1. NMBM INTEGRATED PUBLIC TRANSPORT SYSTEM OVERVIEW
ACTING PROJECT MANAGER : MR LUTHANDO MABHOZA
Date: SEPTEMBER 2017

2. NMBM INTEGRATED PUBLIC TRANSPORT SYSTEM
PROJECT OVERVIEW AND FINANCIAL STATUS
MASTER PROGRAMME & PROGRESS STATUS UPDATE
RISK MANAGEMENT
IMPROVEMENTS ON IMPLEMENTATIONS
CHALLENGES
UNIVERSAL ACCESS AND INTEGRATED TICKETING SYSTEM
FUTURE OF IPTS

3. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
In 2004, the Public Transport Plan (PTP) was compiled as a part of a CITP as required by the National Land Transport Transition Act (NLTTA, 2000)
In 2010, limited IPTS launched to provide for the public transport needs of the 2010 FIFA World Cup
, the proposals of the PTP were further developed into draft Operational Plans. The Operational Plan proposed 5 contract areas as listed below:
Cleary Park
Njoli
Motherwell
Uitenhage
Western Suburbs

4. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
April 2012, planning and construction of additional infrastructure to operate a pilot service was initiated.
January 2013, pilot services were launched on seven routes (5 in Port Elizabeth and 2 in Uitenhage).
January 2013, construction of the roadway civil works started in the Cleary Park Contract Area (trunk & main routes), portions of the Njoli Contract Area (trunk route) and Western Suburbs (Termini).
January 2014, project steering committee was re-established followed by the establishment of the relevant project workstreams.
February 2014, operational planning for the starter services for Cleary Park , Njoli and Western Suburbs Contract Areas commenced and were completed in June 2015
December 2015 a scaled-down approach (Starter Service) was adopted with operations anticipated in July 2016, which has since moved to October 2017.

5. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
Contract Area’s
1 Motherwell
2 Njoli
3 Cleary Park
4 Western Suburbs
5 Uitenhage CBD

6. 1. PROJECT OVERVIEW AND FINANCIAL STATUS

7. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
Area Route 347:
Route Length: km
Fleet: 15 Mini-bus
Passenger Trips: 2 000/ day
Area Route 341:
Route Length: km
Fleet: 22 Mini-bus
Passenger Trips: 3 000/ day
Area Route 340:
Route Length: km
Fleet: 24 Mini-bus
Passenger Trips: 2 000/ day
Trunk Route 30:
Route Length: km
Fleet: 18 Artic. Buses
Passenger Trips: / day
Future Extension to University (2017/2018)
Bus Lanes and Platforms Constructed (11.97 km)

8. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
Area Route 244:
Route Length: 3.95 km
Fleet: 8 Mini-bus
Passenger Trips: 3 000/ day
Area Route 257:
Route Length: 3.56 km
Fleet: 8 Mini-bus
Passenger Trips: 3 000/ day
Bus Lanes and Platforms Constructed (5.8 km)
Future Extension to University (2017/2018)

9. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
WESTERN SUBURBS

10. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
UITENHAGE-KWANOBUHLE

11. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
LINK WITH BUILT ENVIRONMENT PERFORMANCE PLAN (BEPP)

12. LINK WITH BUILT ENVIRONMENT PERFORMANCE PLAN (BEPP)
UNS: Major Movement Directions
R335
R334 MW
CDC U
JVT MM UD D
R368
Legend
R102
Metro Boundary
R334
R75 IB
R367
Urban Edge
Existing Rail
Future Rail
National Road (N2)
Primary Roads DP SD
Metropolitan CBD
Sub-Metropolitan Nodes
R102 GB
Township/ Urban Clusters N2 NE
Development
Areas
R102
Directional Flow on N2
PE CBD
Directional Flow to and from
Suburban areas
M12 M9 M7 WM M9 12

13. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
Urban Network Strategy Framework
LINK WITH BUILT ENVIRONMENT PERFORMANCE PLAN (BEPP)

14. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
ALLOCATIONS TO DATE
Year
PTIS Grant
PTI Grant
PTNO Grant
PTN Grant
Cumulative Amount
2005/06
R53,650,000
2006/07
R68,600,000
R122,250,000
2007/08
R131,200,000
R253,450,000
2008/09
R305,484,000
R558,934,000
2009/10
R147,079,000
R706,013,000
2010/11
R408,333,000
R1,114,346,000
2011/12
R340,000,000
R1,454,346,000
2012/13
R289,702,000
R1,744,048,000
2013/14
R357,021,962
R100,000,000
R2,201,069,962
2014/15
R130,000,000
R2,431,069,962
2015/16
R186,128,000
R2,617,197,962
2016/17 R0
Total
R457,021,962
R230,000,000
R116,755,311

15. 1. PROJECT OVERVIEW AND FINANCIAL STATUS
EXPENDITURE TO DATE
Year
Expenditure
Cumulative Expenditure
2005/06
R 766,079
2006/07
R 33,156, 765
R 33,922,844
2007/08
R 66,228,928
R 100,151,772
2008/09
R 178,943,521
R 279,095,293
2009/10
R 427,719,916
R 706,815,209
2010/11
R 260,063,223
R 966,878,432
2011/12
R118,289,226
R 1,085,167,658
2012/13
R 360,725,806
R 1,445,893,464
2003/14
R 447,553,740
R 1,892,447,204
2014/15
R 237,283,000
R 2,130,730,204
2015/16
R 36,677,707
R 2,167,407,911
2016/17
R93,100,000
R 2,260,507,911
Surplus (Returned to National Treasury)
R 356,690,051

16. PROJECT OVERVIEW AND FINANCIAL STATUS
DORA gazetted MTEF ALLOCATIONS
2017/18 – R
2018/19 – R
2019/20 – R

17. IPTS Financial Summary
2017/18
2018/19
2019/20
2020/21
R ‘000
Budgeted rates income
1,882,347
2,091,299
2,294,414
2,512,383
Estimated IPTS Fare Revenue
13,814
19,524
50,212
53,726
Estimated direct operating costs
35,725
50,491
93,576
99,191
Estimated indirect operating cost
43,929
51,400
81,663
86,563
Deficit/Surplus
-21,911
-30,967
-43,365
-45,464
City contribution to direct operating costs
21,911
30,967
43,365
45,464
City contribution to indirect operating costs (30% - 50%)
11,319
13,448
32,000
33,920
Estimated total city contribution
33,229
44,415
75,365
79,385
Estimated Percentage contribution from rates bill
1.8%
2.1%
3.3%
3.2%
PTNG contribution to indirect operating costs (70% - 50%)
32,610
37,951
49,663
52,643
PTNG contribution business development costs (100%)
14,000
16,520
22,191
23,523
PTNG contribution to capex
220,437
336,794
254,083
153,359
Total PTNG envelope
273,297
234,360
246,874
329,457

18. 2. MASTER PROGRAMME & PROGRESS STATUS UPDATE
Starter Service
Description
Launch Date
Phase 1A
Cleary Park to PE CBD Trunk Route
2017/18
October 2017
Phase 1B
Njoli to PE CBD
2018/19
Phase 1C
PE CBD to NMMU
Phase 1D
KwaNobuhle to Uitenhage CBD
2019/20

19. 2. MASTER PROGRAMME & PROGRESS STATUS UPDATE
Item
Cleary Park
Njoli
Western Suburbs
Uitenhage
2017/18
2018/19
2019/20
2020/21
2021/22
Distance to be covered by all starter service Phases
42.24 km
19.31 km
19.26 km
36.69 km
Max passengers per day
6 918
7056
7 380
6 000
12 000
Estimated travel time(one way)
40 min
39 min
33.5 min
27 min
Ticketing method
Interim Paper ticket to be changed to EMV in 2019/20
AFC: EMV compliant
Universal Design
The plan is prepared and will be updated in 2017/18/19 financial years
Operating Licence to be surrendered
100 16 38 79

20. 2. MASTER PROGRAMME & PROGRESS STATUS UPDATE
4 stations planned for construction in 2018/19, these will be phased depending on demand
Anticipated jobs to be created by transforming the PT operators:
Permanent and shift drivers
Ambassadors
Cleaning and maintenance workers at depots etc.
A call for proposal for a socio economic impact including environmental impact study will be developed this financial year

21. RISK MANAGEMENT Item Risk Mitigation Measure 1
Financial management of OPEX
NMBM is setting up systems and tools to do away with mismanagement of funds and also improve on accountability. 2
Financial management of CAPEX
Procurement policy adhered to, limit deviations 3
Revenue Increase
Alternative sources of revenue will be investigated once system is operational 4
Delays in negotiation process
The NMBM is continuously engaging with the operators and specialist capacity has been brought into the team to assist with negotiations, however, it may be necessary to consider mediation processes for effective negotiation when / if required. 5
Operator Business Model
The NMBM is continuously engaging with the operators and specialist capacity has been brought in to assist with negotiations, continuous negotiations with VOC

22. 3. RISK MANAGEMENT Item Risk Mitigation Measure 6
Delays in procuring trunk vehicles
Funding insufficient to procure in the 2017/18/19. Projections done for 2019/20 for procurement of vehicles. Vehicle specifications will be developed in 2nd half of 2018/19 7
Institutional capacity
An interim “TO BE” organisational structure for the Sub Directorate was submitted and approved by Council.
Recruitment process commenced and anticipated to be completed by end Sept 2017 8
Signage Improvements
Undertaken as part of the infrastructure development or upgrade process 9
Customer feedback
Transport Operational Centre will be operational prior to start of operations in Oct 2017 10
Accident rates and law enforcement
Safety and Security Plan currently under review 11
Reporting to NT
Monthly, quarterly and annual evaluation report. (bilateral meetings, Cities Forum)

23. 4. IMPROVEMENTS ON IMPLEMENTATIONS
Lessons learnt from pilot are currently implemented
Negotiations with affected operators and not secondary co-ops
Recommissioning of Integrated Transport Operational Centre i.e monitoring
Improve on Marketing and communications plan
Reduced operations and respond to demand
Resource requirements for the implementation of the project
Improved negotiation strategies with operators

24. 5. CHALLENGES
Procurement Issues
The delays in the procurement of services for the planning and implementation of the IPTS have impacted negatively on the overall progress of the project.
Institutional Capacity (External technical support / Consultants)
Professional support services for the IPTS is a great challenge linked to procurement.
Negative perception of the project
Land Use-Transport Integration
Limiting peripheral development to reduce longer travel distance
Intensified integrated planning PRASA, ECDoT etc
Funding requirements to complete critical projects

25. 6. UNIVERSAL ACCESS AND INTEGRATED TICKETING SYSTEM
Universal Access Strategy developed during 2013/14 and will be revised for the starter service once consultants are appointed
The initial fare system to be used is paper based
Tender for the EMV compliant system is being revised
Interoperability will be tested with PRASA Motherwell -PE CBD rail operation initiative in 2018/19/20

26. COORDINATION WITH PRASA
PHASE 1

27. RECENT ACHIEVEMENTS

28. END!
THANK YOU