dot hearings: pti and ptno application 10 september 2013

DOT HEARINGS: PTI AND PTNO APPLICATION10 SEPTEMBER 2013

PRESENTATION OVERVIEW1. Executive Summary 2. Polokwane IRPTS

• Current context and response• Full network design• Transit oriented land use• Institutional arrangements with Province• Management capacity, political support and

stakeholder buy-in

3. 2012/13 Progress and Spending• PTI allocations, rollover and spending

4. 2013/14 Progress and Spending• Current year progress on spending

5. Plans for 2014 MTEF• Worst-case scenario• Best case scenario

POLOKWANE: CITY OF THE STARS

THE DUAL APPROACH

Phase 1 &2 – Intervention Focus:• High quality public transport system facilitated by dedicated infrastructure• Regenerate the CBD • High density development• Promote spatial in-filling

Phase 2

Phase 1

Phase 3

Phase 4 Phase 3 & 4 – Intervention Focus• Build on current systems• Restructure Public Transport Operational Grant (PTOG) &

achieve industry transformation• Provide reliable, safe, scheduled, public transport• BUT not entrench current spatial and mobility patterns

BRT

High Quality PT

EXCITEMENT IS GROWING

PROJECT CHALLENGES

• More pictures

2010-2011 2011-2012 2012-2013 2013-2014R 0

R 50,000,000

R 100,000,000

R 150,000,000

R 200,000,000

R 250,000,000 Project expenditure

Increase in our institutional

capacity

Projected expenditure

WHY WE ARE HERE

R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R456 R261 R211 R299 R171 R148

PTNO R0 R0 R44 R151 R148 R171 R202

TOTAL R199 R456 R301 R362 R447 R342 R350

MTEF

Current 1 2 3 4 5 6 Year

Phase 1: SeshegoPhase 2: Moletji

Phase 3: Mankweng Phase 4: North West/ Koloti

PIRPTS DESCRIPTION

POLOKWANE CURRENT CONTEXT

40km20km

Population: 630 000 Mean Monthly HH Income: R2000

Summary: Low income, mixed density, mixed urban - rural

Large number of rural remote settlements connected by subsidised buses & MBTs

Residential pop. concentration in NW (10km - 20km out)

Fast growing urban area with strong CBD

POLOKWANE CURRENT CONTEXT

Public transport provides an opportunity to address our urban and spatial planning

challenges

THE DUAL APPROACH

Phase 1 &2 – Intervention Focus:• High quality public transport system facilitated by

dedicated infrastructure• Regenerate the CBD • High density development• Promote spatial in-filling

Phase 2

Phase 1

Rapid Transit

THE DUAL APPROACH

Phase 3

Phase 4

Phase 3 & 4 – Intervention Focus• Build on current systems• Restructure Public Transport Operational Grant (PTOG) &

achieve industry transformation• Provide reliable, safe, scheduled, public transport• BUT not entrench current spatial and mobility patterns

Restructured Transit

TRANSIT ORIENTED LAND USE

The Dual Approach• Phase 1 & 2: Rapid transit system encourages spatial

infilling between Seshego & CBD• Phase 3: Establishes Mankweng as an economic hub,

while linking it with the CBD• Phase 4: Provides essential service to city

Infilling between Seshego and CBD

Development of stand alone urban hub

Essential services in rural areas

E

Phase 1Phase 2

PIRPTS System Description• Trunk & Trunk Extension Design• 80% of route residential, 54,000hh• 20,000 pax/peak period• 80% of hh within 500m of PIRTN• 4 million vehicle kms/year• 12.5 million passenger trips/year

PHASE 1 & 2 – SYSTEM DESCRIPTION

PIRPTS Vehicles• 151 x solo buses (65 capacity)• 35 x midi buses (25)Total: 186

E

Phase 1

Phase 2

PIRPTS Infrastructure• 12 km trunk lane• 6.6 km of trunk dedicated lane• 7 trunk extensions• 5 feeder routes• 6 trunk stations• Church Street pedestrianized &

dedicated to public transport• 2 Depots

PHASE 1 & 2 - INFRASTRUCTURE

E

B

C

Current Situation•Dual carriage way to CBD• Main access road with increasing congestion

Interventions Explored:• Mixed Traffic (no dedicated lane)• An Off-Peak Contra-Flow Lane• Single Median Bus Way• Two Dedicated Lanes (B to C)• Full trunk dedicated lanes• Full trunk, strengthened

dedicated lanes

Recommendation: Two Dedicated Lanes Travel time advantage A differentiated service Lower enforcement challenges Lower safety risks Lower costs

PHASE 1 & 2 – DEDICATED LANE ASSESSMENT

Design:• Feeders to centralised

Mankweng interchange• Trunk route running to

CBD

PHASE 3 – MANKWENG DESIGN

17

MANKWENG CENTRAL NODE

Focus:• Formalise and integrate

current Mini-Bus Taxi (MBT) & Bus Services

• Use existing vehicles • Offering operational

efficiencies• Improve connectivity,

peak & off-peak availability

• Safe and reliable• Restructuring current

PTOG contracts• Integrated Fare

Management

60 Standard Buses providing 15 000 pax trips per day on Polokwane to Mankweng trunk route.

Constantin von der Heyden

Need operational data here - passengers, trips, vehicles, km, etc.Richard to provide

Design:• Feeders to Koloti Interchange or to

edge of Perskebuilt • Trunk route through running to CBD

To Moletjie

PHASE 4 - NW/KOLOTI DESIGN

Focus:• Formalise and integrate

current Mini-Bus Taxi (MBT) & Bus Services

• Use existing vehicles • Offering operational

efficiencies• Improve connectivity,

peak & off-peak availability

• Safe and reliable• Restructuring current

PTOG contracts• Integrated Fare

Management

Restructure existing 25 Buses + 35 MTB’s to feed into transfer terminal of PIRPTS at Moletjie. Approx. 4500 pax trips per day.


Need operational data here - passengers, trips, km, vehciles, etc.

CITY WIDE NMT

Cycle and Pedestrian Networks

Urban Greening

ACCESS DESIGN

• The initial draft Universal Design Access Plan will be available at the end of September.

• Thereafter, a Universal Design Workshop will be held for all team members and stakeholders to introduce the concepts of Universal Design and Accessibility.

• Engagement of local organisations and groups of Passengers with Categories of Special Needs is being planned.

13/14 14/15 15/16 16/17 17/18 18/19 19/20Year 1 2 3 4 5 6 7

IMPLEMENTATION

PIRPTS Full Network

2

Moletjie- CBD3 000 vehicle seats

21 000 pax/day4

North West – CBD5 000 vehicle seats

20 000 pax/day

F

Public Transport Restructuring Stream

Phase 1: Seshego - CBD6 000 vehicle seats

42 000 pax/day

1

3Mankweng - CBD

5 000 vehicle seats 20 000 pax /day

Rapid Transit Stream


Check vehicle seat figures.Richard to confirm

13/14 14/15 15/16 16/17 17/18 18/19 19/20Year 1 2 3 4 5 6 7

IMPLEMENTATION

PIRPTS Full Network

2


21 000 pax/day4


20 000 pax/day

F



42 000 pax/day

1

3

Mankweng - CBD5 000 vehicle seats

20 000 pax /day


Dual rollout approach sees parallel implementation of the Rapid Transit system

and the Restructured Public Transport system

13/14 14/15 15/16 16/17 17/18 18/19 19/20Year 1 2 3 4 5 6 7

IMPLEMENTATION

PIRPTS Full Network

2


21 000 pax/day4


20 000 pax/day

F



42 000 pax/day

1

3

Mankweng - CBD5 000 vehicle seats

20 000 pax /day


• Allows for the establishment of the full network, over a relatively short period

• Supports rapid service improvement and delivery to the public

• Facilitates a smooth transformation and transition process with the industry

INSTITUTIONAL ARRANGEMENTS WITH PROVINCE

• Partnership with Provincial government– Agreement on responsibilities for the PIRPTS– To lead to possible Inter-Government

Agreement (IGA)• Significant effects on Great North

Transport (GNT)– Requires restructuring following

introduction of the PIRPTS• Phase 3 and 4 affects 2 private bus

operators contracted to Province (under PTOG subsidy)– The contracts will need to be devolved to

Municipality and restructured• Cooperation around operating licenses

MANAGEMENT CAPACITY AND SUPPORT• PIRPTS Management Unit has been established

– Significant capacity created– Diverse skills sets and background– Supported by strong and capacitated municipal administration

• Strong political buy-in and support– Dedicated political structures – MMC is the IRPTN political champion – Personal attention and priority of Executive Mayor

• Extensive industry engagement – Frequent industry engagements (monthly with each

association)– Provincial leadership structures engaged (ITEEC)– Successful study tour– Industry strongly informed and involved

• A dual approach of technical and institutional -transformation rollout– Lessons from elsewhere in SA that institutional /

transformation issues delay successful rollout

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

2022/23

2023/24

2024/25

2025/26

R -

R 50,000,000

R 100,000,000

R 150,000,000

R 200,000,000

R 250,000,000

R 300,000,000

R 350,000,000

R 400,000,000

R 450,000,000

R 500,000,000

Municipal Financial Year

CAPITAL COST SUMMARYBus purchases will be financed through debt and repaid with PTI over 5 years

Phase 1 : Seshego Infrastructure build

Phase 2: Moletji Infrastructure build

Phase 3 : Mankweng Infrastructure build

Phase 4: NW Infrastructure build

Vehicle Repayments for Seshego buses & Moletji buses

PIRPTS PROGRESS 2012/13

2011 - 2013 FINANCIAL YEARChallenges» Internal Capacity, Procurement Delays & Late

Appointments, Limited Contract Periods, Project Communications, Under-Expenditure.

» Alignment of Workstreams, Extension of Contracts, Project Office, Under-Expenditure, Terms of Reference limitations.

Resolutions» Establishment of Transportation Directorate, Clear

Project Structure, Project Office, Internal Capacity Building, Contract Extensions,

» Procurement Priority Appointment of Panel of Experts over 5 year period, Annual Performance Review of every Workstreams and annual setting of scope of works, Full commitment of funds.

CHALLENGES & RESOLUTIONS

Workstream Description Progress

Systems & Operational Planning

Technical Operational Plan

Phase 1 & 2 detailed plan Phase 3 & 4 concept plan

Business & Financial Planning

Business and Financial Plan

Detailed full financial model Costs and revenues over 12 years Business structures and contractual arrangements Organizational, capacity and governance requirement

Marketing & Communications

Integrated Marketing and Communications Strategy

Project Brand complete to be approved by Council in June Website and other key branding material

Industry Transition & Engagement

Industry Transformation and Engagement Process

Extensive engagement over past 12 months (local and provincial level)

MOU signed between Municipality and Taxi Associations Highly successful study tour to JHB, NM and CPT completed Bi-Monthly Progress Meeting with General Membership of

the Taxi Industry

InstitutionalEstablishment of the Transportation Directorate

Directorate established and staffed Council approval of TOP and IMCS s33 process completed, s78 Investigation underway Appointment of all required service providers completed

PROJECT TECHNICAL PROGRESS 2012/13

2012/13 PIRPTS FINANCIALS

FINANCE DETAILS 2012/13 R (million)

TOTAL PTI transferred to July 2012 49.070

TOTAL Expenditure to July 2012 14.792

Expenditure % to July 2012 30

2012/13

Rollover requested to 2012/13 34.276

PTI transferred in 2012/13 48.703

TOTAL PTI in 2012/13 82.979TOTAL Expenditure in 2012/13 (incl. commitments) 81.029

Expenditure % in 2012/13 98

2013/14



Grant data (PTI) for Polokwane to date to be provided here - Transfers to date (per year), expenditure to date (per year), rollovers to date (per year). Michel to provide.






2012/13





2013/14


Poor expenditure to July 2012, for various reasons

related to slow start-up on the project








2012/13





2013/14


PTI allocation in 2012/13 was R 99m. Municipality requested this allocation be reduced by R 50m to reflect ability to spend








2012/13





2013/14


Includes R 40.546m committed funds, to be spent by October 2013








2012/13





2013/14


Dramatic improvement in expenditure in 2012/13,

reflecting pro-active steps taken by the municipality








2012/13





2013/14


Rollover of committed funds from 2012/13, to be

spent by October 2013.



PIRPTS PROGRESS 2013/14

MILESTONES 2013/14

Designs for the full Ph 1 & 2 be completed by Jan 2014 and the tender for construction be awarded by Mar 2014

ITS, Control Centre & Vehicle Specifications completed by March 2014

Technical Specifications

Full network Business & Financial Plan to be completed by June 2014

Full Network Business Plan

Industry transition engagements across all phases with minibus and bus

industry, negotiations begin June 2014

Negotiations Begin

The PIRTN brand is finalised by June 2014 and official brand launch

Brand Finalization

Designs for Mandela Drive dedicated lane (B to C) to be completed in Nov 2013 and

construction to begin in Mar 2013Mandela Drive

Designs for full Trunk

STAKEHOLDER ENGAGEMENT

EXPENDITURE 2013/14Expenditure item Amount

(R‘m)% of Total Funds

receivedTotal expected expenditure to end June 2014 R 199m 100%

Planning costs R 50m 25%

Detailed Design & Construction R126m 63%

Stakeholder and industry engagement R 23m 12%

EXPENDITURE 2013/14Expenditure item Amount

(R‘m)% of Total Funds

receivedTotal expected expenditure to end June 2014 R 199m 100%

Planning costs R 50m 25%

Detailed Design & Construction R126m 63%

Stakeholder and industry engagement R 23m 12%

COMMITTED FUNDS TO DATE R 198m 99%

Municipality has already committed the full PTI allocation for 2013/14

Achievements in 2013/14

Since July 2013– SLAs signed and funds committed– Technical design underway – Phase 1

& 2– Household survey almost complete– Conceptual design of Phase 3 & 4– Launch of PIRPTS completed– Extensive Industry capacitation

programme in place– Market survey in implementation– Engagements with Province and Bus

companies


Need to include the expenditure already achieved in 2013/14 (i.e. since July 2013). This must include all the contracts already awarded, with committed budgets.Michel to provide.

PIRPTS PLAN FOR 2014 - 2016 MTEF

WORST CASE SCENARIO

• Worst case scenario = ZERO allocations in 2014/15 and 2015/16

• Unlikely that the project can continue– if outer year funding not secured to keep progress going– Extent of funding received can vary, but PIRPTS is not

viable if zero allocation remains

R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R396 R218 R208 R299 R160 R135

PTNO R0 R0 R27 R117 R108 R118 R142

TOTAL R199 R396 R245 R325 R407 R278 R277

BEST CASE SCENARIO: PTI AND PTNOGMTEF




R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R396 R218 R208 R299 R160 R135

PTNO R0 R0 R27 R117 R108 R118 R142

TOTAL R199 R396 R245 R325 R407 R278 R277





Phase 1Trunk, extension and feeder roadway works

Stations and stopsDepots

Control centre

R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R396 R218 R208 R299 R160 R135

PTNO R0 R0 R27 R117 R108 R118 R142

TOTAL R199 R396 R245 R325 R407 R278 R277





Phase 1No PTNO requirements in 2014/15

R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R396 R218 R208 R299 R160 R135

PTNO R0 R0 R27 R117 R108 R118 R142

TOTAL R199 R396 R245 R325 R407 R278 R277






Stations and stopsDepots

Control centreIFM, ITS and Security equipment

R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R396 R218 R208 R299 R160 R135

PTNO R0 R0 R27 R117 R108 R118 R142

TOTAL R199 R396 R245 R325 R407 R278 R277





Phase 1Industry compensation

Entity establishmentVOC establishment

Auxiliary contracts (ITS, IFM)

R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R396 R218 R208 R299 R160 R135

PTNO R0 R0 R27 R117 R108 R118 R142

TOTAL R199 R396 R245 R325 R407 R278 R277






Stations and stopsPhase 1

Principle debt on vehicle fleet

BEST CASE SCENARIO: PTI AND PTNOG

R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

PTI R 199 R396 R218 R208 R299 R160 R135

PTNO R0 R0 R27 R117 R108 R118 R142

TOTAL R199 R396 R245 R325 R407 R278 R277

MTEF




Phase 1Interest on vehicle purchase

Industry compensationEntity establishmentVOC establishment

Auxiliary contracts (ITS, IFM)

THANK YOU

dot hearings: pti and ptno application 10 september 2013

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