Transcript Slide 1

Welcome to the
UDZ
TAX INCENTIVE
CONFERENCE
Day 1 – 18 Aug 05
Gautrain Rapid
Rail Link
Presentation at the
Conference on Tax Incentives
in the Johannesburg UDZ
Jack van der Merwe (Pr. Eng)
Project Leader: Gautrain
Chief Executive: Public Private
Partnerships
Gauteng Provincial Government
Overview of Gautrain & its
Impact on the Johannesburg
CBD
• Strategic economic infrastructure
initiatives
• Objectives
• Description of the project
• Benefits of the project to Johannesburg
– During construction
– During operation
– Developments around the station
– Accessibility of the CBD and UDZ
Strategic economic
infrastructure initiatives
Strategic Economic
Infrastructure Initiatives
• Various initiatives of the Department of
Finance and Economic Affairs such as
Blue IQ, Gautrain and the GPG
Precinct, GEDA
• Development of the Gautrain Provincial
Government to promote a smart
province
• Projects in the Johannesburg UDZ:
– Gautrain Rapid Rail Link and GPG Precinct
(DFEA PPP Unit)
Proposed Provincial 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
Objectives of the Gautrain
Project
Development Goals
• Economic growth, development and job
creation
• Must meet other goals of Government
(SME promotion, Business tourism,
BEE, etc.)
• To promote business tourism by
means of the link between JIA and
Sandton
Transportation Goals
• Alleviate severe traffic congestion (traffic
volumes in corridor growing at 7% p.a. for
more than a decade)
• 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
• To link to the Tshwane Ring Rail Project,
linking Mamelodi, Atteridgeville and
Hour Beginning
23:00:00
22:00:00
Northbound
21:00:00
20:00:00
19:00:00
18:00:00
17:00:00
16:00:00
15:00:00
14:00:00
13:00:00
12:00:00
11:00:00
10:00:00
09:00:00
08:00:00
07:00:00
06:00:00
05:00:00
04:00:00
03:00:00
02:00:00
01:00:00
00:00:00
Hourly Volume
2000 Northbound and
Southbound Vehicle Volumes
7000
Southbound
6000
5000
4000
3000
2000
1000
0
Hour Beginning
5000
4000
3000
2000
1000
0
22:30:00
21:45:00
21:00:00
19:30:00
18:45:00
18:00:00
Southbound
20:15:00
6000
Northbound
17:15:00
16:30:00
15:45:00
15:00:00
14:15:00
13:30:00
12:45:00
12:00:00
11:15:00
10:30:00
9:45:00
9:00:00
8:15:00
7:30:00
6:45:00
6:00:00
5:15:00
4:30:00
3:45:00
3:00:00
2:15:00
1:30:00
0:45:00
0:00:00
Hourly Volume
2005 Northbound and
Southbound Vehicle Volumes
7000
Spatial Development and Urban
Planning Goals
• To contribute towards urban
restructuring, shortening travel
distances and improving city
sustainability
• Stimulate the renovation and
upliftment of the Johannesburg and
Tshwane CBDs
• Link the main economic nodes in
Gauteng with JIA
Integration between
railway and urban
Overview of the
Proposed System
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
High quality
of modern
rail systems
Major construction works
associated with rail
systems
Rail Services Specified
SERVICE
General passenger
service
Johannesburg Park
to Hatfield Station
General passenger
service Sandton to
Rhodesfield Station
Airport Service
PEAK
FREQUE
NCY
OFFJOURN
PEAK
EY
FREQUE TIME
NCY
12 minute 20 minute 42
minute
21 minute 30 minute 15
minute
21 minute 30 minute 15
PPP Projects
• Gautrain is a PPP Project where public
sector resources are expanded by Private
Sector finance for the building of
infrastructure for:
– Service delivery
– Job creation
– Fighting poverty
– Multiplier effect in economy
PPP Components
•
•
•
•
Technical content
Financial proposal
Legal mark-up
Socio-economic Development
Johannesburg Park
Station
Johannesburg Park
Station
Johannesburg Park Station
Location
Station Definitions (1)
• Rail Functional Area
– Railway functional elements, such as fare
collection and ticket sales for exclusive use
of passengers
• Station Precinct
– Development of stations to serve the
Gautrain system, such as station building,
parking and modal transfer facilities
• Impact Area
– Area where land use is expected to change
to capitalize on opportunities created by the
Station Definitions (2)
• Influence Area
– Area where majority of patrons are located
and where land development may be
diverted to increase patronage, e.g.
residential densification
• Catchment Area
– Area from where patrons are attracted and
served by feeder and distribution services
• Impact Area and Influence Area create
opportunities for private sector to
capitalize on benefits of the Gautrain
Functional Area of
Johannesburg Park Station
• CBD (immediately south of station)
• Transport related uses and services at the
station
– SARCC, minibus taxi, buses, long distance
passenger rail, tour coaches
• Newtown south-west of station
• Mixed-use offices and residential uses in
Braamfontein, including Johannesburg
Civic Centre
• Social and cultural uses surrounding the
station
Transport Linkages at
Johannesburg Park Station
• Municipal roads that serve pedestrians,
cyclists, private vehicles and road-based
public transport
• Minibus taxi services
• Bus services
• Tour coach operations
• Commuter service provided by metro rail
(SARCC)
• Long distance rail passenger services
Feeder and Distribution
Services
• 6 Routes
– Auckland Park
– Parktown / Bellevue
– Wemmer Pan
– Booysens
– CBD Distribution west
– CBD Distribution east
• 2000 Passengers Year 5
– Urban Development Zone well-served by
feeder and distribution services
Train Service Capacity
Requirement: Johannesburg Park
Station
• Year 5 : 3 200 peak hour passenger
movements
• Year 30: 5 600 peak hour passenger
movements
Modelled Journey Time And Fares
DESTINATI JOURNEY DISTANCE
ON
TIME
Rosebank 4.2 minutes 6 km
Sandton
8.0 minutes 10.2 km
Marlboro
12.5
15.7 km
minutes
Midrand
21.1
27.8 km
minutes
Centurion 33.1
45.5 km
minutes
Pretoria
41.1
56.6 km
minutes
COST
R 7.44
R 8.45
R 9.77
R 12.67
R 16.92
R 19.58
Parking Requirements at
Johannesburg
PARKING
REQUIREME
NTS
Park-and- Ride
YEAR 5
YEAR 15
800 bays
1700 bays
Kiss-and-Ride
2 bays
2 bays
Short Term
Parking
Car Hire
5 bays
5 bays
15 bays
20 bays
3 bays
5 bays
Public
Transport
What will the Economic
Impact be?
Vision for Johannesburg Park
Station
• Functional area
– Improve marketability of Johannesburg
CBD as cultural and commercial hub from
African and International perspective
– Regeneration of CBD as place of work
through high quality public transport
access
– Promote tourism within CBD
Station Functional Area
Guidelines
• Developed in consultation with
Municipality as part of the Gautrain Rapid
Rail Link planning process
• Catalyst to create compact city, limit urban
sprawl and utilize urban land and
infrastructure more effectively and
efficiently
• Stations are key points of intervention
• Establish new urban form that embraces
the Gautrain system
Current Land Uses in Impact
Area
STATUS
QUO
Residential
Offices
Retail
Hotel /
Conference
Community
(1 km
X
1km
=
100
ha)
AREA PROPORT
m²
600
000
1 590
000
150
000
90
000
410
000
ION
17%
AVG
HEIGHT
8.5
47%
8.3
4%
1.1
3%
8.6
12%
3.6
Densification and Land Use
Model
FUTURE
SCENARIO
Residential
AREA PROPORT
AVG
m²
ION
HEIGHT
1 100
31%
8.5
000
Offices *
1 000
28%
9.3
000
Retail
160
5%
1.2
000
Hotel /
150
4%
9
Conference
000
50
1%
1
*Industry
Reduction in office space projected
000
Economic Impact in Johannesburg
CBD CAPEX
CATALYST TO ESTABLISH NEW REAL PRIVATE SECTOR
INVESTMENT
Real estate development opportunities for new & renovated
office residential and business space:
* Transport
* Retail Trade
* Accommodation
* Financial Services
* Business Serices
Increased business sales estimated at R 1.1 billion
Economic Impact in Johannesburg
Greater CBD Influence Area
NEW METROPOLITAN-WIDE TRANSPORT FACILITY INCLUDING
COMPREHENSIVE EXISTING FACILITIES WILL CREATE A
DEMAND FOR NEW ECONOMIC ACTIVITY
Private and public sector response to new demand through:
* Increased intensity in the flow of people
* Demand or accommodation close to stations
* Fast and reliable access directly to the CBD
* Increased Disposable Income
* Increased demand for retail trade, business & personal services
Translate into new and revitalized CBD office and retail space and
demand for accommodation
CBD Access to
railway
Economic Impact in Johannesburg
CBD
SUPPORT ECONOMIC ACTIVITY AND SOCIAL
SERVICES BASED ON IMPROVED TRAVEL
ACCESSIBILITY
*
*
*
*
*
*
*
Focal point for development within walking distance from station
Increase in property values close to stations
Access to cultural, social and recreational facilities
Fast and reliable access to JIA airport
More socially inclusive
Land use and transport integration
Reduced need for CBD parking
Some International
Examples/Experiences
International Experience
• Toronto: Property values around
stations are double the values in areas
without station access
• Washington: Stations became focal
points of commercial redevelopment
and promoted substantial new
development in surrounding areas
• Chicago: Rail projected to generate $810 billion. Pulls together regional
economy and promotes intra-regional
Development
around Hong Kong
Stations
Socio-Economic
Development
Socio-Economic Development
(1)
• BBBEE
– Equity
– Ownership
– Directorship
– Training & development
– Sub contracting
– Procurement
– Job creation
Socio-Economic Development
(2)
• Promotion of SMME’s
• Focus on women, youth and people with
disabilities
• Local content
• Local labour
• Investment / focus on marginalised areas
Procurement Process
RFQ : 2 Pre-Qualified Bidders
(May 2002)
• Bombela
Consortium
– Bombardier
Transportation
– Bouygues Travaux
Publics
– Murray & Roberts
– RATP International
– Loliwe Rail
Contractors
– Loliwe Rail Express
• Gauliwe
Consortium
– CAF
– Dragados
– Grinaker – LTA
– Metro de Madrid
– CANAC
– Ufudo
– Tirisano
– Nedbank
– Investec
Procurement Process (3)
• Announcement by Premier Shilowa of
Bombela as the preferred bidder on 2
July 2005
Financial Closure
• Negotiations with preferred bidder
commenced after the announcement on
2 July 2005
• This process will take 6 months
• The essence of this process is to
finalise the concession agreement
• The tender phase will only come to a
conclusion at the signing of the
concession agreement
• Negotiations with lenders will also take
Schedule for
Implementation
Timelines
Investors Conference
Announce pre-qualified bidders
EIA Report
& Draft EMP
RFQProcess
ROD
Announce
Preferred &
Reserve Bidder
ROD
Appeals
EIA - Process
Prepare
RFP
documents
Construction
Commence
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
Mid
2005
Proclamation
and Land
acquisition
Late
2005
2010 Soccer
World Cup
Ready for 2010?
• Gautrain formed an integral part of South
Africa’s bid document
• Gautrain was reported on extensively by
FIFA in its evaluation and final
recommendation
• Must form the backbone of the public
transport system in Gauteng for the World
Cup
• Both bidders indicated that they will
complete the full system by Feb 2010 ( but
Way Forward
WAY FORWARD
• Continued co-operation with Johannesburg
regarding the development of station areas
• Implementation of project
• Operation
• Environmental Management Plan (EMP)
• Participation of Private sector to effect
urban restructuring and economic
development
“Our wealth did not create our transport
infrastructure; it is our transport
infrastructure which created our wealth.”
J F Kennedy
Thank You
www.gautrain.co.za