36 th ANNUAL CONFERENCE & EXHIBITION Birchwood Conference Centre, Gauteng 3-5 MARCH 2005 Gautrain...
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36 th ANNUAL CONFERENCE & EXHIBITION Birchwood Conference Centre, Gauteng 3-5 MARCH 2005 Gautrain Rapid Rail Link By Jack van der Merwe – CEO: PPP Unit, Gauteng Department of Finance & Economic Affairs T INSTITUTE OF QUARRYING & ASPASA
36 th ANNUAL CONFERENCE & EXHIBITION Birchwood Conference Centre, Gauteng 3-5 MARCH 2005 Gautrain Rapid Rail Link By Jack van der Merwe – CEO: PPP Unit,
36 th ANNUAL CONFERENCE & EXHIBITION Birchwood Conference
Centre, Gauteng 3-5 MARCH 2005 Gautrain Rapid Rail Link By Jack van
der Merwe CEO: PPP Unit, Gauteng Department of Finance &
Economic Affairs T INSTITUTE OF QUARRYING & ASPASA
Slide 2
Gautrain Rapid Rail Link Institute for Quarrying 3 5 March 2005
Jack van der Merwe (Pr. Eng) Project Leader: Gautrain Chief
Executive: Public Private Partnerships Gauteng Provincial
Government
Slide 3
Background
Slide 4
The Powerhouse of Africa Gauteng is:Gauteng is: Less than 2% of
Countrys surface area Home to 70% of the SAs workforce Accounts for
some 40% of GDP of South Africa Generates 9% of GDP of Africa Most
developed infrastructure in Africa Most technologically advanced
Province The population is expected to exceed 9 million by the end
of 2004
Slide 5
Gauteng Economic Development Strategy Existing economic
strengths :Existing economic strengths : Mining Heavy Industry
Financial & Banking sector Proposed strategy:Proposed strategy:
Smart industries - Gauteng the smart Province Move toward high
value-added manufacturing Enhancing the business services (Finance
& Banking) sector and business tourism
Slide 6
"Blue IQ is a multi-billion Rand initiative of the Gauteng
Provincial Government to invest in economic infrastructure
development in identified mega projects in tourism, smart
industries and high value-added manufacturing to create a truly
smart province." Provincial Blue IQ Initiatives Sterkfontein Caves
Sandton Johannesburg Soweto Germiston Kempton Park Pretoria Rosslyn
Braamfontein Alberton CSIR
Slide 7
Rationale
Slide 8
Mobility Accessibility Maintenance Transport Challenges
Slide 9
Traffic Flow on N1 N1 at New Road 0n Tue.03/10/2000
Slide 10
Share of Gauteng in National Vehicle Fleet 0 5 10 15 20 25 30
3540Provinces Western Cape Eastern Cape Northern Cape Free State
KwaZulu-Natal North West Province Gauteng Mpumalanga Northern
Province Gauteng
Slide 11
Gauteng Vehicles/km 0 50 100 150 200 250 300 350 Provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Northern Province Gauteng TREND
Slide 12
Technical info
Slide 13
Gautrain Key Objectives (1) Economic growth, development and
job creationEconomic growth, development and job creation Alleviate
severe traffic congestion (traffic volumes in corridor growing at
7% p.a. for more than a decade)Alleviate severe traffic congestion
(traffic volumes in corridor growing at 7% p.a. for more than a
decade) Must meet other goals of Government (SME promotion,
Business tourism, Black Economic Empowerment, etc.)Must meet other
goals of Government (SME promotion, Business tourism, Black
Economic Empowerment, etc.) Show Governments commitment to the
promotion of public transport (National Land Transport Transitional
Act, Act 22 of 2000)Show Governments commitment to the promotion of
public transport (National Land Transport Transitional Act, Act 22
of 2000) Improve the image of public transport with this project
and attract more car users to public transportImprove the image of
public transport with this project and attract more car users to
public transport
Slide 14
Gautrain Key Objectives (2) To promote business tourism by
means of the link between JIA and SandtonTo promote business
tourism by means of the link between JIA and Sandton To contribute
towards urban restructuring, shortening travel distances and
improving city sustainabilityTo contribute towards urban
restructuring, shortening travel distances and improving city
sustainability To link to the Tshwane Ring Rail Project, linking
Mamelodi, Atteridgeville and Soshanguve / MabopaneTo link to the
Tshwane Ring Rail Project, linking Mamelodi, Atteridgeville and
Soshanguve / Mabopane Stimulate the renovation and upliftment of
the Johannesburg and Tshwane CBDsStimulate the renovation and
upliftment of the Johannesburg and Tshwane CBDs Link the main
economic nodes in Gauteng with JIALink the main economic nodes in
Gauteng with JIA Part of holistic transport plan and network for
GautengPart of holistic transport plan and network for Gauteng
Slide 15
Rosebank Sandton Marlboro Rhodesfield JIA Midrand Centurion
Pretoria Hatfield Preferred Route Anchor Stations Stations Airport
Park Station Rosebank Park Station Sandton Marlboro Midrand
Centurion Pretoria Hatfield Rhodesfield JIA
Slide 16
Technical specs International standard gaugeInternational
standard gauge Maximum speed: 160 180 km / hMaximum speed: 160 180
km / h Modern state of the art trainsModern state of the art trains
Thus totally different from existing SA system Different trains for
commuters and air passengersDifferent trains for commuters and air
passengers Initial demand 104 000 passengers trips per dayInitial
demand 104 000 passengers trips per day Frequency every 10 30
minutesFrequency every 10 30 minutes Minimum operating hours 05h30
20h30Minimum operating hours 05h30 20h30 Safety and securitySafety
and security
Slide 17
Feeder and Distribution Services Access to the Gautrain - one
of the key success factorsAccess to the Gautrain - one of the key
success factors Initially a large part of the market segment not
within walking access of stationsInitially a large part of the
market segment not within walking access of stations Provide
dedicated bus services: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 facilitiesAmple park and ride
facilities
Slide 18
10 km radius 5 km radius Rail Line & Rail Operational Area
Station Precinct Dedicated Feeders Dedicated Distributor Existing
PT Service Catchment area Rail Line & Rail Operational Area
Station Precinct Dedicated Feeders Dedicated Distributor Existing
PT Service Catchment area Legend:Legend:Concept
Slide 19
Interesting facts (1) 104 000 passengers per day are estimated
to travel on Gautrain104 000 passengers per day are estimated to
travel on Gautrain Approximately 78 new commuter rail coaches will
be manufacturedApproximately 78 new commuter rail coaches will be
manufactured Approximately 250 new bus coaches will be
usedApproximately 250 new bus coaches will be used 3,6 million
train kilometres and 674 million passenger kilometres will be
travelled per year3,6 million train kilometres and 674 million
passenger kilometres will be travelled per year 10,6 million bus
kilometres will be travelled per year10,6 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.There will be a train at least every 10 minutes during the
peak time at stations between Johannesburg and Pretoria.
Slide 20
Interesting facts (2) 260 000 concrete sleepers will be
manufactured for use in the track260 000 concrete sleepers will be
manufactured for use in the track 20 000 tons of steel will be
required to manufacture the steel rails20 000 tons of steel will be
required to manufacture the steel rails 112 000 m of bridges and
viaduct structures will be constructed112 000 m of bridges and
viaduct structures will be constructed More than 9 000 new parking
bays will be requiredMore than 9 000 new parking bays will be
required 65 road intersections in the vicinity of stations will be
upgraded65 road intersections in the vicinity of stations will be
upgraded 48 000 jobs will be created during construction48 000 jobs
will be created during construction
Slide 21
PPP Process
Slide 22
Project Process Fundamental PrinciplesFundamental 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)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
Slide 23
RFQ Qualified Bidders Bombela ConsortiumBombela Consortium
Bombardier Transportation Bouygues Travaux Publics Murray &
Roberts RATP International Gauliwe ConsortiumGauliwe Consortium CAF
Dragados Grinaker LTA Metro de Madrid CANAC
Slide 24
BOT Advantages What each party brings to the BOTWhat each party
brings to the BOT Legislation Subsidies Guarantees Land Rights of
way Long term vision Operation OperationMaintenance Design and
building Capital Capital Access to the market Financing UsersUsers
PublicSector Concession PrivateSector Revenue
Slide 25
BOT Advantages What each party get from a BOTWhat each party
get from a BOT Social function PeopleMobilityTaxes Economic
development Associatedbenefits Environment protection Time saving
Service Quality Concession PrivateSector UsersUsers PublicSector
Design & Construction Contract OperationContract DebtSupply
Incomes Incomes Profit Profit
Slide 26
Implementation Process Four pillarsFour pillars Political will
& commitment Viable project (base case design)
TechnicalTechnical FinancialFinancial
Legal/InstitutionalLegal/Institutional Funding (for Infrastructure
& Operations) Governments portionGovernments portion Private
Sectors portionPrivate Sectors portion Community acceptance &
Buy-in Socio-economic benefitsSocio-economic benefits Power of
expropriationPower of expropriation
Slide 27
PPP Requirements FeasibilityFeasibility Value for money Public
Sector Comparator (PSC) (What will it cost if Government does the
work through normal procurement process; and including completion
and integration risk and cost)Public Sector Comparator (PSC) (What
will it cost if Government does the work through normal procurement
process; and including completion and integration risk 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
Slide 28
PPP Requirements (continue) Feasibility (continue)Feasibility
(continue) Risk transfer Identify, cost and allocate various risks
to the role players best equipped to mitigate and manage
themIdentify, cost and allocate various risks to the role players
best equipped to mitigate and manage them
Modelled Single Journey Fare
SERVICEORIGINDESTINATIONDISTANCECOST CommuterPretoriaJohannesburg
57 km R 16,40 CommuterPretoriaSandton 46,8 km R 14,36
CommuterRhodesfieldSandton 19,0 km R 9,08 AirportJIASandton 20,4 km
R 70,40 Cost less than car, more than existing bus / taxi /
rail
Slide 32
Number of jobs created / sustained: Construction: 57 000
Construction: 57 000 Operating and Maintenance: 2 200 p.a.
Operating and Maintenance: 2 200 p.a. Urban economic activity: 40
000 p.a. Urban economic activity: 40 000 p.a. Increase in Gauteng
GGP : 0,7 - 1% Increased business sales: R 6 billion What Will the
Economic Impact Be?
Slide 33
Way forward
Slide 34
New Pressures After 2004 elections:After 2004 elections: Top
priority is to focus on job creation & fighting poverty Timing
of the completion of the project to coincide with the FIFA 2010
World CupTiming of the completion of the project to coincide with
the FIFA 2010 World Cup Pressure on approvals &
authorisations
Slide 35
Summary of Tender Process RFQ- Process Investors Conference
Announce pre-qualified bidders Announce Preferred & Reserve
Bidder Construction Commence Prepare RFP documents Sep 2001 End
April 2002 21 Oct 2002 29 Sep 2003 30 Sep 2003 Apr 2005 Oct 2005
EIA - Process Financial Close EIA Report & Draft EMP ROD
Infrastructure Act requirements Negotiate with Bidder(s) RFP Phase
II RFP Phase I 29 Nov 2002 Proclamation and Land acquisition Final
EMP ROD Appeals Detail Design RFP Phase III (BAFO) Apr 2004
Slide 36
Development and Operation Development Period (54 mths)
Operating Period (15 years) Contract Term (19.5 years) Construction
& Commission: Sandton JIA Construction & Commission:
Remainder of the System Operations & Maintenance Dec 08 Dec 09
Enabling Works Oct 05Mrt 05
Slide 37
The Seven Stages of a PPP Project EnthusiasmEnthusiasm Promises
& ProgrammesPromises & Programmes
DisillusionmentDisillusionment PanicPanic Hunt for the guiltyHunt
for the guilty Punishment of the innocentPunishment of the innocent
Reward for those who had nothing to do with itReward for those who
had nothing to do with it