1. 1 Portfolio Committee on Transport Annual Report Briefing 2004/05

2. 2 Contents Context Core Mandate of the RSR Key Performance Areas for 2004/05 Progress Report Current and Short-Term Activities Key Challenges Organisational Matters State of Safety Report: 2004/05 Conclusion

3. 3 Context of the RSR Vision of DoT (paraphrased) –To provide safe, reliable, effective, affordable and fully integrated transport operations and infrastructure to meet needs of all communities, in support of Government strategies for social and economic development, whilst being environmentally and economically sustainable. Preamble to RSR Act –Safe railway operations fundamental to safety of persons and the environment –Safe railway operations promote railways as efficient mode –Safe railway operations must be overseen, managed, and co-ordinated –Relationship between railway safety, and occupational health and safety and security –RSR primary role in safe railway operations; supporting role in occupational health and safety, and security –Organs of state must co-operate as provided for in Chapter 3 of the Constitution

4. 4 Core Mandate of RSR Oversee safety in railways Promote use of rail Develop safety regulations Monitor and ensure compliance with the Act Give effect to the Act Note –Focus on safety –Supporting role on security KPA’s –Development of the Institution of the RSR –Creation of a regulated environment –Creation of a safe railway environment ( see next slide for detail)

5. 5 Key Performance Areas Development of the Institution of the RSR –Appointment of staff –Development of organisational systems and processes –Performance Agreement with DoT –Develop a cohesive team Creation of a regulated environment –Develop regulations and standards –Issue Safety Permits –Co-operative Agreements with state departments. Creation of a safe railway environment –Oversee safety including audits, inspections, analysis of statistics and occurrence reports, undertaking occurrence investigations –Create public awareness on safety.

6. 6 Progress Railway Safety Management Regulations –Defines contents of SMS and SMS Report –Specifies that operators must submit the SMS Report with application for a permit –Specifies occurrences to be reported –Describes information to be provided for assessing performance Issued Temporary Safety Permits –Data base of operators –Operators enabled to develop SMS –Received occurrence reports (immediate and quarterly) (will form part of NIMS) Safety Permits currently being issued

7. 7 Progress (cont.) Developed draft South African Standard: Railway Safety Management: Part 1: General (SANS 3000-1/ RSR 001) Gained support and commitment from industry Road shows to explain the RSR Act and expectations Developed internal data base for capturing and analysing occurrences –will form part of NIMS –state of railway safety analysis done Regulations for the development of standards published for comment (closing date31 October 2005) –National standards (developed with Standards SA) –Industry Standards (developed by Industry Association) –Local standards covering specific local conditions

8. 8 Current and short term activities Regulations –Imposition of fines –Level crossings –Exemption from compliance with the Act –Financial assistance To assist worthy needs that will improve safety –Unlawful occupation of land Address unsafe conditions for operations and people

9. 9 Current and short term activities (cont.) Development of standards –SANS 3000-2 to 3000-8 Technical requirements for engineering and operational standards: General Track, civil, and electric traction infrastructure Rolling stock Train control systems Operational systems Railway interface with other modes and utilities Human factors

10. 10 Current and short term activities (cont Conduct research into the creation of competent authority for the transportation of dangerous goods by rail. Development of co-operative agreements –DoL –SAPS –DME –NNR Determination of fee structure for permits

11. 11 Key Challenges 1.State of infrastructure & rolling stock 2.Security 3.Enforcement of the Act 4.Gautrain Rapid Rail Project 5.Intro of competition in rail sector – Freight Logistics Strategy 6.MTEF Budget 7.RSR Sustainability / Funding

12. 12 1. State of infrastructure & rolling stock Vandalism and theft Maintenance cycles compromised Service worthiness Branch line infrastructure neglected Sustainable replacement strategy for commuter rolling stock Creative management to maximise what exists

13. 13 2. Security Security in trains – major problem. Role identification of RSR, SAPS and Operators Co-operative Agreement with SAPS

14. 14 3. Enforcement of the Act Issue notices – generally weak enforcement mechanism. Act provides for use of the criminal justice system Propose regulations for the imposition of fines

15. 15 5. Gautrain Rapid Rail Project Unique technology for South Africa Unique operating parameters Evaluation of project from a safety perspective –Agreeing on standards –Acceptance of the risk management processes, including risk assessments and risk control strategies Expertise to be acquired for the above

16. 16 6. High Safety Risks Level Crossings People struck by trains Dangerous goods Security

17. 17 7. MTEF Budget Current provisions for RSR inadequate 2005/06: –Allocated: R 20.00m; 2006/07: –Allocated: R 21.20m; 2007/08: –Allocated: R 22.26m;

18. 18 Organisational Matters Strategic Plan approved by board Organisational Structure approved (59 positions) Executives appointed: 6 Other positions: 7 Critical positions advertised: 26 positions Board: 2 vacancies; organised labour, financial expert Interim Policies developed –HR –Procurement –Finance

19. 19 Organigram

20. 20 Financial Status of RSR 2003/042004/052005/06 R’000 Grants10,00015,00020,000 Expenditure2,7636,573--------- Surplus7,2378,427--------- Add surplus7,23715,664 Cash available (31 March 2005 35,664

21. 21 Auditor-General’s findings (04/05) and corrective measures taken. No internal audit function Processing an appointment of internal auditing service as an outsourced function. Procurement policy not compliant with supply chain management framework Currently aligning policy.

22. 22 Auditor-General’s findings (04/05) and corrective measures taken. Proper asset control not adhered to A asset register system has been created. No prior written approval from NT on accumulated surplus funds Request for ex-post facto approval from NT.

23. 23 Auditor-General’s findings (04/05) and corrective measures taken. No materiality framework developed. Materiality framework in place.

24. 24 Auditor-General’s findings (04/05) and corrective measures taken. Exp not in accordance with approved budget. Budget control measures have been put in place (cost centres created, created budget control position) Annual report not submitted (03/04) Report submitted and tabled in Parliament.

25. 25 Auditor-General’s findings (04/05) and corrective measures taken. Audit committee composition not meeting requirements. Established a properly constituted audit committee. Quarterly reports excluded extent of compliance with PFMA Reports to adhere to requirements.

26. 26 Auditor-General’s findings (04/05) and corrective measures taken. Audit committee composition not meeting requirements. Established a properly constituted audit committee. Quarterly reports excluded extent of compliance with PFMA Reports to adhere to requirements.

27. 27 Auditor-General’s findings (04/05) and corrective measures taken. No risk assessment conducted Part of the TOR for the internal audit function. Quarterly reports excluded extent of compliance with PFMA Reports to adhere to requirements.

28. 28 State of Safety Information captured on preliminary data base (forerunner to NIMS) Occurrences captured in 12 categories Trends are indicative, but not absolute Selected a sample of indicators as examples of trend analyses to be done

29. 29 Level Crossing Occurrences Inconsistent application of signage and warning devices Accountabilities ill defined Propose to create a working group to develop regulations

30. 30 Level Crossings Illegal level crossings Inconsistent standards Preliminary stats: –2003/04: 161 incidents –2004/05: 171 incidents

31. 31 People struck by trains Informal settlements Inadequate provision of access across tracks Community awareness programmes Regulations to control informal settlements posing threat to safety 2003/04: 582 2004/05: 455

32. 32 Unlawful occupation of land Track integrity undermined OHTE cables stolen Dangerous for both occupants and train operations

33. 33 Walking on the tracks Need safety included in schools curriculum Access across tracks not available?

34. 34 Informal Settlement Left hand line abandoned Propose community awareness programmes Financial assistance?

35. 35 Security Related Includes personal safety occurrences and asset related occurrences Propose Co-operative Agreement with SAPS to focus on security occurrences that focus on safety and vice versa Act focuses on safety, but recognises there is a relationship between Safety and Security 2003/04: people related: 400 asset related: 2016 2004/05: people related: 577 asset related: 2166

36. 36 Fencing Children next to line No fencing Community awareness programmes

37. 37 Informal Settlement Left hand line abandoned Propose community awareness programmes Financial assistance?

38. 38 Security Related Includes personal safety occurrences and asset related occurrences Propose Co-operative Agreement with SAPS to focus on security occurrences that focus on safety and vice versa Act focuses on safety, but recognises there is a relationship between Safety and Security

39. 39 Safety and Security Holding Doors open Hanging out of train

40. 40 Safety and Security Holding doors open –Damages mechanism –Dangerous –Allows criminal element to throw people off trains

41. 41 Collision Rate Indication of a parameter that will be measured Not benchmarked Increase in rate may be attributable to improved reporting and not more occurrences

42. 42 Derailment Rate (Passengers) Indication of a parameter that will be measured Not benchmarked Decrease indicated

43. 43 Derailment Rate (Freight) Indication of a parameter that will be measured Not benchmarked

44. 44 Freight train derailment Challenge is to determine root causes: –Management system failure –Human factors Training Working conditions Attitude Etc. –Technical failure Maintenance –Loading error –other

45. 45 Dangerous Goods

46. 46 Dangerous Goods

47. 47 Dangerous Goods

48. 48 Safe and Secure!

49. 49 Conclusion and Commitment Challenges have been identified Task is immense but not impossible provided: –We appoint suitable staff –The industry continues to support the RSR –Required funds are made available We commit the RSR to meet the challenges