Gauteng SDI Rail Link - Gautrain

GAUTENG PROVINCIAL GOVERNMENTDepartment of Transport and Public WorksGauteng SDI Rail LinkPlanning and Implementation StudyINCEPTION REPORTJUNE 2000

CONTENTS1. INTRODUCTION1.1 Announcement of the Project ........................................................................... 11.2 An important Project ......................................................................................... 11.3 Appointment of Consultants ............................................................................. 31.4 Structure of this Inception Report ..................................................................... 42. BACKGROUND2.1 Previous Provincial Studies .............................................................................. 62.2 Events leading to the Project............................................................................ 62.3 Pre-Feasibility Study......................................................................................... 73. IMPORTANT DEPARTURE POINTS AND CONSIDERATIONS3.1 Gauteng Provincial Spatial Development Initiatives (SDI’s) .............................93.2 Gauteng Spatial Development Framework..................................................... 103.3 Government Policy, Legislation and other Requirements............................... 183.4 Strategic Objectives........................................................................................ 214. PROJECT CONCEPT (SCOPE)4.1 Purpose of the Gauteng SDI Rail Link............................................................ 224.2 The Study Area............................................................................................... 224.3 Market Segmentation (market to be served) .................................................. 244.4 Relationship and Compatibility with existing rail systems ............................... 264.5 Alternative route alignments and station locations.......................................... 284.6 Station Development Concepts and surrounding Land Use ........................... 314.7 Feeder and Distributor systems at stations ....................................................334.8 Technology..................................................................................................... 354.9 Safety and Security ........................................................................................ 354.10 Light freight..................................................................................................... 365. IMPLEMENTATION CONSIDERATIONS AND PARAMETERS5.1 Feasibility and Bankability .............................................................................. 375.2 Risks .............................................................................................................. 395.3 Legal Aspects, including obtaining Right-of-Way ........................................... 425.4 Role of Government and the Private Sector, including PPP’s ........................ 435.5 Implementation Programme ........................................................................... 44

6. BUSINESS PLAN AND STUDY DESIGN6.1 Introduction .................................................................................................... 486.2 Study Goals and Deliverables ........................................................................ 496.3 Study Objectives ............................................................................................ 496.4 Study Approach and Method..........................................................................526.5 Study Programme .......................................................................................... 596.6 Project Management Structure....................................................................... 636.7 Internal Project Management Structure.......................................................... 686.8 Consultative Programme................................................................................ 68CONCLUSION................................................................................................ 71EXECUTIVE SUMMARY ........................................................................... (i)-(v)

11. INTRODUCTION1.1 ANNOUNCEMENT OF THE PROJECTIn his address at the opening of the Gauteng Legislature on 14 February2000, Premier Mbhazima Shilowa announced an exciting venture, which willlink Pretoria, Johannesburg and Johannesburg International Airport by rail,namely the Gauteng SDI Rail Link. He announced it as one of the ten SDIinitiatives of the Gauteng Provincial Government. The Premier said thatfollowing a pre-feasibility study, which was concluded last year; acomprehensive study would be commenced with early this year, with the aimto put out a Request for Proposals next year.1.2 AN IMPORTANT PROJECTThis project is much more than only a transport project. It must beapproached in the light of the three strategic priorities of the GautengProvincial Government, namely• Accelerated economic growth, development and infrastructure delivery,with emphasis on job creation• Quality service delivery• Good governance.As will become clear in this document, this project has the potential to fullymeet the requirements of these three priorities.Secondly the project is one of the ten Spatial Development Initiative (SDI)Projects of the Gauteng Provincial Government, which, inter alia, have as goalto promote and enhance economic growth, development and job creation.When the Premier announced the Gauteng SDI Rail Link as one of the tenSDI initiatives, he said that all of them have a positive economic meaning forall the people in the Province. He added that the SDI’s will help to reverse thede-industrialisation process, and that the provision of bulk infrastructure willassist with the rebuilding of the economy.Gauteng SDI Rail Link – Inception Report, 15 June 2000

2This project will further provide opportunities for SMME’s, for more labourintensive project designs, for creating opportunities to build the partnershipbetween the public and private sectors, and for assisting and promotingtourism – all goals of Government.But then it is also a very important transport project. When he announced theproject, the Premier said that it is part of government’s commitment to easecongestion on the roads, improve the movement of goods and persons, andpromote easy connection between some of the cities in Gauteng.The area between Pretoria and Johannesburg is one of the fastest growingareas in the country, and the potential for further growth is excellent.Additional transport capacity is urgently required, as is evident from thesevere traffic congestion on the freeways and main roads passing through thearea. Such additional capacity should not only be provided through buildingmore roads. It is the explicit policy of Government to promote publictransport, inter alia by ensuring the provision of adequate infrastructure,facilities and services. This project can be a very forceful illustration ofGovernment’s commitment to promote public transport.This project has the potential to assist in improving the image of publictransport in Gauteng and South Africa, of increasing accessibility levels, andof giving structure to development in the area through the integration of landuse and transport. A rail link such as this cannot be successful if propercollector distributor services are not provided at the different stations. Modalintegration, which includes through ticketing, integrated scheduling, integratedinformation systems and proper transfer facilities, will be an important part ofthe project.In this project the co-operation between the different spheres of governmentwill be extremely important and will be an integral part of the study design andexecution. Similarly co-operation with all other stakeholders are considered tobe essential, including representatives of the different modes of transport andpublic transport.Gauteng SDI Rail Link – Inception Report, 15 June 2000

31.3 APPOINTMENT OF CONSULTANTSA consortium of consultants was appointed on 26 April 2000 to assist theGauteng Department of Transport and Public Works with the execution of thisproject. These consultants are:• Khuthele Projects• Arcus-Gibb• Lebone Engineering.The consultants have extensive experience with public transport and railprojects, and transportation planning in general. Arcus-Gibb, a Law-GibbGroup member, will also involve Gibb-Rail, a leading international railwayconsultancy based in the UK, in the project. Khuthele Projects will undertakethe project leadership and management amongst the consultants.The multi-disciplinary nature of this project is fully recognised. The appointedconsultants are to a certain extent multi-disciplinary, and where it is not thecase, other consultants will be appointed as sub-contractors to the mainconsultants, with the approval of the Department. Two such consultants havealready been appointed, namely:• APS Plan Africa, Town and Regional Planning Consultants, who are alsothe consultants for the Gauteng Provincial Government in the developmentof the Gauteng Spatial Development Framework. APS Plan Africa willwork in close collaboration with the town planners of the appointedconsultants.• Equinox Communication who will assist with public relations,communication and consultation. They have had extensive experience intransportation projects, also within the study area.The consultants are organised in an effective team, as can be seen from theBusiness Plan and Study Design later in this document. The complexity ofthe project and the very tight and limited time frames in which the study mustbe completed, require extremely well managed, effective and efficientteamwork.Gauteng SDI Rail Link – Inception Report, 15 June 2000

4Gautrans itself will be very involved in the execution of the project. The Headof the Department, Mr. Jack van der Merwe, assisted by a number of hissenior officials will lead the project and will be directly involved with the projecton a continuous basis.Regular progress reports on the project will be submitted to the MEC forTransport and Public Works, Min. Khabisi Mosunkutu, who will report to theProvincial Cabinet and the Premier on a regular basis.It should also be recognised that this Gauteng SDI Rail Link is one of ten SDIprojects. The whole SDI programme falls within the Gauteng Department ofFinance and Economic Affairs who has appointed an SDI co-ordinator toundertake the necessary co-ordination between the SDI projects. This projectwill therefore be undertaken in close collaboration with the Department ofFinance and Economic Affairs and its SDI-Co-ordinator.As mentioned before, the Gauteng Province and its consultants will executethis project in close co-operation with all roleplayers. The Metropolitan andServices Councils, the National Department of Transport, and the SouthAfrican Rail Commuter Corporation are a few of the institutions that will befully involved.1.4 THE PURPOSE AND STRUCTURE OF THIS INCEPTION REPORTThe purpose of this Inception Report is twofold, namely:Firstly to focus the scope of the study, by providing an understanding of thefollowing aspects of the study:• The project concept in terms of purpose and function• The Study scope• The points of departure• Assumptions and pointers accepted by the Study TeamSecondly to provide the Business Plan and Study Design of the project,containing the deliverables, the approach, the programme and the projectmanagement and consultation structures.Gauteng SDI Rail Link – Inception Report, 15 June 2000

5This report consists of six chapters. Following this introductory chapter, theother chapters deal with the following:• Chapter 2 provides some of the background leading up to this study. Itrefers to previous provincial studies and provides a very brief summary ofthe outcome of the pre-feasibility study.• There are a number of important departure points and considerationswhich will influence this study and which are discussed in Chapter 3.• Chapter 4 discusses a number of key issues in order to get clarity on theproject concept and to narrow the scope of the project.• In Chapter 5, some of the considerations and parameters affectingimplementation are discussed.• The last chapter of this report deals with the Business Plan and StudyDesign, providing the goals and deliverables, objectives, methodology,programme, organisational structure and consultation process.Gauteng SDI Rail Link – Inception Report, 15 June 2000

62. BACKGROUND INFORMATION2.1 PREVIOUS PROVINCIAL STUDIESA number of previous studies emphasised the need for this corridor betweenPretoria and Johannesburg to have an effective mass transportation system.The original PWV-Transportation Study done during the mid seventies,planned route K73, a major north-south arterial route to the west of BenSchoeman (N1), to be suitable for a possible future rail line. In the earlynineties the Vectura Study highlighted this corridor as one of the ten mostimportant provincial transport corridors in Gauteng.The Gauteng Toll Road Strategy also refers to the need for public transport inthis corridor. The intention is that public transport will augment the additionalroad capacity, and will ensure that Gauteng develops to its full potential2.2 EVENTS LEADING TO THE PROJECTFor the past few years the Johannesburg – Pretoria corridor, and to a lesserextent the corridor to the Johannesburg International Airport, has been thefastest growing development area in South Africa. It has assisted Gauteng togrow economically faster than the other provinces. It clearly demonstrates theinteraction between transport capacity, accessibility and mobility – on the onehand – and, land-use and economic development – on the other hand.However, recently two observations became very evident:(a) Although many companies have located in the corridor and the area underconsideration, the area is not adequately served with public transport forthe people who cannot afford cars or private transport.(b) The increasing road traffic congestion is acting as a limitation to furtherdevelopment, and may soon start to strangle the development rate.The Gauteng Cabinet recently adopted a toll road strategy. This wouldprovide part of the road capacity required. Notwithstanding this, thepromotion of public transport in this corridor, and also the need to ensure thatGauteng SDI Rail Link – Inception Report, 15 June 2000

7all people can access this corridor, is of extreme importance, particularly forbusiness, for tourists, and for commuters.A number of international government and private sector representatives haveindicated their willingness to be involved and to support the development of arail transport system in this corridor. Representatives have approachedGautrans from countries such as Germany, France and Japan, who allindicated that a rail system in this corridor appears to be feasible, and thatthey would like to investigate the opportunities that such a rail system wouldoffer.2.3 PRE-FEASIBILITY STUDYWhen the first Premier of the new Gauteng Government visited Germany anumber of years ago, a Twinning Agreement between Gauteng and the Stateof Bavaria was signed. During the first meeting, the Gauteng Rail Link wasidentified as one of the first opportunities for co-operation. At a discussionlate during 1998 between representatives from Gauteng and the BavarianState Government, it was agreed that the Bavarian Government wouldappoint independent German consultants to undertake a Pre-Feasibility Studyof this project. This was done in terms of the Twinning Agreement.The main aims of the pre-feasibility study were to determine:• “whether or not the implementation of a new rail system in this corridor isjustified and feasible”, and• “whether further investigations on the basis of a comprehensive feasibilitystudy need to be done.”In addition, the need was expressed to determine whether it was financiallyand economically worthwhile to fund this feasibility study, and to explorealternative means to do so.The pre-feasibility study was completed during September 1999, and thefollowing were some of the most important conclusions:Gauteng SDI Rail Link – Inception Report, 15 June 2000

8• “Even the construction of a new toll road in this corridor (the PWV-9 roadbetween Johannesburg and Pretoria, west of the N1) would not solve thetransport problem for the future. It is, therefore, indispensable tocomplete the existing transport system by means of a public transportsystem that would be independent from the existing road network.”• “As shown in the pre-feasibility assessments, Alternative 3 (a route fromSandton to Pretoria) is likely to yield coverage of the total operating costsand part of the investment costs of a new rail system by fare revenues,whereas implementation of Alternative 2 (a route from Sandton to Pretoriaplus a link to JIA) would presumably result in coverage of a high portion ofthe operating costs only”.• “… taking into account the economic and environmental benefits accruingusually from implementation of mass transit systems in highly loadedcorridors (savings in travel time, accident cost, private vehicle operatingcost, air pollution, noise) the rough financial evaluation of Alternatives 2and 3 indicates that in all probability the railway project is feasible ineconomic terms”.• “Moreover the anticipated railway project would strongly supportindividual economic zones in the context of the Spatial DevelopmentInitiative ….’• “The afore-mentioned results of pre-feasibility study led to the conclusionthat further investigations are necessary and justified. It is thereforerecommended, to carry out the next step, a more comprehensivefeasibility study …”Gauteng SDI Rail Link – Inception Report, 15 June 2000

93. IMPORTANT DEPARTURE POINTS ANDCONSIDERATIONS3.1 GAUTENG PROVINCIAL SPATIAL DEVELOPMENT INITIATIVESThe Gauteng Provincial Government decided on a Spatial DevelopmentInitiative (SDI) strategy in order to change the economic profile in Gauteng,enhance economic growth, promote development and create employmentopportunities.Ten Spatial Development Initiatives had been identified. (See Figure 1 on thefollowing page.) They are:• Newtown Precinct Redevelopment and Metro Mall• City Deep Industrial Development Zone• Johannesburg International Airport Industrial Development Zone• Alrode/Wadeville Industrial Regeneration Corridor• Rosslyn Auto Cluster / Urban Port• Pretoria Innovation Hub• The Big Five Game Reserve• World Heritage Site at the Sterkfontein Caves• Constitutional Hill in Johannesburg• Gauteng SDI Rail Link.It will be important for the Gauteng SDI Rail Link to ensure that its SDIobjectives are met and that, where possible, alignment with the other SDIprojects is achieved.Gauteng SDI Rail Link – Inception Report, 15 June 2000

10LOCATION OF SDI’S – FIGURE 1Gauteng SDI Rail Link – Inception Report, 15 June 2000

113.2 THE GAUTENG SPATIAL DEVELOPMENT FRAMEWORK3.2.1 Critical factorsFive critical factors were used to direct the Gauteng Spatial DevelopmentFramework (GSDF). These factors are the guidelines or principles that willinform the future growth path of the province, and their implementation willproduce a particular spatial development pattern. Four of the five criticalfactors are discussed below, whereas the fifth one, being rural developmentbeyond the urban edge, is not directly applicable in respect of the GautengSDI Rail Link.• Resource based economic developmentIn order to ensure Gauteng’s advancement internationally, and to achievebalanced development in the province, economic development based onthe key resources offered by the province, should be promoted. Thus,the three strategic thrusts as outlined in the Gauteng ProvincialGovernment’s Trade and Industrial Strategy 1997, should be pursued.Strategic Thrust 1: The re-alignment of the manufacturing sector awayfrom traditional heavy industry input markets and low value-addedproduction, towards sophisticated, high value added production, as wellas the development of other high value added production activities in theagriculture and mineral sectors.Strategic Thrust 2: The development of the province as the smart centreof the country with specific emphasis on: information technology,telecommunications equipment, research and development and biomedicalindustries.Strategic Thrust 3: The development of the finance and businessservice sector with specific emphasis on: financial services andtechnology, auxiliary business services and technology, corporate headoffice location and business tourism.Important locational criteria for the market include aspects such as highvisibility, optimal accessibility, proximity to airports and rail, increasedsecurity largely in the form of security estates or parks, and the focus ofthe commercial property market as directed by investors and developers.Gauteng SDI Rail Link – Inception Report, 15 June 2000

12• Contained urban growthThe notion to contain urban growth is embedded in governmentlegislation and policy, and is largely supported by all sectors of theprovince. This is supported by the fact that peripheral urbandevelopment is costly and particularly so for local government, which isthe provider of bulk infrastructure and services. There is generalconsensus in the planning arena that unlimited urban sprawl should becontained.• Re-direction of urban growthA necessity exists to re-direct urban growth. The aim is to densify theexisting urban areas, stabilise and limit growth in the economically nonviableareas, and achieve growth on vacant land within the economicgrowth sphere, as contained by the urban edge, in order to develop afunctional and sustainable urban system.• Mobility and accessibilityMobility is the ability to move people and goods from point A to B and isassociated with the use of vehicles for transport. Linked to this is theissue of accessibility, and access to mobility in particular. This is amatter of concern, due to the fact that a limitation to access, limits accessto job opportunities, social facilities, etc.In order to implement the four critical factors, which structure thedevelopment of the province, mobility and access need to underpin theprinciples of development. Hence, road and rail development should begeared at implementing the proposals contained above. However, sinceit will take major intervention to re-direct the growth pattern, thedevelopment of road and rail should equally facilitate the current situationand growth path.Hence, mobility and accessibility will have to focus on two criticaldevelopment paths. Firstly, they will have to support the existing urbanpattern, by improving access to the townships in particular and increasingmobility to job opportunities, and secondly, will have to provide improvedGauteng SDI Rail Link – Inception Report, 15 June 2000

13infrastructure within the core economic focus area to cater for theprojected growth in those areas. Hence, rail and road infrastructure willhave to be improved in the core area to cater for enhanced movementand access.3.2.2 The final spatial development planThe Final Spatial Development Framework is illustrated on Figure 2a andprovides the proposed development focus of the province.• InterventionsThe GSDF draws definite conclusions on the development trends thatdominate in Gauteng, and with respect thereto, makes certaindevelopment proposals that indicate a way forward for the developmentof the province. They are based on the critical factors discussed earlier.- Containing and compacting the City- Economic Growth- Growth in New Areas- Rural areas• Access and mobilityWith regard to access and mobility, the GSDF states that we will alwaysbe highly reliant on transportation owing to the dispersed structure of ourcities. However, there is an undeniable need for an improved publictransport system, which will become increasingly important and urgentin the compact city. Intervention in this regard is required, in order tobring people closer to opportunities and into the mainstream of theeconomy. Access is essential and mobility is constrained due to thecost thereof.Gauteng SDI Rail Link – Inception Report, 15 June 2000

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153.2.3 Summary of Spatial Development FrameworkFundamentally the Final Plan proposes that:! Gauteng should acknowledge the pivotal role the economy is playing inallowing the province to provide for its people, and that without economicgrowth such provision will decrease and poverty will increase, whilsthealth conditions worsen and education levels decline. Thus it is vital thateconomic growth and development be motivated and encouraged byaccessing the particular resources Gauteng offers.! Urban sprawl and peripheral growth be contained, and hence, that anurban edge be delineated which would determine the outer perimeter ofurban development. This is not only sound spatial planning, but makesfinancial sense, owing to the cost savings achieved by not having toextend services, infrastructure and facilities to the periphery.! People should be brought closer to their job opportunities, and hence, tothe economic focus areas, while their displacement from the core urbanenvironment should be halted. Thus, urban growth should be re-directedto allow for a more efficient and effective settlement pattern to beestablished.! Mobility and accessibility are very important given the fact that Gauteng isa highly mobile society and reliant on movement. It is deemed that fargreater integration between land use and transportation planning needs tooccur to optimise accessibility and mobility in the province.3.2.4 Specific Spatial Development Considerations3.2.4.1 Points of departure• The Gauteng Spatial Development Framework suggests that theGauteng SDI Rail Link could and should play an important role toachieve a more sustainable spatial development structure inGauteng.Gauteng SDI Rail Link – Inception Report, 15 June 2000

16• With this in mind, the following points of departure should form thebasis for the spatial considerations related to the project.- The rail should assist in supporting economic development.- It should assist in improving accessibility and mobility.- It should serve as a catalyst for sustainable land development.3.2.4.2 Main considerationsIn order to achieve a focussed approach to the project the main landuse considerations for a possible alignment of the rail are the following:• Location of main population concentrations.• Location of main areas of employment.• Main movement patterns.• Natural environment.• Development trends related to residential areas and employmentareas3.2.4.3 Development conceptThe above considerations have indicated that the Gauteng SDI RailLink should be a component of an integrated system, which willcontribute in the following manner as regards spatial development.• Regeneration of CBD’s.• Development of “new town” core areas.• Strengthening of existing vibrant nodes.It therefore suggests that the system will consist of a “main line” (theGauteng SDI Rail Link) and a system of “link lines”.The main line will link the major areas of job opportunities and higherdensity residential areas, while the “link lines” will serve to link lowerdensity residential areas to the “main line” (refer Figure 2b).Gauteng SDI Rail Link – Inception Report, 15 June 2000

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183.2.4.4 Main nodesIf the above concept is pursued then the following nodes areconsidered as important in the “main line” development.• Johannesburg CBD• Pretoria CBD• Johannesburg International Airport• Sandton CBD• Midrand CBD• Tembisa• CenturionThe following nodes, although falling outside the direct “main line”development, will also play an important role, with possible extensionsto be considered now or in the future.• Soweto (Bara Link)• Rosslyn (Urban Port)• Fourways/Woodmead• Menlyn• City Deep area• EastgateThe above concepts and nodes will be the subject of further spatialdevelopment models to be developed in support of the Gauteng SDIRail Link.3.3 GOVERNMENT POLICY, LEGISLATION AND OTHERREQUIREMENTS3.3.1 Policy and LegislationCurrent government policy directives clearly indicate the necessity ofpromoting public transport. This is evident from all the main policy documentsof government. These main policy documents were analysed to ensure thatthis project addresses the most important requirements in this regard.The following relevant national and provincial policy documents wereanalysed, with a view to identifying the most significant government objectivesapplicable to this project.Gauteng SDI Rail Link – Inception Report, 15 June 2000

19Nationali) Reconstruction and Development Programme (RDP), 1994.ii) Growth, Employment and Redistribution Policy Documentation (GEAR).iii) ANC Manifesto 1999.iv) White Paper on National Transport Policy, 1996.v) Moving South Africa (MSA), 1999.Provinciali) Gauteng White Paper on Transport Policy, 1997.ii) Gauteng Spatial Development Initiatives (SDI’s), 1999.iii) Gauteng Rail Development Strategy, 1999.The table below distinguishes between extremely high priority and highpriority objectives. Further, the relevance of each objective in terms of theGauteng SDI Rail Link is provided.OBJECTIVETOTALRELEVANCESIGNIFICANTA. EXTREMELY HIGH PRIORITY OBJECTIVES1. Building the economy and creating jobs #2. Reconstruction and development #B. HIGH PRIORITY OBJECTIVES3. Building a better living environment #4. Integration and sustainability #5. Customer satisfaction #6. Effectiveness and efficiency #7. Effective land use planning #8. Optimal deployment of modes #9. Integrated transport and land use planning #10. Improved safety #11. Human resources development #12. Delivery of basic needs #13. Combating crime and corruption #14. Transformation #15. Minimised negative side effects #16. Regulation and control #17. Sustainable funding #Gauteng SDI Rail Link – Inception Report, 15 June 2000

20It is expected that the National Land Transport Transition Act will bepromulgated soon. This legislation contains a number of provisions whereMECs and the future Transport Authorities (currently the planning authorities)will be required to promote public transport and display measures put in place.The Development Facilitation Act is important land-use developmentlegislation to be considered in this study.The responsibility for implementing public transport infrastructure and serviceimprovement projects is mainly that of local government, as these are mostlyof a local nature. At a provincial level, the focus is mainly on the services thatcross the metropolitan council boundaries and on co-operation betweenmetropolitan areas.This project is an ideal opportunity for Province to be involved in a visiblepublic transport project, and to implement government policy noticeably.3.3.2 Requirements for integrated transport planningAt the provincial level, the first edition of the Provincial Land TransportFramework and Gauteng Transport Co-ordination Plan were completed in1998. While large parts of these planning documents are still relevant today,they primarily deal with broad policy issues and not with the practicalprovincial-wide responsibilities of Gautrans. What is required is a refocus onthe Provincial Land Transport Framework in order to include present planninginitiatives of the Province including, for example, the Gauteng Bus MasterPlan, the Gauteng Modal Integration Strategy, etc. The Gauteng Rail LinkProject should likewise be included in the next revision of the Provincial LandTransport Framework. In this manner the Provincial Land TransportFramework will, in practical terms, guide and direct the preparation ofIntegrated Transport Plans at the metropolitan level. The refinement of theProvincial Land Transport Framework is currently being considered.The preparation of the first ITPs by each of the six metropolitan transportareas in Gauteng is generally well advanced. One area (EGSC) has alreadysubmitted its plans to Gautrans, whilst most of the other plans are expected tobe completed by September 2000.Gauteng SDI Rail Link – Inception Report, 15 June 2000

21The next round of ITP refinement will probably start during 2001 and shouldclearly be guided by the Provincial Land Transport Framework, which willinclude the Gauteng Rail Link Project. The further development of theGauteng Rail Link Project at the metropolitan level in terms of its integration ofthe local public transport services, should be detailed in the relevant ITPs and,should in this manner, become part of the metropolitan transport system.3.4 STRATEGIC OBJECTIVES TO BE ADDRESSEDThe following are some of the most important strategic objectives that havebeen identified:3.4.1 Broad strategic objectives• To determine how this project can facilitate development in the Province• To assess its contribution to job-creation (direct and indirect)• To assist in unlocking the economic development potential of the GautengSDIs• To improve accessibility and mobility in this development corridor3.4.2 Specific objectives of the implementation project• To promote the use of public transport• To develop an integrated public transport system, inter alia through thefeeder and distribution systems• To integrate land-use and transport planning in the corridor• To identify station precincts with development potential, and use of theconcept of value capture.Gauteng SDI Rail Link – Inception Report, 15 June 2000

224. PROJECT CONCEPT AND SCOPE4.1 PURPOSE OF THE GAUTENG SDI RAIL LINKThe Gauteng SDI Rail Link Project deals with the planning and provision of amodern rail link between Pretoria, Johannesburg and JohannesburgInternational Airport. These three areas are the main centres to be includedin the project, but the study will investigate the inclusion of other importantcentres, mainly between the above main centres, but also outside thebackbone system and even the Study Area, if found to be appropriate.This project will investigate the utilisation of appropriate and tested state-oftheart modern technology, that can provide an excellent and acceptableservice to the passenger, at competitive travel times and speeds, andaffordable to both the passenger and government. Comfort, safety andsecurity, and accessibility are some of the aspects that will be given highpriority.As an SDI project it will also have the strategic objective of promotingeconomic growth, development and employment creation.4.2 THE STUDY AREAThe Study Area broadly comprises the triangular geographic area betweenPretoria, Johannesburg and Johannesburg International Airport (JIA), asgraphically shown in Figure 3. Apart from the three main centres mentionedabove, the Study Area includes important nodes such as Sandton, Alexandra,Kempton Park, Midrand, Tembisa and Centurion. It contains 4 SDI’s, of whichthe SDI Rail Link is one. There are therefore 6 SDI’s outside the Study Area.Gauteng SDI Rail Link – Inception Report, 15 June 2000

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24In Figure 3, arrows indicate other areas, nodes, and activity centres outsidethe Study Area, which will have to be considered for linkage now or in thefuture. This includes in the South-West, Soweto and the FNB-Stadium, whichwill be very important if the 2006 World Soccer Cup takes place in SouthAfrica. South of JIA it is the fast growing East Rand. North of Sandton it isthe fast developing Sunninghill Area connecting to the large developments inthe areas of Fourways and Kaya Sands. North-east of Centurion it is the fastdeveloping Menlyn area and north of the Pretoria CBD it is the developmentsnorth of the Magaliesberg, such as the Automotive Cluster and WonderboomAirport, which deserve attention.4.3 MARKET SEGMENTATIONThe purpose of market segmentation in this study is to determine who will orshould use the proposed service, in other words, which market segments.This will then indicate which areas should be served. The setting of farelevels in order to maximise the income will also be addressed. For example,with low tariffs higher volumes may be achieved, and with high tariffs lowvolumes.The following departure points are important:• Although the rail line will pass through certain areas and have stations inspecific areas, the collector distributor systems at stations will ensure thatmost of the larger surrounding areas are covered and made accessible.• There could be different needs on different parts of the network. Theneeds on the JIA – Sandton link would, for example, be quite different fromthe needs on the Johannesburg-Pretoria link.• Cognisance must be taken of certain trip characteristics, including trippurposes, the time the trip is made and the direction of travel. In order tomake the system more viable and optimise the patronage, it would beimportant to target both commuting and non-commuting passengers, peakand off-peak passengers, and also passengers travelling in bothdirections.Gauteng SDI Rail Link – Inception Report, 15 June 2000

25• A service cannot be provided that suits everybody. The choice at the endof the day will be that of the user, whether he/she can use it, want to use itand can afford to use it.The following pointers provide an indication of what the possible marketsegmentation could be:• The project is essentially aimed at economic development. The system,the service and the customers/passengers must in some way promoteeconomic activity.• Many potential passengers are currently car users. The type of service,including its tariffs and travel time, must be such that the car user would bewilling to consider changing to rail. The new rail system must therefore bemarkedly better than the existing rail commuter services. Door-to-doortravel time, including speed is important. In the peak period, when manyof the roads are congested, it must be substantially better than the caralternative, and in the off-peak period it must be at least comparable.• The bias therefore seems to be towards commercial users who can affordthe trip and would be willing to pay for a good service.• Although it currently seems that there should only be one class, the farestructure could have some flexibility, providing for example for cheaperweekly and monthly tickets and allowing a slight differentiation in faresfrom different areas.• Provision should be made for tourists and for airline passengers withbaggage, especially on certain routes and during certain periods.• Fares would be higher than on the existing system. The choice would beentirely that of the user.• The market research and demand calculation will focus more specificallyon the different trip purposes.• To summarise, the study should determine market indicators that willmake the project commercially viable and that will attract foreigninvestment.Gauteng SDI Rail Link – Inception Report, 15 June 2000

264.4 RELATIONSHIP AND COMPATIBILITY WITH EXISTING RAILSYSTEMSThis issue deals mainly with institutional governance and also the integrationof the new system with the existing network and technology. The respectiveroles of Government and the private sector, or public private partnershipoptions, could have been discussed here, but is discussed in a later section.4.4.1 Institutional StructuresWith regard to institutional governance, cognisance must be taken of thedevelopment of passenger rail services over the years in South Africa,together with the respective institutional structures. Currently the SouthAfrican Rail Commuter Corporation, falling under the National Minister ofTransport is the owner/regulator, with Metrorail being the operator. Metrorailis a division of Transnet, falling under the National Minister of PublicEnterprises. With the future concessioning of commuter rail services in thecountry, the institutional framework will undergo further changes, but a finalstructure has not yet been decided upon.Alternative institutional structures for the Gauteng SDI Rail Link will bedeveloped and investigated in this study. The relationship of the SDI Rail Linkstructures with the future commuter institutional structures (currently theSARCC) can be determined when more clarity and finality is available on thelatter. The current intention is that the Gauteng Provincial Government will, atleast initially, own the rail infrastructure and that the rail services will beprovided by the private sector. The relationship with the future TransportAuthorities is considered to be very important and will also be investigated.4.4.2 Integration with existing network and technologyGauteng has an existing commuter rail network and services, divided into twooperational management areas, namely the Pretoria Metrorial region and theWits Metrorial region. For many years it has provided good rail services forthe people it served. It has, however, not kept up to date with modern raildevelopment in many ways. No new rail lines have been built in the last 15years and the rolling stock is on average more than 30 years old. Thequestion in this study is what the integration and co-ordination of the new SDIRail Link would be with the existing network and services.Gauteng SDI Rail Link – Inception Report, 15 June 2000

27Some of the more important characteristics of the current technology are:• The existing gauge is 1067 mm as compared to the international standardof 1435 mm. The minimum horizontal curvature is normally 600 m.• Train control with colour light signalling and a maximum speed of 90 km/h.• Electrical supply is 3 KV dc overhead.The broad approach and some of the possible pointers are:• It should be possible to integrate and co-ordinate the new system with theexisting system. Whether or not it would be a direct linkage onto theexisting lines, or just a transfer at a station, so that passengers would haveto change trains, would depend on a number of aspects, which will beinvestigated in the study.• One of the most important aspects would be to determine whether theexisting South African gauge would be used or whether the standardinternational gauge would be used. There are many advantages anddisadvantages to be considered.• Although the possibility of good second hand rolling stock will beinvestigated, the indications are that most private sector investors wouldnot be very keen to consider it, inter alia because of possible futuremaintenance problems and costs. The chances are therefore good thatthe study will focus more on proven new technology. That would also thendetermine such aspects as minimum horizontal curvature, maximumgradient, maximum speed, etc.• Life-cycle costs and economies of scale would, however, be taken intoconsideration, and will to a large extent determine the most appropriateapproach.• Although there are many factors influencing door-to-door and total traveltime, speed is important. A train speed of 180 km/h or slightly higher atthis stage seems to be applicable to the anticipated type of service. Usingthe term high speed is therefore not appropriate, as it is normallyassociated with the TGV, ICE, Bullet-type trains that can travel at speedsbeyond 300 and even 400 km/h. This is definitely not the type of train thatwill be used here.Gauteng SDI Rail Link – Inception Report, 15 June 2000

28• A new unique image is necessary in order to maximise patronage. Thiswill therefore also influence what type of equipment and service that canbe used, when co-ordination and integration with the existing system isbeing considered.• It also seems most probable that new railway lines will be required for thewhole or most of the new route or network. If that is the case, it could alsohave an influence on the decision with regard to gauge and other factors.• Compatibility or not, as well as integration, will be determined by a largenumber of factors, including gauge, signalling, electrical power supply,rolling stock, implementation time, etc. and will be decided upon at anappropriate stage of the study.4.5 ALTERNATIVE ROUTE ALIGNMENTS AND STATIONLOCATIONSThe following diagram indicates the interaction between market segmentationand route determination, as well as the process to be followed to identifyalternative alignments.Gauteng SDI Rail Link – Inception Report, 15 June 2000

29Although the instruction is to link Pretoria, Johannesburg and JohannesburgInternational Airport, different possible alignments and networks will have tobe investigated in order to select the best alignment. The following are someof the factors to take into consideration.• Provincial planning, such as the Spatial Development Framework,Economic Development Framework, the Housing Strategy and thedifferent Transport Plans.• The land use to be served, directly and through feeder services. Thechoice of station location would largely dictate the rail network and routealignment.• Specific spatial development objectives that will be taken intoconsideration include the regeneration of Central Business Districts, thestrengthening of existing vibrant development nodes as well as new towndevelopment.• Service requirements, including travel time, transfer requirements andintegration with feeder and distributor modes.• Rail network concepts (e.g. lattice and radial), single line concepts (e.g.linear or circular) and its integration with the existing rail network.• Alignment options, influenced by design criteria, land-use constraints andopportunities, topography, and existing rights-of-way such as rail and roadcorridors.• Environmental constraints.• Cost implications with regard to high cost aspects such as landprocurement costs and construction costs with elevated or below groundlevel sections. The high density of development as well as topography ofthe area between Johannesburg and Pretoria limit the possible feasiblealignments of the alignment.• Phased implementation, as well as potential future extensions.• The rail alignment is influenced by operational considerations including themaximum gradient (± 2.5%), minimum curve radius (± 1 200 m) as well asstation spacing. To achieve maximum benefit of the high speed ofoperation, stations are expected to be spaced at 6-10 km intervals.Gauteng SDI Rail Link – Inception Report, 15 June 2000

30The proposed methodology for network and route alignment, as discussed inthe study design, provides for a process whereby approximately three to sixpossible alternatives will be identified and taken through an evaluationprocess. One or two final networks/routes will then be proposed by the end ofAugust, in order to undertake the more detail planning and analysis on them.The following aspects will be of importance in the route/networkdetermination.• First indications are that the broad corridor between Pretoria andJohannesburg, within which alternative alignments will be investigated, willmost probably have as western boundary the Ben Schoeman N1 Freewayand as eastern boundary the existing railway line. The MabopaneCenturion Development Corridor and the K73 route, which has one of thebest vertical alignments, are both to the west of Ben Schoeman and allindications are that they will not generate enough passengers to make theSDI Rail Link feasible. A further rough evaluation will, however, be doneon them before a final decision is taken.• A link to the Sandton CBD area has been specifically identified as animportant market for the rail link.• Where possible existing road and rail corridors will be utilised.• The concept of providing a “backbone system” onto which secondary linesand spurs can be attached would be investigated further.• Even though the intention is to have stations at the largest passengergenerators along the line, proprietary feeder distributor systems at thestations, acting as modal integration transfer stations, are considered anessential part of the main line-haul system.• The possibility of accommodating multiple type services on the main linewill be investigated. This would, for example include express trains notstopping at all stations, with other trains stopping at all stations. It will alsobe investigated whether such an approach would make further secondarystations possible.• At Johannesburg International Airport, the Airports Company of SouthAfrica (ACSA), will be consulted as to how the SDI Rail Link can beintegrated with the development of the airport, also whether it would link toGauteng SDI Rail Link – Inception Report, 15 June 2000

31a western location of the terminal complex, and/or a mid-runway location.The different possibilities around value capture, associated with theterminal station at the airport, will be investigated.• The CBD to CBD connection between Pretoria and Johannesburg, and thepositive influence the SDI Rail Link could have on the revitalisation of thetwo CBD’s, will also be considered in the planning and evaluation.• The process envisaged for the recommendation of a preferred alignmentwould consider the following criteria:− Strategic development considerations− Economic and other development impacts− Implementation barriers, e.g. environmental constraints− Travel demand and revenue forecasts− Capital cost− Operational cost (e.g. number of train sets)− Travel time− Quality of service− Consider total development focus within province− Preliminary market segmentation− Identify development nodes to be linked by project− Identify primary residential areas− Prioritise nodes/stations− Confirm market segmentation− Identify alternative alignment4.6 STATION DEVELOPMENT CONCEPTS AND SURROUNDINGLAND USEThe location of stations is one of the most important aspects in the planning ofthe routes and networks. Also of great importance is the concept of thestation development itself. A station in the right location would normallystimulate development at and around the station, and if some of the addedvalue can be captured in such a way that the SDI Rail Link can directly benefitfrom it, it can improve the feasibility of the project.Gauteng SDI Rail Link – Inception Report, 15 June 2000

32But then the Rail Link owner/manager must be able to control some of thedevelopment or the process. The well-known example of excellent valuecapture at rail stations is Hong Kong. Very few other rail systems have beenable to achieve the same value capture as Hong Kong. Therefore, althoughvalue capture at stations would be an objective, it is realised that it has itslimitations.Station location would primarily be determined by existing development, orfinally decided upon and committed new development. Patronage must beproven to ensure bankability of a project like this.The station location and development will also provide an important interfacewith the local authority. They would have to be fully involved in the location ofstations and the development concept at and around the stations. Matterslike the rezoning of land at and around the stations, as well as the possibilityof bulk service contributions allocated to the station development, must beinvestigated at each station.Depending on whether a station is located at or next to an existingdevelopment, or at an approved new development, would determine whetherthere would be developable land, which can be controlled by the project.Ownership and/or partnerships of development would have to be considered.The legal implications for government to get involved in such developmentwould have to be investigated. The possibility of having the developer fundingor providing the station should also be investigated as the station would havedirect advantages for the development its located at.Value capture on the trip itself, such as baggage book-in, or through servicesprovided at stations (e.g. parking) will also be investigated. The stationdesign is therefore also important.Although it will not affect the direct bankability of the project, the longer termpolicy of government regarding the land use in the areas surrounding stationsare very important for the longer term success of the project. Densification atnodes (and corridors) is essential for increased usage of public transport andthe economic and financial feasibility of public transport projects.Gauteng SDI Rail Link – Inception Report, 15 June 2000

33Such densification would include all types of land use, including residential, toensure trips in both directions during the peak periods. Both provincial andlocal government would have to actively support such an approach of landuse and transport integration. Government has an obligation towards thepromotion of public transport, in terms of the new National Land TransportTransition Act. Such obligation can only be successfully dispensed with ifpublic transport supporting land-use restructuring takes place in the studyarea.4.7 FEEDER AND DISTRIBUTION SYSTEMS AT STATIONSAs mentioned before, the feeder and distribution systems forms a criticallyimportant part of the SDI Rail Link project.Based on existing passenger profiles in the corridor, the larger group ofpotential customers of the SDI Rail Link will either be:• captive to public transport, but can afford to choose the "best option”, or• people who owns a private car, but will opt to use public transport of a highqualityTheir needs, requirements and perceptions are such that they will as a rulenot be satisfied (in terms of quality of service and image) by the publictransport system in its existing form, for travel to and from stations.The question arises whether the existing public transport system and modescan be adapted or restructured to provide the feeder/distributor services? It isbelieved not to be desirable, because:• It may not be cost effective to change the quality and image of theseservices to a level acceptable to the potential market of the new system.• The focus of these services may not primarily be on feeding the stations,but also to capture other markets and satisfy other demands and desirelines• The rail operator may not be able to control or directly influence key issuesrelated to the feeder/distribution services, which may harm its potentialmarket share.Gauteng SDI Rail Link – Inception Report, 15 June 2000

34It is thus concluded that the current public transport services (even if adapted)cannot fulfil the primary role of transporting the larger group of customers toand from the Rail Link stations.Primary public transport feeder/distribution systems should be dedicated,generally of a higher quality than most of the existing public transportservices, and the Rail Link operator must be able to control or significantlyinfluence operational decisions (i.e. frequencies, area coverage, etc.). It isproposed that the dedicated public transport feeder/distribution systemsshould be operated by the Rail Link operator or in an integrated manner byoperators commercially contracted to it.The choice of the modes to be employed for the primary dedicated publictransport feeder/distribution systems should be based on demand percorridor, modal niches and may be a combination of modes.The Rail Link may have to compete directly with high quality taxi type servicesfor the same customer base, e.g. the current 25-seater vehicles being usedbetween Johannesburg and Pretoria and the new "recapitalised" vehicles tobe phased in during the next five years. It is proposed that mechanisms bepursued to bring these operators into an integrated system, to providefeeder/distribution services to stations and not operate in competition.Some of the passengers will find it more convenient and will be prepared touse existing public transport services as feeders/distributors. Attention shouldtherefore be paid to the integration and restructuring of such existing bus andrail transport services to support this project. However, it is proposed that thisbe dealt with more extensively a part of other processes (e.g. railconcessioning, bus contracts and permission strategies).It is proposed that dedicated public transport feeder/distribution servicesprimarily be focused on high-density employment, retail and commercialnodes. A secondary focus may be higher density residential areas, as well assatellite park-and-ride sites in lower density areas. In the lower densityresidential areas many of the potential passengers would use park-and-ridefacilities at the origin station. The feeder/distributor services to these areaswould thus be of lower coverage and intensity.Gauteng SDI Rail Link – Inception Report, 15 June 2000

35Integrated-ticketing and information services, as well as integrated schedules,will be essential between the rail service and the public transportfeeder/distribution services.Depending on the percentage of infrequent (i.e. business people, socialtravellers and tourists) travelling customers and the costs related to providingsuch services (or profit to be made from), attention should be given toproviding the following at all or certain stations, probably through qualitycontrolled concessions:• Metered taxi services,• Dial-and-ride services, and• Car hire.Given the profile of the potential customers, park-and-ride facilities will have tobe provided at most if not at all stations. This must include integrated pricingbetween parking prices and fares. The operations of park-and-ride facilitiesmay also be contracted out by the SDI Rail Link management.Surrounding land uses to stations must be such that it reducefeeder/distribution requirements over time and optimise walking access to therail system.4.8 TECHNOLOGYThe technology to be utilised on the proposed rail network will have to beaimed at achieving firstly the project objectives, but also the specifications intravel times and passenger comfort levels.From a fundamental viewpoint, the technology to be used will comprise themost appropriate modern but tested technology that would result in asustainable and effective system from a life-cycle cost perspective.4.9 SAFETY AND SECURITYIt is important that the necessary actions are taken to positively influence thepassenger’s perception of commuter rail as a safe and secure transportmode.Gauteng SDI Rail Link – Inception Report, 15 June 2000

36Some of the considerations to be taken into account, includes• Target market perceptions• Communication and public liaison• Safe design of system;- Ticketing- Rolling stock- Stations and Station precinct- ParkingPlanning and design principles and specifications will have to bedeveloped.Costing implications will have to be determined.4.10 LIGHT FREIGHTThe Gauteng SDI Rail Link will not accommodate any of the Spoornet freighttrains. However, an investigation will be done on the conveyance of parcelsand containerised high-value goods.If appropriate, off-peak trains with such freight may be accommodated.However the focus will remain on public passenger services, and freightservices will only be allowed if beneficial from a life-cycle-cost perspective,and if no negative impacts are experienced on the passenger services.The study will consider the needs of passenger luggage on the Airport Linkelements of this project.Gauteng SDI Rail Link – Inception Report, 15 June 2000

375. IMPLEMENTATION CONSIDERATIONS ANDPARAMETERS5.1 FEASIBILITY AND BANKABILITYThe Gauteng Cabinet has already accepted the SDI Rail Link as one of theten SDI projects to be implemented if at all possible. Its willingness toimplement has therefore been illustrated and was based on a number ofconsiderations. This is the reason why this study is not only a feasibilitystudy, but also a planning and implementation study leading to a Request forProposals. Therefore it is not only the feasibility for Government that isimportant, but even more so the feasibility and bankability for the privatesector, as they would have to become fully involved.Feasibility can be considered firstly as the general factors that should bepresent to make the project possible (in terms of the broad description offeasibility), and secondly, those criteria that have to be met for by any specificbody to accept the project as feasible.Investors will require a comprehensive feasibility report, stating clearlyGovernments viewpoint on the feasibility of the project, and indicating projectviability with sufficient information to judge for themselves the feasibility of theproject.Feasibility implies that the project can be implemented. This is judged interms of:• Technical FeasibilityTechnical Feasibility means that all the criteria are met which will indicatethat it is technically possible to implement the project.• Economic FeasibilityA project is considered economically feasible, if the benefits accruing tothe broad community (usually measured in monetary terms) is higher thanthe cost of undertaking the project. This, in other words, implies thatconsideration be given whether “it is worth it?”Gauteng SDI Rail Link – Inception Report, 15 June 2000

38For this purpose, the benefits (even the value of life and travel timesavings) have to be quantified and put into monetary terms in order tocompare these with the project costs. In addition, the future value ofmoney must be determined in order to compare future benefits withcurrent construction costs. This is calculated by discounting the futurecosts and calculating nett present values. Taxes and subsidies areignored (as these entail cross allocations within the community beingconsidered which are not applicable for economic feasibility assessments).• Financial ViabilityFinancial analysis concerns the financial position of a person, ororganisation, so that both cost and benefits are measured in terms ofmoney spent or received, regardless of whether the prices are a goodreflection of true value. This kind of analysis includes taxes and subsidies.For this project financial analysis should be done for:- The Operating Company / BOT Concessionaire, who will invest,maintain, operate and manage the rail transport system. This analysisis largely related to the bankability of the project, which is veryimportant to ensure private sector interest and competition in thetender process.- Government (Gauteng Provincial Government and the TransportAuthorities) who will be responsible for some investment, and possiblesubsidy, burdens.- The passengers using the system, who will decide whether or not touse the proposed system.• Socio-political acceptabilityThis measure of feasibility considers the acceptability of the project by theaffected communities. It would include aspects such as whether or not theproject meets government objectives and goals. These could includegoals such as job-creation, transformation, and creating opportunities forSMMEsGauteng SDI Rail Link – Inception Report, 15 June 2000

39The following aspects will have to be studied further:• Acceptable travel fares• What constitute a sufficient number of passengers• Acceptable profit and risk levels for the investors and operators,• Acceptable investment levels• Acceptable and affordable government subsidy levels. This needs tobe investigated further, but at this stage, all indications are that therequirement may be a very high cost coverage from the fare box costs,with regard to operational costs.• No fatal errors as pertaining to the environmental considerations.5.2. RISKSIt is extremely important to identify the risks that may impact on this project assoon as possible. This is firstly important with regard to the feasibility and,secondly to enable the project planning and design tasks to address theserisks. The latter may be with the view of eliminating the risks, or at least tointroduce mitigating measures and to limit the impact of the risks.In addition to the identification of the risks involved, it is important to alsoconsider the allocation of those risks to the appropriate body responsible whois in the best position to deal with such risks.The following risks have provisionally been identified:5.2.1 Patronage RisksA number of factors outside the control of the operator and investors of theproposed system may impact on the patronage of the proposed system.These include:• Permits given to parallel road-based public transport operators• Subsidies given to parallel road-based public transport operatorsGauteng SDI Rail Link – Inception Report, 15 June 2000

40• The congestion levels on the parallel roads. The impact of the introductionof new roads and additional capacity to existing parallel roads (as part ofthe Toll Road Strategy) should be considered.• The level of development (or decay) in the vicinity of stations.• Other land-use related risks.5.2.2 Financial RisksFinancial risks may include the following:• Risks pertaining to the inflation rate• Risks pertaining to the exchange rate (for those components that have tobe imported)• Risks pertaining to land taxes• Risks pertaining to interest rates• Risk resulting from changes in the unemployment rate or factors impactingon affordability• The fares charged by parallel public transport• The cost of fuel vs the cost of electricity• The toll fares charged after the toll strategy is introduced.• The accuracy of the cost estimates.5.2.3 Public Acceptance and RejectionThe public generally accepts public transport improvements. However, publictransport in South Africa does not have a good record, which may result insubstantial resistance to accept the positions of the stations and the railwaylines from the adjacent land owners.5.2.4 Environmental RisksThere are a number of environmental risks that may impact on this project.These should be identified and managed.Gauteng SDI Rail Link – Inception Report, 15 June 2000

415.2.5 Pre-implementation RisksThese risks pertain mostly to the feasibility, and the ability of Government tonegotiate successfully with the preferred bidder. (If not well managed, it maybe possible that delays may be encountered.)Any project has internal risks, that may be controlled, and external risks,outside the control of the project. It is important that these risks be identifiedat an early stage, so as to eliminate risks, even from the planning stages ofthe project. The responsibility for the risks should be carefully considered, soas to determine which party is in the best position to control or limit such arisk.The above list of identified risks will be investigated further during the study,with the aim of limiting the risks. The risks for government will be studiedcarefully, and considered how this would impact on the feasibility of theproject.The risks that will receive special attention include the following:- Permits given to parallel public transport services. (Consider thepossibility to limit parallel permits)- Subsidies given to parallel public transport services. (Obtain anundertaking to limit parallel subsidies and other forms of financial andeconomic support to public transport services by government.)- The taxi-recapitalisation process, and perceived possibility of subsequentchanges to public transport supply and demand. (Clarifying to investorsthat this would not entail unlimited additional supply.)- Acceptable feeder and distributor services- Development controls by government. (Introducing such controls tofacilitate densification at the station nodes.)- The implementation of the Toll Road Strategy and similar impacts onparallel private transport. (This is needed to clearly indicate the relativeadvantages to the investors.)Gauteng SDI Rail Link – Inception Report, 15 June 2000

425.3 LEGAL ASPECTS INCLUDING OBTAINING RIGHT OF WAYThe proposed rail link will require a rail reserve along the alignment which willbe determined as part of this planning and implementation study. Thisalignment will cross different metropolitan authority areas. It will also crossdifferent types of land uses of which some will be open and others developed.Some will be very high valued and others cheaper. Existing servitudes forservices such as electrical supply, telecommunication and pipelines will alsobe crossed.Due to time constraints on the implementation on this project, the onlypractical way to obtain the required rail reserve, would be throughproclamation of the railway line and the expropriation of the required land,which allows for a fair compensation process for land owners. As wasmentioned before, it seems at this stage if the ownership of the infrastructurewould be in the hands of the Provincial Government, at least for the initialperiods.Provincial Government has concurrent legislative competence for publictransport, including rail, in terms of the Constitution of RSA Act. Previouslyprovincial governments were mainly responsible for roads and much of theexisting legislation, therefore, deals with roads, including the right toexpropriate land. Gautrans is currently busy drafting a Gauteng TransportInfrastructure Bill which includes in the definition of transport infrastructure,facilities for the use of trains and its passengers. It provides powers to theMEC to plan, design, construct, control, manage, develop, maintain, protectand rehabilitate transport infrastructure, as well as to expropriate land fortransport infrastructure. The Gauteng Provincial Government will thus havethe power to expropriate land for the construction of railway lines and stations.What is however important, is that the above Bill should be completed assoon as possible and passed by the Gauteng Provincial Legislature. Should aproblem arise with the above process, it can be considered to utilise theexisting SARCC legislation.Gauteng SDI Rail Link – Inception Report, 15 June 2000

43In the planning and implementation of the Gauteng SDI Rail Link differentpieces of legislation will have to be considered. It will also be necessary toidentify legislative obstacles for the project through conducting a legal duediligence. This is necessary in order to avoid unnecessary delays.5.4 RESPECTIVE ROLES OF GOVERNMENT AND THE PRIVATESECTOR, INCLUDING PPP’sIt is the intention of the Gauteng Provincial government to fully involve theprivate sector in the Gauteng SDI Rail Link implementation. Therefore theintention is to end this study with a Request for Proposals from the privatesector, probably in the form of some sort of BOT process.In essence the approach will be to allocate ownership of assets,responsibilities and roles to Government and Private Sector respectively inorder to:• Reduce life cycle cost to Government;• Attract private sector interest – create a bankable deal;• Satisfy public transport needs and enhance economic development;• Transfer risk to the party who can best control it.Aspects which will be considered, include the following:• The different ownership options in respect of land and property, fixed railinfrastructure and rolling stock, including the implications of the differentownership options on matters such as contract duration, risk transfer,competition, control, subsidies, etc.• The different types of risks that can be financed and transferred, includingoperating, interest/renewal and capital investment risks, on operatingcosts, interest/depreciation, short term assets, rolling stock and fixedinfrastructure.• The different options where the revenue would be sufficient to cover, forexample, the operational costs plus a reasonable profit, the operationalcosts plus depreciation, or the operational costs plus some capitalinvestment.Gauteng SDI Rail Link – Inception Report, 15 June 2000

44• The length of a concession in terms of the type of risk transferred and thetypical pay-back periods.Some of the pointers at this stage which will be considered are the following:• Transfer only those risks that the concessionaire can control• Transfer only those risks which the concessionaire can fund• Match concession length to pay-back periods• So far international experience has shown that it may be possible to coveroperating costs and possibly some asset renewal• It may therefore be necessary to free access to assets, but there will be anobligation to return assets in good condition at end• The possibility that government would have to fund the infrastructure orpart of it, will have to be investigated.5.5 IMPLEMENTATION PROJECTThe proposed targeted date for commissioning of the rail service by 2005, andthe proposed deadline (to be operational by the 2006 Soccer World Cup)result in an extremely tight implementation programme. This implies thatthere cannot be any time wastage. Government and other roleplayers will bemade fully aware of the critical constraints so that there can be no wrongexpectations.It is important that from the commencement of the Planning andImplementation Project the time consuming tasks are known, so that theplanning can address these from the onset.In addition, it is important to get an early estimate of the time to completethese tasks, in order to commence with the scheduling thereof. It is, therefor,the intention to get input from international experience on these tasks, once allagree with the list of identified tasks. A best case scenario and a worst casescenario will be developed.Gauteng SDI Rail Link – Inception Report, 15 June 2000

45The following tasks critical to the implementation have provisionally beenidentified:• During or straight after the Planning and Implementation Study- Legislation (new legislation if required)- Land-use zoning / reservation- Land procurement and expropriation- Advertise project / project briefing- Pre-qualification- Bidding period- Negotiations- Contract closure• During or Part of the Bidding Process- Project approval- Budget approval- Legislation (small amendments to existing legislation)- Decision on government role and private sector involvement- Decision specifications (broadly)- Detailed project planning (by bidders)- Prepare detailed project specifications- Prepare tender documentation• As part of the Construction and Implementation Phase- Consortium Formalisation- Detailed Design / Redesign of important elements- Land procurement / expropriation- Earthworks / bridge construction / tunnelling- Permanent way and overheads- Signalling and control systems- Procure and building of rolling stock- Equipment and systems design and commissioning- Testing of systems- Employment of operating personnel- Final commissioningGauteng SDI Rail Link – Inception Report, 15 June 2000

46The previous list of obvious tasks will have to be refined and the Study Teamwill then attempt to obtain examples and other input to estimate the timerequirements. The duration for implementation will be a key element, whichwill be included in the Request for Tenders, and will be used to adjudicate thetenders in order to meet the required deadlines. When the Request forProposals is developed, finality on whether the soccer World Cup willinfluence it will be known. Figure 4 provides an indication of theimplementation of the Project.Gauteng SDI Rail Link – Inception Report, 15 June 2000

Gauteng SDI Rail Link – Inception Report, 15 June 200047

486. BUSINESS PLAN AND STUDY DESIGN1.1 INTRODUCTIONThe Business Plan and Study Design is primarily aimed at ensuring that thescope of the project, as discussed in the preceding chapters, is achieved withinthe framework of the needs of the Gauteng Government.Some of the contents of this chapter were provided in the original brief ofGautrans to the consultants, and the remainder is based on the investigationsundertaken during the first phase of the study.The relationships between the various elements are illustrated in Figure 5.Study DesignScopeIssuesObjectivesDeliverablesProcessProgrammeIdentifyAcceptBudget (R)TaskEnvisioningConceptualPlanningBudget allocationResource allocationTaskConsultantEnvisioningProject Management StructureConsultative Structure and ProcessFigure 5: RelationshipsGauteng SDI Rail Link – Inception Report, 15 June 2000

491.2 STUDY GOALS AND DELIVERABLES1.2.1 Study GoalsThe Study Goals are:• To Confirm Feasibility, and to determine what would be necessary tomake the project more feasible and to attract private sector investment;• To Plan the implementation project, including:– Broad Technical Planning: e.g. station positioning and spacing, routing,fares, technology, etc.– Business Case: e.g. determine PPP Model to be used, funding, etc.; and• To Prepare a Request for Proposal to prospective bidders on theimplementation project.1.2.2 DeliverablesIn addition to this Inception Report, the project will have three main deliverables,namely:• Feasibility analysis to confirm the findings of the pre-feasibility study, withthe focus on Financial Viability and to facilitate Bankability;• Description of the proposed system and the design parameters of theproposed implementation project; and• Request for Proposals from prospective bidders.1.3 STUDY OBJECTIVESThe Study Objectives are categorised into two groups, namely the primarystudy objectives, and other secondary more-specific objectives, as required toachieve the deliverables and as requested specifically by Gautrans and theProject Review Committee.Gauteng SDI Rail Link – Inception Report, 15 June 2000

501.3.1 Primary Study ObjectivesThe primary study objectives are:(1) To undertake the conceptual planning of the project;(2) To confirm the findings of the pre-feasibility study and determine whatis required to make it acceptable and attractive for private sectorinvestment.(3) To determine the project specifications to be implemented and includedin the Request for Proposals for the Gauteng SDI Rail Link, including:• Conceptual Planning• Market Segmentation• Land-use Perspectives and Projections• Route Determination• Travel Demand and Patronage Projections• Location of Stations• Track Alignment• Technology Specification• Modal Integration• Capital Investment and Operational Cost Estimates• Economic and Financial Evaluation• Analysis of Financing and Funding Options (BOT, BOOT, and otherPPP-models)(4) To optimise the development potential of the corridors and nodesinvolved.(5) To determine the financial arrangements, and to clarify the role ofgovernment, particularly with respect to funding.(6) To prepare the specifications for the tender proposals (to be included inthe Request for Proposals).(7) To determine the impact of the Toll Road Strategy (tolling andadditional road capacity) on the proposed rail system, and give inputinto an integrated road and rail development approach.Gauteng SDI Rail Link – Inception Report, 15 June 2000

511.3.2 Secondary More-Specific Study ObjectivesThe secondary, more-specific study objectives are:• To finalise and get agreement on the concept to be used in the detailedplanning and design tasks that will be included during the tender phases,including the market segmentation to be applied.• To plan the operational approach.• To undertake a cost and income analysis.• To identify the environmental considerations.• To identify the risks and challenges, and to formulate recommendations todeal with these risks.• To determine the impact of parallel public transport services.1.3.3 Aspects to be coveredAccording to the Study Brief issued by Gautrans, it was required that –over and above achieving the goals and objectives listed above – thefollowing aspects have to be covered by this project:• Preliminary design of track, and the location and size of stations.• Preliminary specifications of the system, including alternatives.• Station development concepts and value capture principles.• Detailed travel demand estimation for each of the alternativealignments.• Detailed estimation of investment and operational costs.• Detailed analysis of financing options.1.3.4 Initial Departure PointsThe initial points of departure that were stipulated by Gautrans are as follows:• Focus on Economic Development and Job Creation in the final project.• Address also Social Development objectives.• Facilitate Big Business Investment, but optimise involvement of SMMEs(Small, Micro and Medium Enterprises).• Attract foreign investment in the BOT/PPP model to be used.• Cater both for tourists and local people.• Introduce an attractive and unique South African image.Gauteng SDI Rail Link – Inception Report, 15 June 2000

521.4 STUDY APPROACH AND METHOD1.4.1 Project PhasingThe project will have three main phases, namely:• Phase 1: Project Inception [COMPLETED]• Phase 2: Feasibility Assessment• Phase 3: Project Specification and Request for ProposalsPhase 1 culminated in this Project Inception Report.For the first stage of Phase 2, two groups of tasks will be undertakenconcurrently. These two groups are:(1) All the tasks required for the needs assessment, such as demanddetermination, market analysis and revenue projections, and(2) Those tasks needed for the planning of the rail system, including thenetwork planning and route alignment, the technology to be applied(e.g. rolling stock, signalling, traction, etc.), and the operationalconsiderations.The first group of tasks will provide indications on the revenue generation,while the second will give indications of the investment and operationalcosts. A great deal of interaction between these two groups is required toensure that the system is balanced with regard to supply and demand,and to ensure that the best solution for the transportation requirementscan be found.The more detailed phasing is diagrammatically depicted in Figure 6.Gauteng SDI Rail Link – Inception Report, 15 June 2000

53PHASE 1PHASE 2INCOMEPHASE 3INCEPTION• Project Planning• Scope• Concept• Points of Departure• AssumptionsNEEDSASSESSMENT• DemandDetermination• Market Analysis• Revenue EstimationFEASIBILITY• Technical• Economical• AcceptabilitySystemDescription &Request forProposalsStudy DesignSYSTEMPLANNING• Route Alignment• Technology• OperationsCOSTFIGURE 6: PROJECT PHASING1.4.2 Process of Alternative SiftingIt is recognised that the limited time available will impose major demands onthe study process to be followed. This project will require intensive interactionamong the team members from the different disciplines, and necessitates aniterative process for the sifting of alternatives. As many of the projectelements will be dependent upon one-another, and considering that anyalternatives identified within such elements will result in a large number ofsystem combinations, a 3-stage sifting approach was developed.The principle of the sifting process is shown diagrammatically in Figure 7, toillustrate the selected approach. To a large extent, this approach was builtinto the detailed project programme and critical path analysis. It should bepointed out that the intention is that the project will start at a broad level ofdetail. Unacceptable or impractical alternatives will be discarded as the levelof detail increases, together with the increasing level of accuracy from thedata available.Gauteng SDI Rail Link – Inception Report, 15 June 2000

541.4.3 Project ScopingIn order to focus the scope of the project, together with the study approach andmethod, a number of key issues were identified.As far as possible, these key issueswere clarified during the first working session between Gautrans, the ConsultingTeam and some of the key role players.These key issues were, therefore, applied as the short-term focus of the study for theperiod running to this Inception Report, as compared to the longer-term focus of thestudy on the study elements.Initial Identification of Alternatives:- Stations and Routes- TechnologyConceptual Demand1:50 000 ContourPlansKnown land-useStrategicSifting ofAlternativesStage One SiftingDemand: ExtendPWV-ModelOrto-photosInvestigateExisting andFuture land-useTechnicalPrioritisationand Sifting ofAlternativesStage Two SiftingStatedPreference andModal ChoiceModelVertical SectionsProjected andderived land-useSifting ofFEASIBLE andpreferredalternativesStage Three SiftingProject SpecificationsFIGURE 7: SIFTING OF ALTERNATIVESINCREASINGLEVEL OFDETAIL ANDACCURACYGauteng SDI Rail Link – Inception Report, 15 June 2000

55The following key issues were identified and considered at the initialconceptualization workshop.TABLE 1: PROJECT KEY ISSUES1. What comprises feasibility for a project of this natureto be implemented?$ Feasibility Parameters$ Under what circumstances will the project be considered feasible?$ What is required to prove feasibility?2. Strategic Objectives and Study Objectives$ Detailed the Study Goals and Objectives$ Allocate these to the Elements3. Government Policy and RequirementsIdentify SDI needs and list all other Government requirements in terms ofpolicy, legislation, etc.4. Market Segmentation and Passenger ProfilesInitial Conceptual PlanningDetermine preliminary indications of the final system in terms of:♦ Market Sections (who will use it),♦ Areas to be served,♦ Niches,♦ Image,♦ Fare levels,♦ Station spacing, etc.5. Relationship and compatibility with existing SARCC System$ Intra-modal transfer vs through services- European gauge vs Cape gauge- AC vs DC technology- Current Technology and Future Technology: State-of-the-Art vstested technology.• Broad approach of SARCC• Institutional Framework• Physical integration6. Alternative Network PlanningIdentify alternative networks and broad alignments to be considered forroute determination.7. Modal Integration, Feeder and Distributor Networks• Role and function of feeder and distribution services• Who should provide the services?• How can these services be ensured?8. Fits into public transport systemInvestigate how this system will fit into the provincial public transportnetwork, from ITPs and others9. Role of Government vs Private Sector• Determine the implementation roles such as ownership, risks andfunding• Determine implications of Government’s roleGauteng SDI Rail Link – Inception Report, 15 June 2000

5610. Implementation programmeGet better clarification of the Implementation Programme (Duration ofTasks, Bidding Periods, etc.)11. Expropriation/Reservation of ROWPowers of Gautrans and other government departments to obtain land12. Safety and SecurityHow can safety and security be ensured? What influences theperceptions about this? What support will government provide to this(Old SARP or similar)?13. RisksIdentify the main project risks, such as:• Toll Road Strategy (Impact on and of PWV9/Ben Schoeman upgrade)• Parallel Public Transport, (subsidies and permits)• Patronage Risks• Financial Risks• Public Acceptance / Rejection• Environmental Risks14. TechnologyCharacteristics of most appropriate technology• High Speed / Heavy Rail / Rapid Rail / Light Rail, etc.• Speed• Acceleration/Deceleration• At grade or elevated15. Station Development ConceptsHow can value capture be used? Where are the main developmentnodes?16. Economic Development Concepts• Where are the economic development hubs?• How can this system contribute towards economic development?• What are the stimulus elements for economic development?• How can it contribute to job creation?17. Should freight services be accommodated?• What are the needs for freight services?• Can the SDI freight needs be accommodated?• What about the passenger luggage, particularly from the Airport?• Should freight be containerised?1.4.4 Project ElementsIn order to group associated and common tasks as much as possible together, andto enable the study team to meet the demands imposed by the target set, a numberof project elements were identified. The purpose was firstly to allocate the budget tothese elements and, secondly, to focus on specific interim deliverables within anelement.Gauteng SDI Rail Link – Inception Report, 15 June 2000

57It is important to note that these elements are not tasks, bur rather groups of tasks.The elements mostly run for the duration of the project, as these elements reflect thegroupings of the disciplines involved in the main study areas of the project.Elements were selected to largely represent single disciplines, aimed at minimisingthe need for inter-element liaison. (However, relatively high levels of interrelationshipwill remain amongst the various project elements, and were catered forbelow.) Table 2 lists the 34 project elements that were identified for this purpose:TABLE 2: STUDY ELEMENTS1. Project Preparation2. Initial Conceptual Planning3. Ongoing Conceptual Development4. Demand Forecasting5. Stated Preference Analysis6. Market Research7. Land Use Planning8. Planning Integration9. Socio Economic Assessment10. Route Determination11. Rail Track12. Civil Substructure13. Electricity Supply14. Traction15. Telecommunication16. Signalling17. Rolling Stock18. Rail Operations19. Rail Systems Integration20. Feeder & Distribution & Traffic Impact21. Station & Precinct Development Concepts22. Station Design Parameters23. Consultation And Public Relations24. Legal And Institutional25. Environmental26. Safety And Security27. Feasibility Criteria28. Economic And Financial Analysis29. Cost - Benefit Assessment30. Risk Analysis31. Implementation Models32. Implementation Guidelines33. PPP and BOT Specifications34. Request for Proposals1.4.5 Grouping of ElementsThe Study Elements were grouped into four main categories, namely:• Project Leadership;• Technical Planning and Feasibility;• Route Determination and Station Development;• Development of the Business Case: Revenue Forecast and ProjectAppraisal.Gauteng SDI Rail Link – Inception Report, 15 June 2000

58The grouping of the identified project elements is as follows:GroupingProject LeadershipElementsTechnical planning andfeasibilityRoute DeterminationDemand and RevenueForecast&Project AppraisalProject ElementConsultation and Public RelationsProject PreparationProject LeadershipInitial Conceptual PlanningProject ManagementInternational ReviewLegal and Institutional AspectsOngoing Conceptual DevelopmentImplementation Guidelines & SpecificationsRequest for ProposalsContingenciesElectricity SupplyElectric TractionTelecommunicationSignallingRolling StockRail OperationsStation Design ParamatersEnvironmentalSafety and SecurityRail Systems integrationLand-Use PlanningPlanning IntegrationRoute DeterminationPermanent Way (Rail Track) and ReserveCivil Substructure and Engineering ServicesRail Systems IntegrationFeeder & Distribution ServicesStations & Precinct DevelopmentDemand ForecastingStated Preference ModellingSurveys (Stated Preference & Demand)Socio-Economic AnalysisFeasibility CriteriaEconomic Evaluation (Cost-Benefit Analysis)Financial AnalysisRisk AnalysisImplementation ModelsPPP / BOT SpecificationsGauteng SDI Rail Link – Inception Report, 15 June 2000

591.5 STUDY PROGRAMME1.5.1 IntroductionThe proposed Study Programme is based on a Critical Path Analysis (CPA) ofthe most critical elements that will determine the completion of the study. Dueto the need to finalise implementation and to run the first train prior to theSoccer World Cup in 2006, it was decided that this Planning andImplementation Study must be completed within the current financial year, i.e.by the end of March 2001.The implication of this decision is that a fast-track approach had to beadopted, which implies that a typical phased study process could not be used.Many of the phases will have to overlap and tasks need to be carried outsimultaneously, in order to achieve the targeted milestones. A number ofmilestones were identified, and the tasks were put into phases similar to theproject element groupings. It should be clarified that the tasks included in theCPA were only those time-consuming tasks that would determine the projectprocess. The other tasks, even if extremely important but not determining thetotal duration of the project, were not included. In addition, it should be notedthat the process shown on the CPA comprises the “deadlines” for the tasks,as any delays beyond these deadlines would entail a delay in the finalcompletion date of the study. The Project Committee will set target datesprior to these deadlines.1.5.2 Milestones in ProgrammeA number of milestones in the programme have been identified. Some of themost important milestones are as follows:Gauteng SDI Rail Link – Inception Report, 15 June 2000

60COMPLETED MILESTONES♦ 26 April 2000Verbal appointment of the Consultants by MEC♦ 5 May 2000Briefing of the consultants by the HOD♦ 29-30 May 2000 Scoping workshop between Gautrans, consulting teamand some of the role players♦ 13 June 2000First Project Review Committee MeetingCURRENT MILESTONES15 June 2000 Submission of Inception ReportFUTURE MILESTONES♦ 16 July 2000♦ Mid July 2000♦ End July 2000♦ End August 2000♦ End October 2000♦ End December 2000♦ End March 2001Announcement of the Soccer World Cup Host CountryConsultative ConferenceFirst network alternatives to Project Review CommitteeSubmit preferred network alternatives for acceptance(route and station location alternatives)First indication of feasibility outcomes(for budgetary purposes)Submit Interim Report on FeasibilityFinal ReportRequest for Proposals & Project DescriptionA more comprehensive list of milestones is indicated on the GANTT-diagramattached as Figure 8.1.5.3 Detailed (Rolled-up) Gantt chartA rolled up version of the detailed Gantt chart is shown in Figure 9. This onlyshows the summaries of the critical tasks.Gauteng SDI Rail Link – Inception Report, 15 June 2000

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63From this rolled-up GANTT diagram, the following is evident:• Various project elements will have to overlap to a large extent to achieve todemands imposed by the milestones.• As the level of detail and the accuracy of estimates improve, a number ofmilestones and deliverables are required. These internal deliverables andmilestones are not visible on this summarised Gantt.• Even on the rolled-up task levels, the project has many elements and phases,which is an indication of the complexity of the project.1.6 PROJECT MANAGEMENT STRUCTURE1.6.1 IntroductionA project-specific approach is used as basis for the project management andconsultative structure. The project management and consultation principles areshown diagrammatically in Figure 10.Consultation PrincipleCONSULTATIONSTRUCTUREPROJECT MANAGEMENTSTRUCTUREBROADCOMMUNITYTCC &GRPSTEERING COMMITTEEREVIEWCOMMITTEEAd hocconsultation Ad hocconsultationPROJECTCOMMITTEECONSULTANTSFIGURE 10: PROJECT MANAGEMENT & CONSULTATION IN PRINCIPLEThe approach followed in this structure allows for high-level consultation atthe level where the strategic aspects of this study are considered anddecided, namely at the Gauteng Provincial Cabinet Cluster level. Moredetailed issues of local concern will be addressed by the Project ReviewCommittee, which will act in the format of a project management committee.Gauteng SDI Rail Link – Inception Report, 15 June 2000

64The application of this approach is shown in Figure 11, which provides thedetail for both the project management and consultation structures.1.6.2 Provincial Steering CommitteeThe Provincial Steering Committee will act as the main decision-makingbody for this project. For this purpose, the committee should meet whenimportant decisions have to be taken on the final and the interim deliverables.At this stage, three important dates are foreseen for decision-makingpurposes, namely:♦ Before the end of June 2000 to accept the Inception Report.♦ Approximately by the end of August 2000 to select the preferred networksystem, or alternatives.♦ Early in 2001 to approve the Feasibility Report.♦ In April 2001 to accept the final deliverable, and to agree on theimplementation guidelines.It is suggested that the Provincial Steering Committee should function underthe Provincial Cabinet Cluster responsible also for transport matters. Thisimplies that the MECs and HODs of the following provincial departmentswould be involved:• Transport and Public Works (directly involved as project leader)• Finance and Economic Affairs (managing the SDI-programme)• Development Planning and Local Government• Agriculture, Conservation and the Environment• HousingOver and above his role as member of the cluster, the HOD for Transport andPublic Works will, ex officio as the official project leader from the ProvincialGovernment, be a member of this committee and will submit progress reports,and will present proposals to the committee for consideration.Gauteng SDI Rail Link – Inception Report, 15 June 2000

651.6.3 Project Review CommitteeThe Project Review Committee was established to steer the project also atthe technical level. This committee set its meetings in accordance with thespecific milestones, when significant deliverables will be submitted, and sevenmeetings have been scheduled for the duration of the project.The members of this committee include representatives from the following:• Provincial Project Leader & Gautrans Officials• National Department of Transport• Transport and Planning Authorities (currently the Metropolitan andServices Councils)• Gauteng Department of Finance & Economic Affairs• South African Rail Commuter Corporation• SDI Co-ordinator• Consulting Team.1.6.4 Provincial Project CommitteeThe Provincial Project Committee will be the main committee where the ProvincialProject Leader (the HOD of Gautrans) will meet the members of the ConsultantsCommittee to get progress reports and deal with all project administrative matterssuch as budgets, etc. The SARCC will be represented on this committee to ensurethat appropriate technical input can be guaranteed.This committee will meet fairly regularly, and will be chaired by the Provincial ProjectLeader, the Gautrans HOD.Gauteng SDI Rail Link – Inception Report, 15 June 2000

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671.6.5 Consultants CommitteeThe Consultants Committee is a technical committee under the chairmanshipof the lead consultant, Mr. Olaus van Zyl from Khuthele Projects, whereissues of a technical nature and the project management aspects are dealtwith. This committee meets on a frequent basis, which is weekly or twicemonthly for the initial stages of the project. The frequency will be judgedthroughout the project, to ensure that sufficient co-ordination can be ensured.This committee will, furthermore, act as the main internal project co-ordinationstructure where issues of common concern will be dealt with. However, thefocus will be on driving the project process and reporting on the projectmanagement aspects.Over-and-above the Project Leader, Olaus Van Zyl, and the Secretariat, NinaOtto, the committee will consist of a representative from Gautrans andrepresentatives from each consulting company: Such representatives willcome from the following people:Gautrans• Stephen Burnett and other appropriate departmental representatives whoare availableKhuthele• George Negota• John Maluleke• Johan Venter• John MorganArcus-Gibb• Abbas Jamie• Nick Ras• Herman Joubert• Unathi MntonintshiLebone Engineering• Thomas Molamu• Tlaleng Moabi• Pitso Thoalane• Thomas MalulekeGauteng SDI Rail Link – Inception Report, 15 June 2000

681.7 INTERNAL PROJECT MANAGEMENT STRUCTUREThe internal project management structure will deal with the purely technicalco-ordination of the tasks to be undertaken within each of the project elements.To ensure an effective co-ordination structure with the minimum duplication,Task Groups were established to focus on the specific technical tasks. TheseTasks Groups will meet only as-and-when-required, and will mostly be informalwithout formal minutes.The members of these task groups will depend on the subject beingconsidered, and will usually have representatives from all three consultingcompanies. Representatives from Gautrans may attend these meetings whenavailable, and selected representatives from specific role-player bodies will beinvited to attend when appropriate depending on the nature of the specificissues to be discussed. The following task teams were identified (see also thegrouping of elements above):Project Leadershipand ConceptualPlanningTechnical Feasibilityand Project PlanningDemand and RevenueForecast & ProjectappraisalRoute Determinationand Station Placing1.8 CONSULTATIVE PROGRAMME1.8.1 General ApproachThis project will have many interfaces with local and provincial stakeholdersand role-players. A high-degree of consultation will, therefore, be required.Gauteng SDI Rail Link – Inception Report, 15 June 2000

69The primary consultation approach, as discussed above and depicted inFigure 6, will be that the high-level political representatives of this project (i.e.the members of the Provincial Steering Committee) will consult directly withthe broad community and public of Gauteng.On the other side of the spectrum, technical representatives from all the mainrole players will be invited to participate directly in the Project ReviewCommittee (which goes beyond consultation only and also deals with theproject management).At a number of strategic milestones, opportunity will be given for strategicinput. It is proposed that these be done at a limited number targetedconsultative conferences.The detail of the consultative structure is shown in Figure 11 above, anddiscussed briefly below.1.8.2 Consultative ConferencesIt is proposed that two or three major consultative conferences be held, whereopportunity for consultation with all the role players and the main stakeholderscan be provided.The first consultative conference will be aimed at obtaining support for theproject and methodology applied, but will be mainly driven at obtaining inputinto the planning process and the identification of alternatives to beinvestigated. The second consultative conference will be aimed atacceptance in principle of the proposed implementation proposals andprogramme prior to submission to Gautrans.The proposed dates are as follows:♦ First Consultative Conference Third Week July, 2000♦ Second Consultative Conference Mid November 2000 and/or midFebruary, 2001It will be considered whether an Investor’s Conference, aimed at addressingthe needs and requirements of prospective bidders for the BOT project,should be held.Gauteng SDI Rail Link – Inception Report, 15 June 2000

706.7.3 Consultation with TCC and GRPMost members of the TCC (Gauteng Transport Co-ordination Committee) andthe GRP (Gauteng Rail Planning Co-ordination Committee) will also bemembers of the Project Review Committee.However, as the TCC and GRP are the official institutional structures ofGauteng, in the format of a partnership between the main governmentalorganisations involved in transport, these structures should be involved in theconsultation process. It is proposed that such consultation should take placeas part of the scheduled meetings of the TCC and the GRP Committee.Discussion at the TCC is required where this project will have an impact onlocal planning and co-ordination by Gautrans, and where the interfaces withthe Integrated Transport Plans of the future Transport Authorities, and theGauteng Provincial Transport Framework have to be discussed.This project has for some time (since 1998) been a standing item on theagenda of the GRP Committee. It is proposed that this remains the case,particularly to the extent it impacts on the further development of the GautengRail Transport Development Strategy, and to consider the role of GRP withthe implementation proposals from this study.The TCC and GRP furthermore, gives and opportunity to the other memberswho are not involved in the Project Review Committee to be consulted and togive input into the planning approach. These other members will include theAirports Company of South Africa (ACSA), the Gauteng Department ofDevelopment Planning and Local Government (DDLG), and Metrorail.1.8.3 Focused ConsultationIndications are that a high degree of focussed consultation meetings will haveto be arranged with the metropolitan councils, local authorities and other roleplayers. Such meetings will be objective-specific and will be arranged on anas-and-when-required basis. Much of these arrangements will take place ona Task Group level, rather than on the Project Review Committee level.The first of these will take place early in July 2000 when an opportunity will begiven to consult the metropolitan and services council councillors responsiblefor transport matters. This request was made by the Project ReviewCommittee.Gauteng SDI Rail Link – Inception Report, 15 June 2000

711.8.4 Communication StructuresThe nature of the proposed SDI Rail Link Project is guaranteed to generatesignificant media and public interest. There will be supporters andprotagonists, and there may also be opponents and antagonists. The latterwill include people who may oppose the project for political reasons, forfinancial and technical reasons, for environmental reasons and those whomay be sceptical about the feasibility.For this reason, communication in this project will – although using a fullytransparent process – be structured in such a way as to optimise the provisionof clear, unbiased and technically correct messages.A holistic approach towards communication will be established, which willinclude, for example, the setting up of a database for stakeholdercommunication, a number of press releases and focussed press conferences.7. CONCLUSIONThis is a very important project for the people and the Government of Gauteng. It isin the first place a project aimed at economic growth, development and job creation,but then also a project aimed at providing appropriate transport solutions to severetransport problems.The limited time available to conclude this study and implement the projectsuccessfully requires effective project management and co-ordination, and also cooperationfrom all concerned.Gauteng SDI Rail Link – Inception Report, 15 June 2000

iEXECUTIVE SUMMARY1. INTRODUCTIONIn his address at the opening of the Gauteng Legislature on 14 February 2000,Premier Mbhazima Shilowa announced the Gauteng SDI Rail Link, as one of tenSpatial Development Initiations (SDI's), which will link Pretoria, Johannesburg andJohannesburg International Airport by rail.The area between Pretoria and Johannesburg is one of the fastest growing areas inthe country. Additional transport capacity is urgently required, as is evident from thesevere traffic congestion on all roads in the area. Such capacity should be providedthrough additional roads and through public transport. Where it is the explicit policyof Government to promote public transport, this project can be a very forceful andnotable illustration of Government’s commitment to achieve that goal.The co-operation between the different spheres of government will be extremelyimportant and will be an integral part of the study. Similarly co-operation with allother stakeholders, including representatives of the transport modes, is essential.A consortium of consultants consisting of Khuthele Projects, Arcus-Gibb and LeboneEngineering was appointed on 26 April 2000 to assist Gautrans with the execution ofthe project. Gibb-Rail, a leading international railway consultancy based in the UK,will provide support. Khuthele Projects will lead the consulting team.Gautrans itself will be intimately involved in the execution of the project. The HOD,Mr. Jack van der Merwe, will lead the project. Progress reports will be submitted tothe MEC for Transport and Public Works, Min. Khabisi Mosunkutu, who will report tothe Provincial Cabinet and the Premier on a regular basis. This project will beundertaken in close collaboration with the Department of Finance and EconomicAffairs and its SDI Co-ordinator.2. BACKGROUND INFORMATIONThe fast growing Johannesburg–Pretoria corridor clearly demonstrates theinteraction between transport, land-use and economic development. However,recently it became evident that although many companies have located here,insufficient public transport is available for people who cannot afford cars or privatetransport, and also that the increasing road traffic congestion may soon start tostrangle the development rate.Representatives have approached Gautrans from countries such as Germany,France and Japan, who all indicated that a rail system in this corridor appears to befeasible, and that they would like to investigate the opportunities that such a railsystem would offer.Gauteng SDI Rail Link – Inception Report, 15 June 2000

iiThe pre-feasibility study was done by German Consultants, appointed by theBavarian Government (in its twinning agreement with Gauteng) and completedduring September 1999. The following were some of the most importantconclusions:• “Even the construction of a new toll road in this corridor (the PWV-9 roadbetween Johannesburg and Pretoria, west of the N1) would not solve thetransport problem for the future. It is, therefore, indispensable to complete theexisting transport system by means of a public transport system that would beindependent from the existing road network.”• “… taking into account the economic and environmental benefits accruingusually from implementation of mass transit systems in highly loaded corridors(savings in travel time, accident cost, private vehicle operating cost, air pollution,noise) the rough financial evaluation indicates that in all probability the railwayproject is feasible in economic terms.”• Some of the alternatives investigated showed that it should be possible to coverthe total operating costs by fare revenues.• "… further investigations are necessary and justified. It is thereforerecommended to carry out … a more comprehensive feasibility study…"3. IMPORTANT DEPARTURE POINTS AND CONSIDERATIONSThe direction provided by the Gauteng Spatial Development Framework supports theimplementation of the SDI Rail Link. It should play an important role to achieve amore sustainable spatial development structure in Gauteng. It is indicated that it willcontribute to the regeneration of the CBDs, development of new town areas, andstrengthening the existing vibrant nodes.The following are some of the most important strategic objectives that have beenidentified:• To determine how this project can facilitate development in the Province;• To assess its contribution to job-creation (direct and indirect);• To assist in unlocking the economic development potential of the Gauteng SDIs;and• To improve accessibility and mobility in this development corridor.4. PROJECT CONCEPT AND SCOPEThis project will investigate the utilisation of appropriate and tested state-of-the artmodern technology, that can provide an excellent and acceptable service to thepassenger, at competitive travel times and speeds, and affordable to both thepassenger and government. Comfort, safety and security, and accessibility aresome of the aspects that will be given high priority. As an SDI project it will alsohave the strategic objective of promoting economic growth, development andemployment creation.Gauteng SDI Rail Link – Inception Report, 15 June 2000

iiiStudy AreaThe Study Area comprises the triangular geographic area between Pretoria,Johannesburg and Johannesburg International Airport (JIA), and includes importantnodes such as Sandton, Alexandra, Kempton Park, Midrand, Tembisa andCenturion. Soweto and the FNB-Stadium, which will be very important if the 2006World Soccer Cup takes place in South Africa, will be functionally linked, as well asother areas such as the East Rand, the fast developing Sunninghill Area and theMenlyn area in Pretoria.Market FocusMarket segmentation considerations will be applied to determine who will or shoulduse the proposed service. The setting of fare levels to maximise the income will beaddressed. The following departure points are important:• Collector and distributor systems at stations to ensure the accessibility of largercatchment areas.• The unique needs of different parts of the network (such as the JIA – Sandtonlink).• A service cannot be provided to suit everybody. Fares would be higher than onthe existing rail system. Users will decide whether they can use it, want to use itand can afford to use it. .They have a choice.• The project is essentially aimed at economic development. The system, theservice and the passengers must promote economic activity.• The type of service, including its cost and travel time, must be such that the caruser would be willing to consider changing to rail.• The bias seems to be towards commercial users who can afford the trip andwould be willing to pay for a good service.• Provision should be made for tourists and for airline passengers.• The market research will focus on the different trip purposes.Relationship with Existing SystemsCurrently the South African Rail Commuter Corporation (SARCC), falling under theNational Minister of Transport, is the owner/regulator and Metrorail the operator.Metrorail is a division of Transnet, falling under the National Minister of PublicEnterprises. With the future concessioning of commuter rail services in the country,the SARCC-related institutional framework will undergo further changes. Alternativeinstitutional structures for the Gauteng SDI Rail Link will be developed and evaluatedin this study, including its relationship with the above structures. The currentintention is that the Gauteng Provincial Government will, at least initially, own the railinfrastructure and that the rail services will be provided by the private sector.Some of the designs on the existing railway systems and the average rolling stockare already more than 30 years old. No new rail lines have been built in the past 20years. The broad approach is that the current initiative should be co-ordinated withthe existing rail system. Investigations will be done whether to use the existingSouth African gauge or the standard international gauge. Although the possibility ofgood second hand rolling stock will be investigated, possible future maintenance andGauteng SDI Rail Link – Inception Report, 15 June 2000

ivcosts may result in problems. Life-cycle costs and economies of scale will to a largeextent determine the appropriate approach. Train speeds of approximately 180 km/hor slightly higher seems to be applicable to the anticipated type of service and typeof train to be used. The term "high speed" is therefore not appropriate. A newunique image is necessary to maximise patronage, which will influence the type ofequipment and service. It seems most probable that new railway lines will berequired for the whole or most of the new route or network.Alternative Route Alignments and Station LocationsThe proposed methodology for network and route alignment provides theidentification and evaluation of approximately two to five alternatives. One or twofinal networks will be proposed by the end of August 2000 as a basis for moredetailed planning. The following are some of the important aspects in theroute/network determination:• The broad corridor between Pretoria and Johannesburg will most probably haveas western boundary the Ben Schoeman N1 Freeway and as eastern boundarythe existing railway line. Where possible existing road and rail corridors will beutilised.• The possibility of accommodating multiple type services on the main line will beinvestigated.• The Airports Company of South Africa will be consulted as to how the SDI RailLink can be integrated with the development of the Johannesburg InternationalAirport.Station Development Concepts and Surrounding Land UseThe location and development of stations is one of the most important aspects in theplanning of the routes and networks. Station location would primarily be determinedby existing development, or committed new development. Local authorities wouldhave to be fully involved in the location of stations and the development concept at,and surrounding the stations. Matters such as the rezoning of land, bulk servicecontributions and the legal implications for government involvement will beinvestigated, as well as the value-capture potential of the stations.Although it will not directly affect the bankability of the project, the policy on land usein the areas surrounding stations is important for the longer-term success of theproject. Densification at nodes and corridors is essential for the feasibility of publictransport projects.Feeder and Distribution SystemsPrimary public transport feeder/distribution systems should be dedicated andgenerally of a higher quality than most of the existing public transport services. TheRail Link must be able to control or significantly influence operational decisions ofsuch services. Mechanisms should be pursued to bring certain taxi operators into theintegrated feeder/distribution system. Attention should also be paid to restructureexisting bus and rail transport services to support this project.Gauteng SDI Rail Link – Inception Report, 15 June 2000

vConsideration should be given to providing metered taxi, dial-and-ride and car hireservices at certain stations. Park-and-ride facilities will have to be provided at allstations.TechnologyThe technology to be utilised will be aimed at achieving the objectives regardingtravel times and passenger comfort levels. The technology to be used will comprisethe most appropriate, modern and tested technology that would result in asustainable and effective system from a life cycle cost perspective. The necessaryactions should be taken to provide safe and secure facilities and services, and topositively influence the passenger’s perception of commuter rail as a safe andsecure transport mode.5. IMPLEMENTATION CONSIDERATIONS AND PARAMETERSFeasibility can be considered firstly as the general factors that should be present tomake the project possible and those criteria that have to be compiled with by anyspecific body to accept involvement in the project. Investors will require a feasibilityreport, stating clearly Government’s viewpoint on the feasibility of the project andindicating project viability.It is extremely important to timeously identify the risks that may impact on thisproject, to enable the planning to address these.Different legislation will have to be considered, as it will be necessary to identifylegislative obstacles in order to avoid unnecessary delays.As the intention of the Gauteng Provincial Government is to fully involve the privatesector in the implementation, this study will eventually provide for a Request forProposals from the private sector, probably in the form a BOT process.Implementation ProjectThe proposed targeted date for commissioning of the rail service by 2005, and theproposed deadline (to be operational by the 2006 Soccer World Cup if held locally),will result in an extremely tight implementation programme. Government and otherroleplayers will be made aware of the critical constraints to avoid wrongexpectations.The duration for implementation will be included in the Request for Proposals, andwill be used to adjudicate the proposals in order to meet the required deadlines.Gauteng SDI Rail Link – Inception Report, 15 June 2000

vi6. BUSINESS PLAN AND STUDY DESIGNIn addition to this Inception Report, the project will have three main deliverables,namely:• Feasibility analysis to confirm the findings of the pre-feasibility study, with thefocus on Financial Viability and Bankability in order to attract private sectorinvestment,• Description of the proposed system and the design parameters ofimplementation project; and• Request for Proposals from prospective bidders.The project will have three main phases, namely:• Project Inception• Feasibility Assessment, including the needs assessment and system planning• Project Specification and Request for ProposalsA number of milestones in the programme have been identified, including:♦ 26 April 2000♦ 5 July 2000Country♦ End October 2000♦ End December 2000♦ End March 2001Verbal appointment of the Consultants by MECAnnouncement of the Soccer World Cup HostFirst indication of feasibility outcomes (forbudgetary purposes)Submit Interim Report on FeasibilityFinal Report: Project Description & Request forProposalsThe approach followed contained the identification and evaluation of 17 key issues inorder to get clarity of the project focus and concept. Thereafter 34 study elementswere identified for more detailed analysis in the study.The Provincial Steering Committee will act as the main decision-making body forthis project. It should function under the Provincial Cabinet Sub-Cluster, includingthe following provincial departments:• Transport and Public Works (directly involved as project leader)• Finance and Economic Affairs (responsible for the SDI programme)• Development Planning and Local Government• Agriculture, Conservation and the Environment• HousingA Project Review Committee has been established to steer the project at thetechnical level. The members of this committee will include representatives from thefollowing:• Provincial Project Leader & Gautrans Officials• National Department of TransportGauteng SDI Rail Link – Inception Report, 15 June 2000

vii• Transport Authorities (Metropolitan and Services Councils)• Gauteng Department of Finance & Economic Affairs• South African Rail Commuter Corporation• SDI Co-ordinator• ConsultantsExtensive consultation will take place, through two consultative conferences, aninvestor conference and focussed consultation meetings. The involvement of manystakeholders in the management process will also facilitate consultation.Gauteng SDI Rail Link – Inception Report, 15 June 2000