Presentation on theme: "City of Johannesburg 12 September 2013. Context and introduction 2012/13 Progress Progress (financial/non financial) Roll overs 2013/14 Key."— Presentation transcript:
City of Johannesburg 12 September 2013
Context and introduction 2012/13 Progress Progress (financial/non financial) Roll overs 2013/14 Key milestones Summary of budget Progress to date Plans for 2014/15 MTEF Key milestones Proposed budget Plans for integration Land use (TOD) Rail (Gautrain/PRASA) NLTA implementation Other issues for consideration
ON 2 May 2013, Mayoral Committee approved improved BRT with strong focus on integration with walking, cycling and other modes for Phase 1C between the Inner City, Alexandra and Sandton On 9 th May 2013, Executive Mayor announced strong focus on Transit Orientated Development in his State of the City address On 21 st June, the Mayoral Committee approved a turn around business plan for Metrobus and that the Metrobuses to be refleeted should be dual fuel (biogas and diesel). A tender for the new buses has been issued and the restructuring of Metrobus is proceeding. On 1 July,we moved from paper tickets to a bank based smart card – first distance based bank card system in world On 10 Sept 2013, the Mayoral Committee approved our Strategic Integrated Transport Plan Framework which includes a high level public transport network and identifies the key corridors for public transport development going forward Last month, Province launched their Gauteng 25 year master plan which includes an intention to set up a Transport Authority – on 10 September, the Mayoral Committee agreed to be represented on a Gauteng Transport Commission but to further engage so that any future institutional form does not jeopardise the integration of land use and transport functions which are critical to remain a competitive City On 14 th October, we are launching our Phase 1B services….
Passengers numbers have dropped since introduction of AFC system Reasons include unfamiliarity and technical glitches, increased prices relative to taxis, opposition to the ABSA loading fee Leading to political pressure for flat fare – not to discriminate Phase 1B to be operated by an Interim service provider due to slow progress of negotiations Obstacles include inability to make progress with both PUTCO and province on how PUTCO will participate, unrealistic expectations on fee per km, how to address “Chinese vehicles” Uncertainty on bus procurement and funding AG qualification on BRT model has impacted negatively on City Decision to no longer fund fleet directly will impact on future cost of BRT model to operators and the City Lack of responsiveness from DOE, NT, SARS on specific issues facing BRT - Restraint of Trade vs. dividend, VAT on BRT, future AG qualifications, regulation of alternative fuels 4
Roads Phase 1B Trunk roadways (Noordgesig to Parktown- 18 km): completed Upgraded 1B feeder route along Griffiths road (approx. 3 km) Upgraded Braamfischer Roadway and intersections adjacent to Meadowlands Depot (approx. 1km) Phase 1C: Traffic impact analysis, preliminary design of trunk roadway completed and detail design of trunk roadway commenced Depots and Terminals Depot completed at Meadowlands for 270 buses Intermodal Terminal at Ndingilizi: Construction to be concluded by end September Preliminary designs for depots at Selby, Avalon and Alexandra completed Preliminary design of New Control Centre in Selby completed Day time layover facility at Selby: Construction commenced Station and Precincts Phase 1B Stations completed (15 Stations), commissioning for operational start commenced. 48 Station Precincts (All Phase 1A and 1B Stations) upgraded to include landscaping, dustbins, benches etc. Signage and Road markings Extensive Passenger information and static pedestrian signage upgrades done for both Phase 1A and 1B(at Stations and within 500m of trunk routes): approx. 85 % complete Bridges and underpasses Road under rail bridge underpass completed in Newclare (Phase 1B) Pedestrian Bridge (2) over Rail in Newclare (Phase 1B) construction commenced NMT (Pedestrian sidewalk upgrades) Assessment of Phase 1A and 1B trunk and feeder routes completed, and upgrading of sidewalks on Route C1, first 3.5km 90% completed.
Control Centre During the 2012/13 financial year, the Control centre equipment was already operational for phase 1a. The Control centre equipment is sufficient for both Phase 1a and 1b. AFC Successfully installed AFC equipment at stations and buses, Implementation of the back-end technical platform, Successfully integrated the AFC system with APTMS for distance-based fare calculation, Integrated the AFC technical platform with the Absa’s back- end system, Passenger info During this financial year, the Passenger information was already operational on the Phase 1a stations and buses. Equipment for Phase 1b stations and buses were ordered and delivered, Installation of the Passenger information on the phase 1b stations and buses commenced. 7
8 Phase 1A passenger numbers and revenue
9 ROUTEJULYAUGUSTVAR%Sept Forecast C %42248 C %40619 C %8538 F %11836 F %28213 F %3087 F %2121 F %6503 STATIONS % TOTALS %381488
AFC implementation Implemented in May Uptake very slow as passengers preferred paper tickets. July was the real implementation date as there were no paper tickets – implemented with annual fare increase High levels of passenger dissatisfaction due to increased costs, bank loading fee and minimum amount The distance based fare system is perceived to be expensive as most people are paying more than they used to. Some technical problems but not major factor in passenger dissatisfaction Card loading: 76% of passengers ‘ loadings are under R61 and are charged a load fee of R1.50 per loading. This makes the system expensive for the majority of current passengers and for the POOREST station tap-in’s and feeder entries Penalties Decreased by 41% from previous month; and Only 3.3% of total ridership got penalties This shows that passengers are learning how the system works 10 Passenger trips for July 2013 is 49% less than passenger trips in June 2013 Passenger trips in August 2013 is 6% more than the passenger trips in July 2013
Seat allocationTaxi industry more or less agreement, some associations not participating – concern is Faraday which should remove 2 routes PUTCO withdrew dispute on seat allocation but no agreement on how they will participate Small bus operators – contracted services providers (e.g. funeral services) not affected by some scholar transport are indeed affected. Other operators not agreeing Metrobus – affected by only five buses. Will be withdrawn by Mayoral Committee Bus Operating Contract Agreement 95% agreement and a resolution passed agreeing not to re-open those in agreement. Operators uncomfortable about bus ownership, 12 year contract and certain insurance aspects. BOCA public participation process ended on 31 st August. No public comments. NT also not commented. Fee per km90% agreement on input costs. Agree on all salaries except that of CEO Presented ‘profit approach’ - have come back and asked for more than double of what we proposed Awaiting for SARS ruling before finalise approach to restraint of trade. Employment and value chain 90% agreement on employment framework agreement. Potential problem with how to absorb PUTCO employees. Value chain agreement negotiations initiated. Participation Framework Doing three different agreements: Taxi industry: Comprehensive draft tabled and negotiations underway PUTCO: No movement due to no movement with Province. Becoming very serious threat. Learner transport: Prepared draft but no support from other operators 11 Rea Vaya Phase 1B to start operations in October
Budget R’000 Actual R’000 Variance % PTIS - Capex 972,405479,57249% PTIS - Opex 328,487326,27399% Total PTIS 1,300,892805,84562% City funding 127,490101,99280% Rea Vaya fares 75,10774,54999% Total other funding 202,597176,54187% Total 1,503,489982,38665%
Description Budget R’000 Actual R’000 Variance % Stations construction and consultants 39,8995,87415 Phase 1B buses 326,17000 Roadways construction and consultants 65,09988,239136* Depots 84,36161,34373 Land 48,45100 Automated Fare Collection and APTMS 231,706188,38581 Intelligent Transport System 122,551100,20482 Station Precincts 47,88129,09361 Walk in Centre Passenger Information Signage 5,7166,434113* Total 972,405479,57249 *- Negative because the rest of the invoices were paid out of other line items.
Description Budget R’000 Actual R’000 Variance % Bus Operating Company 209, , Repairs & Maintenance 40,593 39, Fare Collection 13,808 13, Station Management 31,273 31, Taxi Compensation 33,813 33, TOTAL 328, ,273 99
DETAILS AMOUNT R’000 Original Allocation as per DORA 1,298,702 Less: NDOT Budget adjustment 145,000 Revised Allocation 1,153,702 Less: Amounts withheld due to projected under spend 103,702* 2012/2013 Cash disbursement 1,050,000 Less: Expenditure Incurred 805, /2013 PTIS Balance Unspent 244,472 * Cash withheld as agreed with National Department of Transport and National Treasury
DETAILSAMOUNT R ‘ /2013 PTIS Balance Unspent 244,472 Add: Amounts withheld due to projected under spend 103,702 TOTAL ROLL OVER 348,174 Reasons for Under spending: The 2012/2013 budget included the purchase of buses of which the first batch of 22 buses was only received in July 2013 due to delays in the procurement process. ITS equipment for Phase 1B buses and stations was ordered in June 2013 and will only be delivered and paid for in the 2013/2014 year. The overall ITS communication network for Phase 1B was not completed in the 2012/2013 financial year.
Phase 1A: Increased patronage and quality service Phase1B: Ridership to by June 2013 Phase 1B operating company established Phase 1C Construction to start on key projects (see next slide) Business plan approved Engagements with affected operators in place Other AFC stabilised at policy, operation and technical level Metrobus becoming a scheduled services Increased institutional stability and certainty Increased integration with walking, PRASA and other modes Integrated Transport Network (public transport, walking, freight – detailed allocation of modes to appropriate demand) 18
Roads – Approx. 18km of median trunks (Including 2 new bridges - M1, Katherine) Stations – 10 median stations Interchanges– 3 - Westgate, - Alex/Wynberg, Sandton/Gautrain Dedicated cycle and walking lanes – approx 10 km within Alexandra and 5.2km from Alexandra to Sandton (including a new ped/cycle bridge over M1 Motorway) Depots (1) –Alex/Wynberg Daytime layovers – 3 Control Centre's – One new Central facility (Selby/City) Park and Rides (PPP Partnerships) – various locations on network Public transport priority on feeder and complementary routes Estimated cost: R 2,9 billion ( Subject to Tender prices received ) 19
PROGRESS 13/14 TO DATE Integration with City’s Strategic Area Framework for TOD in Phase 1C area Three new stations added on Phase 1C (Yeoville, Corlett Drive, Dolls House) Public square at Alex interchange prelim design completed. Geotech drilling completed Iconic ‘great cycle and walk’ from Alex to Sandton planning completed 1C Councillor consultation and planning for public meetings completed. Public meetings arranged for 17,18 & 28 Sep Detailed design of 1C roadways nearing completion, tender documents being prepared Detail design of Selby Depot and New Control Centre in progress. Prelim design of Alex Wynberg Depot commenced Ndingiliza Intermodal Terminus – construction 90% complete NMT upgrades along route in Soweto in progress MILESTONES 13/14 Construction of Phase 1C roadways to start in November 2013 Construction programme aims for end 2015 completion date for Phase 1C 1C Business plan to be completed between April and June
PTI Grant R’000 PTO Grant R’000 PTNO Grant R’000 Other R’000 Total R’000 Planning Costs 95, ,476113,807 Operating Costs 00101,221245,505346,726 Equipment Costs 74,180060, ,745 Infrastructure Costs 489, Transitional Costs 01,20599, ,123 Maintenance Costs 41, Total excluding VAT 700,9871,205262,204262,9811,227,377 VAT 98,138036,7094,219139,066 Total including VAT 799,1251,205298,913267,2001,633,643 21
What2014/152015/162016/17 RoadwaysApprox 13km of Phase 1C Trunk Route completed All 1C roadways completed Randburg/Soweto initiated (decision pending) Stations5 Stations completed on 1C Trunk Route All (10 )Stations on 1C Trunk Route completed Prelim design of stations for Randburg/Soweto route(decision pending) DepotsCity Depot under construction. Alex /Wynberg Depot construction commences City depot completed. Alex/Wynberg Depot construction in progress. Alex/Wynberg Depot completed. 24
What2014/152015/162016/17 Customer Satisfaction Index 82%85%87% Passenger Numbers (Rea Vaya ) 85, ,233 Passenger Numbers (Metrobus) 90,00095,000102,000 Uptime of AFC and APTMS95% 25
PTI Grant R’000 PTO Grant R’000 PTNO Grant R’000 Other R’000 Total R’000 Planning 172, ,505230,501 Operating Costs 00101,346293,441394,787 Equipment Costs 110,755060, ,319 Infrastructure Costs 888, Transitional Costs 04,821134, ,013 Maintenance Costs 43, Total excluding VAT 1,215,4594,821291,281350,9461,867,328 VAT 170,164040,77911,195222,138 Total including VAT 1,385,6234,821332,060362,1412,090,141 26
PTI Grant R’000 PTO Grant R’000 PTNO Grant R’000 Other R’000 Total R’000 Planning 116, ,774147,707 Operating Costs 00151,313413,132564,445 Equipment Costs 214, , ,197 Infrastructure Costs 355, Transitional Costs 07,232152, ,827 Maintenance Costs 63, Total excluding VAT 748,9047,232427,084427,9061,611,126 VAT 104,847059,79254,319218,958 Total including VAT 853,7517,232486,876482,2251,830,084 27
PTI Grant R’000 PTO Grant R’000 PTNO Grant R’000 Other R’000 Total R’000 Planning 36,153008,60044,753 Operating Costs 00155,159640,643795,802 Equipment Costs 40, , ,427 Infrastructure Costs 102, Transitional Costs 09,642235, ,789 Maintenance Costs 67, Total excluding VAT 246,0919,642586,533649,2431,491,509 VAT 34,453082,11584,859201,427 Total including VAT 280,5449,642668,648734,1021,692,936 28
In terms of an agreed seat allocation of Phase 1B, 18 PUTCO buses need to removed. We have been in discussion with Province to remove them in terms of contract provisions in respect of ‘operational efficiency’ In terms of NTLA regulations, PTOG funding for these buses needs to come to the City from 14/15 financial year We will continue to discuss with Province whether they will give us for remainder of 12/13 financial year We have provided a budget based on our best estimates. This amount is not agreed with Province.
WHAT CAN WE EXPECT IN 2040? The city population is expected to increase from 4.43 million in 2011 to 6.57 million in Density per km2 will increase from (2011) to Significant increases in employment by 2040 especially in Lanseria ( ) Modderfontein( ) Lion Park (65 000) Athol, Rosebank & Parktown North, Sandton ( each) Midrand Strip (46 000) Buccleuch (45 000) Parkmore, Houghton Estate, Jhb CBD, Limbro park, Islamic Institute ( – each) Halfway Gardens, Randburg CBD, Austin View, Troyeville, Cosmo, Roodepoort, Benrose, Midrand-Noordwyk, Fordsburg ( – each) WHAT WILL THIS MEAN FOR TRANSPORT DEMAND If we assume: Density and TOD reduces average trip length to 19km. 65% public transport due to huge new developments on Rea Vaya corridors (1A, B and C) Then the public transport morning peak hour demand is predicted to double from trips in 2010 to trips in 2040 And if these trips are assigned to the transport network, the next page sets out proposed new services for 2040
LAND USE City’s Growth Management Strategy has always followed public transport corridors Going forward there is a greater focus on planning, development control and public investment along public transport corridors – TOD and “Corridors of Freedom” City’s development planning Department have done strategic area frameworks for Phase 1b and 1C corridors and intend putting in place concrete measure at identified station modes including – changing land use conditions, extra CAPEX for precincts and public amenities, improved urban management, development partnerships with private sector and academic institutions (Wits/UJ) OPERATIONAL/MODAL INTEGRATION Integration between BRTs, rail and conventional bus is being planned and implemented at: Transfer points (e.g. Park Station) Route alignment/modifications – Metrobus operational plan Ivory Park/Tembisa – working with Ekurhuleni Metro Considering integrating mini bus taxis as feeders/last mile service for Rea Vaya and attracting a subsidy linked to agreed performance standards in 1C Working with PRASA on NMT and public transport integration at nodes on flagship corridor (e.g. Roodepoort, Naledi, Dube, Jabulani) INTERGRATED TICKETING While fare harmonisation is more important than the fare medium, our system being bank based can work on other modes and we are putting out tender to extend Rea Vaya AFC system for Metrobus 39
VAT –progress? NLTA amendments – progress? Bank transaction costs and AFC – see earlier High/low floor – see next slide AG qualification – see next slide Capacitation - the lack of BRT skills in the public and private sector is increasingly impacting on quality of delivery - a problem which needs to be collectively addressed by all spheres of government by improved co-ordination and attention to capacity building, knowledge sharing, development of formal qualifications and accreditation etc.
The City of Joburg has a high floor legacy system as was advised by international best practice at the time and for universal access considerations The NDOT position stated in its memorandum dated 2 August 2013 is that buses with lifts are not supported under any circumstances. We are already facing serious threats to the viability of the Rea Vaya and a return to taxis and so we are reluctant to implement even low floor feeders and risk: Reducing the operational efficiency of the system and no longer be able to make use of complementary buses which are very effective and popular and appropriate for long distance commuter travel due to our apartheid legacy Force passengers to transfer to get to their destination of their choice in the inner city – we know passengers do not like to transfer Further reducing road space along the constrained Louis Botha corridor that could be used for NMT and a public environment conducive for TOD Increasing operational costs to the system which the City will have to bear – we are working on the details of this 41
We have recently received our 1B buses and the lifts are improved from 1A buses, do not require the driver to exit the bus and mean that there can be completely level boarding The 1C Sustainability Study approved by the Mayoral Committee recommended a continuation with the high floor legacy system. We will however consider a low/high transfer station as part of our work on integration with Ekurhuleni Further we are continuing to invest significantly in universal access and side walk improvements as part of completing our streets across the entire BRT system and City. 42
AG qualified City on BRT for two main reasons: City retains control over the buses for duration of BOCA: The BOC contract states that the vehicles should not be use for any purposes than to fulfil its obligations iro the BOC services A finance lease exist, risks and rewards thereof remain with City despite legal ownership having transferred: The lifespan of the buses in relation to the term of the BOCA is approximately 70% or more of the life of the buses that will be enjoyed exclusively by the City City has tried many avenues but has now accepting the qualification and an ‘accounting solution’ However there are unintended consequences of such and there will be continue to be unintended consequences of a model that has not been properly interrogated and aligned in respect of all financial, legal and accounting requirements. City proposes: Current model should be seen as ‘incubation model’ and we must move in 12 years to negotiated contract and buses being bought by operators with no guarantee by Cities Cities and NDOT to work together to: Review risks sharing in BOCA agreements including considering whether ‘exclusive use’ can be changed Look at ways of better balancing local content and ‘cheap’ financing from ECA issues Develop guidelines for accounting practice for all cities Improve predictability for Cities (what is NDOT and NT saying re bus ownership? 43
The City of Joburg continues to lead in innovation and delivery of the Rea Vaya BRT and increasing an integrated and transformed public transport, walking and cycling From a year of consolidation (12/13), we are moving to a year and MTEF period of heightened delivery and well as on going innovation and transformation We thank the NDOT and NT for their on going support. 44