1. The Gauteng Economic Indaba Transport and Logistics Mr Piet Sebola Group Executive Strategic Asset Development Date: 09 th June 2016

2. Transport and Logistics – context for discussion 1  The impact of Urbanisation - Gauteng  The Solution  The Current State of Transport  Cost of Transport  Key Considerations

3. The current state of transport 2 How do people commute?  Over a 10 year period, there has been an increase towards using cars instead of other modes of transport  And even within 38.8% public transport, 87% is road based public transport Source: National Household Travel Survey, 2013

4. Gauteng’s Public Transport Trips – Model Split 3 Gauteng There is a small shift towards busses and trains within public transport Increase in accessibility due to initiatives such as Rapid Bus System, Gautrain and Metrorail Source: National Household Travel Survey, 2013

5. Cost of Transport 4 South Africa has one of the highest costs of transport in the world Even higher than other developing countries Over 70% of South Africans spend at least 30% of their income on transport

6. Cost of Transport 5 Best Practise is 10% Developed countries generally at 5-7% Over 70% of South Africans spend at least 30% of their income on transport

7. Cost of Transport 6 Over 70% of South Africans spend at least 30% of their income on transport Lost Productivity made worse by Spatial Disparity Commuters live on the urban fringes which translates into longer commute times (over 47% of commuters report travel times as much as 90 min) High travel cost leads to an inability to access social, leisure and economic opportunities

8. Urbanisation 7 Today over 40% of South Africans live in cities with a population of > 1 million SA Urban population is doubling every 20 years Gauteng 25 Year Integrated Master Plan, 2013: Population in Gauteng is expected to increase from 12.3 million to 18.7 million (+50%) in the next 25 years Urbanisation progressing at breakneck speeds, especially in developing countries 3% of world’s population lived in cities in the 1800s 30% by 1950 50% today 60-65% (2 out of 3 people) by 2030

9. Gauteng Global City Region 8 Rate of urbanisation and growth projections for Gauteng highlights the need for sustainable transport solutions Current trends indicate increase in car trips and ownership. o the doubling of vehicle ownership since 1994 o almost half of South Africa’s vehicle population is concentrated in Gauteng The bulk of public transport is road based (buses and taxis) – the increasing congestion on the road network contributes to an ineffective public transport system Urban sprawl contributing to the cost of providing transport

10. Capacity for modes of transport 9

11. The solution 10 No coincidence that we see revival of rail throughout most of the world New rail expansion projects Upgrading and modernisation of existing rail systems Rail technology advancements Rail benefits cannot be ignored; increased capacity, environmentally friendly, less land required, permanence / attract investment, reduce car & fuel reliance, less traffic congestion, drives growth Rail as the back bone of transport

12. Gauteng Global City Region – Rail City 11 Benefits: cities with large, well established rail systems have significantly; o higher per capita public transport ridership, o lower average per capita vehicle ownership and annual kms, o less traffic congestion, o lower traffic death rates, o lower household expenditures on transportation, and o higher public transport service cost recovery than otherwise comparable cities with less or no rail services. This indicates that rail systems provide economic, social and environmental benefits, and these benefits tend to increase as a system expands and matures Benefits: cities with large, well established rail systems have significantly; o higher per capita public transport ridership, o lower average per capita vehicle ownership and annual kms, o less traffic congestion, o lower traffic death rates, o lower household expenditures on transportation, and o higher public transport service cost recovery than otherwise comparable cities with less or no rail services. This indicates that rail systems provide economic, social and environmental benefits, and these benefits tend to increase as a system expands and matures Todd Litman, VTPI, 2012 Current Constraints in South Africa: Progress in achieving the benefits has not yet materialised: o Lack of Accessibility o Lack of Integration o Underdeveloped rail system

13. Revival of Rail in South Africa 12 Rail Transport GautrainPRASATransnet PRASA investment ~R 172 billion Transnet investment ~R 300 billion Expansion plans into Gauteng

14. Key considerations 13 Critical supporting elements / measures: o Modal integration (feeder networks such as taxi’s at stations, infrastructure, ticketing etc.) o Travel Demand Management measures to 1) redirect travel demand to public transport and Non Motorised Transport, 2) reduce demand for single / low occupancy car travel Physical (Infra): PT Lanes, Park & Ride, NMT facilities (bicycle lanes, etc) Regulatory: Parking supply restrictions, staggered working hours Pricing: review fare levels, subsidies, car taxes, parking charges, road tolls, fuel tax, congestion charging, concessions o Land use and transport integration: better integrated through processes of land use densification, infill development and Transit Oriented Development along public transport network, rail in particular

15. End – Thank You The FUTURE of South African Passenger Rail is here! 14