COMPANY PROFILE
2014
PRASA
Revolutionising train travel across the nation
company profile
Revolutionising train travel across the nation Editorial: Christian Jordan Production: Chris Bolderstone
The Passenger Rail Agency of South Africa is spending vast amounts of money, all over the country, developing and upgrading the busy railway network. With this spending comes job creation, skill development and economic growth. Head of group communications, Moffet Mofokeng speaks to IndustrySA and explains more about PRASA’s big plans for the future. Back in December 2012, when the Passenger Rail Agency of South Africa (PRASA) announced it was to award a R51billion contract to Gibela Rail Transportation consortium (led by French company Alstom), a breath of fresh air was felt throughout the whole rail industry. “The ageing fleet combined with rapidly growing passenger need has led PRASA to focus on scaling the rolling stock investment as part of a broader strategy to acquire modern technology to meet changing demands,” PRASA CEO, Lucky Montana said in a statement. Montana added that the average age of the coaches used by PRASA is 39 years and the life span of railway rolling stock is around 46 years on average. So the time is clearly right for an upgrade and Gibela Rail Transportation, whose majority shareholder is
PAGE 2 APR 14
Alstrom, was started from scratch with the purpose of revitalising the rail industry in South Africa. The rolling stock fleet renewal programme consists of the purchase of 7224 electrical multiple units over a period of 20 years between 2015 and 2035. This will not be a project where vast sums of money leave South Africa - far from it. Gibela is planning to invest in the South African market in a big way; creating jobs, upskilling people and using SA expertise. “Gibela is building a factory to manufacture trains here in South Africa however; the first 20 of the trains will come from Lapa, Brazil. This is to ease pressure on the current trains which will have reached the end of their design life by this time,” says PRASA head of group communications, Moffet Mofokeng. Back when the announcement of the contract award was first made, PRASA said that the first trains were expected
PRASA
to be delivered in 2015 and Mofokeng confirms that this is still the expectation. “Everything is on track; the schedule hasn’t changed,” he says. “The trains will still be delivered here, on time, in 2015. Obviously we will undertake tests before we put people in the trains but 2015 is still the date and we are excited. The only thing that is outstanding is a letter from the government regarding financial close, and that will come anytime. On our side, we have done everything we can do to complete all the paperwork within the timeframes that were set out.”
BRIDGE CITY Away from upgrading trains, PRASA has also set its sights on developing the country’s whole railway network. Stations, tracks, technology and signalling equipment are all set to get an overhaul, bringing them up to date and in
line with similar international stations. “Stations will be fitted with state-of-the-art access/ ticketing control gates, electronic display boards for train schedules, electronic customer help points, CCTV cameras and public address systems, including the securitisation of station environments and rail corridors through re-fencing and walling,” said Montana. One of the most recent projects, finished in February, is the Bridge City station development near Durban. The R1.3 billion project is part of the Bridge City Rail link project which was originally proposed in 2001 with approximately 60 hectares of high density mixed use development. “The trains are moving there now, everything is working. It connects the communities of Ntuzuma and KwaMashu to the economic hubs of the region,” says Mofokeng.
APR 14 PAGE 3
company profile
© General Motors -1916 Chevrolet 490 “It is a beautiful station. The train station is underground and has a shopping centre on top. On top of the shops is a block of flats so people live and work around the station every day.” Lucky Montana said that the Bridge City project would improve people’s access to public transport. “The Bridge City project is part of PRASA’s overall integrated approach to passenger rail service, in bringing communities closer to integrated public transport solutions, investing in the modernisation of passenger rail services and positioning rail as the backbone for public transport,” he said in a statement.
“The trains will still be delivered here, on time, in 2015” The Bridge City line ties in with the existing multiuse rail line at Duffs Road station along with the new train turnaround facilities at Dalbridge, south of Durban. The ties will ensure operational integration with the north-south rail corridor which is part of the overall infrastructure modernisation programme in preparation for new rolling stock. However, it’s not just Bridge City where planned
PAGE 4 APR 14
improvements are being realised. “We are refurbishing many stations, doing everything from making sure toilets are clean and that the doors close properly to fitting new announcement equipment. All of this is in preparation for the new trains; we really are transforming all of PRASA,” explains Mofokeng. “We are doing some platform corrections. This is where the platform and the train are not aligned and we step in to correct that. “We are opening a new station in Mamelodi. The development has cost around R432million and will open on April 9th. It’s called Greenview rail extension and we are doubling the track there,” he says.
GOOD NEWS FOR COMMUTERS There are four major upgrade projects under way right now, all at different stages, which PRASA has implemented in order to plan for future growth and expansion of the rail commuter network. Montana said at the annual Africa Rail exhibition back in 2012 that these projects would “ensure the system is extended to reach areas that have developed away from the existing rail network. Projects are focused on marginalised communities, deprived of affordable public transport and access to economic opportunities.” Mofokeng details some of the most exciting aspects of current developments.
Williams Hunt
PANDROL FASTCLIP is a switch on-switch o system which was developed in response to the growing need for fast, eďŹƒcient, low-cost track installation and reduced maintenance costs. The speed of application is instrumental for railways and contractors in setting new track records, time and time again. Longest Heavy Haul track (2,000 kms, Saudi Arabia)
Fastest dedicated High Speed Route in Korea (350 km/h, KTX 2) World speed record on ballast (574.8 km/h, TGV)
T: +27 11 392 5061 E: info@pandrol.co.za W: www.pandrol.co.za MAR 14 PAGE 5
company profile “We are planning the Etwatwa rail extension which will be an extension of around 10km with four or five new stations. The estimated cost for this is R2.5billion. “Another project is the linkage of King Shaka Airport and the north of Durban; places like Ballito where there are a lot of tourist homes and Dube Tradeport. “Then we have the Cape Town International Rail Link. It will be about 4.5km from Cape Town to the airport station and the cost will be around R3.2billion. It will also link Belville, the northern suburbs and Metro South East. That plan is still in the pipeline. Nothing has changed as we speak. We want to do it; it is definitely still part of the plan. We also have a similar plan in KZN for a link between King Shaka Airport and the centre of Durban. “In the Eastern Cape, we have the Motherwell Rail Link project which will comprise around 17km of new track and around eight new stations. This project will cost around R1.5billion. There is already a line here but we want to connect it with others and make the system more efficient and easy for people to use. “We are also extending the line from Nasrec to Baragwanath Hospital in Soweto. This will allow for a direct link between FNB Stadium and surrounding townships. It will benefit Aeroton, Orlando, Eldorado Park, the University of Johannesburg and the Potchefstroom corridor. “In the Moloto area, along the Moloto rail corridor, there
PAGE 6 APR 14
are a lot of buses and there are a lot of accidents. The R573, Moloto Road, has suffered from systematic deterioration because of the movement of large numbers of people to metropolitan areas. Because of this, the department of transport has given the go-ahead to build a new railway line from the former homelands of KwaNdebele to Pretoria. This will be a 113km development and is expected to cost R12billion, connecting Mpumalanga and Gauteng. “We also have signalling projects around the country; in Durban with Bombardier, a R1.3billion project; in the Western Cape with Thales-Maziya, a R1.8billion project, and with Siemens in Gauteng, a R3.8billion project,” he says. Montana said in a statement issued by Siemens: “The need for more effective train control is important as the number, speed, mass and length of the trains in Gauteng increase.” Siemens said the signalling overhaul was the “first of its kind for South Africa”, involving the replacement of outdated technology - some of it dating back to the 1930s - with modern electronic systems. “Key features of the upgrade include the introduction of electronic interlocking systems, the upgrade and/or building of new relay rooms, a brand new train detection system, overhead and track changes, and implementation of a customdesigned train control operating system across the entire Gauteng network,” the company said in a statement. “Completion of the rail signalling project will see the
Williams Hunt
IS YOUR MEDICAL FUND ADMINISTRATOR TREATING YOU LIKE ONE OF THE CROWD?
NOT WITH OUR INDIVIDUAL APPROACH
Successful administration, prompt & efficient claims management and world-class customer service determines both the market success and member satisfaction of any given medical fund. Since inception in 1978, Sechaba Medical Solutions (SMS) has
Its IT and service strengths have ensured its flexibility to adapt to
positioned itself as one of the best medical fund administrators
the demanding legislative healthcare requirements that have
in terms of IT systems, service and empowerment in South Africa
evolved with time. This powerful combination ensures that SMS
today. Its strong empowerment history gives SMS the edge as it
is well placed as a key player in the current healthcare environment.
understands the healthcare needs across South Africa's racial and cultural diversity.
To find out more about SMS’ flawless administration and dedication to service excellence contact (011) 353-0048 or visit www.sechabamedical.co.za
APR 14 PAGE 7
company profile Gauteng railway network aligned with modern urban rail networks across the world,” said Lucio Lefebvre, senior project manager at Siemens South Africa. As for the Western Cape, Thales said in a statement: “This state-of-the-art signalling system will enable highly reliable operations and improved passenger services and comfort.” Justice Tootla, Thales South Africa’s deputy chief executive officer said: “The provision of an integrated rail signalling system to the country’s Western Cape Province will ensure efficiency and reliable investments, contributing to a fast- developing continent.” Government spending on rail infrastructure increased from 2007 in the build up to the 2010 FIFA World Cup and Montana says that the event served as “a catalyst for ongoing service and infrastructure improvements in the rail commuter system, but also ensured ongoing funding commitments to accelerate the recapitalisation of the urban rail system in South Africa.”
“This will be a 113km development and is expected to cost R12billion, connecting Mpumalanga and Gauteng” But where does all of this money come from? Sometimes it seems as though PRASA has bottomless pockets but Mofokeng suggests that the company is taking steps to create wealth for itself, as per its secondary business objective. “If you go anywhere in Europe you will see that the rail companies are using the properties at their disposal to create and generate wealth. For example, shops and restaurants can rent space from the rail company and they attract more people. “This money can be used for the upkeep of the station and improvement of infrastructure and we are trying to do this more and more so we can rely less on the state in the future. We feel that this will help to make the travelling experience great for commuters,” he says.
COMMUNITY STANDING With all the money that PRASA spends it is easy for external parties to be impressed with what’s going on. The results are tangible and easy to measure – do the trains run on time, are the stations up to date and well kept, are the lines well maintained; an outsider can easily see outcomes from investment but what about internally? PRASA creates a vast number of job opportunities, attracts significant foreign investment into South Africa and drives infrastructure development which in turn pushes economic growth. So do the
PAGE 8 APR 14
more than 15,000 PRASA people really know how much of an impact they are having on the country? Mofokeng believes that they do. “I think people do recognise the impact of PRASA on the country. The government has given recognition for the jobs that have been created and the industry has not seen the sort of investment that PRASA is now committed to so I think the rest of the sector recognises the importance of PRASA. “I like to think the general public realise our impact; people say ‘I’ve seen PRASA’s work – please let me come and work for PRASA’ and this in itself is recognition.” And if the company was viewed in a positive light before, its standing looks set to increase even further as it tries to step up the fight against climate change - a key part of the rolling stock fleet renewal programme. “We certainly want to encourage greener operations,” says Mofokeng. “The new trains will be lighter and consume less energy, becoming more efficient. They are all designed with this in mind. “In South Africa, we have a lot of coal mines and power stations and the issues with climate change are very important for us. We do not want to leave the environment in a bad state for future generations so these things do matter.” Come next year, we will see what effect the delivery of the new trains has on PRASA’s reputation as the rolling stock fleet renewal programme starts to become a reality. For now, Mofokeng says that PRASA is happy with the progress and excited for the future. “We have many projects on-going and on the horizon,” he says. “It’s looking good and we are happy to be serving the people of South Africa. I personally cannot wait for the new trains to arrive; I’m over the moon with them.”
.
Check back to IndustrySA’s March 2013 edition for more information on PRASA’s rolling stock fleet renewal programme.
Williams Hunt
Local Partner of Plasser & Theurer for: Consulting and new machine sales Technical support Training Spare parts Major component overhaul and machine refurbishment Operating and maintenance agreements Contracting Plasser South Africa (Pty) Ltd | PO Box103, Maraisburg, 1700 | Tel: 011-761-2400 | info@plasser.co.za
APR 14 PAGE 9
Historic overview of mechanised track Maintenance to prasa The history of railways in South Africa dates back to 1859 with the inauguration of the first railway line in market square Durban. On-track mechanised maintenance is much younger, dating back to only 1957 with the delivery of the first track maintenance machine to South Africa from Plasser & Theurer of Austria.
Figure 1: Plasser & Theurer VKR01; the First Tamping Machine in South Africa 1957
The Railways realised the benefits of mechanised maintenance during a long phase of growing railway infrastructure and rail traffic and must also have realised the benefits of having a good support structure for maintaining these machines since with the second order of machines from Plasser & Theurer, Plasser South Africa was established in 1959 to support the machines with technical expertise and components.
Since delivery of the first machines to South Africa, the advances in track maintenance and construction mechanisation technology from Plasser & Theurer was phenomenal. Machines were designed to produce higher production in leaps and bounds to satisfy the demand by the high traffic density lines. However, with high production and technology comes sophistication of all the systems used on these machines. From early days Plasser South Africa also produced the machines locally which increased their specialised knowledge of the machines and shaped highly trained and skilled artisans and technicians. From the beginning Plasser South Africa’s technicians and artisans were South Africans and till today, the skills and experience are based in South Africans.
Figure 2: Plasser & Theurer 09-4X Dynamic – Four Sleeper Continuous Action Tamping Machine The Highest Production Tamping Machine in the World
During the initial period of owning and maintaining the machines by the Railway, performance of the machines were not optimised which either necessitated additional machines to maintain the required tamping cycles or machine availability had to be improved.
Plasser South Africa was subsequently contracted in the 1960’s to maintain the machines by providing fitters to work full time on the machines alongside the operators that were provided by the railways. Due to the lack of synergy between the railway’s operator and the OEM’s fitter, optimum machine performance was still not achieved.
The next logical step was to contract to original equipment manufacturers (OEM) to operate and maintain the machines with high demands on performance and availability. Plasser South Africa was obliged to expand its operations to provide the high level of technical support that would be required to avoid the high penalties that became applicable for poor performance at the time.
In the 1970’s railways called for machines to be provided, operated and maintained by contractors, thereby transforming the machine market from railway owned to contractor owned and the Railway benefitting from the ‘no work no pay’ concept linked to production. It allowed the OEM to specialise and ensure that they keep their machines at very high levels of maintainability and technologically up to date whereas the Railways only paid a unit price for work carried out.
By 1997 the railways, including Metrorail (PRASA today), have completely outsourced their mechanised track maintenance activities. They generally no longer leased, hired or owned heavy on-track maintenance machines but
contracted the full service to contractors specialising in this area. The contractor supplied all the support functions around the machines, supplied their own diesel, flagmen, track masters, general workers etc. This system is still in force.
Machine availability is today characterised by figures averaging at above 95% across Plasser South Africa’s fleet which has become an international benchmark.
There are various reasons why this contracting system proved to be so successful.
The Maintenance Contract: The current maintenance contract developed and improved over many years. In this contract the Railways take the risks in areas which they control and the contractor takes the risks which they control. The contract incentivises availability and production. Higher production and availability therefore means a better income to the contractor and at the same time reduces the unit cost of maintenance to the railway.
Specialisation: Specialisation is the key to efficiency and creativity. Under a contracting arrangement, machine staff is optimised due to operating and maintenance staff working as one team and often have a dual function thereby avoiding split accountabilities. It is also in the contractor’s interest to creatively seek more efficient methods and processes to improve production and reduce downtime due to breakdowns or maintenance.
Economy of Scale: Mechanised track maintenance machinery is very capital intensive. The machines also work under severely harsh conditions and require constant maintenance and component replacements due to high levels of wear. The machines work across South Africa and mostly far from any major towns or infrastructure. This is a logistical nightmare and requires a vast support infrastructure. Mechanised maintenance is hardly economically feasible unless it can rely on the economy of scale. A number of contractors have failed over the years due to the limited demand in Southern Africa. Plasser South Africa being a world leader in mechanised maintenance technology owns operates and maintains a large fleet of machines which allows it to share resources. This made the unit prices of track maintenance of the lowest known in the world.
Access to Global Experience: Plasser South Africa’s relationship with Plasser & Theurer provides South Africa with access to the vast experience, technical know-how and continuous technological progress made by the 18 international partner firms of Plasser & Theurer. Plasser South Africa uses this benefit to their advantage by continuously upgrading and updating their machines to improve reliability and availability.
Specialised Facilities: To support its machines and reduce costs, Plasser South Africa has specialised workshops to re-build or re-manufacture major components at competitive prices. These facilities are also used to locally manufacture or completely refurbish and upgrade machines to the latest standards and technology available in the world.
Technical Support: Mechanised track maintenance machines consist of sophisticated hydraulic and electronic circuits and are therefore an international challenge to achieve reasonable availability of the machines to ensure that production targets can be achieved so as to limit the number of maintenance windows and machines required. Because the economy of scale allows it, Plasser South Africa supports its machines through various activities, systems and programmes by a dedicated team of experienced technicians. Even major components can be replaced on site as opposed to having the machine shipped to a workshop and thereby removing it from production for an extended period.
Figure 3: Major Components being Replaced Safely in the Field
Continuous Training: Operating and maintaining track maintenance machinery is specialised and not comparable to any other industry. Experienced machine operators, artisans and technicians are therefore not available on the labour market and have to undergo intensive training before they can work independently on a machine. The training is equally specialised which require Plasser South Africa to provide the training in-house in its own TETA accredited training facility in accordance with a formal curriculum for each category. Spare Parts Holding: To ensure optimal availability and reliability of machines, Plasser South Africa holds a very large spares stock to ensure that breakdowns can be attended to immediately considering that the lead time for some major components is very long.
Plasser South Africa developed these skills, infrastructure and facilities due to market demands in South Africa, unlike its partner firms in the rest of the world who are purely manufacturers and suppliers of machines.
The valuable lessons learned in owning, operating and maintaining mechanised maintenance machinery over the past four decades will favourably benefit Plasser South Africa’s future customers due to the first-hand experience and the resulting expert advice the company will provide while still having the infrastructure which is second to none.
Plasser South Africa has adapted its business strategy to meet the new market demands and as the local partner of Plasser & Theurer Austria, provides the following services to owners and potential owners of Plasser machines: • Consulting And New Machine Sales • Technical Support • Training • Spare Parts • Major Component Overhaul And Machine Refurbishment • Operating And Maintenance Agreements
+27 (0)12 748 7000 www.prasa.com
(0)1603 618 000 info@industrysa.com East Coast Promotions Ltd, Ferndale Business Centre, 1 Exeter Street. Norwich, Norfolk NR2 4QB