1 / 72

Gautrain Rapid Rail Link Parliamentary Presentation to Transport Portfolio Committee

This presentation provides background, rationale, objectives, and an overview of the Gautrain Rapid Rail Link project. It highlights the public-private partnership process, selection of preferred bidder, financial liabilities, public transport integration, and the way forward. Presented to the Transport Portfolio Committee by Jack van der Merwe, the Project Leader, and Gautrain Chief Executive, on November 8, 2005.

yolandaa
Download Presentation

Gautrain Rapid Rail Link Parliamentary Presentation to Transport Portfolio Committee

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Gautrain Rapid Rail LinkParliamentary Presentation toTransport Portfolio Committee Jack van der Merwe (Pr. Eng) Project Leader: Gautrain Chief Executive: Public Private Partnerships Gauteng Provincial Government 8 November 2005

  2. Content • Background, rational & objectives • System overview • PPP process • Selection of preferred bidder • Financial liabilities • Public transport integration • Way forward

  3. Background, Rational & Objectives

  4. Background

  5. The Powerhouse of Africa • Gauteng is: • Less than 2% of Country’s surface area • Home to 70% of the SA’s workforce and is responsible for 49.6% of all employee remuneration • Accounts for some 33% of GDP of South Africa • Accounts for about 10% of Africa's GDP and is the fourth largest economy in Africa • In the past five years, our provincial economy grew at an annual rate of 3.7%, increasing to over 5% in 2004 • FDI has grown from R450 million in 2001 to R1.5 billion in 2003 • Most developed infrastructure in Africa • The population is expected to exceed 9 million by the endof 2004

  6. Gauteng – EconomicDevelopment Strategy • Existing economic strengths : • Mining • Heavy Industry • Financial & Banking sector • Proposed strategy: • Smart industries- Gauteng the “smart” Province • Move toward high value-added manufacturing • Enhancing the business services (Finance & Banking) sector and business tourism

  7. Rationale

  8. TransportChallenges Mobility Maintenance Accessibility

  9. 40 35 Western Cape Eastern Cape Gauteng 30 Northern Cape 25 Free State 20 KwaZulu-Natal 15 North West Province 10 Gauteng Mpumalanga 5 Northern Province 0 Provinces Share of Gauteng inNational Vehicle Fleet

  10. TREND 350 Western Cape 300 Eastern Cape 250 Northern Cape 200 Free State KwaZulu-Natal Gauteng 150 North West 100 Gauteng 50 Mpumalanga Northern Province 0 Provinces Gauteng Vehicles/km

  11. Objectives of the Gautrain Project

  12. Development Goals • Economic growth, development and job creation • Must meet other goals of Government (SME promotion, Business tourism, BEE, etc.) • To promote business tourism by means of the link between JIA and Sandton

  13. 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

  14. 2000 Northbound and Southbound Vehicle Volumes

  15. 2005 Northbound and Southbound Vehicle Volumes

  16. Gautrain • 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

  17. 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

  18. Overview of the Proposed System

  19. Hatfield Pretoria Centurion Midrand Sandton Marlboro Rhodesfield JIA Rosebank Park Station Hatfield Pretoria Centurion Midrand Marlboro Sandton Preferred Route Rhodesfield Anchor Stations JIA Rosebank Stations Airport Park Station

  20. Technical Specs • International standard gauge • Maximum speed: 160 – 180 km / h • Modern state of the art trains • Thus totally different from existing SA system • Different trains for commuters and air passengers • Initial demand 134 000 passengers trips per day • Frequency every 10 – 30 minutes • Minimum operating hours 05h30 – 20h30 • Safety and security

  21. Interesting Facts (1) • Approximately 104 new commuter rail coaches willbe manufactured • Approximately 250 new bus coaches will be used • 3,6 million train kilometres and 674 million passenger kilometres will be travelled per year • 10,6 million bus kilometres will be travelled per year • There will be a train at least every 10 minutes during the peak time at stations between Johannesburg and Pretoria.

  22. Interesting Facts (2) • 260 000 concrete sleepers will be manufactured for use in the track • 20 000 tons of steel will be required to manufacture the steel rail track • 112 000 m² of bridges and viaduct structures will be constructed • More than 9 000 new parking bays will be required • 65 road intersections in the vicinity of stations will be upgraded

  23. Market & Ridership

  24. House-hold Income Commuter Market Focus Rail Taxi Bus Car Transport mode (Commuters) Market Focus

  25. Project Target Market • Initial demand 134 000 passengers trips per day • Car users (Attract with excellent service / competitive travel times) • Complementing existing transport modes (Taxi, Bus & Rail) • Cater for all trip purposes (Peak and off peak) • International tourists and airline passengers

  26. Feeder and Distribution Services • Access to the Gautrain - one of the key success factors • Initially a large part of the market segment not within walking access of stations • Provide dedicated bus services: • Door-to-door service and travel time • Convenience of transfers • Same quality and Level of Service offered from point of access to “front door” at destination end of trip • Integration with existing and other new systems • Ample park and ride facilities

  27. 10 km radius Legend: 5 km radius Rail Line & Rail Operational Area Station Precinct Dedicated Feeders Dedicated Distributor Existing PT Service Catchment area Concept

  28. SERVICE ORIGIN DESTINATION DISTANCE COST Commuter Pretoria Johannesburg 57 km R 16,40 Commuter Pretoria Sandton 46,8 km R 14,36 Commuter Rhodesfield Sandton 19,0 km R 9,08 Airport JIA Sandton 20,4 km R 70,40 Modelled Single Journey Fare Cost less than car, more than existing bus / taxi / rail

  29. What Will the Economic Impact Be? • Number of jobs created / sustained: • Construction : 93 000 • Operating and Maintenance : 2 700 p.a. • Urban economic activity : 40 000 p.a. Increased business sales : R 6 billion Increase in Gauteng GGP : 0,7 - 1%

  30. PPP Process

  31. Project Process • Fundamental Principles • Multi-billion Rand project • Cannot be funded in total by Government • Can only be developed as a Public-Private Partnership • PPP project (BOT type project) • Must have political buy-in & the private sector must show an appetite for the PPP project • Must comply with all legal requirements

  32. Implementation Process • Four pillars • Political will & commitment • Viable project (base case design) • Technical • Financial • Legal/Institutional • Funding (for Infrastructure & Operations) • Government’s portion • Private Sector’s portion • Community acceptance & Buy-in • Socio-economic benefits • Power of expropriation

  33. Civil Works Modeling Rider ship Value Add Station & Feeder Land & EIA Operate & Maintain Elec. / Mech. Rolling Stock Operator RollingStock PPP-U 1 Contractors Feasibility Financial Model (BOT) Engineering, Town Planning and Economic Development Budget & Authorisation Pre-Qualification & RFP Equity & Financing Banks & Financial Institutions PPP-U 2 Final selection of bidder Financial and Banking Financial Closure PPP-U 3 Construction Legal and Institutional Commissioning Government Gauteng National Treasury Blue IQ PPP Funding Local International Investment Aid Process CONSULTANTS EXPENDITURE INCOME Authorisation Consortium

  34. PPP Components • Technical content • Financial proposal • Legal mark-up • Socio-economic Development

  35. Socio-Economic Development (1) • BBBEE • Equity • Ownership • Directorship • Training & development • Sub contracting • Procurement • Job creation

  36. Socio-Economic Development (2) • Promotion of SMME’s • Focus on women, youth and people with disabilities • Local content • Local labour • Investment / focus on marginalised areas

  37. PPP Requirements (1) • Feasibility • Value for money • Public Sector Comparator (PSC)(What will it cost if Government does the work through normalprocurement process; and including completion and integrationrisk and cost) • Affordability • Total cost of project, expressed in Net Present Value (NPV) • Yearly cost to the province (contingent liability) • Maintain the 80/20% ratio in social vs.. rest split in budget

  38. PPP Requirements (2) • Feasibility (continue) • Risk transfer • Identify, cost and allocate various risks to the role players best equipped to mitigate and manage them

  39. Selection of Preferred Bidder

  40. Political Process • Pre-feasibility study : Dorsch Consult – 1997/98 • Premier announces Gautrain : Opening of Legislature – January 2000 • Appointment of Political Cabinet Committee to oversee the project • Overseas visit by Political Committee 2001 • PPP process

  41. Procurement Process • RFQ : Two pre-qualified bidders May 2002 • RFPI : Discussions May – Sept. 2002 • RFPII : Issued 29 Nov 2002 Submitted 30 Sept 2003 • RFPIII (BAFO) : Submitted 29 Jan 2005 • FBAFO : 26 March 2005 • Preferred Bidder : 2 July 2005 ( and Reserve Bidder ) • Financial close : December 2005 ?

  42. Bombela Consortium Bombardier Transportation Bouygues Travaux Publics Murray & Roberts RATP International SPG group Loliwe Rail Contractors Loliwe Rail Express Standard Bank RMB ABSA Gauliwe Consortium CAF Dragados Grinaker – LTA Metro de Madrid CANAC Ufudo Tirisano Nedbank Investec RFQ : 2 Pre-Qualified Bidders (May 2002)

  43. Bombela: Contractual Entities CONCESSIONAIRE BOMBELA Bombardier: 25.0% Bouygues: 25.0% M&R: 25.0% SPG : 25.0% RATP: 51.0% M&R: 23.9% SPG: 25.1% TURN KEY CONTRACTOR OPERATOR CIVIL CONTRACTOR E&M CONTRACTOR E&M MAINTAINER

  44. Bombela Rolling stock

  45. Financial Liabilities

  46. Gautrain Cost Estimate • Initial estimate R 7,0 billion (Feb 2002) • Cost increases ( MEC Ignatius Jacobs 26 Oct 2005) • EIA requirements (29 Sept 2003) – route alignment changes & mitigating measures • Net effect of higher ridership and the consequent increase in the size of the system due to opening date moving from 2007 to 2010 and the recent high increases in land costs impacting on the acquisition of land needed for the construction of the project • Reviewed risk values due to the fact that in a PPP project all risks need to be priced and incorporated. • VAT on the construction elements that was originally not included in the 2002 costing • Reviewed contingencies as a consequence of the above factors

  47. Gautrain Cost Estimate • Cost increases ( MEC Ignatius Jacobs 26 Oct 2005) (continue) • A few minor reasons that have contributed to the increased cost are additional tunnel lining due to geotechnical conditions, relocations of bulk services and reviewed insurance premiums • Result of these cost increases : Feb 2002 estimate increased to R12,0 billion ( a 71% cost increase) • If this estimate is escalated to a Dec 2005 number and expressed as a total exposure of government over the next 5 years (in nominal terms ) it is R 20,0 billion plus ( as stated by Min Manuel )

  48. Affordability of Gautrain • After receiving RFP II in Sept 2003 it became apparent that the Province would have to borrow funds to stay within the 80/20 split • Discussions with Min Manuel (principle agreement) • Provincial borrowing powers • Revised TA1 authorisation • Financial model of Provincial income and expenditure for next 20 years • BAFO process to reduce cost and risk to Province

  49. Bidders Position Specification Changes Costing Challenges Best and Final Offer Process AffordabilityGap EIA Impacts Risk Revision Affordability Revision Provincial Affordability TAI Revised Affordability Gap

  50. Affordability of Gautrain • FIFA 2010 Soccer World Cup • Gautrain formed an integral part of South Africa’s bid document • Gautrain was reported on extensively by FIFA in its evaluation and final recommendation • Must form the backbone of the public transport system in Gauteng for the World Cup • Achieving this in time becomes an RSA undertaking

More Related