Serious liability incidents - Decreased 60%
•Murder - Decreased 63%
•Attempted murder - Decreased 63%
•Assault - Decreased 58%
•Robbery Decreased 53%
•Asset damage - Decreased 20%
•Burglaries - Decreased 100%
•Arson - Decreased 100%
Cost of strategy for Western Cape = R15m per annum
11 March 2003 21
Major Strategic Plans – Safety and Security – Other enhancements
• Safety Regulator
•SARCC’s engagement with the regulator
•SAPS Rail Unit
•Once approve and implemented, it will assist in the reduction in crime incidents and damage to assets
•CCTV on stations and in trains in the future
11 March 2003 22
Major Strategic Plans – Rail Promotion as Mass-Mover
Extension of Lines
• Several expressions of interest in unserviced areas. (Free State, Limpopo,
North West).
Status
• Total 180 new proposals identified since 1990. (New stations, interchange
facilities, extensions, new lines and network/yard improvements).
• Conceptual design of highest priority projects undertaken.
• Only 3 stations proceeded for implementation and Katlehong Kwesine line
re-instated.
• Khayelitsha line extension under design.
11 March 2003 23
Investment Potential
• R10m requested for 2003/04 from internal capital programme.
• If approved - enable basic planning of 5 projects and initiation of 7 projects.
• Motivations submitted for implementing 3 top priority new stations. (Orange Farm
Oakmoor/Olifantsfontein, Lebaleng).
• Total of 6 priority upgrade stations submitted for funding for partial or full
upgrade (±R69m). (Allow for special needs passengers, ticket verification, security, PA and information systems).
Repositioning of commuter rail
•Aggressive marketing and promotion of rail
Major Strategic Plans – Rail Promotion as Mass-Mover
11 March 2003 24
Major Strategic Plans - Subsidy optimisation
•SARCC believes metropolitan rail systems can be more efficient if totally rationalised/
optimised in terms of a metropolitan rail plan.
Categories of efficiency proposals
1) Institutional and regulatory efficiencies
•Improving the current regulatory regime between SARCC and Metrorail (Concessioning
Agreement).
•A review of the incentive and budget framework of the contractual agreement.
2) Operational efficiencies
•Managing peak demand to improve utilisation of the system and decrease operational cost.
(System at its peak for 5 hours a day whereas all equipment and resources are deployedat full for 24 hours a day).
•Rationalisation of services - more optimum modes with modal integration. Rail services not economical for 60 - 100 passengers per hour - eg night services.
•Nodal transfer and rail corridor management in association with other transport modes
11 March 2003 25
Major Strategic Plans - Subsidy optimisation
2) Operational efficiencies……continued
•Fare evasion in terms of nodal stations - close the system through major interchange.
facilities. Passengers will have to enter through at least one verification point.
•Improve fare structure and ticket system. (Reduce the need for automatic fare collection points and equipment).
•Concentrate 20% of effort on 80% of activity. - 50 major nodes vs 460 stations.
•Major nodes highly developed within closed system paradigm. The strategy will concentrate on the customer, as well as safety and security personnel.