1. October 2014 RAILWAY SAFETY 2013/14 FINANCIAL YEAR PRESENTATION TO PORTFOLIO COMMITTEE 1

2. STRUCTURE OF PRESENTATION 2 A:KEY ACHIEVEMENTS B:KEY CHALLENGES C:RAILWAY SAFETY ANALYSIS – 2013/14 STATISTICS D:FINANCIAL PERFORMANCE E: CONCLUSION

3. 3 FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK IMPLEMENTATION OF THE PENALTY REGULATION Revised Regulation was implemented in the 2013/14 FY Penalties issued to 36 operators for non-compliance BOARDS OF INQUIRY (BOIs) Two BOI’s were conducted: The Cor Delfos-Kalafong train collision and the Hectorspruit Level Crossing collision SAFETY AUDITS, INSPECTIONS & INVESTIGATIONS Target of 68 Audits exceeded Target of 90 inspections achieved Target of 20 Investigations exceeded A.2013/14 FY KEY ACHIEVEMENTS

4. 4 FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT. SAFETY STANDARDS Standards developed: Inter-operability, Interface and Intra-face Management Standard; Railway Stations Standard. Standards amended: Technical Requirements for Engineering and Operational Standard: General; Railway Safety Management Standard: General; Technical Requirements for Engineering and Operational Standards: Track, Civil and Electrical Infrastructure; Technical Requirements for Engineering and Operational Standards: Rolling Stock. A.2013/14 FY KEY ACHIEVEMENTS

5. 5 FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT. RAILWAY SAFETY EDUCATION & AWARENESS CAMPAIGNS Level Crossing awareness campaign held in Koelenhof, Cape Town (where the highest number of level crossing incidents in the Western Cape were recorded) Safety awareness campaigns conducted in Noupoort and Daveyton (Gauteng) during Transport Month in October 2013 A.2013/14 FY KEY ACHIEVEMENTS

6. 6 IMPROVED TRAIN COMMUNICATION SYSTEMS TO REDUCE PASSENGER TRAIN COLLISSIONS Outcomes of accident investigations at Koderlfos highlighted issues of train communication systems as a major causal factor within the Metrorail system RSR issued a directive for the installation of trunk radios in all passenger trains Follow up investigations were conducted countrywide to ensure compliance Compliance increased from 40% to 85% by end of 2013/14 FY. A tender was issued to ensure 100% compliance with the directive FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT. A.2013/14 FY KEY ACHIEVEMENTS

7. 7 FACILITATING & ENFORCING AN EFFECTIVE REGULATORY FRAMEWORK CONT. TECHNOLOGY MANAGEMENT PRASA’s specification for the new rolling stock reflects best safety practices TFR to maintain compliance with relevant national standards for some of its Heavy Haul Line expansion projects STRATEGY TO REGULATE SUPPLIERS OF SAFETY CRITICAL SYSTEMS, COMPONENTS & SERVICES The development of a regulatory arrangement that is able to recognise the capability and competence of suppliers of railway safety critical systems and services A.2013/14 FY KEY ACHIEVEMENTS

8. 8 PROMOTING THE ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION OCCURRENCE INVESTIGATIONS RSR assisted TransNamib Holdings Ltd (TNHL) in conducting BOI investigations GOBA CORRIDOR LEVEL CROSSING ASSESSMENT Participation in the Level Crossing Risk Assessment in the Goba Corridor Assessment assisted CFM (Mozambique Railways) in deciding on the construction of a new bridge instead of repairing the existing one A.2013/14 FY KEY ACHIEVEMENTS

9. 9 PROMOTING THE ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION CONT. SARA DANGEROUS GOODS HANDBOOK Handbook for guiding SADC Railways in the handling and transportation of Dangerous Goods by rail Hosted a technical training on the transportation of Dangerous Goods with SARA members TRAINING: HUMAN FACTORS MANAGEMENT STANDARD SARA 003 Human Factors Management Standard A.2013/14 FY KEY ACHIEVEMENTS

10. 10 ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION CONT. CO-OPERATIVE AGREEMENTS 11 Agreements implemented with the following organisations: Chemical and Allied Industries’ Association (CAIA); Department of Mineral Resources (DMR); Department of Labour (DOL); Heritage Railway Association of Southern Africa (HRASA); National Nuclear Regulator (NNR); Road Traffic Management Corporation (RTMC); South African Bureau of Standards (SABS); South African Police Service (SAPS); and Transport Education and Training Authority (TETA) A.2013/14 FY KEY ACHIEVEMENTS

11. 11 ALIGNMENT OF RAILWAYS IN SA AND THE SADC REGION CONT. CO-OPERATIVE AGREEMENTS 3 Agreements concluded with the following organisations and various engagements took place during the year under review. Partnerships with these organisations are important for the RSR to carryout its full mandate. Department of Cooperative Governance (COGTA); Department of Environmental Affairs (DEA); Rail-Road Association of South Africa (RRA); A.2013/14 FY KEY ACHIEVEMENTS

12. B.2013/14 FY KEY CHALLENGES 12 FINANCIAL CONSTRAINTS Directive from DoT to reduce safety permit levies for the 2013/14 FY resulted in a deficit of R5 million with the following consequences: Non-achievement of the following targets: 2013/14 Annual Railway Safety Conference; establishment of a Call Centre; development of a High Speed Rail Standard; and development of four Regulations Non-implementation of the RSR’s BBBEE Strategy Vacant critical posts, especially in the regions, could not be filled

13. Top 5 Occurrence Categories as % of Total Number: Category A: Collisions during movement of rolling stock (21%) Category B: Derailments during movement of rolling stock (16%) Category E: People struck by trains during movement of rolling stock (13%) Category H: People related occurrences: platform- train interchange (16%) Category L : Fires (12%) C.2013/14 STATE OF SAFETY OPERATIONAL OCCURRENCES

14. C.2013/14 STATE OF SAFETY – OPERATIONAL OCCURRENCES

15. FATALITIES / INJURIES

16. 13% Increase from previous reporting period Top 5 Security Incident Categories as % of Total Number: Category 1 : Theft of assets impacting on operational safety (65%) Category 2 : Malicious damage (vandalism) to property impacting on operational safety (22%) Category 7 : Personal safety on trains (6%) Category 8 : Personal safety on stations (5%) Category 9 : Personal safety outside station platform area (in section between stations, including yards, sidings and depots) (1%) SECURITY INCIDENTS C.2013/14 STATE OF SAFETY

17. SECURITY INCIDENTS C.2013/14 STATE OF SAFETY

18. SECURITY INCIDENTS – FATALITIES / INJURIES

19. 5% Increase in TFR direct railway costs of occurrences and security-related incidents 22% Decrease in PRASA Rail direct railway costs of occurrences and security-related incidents COST OF OCCURRENCES / INCIDENTS C.2013/14 STATE OF SAFETY

20. Areas of concern The existence of gaps on platforms Level crossing incidents People struck by trains Lack of management of the rail reserve Security at / around stations SARPS recovered R 1 041 846.50 worth stolen cables SARPS arrested 14 903 persons for crossing a railway track without authorization C.2013/14 STATE OF SAFETY

21. CASH FLOWS FROM OPERATING ACTIVITIES: RECEIPTS D.2013/14 FINANCIAL PERFORMANCE

22. Statement of financial performance for the year ended 31 March 2014 20142013 RR Revenue 110 463 040 78 295 755 Revenue from non-exchange transactions 46 513 000 39 349 000 Revenue from exchange transactions 57 918 700 38 414 123 Other Income 270 044 382 895 Penalties 5 480 001 - Investment income 281 295 149 737 Expenditure (107 543 074) (81 554 679) Staff costs (65 060 023) (53 983 711) Depreciation, amortisation and write-offs (1 601 690) (1 658 797) Other operating expenses (22 258 176) (11 492 217) Administrative expenses (18 623 093) (14 383 215) Finance costs (92) (36 739) Surplus/(Deficit) for the year 2 919 966 (3 258 924)

23. D.2013/14 FINANCIAL PERFORMANCE These financial statements were evaluated for both content and quality by the Audit Committee and approved by the Board of Directors for submissions to the Auditor General. AUDITOR GENERAL’S OPINION “In my opinion, the financial statements present fairly, in all material respects, the financial position of the Railway Safety Regulator as at 31 March 2014 and its financial performance and cash flows for the year ended, in accordance with GRAP and the requirements of the PFMA”

24. D.REVENUE VS EXPENDITURE TRENDS Years2009/102010/112011/122012/132013/14 Revenue 47 863 47 853 59 532 78 295 110 463 Grant Income: 37 260 35 634 37 475 39 349 46 513 Safety Permits 10 506 12 200 20 596 38 414 57 919 Other Income 97 19 1 461 532 6 031 Expenditure 49 356 47 540 56 059 81 452 107 542 Staff 29 429 32 658 39 928 53 983 65 060 Goods & Services 19 927 14 882 16 131 27 469 42 482 Net Surplus/Deficit -1 493 313 3 473 -3 158 2 920

25. D.REVENUE VS EXPENDITURE TRENDS

26. E.CONCLUSION Our strategic goal as the Railway Safety Regulator is to have zero occurrences in the rail industry. With all our stakeholders and strategic partners, we will work tirelessly until this goal is achieved. 26

27. THANK YOU Q & A 27