1. 2015/16 Strategic Plan Breaking Barriers and Building Bridges – A Collaborative Journey 1

2. TABLE OF CONTENTS 2 A: INTRODUCTION B: STRATEGIC PLAN 2015/16 C: FINANCIAL INFORMATION

3. INTRODUCTION 3 Strategy is an ongoing process of enriching ideas, improving concepts and initiatives, making the execution happen and getting RESULTS

4. INTRODUCTION COMPLIANCE-DRIVEN STRATEGIC APPROACH – UP TO 2013/14 Short-sighted: Input-Process-Activity/Output focussed Focus on departmental contributions encouraged a Silo Mentality No Differentiation between Strategic, Tactical and Operational targets Could not Demonstrate Intended Impacts Inward Focussed Objectives Produced a Reactive Strategy 4

5. INTRODUCTION COLLABORATIVE APPROACH – 2014/15 Premised on Results/Outcomes-Based Management Differentiates between Strategic, Tactical and Operational Targets More Outwards Focused i.e. Attention to RISKS in the External Environment Greater emphasis on Collaboration and Intra-Departmental Work Provides the basic Architecture for Good Governance 5

6. INTRODUCTION RISK BASED APPROACH – THE 2015/16 STRATEGIC JOURNEY Focus on Strategy Execution Higher level focus on external impacts will require focus on critical issues: Value creation Stakeholder engagements Understanding the Risk Landscape Practice and Demonstrate Integrated thinking Embrace complexity – multiple perspectives Systems approach thinking 6

7. 7 INTRODUCTION Time Impact & Change Risk landscape Collaboration landscape Compliance landscape PAST 2014/15 2015/16

8. 8 LEADERSHIP & CULTURE: INSTITUTIONAL GROWTH AND STRENGTHENING ENGINEERING Investments in rail technologies EDUCATION Safety promotion ENFORCEMENT Mitigate risks INTRODUCTION

9. INTRODUCTION :STRATEGIC FRAMEWORK 9 ASPIRE TO ACHIEVE ZERO OCCURENCES Strategic Alignment and Collaboration Risks in the Railway landscape have been Mitigated New Investments in Rail Infrastructure and Technologies Impacts Positively on Railway Safety Railway Safety Effectively Promoted Sustainable Institutional Growth and Development Strategic Outcomes Legal Framework MTSF ObjectivesDoT Strategic Goals

10. RSR STRATEGIC PLAN 2015/16 10

11. STRATEGIC OVERVIEW 11 Vision Aspire to achieve Zero Occurrences Underlying philosophy: “Every occurrence can be avoided and every occurrence is everybody's responsibility" Mission To oversee and promote safe railway operations through appropriate support, monitoring and enforcement, guided by an enabling regulatory framework Values Integrity & Trust Transparency Fairness & Equity Innovation Sense of urgency

12. 12 STRATEGIC LEVERS/DRIVERS 7 E’S

13. 13 STRATEGIC OUTCOME 1 : RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.1 : To secure sufficiency of safety related and safety critical competencies in the rail industry Objective Statement : To ensure sufficient RSR certified and accredited personnel to satisfy the current and future demand for safety critical and related personnel Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Number of safety critical grades certified New Indicator1000 Train Drivers Certified

14. 14 STRATEGIC OUTCOME 1 : RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.2 : To mitigate human factor risks Objective Statement : To identify, quantify and address the root-causes of occurrences that are attributable to Human Factor Risks Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target % Compliance to Human Factor Standard achieved in the industry New Indicator 113 (All Class A) Operators compliant to 9 of the elements of the Human Factor Standard 92 Human Factor Audits conducted

15. 5 STRATEGIC FOCUS AREAS 15 LEVEL CROSSINGS

16. 16 STRATEGIC OUTCOME 1 : RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.3 : Enable people and rail to co-exist safely Objective Statement : Promote the safe increase of rail corridor capacity to meet envisaged future demands by influencing integrated transport and land-use planning and by overseeing and regulating operators Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Reduction in the number of level crossing occurrences 119 Level Crossing Occurrences Hot Spot Analysis completed 13 Level Crossing Investigations conducted 70 Level Crossing Inspections conducted

17. 5 STRATEGIC FOCUS AREAS 17 PEOPLE STRUCK BY TRAIN

18. 18 STRATEGIC OUTCOME 1 : RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.3 : Enable people and rail to co-exist safely Objective Statement : Promote the safe increase of rail corridor capacity to meet envisaged future demands by influencing integrated transport and land-use planning and by overseeing and regulating operators Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Reduction in the number of people struck by trains 588 IncidencesRailway Reserves Regulation developed 3 Occurrence Investigations conducted on people struck by train 56 Inspections conducted on high risk corridors

19. 5 STRATEGIC FOCUS AREAS 19 MAINLINE DERAILMENTS

20. 20 STRATEGIC OUTCOME 1 : RISKS IN THE RAILWAY LANDSCAPE HAVE BEEN MITIGATED Outcome Description: Mitigate risks of occurrences by designing and establishing an appropriate regulatory approach to oversee, monitor and enforce railway safety within the regulatory framework provided by the NRSR Act, policies, procedures, standards and other operating guidelines Strategic Objective 1.4: Strengthen the regulatory approach on asset maintenance Objective Statement: To strengthen the regulation of railway asset maintenance management by: Supplementing the existing reactive (i.e. identifying and fixing) maintenance approach by developing a more proactive (predictive and preventative) one; Influencing the quality of maintenance suppliers for safety critical systems and components; Improving the maintenance regulatory framework; and Implementing best practice maintenance standards. Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Reduction in the number of mainline derailments 280 Mainline derailments182 Asset Maintenance Inspections conducted 18 Occurrence Investigations conducted on Perway and Rolling Stock related derailments

21. 21 STRATEGIC OUTCOME 2 : RAILWAY SAFETY EFFECTIVELY PROMOTED Outcome Description:. Address the lack of railway safety awareness regarding rail safety through education, communication and training initiatives within the community and among operators Strategic Objective 2.1: Create awareness that can lead to a culture of safety Objective Statement : Instilling in every citizen who interacts with the railway system the importance and value of safe railway behaviour Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Number of awareness campaigns conducted Communication Strategy implemented 20 Awareness Campaigns conducted

22. 22 STRATEGIC OUTCOME 2 : RAILWAY SAFETY EFFECTIVELY PROMOTED Outcome Description:. Address the lack of railway safety awareness regarding rail safety through education, communication and training initiatives within the community and among operators Strategic Objective 2.2: Create and Promote awareness of the financial impact of unsafe railway operations Objective Statement: Convince the industry that safety should be their number one strategic priority Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Benefits derived from safe railway operations Number of Regulations Developed and amended Regulatory Impact Assessment conducted

23. 23 STRATEGIC OUTCOME 3 : NEW INVESTMENTS IN RAIL INFRASTRUCTURE AND TECHNOLOGIES IMPACT POSITIVELY ON RAILWAY SAFETY Outcome Description:. Ensure investment in rail infrastructure and technologies address safety improvements Strategic Objective 3.1 : Manage the risks of new works and technology developments Objective Statement : Evaluate the impact of new works and technology developments from conception to ensure that new changes are introduced safely and that interoperability with existing systems and between operators is ensured Strategic Key Performance Indicator (KPI) Baseline as at 2013/20142015/16 Annual Target Number of occurrences due to new works 85 % of Technology Reviews conducted as per requests Regulation on new or proposed construction or operation developed

24. 5 STRATEGIC FOCUS AREAS 24 PLATFORM TRAIN INTERFACE

25. 25 STRATEGIC OUTCOME 3 : NEW INVESTMENTS IN RAIL INFRASTRUCTURE AND TECHNOLOGIES IMPACT POSITIVELY ON RAILWAY SAFETY Outcome Description:. Ensure investment in rail infrastructure and technologies address safety improvements Strategic Objective 3.2 : Eliminate Platform-Train Interface (PTI) occurrences on commuter railway lines Objective Statement : Eliminate Platform-Train Interface (PTI) occurrences on commuter railway lines through a process of collaborative engagements with all stakeholders and enforcing corrective action directives Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Reduction in the number of PTI occurrences Number of Research Reports completed 85 Causality Analysis conducted on PRASA A Corridor Stations 10 Occurrence Investigations conducted on PTI’s

26. 26 STRATEGIC OUTCOME 4 : SUSTAINABLE INSTITUTIONAL GROWTH AND DEVELOPMENT Outcome Description:. Enrich organisational governance processes and procedures to promote integrated thinking and collaboration, and to enable the sustainable growth and development of the RSR Strategic Objective 4.1: Institute effective governance and internal control systems Objective Statement: To improve internal controls in order to achieve a clean audit with no significant findings Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Adequate and effective governance, risk management and internal control systems New IndicatorUnqualified audit opinion on Performance Information and Financial Statements

27. 27 STRATEGIC OUTCOME 4 : SUSTAINABLE INSTITUTIONAL GROWTH AND DEVELOPMENT Outcome Description:. Enrich organisational governance processes and procedures to promote integrated thinking and collaboration, and to enable the sustainable growth and development of the RSR Strategic Objective 4.2: To secure a sustainable financial environment Objective Statement: To increase revenue from providing a service to the industry Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Revenue generated R60 million generated from Permit Fees R100 million of Revenue generated from Permit Fees Number of regulations developed and amended Investigation Cost Recovery Regulation developed NIMS Implemented ICT Strategy ImplementedNIMS Phase 3 Implemented

28. 28 STRATEGIC OUTCOME 4 : SUSTAINABLE INSTITUTIONAL GROWTH AND DEVELOPMENT Outcome Description:. Enrich organisational governance processes and procedures to promote integrated thinking and collaboration, and to enable the sustainable growth and development of the RSR Strategic Objective 4.3: Ensuring Performance Excellence Objective Statement: Sustained performance can be achieved by the effective management of the organisation, through awareness of the organisation’s environment, by learning, and by the appropriate application of either improvement, or innovations, or both. This requires a robust, integrated and objective performance management system, i.e. a Management Quality System (MQS) that can elevate the maturity level of the organisation – covering its leadership, strategy, management systems, resources and core business processes – to identify areas of strengths and weaknesses and opportunities for either improvement, or innovations, or both. Strategic Key Performance Indicator (KPI) Baseline as at 2013/2014 2015/16 Annual Target Service Delivery Index (SDIX) New IndicatorGovernance Excellence SDIX 35.0

29. FINANCIAL INFORMATION 29

30. 30 FINANCIAL INFORMATION REVENUE Financial Year 2015/16 2016/17 2017/18 R R R Transfers - Government Grant 53 379 000 55 987 000 59 564 000 Permit Fees 100 000 000 123 000 000 143 100 000 Capital/New Works Projects 11 000 000 12 100 000 13 310 000 Investment Income 330 000 349 000 370 000 GRAND TOTAL 164 709 000 191 436 000 216 344 000 Staff costs 2015/16 2016/172017/18 R R R Compensation of Employees Staff costs 106 337 815 118 603 100 139 513 410 Directors remuneration 858 000 943 800 1 038 180 Goods and Services Lease: Office rentals and vehicle 12 156 000 12 697 000 13 966 000 Regulatory Audit Fees 1 694 000 1 863 400 2 049 740 Professional fees 18 254 185 21 772 000 31 139 000 Other Admin & Operational costs 17 564 000 26 706 700 27 617 670 Capital Expenditure NIMS - National Information Management Systems 7 845 000 8 000 000 Other Capital expenditure - Assets eg: ICT infrastructure - 850 000 1 020 000 TOTAL EXPENDITURE TRENDS 164 709 000 191 436 000 216 344 000

31. 31 Below is the trend analysis of revenue for the past five years: FINANCIAL YEAR2011/12 (‘000) 2012/13 (‘000) 2013/14 (‘000) 2014/15 (‘000) 2015/16 (‘000) Grant Income 37 47539 34946 51351 50453 379 Permit Fee 20 59638 41457 91979 000100 000 New Capital Works ---2 50011 000 TOTAL 58 07177 763104 432130 504164 379 FINANCIAL INFORMATION

32. PERCENTAGE GROWTH 32 Percentage growth2011/122012/132013/142014/152015/16 Grant Income - OPEX 5.17%5.00%5.50%6.00%3.48% Permit Fees 82.81%86.51%50.78%36.40%26.58% FINANCIAL INFORMATION

33. 33

34. HUMAN RESOURCES INFORMATION 34

35. ORGANISATIONAL STRUCTURE CEO Board of Inquiries Chief Financial Officer ICT Facilities Management Supply Chain Management Int Relations and Stakeholder Management Executive Office of the CEO Internal Audit Human Factors Payroll Training & Dev Recruitment & Selection Employee Relations Head: Occurrence Investigations Head: Human Resources Technology, Standards & Training Research Rolling Stock Infrastructure and Environment Public Relations & Events Management Head: Research and Technical Services Head: Corporate Affairs Chief Risk Officer Operational Risk Management Internal Risk Management Permits Administration Regional Operations Cert: Safety Critical Grades Head: Operations Corporate Communications Head: Media and Communications Company Secretary Head: Regulation & Governance Chief Operations Officer Legislation Corporate Legal Support Finance Occurrence Investigations Perf & OD Strategy & Perform Project Management Office

36. STAFF COMPLIMENT GROWTH 36 Key growth area: Staff Compliment Staff2011/122012/132013/142014/152015/16 Engineers1422212759 Admin & Management65747288104 Internship-17-1315 Total7911393128178

37. CURRENT EMPLOYMENT EQUITY PROFILE 37 MALEFEMALETOTAL African5657113 (87%) Coloured145 (3.9%) Indian123 (2.3%) White639 (7%) Total64 (49%)66 (51%)130

38. THANK YOU 38