2. PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES (NATIONAL COUNCIL OF PROVINCES). 02 SEPTEMBER 2008 NATIONAL RAILWAY SAFETY REGULATOR AMENDMENT BILL, (B32B-2008) 1

3. Department of Transport The National Railway Safety Regulator Amendment Bill, seeks to amend the National Railway Safety Regulator Act (“the principal Act”), (Act No. 16 of 2002). The principal Act establishes the Railway Safety Regulator (“the Regulator”) The Regulator is responsible for overseeing safety of railway operations and to promote rail as an efficient mode of transport. The principal Act needs to be amended so as to be inline with the current developments. 2 BACKGROUND

4. Department of Transport OBJECTS OF THE BILL 3 To amend the principal Act, 2002 so as to amend certain definitions and to insert others; To extend the ambit of a threat to safety to include behaviour; To empower the Minister to include monorail systems, trams, systems running on pneumatic tyres within the ambit of the Act. To empower the Regulator to exempt railways;

5. OBJECTS OF THE BILL (CONTI…) To clarify that operators remain responsible for railway safety; To clarify that the Regulator is responsible for the promotion of railway safety; To empower the Regulator to enter into informal arrangements with role players; To clarify the role of the operator associations; To clarify the role of the Regulator in relation to the transportation of dangerous goods by rail; 4

6. OBJECTS OF THE BILL (CONT…). To revise the provision regarding the terms and conditions of service of the Chief Executive Officer (“CEO”); To require the Regulator’s annual report to be submitted within five months after the financial year end; To provide that the Board approves the conditions of service of staff members; To empower the CEO to delegate his or her powers and duties; 5

7. OBJECTS OF THE BILL (CONT…) To extend the Regulator's funds to include penalties and fees for providing services and other prescribed sources; To provide that the Regulator may charge fees for administering safety permits; To clarify the types of permits in connection with which standards may be imposed; To empower the Minister to make regulations to adopt and accept existing standards as well as to develop new ones; To empower the CEO appoints inspectors; 6

8. OBJECTS OF THE BILL (CONT…). To empower inspectors to audit, inspect and investigate the transportation of dangerous goods prior to their transportation by rail should a railway occurrence happens; To provide that operators investigate railway occurrences and to empower the Regulator to take steps if they fail to do so; To empower the Board of the Regulator to subpoena witnesses and documents in connection with investigations; To enable the Minister to make regulations for the payment of penalties by operators who default; and To provide for matters connected therewith. 7

9. CLAUSE BY CLAUSE EXPLANATION OF THE AMENDMENT BILL 8

10. CLAUSE ONE (DEFINITIONS) The definition of “dangerous goods” is amended to remove specific reference to SABS 0228 to take care of possible future changes to the SABS standards. The definition of “integrity’’ has been inserted in the definitions and shall mean a condition in which individual components of a system and the total system are unified, consistent and are fit for the purpose. 9

11. CLAUSE ONE (DEFINITIONS) CONT….. The definition of “network operator” has been substituted for a new definition. The amendment provide more clarity and broadly for the responsibilities of such operators and to include the authorization and direction of train movements which previously fell under the responsibilities of the “train operator” The definition of “treat to safety”has been amended to by substitution of the words [hazard or] for the words hazardous and addition of the word or behaviour. 10

12. CLAUSE ONE (DEFINITIONS) CONT… Definition of “station” is amended to make it clear that station only refers to places where passengers alter or leave trains and to include model exchange and commercial and retail premises for the purpose of crowd management and security. The definition of “train operator” is amended to exclude the responsibility to control movement of rolling stock, which is the responsibility of the network operator. 11

13. APPLICATION OF ACT (SECTION 3) -Clause 2 amends section 3 of the principal Act in order to provide that the Minister may declare a system with a track gauge of less than 600mm as a railway for purposes of the Act. -The amendment also allows for the Regulator to exempt a railway from compliance with the Act in consultation with the Minister; -The amendment empowers the Minister to include monorails, trains and fixed rail or track systems running on pneumatic tyres. 12

14. Department of Transport Clause 3 amends section 5 by substitution for paragraph (a) and (b) for new paragraph (a) and (b) The amendments clarify that operators remain responsible for railway transport safety and that the function of Regulator is to promote, improve safety performance in the railway transport industry in order to promote the use of rail as a mode of transportation. OBJECTS OF THE REGULATOR (SECTION 5) 13

15. Department of Transport CO-OPERATIVE GOVERNANCE (SECTION 6) Clause 4 amends section 6 of the principal Act by substitution of subsection 2 for a new subsection 2. The amendment empower Regulator to conclude an appropriate co-operative agreement or conclude arrangement with every relevant organ of the State to give effect to the co-operation contemplated in subsection (1). 14

16. Department of Transport Clause 5 amends section 7 of the principal Act by the substitution in subsection 1 for paragraph (b) The amendment imposes a duty on the Regulator to oversee safety in relation to transportation of dangerous goods by rail, conducting of audit, inspections and investigation. The amendment provides that a recognized operator organization will collaborate with the Regulator in general terms and not act on its behalf in developing standards. Subsection (2) is amended by the substitution of paragraph (n). The sub paragraph impose a duty on RSR to oversee occupational health and safety matters that impact or have potential impact on the safety of railway operations. 15 FUNCTIONS OF THE REGULATOR (SECTION 7)

17. CEO OF THE REGULATOR (SECTION 9) Clause 6 amends section 9 of the principal Act by providing that the Minister of Finance will no longer play a role in determining the terms and conditions of the CEO. The amendment also provides that Regulator should submit the annual report to the Minister within 5 months after the end of the financial year rather than three. This is to make the principal Act to be in line with Public Finance Management Act (PFMA). 16

18. Department of Transport STAFF TO THE REGULATOR (SECTION 10) Clause 7 amends section 10 of the principal Act by empowering the CEO to appoint the staff of the Regulator. The amendment also provides that the terms and conditions of service of the staff are determined by the Board. 17

19. 18 Clause 8 amends section 11 of the Act in order to provide that the CEO may delegate her/his functions to RSR staff members. This was omitted from the principal Act DELEGATION AND ASSIGNMENT BY BOARD (SECTION 11)

20. FUNDS OF THE REGULATOR (SECTION 17) Clause 9 amends section 17 of the principal Act by the substitution for subsection 1 for a new subsection (1) The amendment provides that the Regulators’ fee will include the penalties payable in terms of regulations made under section 45A(1) and fees for services relating to providing training and advice or fees from any other source determined by the Minister. 19

21. AMENDMENT OF SECTION 22 Clause 10 amends section 22 of the Act by substitution of subsection (1) for a new subsection (1) The amendment only delete [a] and adds the words an applicable after the words in possession. Subsection (2)(d) is amended to by deletion of the words being [eligible for]and addition of the word requiring. 20

22. AMENDMENT OF SECTION 23 Clause 11 amends section 23 by substitution of subsection (2) for a new subsection (2). The amendment empower the Minister to annually determine fees that the Regulator must charge for safety permits. The amendment further clarifies that fees may differ from various operators and applications for safety permits should be accompanied by non refundable application fee. 21

23. AMENDEMENT OF SECTION 24 Clause 12 amends section 24 in order to make it clear that standard conditions applicable to safety permits do not have to be categorized according to the categories mentioned in section 22(1), but that they may differ according to types of permits as well. 22

24. AMENDMENT SECTION 28 Clause 13 amends section 28 by empowering the Regulator to determine the form and content, the manner of submission the circumstances under which the safety management system or report may be required by the Regulator to be revised or amended. 23

25. AMENDMENT OF SECTION 29 Clause 14 amends section 29 of the principal Act in order to empower the Minister to make regulations; To adopt existing standards and develop new standards. 24

26. AMENDMENT OF SECTION 30 Clause 15 amends section 30 by substitution of paragraph (a). The amendment only added the words or operation after the words proposed construction. 25

27. AMENDMENT OF SECTION 32 Clause 16 amends section 32 in order to empower the CEO rather than the Minister to appoint railway safety inspectors 26

28. AMENDMENT OF SECTION 33 Clause 17 amends section 33 by addition of subsection 4 and 5 after subsection 3. The new subsections empower the railway safety inspectors to investigate, audit, inspect an occurrence, non compliance or an activity that may disturb the safe transportation of dangerous goods despite the fact that the events leading to an occurrence may have taken place prior to the actual occurrence. 27

29. AMENDMENT OF SECTION 38 Clause 18 amends section 38 of the principal Act in order to provide that operators must conduct investigation regarding railway occurrence. The amendment places a duty on operators to investigate railway occurrence. The operators are now required upon request to furnish the reports of their investigation to the Regulator. The amendment also empowers the Board in conducting investigation to summon witnesses to appear before it; produce any document as proof. 28

30. AMENDMENT OF SECTION 40 Clause 19 amends section 40 of the Act by empowering the Regulator to request information from persons for any related activities, rather than only for the purpose of information and monitoring systems 29

31. AMENDMENT OF SECTION 44 Clause 20 amend section 44 of the Act by reducing the time frame for lodging a notice of intention to appeal from 60 days to 21days. The amendment requires an appellant to set out the grounds for appeal and lodge the appeal within 30 days for the date of his / her notice of intention to appeal. 30

32. INSERTION OF SECTION 45A Clause 21 amends section 45 by insertion of a new section 45A The new section 45A empowers the Minister to make regulations that impose penalties for the purpose of non compliance with this Act. To enable RSR to impose penalties where operators fail to comply with standards or requirements imposed under the Act or with permit conditions. 31

33. SECTION 22 This Act will be called the National Railway Safety Regulator Amendment ACT, 2008 and shall come into operation by Proclamation of the President. 32

34. CONSULTATION The members of the public were consulted by publishing the amendment Bill in the Government Gazette No 30756 of 2008 The Bill was also directly forwarded to the following institutions for comment (a)Ingwe Collieries; (b)City of Tshwane; (c)Moqhaka Municipality – Kroonstad; (d)Spoornet;and (e)Transnet. 33

35. CONSULTATION (CONT…). (e) Metro Rail/SARCC; (f) Chairman of Heritage Railway Association; (g) South African Port Operations Head Office; (h) African Rail & Traction; (i) Rovos Rail; (j) Sandstone Heritage Trust; and (k) Umngeni Steam Railway. Comments were received from other stakeholders and were where necessary incorporated in the Bill. 34

36. REQUEST We request the Select Committee on Public Services (NCOP) to approve the National Railway Safety Regulator Amendment Bill, 2008 35

37. THANK YOU 36