Portfolio Committee on Transport

1

• Portfolio Committee on Transport
• Annual Report Briefing
• 2004/05

2
Contents

• Context
• Core Mandate of the RSR
• Key Performance Areas for 2004/05
• Progress Report
• Current and Short-Term Activities
• Key Challenges
• Organisational Matters
• State of Safety Report 2004/05
• Conclusion

3
Context of the RSR

• Vision of DoT (paraphrased)
• To provide safe, reliable, effective, affordable
  and fully integrated transport operations and
  infrastructure to meet needs of all communities,
  in support of Government strategies for social
  and economic development, whilst being
  environmentally and economically sustainable.
• Preamble to RSR Act
• Safe railway operations fundamental to safety of
  persons and the environment
• Safe railway operations promote railways as
  efficient mode
• Safe railway operations must be overseen,
  managed, and co-ordinated
• Relationship between railway safety, and
  occupational health and safety and security
• RSR primary role in safe railway operations
  supporting role in occupational health and
  safety, and security
• Organs of state must co-operate as provided for
  in Chapter 3 of the Constitution

4
Core Mandate of RSR

• Oversee safety in railways
• Promote use of rail
• Develop safety regulations
• Monitor and ensure compliance with the Act
• Give effect to the Act
• Note
• Focus on safety
• Supporting role on security

• KPAs
• Development of the Institution of the RSR
• Creation of a regulated environment
• Creation of a safe railway environment
• ( see next slide for detail)

5
Key Performance Areas

• Development of the Institution of the RSR
• Appointment of staff
• Development of organisational systems and
  processes
• Performance Agreement with DoT
• Develop a cohesive team
• Creation of a regulated environment
• Develop regulations and standards
• Issue Safety Permits
• Co-operative Agreements with state departments.
• Creation of a safe railway environment
• Oversee safety including audits, inspections,
  analysis of statistics and occurrence reports,
  undertaking occurrence investigations
• Create public awareness on safety.

6
Progress

• Railway Safety Management Regulations
• Defines contents of SMS and SMS Report
• Specifies that operators must submit the SMS
  Report with application for a permit
• Specifies occurrences to be reported
• Describes information to be provided for
  assessing performance
• Issued Temporary Safety Permits
• Data base of operators
• Operators enabled to develop SMS
• Received occurrence reports (immediate and
  quarterly) (will form part of NIMS)
• Safety Permits currently being issued

7
Progress (cont.)

• Developed draft South African Standard Railway
  Safety Management Part 1 General (SANS 3000-1/
  RSR 001)
• Gained support and commitment from industry
• Road shows to explain the RSR Act and
  expectations
• Developed internal data base for capturing and
  analysing occurrences
• will form part of NIMS
• state of railway safety analysis done
• Regulations for the development of standards
  published for comment (closing date31 October
  2005)
• National standards (developed with Standards SA)
• Industry Standards (developed by Industry
  Association)
• Local standards covering specific local conditions

8
Current and short term activities

• Regulations
• Imposition of fines
• Level crossings
• Exemption from compliance with the Act
• Financial assistance
• To assist worthy needs that will improve safety
• Unlawful occupation of land
• Address unsafe conditions for operations and
  people

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Current and short term activities (cont.)

• Development of standards
• SANS 3000-2 to 3000-8
• Technical requirements for engineering and
  operational standards General
• Track, civil, and electric traction
  infrastructure
• Rolling stock
• Train control systems
• Operational systems
• Railway interface with other modes and utilities
• Human factors

10
Current and short term activities (cont

• Conduct research into the creation of competent
  authority for the transportation of dangerous
  goods by rail.
• Development of co-operative agreements
• DoL
• SAPS
• DME
• NNR
• Determination of fee structure for permits

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Key Challenges

• 1. State of infrastructure rolling stock
• 2. Security
• 3. Enforcement of the Act
• 4. Gautrain Rapid Rail Project
• 5. Intro of competition in rail sector Freight
  Logistics Strategy
• MTEF Budget
• RSR Sustainability / Funding

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1. State of infrastructure rolling stock

• Vandalism and theft
• Maintenance cycles compromised
• Service worthiness
• Branch line infrastructure neglected
• Sustainable replacement strategy for commuter
  rolling stock
• Creative management to maximise what exists

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2. Security

• Security in trains major problem.
• Role identification of RSR, SAPS and Operators
• Co-operative Agreement with SAPS

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3. Enforcement of the Act

• Issue notices generally weak enforcement
  mechanism.
• Act provides for use of the criminal justice
  system
• Propose regulations for the imposition of fines

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5. Gautrain Rapid Rail Project

• Unique technology for South Africa
• Unique operating parameters
• Evaluation of project from a safety perspective
• Agreeing on standards
• Acceptance of the risk management processes,
  including risk assessments and risk control
  strategies
• Expertise to be acquired for the above

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6. High Safety Risks

• Level Crossings
• People struck by trains
• Dangerous goods
• Security

17
7. MTEF Budget

• Current provisions for RSR inadequate
• 2005/06
• Allocated R 20.00m
• 2006/07
• Allocated R 21.20m
• 2007/08
• Allocated R 22.26m

18
Organisational Matters

• Strategic Plan approved by board
• Organisational Structure approved (59 positions)
• Executives appointed 6
• Other positions 7
• Critical positions advertised 26 positions
• Board 2 vacancies organised labour, financial
  expert
• Interim Policies developed
• HR
• Procurement
• Finance

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Organigram
20
Financial Status of RSR
2003/04 2004/05 2005/06
R000 R000 R000
Grants 10,000 15,000 20,000
Expenditure 2,763 6,573 ---------
Surplus 7,237 8,427 ---------
Add surplus 7,237 15,664
Cash available (31 March 2005 35,664
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Auditor-Generals findings (04/05) and corrective
measures taken.

• No internal audit function
• Processing an appointment of internal auditing
  service as an outsourced function.
• Procurement policy not compliant with supply
  chain management framework
• Currently aligning policy.

22
Auditor-Generals findings (04/05) and corrective
measures taken.

• Proper asset control not adhered to
• A asset register system has been created.
• No prior written approval from NT on accumulated
  surplus funds
• Request for ex-post facto approval from NT.

23
Auditor-Generals findings (04/05) and corrective
measures taken.

• No materiality framework developed.
• Materiality framework in place.

24
Auditor-Generals findings (04/05) and corrective
measures taken.

• Exp not in accordance with approved budget.
• Budget control measures have been put in place
  (cost centres created, created budget control
  position)
• Annual report not submitted (03/04)
• Report submitted and tabled in Parliament.

25
Auditor-Generals findings (04/05) and corrective
measures taken.

• Audit committee composition not meeting
  requirements.
• Established a properly constituted audit
  committee.
• Quarterly reports excluded extent of compliance
  with PFMA
• Reports to adhere to requirements.

26
Auditor-Generals findings (04/05) and corrective
measures taken.

• Audit committee composition not meeting
  requirements.
• Established a properly constituted audit
  committee.
• Quarterly reports excluded extent of compliance
  with PFMA
• Reports to adhere to requirements.

27
Auditor-Generals findings (04/05) and corrective
measures taken.

• No risk assessment conducted
• Part of the TOR for the internal audit function.
• Quarterly reports excluded extent of compliance
  with PFMA
• Reports to adhere to requirements.

28
State of Safety

• Information captured on preliminary data base
  (forerunner to NIMS)
• Occurrences captured in 12 categories
• Trends are indicative, but not absolute
• Selected a sample of indicators as examples of
  trend analyses to be done

29
Level Crossing Occurrences

• Inconsistent application of signage and warning
  devices
• Accountabilities ill defined
• Propose to create a working group to develop
  regulations

30
Level Crossings

• Illegal level crossings
• Inconsistent standards
• Preliminary stats
• 2003/04 161 incidents
• 2004/05 171 incidents

31
People struck by trains

• Informal settlements
• Inadequate provision of access across tracks
• Community awareness programmes
• Regulations to control informal settlements
  posing threat to safety
• 2003/04 582
• 2004/05 455

32
Unlawful occupation of land

• Track integrity undermined
• OHTE cables stolen
• Dangerous for both occupants and train operations

33
Walking on the tracks

• Need safety included in schools curriculum
• Access across tracks not available?

34
Informal Settlement

• Left hand line abandoned
• Propose community awareness programmes
• Financial assistance?

35
Security Related

• Includes personal safety occurrences and asset
  related occurrences
• Propose Co-operative Agreement with SAPS to focus
  on security occurrences that focus on safety and
  vice versa
• Act focuses on safety, but recognises there is a
  relationship between Safety and Security
• 2003/04 people related 400
• asset related 2016
• 2004/05 people related 577
• asset related 2166

36
Fencing

• Children next to line
• No fencing
• Community awareness programmes

37
Informal Settlement

• Left hand line abandoned
• Propose community awareness programmes
• Financial assistance?

38
Security Related

• Includes personal safety occurrences and asset
  related occurrences
• Propose Co-operative Agreement with SAPS to focus
  on security occurrences that focus on safety and
  vice versa
• Act focuses on safety, but recognises there is a
  relationship between Safety and Security

39
Safety and Security

• Holding Doors open
• Hanging out of train

40
Safety and Security

• Holding doors open
• Damages mechanism
• Dangerous
• Allows criminal element to throw people off trains

41
Collision Rate

• Indication of a parameter that will be measured
• Not benchmarked
• Increase in rate may be attributable to improved
  reporting and not more occurrences

42
Derailment Rate (Passengers)

• Indication of a parameter that will be measured
• Not benchmarked
• Decrease indicated

43
Derailment Rate (Freight)

• Indication of a parameter that will be measured
• Not benchmarked

44
Freight train derailment

• Challenge is to determine root causes
• Management system failure
• Human factors
• Training
• Working conditions
• Attitude
• Etc.
• Technical failure
• Maintenance
• Loading error
• other

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Dangerous Goods
46
Dangerous Goods
47
Dangerous Goods
48
Safe and Secure!
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Conclusion and Commitment

• Challenges have been identified
• Task is immense but not impossible provided
• We appoint suitable staff
• The industry continues to support the RSR
• Required funds are made available
• We commit the RSR to meet the challenges