15
25 th March 2015 PRASA Challenges & Opportunities Standing Committee on Appropriations
25th March 2015
PRASA Challenges & Opportunities
Standing Committee on Appropriations
Agenda
1
A Introduction to PRASA
E
Funding Allocation and Spending Performance
C Strategic Plan
D
B
Challenges
Rail Modernisation – Key Projects
PRASA – the Passenger Rail Agency of South Africa
2
PRASA Structure
PRASA GROUP
PRASA RAILINTERSITE
INVESTMENTS
AUTOPAX(Long distance
coach)
METRORAIL(Suburban)
S-MEYL(Long distance)
•Translux•City to City
PRASA CRES
•Real Estate Solutions•Facilities Management
PRASA TECHNICAL
•R/Stock engineering and maintenance•Capital Projects
•Leverage investment on assets
The Primary object of PRASA in terms of the Legal Succession SATS Act is to:• Provide Urban Rail Commuter Services in the public interest
• Provide Long Haul Passenger Rail Services
• Provide Long Haul Bus Services
The Secondary object of PRASA is to:• Generate income from the exploitation of assets acquired by PRASA
PRASA – Summary Fact Sheet
3
Total Rail Network 22 300 Km
Commuter Rail Network 2 230 km electrified track
Number of Metro Coaches 4 638
Number of MLPS coaches 1 223 Coaches and 124 Locos
Number of Buses 458 Mercedes Benz, Man 109 and Old Fleet 150
Passenger Numbers Metrorail – 550 million passenger tripsBus Service – 3.1 million passengersSMEYL – 1.1 million passengers
Total Number of Employees ±16 500
Stations 498 stationsValue of Assets R36bn
Agenda
4
B Funding Allocation and Spending Performance
E
Introduction to PRASA
C Strategic Plan
D
A
Challenges
Rail Modernisation – Key Projects
5
Funding Allocation 2014/15
Allocation Amount Received Internal Revenue Total Revenue Total Expenditure
Current Allocation 3 563 397 3 420 799 6 984 196 7 856 462
Current Allocations amounted to 51% of PRASA's total revenue as at 28 February 2015.
The rest of the revenue is mainly made up of Fare Revenue and Rental Income which are
internally generated.
Total Expenditure is mainly made up of Employee costs, Energy costs, Material and
Maintenance and Municipal charges.
Allocation Amount Received Actual Expenditure
Capital Allocation 10 598 582 11 383 761
Total expenditure for the period that ended on 28 February 2015 exceeds the funding
allocation by R785 million.
The major spending items were
Rolling Stock Fleet Renewal Programme R5.7 billion
Acquisition of New Locomotives R1.4 billion
General Overhaul of Coached R702 million
Integrated Station Access Management Systems R735 million
Signalling and Telecommunications programme R488 million
Budget Framework over the 2015 MTEF
6
Notes
The Framework was used to guide the budgeting process.
Reprioritisation to projects was conducted, based on project priorities, project cash flow requirements and future
potential commitments
Overall growth in capital expenditure has increased by 11.3% per cent when compared to the 2014 MTEF of
R40 billion.
Table1: Budget Framework over the 2015 MTEF
Budget Framework 2014/15 2015/16 2016/17 2017/18 Total
R thousands Adjusted Budget MTEF
2015 MTEF Baseline (after reduction) 11 058 959 14 155 887 14 958 602 15 707 896 44 822 385
2015 MTEF Baseline (before reduction) 14 203 547 15 010 421 15 760 943 44 974 911
Capital Baseline Reduction -47 660 -51 819 -53 047 -152 526
2014 Baseline for New Rolling Stock 4 348 000 4 522 000 4 815 752 5 056 540 14 394 292
Year-on-year increase 28.0% 5.7% 5.0%
Adjustment
New Rolling Stock Cashflow Adjustment 1 351 959 -1 961 492 -645 486 -636 058 -3 243 036
Capital Baseline Reprioritization 1 961 492 645 486 636 058 3 243 036
2015 Baseline for New Rolling stock 5 699 959 2 560 508 4 170 266 4 420 482 11 151 256
Commitments
Projected commitments into the 2015/16 8 502 558 0 0 8 502 558
Available budget 11 058 959 14 155 887 14 958 602 15 707 896 44 822 385
Medium-Term Expenditure
Framework
Investment Outlook
7
57,5%42,5%
Infrastructure vs. Rolling Stock Investment Outlook Programmes Overview
Infrastructure
‒ Corridor Modernization
Programme
‒ Capital Intervention
Programme
‒ Station Improvement and
Upgrade Programme
‒ Rail Network Extensions
‒ Depots Programme
‒ Workplace Improvement
Programme
‒ Electrical Programme
Rolling Stock
‒ Rolling Stock Fleet Renewal
Programme
‒ Accelerated Rolling Stock
Programme
‒ New Locomotives
PRASA Corporate
8
R5.0bn
R6.5bnR6.9bn
Capital Programme 2015/16 2016/17 2017/18 Total MTEFPRASA Corporate 4 976 697 393 6 532 160 107 6 882 089 713 18 390 947 213
Rolling Stock Fleet Renew al Programme 2 560 508 293 4 170 266 732 4 420 482 736 11 151 257 761
Signalling and telecommunications Programme 1 875 973 200 1 844 184 241 1 912 835 295 5 632 992 736
ICT Systems 270 503 900 286 734 134 303 938 182 861 176 216
Enterprise Resource Planning (ERP) 88 587 000 40 794 000 43 241 640 172 622 640
Asset Protection Programme 181 125 000 190 181 000 201 591 860 572 897 860
Note:
The Integrated Ticketing
System Programme is
one of the key drivers for
ICT over the 2015MTEF
PRASA Rail
9
R1.7bn R1.7bnR1.8bn
Capital Programme 2015/16 2016/17 2017/18 Total MTEF
PRASA Rail 1 681 777 625 1 690 424 085 1 791 849 530 5 164 051 240
Capital Intervention Programme (minor w orks, safety & SNP) 584 496 125 403 720 800 427 944 048 1 416 160 973
Depots Machinery and Equipments 75 000 000 80 000 000 84 800 000 239 800 000
New Locomotives 562 281 500 719 103 285 762 249 482 2 043 634 267
Rolling Stock Adhoc Condition Work 160 000 000 169 600 000 179 776 000 509 376 000
Rolling Stock Components 300 000 000 318 000 000 337 080 000 955 080 000
PRASA Technical
10
Capital Programme 2015/16 2016/17 2017/18 Total MTEF
PRASA Technical 4 722 394 156 4 408 605 608 4 705 695 037 13 836 694 801
General overhaul of Metrorail Coaches 1 267 474 223 1 283 522 676 1 360 534 037 3 911 530 936
Refurbishment of Smeyl Coaches 217 329 000 103 750 000 151 415 304 472 494 304
Depots Modernization (5 depots, incl fencing) 1 336 378 316 804 305 000 939 373 441 3 080 056 757
Electrical Programme: Substation, New Overhead Lines & OHTE 323 578 500 342 087 000 362 612 220 1 028 277 720
Footbridges, Level Crossings and Structures 122 708 250 129 727 000 137 510 620 389 945 870
Metrorail/Gautrain Stray Current Mitigation 67 543 567 42 094 626 0 109 638 193
Station Modernization Programme (135 stations) 722 986 300 764 341 116 740 201 583 2 227 528 999
120km Perw ay Programme 310 000 000 327 732 000 347 395 920 985 127 920
Green View - Pienaarspoort Project 181 006 000 117 356 000 0 298 362 000
Queenstow n - Umtata 58 390 000 60 297 000 60 795 960 179 482 960
Bridge City 55 000 000 65 000 000 0 120 000 000
Motherw ell Rail Extension 60 000 000 368 393 190 605 855 952 1 034 249 142
R4.7bnR4.4bn
R4.7bn
PRASA Corporate Real Estate
11
R2.8bn
R2.3bn R2.3bn
Capital Programme 2015/16 2016/17 2017/18 Total MTEF
PRASA Corporate Real Estate 2 775 017 826 2 327 412 000 2 328 260 720 7 430 690 546
Station Improvement Programme 334 432 350 370 572 000 392 806 320 1 097 810 670
Station upgrades/ developmental acqusitions 484 160 200 385 350 000 408 471 000 1 277 981 200
Upgrade of Park Station 360 500 000 426 121 000 483 488 260 1 270 109 260
Workplace Improvement Programme (incl facilities) 406 279 375 414 093 000 423 938 580 1 244 310 955
Property Acquisition 197 189 468 - - 197 189 468
Integrated Station Access Management System (ISAMS) 882 456 433 614 676 000 619 556 560 2 116 688 993
Mabopane Station Upgrade 110 000 000 116 600 000 - 226 600 000
2015 MTEF Capital Programme
12
Capital Programme 2015/16 2016/17 2017/18 Total MTEF
PRASA Corporate 4 976 697 393 6 532 160 107 6 882 089 713 18 390 947 213
Rolling Stock Fleet Renewal Programme 2 560 508 293 4 170 266 732 4 420 482 736 11 151 257 761
Signalling and telecommunications Programme 1 875 973 200 1 844 184 241 1 912 835 295 5 632 992 736
ICT Systems 270 503 900 286 734 134 303 938 182 861 176 216
Enterprise Resource Planning (ERP) 88 587 000 40 794 000 43 241 640 172 622 640
Asset Protection Programme 181 125 000 190 181 000 201 591 860 572 897 860
PRASA Rail 1 681 777 625 1 690 424 085 1 791 849 530 5 164 051 240
Capital Intervention Programme (minor works, safety & SNP) 584 496 125 403 720 800 427 944 048 1 416 160 973
Depots Machinery and Equipments 75 000 000 80 000 000 84 800 000 239 800 000
New Locomotives 562 281 500 719 103 285 762 249 482 2 043 634 267
Rolling Stock Adhoc Condition Work 160 000 000 169 600 000 179 776 000 509 376 000
Rolling Stock Components 300 000 000 318 000 000 337 080 000 955 080 000
PRASA Technical 4 722 394 156 4 408 605 608 4 705 695 037 13 836 694 801
General overhaul of Metrorail Coaches 1 267 474 223 1 283 522 676 1 360 534 037 3 911 530 936
Refurbishment of Smeyl Coaches 217 329 000 103 750 000 151 415 304 472 494 304
Depots Modernization (5 depots, incl fencing) 1 336 378 316 804 305 000 939 373 441 3 080 056 757
Electrical Programme: Substation, New Overhead Lines & OHTE 323 578 500 342 087 000 362 612 220 1 028 277 720
Footbridges, Level Crossings and Structures 122 708 250 129 727 000 137 510 620 389 945 870
Metrorail/Gautrain Stray Current Mitigation 67 543 567 42 094 626 - 109 638 193
Station Modernization Programme (135 stations) 722 986 300 764 341 116 740 201 583 2 227 528 999
120km Perway Programme 310 000 000 327 732 000 347 395 920 985 127 920
Green View - Pienaarspoort Project 181 006 000 117 356 000 - 298 362 000
Queenstown - Umtata 58 390 000 60 297 000 60 795 960 179 482 960
Bridge City 55 000 000 65 000 000 - 120 000 000
Motherwell Rail Extension 60 000 000 368 393 190 605 855 952 1 034 249 142
PRASA Corporate Real Estate 2 775 017 826 2 327 412 000 2 328 260 720 7 430 690 546
Station Improvement Programme 334 432 350 370 572 000 392 806 320 1 097 810 670
Station upgrades/ developmental acqusitions 484 160 200 385 350 000 408 471 000 1 277 981 200
Upgrade of Park Station 360 500 000 426 121 000 483 488 260 1 270 109 260
Workplace Improvement Programme (incl facilities) 406 279 375 414 093 000 423 938 580 1 244 310 955
Property Acquisition 197 189 468 - - 197 189 468
Integrated Station Access Management System (ISAMS) 882 456 433 614 676 000 619 556 560 2 116 688 993
Mabopane Station Upgrade 110 000 000 116 600 000 - 226 600 000
Total 14 155 887 000 14 958 601 800 15 707 895 000 44 822 383 800
2015 MTEF Allocation 14 155 887 000 14 958 601 800 15 707 895 000 44 822 383 800
2015 MTEF Capital Programme
13
Economic Development Impacts
14
Job Creation
PRASA’s Capital Programme’s will have a strong emphasis on Job Creation and Economic
Development
Job Creation will be measured throughout the Programmes, based on the following:
o Job Creation quantum will be measured throughout the Programmes using consistent
measurement principles
o Quarterly reporting on Job Creation numbers
o Targets to be set during procurement phase and monitored throughout implementation
Furthermore, it is targeted that a full report on Job Creation will be submitted on all key
Capital Programmes by the end of the first quarter of 2015/16 Financial Year
