Presentation to the Portfolio Committee on
Transport Gautrain Update
Presentation to the Portfolio Committee on
Transport Gautrain Update
Jack vd Merwe (Pr. Eng)CEO: Gautrain Management Agency
25 August 2009
Gautrain in a nutshellGautrain in a nutshell
Scope
Currently the largest Greenfields rail infrastructure project in the world.
Emphasis on the integration of Gautrain with all existing public transport modes in Gauteng
Was voted “Best Global Deal to Sign” in 2007 by the International Public Finance
Association
Technical specifications• Safety and security paramount • International standard gauge• Maximum speed: 160 km/h• 24 modern state of the art trains
– Bombardier’s Electrostar– Thus totally different from existing SA system
• Different couches for commuters and air passengers• Frequency every 10 to 30 minutes• Minimum operating hours 05:30 to 20:30
Feeder & distribution service• Gautrain bus service integrated with Gautrain rail• 125 buses • 36 feeder and distribution routes spanning 420 km • Every 12 to 30 minutes in relation to train time-table• 2 200 bus trips per day• 26 000 km of bus services per day• Gautrain bus links to complement
BRT & bus services in metropolitan areas• Ample park and ride facilities
Objectives of the Gautrain Project
Objectives of the Gautrain Project
Development Goals
• Economic growth, development and job creation
• Must meet other goals of Government (SMME promotion, Business tourism, BBBEE, etc.)
• To promote business tourism by means of the link between JIA and Sandton
Transportation Goals
• Alleviate severe traffic congestion (traffic volumes in corridor growing at 7% p.a. for more than a decade)
• Show Government’s commitment to the promotion of public transport (National Land Transport Transitional Act, Act 22 of 2000) – Catalyst public transport project
• Improve the image of public transport with this project and attract more car users to public transport
• To link to the Tshwane Ring Rail Project, linking Mamelodi, Atteridgeville and Soshanguve / Mabopane
• Part of holistic transport plan and network for Gauteng• Catalyst public transport project of national importance
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Flagship Public Transport Project of National Significance
• Gautrain is a flagship public transport project of national importance. It can be the catalyst to free existing resources or to generate new resources to promote public transport in a holistic fashion
• Need to ensure Gautrain is integrated into the public transport system of Gauteng:– Promotion of public transport– Strategic integration– Operational integration– Funding strategy / process– Gautrain governance structure
Spatial Development and Urban Planning Goals• To contribute towards urban restructuring,
shortening travel distances and improving city sustainability
• Stimulate the renovation and upliftment of the Johannesburg and Tshwane CBDs
• Link the main economic nodes in Gauteng with JIA
The The GautrainGautrain will promotewill promotePublic TransportPublic Transport
SMME & BBBEE DevelopmentSMME & BBBEE DevelopmentTourismTourism
Business developmentBusiness development
The project stimulatesThe project stimulatesEconomic growthEconomic growth
Investment Investment New developmentNew development
Job creationJob creation
Design toDesign toRestructure urban areasRestructure urban areas
Reduce travel distances, time Reduce travel distances, time and costand cost
Improve city sustainability Improve city sustainability
Gautrain: More than Just Another Transport Project
FundingFunding
Funding
• Gautrain has 5 sources of funding– DoRA (Division of Revenue Act) money from central
government via the Department of Transport– MTEF (Medium Term Expenditure Framework) from
Gauteng Provincial Government– Private Sector Equity– Private Sector Borrowing– Provincial Borrowing
Project Financing
Expenditure• Currently in month 30 (of 54 month development
period)• Expenditure to date R 16,221 billion• Financial Close amount : R 25,1 billion• CA is:
– Fixed Price;– Fixed Scope;– Fixed time concession contract
• Estimated cost at completion?
Expenditure• PPP regulations & authorisation must be followed• TA3 Authorisation has specified a
– CAPEX Cap– OPEX Cap
• How can the project cost increase?– Increase in FOREX (Hedged)– Increase in CPIX (only the delta of )– Variation Orders– Claims from the Concessionaire
Lessons Learned
• Creation of the GMA– Single point accountability
• Contract form – Public Private Partnership (PPP)– Complex– Difficult to handle variations
• Composition of Concessionaire– Equity– Operator
Lessons Learned
• Link to external events– FIFA 2010 Soccer World Cup– Added pressure / Places Government at a
disadvantage
• Scope of work must be well defined• Interaction & co-operation 3rd Parties essential
– Stakeholders & Role players
• Continuous consultation vs. time it takes to implement the project
Lessons Learned
• Challenges of integration– Strategic integration – infrastructure– Operational integration– Ticket integration vs. Fare integration
• EIA process– Time it takes to complete the approval process– Compliance to the Environmental Management Plan
• Technical challenges– Tunnel & Dolomites
Lessons Learned
• Creation of a competent team to manage the process– In-house – Consultants (local & international)– Cost– Retention of expertise
• Challenges of a green-fields project– Public sector comparator– Ridership predictions
Lessons Learned
• Acceleration cost to open the Airport link in time for the FIFA 2010 Soccer World Cup
• Possible future claims
The Seven Stages of a PPP Project• Enthusiasm• Promises & Programmes• Disillusionment• Panic• Hunt for the guilty• Punishment of the innocent• Reward for those who had nothing to do with
it
Thank YouThank Youwww.gautrain.co.za
“The Future is not for the faint hearted.”
R Reagan
“The philosophers have only interpreted the world, the point
however is to change it” Karl Marx
