Transcript Document

INSTITUTE OF QUARRYING
& ASPASA
Gautrain Rapid Rail Link
T
By
Jack van der Merwe – CEO: PPP Unit, Gauteng
Department of Finance & Economic Affairs
36th ANNUAL CONFERENCE & EXHIBITION
Birchwood Conference Centre, Gauteng
3-5 MARCH 2005
Gautrain Rapid
Rail Link
Institute for Quarrying
3 – 5 March 2005
Jack van der Merwe (Pr. Eng)
Project Leader: Gautrain
Chief Executive: Public Private Partnerships
Gauteng Provincial Government
Background
The Powerhouse of Africa
• Gauteng is:
– Less than 2% of Country’s surface area
– Home to 70% of the SA’s workforce
– Accounts for some 40% of GDP of South Africa
– Generates 9% of GDP of Africa
– Most developed infrastructure in Africa
– Most technologically advanced Province
– The population is expected to exceed 9 million by the end
of 2004
Gauteng – Economic
Development Strategy
• Existing economic strengths :
– Mining
– Heavy Industry
– Financial & Banking sector
• Proposed strategy:
– Smart industries - Gauteng the “smart” Province
– Move toward high value-added manufacturing
– Enhancing the business services (Finance & Banking) sector and
business tourism
Provincial Blue IQ Initiatives
Rosslyn
Pretoria
CSIR
Sterkfontein Caves
Sandton
Braamfontein
Johannesburg
Kempton Park
Germiston
Alberton
Soweto
"Blue IQ is a multi-billion Rand initiative of the Gauteng Provincial Government to invest
in economic infrastructure development in identified mega projects in tourism, smart
industries and high value-added manufacturing to create a truly “smart” province."
Rationale
Transport
Challenges
Mobility
Accessibility
Maintenance
Traffic Flow on N1
N1 at New Road 0n Tue.03/10/2000
1800
North Bound
1600
South Bound
15 minute Flow
1400
1200
1000
800
600
400
200
0
Time
Share of Gauteng in
National Vehicle Fleet
40
35
30
Gauteng
25
20
15
10
5
0
Provinces
Western Cape
Eastern Cape
Northern Cape
Free State
KwaZulu-Natal
North West Province
Gauteng
Mpumalanga
Northern Province
Gauteng Vehicles/km
TREND
350
300
250
200
150
Gauteng
100
50
Western Cape
Eastern Cape
Northern Cape
Free State
KwaZulu-Natal
North West
Gauteng
Mpumalanga
Northern Province
0
Provinces
Technical info
Gautrain Key Objectives (1)
• Economic growth, development and job creation
• Alleviate severe traffic congestion (traffic volumes in corridor
growing at 7% p.a. for more than a decade)
• Must meet other goals of Government (SME promotion,
Business tourism, Black Economic Empowerment, etc.)
• Show Government’s commitment to the promotion of
public transport (National Land Transport
Transitional Act, Act 22 of 2000)
• Improve the image of public transport with this project and
attract more car users to public transport
Gautrain Key Objectives (2)
• To promote business tourism by means of the link between JIA
and Sandton
• To contribute towards urban restructuring, shortening travel
distances and improving city sustainability
• To link to the Tshwane Ring Rail Project, linking Mamelodi,
Atteridgeville and Soshanguve / Mabopane
• Stimulate the renovation and upliftment of the Johannesburg
and Tshwane CBDs
• Link the main economic nodes in Gauteng with JIA
• Part of holistic transport plan and network for Gauteng
Hatfield
Hatfield
Pretoria
Pretoria
Centurion
Centurion
Midrand
Midrand
Preferred Route
Marlboro
Marlboro
Sandton
Sandton
JIA
JIA
Anchor Stations
Stations
Rhodesfield
Rhodesfield
Rosebank
Rosebank
Airport
Park
Station
Park Station
Technical specs
• International standard gauge
• Maximum speed: 160 – 180 km / h
• Modern state of the art trains
– Thus totally different from existing SA system
• Different trains for commuters and air passengers
• Initial demand 104 000 passengers trips per day
• Frequency every 10 – 30 minutes
• Minimum operating hours 05h30 – 20h30
• Safety and security
Feeder and Distribution Services
• Access to the Gautrain - one of the key success factors
• Initially a large part of the market segment not within walking
access of stations
• Provide dedicated bus services:
– Door-to-door service and travel time
– Convenience of transfers
– Same quality and Level of Service offered from point of access
to “front door” at destination end of trip
– Integration with existing and other new systems
• Ample park and ride facilities
Concept
10 km radius
Legend:
5 km radius
Rail Line & Rail
Operational Area
Station Precinct
Dedicated Feeders
Dedicated Distributor
Existing PT Service
Catchment area
Interesting facts (1)
• 104 000 passengers per day are estimated to travel on Gautrain
• Approximately 78 new commuter rail coaches will be
manufactured
• Approximately 250 new bus coaches will be used
• 3,6 million train kilometres and 674 million passenger kilometres
will be travelled per year
• 10,6 million bus kilometres will be travelled per year
• There will be a train at least every 10 minutes during the peak
time at stations between Johannesburg and Pretoria.
Interesting facts (2)
• 260 000 concrete sleepers will be manufactured for use in the
track
• 20 000 tons of steel will be required to manufacture the steel
rails
• 112 000 m² of bridges and viaduct structures will be constructed
• More than 9 000 new parking bays will be required
• 65 road intersections in the vicinity of stations will be upgraded
• 48 000 jobs will be created during construction
PPP Process
Project Process
• Fundamental Principles
– Multi-billion Rand project
– Cannot be funded in total by Government
– Can only be developed as a Public-Private Partnership
• PPP project (BOT type project)
– Must have political buy-in & the private sector must
show an appetite for the PPP project
– Must comply with all legal requirements
RFQ Qualified Bidders
• Bombela Consortium
• Gauliwe Consortium
– Bombardier Transportation
– CAF
– Bouygues Travaux Publics
– Dragados
– Murray & Roberts
– Grinaker – LTA
– RATP International
– Metro de Madrid
– CANAC
BOT Advantages
• What each party brings to the BOT
Design and
building
Land
Public
Sector
Legislation
Subsidies
Guarantees
Rights of way
Long term
vision
Concession
Operation
Maintenance
Private
Financing
Sector
Capital
Access to the
market
Revenue
Users
BOT Advantages
• What each party get from a BOT
Design &
Construction Contract
Taxes
People
Mobility
Public
Economic
development
Sector
Operation
Contract
Concession
Debt
Supply
Social function
Incomes
Associated
benefits
Profit
Time saving
Environment protection
Service Quality
Users
Private
Sector
Implementation Process
• Four pillars
– Political will & commitment
– Viable project (base case design)
• Technical
• Financial
• Legal/Institutional
– Funding (for Infrastructure & Operations)
• Government’s portion
• Private Sector’s portion
– Community acceptance & Buy-in
• Socio-economic benefits
• Power of expropriation
PPP Requirements
• Feasibility
– Value for money
• Public Sector Comparator (PSC)
(What will it cost if Government does the work through normal
procurement process; and including completion and integration
risk and cost)
– Affordability
– Total cost of project, expressed in Net Present Value (NPV)
– Yearly cost to the province (contingent liability)
– Maintain the 80/20% ratio in social vs.. rest split in budget
PPP Requirements (continue)
• Feasibility (continue)
– Risk transfer
• Identify, cost and allocate various risks to the role players best
equipped to mitigate and manage them
PPP Components
• Technical content
• Financial proposal
• Legal mark-up
• Socio-economic Development
Economic
Information
Modelled Single Journey Fare
SERVICE
ORIGIN
DESTINATION
DISTANCE
COST
Commuter
Pretoria
Johannesburg
57 km
R 16,40
Commuter
Pretoria
Sandton
46,8 km
R 14,36
Commuter
Rhodesfield
Sandton
19,0 km
R 9,08
Airport
JIA
Sandton
20,4 km
R 70,40
Cost less than car, more than existing bus / taxi / rail
What Will the Economic Impact Be?
Number of jobs created / sustained:
• Construction
• Operating and Maintenance
• Urban economic activity
: 57 000
: 2 200 p.a.
: 40 000 p.a.
Increased business sales
: R 6 billion
Increase in Gauteng GGP
: 0,7 - 1%
Way forward
New Pressures
• After 2004 elections:
– Top priority is to focus on job creation & fighting poverty
• Timing of the completion of the project to coincide
with the FIFA 2010 World Cup
– Pressure on approvals & authorisations
Summary of Tender Process
Investors Conference
Announce pre-qualified bidders
EIA Report
& Draft EMP
RFQProcess
ROD
Appeals
EIA - Process
Prepare
RFP
documents
Construction
Commence
Announce
ROD
Preferred &
Reserve Bidder
RFP
Phase I
Final EMP
RFP
Phase III
(BAFO)
RFP
Phase II
Financial
Close
Negotiate
with Bidder(s)
Detail Design
29 Nov
2002
Sep
2001
End April
2002
21 Oct
2002
30 Sep
2003
29 Sep
2003
Apr
2004
Infrastructure
Act
requirements
Apr
2005
Proclamation
and Land
acquisition
Oct
2005
Development and Operation
Contract Term (19.5 years)
Development Period (54 mths)
Mrt 05
Operating Period (15 years)
Oct 05
Enabling
Works
Dec 08
Construction & Commission:
Sandton – JIA
Dec 09
Construction & Commission:
Remainder of the System
Operations & Maintenance
The Seven Stages of a PPP Project
• Enthusiasm
• Promises & Programmes
• Disillusionment
• Panic
• Hunt for the guilty
• Punishment of the innocent
• Reward for those who had nothing to do with it
Thank You
www.gautrain.co.za