gauteng sdi rail link
TRANSCRIPT
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GAUTENG PROVINCIAL GOVERNMENT
Department of Transport and Public Works
Gauteng SDI Rail Link
Planning and Implementation Study
INCEPTION REPORT
JUNE 2000
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CONTENTS
1. INTRODUCTION
1.1 Announcement of the Project ...........................................................................1
1.2 An important Project .........................................................................................1
1.3 Appointment of Consultants .............................................................................3
1.4 Structure of this Inception Report ..................................................................... 4
2. BACKGROUND
2.1 Previous Provincial Studies ..............................................................................6
2.2 Events leading to the Project............................................................................6
2.3 Pre-Feasibility Study......................................................................................... 7
3. IMPORTANT DEPARTURE POINTS AND CONSIDERATIONS
3.1 Gauteng Provincial Spatial Development Initiatives (SDIs) ............................. 9
3.2 Gauteng Spatial Development Framework..................................................... 10
3.3 Government Policy, Legislation and other Requirements............................... 18
3.4 Strategic Objectives........................................................................................ 21
4. PROJECT CONCEPT (SCOPE)
4.1 Purpose of the Gauteng SDI Rail Link............................................................ 22
4.2 The Study Area............................................................................................... 22
4.3 Market Segmentation (market to be served) ..................................................24
4.4 Relationship and Compatibility with existing rail systems............................... 26
4.5 Alternative route alignments and station locations.......................................... 28
4.6 Station Development Concepts and surrounding Land Use ........................... 31
4.7 Feeder and Distributor systems at stations ....................................................33
4.8 Technology.....................................................................................................35
4.9 Safety and Security ........................................................................................35
4.10 Light freight..................................................................................................... 36
5. IMPLEMENTATION CONSIDERATIONS AND PARAMETERS
5.1 Feasibility and Bankability..............................................................................37
5.2 Risks ..............................................................................................................39
5.3 Legal Aspects, including obtaining Right-of-Way ........................................... 42
5.4 Role of Government and the Private Sector, including PPPs ........................ 43
5.5 Implementation Programme...........................................................................44
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6. BUSINESS PLAN AND STUDY DESIGN
6.1 Introduction ....................................................................................................48
6.2 Study Goals and Deliverables ........................................................................49
6.3 Study Objectives ............................................................................................49
6.4 Study Approach and Method.......................................................................... 52
6.5 Study Programme ..........................................................................................59
6.6 Project Management Structure....................................................................... 63
6.7 Internal Project Management Structure.......................................................... 68
6.8 Consultative Programme................................................................................68
CONCLUSION................................................................................................71
EXECUTIVE SUMMARY ........................................................................... (i)-(v)
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1. INTRODUCTION
1.1 ANNOUNCEMENT OF THE PROJECTIn his address at the opening of the Gauteng Legislature on 14 February
2000, Premier Mbhazima Shilowa announced an exciting venture, which will
link Pretoria, Johannesburg and Johannesburg International Airport by rail,
namely the Gauteng SDI Rail Link. He announced it as one of the ten SDI
initiatives of the Gauteng Provincial Government. The Premier said that
following a pre-feasibility study, which was concluded last year; a
comprehensive study would be commenced with early this year, with the aimto put out a Request for Proposals next year.
1.2 AN IMPORTANT PROJECT
This project is much more than only a transport project. It must be
approached in the light of the three strategic priorities of the Gauteng
Provincial Government, namely
! Accelerated economic growth, development and infrastructure delivery,
with emphasis on job creation
! Quality service delivery
! Good governance.
As will become clear in this document, this project has the potential to fully
meet the requirements of these three priorities.
Secondly the project is one of the ten Spatial Development Initiative (SDI)
Projects of the Gauteng Provincial Government, which, inter alia, have as goal
to promote and enhance economic growth, development and job creation.
When the Premier announced the Gauteng SDI Rail Link as one of the ten
SDI initiatives, he said that all of them have a positive economic meaning for
all the people in the Province. He added that the SDIs will help to reverse the
de-industrialisation process, and that the provision of bulk infrastructure will
assist with the rebuilding of the economy.
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This project will further provide opportunities for SMMEs, for more labour
intensive project designs, for creating opportunities to build the partnership
between the public and private sectors, and for assisting and promoting
tourism all goals of Government.
But then it is also a very important transport project. When he announced the
project, the Premier said that it is part of governments commitment to ease
congestion on the roads, improve the movement of goods and persons, and
promote easy connection between some of the cities in Gauteng.
The area between Pretoria and Johannesburg is one of the fastest growing
areas in the country, and the potential for further growth is excellent.
Additional transport capacity is urgently required, as is evident from the
severe traffic congestion on the freeways and main roads passing through the
area. Such additional capacity should not only be provided through building
more roads. It is the explicit policy of Government to promote public
transport, inter alia by ensuring the provision of adequate infrastructure,
facilities and services. This project can be a very forceful illustration of
Governments commitment to promote public transport.
This project has the potential to assist in improving the image of public
transport in Gauteng and South Africa, of increasing accessibility levels, and
of giving structure to development in the area through the integration of land
use and transport. A rail link such as this cannot be successful if proper
collector distributor services are not provided at the different stations. Modal
integration, which includes through ticketing, integrated scheduling, integrated
information systems and proper transfer facilities, will be an important part ofthe project.
In this project the co-operation between the different spheres of government
will be extremely important and will be an integral part of the study design and
execution. Similarly co-operation with all other stakeholders are considered to
be essential, including representatives of the different modes of transport and
public transport.
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1.3 APPOINTMENT OF CONSULTANTS
A consortium of consultants was appointed on 26 April 2000 to assist the
Gauteng Department of Transport and Public Works with the execution of this
project. These consultants are:
! Khuthele Projects
! Arcus-Gibb
! Lebone Engineering.
The consultants have extensive experience with public transport and rail
projects, and transportation planning in general. Arcus-Gibb, a Law-Gibb
Group member, will also involve Gibb-Rail, a leading international railwayconsultancy based in the UK, in the project. Khuthele Projects will undertake
the project leadership and management amongst the consultants.
The multi-disciplinary nature of this project is fully recognised. The appointed
consultants are to a certain extent multi-disciplinary, and where it is not the
case, other consultants will be appointed as sub-contractors to the main
consultants, with the approval of the Department. Two such consultants have
already been appointed, namely:
! APS Plan Africa, Town and Regional Planning Consultants, who are also
the consultants for the Gauteng Provincial Government in the development
of the Gauteng Spatial Development Framework. APS Plan Africa will
work in close collaboration with the town planners of the appointed
consultants.
! Equinox Communication who will assist with public relations,
communication and consultation. They have had extensive experience in
transportation projects, also within the study area.
The consultants are organised in an effective team, as can be seen from the
Business Plan and Study Design later in this document. The complexity of
the project and the very tight and limited time frames in which the study must
be completed, require extremely well managed, effective and efficient
teamwork.
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Gautrans itself will be very involved in the execution of the project. The Head
of the Department, Mr. Jack van der Merwe, assisted by a number of his
senior officials will lead the project and will be directly involved with the project
on a continuous basis.
Regular progress reports on the project will be submitted to the MEC for
Transport and Public Works, Min. Khabisi Mosunkutu, who will report to the
Provincial Cabinet and the Premier on a regular basis.
It should also be recognised that this Gauteng SDI Rail Link is one of ten SDI
projects. The whole SDI programme falls within the Gauteng Department of
Finance and Economic Affairs who has appointed an SDI co-ordinator to
undertake the necessary co-ordination between the SDI projects. This project
will therefore be undertaken in close collaboration with the Department of
Finance and Economic Affairs and its SDI-Co-ordinator.
As mentioned before, the Gauteng Province and its consultants will execute
this project in close co-operation with all roleplayers. The Metropolitan and
Services Councils, the National Department of Transport, and the South
African Rail Commuter Corporation are a few of the institutions that will be
fully involved.
1.4 THE PURPOSE AND STRUCTURE OF THIS INCEPTION REPORT
The purpose of this Inception Report is twofold, namely:
Firstly to focus the scope of the study, by providing an understanding of the
following aspects of the study:
! The project concept in terms of purpose and function
! The Study scope
! The points of departure
! Assumptions and pointers accepted by the Study Team
Secondly to provide the Business Plan and Study Design of the project,
containing the deliverables, the approach, the programme and the projectmanagement and consultation structures.
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This report consists of six chapters. Following this introductory chapter, the
other chapters deal with the following:
! Chapter 2 provides some of the background leading up to this study. It
refers to previous provincial studies and provides a very brief summary of
the outcome of the pre-feasibility study.
! There are a number of important departure points and considerations
which will influence this study and which are discussed in Chapter 3.
! Chapter 4 discusses a number of key issues in order to get clarity on the
project concept and to narrow the scope of the project.
! In Chapter 5, some of the considerations and parameters affecting
implementation are discussed.
! The last chapter of this report deals with the Business Plan and Study
Design, providing the goals and deliverables, objectives, methodology,
programme, organisational structure and consultation process.
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2. BACKGROUND INFORMATION
2.1 PREVIOUS PROVINCIAL STUDIESA number of previous studies emphasised the need for this corridor between
Pretoria and Johannesburg to have an effective mass transportation system.
The original PWV-Transportation Study done during the mid seventies,
planned route K73, a major north-south arterial route to the west of Ben
Schoeman (N1), to be suitable for a possible future rail line. In the early
nineties the Vectura Study highlighted this corridor as one of the ten most
important provincial transport corridors in Gauteng.
The Gauteng Toll Road Strategy also refers to the need for public transport in
this corridor. The intention is that public transport will augment the additional
road capacity, and will ensure that Gauteng develops to its full potential
2.2 EVENTS LEADING TO THE PROJECT
For the past few years the Johannesburg Pretoria corridor, and to a lesser
extent the corridor to the Johannesburg International Airport, has been the
fastest growing development area in South Africa. It has assisted Gauteng to
grow economically faster than the other provinces. It clearly demonstrates the
interaction between transport capacity, accessibility and mobility on the one
hand and, land-use and economic development on the other hand.
However, recently two observations became very evident:
(a) Although many companies have located in the corridor and the area under
consideration, the area is not adequately served with public transport for
the people who cannot afford cars or private transport.
(b) The increasing road traffic congestion is acting as a limitation to further
development, and may soon start to strangle the development rate.
The Gauteng Cabinet recently adopted a toll road strategy. This would
provide part of the road capacity required. Notwithstanding this, thepromotion of public transport in this corridor, and also the need to ensure that
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all people can access this corridor, is of extreme importance, particularly for
business, for tourists, and for commuters.
A number of international government and private sector representatives have
indicated their willingness to be involved and to support the development of a
rail transport system in this corridor. Representatives have approached
Gautrans from countries such as Germany, France and Japan, who all
indicated that a rail system in this corridor appears to be feasible, and that
they would like to investigate the opportunities that such a rail system would
offer.
2.3 PRE-FEASIBILITY STUDYWhen the first Premier of the new Gauteng Government visited Germany a
number of years ago, a Twinning Agreement between Gauteng and the State
of Bavaria was signed. During the first meeting, the Gauteng Rail Link was
identified as one of the first opportunities for co-operation. At a discussion
late during 1998 between representatives from Gauteng and the Bavarian
State Government, it was agreed that the Bavarian Government would
appoint independent German consultants to undertake a Pre-Feasibility Study
of this project. This was done in terms of the Twinning Agreement.
The main aims of the pre-feasibility study were to determine:
! whether or not the implementation of a new rail system in this corridor is
justified and feasible, and
! whether further investigations on the basis of a comprehensive feasibility
study need to be done.
In addition, the need was expressed to determine whether it was financially
and economically worthwhile to fund this feasibility study, and to explore
alternative means to do so.
The pre-feasibility study was completed during September 1999, and the
following were some of the most important conclusions:
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! Even the construction of a new toll road in this corridor (the PWV-9 road
between Johannesburg and Pretoria, west of the N1) would not solve the
transport problem for the future. It is, therefore, indispensable to
complete the existing transport system by means of a public transport
system that would be independent from the existing road network.
! As shown in the pre-feasibility assessments, Alternative 3 (a route from
Sandton to Pretoria) is likely to yield coverage of the total operating costs
and part of the investment costs of a new rail system by fare revenues,
whereas implementation of Alternative 2 (a route from Sandton to Pretoria
plus a link to JIA) would presumably result in coverage of a high portion of
the operating costs only.
! taking into account the economic and environmental benefits accruing
usually from implementation of mass transit systems in highly loaded
corridors (savings in travel time, accident cost, private vehicle operating
cost, air pollution, noise) the rough financial evaluation of Alternatives 2
and 3 indicates that in all probability the railway project is feasible in
economic terms.
! Moreover the anticipated railway project would strongly support
individual economic zones in the context of the Spatial Development
Initiative .
! The afore-mentioned results of pre-feasibility study led to the conclusion
that further investigations are necessary and justified. It is therefore
recommended, to carry out the next step, a more comprehensive
feasibility study
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3. IMPORTANT DEPARTURE POINTS ANDCONSIDERATIONS
3.1 GAUTENG PROVINCIAL SPATIAL DEVELOPMENT INITIATIVES
The Gauteng Provincial Government decided on a Spatial Development
Initiative (SDI) strategy in order to change the economic profile in Gauteng,
enhance economic growth, promote development and create employment
opportunities.
Ten Spatial Development Initiatives had been identified. (See Figure 1 on the
following page.) They are:
! Newtown Precinct Redevelopment and Metro Mall
! City Deep Industrial Development Zone
! Johannesburg International Airport Industrial Development Zone
! Alrode/Wadeville Industrial Regeneration Corridor
! Rosslyn Auto Cluster / Urban Port
! Pretoria Innovation Hub! The Big Five Game Reserve
! World Heritage Site at the Sterkfontein Caves
! Constitutional Hill in Johannesburg
! Gauteng SDI Rail Link.
It will be important for the Gauteng SDI Rail Link to ensure that its SDI
objectives are met and that, where possible, alignment with the other SDIprojects is achieved.
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Gauteng SDI Rail Link Inception Report, 15 June 2000
LOCATION OF SDIS FIGURE 1
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3.2 THE GAUTENG SPATIAL DEVELOPMENT FRAMEWORK
3.2.1 Critical factors
Five critical factors were used to direct the Gauteng Spatial Development
Framework (GSDF). These factors are the guidelines or principles that will
inform the future growth path of the province, and their implementation will
produce a particular spatial development pattern. Four of the five critical
factors are discussed below, whereas the fifth one, being rural development
beyond the urban edge, is not directly applicable in respect of the Gauteng
SDI Rail Link.
! Resource based economic development
In order to ensure Gautengs advancement internationally, and to achieve
balanced development in the province, economic development based on
the key resources offered by the province, should be promoted. Thus,
the three strategic thrusts as outlined in the Gauteng Provincial
Governments Trade and Industrial Strategy 1997, should be pursued.
Strategic Thrust 1: The re-alignment of the manufacturing sector away
from traditional heavy industry input markets and low value-added
production, towards sophisticated, high value added production, as well
as the development of other high value added production activities in the
agriculture and mineral sectors.
Strategic Thrust 2: The development of the province as the smart centre
of the country with specific emphasis on: information technology,
telecommunications equipment, research and development and bio-
medical industries.
Strategic Thrust 3: The development of the finance and business
service sector with specific emphasis on: financial services and
technology, auxiliary business services and technology, corporate head
office location and business tourism.
Important locational criteria for the market include aspects such as high
visibility, optimal accessibility, proximity to airports and rail, increased
security largely in the form of security estates or parks, and the focus ofthe commercial property market as directed by investors and developers.
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! Contained urban growth
The notion to contain urban growth is embedded in government
legislation and policy, and is largely supported by all sectors of the
province. This is supported by the fact that peripheral urban
development is costly and particularly so for local government, which is
the provider of bulk infrastructure and services. There is general
consensus in the planning arena that unlimited urban sprawl should be
contained.
! Re-direction of urban growth
A necessity exists to re-direct urban growth. The aim is to densify the
existing urban areas, stabilise and limit growth in the economically non-
viable areas, and achieve growth on vacant land within the economic
growth sphere, as contained by the urban edge, in order to develop a
functional and sustainable urban system.
! Mobility and accessibility
Mobility is the ability to move people and goods from point A to B and is
associated with the use of vehicles for transport. Linked to this is the
issue of accessibility, and access to mobility in particular. This is a
matter of concern, due to the fact that a limitation to access, limits access
to job opportunities, social facilities, etc.
In order to implement the four critical factors, which structure the
development of the province, mobility and access need to underpin the
principles of development. Hence, road and rail development should be
geared at implementing the proposals contained above. However, sinceit will take major intervention to re-direct the growth pattern, the
development of road and rail should equally facilitate the current situation
and growth path.
Hence, mobility and accessibility will have to focus on two critical
development paths. Firstly, they will have to support the existing urban
pattern, by improving access to the townships in particular and increasing
mobility to job opportunities, and secondly, will have to provide improved
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infrastructure within the core economic focus area to cater for the
projected growth in those areas. Hence, rail and road infrastructure will
have to be improved in the core area to cater for enhanced movement
and access.
3.2.2 The final spatial development plan
The Final Spatial Development Framework is illustrated on Figure 2a and
provides the proposed development focus of the province.
! Interventions
The GSDF draws definite conclusions on the development trends that
dominate in Gauteng, and with respect thereto, makes certain
development proposals that indicate a way forward for the development
of the province. They are based on the critical factors discussed earlier.
- Containing and compacting the City
- Economic Growth
- Growth in New Areas
- Rural areas
! Access and mobility
With regard to access and mobility, the GSDF states that we will always
be highly reliant on transportation owing to the dispersed structure of our
cities. However, there is an undeniable need for an improved public
transport system, which will become increasingly important and urgent
in the compact city. Intervention in this regard is required, in order to
bring people closer to opportunities and into the mainstream of theeconomy. Access is essential and mobility is constrained due to the
cost thereof.
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3.2.3 Summary of Spatial Development Framework
Fundamentally the Final Plan proposes that:
! Gauteng should acknowledge the pivotal role the economy is playing in
allowing the province to provide for its people, and that without economic
growth such provision will decrease and poverty will increase, whilst
health conditions worsen and education levels decline. Thus it is vital that
economic growth and development be motivated and encouraged by
accessing the particular resources Gauteng offers.
! Urban sprawl and peripheral growth be contained, and hence, that an
urban edge be delineated which would determine the outer perimeter of
urban development. This is not only sound spatial planning, but makes
financial sense, owing to the cost savings achieved by not having to
extend services, infrastructure and facilities to the periphery.
! People should be brought closer to their job opportunities, and hence, to
the economic focus areas, while their displacement from the core urban
environment should be halted. Thus, urban growth should be re-directed
to allow for a more efficient and effective settlement pattern to be
established.
! Mobility and accessibility are very important given the fact that Gauteng is
a highly mobile society and reliant on movement. It is deemed that far
greater integration between land use and transportation planning needs to
occur to optimise accessibility and mobility in the province.
3.2.4 Specific Spatial Development Considerations
3.2.4.1 Points of departure
! The Gauteng Spatial Development Framework suggests that the
Gauteng SDI Rail Link could and should play an important role to
achieve a more sustainable spatial development structure in
Gauteng.
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! With this in mind, the following points of departure should form the
basis for the spatial considerations related to the project.
- The rail should assist in supporting economic development.
- It should assist in improving accessibility and mobility.
- It should serve as a catalyst for sustainable land development.
3.2.4.2 Main considerations
In order to achieve a focussed approach to the project the main land
use considerations for a possible alignment of the rail are the following:
! Location of main population concentrations.
! Location of main areas of employment.
! Main movement patterns.
! Natural environment.
! Development trends related to residential areas and employment
areas
3.2.4.3 Development concept
The above considerations have indicated that the Gauteng SDI Rail
Link should be a component of an integrated system, which will
contribute in the following manner as regards spatial development.
! Regeneration of CBDs.
! Development of new town core areas.
! Strengthening of existing vibrant nodes.
It therefore suggests that the system will consist of a main line (the
Gauteng SDI Rail Link) and a system of link lines.
The main line will link the major areas of job opportunities and higher
density residential areas, while the link lines will serve to link lower
density residential areas to the main line (refer Figure 2b).
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3.2.4.4 Main nodes
If the above concept is pursued then the following nodes are
considered as important in the main line development.
! Johannesburg CBD
! Pretoria CBD
! Johannesburg International Airport
! Sandton CBD
! Midrand CBD
! Tembisa
! Centurion
The following nodes, although falling outside the direct main line
development, will also play an important role, with possible extensions
to be considered now or in the future.
! Soweto (Bara Link) ! Menlyn
! Rosslyn (Urban Port) ! City Deep area
! Fourways/Woodmead ! Eastgate
The above concepts and nodes will be the subject of further spatialdevelopment models to be developed in support of the Gauteng SDI
Rail Link.
3.3 GOVERNMENT POLICY, LEGISLATION AND OTHERREQUIREMENTS
3.3.1 Policy and Legislation
Current government policy directives clearly indicate the necessity of
promoting public transport. This is evident from all the main policy documents
of government. These main policy documents were analysed to ensure that
this project addresses the most important requirements in this regard.
The following relevant national and provincial policy documents were
analysed, with a view to identifying the most significant government objectives
applicable to this project.
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National
i) Reconstruction and Development Programme (RDP), 1994.
ii) Growth, Employment and Redistribution Policy Documentation (GEAR).
iii) ANC Manifesto 1999.
iv) White Paper on National Transport Policy, 1996.
v) Moving South Africa (MSA), 1999.
Provincial
i) Gauteng White Paper on Transport Policy, 1997.
ii) Gauteng Spatial Development Initiatives (SDIs), 1999.
iii) Gauteng Rail Development Strategy, 1999.
The table below distinguishes between extremely high priority and high
priority objectives. Further, the relevance of each objective in terms of the
Gauteng SDI Rail Link is provided.
RELEVANCEOBJECTIVE
TOTAL SIGNIFICANT
A. EXTREMELY HIGH PRIORITY OBJECTIVES
1. Building the economy and creating jobs #
2. Reconstruction and development #
B. HIGH PRIORITY OBJECTIVES
3. Building a better living environment #
4. Integration and sustainability #
5. Customer satisfaction #
6. Effectiveness and efficiency #
7. Effective land use planning #
8. Optimal deployment of modes#
9. Integrated transport and land use planning #
10. Improved safety #
11. Human resources development #
12. Delivery of basic needs #
13. Combating crime and corruption #
14. Transformation #
15. Minimised negative side effects #
16. Regulation and control #
17. Sustainable funding #
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It is expected that the National Land Transport Transition Act will be
promulgated soon. This legislation contains a number of provisions where
MECs and the future Transport Authorities (currently the planning authorities)
will be required to promote public transport and display measures put in place.
The Development Facilitation Act is important land-use development
legislation to be considered in this study.
The responsibility for implementing public transport infrastructure and service
improvement projects is mainly that of local government, as these are mostly
of a local nature. At a provincial level, the focus is mainly on the services that
cross the metropolitan council boundaries and on co-operation between
metropolitan areas.
This project is an ideal opportunity for Province to be involved in a visible
public transport project, and to implement government policy noticeably.
3.3.2 Requirements for integrated transport planning
At the provincial level, the first edition of the Provincial Land Transport
Framework and Gauteng Transport Co-ordination Plan were completed in
1998. While large parts of these planning documents are still relevant today,
they primarily deal with broad policy issues and not with the practical
provincial-wide responsibilities of Gautrans. What is required is a refocus on
the Provincial Land Transport Framework in order to include present planning
initiatives of the Province including, for example, the Gauteng Bus Master
Plan, the Gauteng Modal Integration Strategy, etc. The Gauteng Rail Link
Project should likewise be included in the next revision of the Provincial Land
Transport Framework. In this manner the Provincial Land TransportFramework will, in practical terms, guide and direct the preparation of
Integrated Transport Plans at the metropolitan level. The refinement of the
Provincial Land Transport Framework is currently being considered.
The preparation of the first ITPs by each of the six metropolitan transport
areas in Gauteng is generally well advanced. One area (EGSC) has already
submitted its plans to Gautrans, whilst most of the other plans are expected to
be completed by September 2000.
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The next round of ITP refinement will probably start during 2001 and should
clearly be guided by the Provincial Land Transport Framework, which will
include the Gauteng Rail Link Project. The further development of the
Gauteng Rail Link Project at the metropolitan level in terms of its integration of
the local public transport services, should be detailed in the relevant ITPs and,
should in this manner, become part of the metropolitan transport system.
3.4 STRATEGIC OBJECTIVES TO BE ADDRESSED
The following are some of the most important strategic objectives that have
been identified:
3.4.1 Broad strategic objectives
! To determine how this project can facilitate development in the Province
! To assess its contribution to job-creation (direct and indirect)
! To assist in unlocking the economic development potential of the Gauteng
SDIs
! To improve accessibility and mobility in this development corridor
3.4.2 Specific objectives of the implementation project
! To promote the use of public transport
! To develop an integrated public transport system, inter alia through the
feeder and distribution systems
! To integrate land-use and transport planning in the corridor
! To identify station precincts with development potential, and use of the
concept of value capture.
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4. PROJECT CONCEPT AND SCOPE
4.1 PURPOSE OF THE GAUTENG SDI RAIL LINK
The Gauteng SDI Rail Link Project deals with the planning and provision of a
modern rail link between Pretoria, Johannesburg and Johannesburg
International Airport. These three areas are the main centres to be included
in the project, but the study will investigate the inclusion of other important
centres, mainly between the above main centres, but also outside the
backbone system and even the Study Area, if found to be appropriate.
This project will investigate the utilisation of appropriate and tested state-of-
the art modern technology, that can provide an excellent and acceptable
service to the passenger, at competitive travel times and speeds, and
affordable to both the passenger and government. Comfort, safety and
security, and accessibility are some of the aspects that will be given high
priority.
As an SDI project it will also have the strategic objective of promoting
economic growth, development and employment creation.
4.2 THE STUDY AREA
The Study Area broadly comprises the triangular geographic area between
Pretoria, Johannesburg and Johannesburg International Airport (JIA), as
graphically shown in Figure 3.Apart from the three main centres mentioned
above, the Study Area includes important nodes such as Sandton, Alexandra,
Kempton Park, Midrand, Tembisa and Centurion. It contains 4 SDIs, of which
the SDI Rail Link is one. There are therefore 6 SDIs outside the Study Area.
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In Figure 3, arrows indicate other areas, nodes, and activity centres outside
the Study Area, which will have to be considered for linkage now or in the
future. This includes in the South-West, Soweto and the FNB-Stadium, which
will be very important if the 2006 World Soccer Cup takes place in South
Africa. South of JIA it is the fast growing East Rand. North of Sandton it is
the fast developing Sunninghill Area connecting to the large developments in
the areas of Fourways and Kaya Sands. North-east of Centurion it is the fast
developing Menlyn area and north of the Pretoria CBD it is the developments
north of the Magaliesberg, such as the Automotive Cluster and Wonderboom
Airport, which deserve attention.
4.3 MARKET SEGMENTATION
The purpose of market segmentation in this study is to determine who will or
should use the proposed service, in other words, which market segments.
This will then indicate which areas should be served. The setting of fare
levels in order to maximise the income will also be addressed. For example,
with low tariffs higher volumes may be achieved, and with high tariffs low
volumes.
The following departure points are important:
! Although the rail line will pass through certain areas and have stations in
specific areas, the collector distributor systems at stations will ensure that
most of the larger surrounding areas are covered and made accessible.
! There could be different needs on different parts of the network. The
needs on the JIA Sandton link would, for example, be quite different fromthe needs on the Johannesburg-Pretoria link.
! Cognisance must be taken of certain trip characteristics, including trip
purposes, the time the trip is made and the direction of travel. In order to
make the system more viable and optimise the patronage, it would be
important to target both commuting and non-commuting passengers, peak
and off-peak passengers, and also passengers travelling in both
directions.
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! A service cannot be provided that suits everybody. The choice at the end
of the day will be that of the user, whether he/she can use it, want to use it
and can afford to use it.
The following pointers provide an indication of what the possible market
segmentation could be:
! The project is essentially aimed at economic development. The system,
the service and the customers/passengers must in some way promote
economic activity.
! Many potential passengers are currently car users. The type of service,
including its tariffs and travel time, must be such that the car user would be
willing to consider changing to rail. The new rail system must therefore be
markedly better than the existing rail commuter services. Door-to-door
travel time, including speed is important. In the peak period, when many
of the roads are congested, it must be substantially better than the car
alternative, and in the off-peak period it must be at least comparable.
! The bias therefore seems to be towards commercial users who can afford
the trip and would be willing to pay for a good service.
! Although it currently seems that there should only be one class, the fare
structure could have some flexibility, providing for example for cheaper
weekly and monthly tickets and allowing a slight differentiation in fares
from different areas.
! Provision should be made for tourists and for airline passengers with
baggage, especially on certain routes and during certain periods.
! Fares would be higher than on the existing system. The choice would be
entirely that of the user.
! The market research and demand calculation will focus more specifically
on the different trip purposes.
! To summarise, the study should determine market indicators that will
make the project commercially viable and that will attract foreign
investment.
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4.4 RELATIONSHIP AND COMPATIBILITY WITH EXISTING RAILSYSTEMS
This issue deals mainly with institutional governance and also the integration
of the new system with the existing network and technology. The respective
roles of Government and the private sector, or public private partnership
options, could have been discussed here, but is discussed in a later section.
4.4.1 Institutional Structures
With regard to institutional governance, cognisance must be taken of the
development of passenger rail services over the years in South Africa,
together with the respective institutional structures. Currently the South
African Rail Commuter Corporation, falling under the National Minister of
Transport is the owner/regulator, with Metrorail being the operator. Metrorail
is a division of Transnet, falling under the National Minister of Public
Enterprises. With the future concessioning of commuter rail services in the
country, the institutional framework will undergo further changes, but a final
structure has not yet been decided upon.
Alternative institutional structures for the Gauteng SDI Rail Link will be
developed and investigated in this study. The relationship of the SDI Rail Linkstructures with the future commuter institutional structures (currently the
SARCC) can be determined when more clarity and finality is available on the
latter. The current intention is that the Gauteng Provincial Government will, at
least initially, own the rail infrastructure and that the rail services will be
provided by the private sector. The relationship with the future Transport
Authorities is considered to be very important and will also be investigated.
4.4.2 Integration with existing network and technologyGauteng has an existing commuter rail network and services, divided into two
operational management areas, namely the Pretoria Metrorial region and the
Wits Metrorial region. For many years it has provided good rail services for
the people it served. It has, however, not kept up to date with modern rail
development in many ways. No new rail lines have been built in the last 15
years and the rolling stock is on average more than 30 years old. The
question in this study is what the integration and co-ordination of the new SDI
Rail Link would be with the existing network and services.
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Some of the more important characteristics of the current technology are:
! The existing gauge is 1067 mm as compared to the international standard
of 1435 mm. The minimum horizontal curvature is normally 600 m.
! Train control with colour light signalling and a maximum speed of 90 km/h.
! Electrical supply is 3 KV dc overhead.
The broad approach and some of the possible pointers are:
! It should be possible to integrate and co-ordinate the new system with the
existing system. Whether or not it would be a direct linkage onto the
existing lines, or just a transfer at a station, so that passengers would have
to change trains, would depend on a number of aspects, which will be
investigated in the study.
! One of the most important aspects would be to determine whether the
existing South African gauge would be used or whether the standard
international gauge would be used. There are many advantages and
disadvantages to be considered.
! Although the possibility of good second hand rolling stock will be
investigated, the indications are that most private sector investors would
not be very keen to consider it, inter alia because of possible future
maintenance problems and costs. The chances are therefore good that
the study will focus more on proven new technology. That would also then
determine such aspects as minimum horizontal curvature, maximum
gradient, maximum speed, etc.
! Life-cycle costs and economies of scale would, however, be taken into
consideration, and will to a large extent determine the most appropriate
approach.
! Although there are many factors influencing door-to-door and total travel
time, speed is important. A train speed of 180 km/h or slightly higher at
this stage seems to be applicable to the anticipated type of service. Using
the term high speed is therefore not appropriate, as it is normally
associated with the TGV, ICE, Bullet-type trains that can travel at speeds
beyond 300 and even 400 km/h. This is definitely not the type of train that
will be used here.
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! A new unique image is necessary in order to maximise patronage. This
will therefore also influence what type of equipment and service that can
be used, when co-ordination and integration with the existing system is
being considered.
! It also seems most probable that new railway lines will be required for the
whole or most of the new route or network. If that is the case, it could also
have an influence on the decision with regard to gauge and other factors.
! Compatibility or not, as well as integration, will be determined by a large
number of factors, including gauge, signalling, electrical power supply,
rolling stock, implementation time, etc. and will be decided upon at an
appropriate stage of the study.
4.5 ALTERNATIVE ROUTE ALIGNMENTS AND STATIONLOCATIONS
The following diagram indicates the interaction between market segmentation
and route determination, as well as the process to be followed to identify
alternative alignments.
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Although the instruction is to link Pretoria, Johannesburg and Johannesburg
International Airport, different possible alignments and networks will have to
be investigated in order to select the best alignment. The following are some
of the factors to take into consideration.
! Provincial planning, such as the Spatial Development Framework,
Economic Development Framework, the Housing Strategy and the
different Transport Plans.
! The land use to be served, directly and through feeder services. The
choice of station location would largely dictate the rail network and route
alignment.
! Specific spatial development objectives that will be taken into
consideration include the regeneration of Central Business Districts, the
strengthening of existing vibrant development nodes as well as new town
development.
! Service requirements, including travel time, transfer requirements and
integration with feeder and distributor modes.
! Rail network concepts (e.g. lattice and radial), single line concepts (e.g.
linear or circular) and its integration with the existing rail network.! Alignment options, influenced by design criteria, land-use constraints and
opportunities, topography, and existing rights-of-way such as rail and road
corridors.
! Environmental constraints.
! Cost implications with regard to high cost aspects such as land
procurement costs and construction costs with elevated or below ground
level sections. The high density of development as well as topography ofthe area between Johannesburg and Pretoria limit the possible feasible
alignments of the alignment.
! Phased implementation, as well as potential future extensions.
! The rail alignment is influenced by operational considerations including the
maximum gradient ( 2.5%), minimum curve radius ( 1 200 m) as well as
station spacing. To achieve maximum benefit of the high speed of
operation, stations are expected to be spaced at 6-10 km intervals.
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The proposed methodology for network and route alignment, as discussed in
the study design, provides for a process whereby approximately three to six
possible alternatives will be identified and taken through an evaluation
process. One or two final networks/routes will then be proposed by the end of
August, in order to undertake the more detail planning and analysis on them.
The following aspects will be of importance in the route/network
determination.
! First indications are that the broad corridor between Pretoria and
Johannesburg, within which alternative alignments will be investigated, will
most probably have as western boundary the Ben Schoeman N1 Freeway
and as eastern boundary the existing railway line. The Mabopane
Centurion Development Corridor and the K73 route, which has one of the
best vertical alignments, are both to the west of Ben Schoeman and all
indications are that they will not generate enough passengers to make the
SDI Rail Link feasible. A further rough evaluation will, however, be done
on them before a final decision is taken.
! A link to the Sandton CBD area has been specifically identified as an
important market for the rail link.
! Where possible existing road and rail corridors will be utilised.
! The concept of providing a backbone system onto which secondary lines
and spurs can be attached would be investigated further.
! Even though the intention is to have stations at the largest passenger
generators along the line, proprietary feeder distributor systems at the
stations, acting as modal integration transfer stations, are considered an
essential part of the main line-haul system.
! The possibility of accommodating multiple type services on the main line
will be investigated. This would, for example include express trains not
stopping at all stations, with other trains stopping at all stations. It will also
be investigated whether such an approach would make further secondary
stations possible.
! At Johannesburg International Airport, the Airports Company of South
Africa (ACSA), will be consulted as to how the SDI Rail Link can beintegrated with the development of the airport, also whether it would link to
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a western location of the terminal complex, and/or a mid-runway location.
The different possibilities around value capture, associated with the
terminal station at the airport, will be investigated.
! The CBD to CBD connection between Pretoria and Johannesburg, and the
positive influence the SDI Rail Link could have on the revitalisation of the
two CBDs, will also be considered in the planning and evaluation.
! The process envisaged for the recommendation of a preferred alignment
would consider the following criteria:
# Strategic development considerations
# Economic and other development impacts
# Implementation barriers, e.g. environmental constraints# Travel demand and revenue forecasts
# Capital cost
# Operational cost (e.g. number of train sets)
# Travel time
# Quality of service
# Consider total development focus within province
# Preliminary market segmentation
# Identify development nodes to be linked by project
# Identify primary residential areas
# Prioritise nodes/stations
# Confirm market segmentation
# Identify alternative alignment
4.6 STATION DEVELOPMENT CONCEPTS AND SURROUNDING
LAND USE
The location of stations is one of the most important aspects in the planning of
the routes and networks. Also of great importance is the concept of the
station development itself. A station in the right location would normally
stimulate development at and around the station, and if some of the added
value can be captured in such a way that the SDI Rail Link can directly benefit
from it, it can improve the feasibility of the project.
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But then the Rail Link owner/manager must be able to control some of the
development or the process. The well-known example of excellent value
capture at rail stations is Hong Kong. Very few other rail systems have been
able to achieve the same value capture as Hong Kong. Therefore, although
value capture at stations would be an objective, it is realised that it has its
limitations.
Station location would primarily be determined by existing development, or
finally decided upon and committed new development. Patronage must be
proven to ensure bankability of a project like this.
The station location and development will also provide an important interface
with the local authority. They would have to be fully involved in the location of
stations and the development concept at and around the stations. Matters
like the rezoning of land at and around the stations, as well as the possibility
of bulk service contributions allocated to the station development, must be
investigated at each station.
Depending on whether a station is located at or next to an existing
development, or at an approved new development, would determine whether
there would be developable land, which can be controlled by the project.
Ownership and/or partnerships of development would have to be considered.
The legal implications for government to get involved in such development
would have to be investigated. The possibility of having the developer funding
or providing the station should also be investigated as the station would have
direct advantages for the development its located at.
Value capture on the trip itself, such as baggage book-in, or through services
provided at stations (e.g. parking) will also be investigated. The station
design is therefore also important.
Although it will not affect the direct bankability of the project, the longer term
policy of government regarding the land use in the areas surrounding stations
are very important for the longer term success of the project. Densification at
nodes (and corridors) is essential for increased usage of public transport andthe economic and financial feasibility of public transport projects.
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Such densification would include all types of land use, including residential, to
ensure trips in both directions during the peak periods. Both provincial and
local government would have to actively support such an approach of land
use and transport integration. Government has an obligation towards the
promotion of public transport, in terms of the new National Land Transport
Transition Act. Such obligation can only be successfully dispensed with if
public transport supporting land-use restructuring takes place in the study
area.
4.7 FEEDER AND DISTRIBUTION SYSTEMS AT STATIONS
As mentioned before, the feeder and distribution systems forms a criticallyimportant part of the SDI Rail Link project.
Based on existing passenger profiles in the corridor, the larger group of
potential customers of the SDI Rail Link will either be:
! captive to public transport, but can afford to choose the "best option, or
! people who owns a private car, but will opt to use public transport of a high
quality
Their needs, requirements and perceptions are such that they will as a rule
not be satisfied (in terms of quality of service and image) by the public
transport system in its existing form, for travel to and from stations.
The question arises whether the existing public transport system and modes
can be adapted or restructured to provide the feeder/distributor services? It is
believed not to be desirable, because:
! It may not be cost effective to change the quality and image of these
services to a level acceptable to the potential market of the new system.
! The focus of these services may not primarily be on feeding the stations,
but also to capture other markets and satisfy other demands and desire
lines
! The rail operator may not be able to control or directly influence key issues
related to the feeder/distribution services, which may harm its potentialmarket share.
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It is thus concluded that the current public transport services (even if adapted)
cannot fulfil the primary role of transporting the larger group of customers to
and from the Rail Link stations.
Primary public transport feeder/distribution systems should be dedicated,
generally of a higher quality than most of the existing public transport
services, and the Rail Link operator must be able to control or significantly
influence operational decisions (i.e. frequencies, area coverage, etc.). It is
proposed that the dedicated public transport feeder/distribution systems
should be operated by the Rail Link operator or in an integrated manner by
operators commercially contracted to it.
The choice of the modes to be employed for the primary dedicated public
transport feeder/distribution systems should be based on demand per
corridor, modal niches and may be a combination of modes.
The Rail Link may have to compete directly with high quality taxi type services
for the same customer base, e.g. the current 25-seater vehicles being used
between Johannesburg and Pretoria and the new "recapitalised" vehicles to
be phased in during the next five years. It is proposed that mechanisms be
pursued to bring these operators into an integrated system, to provide
feeder/distribution services to stations and not operate in competition.
Some of the passengers will find it more convenient and will be prepared to
use existing public transport services as feeders/distributors. Attention should
therefore be paid to the integration and restructuring of such existing bus and
rail transport services to support this project. However, it is proposed that this
be dealt with more extensively a part of other processes (e.g. rail
concessioning, bus contracts and permission strategies).
It is proposed that dedicated public transport feeder/distribution services
primarily be focused on high-density employment, retail and commercial
nodes. A secondary focus may be higher density residential areas, as well as
satellite park-and-ride sites in lower density areas. In the lower density
residential areas many of the potential passengers would use park-and-ride
facilities at the origin station. The feeder/distributor services to these areas
would thus be of lower coverage and intensity.
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Integrated-ticketing and information services, as well as integrated schedules,
will be essential between the rail service and the public transport
feeder/distribution services.
Depending on the percentage of infrequent (i.e. business people, social
travellers and tourists) travelling customers and the costs related to providing
such services (or profit to be made from), attention should be given to
providing the following at all or certain stations, probably through quality
controlled concessions:
! Metered taxi services,
! Dial-and-ride services, and
! Car hire.
Given the profile of the potential customers, park-and-ride facilities will have to
be provided at most if not at all stations. This must include integrated pricing
between parking prices and fares. The operations of park-and-ride facilities
may also be contracted out by the SDI Rail Link management.
Surrounding land uses to stations must be such that it reduce
feeder/distribution requirements over time and optimise walking access to the
rail system.
4.8 TECHNOLOGY
The technology to be utilised on the proposed rail network will have to be
aimed at achieving firstly the project objectives, but also the specifications in
travel times and passenger comfort levels.
From a fundamental viewpoint, the technology to be used will comprise the
most appropriate modern but tested technology that would result in a
sustainable and effective system from a life-cycle cost perspective.
4.9 SAFETY AND SECURITY
It is important that the necessary actions are taken to positively influence the
passengers perception of commuter rail as a safe and secure transportmode.
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Some of the considerations to be taken into account, includes
! Target market perceptions
! Communication and public liaison
! Safe design of system;
- Ticketing
- Rolling stock
- Stations and Station precinct
- Parking
Planning and design principles and specifications will have to be
developed.
Costing implications will have to be determined.
4.10 LIGHT FREIGHT
The Gauteng SDI Rail Link will not accommodate any of the Spoornet freight
trains. However, an investigation will be done on the conveyance of parcels
and containerised high-value goods.
If appropriate, off-peak trains with such freight may be accommodated.
However the focus will remain on public passenger services, and freightservices will only be allowed if beneficial from a life-cycle-cost perspective,
and if no negative impacts are experienced on the passenger services.
The study will consider the needs of passenger luggage on the Airport Link
elements of this project.
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5. IMPLEMENTATION CONSIDERATIONS ANDPARAMETERS
5.1 FEASIBILITY AND BANKABILITY
The Gauteng Cabinet has already accepted the SDI Rail Link as one of the
ten SDI projects to be implemented if at all possible. Its willingness to
implement has therefore been illustrated and was based on a number of
considerations. This is the reason why this study is not only a feasibility
study, but also a planning and implementation study leading to a Request for
Proposals. Therefore it is not only the feasibility for Government that is
important, but even more so the feasibility and bankability for the private
sector, as they would have to become fully involved.
Feasibility can be considered firstly as the general factors that should be
present to make the project possible (in terms of the broad description of
feasibility), and secondly, those criteria that have to be met for by any specific
body to accept the project as feasible.
Investors will require a comprehensive feasibility report, stating clearly
Governments viewpoint on the feasibility of the project, and indicating project
viability with sufficient information to judge for themselves the feasibility of the
project.
Feasibility implies that the project can be implemented. This is judged in
terms of:
! Technical Feasibility
Technical Feasibility means that all the criteria are met which will indicate
that it is technically possible to implement the project.
! Economic Feasibility
A project is considered economically feasible, if the benefits accruing to
the broad community (usually measured in monetary terms) is higher than
the cost of undertaking the project. This, in other words, implies that
consideration be given whether it is worth it?
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For this purpose, the benefits (even the value of life and travel time
savings) have to be quantified and put into monetary terms in order to
compare these with the project costs. In addition, the future value of
money must be determined in order to compare future benefits with
current construction costs. This is calculated by discounting the future
costs and calculating nett present values. Taxes and subsidies are
ignored (as these entail cross allocations within the community being
considered which are not applicable for economic feasibility assessments).
! Financial Viability
Financial analysis concerns the financial position of a person, or
organisation, so that both cost and benefits are measured in terms of
money spent or received, regardless of whether the prices are a good
reflection of true value. This kind of analysis includes taxes and subsidies.
For this project financial analysis should be done for:
- The Operating Company / BOT Concessionaire, who will invest,
maintain, operate and manage the rail transport system. This analysis
is largely related to the bankability of the project, which is very
important to ensure private sector interest and competition in the
tender process.
- Government (Gauteng Provincial Government and the Transport
Authorities) who will be responsible for some investment, and possible
subsidy, burdens.
- The passengers using the system, who will decide whether or not to
use the proposed system.
! Socio-political acceptability
This measure of feasibility considers the acceptability of the project by the
affected communities. It would include aspects such as whether or not the
project meets government objectives and goals. These could include
goals such as job-creation, transformation, and creating opportunities for
SMMEs
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The following aspects will have to be studied further:
! Acceptable travel fares
! What constitute a sufficient number of passengers
! Acceptable profit and risk levels for the investors and operators,
! Acceptable investment levels
! Acceptable and affordable government subsidy levels. This needs to
be investigated further, but at this stage, all indications are that the
requirement may be a very high cost coverage from the fare box costs,
with regard to operational costs.
! No fatal errors as pertaining to the environmental considerations.
5.2. RISKS
It is extremely important to identify the risks that may impact on this project as
soon as possible. This is firstly important with regard to the feasibility and,
secondly to enable the project planning and design tasks to address these
risks. The latter may be with the view of eliminating the risks, or at least to
introduce mitigating measures and to limit the impact of the risks.
In addition to the identification of the risks involved, it is important to also
consider the allocation of those risks to the appropriate body responsible who
is in the best position to deal with such risks.
The following risks have provisionally been identified:
5.2.1 Patronage Risks
A number of factors outside the control of the operator and investors of the
proposed system may impact on the patronage of the proposed system.
These include:
! Permits given to parallel road-based public transport operators
! Subsidies given to parallel road-based public transport operators
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! The congestion levels on the parallel roads. The impact of the introduction
of new roads and additional capacity to existing parallel roads (as part of
the Toll Road Strategy) should be considered.
!
The level of development (or decay) in the vicinity of stations.! Other land-use related risks.
5.2.2 Financial Risks
Financial risks may include the following:
! Risks pertaining to the inflation rate
! Risks pertaining to the exchange rate (for those components that have to
be imported)
! Risks pertaining to land taxes
! Risks pertaining to interest rates
! Risk resulting from changes in the unemployment rate or factors impacting
on affordability
! The fares charged by parallel public transport
! The cost of fuel vs the cost of electricity
! The toll fares charged after the toll strategy is introduced.
! The accuracy of the cost estimates.
5.2.3 Public Acceptance and Rejection
The public generally accepts public transport improvements. However, public
transport in South Africa does not have a good record, which may result in
substantial resistance to accept the positions of the stations and the railway
lines from the adjacent land owners.
5.2.4 Environmental Risks
There are a number of environmental risks that may impact on this project.
These should be identified and managed.
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5.2.5 Pre-implementation Risks
These risks pertain mostly to the feasibility, and the ability of Government to
negotiate successfully with the preferred bidder. (If not well managed, it may
be possible that delays may be encountered.)
Any project has internal risks, that may be controlled, and external risks,
outside the control of the project. It is important that these risks be identified
at an early stage, so as to eliminate risks, even from the planning stages of
the project. The responsibility for the risks should be carefully considered, so
as to determine which party is in the best position to control or limit such a
risk.
The above list of identified risks will be investigated further during the study,
with the aim of limiting the risks. The risks for government will be studied
carefully, and considered how this would impact on the feasibility of the
project.
The risks that will receive special attention include the following:
- Permits given to parallel public transport services. (Consider the
possibility to limit parallel permits)
- Subsidies given to parallel public transport services. (Obtain an
undertaking to limit parallel subsidies and other forms of financial and
economic support to public transport services by government.)
- The taxi-recapitalisation process, and perceived possibility of subsequent
changes to public transport supply and demand. (Clarifying to investors
that this would not entail unlimited additional supply.)
- Acceptable feeder and distributor services
- Development controls by government. (Introducing such controls to
facilitate densification at the station nodes.)
- The implementation of the Toll Road Strategy and similar impacts on
parallel private transport. (This is needed to clearly indicate the relative
advantages to the investors.)
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5.3 LEGAL ASPECTS INCLUDING OBTAINING RIGHT OF WAY
The proposed rail link will require a rail reserve along the alignment which will
be determined as part of this planning and implementation study. This
alignment will cross different metropolitan authority areas. It will also cross
different types of land uses of which some will be open and others developed.
Some will be very high valued and others cheaper. Existing servitudes for
services such as electrical supply, telecommunication and pipelines will also
be crossed.
Due to time constraints on the implementation on this project, the only
practical way to obtain the required rail reserve, would be through
proclamation of the railway line and the expropriation of the required land,
which allows for a fair compensation process for land owners. As was
mentioned before, it seems at this stage if the ownership of the infrastructure
would be in the hands of the Provincial Government, at least for the initial
periods.
Provincial Government has concurrent legislative competence for publictransport, including rail, in terms of the Constitution of RSA Act. Previously
provincial governments were mainly responsible for roads and much of the
existing legislation, therefore, deals with roads, including the right to
expropriate land. Gautrans is currently busy drafting a Gauteng Transport
Infrastructure Bill which includes in the definition of transport infrastructure,
facilities for the use of trains and its passengers. It provides powers to the
MEC to plan, design, construct, control, manage, develop, maintain, protect
and rehabilitate transport infrastructure, as well as to expropriate land for
transport infrastructure. The Gauteng Provincial Government will thus have
the power to expropriate land for the construction of railway lines and stations.
What is however important, is that the above Bill should be completed as
soon as possible and passed by the Gauteng Provincial Legislature. Should a
problem arise with the above process, it can be considered to utilise the
existing SARCC legislation.
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In the planning and implementation of the Gauteng SDI Rail Link different
pieces of legislation will have to be considered. It will also be necessary to
identify legislative obstacles for the project through conducting a legal due
diligence. This is necessary in order to avoid unnecessary delays.
5.4 RESPECTIVE ROLES OF GOVERNMENT AND THE PRIVATESECTOR, INCLUDING PPPs
It is the intention of the Gauteng Provincial government to fully involve the
private sector in the Gauteng SDI Rail Link implementation. Therefore the
intention is to end this study with a Request for Proposals from the private
sector, probably in the form of some sort of BOT process.
In essence the approach will be to allocate ownership of assets,
responsibilities and roles to Government and Private Sector respectively in
order to:
! Reduce life cycle cost to Government;
! Attract private sector interest create a bankable deal;
! Satisfy public transport needs and enhance economic development;! Transfer risk to the party who can best control it.
Aspects which will be considered, include the following:
! The different ownership options in respect of land and property, fixed rail
infrastructure and rolling stock, including the implications of the different
ownership options on matters such as contract duration, risk transfer,
competition, control, subsidies, etc.
! The different types of risks that can be financed and transferred, including
operating, interest/renewal and capital investment risks, on operating
costs, interest/depreciation, short term assets, rolling stock and fixed
infrastructure.
! The different options where the revenue would be sufficient to cover, for
example, the operational costs plus a reasonable profit, the operational
costs plus depreciation, or the operational costs plus some capital
investment.
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! The length of a concession in terms of the type of risk transferred and the
typical pay-back periods.
Some of the pointers at this stage which will be considered are the following:
! Transfer only those risks that the concessionaire can control
! Transfer only those risks which the concessionaire can fund
! Match concession length to pay-back periods
! So far international experience has shown that it may be possible to cover
operating costs and possibly some asset renewal
! It may therefore be necessary to free access to assets, but there will be an
obligation to return assets in good condition at end
! The possibility that government would have to fund the infrastructure or
part of it, will have to be investigated.
5.5 IMPLEMENTATION PROJECT
The proposed targeted date for commissioning of the rail service by 2005, and
the proposed deadline (to be operational by the 2006 Soccer World Cup)result in an extremely tight implementation programme. This implies that
there cannot be any time wastage. Government and other roleplayers will be
made fully aware of the critical constraints so that there can be no wrong
expectations.
It is important that from the commencement of the Planning and
Implementation Project the time consuming tasks are known, so that the
planning can address these from the onset.
In addition, it is important to get an early estimate of the time to complete
these tasks, in order to commence with the scheduling thereof. It is, therefor,
the intention to get input from international experience on these tasks, once all
agree with the list of identified tasks. A best case scenario and a worst case
scenario will be developed.
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The following tasks critical to the implementation have provisionally been
identified:
! During or straight after the Planning and Implementation Study
- Legislation (new legislation if required)
- Land-use zoning / reservation
- Land procurement and expropriation
- Advertise project / project briefing
- Pre-qualification
- Bidding period
- Negotiations
- Contract closure
! During or Part of the Bidding Process
- Project approval
- Budget approval
- Legislation (small amendments to existing legislation)
- Decision on government role and private sector involvement
- Decision specifications (broadly)
- Detailed project planning (by bidders)
- Prepare detailed project specifications
- Prepare tender documentation
! As part of the Construction and Implementation Phase
- Consortium Formalisation
- Detailed Design / Redesign of important elements
-
Land procurement / expropriation- Earthworks / bridge construction / tunnelling
- Permanent way and overheads
- Signalling and control systems
- Procure and building of rolling stock
- Equipment and systems design and commissioning
- Testing of systems
- Employment of operating personnel
- Final commissioning
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The previous list of obvious tasks will have to be refined and the Study Team
will then attempt to obtain examples and other input to estimate the time
requirements. The duration for implementation will be a key element, which
will be included in the Request for Tenders, and will be used to adjudicate the
tenders in order to meet the required deadlines. When the Request for
Proposals is developed, finality on whether the soccer World Cup will
influence it will be known. Figure 4 provides an indication of the
implementation of the Project.
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6. BUSINESS PLAN AND STUDY DESIGN
1.1 INTRODUCTIONThe Business Plan and Study Design is primarily aimed at ensuring that the
scope of the project, as discussed in the preceding chapters, is achieved within
the framework of the needs of the Gauteng Government.
Some of the contents of this chapter were provided in the original brief of
Gautrans to the consultants, and the remainder is based on the investigations
undertaken during the first phase of the study.
The relationships between the various elements are illustrated in Figure 5.
Issues
Objectives
Deliverables
Process
Programme
ConsultantTask
Consultative Structure and Process
Project Management Structure
Envisioning
ConceptualPlanning
ScopeStudy Design
Identify
Accept
Budget allocation
Resource allocation
Budget (R) Task
Envisioning
Figure 5: Relationships
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1.2 STUDY GOALS AND DELIVERABLES
1.2.1 Study Goals
The Study Goals are:
To Confirm Feasibility, and to determine what would be necessary to
make the project more feasible and to attract private sector investment;
To Planthe implementation project, including:
Broad Technical Planning: e.g. station positioning and spacing, routing,
fares, technology, etc.
Business Case: e.g. determine PPP Model to be used, funding, etc.; and To Prepare a Request for Proposal to prospective bidders on the
implementation project.
1.2.2 Deliverables
In addition to this Inception Report, the project will have three main deliverables,
namely:
! Feasibility analysis to confirm the findings of the pre-feasibility study, with
the focus on Financial Viability and to facilitate Bankability;
! Description of the proposed system and the design parameters of the
proposed implementation project; and
! Request for Proposals from prospective bidders.
1.3 STUDY OBJECTIVES
The Study Objectives are categorised into two groups, namely the primary
study objectives, and other secondary more-specific objectives, as required to
achieve the deliverables and as requested specifically by Gautrans and the
Project Review Committee.
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1.3.1 Primary Study Objectives
The primary study objectives are:
(1) To undertake the conceptual planning of the project;
(2) To confirm the findings of the pre-feasibility study and determine what
is required to make it acceptable and attractive for private sector
investment.
(3) To determine the project specifications to be implemented and included
in the Request for Proposals for the Gauteng SDI Rail Link, including:
! Conceptual Planning
! Market Segmentation
! Land-use Perspectives and Projections! Route Determination
! Travel Demand and Patronage Projections
! Location of Stations
! Track Alignment
! Technology Specification
! Modal Integration
! Capital Investment and Operational Cost Estimates
! Economic and Financial Ev