October 2014 RAILWAY SAFETY 2013/14 FINANCIAL YEAR PRESENTATION TO PORTFOLIO COMMITTEE 1

October 2014

RAILWAY SAFETY2013/14 FINANCIAL YEAR

PRESENTATION TO PORTFOLIO COMMITTEE1

STRUCTURE OF PRESENTATION

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• A: KEY ACHIEVEMENTS

• B: KEY CHALLENGES

• C: RAILWAY SAFETY ANALYSIS – 2013/14

STATISTICS

• D: FINANCIAL PERFORMANCE

• E: CONCLUSION

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FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK

• IMPLEMENTATION OF THE PENALTY REGULATION• Revised Regulation was implemented in the 2013/14 FY• Penalties issued to 36 operators for non-compliance

• BOARDS OF INQUIRY (BOIs)• Two BOI’s were conducted: The Cor Delfos-Kalafong train collision

and the Hectorspruit Level Crossing collision

• SAFETY AUDITS, INSPECTIONS & INVESTIGATIONS• Target of 68 Audits exceeded • Target of 90 inspections achieved• Target of 20 Investigations exceeded

A. 2013/14 FY KEY ACHIEVEMENTS

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FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT.• SAFETY STANDARDS

• Standards developed:• Inter-operability, Interface and Intra-face Management Standard;• Railway Stations Standard.

• Standards amended: • Technical Requirements for Engineering and Operational

Standard: General;• Railway Safety Management Standard: General;• Technical Requirements for Engineering and Operational

Standards: Track, Civil and Electrical Infrastructure;• Technical Requirements for Engineering and Operational

Standards: Rolling Stock.


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FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT.• RAILWAY SAFETY EDUCATION & AWARENESS

CAMPAIGNS• Level Crossing awareness campaign held in Koelenhof, Cape Town

(where the highest number of level crossing incidents in the Western Cape were recorded)

• Safety awareness campaigns conducted in Noupoort and Daveyton (Gauteng) during Transport Month in October 2013


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• IMPROVED TRAIN COMMUNICATION SYSTEMS TO REDUCE

PASSENGER TRAIN COLLISSIONS• Outcomes of accident investigations at Koderlfos highlighted issues of train

communication systems as a major causal factor within the Metrorail system• RSR issued a directive for the installation of trunk radios in all passenger trains• Follow up investigations were conducted countrywide to ensure compliance • Compliance increased from 40% to 85% by end of 2013/14 FY. • A tender was issued to ensure 100% compliance with the directive

FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT.


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FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT.• TECHNOLOGY MANAGEMENT• PRASA’s specification for the new rolling stock reflects best safety

practices• TFR to maintain compliance with relevant national standards for some of

its Heavy Haul Line expansion projects

• STRATEGY TO REGULATE SUPPLIERS OF SAFETY CRITICAL SYSTEMS, COMPONENTS & SERVICES

• The development of a regulatory arrangement that is able to recognise the capability and competence of suppliers of railway safety critical systems and services


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PROMOTING THE ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION

• OCCURRENCE INVESTIGATIONS• RSR assisted TransNamib Holdings Ltd (TNHL) in conducting BOI

investigations

• GOBA CORRIDOR LEVEL CROSSING ASSESSMENT• Participation in the Level Crossing Risk Assessment in the Goba

Corridor• Assessment assisted CFM (Mozambique Railways) in deciding on

the construction of a new bridge instead of repairing the existing one


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PROMOTING THE ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION CONT.• SARA DANGEROUS GOODS HANDBOOK• Handbook for guiding SADC Railways in the handling and transportation of

Dangerous Goods by rail • Hosted a technical training on the transportation of Dangerous Goods with

SARA members

• TRAINING: HUMAN FACTORS MANAGEMENT

STANDARD• SARA 003 Human Factors Management Standard


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ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION CONT.• CO-OPERATIVE AGREEMENTS

• 11 Agreements implemented with the following organisations:• Chemical and Allied Industries’ Association (CAIA);• Department of Mineral Resources (DMR);• Department of Labour (DOL);• Heritage Railway Association of Southern Africa (HRASA);• National Nuclear Regulator (NNR);• Road Traffic Management Corporation (RTMC);• South African Bureau of Standards (SABS);• South African Police Service (SAPS); and• Transport Education and Training Authority (TETA)


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ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION CONT.• CO-OPERATIVE AGREEMENTS

• 3 Agreements concluded with the following organisations and various engagements took place during the year under review. Partnerships with these organisations are important for the RSR to carryout its full mandate.

• Department of Cooperative Governance (COGTA);• Department of Environmental Affairs (DEA);• Rail-Road Association of South Africa (RRA);


B. 2013/14 FY KEY CHALLENGES

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FINANCIAL CONSTRAINTS

• Directive from DoT to reduce safety permit levies for the 2013/14 FY resulted in a deficit of R5 million with the following consequences:• Non-achievement of the following targets: 2013/14 Annual

Railway Safety Conference; establishment of a Call Centre; development of a High Speed Rail Standard; and development of four Regulations

• Non-implementation of the RSR’s BBBEE Strategy • Vacant critical posts, especially in the regions, could not be filled

• Top 5 Occurrence Categories as % of Total Number:

• Category A: Collisions during movement of rolling stock (21%)

• Category B: Derailments during movement of rolling stock (16%)

• Category E: People struck by trains during movement of rolling stock (13%)

• Category H: People related occurrences: platform- train interchange (16%)

• Category L : Fires (12%)

C. 2013/14 STATE OF SAFETY

OPERATIONAL OCCURRENCES

C. 2013/14 STATE OF SAFETY – OPERATIONAL OCCURRENCES

C. 2013/14 STATE OF SAFETY – OPERATIONAL OCCURRENCES

FATALITIES / INJURIES

• 13% Increase from previous reporting period

• Top 5 Security Incident Categories as % of Total Number:

• Category 1 : Theft of assets impacting on operational safety (65%)

• Category 2 : Malicious damage (vandalism) to property impacting on operational

safety (22%)

• Category 7 : Personal safety on trains (6%)

• Category 8 : Personal safety on stations (5%)

• Category 9 : Personal safety outside station platform area (in section between

stations, including yards, sidings and depots) (1%)

SECURITY INCIDENTS


SECURITY INCIDENTS



SECURITY INCIDENTS – FATALITIES / INJURIES

5% Increase in TFR direct railway costs of occurrences and security-related incidents

22% Decrease in PRASA Rail direct railway costs of occurrences and security-related incidents

COST OF OCCURRENCES / INCIDENTS


• Areas of concern• The existence of gaps on platforms • Level crossing incidents• People struck by trains• Lack of management of the rail reserve• Security at / around stations

• SARPS recovered R 1 041 846.50 worth stolen cables

• SARPS arrested 14 903 persons for crossing a railway track without authorization


CASH FLOWS FROM OPERATING ACTIVITIES: RECEIPTS

D. 2013/14 FINANCIAL PERFORMANCE

D. 2013/14 FINANCIAL PERFORMANCEStatement of financial performance for the year ended 31 March 2014

2014 2013R R

Revenue 110 463 040 78 295 755

Revenue from non-exchange transactions 46 513 000 39 349 000

Revenue from exchange transactions 57 918 700 38 414 123

Other Income 270 044 382 895

Penalties 5 480 001 -

Investment income 281 295 149 737

Expenditure (107 543 074) (81 554 679)

Staff costs (65 060 023) (53 983 711)

Depreciation, amortisation and write-offs (1 601 690) (1 658 797)

Other operating expenses (22 258 176) (11 492 217)

Administrative expenses (18 623 093) (14 383 215)

Finance costs (92) (36 739)

Surplus/(Deficit) for the year 2 919 966 (3 258 924)

D. 2013/14 FINANCIAL PERFORMANCE

These financial statements were evaluated for both content and quality by the Audit

Committee and approved by the Board of Directors for submissions to the Auditor

General.

AUDITOR GENERAL’S OPINION

“In my opinion, the financial statements present fairly, in all material respects, the

financial position of the Railway Safety Regulator as at 31 March 2014 and its financial

performance and cash flows for the year ended, in accordance with GRAP and the

requirements of the PFMA”

D. REVENUE VS EXPENDITURE TRENDSYears 2009/10 2010/11 2011/12 2012/13 2013/14

Revenue 47 863 47 853 59 532 78 295 110 463

Grant Income: 37 260 35 634 37 475 39 349 46 513

Safety Permits 10 506 12 200 20 596 38 414 57 919

Other Income 97 19 1 461 532 6 031

Expenditure 49 356 47 540 56 059 81 452 107 542

Staff 29 429 32 658 39 928 53 983 65 060

Goods & Services 19 927 14 882 16 131 27 469 42 482

Net Surplus/Deficit -1 493 313 3 473 -3 158 2 920

D. REVENUE VS EXPENDITURE TRENDS

E. CONCLUSION

• Our strategic goal as the Railway Safety Regulator is to have zero

occurrences in the rail industry. With all our stakeholders and strategic

partners, we will work tirelessly until this goal is achieved.

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THANK YOU

Q & A

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Documents

October 2014 RAILWAY SAFETY 2013/14 FINANCIAL YEAR PRESENTATION TO PORTFOLIO COMMITTEE 1