INTRODUCTION TO PRASA Market Engagement Rolling Stock Fleet Renewal Program 5 April 2011 PRASA GCEO – T L MONTANA

1. INTRODUCTION TO PRASAMarket EngagementRolling Stock Fleet Renewal Program5 April 2011PRASA GCEO – T L MONTANA

2. INTRODUCTION PRASA launched 24 months ago in March 2009 PRASA established to be a leading provider of Integrated Public Transport Solutions

3. LEGISLATIVE MANDATE OF PRASA The Primary object of PRASA according to the Legal Succession Act is to: • Provide Urban Rail Commuter Services in the public interest • Provide Long Haul Passenger Rail Services • Provide Long Haul Bus Services The Secondary object of PRASA is to: • Generate income from the exploitation of assets acquired by PRASA In addition PRASA shall have due regard to key Government • Social objectives • Economic objectives • Transport objectives Responsibilities of PRASA: To effectively develop and manage rail & related transport infrastructure and to provide efficient rail and road based passenger transport services within, to and from urban and rural areas

4. PRASA LEGAL STRUCTURE

5. PRASA VISION • To provide integrated public transport solutions for improved mobility • Integration – PRASA integrates individuals and communities, enabling a better quality of life • through access to socio economic opportunities. • Mobility Solutions – PRASA connects individuals and communities by providing public transport • solutions based on an integrated network of mobility routes. Strategic Objective: To be the number 1 public transport operator in key corridors by 2015.

6. OUR MISSION • To provide sustainable Public Transport Solutions through service excellence, innovation and modal integration. • Service Excellence – Superior performance that is safe, reliable and affordable. Providing a • dignified travel experience that benefits passengers and makes a lasting impression, both • internally (employees) and externally (customers). • Sustainability – focus on sustainable development that considers environmental quality and • social equity in addition to the financial bottom line. • Modal Integration – Reframing the basis of business delivery, favouring innovation, seamless • integration and partnerships.

7. PRASA GROUP FOCUS AREAS/KEY STRATEGIES • PRASA • Provide sustainable integrated mobility strategies, solutions and services. • Investment Planning - Develop, modernise and expand rail assets. • Ensure financial strength and ongoing funding for the business. • PRASA RAIL (Rail Operations- Metrorail/Shosholoza Meyl) • Provide quality of services. • Maintain assets and optimise efficiencies. • AUTOPAX • Ensure the productive use of bus fleet to increase profitability, within the • PRASA integration and mobility vision. • PRASA CRES • Station/Facilities management. • Generate additional revenues to reduce dependency on government • financial support. • INTERSITE INVESTMENTS • Leverage investments on key property assets.

8. STATISTICAL OVERVIEW PASSENGER RAIL • Total Rail Network in SA= 22 300km. CAP (Narrow) gauge (1 067mm) • Gautrain - standard gauge = 1435 mm • Commuter network (Metrorail) = 2228km. (Majority electrified). • Freight (Transnet/Spoornet) = 18 000km (10 000km highly active, mainly containerised freight, bulk ore/coal and some general freight ). • Long Distance Passenger = Dependency on Transnet/Spoornet long distance/intercity network – at traditional freight speeds – average 70 km p/h. • COMMUTER RAIL ASSETS • - 2 000km electrified track • - Provide services at 470 stations - PRASA manages 374 stations and 4200 hectares of land. . • 4 638 coaches (406 train sets) • 3060 (270 train sets) available for service due to failures and maintenance requirements. • Average age of rolling stock = 36 years – 1950 technology (40% contribution to • poor performance) • - Historic investment back log. • Perway Infrastructure – good condition. • Electrical equipment - condition deteriorating. Sub-stations replacement program. • Signaling systems obsolete – Commenced R30 bn replacement program. • - Asset value: -Book value: R16bn • -Replacement value: R150bn

9. STATISTICAL OVERVIEW PASSENGER RAIL Passenger journeys 600 – 650 m per annum • Western Cape 30% • Durban 13% • Wits 38% • Pretoria/Tshwane 15% Daily passenger journeys 2.4m Average traveling distance 26km Train Km 24 000 000 per annum PassKm 15 524 822 327 per annum Trains scheduled 57 000 per annum Market share 15% (10% main mode) Employees 10 000 (PRASA 13 000)

10. TREND OF COMMUTER PASSENGER JOURNEYS1980 - 2010

11. 20 YEAR TREND IN INVESTMENTS IN COMMUTER RAIL1990 - 2012

12. COMPLETED 2010 INFRASTRUCTURE PROGRAM (Total investment = R2bn) • CONSISTING OF 75 SUB PROJECTS • New stations (Moses Mabhida, Rhodesfield and Century City). • 2010 station upgrades 50 stations (Nasrec, Orlando, Cape Town, Doornfontein, Rissik, North End, Durban, Kwa Mashu, Kwa Myandu). • Operational improvements on 2010 corridor stations – 60 stations countrywide. • Nasrec Infrastructure Intervention. • SAPS facilities. • Footbridges and Access. • Communication and Passenger Information. • Platform Alignment projects.

13. 2010 OPERATIONAL ENHANCEMENT PROJECTS.

14. TSHWANEFOOTBRIDGES • Wonderboom Atteridgeville

15. PLATFORM CORRECTION PROJECTS

16. DRAINAGE & MODERNISATION

17. PLATFORM CORRECTION PROJECTS Dangerous gaps between platforms and trains.

18. PLATFORM CORRECTION PROJECTS Defect step = 650mm. A standard step in a building is 170mm. The standard step for commuter trains should be 190 mm - 230 mm.

19. PLATFORM CORRECTION PROJECTS

20. PRASA Passenger Rail Agency of South Africa PASSENGER RAIL AGENCY OF SOUTH AFRICA FLEET REFURBISHMENT AND INFRASTRUCTURE DEVELOPMENT Division Division Subsidiary Subsidiary Service Delivery Co-operation Exploitation/Optimisation of the Asset Base

21. Part 2 ROLLING STOCK 5M Coaches 10M Coaches

22. ROLLING STOCK • 2000 coaches upgraded in the past 3 years. • R7bn (Upgrades, GO’s and preventative maintenance). • Focus on maintenance and reliability for increased life span of 10 years. • 1950’s technology – Average age = 35 – 40 years. • Maximum life span 46 years – 51% of fleet beyond 51 years – To be retired soon. • New rolling stock acquisition program.

23. PASSENGER RAIL AGENCY OF SOUTH AFRICA MODERNISATION OF INFRASTRUCTURE

24. MODERNISATION AND EXPANSION OPPORTUNITIES Biggest challenge for PRASA in capital investment is to obtain the correct balance between sustaining the current system, whilst at the same time starting to build new capacity to meet future demands as well as modernising the system through migration to more contemporary technologies. • PRIORITY EXPANSION PROJECTS • Motherwell Extension. • King Shaka and Cape Town Airport Links. • Bara Link. • Hammanskraal Re-introduction. • Integration Projects with Gautrain. • Moloto Development Corridor. • Regional rail opportunities in Limpopo and Free State Province. • Various higher speed intercity concepts linking major nodes.

25. NEW STRATEGY August 2010:– Board review the performance of the Business and approve a new strategy: “Shift focus from Stabilisation of Commuter Rail Services to delivery of High-Quality Passenger Services” Key Interventions of the New Strategy : • Implement a Financial Turnaround for PRASA to deliver on its Mandate • Improve Operational Effectiveness • Investing in New Capacity to meet passenger demands in medium to long –term

26. INVESTING IN NEW CAPACITY Modernization of Technology: Acquisition of a New, Modern Rolling Stock Fleet National Signalling Upgrade Programme Modern Operating Systems: Traffic Control Systems Speed Gates, Ticketing Systems Telecommunication Systems Capacity Enhancement Programmes Light-Rail and High-Speed Rail

27. GIVING EFFECT TO GOVERNMENT OBJECTIVES In delivering the overall strategy set out above, PRASA will: Contribute to Jobs Creation Improve and Develop Critical Skills Contribute to the overall mandate of BBBEE