1. 1 Railway Safety Regulator Strategic Plan: 2007/8 to 2009/10 Presentation to the Portfolio Committee on Transport 28 March 2007

2. 2 Presentation Outline  Strategic Challenges  Service Delivery Environment  Key Strategic Thrusts Strengthening the regulatory framework. Effective Safety Compliance Regime Monitoring and evaluation Stakeholder management and operator support Sound Management of the RSR Enterprise Sustainability of the RSR  Budget Information  Conclusion

3. 3 Strategic Challenges Establish Institutional Capacity to undertake full mandate of the RSR Develop appropriate responses to key initiatives within the Rail sector Develop an approach to RSR’s role with respect to security Develop appropriate response to the State of Railway Safety Railway Security Regional Harmonisation of Railway operations

4. 4 Strategic Priorities Consolidating and strengthening the RSR’s regulatory framework. Developing an effective safety compliance regime. Monitoring and evaluation of safety performance. Stakeholder Partnerships to improve safety. Institutional Capacity and Management

5. 5 Service Delivery Environment State of Railway Safety

6. 6 Safety Permits 233 Safety Permits issued to date –These are valid for 3 years

7. 7 Market Segment Breakdown

8. 8 Operational Sites Per Province

9. 9 % Operational Sites Per Province

10. 10 Cat2003/42004/52005/6 A 29%26% 30% J 35%40% 34% The predominant categories are A (collisions and derailments) and J (security related occurrences). Incidents: 2005/6

11. 11 Collisions & Derailments

12. 12 Security-Related Occurences

13. 13 Spoornet Incident Costs The total cost for 2005/6 is 700m

14. 14 MetroRail Incident Costs

15. 15 MetroRail: Fatalities

16. 16 Conclusions: Occurrence Data  State of railway safety and security in the country is not improving.  Costs associated with incidents are dramatically increasing and adversely impact on the cost of doing business.  Risk profile of major operators is unacceptably high and has a bearing on costs associated with managing risk.  General negative perception about the state of the rail sector in the country.  Poor human factor management practices (…in particular, safety critical positions) and lack of safety culture within organisations.  Poor state of the rail infrastructure and outdated technology.

17. 17 Strengthening the Regulatory Framework Amendment of the RSR Act. June 2008 Develop the following Regulations. Permit Fee Structure Regulations:March 2008 Dangerous Goods Regulations:March 2008 Level Crossing Regulations:March 2009 Amended SMS Regulations:March 2009 Construction Regulations:March 2009 Compliance Regulations:March 2009

18. 18 Strengthening the Regulatory Framework Develop the following Standards. SANS 3000-2(General Technical)September 2007 Standards (Dangerous Goods by Rail)September 2007 SANS 3000-2-2 (Track, Civil & electrical infrastructure):March 2008 SANS 300-2-3 (Rolling Stock)March 2009 SANS 3000 –xxx (Occurrence Investigations):March 2008 SANS 3000-3 (General):March 2009 SANS 3000-1 (Amendment)March 2008 SANS 3000-2-4 TO 6March 2010

19. 19 Strengthening the Regulatory Framework Safety Permits policy and procedures. May 2007 Issue new Safety Permits: 50% by March 2008 & 100% by March 2009 Implement Permit Fee Structure March 2009 Develop a guiding framework/Protocol on the RSR’s supportive role on security May 2007

20. 20 Strengthening the Regulatory Framework Develop interventions aimed at reducing high levels of Human Tragedy in railways. Interventions to focus on the following aspects: Level Crossings Crime and Security Trespassing and Informal settlements along the rail reserve: March 2009.

21. 21 Effective Safety Compliance Regime Safety Audits primarily focussing on the High Risk category: March 2008 (Per audit schedule) Conduct Inspections: March 2008. Timeframe informed by audit findings, occurrence investigation findings, information from various sources and inspection schedule. Conduct Occurrence Investigations March 2008. Depending on occurrences reported and the prioritisation thereof. Compliance Enforcement through issuing notices, directives and suspension/revocation of permits. March 2008. Dependent on notices and directives issued.

22. 22 Monitoring and Evaluation Monitor implementation of corrective actions by operators based on RSR’s audit, inspection and Occurrence investigation findings: March 2008. Dependent on directives issued. State of Safety Reports based on railway occurrence data as per SANS 3000-1. Annual State of Safety Report (2006/07) by October 2007. Develop an effective tool/system to improve data capturing, monitoring, safety analysis and ensure integrity of the information at RSR’s disposal. March 2008. Dependent on notices and directives issued.

23. 23 Monitoring and Evaluation Ongoing monitoring of the Gautrain Rapid Rail Project in line with the RSR’s SMS requirements. March 2010 Develop a Safety Performance Management tool which shall be used to develop safety performance agreements between RSR and 2 big operators (SARCC and Spoornet). October 2007.

24. 24 Stakeholder Management and Operator Support Conclude MOU’s and Cooperative Agreements with the following state agencies; National Nuclear Regulator:April 2007 Dept Minerals and Energy:September 2007 South African police Services:September 2007 Operator Liaison Forums ensure ongoing cooperation and support for major operators (Spoornet/SARCC) on key safety issues / strategic issues. Quarterly Engage in SADC forum to promote the harmonisation of the railway safety regulatory regime. March 2008

25. 25 Sound Management of the RSR Enterprise Performance Agreement with Minister of Transport April 2007 Review and develop the following policies Human Resources Management Policies:May 2007 Financial Management Policies, procedures and related controls:May 2007 Procurement Management Policy:May 2007 Effective Budget Planning and Monitoring. Compliance with Budget cycle Develop relevant reports in line with the requirements of the RSR Act, PFMA, Shareholder Compact and any other relevant requirements. As per reporting schedules

26. 26 Sound Management of the RSR Enterprise Develop an RSR wide Risk Profile April 2007 Development and deployment of the National Information and monitoring System September 2008. Review and develop a Communication Strategy and Plan for the RSR. April 2007

27. 27 Sustainability of the RSR Amend the Act to make provision for revenue generation by the RSR March 2008 Implement Permit Fee Structure: March 2008 Develop a Revenue Generation Strategy for the RSR July 2007 Develop a sound business case for the adjustment of the RSR’s budget as well as the request for additional funding over the MTEF. July 2007. As per budget cycle

28. 28 SUMMARY OF REVENUE FOR THE MTEF 2007/08 TO 2009/10 Apr 07 – Mar 08Apr 08 - Mar 09Apr 09 - Mar 2010 ORIGINALLY REQUESTED FROM TREASURY 67,533,088 60,258,200 62,042,571 APPROVED ALLOCATION Transfers - Baseline Allocation 22,260,000 23,361,000 24,523,000 Transfers - Additional funds 5,000,000 TOTAL ALLOCATION 27,260,000 28,361,000 29,523,000 Interest 150,000 162,000 175,000 TOTAL REVENUE 27,410,000 28,523,000 29,698,000

29. 29 BUDGET SUMMARY: 2007/08 TO 2009/10 SUMMARY OF REVENUE AND EXPENDITURE DESCRIPTION2005/062006/072007/082008/092009/10 R'000 Government Grant - Baseline Allocation 20,000 21,200 22,260 23,361 24,523 Additional Funds/ Retained Surplus 15,664 11,051 5,000 * TOTAL ADJUSTED ALLOCATION 35,664 32,251 27,260 28,361 29,523 Interest on bank - - 150 162 175 TOTAL REVENUE 35,664 32,251 27,410 28,523 29,698 TOTAL EXPENDITURE (24,613) (32,251) (27,410) (28,523) (29,698) SURPLUS/ (DEFICIT) 11,051 - - - -

30. 30 Budget Breakdown per Category 2007/08

31. 31 Budget Breakdown per Department 2007/08