n3 toll concession(rf) proprietary limited · – enterprise development • review of 2014...

N3 Toll Concession(RF) Proprietary Limited

Providing

Safety. Convenience. Mobility.

01 Toll Roads in South Africa02 The Asset03 The Business Model04 Financial Performance05 Traffic Forecasts06 Environmental Management07 Corporate Social Investment08 Public Relations and Marketing09 Conclusions

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Contents

Where is South Africa?

South Africa – Road Network

• Toll roads introduced in 1984.• Tolls based on the ‘User Pays’ principle.• Grown from 27 kilometres to 3,120

kilometres:– 1,832 km managed by SANRAL; and– 1,288 km managed by three

concessionaires.• Toll roads constitute 16% of the national

road network of 19,704 km.

Toll Roads in South Africa

• A single purpose company.• Effective date 02 November 1999 – 30-year

concession.• Cedara to Heidelberg – 415kms.• N3 links the industrial heartland in Gauteng

to the country’s biggest and busiest port in Durban.

• AADT varies between 11,000 and 16,000 at the plazas.

• 30 – 35 % heavy vehicles (based on AADT).

The Asset: Overview

• Concession Contract and 26 Annexures.• Obligations -> Design, Construct,

Finance, Operate and Maintain• Risks assumed by N3TC

– Traffic, funding, and construction • Risks assumed by SANRAL

– Delivery of site, MAGA, toll rate adjustments, and overloading

The Asset: Concession Contract

• Safety: the ability to travel on a world-class road, with engineering, education and enforcement forming the pillars of our drive towards a safer N3.

• Convenience: the ease with which our customers – be it for recreational or commercial purposes – can travel along the N3 Toll Route.

• Mobility: where traffic congestion, due to weather, construction or accident delays are minimised.

Safety. Convenience. Mobility.

• Obligation to maintain the road pavement and structures, and to provide a remaining structural capacity at the end of the Concession.

• LOS D Contractual minimum Level of Service.• Pavement management:

– The Pavement Management System;– Network condition monitoring – annual measurements; and– Independent reviews.

• Bridge management – The Bridge Management System

• Geotechnical management – The Geotechnical Management System

Business model: Design & Construct systems

• Toll Collection Services outsourced.• Revenue collection risk assumed by Operator.• Toll collected at four mainline and five ramp plazas.• 58,000 transactions per day.• Automatic Vehicle Classification (AVC).• Video Toll Audit System (VTAS).• Queue Length Monitoring.• Electronic Toll Collection (ETC).

Business Model: Toll Operations

• Operations 24/7:– Traffic counts and weigh in motion data;– Route control centre – 0800 N3 HELP;– Route patrol service;– Road Incident Management System;

• Incident Reporting Information System (IRIS).• Variable message signs and CCTV.• Average speed enforcement.• PPP with law enforcement agencies.

Business Model: Traffic Management

2010 2011 2012 2013 2014 2015Crash Rate 52.7 54.4 50.2 49.0 46.9 45.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0C

rash

Rat

e Crashes/100 M.V.Km January to June

Traffic Management: Crash Rate

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2010 2011 2012 2013 2014 2015Fatality Rate 7.38 7.84 6.54 6.04 5.64 4.66

0.001.002.003.004.005.006.007.008.009.00

Fata

lity

Rate

Fatalities/100 M.V.Km January to June

Traffic Management: Fatalities

14

Inland Schools Gauteng,Limpopo,North west, Mpumalanga, Free State Potential leave Special Events

Coastal Schools KZN, Eastern Cape, Northern Cape, Western Cape Public holidays Only Cedara to Tugela

Cedara to Heidelberg Only Cedara to Mooi Only Cedara to Lions River

YEAR DAY Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

C A A A C Bs/Cn C Bs/Cn Cs Cn Cs1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Cn A B B C B Cs Cn Cs Cn Cs1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Cn Cs Cn Cs Cn Cs Cn A A1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

A A A C B A C Cs A Cs Cn A A A1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

A A Cs Cn Cs Cn Cs Cn Bs/Cn B B1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Bn/Cs Bn Cs Cn B B Cs Cn A C1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

A B A Cs Cn C A Cs Cn1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Cn A A Cs Cn Cs Cn Cs Cn1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Cs Cn Cs Cn Cs Cn A A C A1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

A C C A Cs Cn Cs Cn1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Cn Cs Cn Cs Cn Cs Cn Cs Cn 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

C C B B A A A A B B A A A A A C C A A A B B B

LEGENDA = Extremely busy - Unlikely to solve B = Very busy C = Moderately busy, roadway should n = Northbound Example B n = Very busy northbound

total demand, delays likely normally cope, beware incidents ! s = Southbound where lower case omitted, both directions are implied

Jun-

15

N3TC :CRITICAL DATES YEAR PLANNER : 2015

REV 2: 8 JANUARY 2015

Jul-1

52015

Oct-1

5No

v-15

Dec-

15Se

p-15

Aug-

15Ja

n-15

Feb-

15Ma

r-15

Apr-1

5Ma

y-15

Durban July

Women Day

Midmar Race

New Year's Day

Human Rights

Worker's Day

Youth Day

Freedom Day

Traffic to peak from 14:00 to 18:00: Vehicles on SB greater than 1000 vehicles per hour (2014 data used)

Good Friday Family Day

Public Holiday

Heritage Day

Comrades Marathon

Day of Goodwill

Christmas

Day of Reconciliation

Traffic Management: Critical Date Planner

• Voluntary Program• State of driver health.• Important link in understanding unacceptable

number of crashes involving trucks.• Address driver health in a sustainable, co-ordinated

manner.• Reduce the number of health-related crashes.• Improve the morale and quality of life of drivers.• A safer Route for all.

Traffic Management: Driver Wellness Programme

• At Inception – debt/equity ratio was 83/17.• Fixed rate and CPI linked debt.• Financial model update: six-monthly.• Preference share issue.• Refinancing.• Hedging.

Finance

Traffic Forecasts

Forecast traffic: example only

0.0%

2.0%

4.0%

6.0%

8.0%

-

30,000

60,000

90,000

120,000

2014

A

2015

F

2016

F

2017

F

2018

F

2019

F

2020

F

2021

F

2022

F

2023

F

2024

F

2025

F

2026

F

2027

F

2028

F

2029

F

AADT

Class 1 Class 2 Class 3 Class 4 Year-on-Year growth (rhs)

• Forecasts generated using a traffic model developed over the Concession Period.

• Traffic model updated by an independent consultant using GDP-Traffic Regression methodology.

• Capacity Upgrades

Environmental Management

• Environmental– Environmental Management Plan.– Compliance monitoring by Independent

Environmental Consultant.– Use of reclaimed asphalt and steel slag.– Initiatives with Birdlife SA, Midlands Conservancies

Forum, Endangered Wildlife Trust, Wildlands Conservation Trust.

• Health and safety– Ongoing audits.

• Priority areas– Education– Tourism– Environment– Enterprise Development

• Review of 2014 Activities– Number of CSI projects: 78– Number of lives touched 74,000– Number of CSI Jobs created: 640 full time and 462 part time– 10 bursaries awarded– CSI Spend: R10million

• Targets set by SANRAL exceeded• N3 Gateway

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Corporate Social Investment: Touching Lives

Value Proposition – Brand Awareness – Reputation• Align activities with business purpose and values.• Radio and print media releases

– Tracking of + and – media• Sponsorships and community event support.• Media tours.• Social media

– Twitter handle @N3Route (48,000 followers)– Facebook– YouTube

• Mobility mobile application.• N3TC website.

Public Relations and Marketing

• Service level improvements on congested facilities:– Congestion relief – Level of Service (Capacity

constraints)– Enhanced customer value and experience

• Customers vs Road users.• Research-informed customer service

interventions.• Value for money - more than a Road...Safety.

Convenience. Mobility. • Innovation – keep it simple, it does still work!

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Conclusions

n3 toll concession(rf) proprietary limited · – enterprise development • review of 2014...

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