Railway Planning and Implementation Study

GAUTENG PROVINCIAL GOVERNMENT
Department of Transport and Public Works
Gauteng SDI Rail Link

Planning and Implementation Study
INCEPTION REPORT
JUNE 2000
CONTENTS
1.
INTRODUCTION
1.1
Announcement of the Project ........................................................................... 1
1.2
An important Project ......................................................................................... 1
1.3
Appointment of Consultants ............................................................................. 3
1.4
Structure of this Inception Report ..................................................................... 4
2.
BACKGROUND
2.1
Previous Provincial Studies .............................................................................. 6
2.2
Events leading to the Project ............................................................................ 6
2.3
Pre-Feasibility Study......................................................................................... 7
3.
IMPORTANT DEPARTURE POINTS AND CONSIDERATIONS
3.1
Gauteng Provincial Spatial Development Initiatives (SDIs) ............................. 9
3.2
Gauteng Spatial Development Framework ..................................................... 10
3.3
Government Policy, Legislation and other Requirements............................... 18
3.4
Strategic Objectives........................................................................................ 21
4.
PROJECT CONCEPT (SCOPE)
4.1
Purpose of the Gauteng SDI Rail Link............................................................ 22
4.2
The Study Area............................................................................................... 22
4.3
Market Segmentation (market to be served) .................................................. 24
4.4
Relationship and Compatibility with existing rail systems ............................... 26
4.5
Alternative route alignments and station locations.......................................... 28
4.6
Station Development Concepts and surrounding Land Use ........................... 31
4.7
Feeder and Distributor systems at stations .................................................... 33
4.8
Technology ..................................................................................................... 35
4.9
Safety and Security ........................................................................................ 35
4.10
Light freight..................................................................................................... 36
5.
IMPLEMENTATION CONSIDERATIONS AND PARAMETERS
5.1
Feasibility and Bankability .............................................................................. 37
5.2
Risks .............................................................................................................. 39
5.3
Legal Aspects, including obtaining Right-of-Way ........................................... 42
5.4
Role of Government and the Private Sector, including PPPs ........................ 43
5.5
Implementation Programme ........................................................................... 44
6.
BUSINESS PLAN AND STUDY DESIGN
6.1
Introduction .................................................................................................... 48
6.2
Study Goals and Deliverables ........................................................................ 49
6.3
Study Objectives ............................................................................................ 49
6.4
Study Approach and Method.......................................................................... 52
6.5
Study Programme .......................................................................................... 59
6.6
Project Management Structure....................................................................... 63
6.7
Internal Project Management Structure.......................................................... 68
6.8
Consultative Programme................................................................................ 68
CONCLUSION................................................................................................ 71
EXECUTIVE SUMMARY ........................................................................... (i)-(v)
1.
INTRODUCTION
1.1
ANNOUNCEMENT OF THE PROJECT

In his address at the opening of the Gauteng Legislature on 14 February
2000, Premier Mbhazima Shilowa announced an exciting venture, which will
link Pretoria, Johannesburg and Johannesburg International Airport by rail,
namely the Gauteng SDI Rail Link. He announced it as one of the ten SDI
initiatives of the Gauteng Provincial Government.
The Premier said that
following a pre-feasibility study, which was concluded last year; a

comprehensive study would be commenced with early this year, with the aim
to put out a Request for Proposals next year.
1.2
AN IMPORTANT PROJECT
This project is much more than only a transport project.
It must be
approached in the light of the three strategic priorities of the Gauteng

Provincial 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 fully
meet 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 goal
to promote and enhance economic growth, development and job creation.
When the Premier announced the Gauteng SDI Rail Link as one of the ten
SDI initiatives, he said that all of them have a positive economic meaning for
all the people in the Province. He added that the SDIs will help to reverse the
de-industrialisation process, and that the provision of bulk infrastructure will
assist with the rebuilding of the economy.
Gauteng SDI Rail Link Inception Report, 15 June 2000
This project will further provide opportunities for SMMEs, for more labour
intensive project designs, for creating opportunities to build the partnership
between the public and private sectors, and for assisting and promoting
tourism all goals of Government.
But then it is also a very important transport project. When he announced the
project, the Premier said that it is part of governments commitment to ease
congestion on the roads, improve the movement of goods and persons, and
promote easy connection between some of the cities in Gauteng.
The area between Pretoria and Johannesburg is one of the fastest growing
areas in the country, and the potential for further growth is excellent.
Additional transport capacity is urgently required, as is evident from the
severe traffic congestion on the freeways and main roads passing through the
area. Such additional capacity should not only be provided through building
more roads.
It is the explicit policy of Government to promote public
transport, inter alia by ensuring the provision of adequate infrastructure,

facilities and services.
This project can be a very forceful illustration of
Governments commitment to promote public transport.

This project has the potential to assist in improving the image of public
transport in Gauteng and South Africa, of increasing accessibility levels, and
of giving structure to development in the area through the integration of land
use and transport. A rail link such as this cannot be successful if proper
collector distributor services are not provided at the different stations. Modal
integration, which includes through ticketing, integrated scheduling, integrated
information systems and proper transfer facilities, will be an important part of
the project.
In this project the co-operation between the different spheres of government
will be extremely important and will be an integral part of the study design and
execution. Similarly co-operation with all other stakeholders are considered to
be essential, including representatives of the different modes of transport and
public transport.
1.3
APPOINTMENT OF CONSULTANTS
A consortium of consultants was appointed on 26 April 2000 to assist the
Gauteng Department of Transport and Public Works with the execution of this
project. These consultants are:
Khuthele Projects
Arcus-Gibb
Lebone Engineering.
The consultants have extensive experience with public transport and rail
projects, and transportation planning in general.
Arcus-Gibb, a Law-Gibb
Group member, will also involve Gibb-Rail, a leading international railway

consultancy based in the UK, in the project. Khuthele Projects will undertake
the project leadership and management amongst the consultants.
The multi-disciplinary nature of this project is fully recognised. The appointed
consultants are to a certain extent multi-disciplinary, and where it is not the
case, other consultants will be appointed as sub-contractors to the main
consultants, with the approval of the Department. Two such consultants have
already been appointed, namely:
APS Plan Africa, Town and Regional Planning Consultants, who are also
the consultants for the Gauteng Provincial Government in the development
of the Gauteng Spatial Development Framework. APS Plan Africa will
work in close collaboration with the town planners of the appointed
consultants.
Equinox
Communication
who
will
assist
with
public
relations,
communication and consultation. They have had extensive experience in

transportation projects, also within the study area.
The consultants are organised in an effective team, as can be seen from the
Business Plan and Study Design later in this document. The complexity of
the project and the very tight and limited time frames in which the study must
be completed, require extremely well managed, effective and efficient
teamwork.
Gautrans itself will be very involved in the execution of the project. The Head
of the Department, Mr. Jack van der Merwe, assisted by a number of his
senior officials will lead the project and will be directly involved with the project
on a continuous basis.
Regular progress reports on the project will be submitted to the MEC for
Transport and Public Works, Min. Khabisi Mosunkutu, who will report to the
Provincial Cabinet and the Premier on a regular basis.
It should also be recognised that this Gauteng SDI Rail Link is one of ten SDI
projects. The whole SDI programme falls within the Gauteng Department of
Finance and Economic Affairs who has appointed an SDI co-ordinator to
undertake the necessary co-ordination between the SDI projects. This project
will therefore be undertaken in close collaboration with the Department of
Finance and Economic Affairs and its SDI-Co-ordinator.
As mentioned before, the Gauteng Province and its consultants will execute
this project in close co-operation with all roleplayers. The Metropolitan and
Services Councils, the National Department of Transport, and the South
African Rail Commuter Corporation are a few of the institutions that will be
fully involved.
1.4
THE PURPOSE AND STRUCTURE OF THIS INCEPTION REPORT

The purpose of this Inception Report is twofold, namely:
Firstly to focus the scope of the study, by providing an understanding of the
following 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 Team
Secondly to provide the Business Plan and Study Design of the project,
containing the deliverables, the approach, the programme and the project
management and consultation structures.
This report consists of six chapters. Following this introductory chapter, the
other chapters deal with the following:
Chapter 2 provides some of the background leading up to this study. It

refers to previous provincial studies and provides a very brief summary of
the outcome of the pre-feasibility study.
There are a number of important departure points and considerations

which 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 the

project concept and to narrow the scope of the project.
In Chapter 5, some of the considerations and parameters affecting

implementation are discussed.
The last chapter of this report deals with the Business Plan and Study
Design, providing the goals and deliverables, objectives, methodology,
programme, organisational structure and consultation process.
2.
BACKGROUND INFORMATION
2.1
PREVIOUS PROVINCIAL STUDIES

A number of previous studies emphasised the need for this corridor between
Pretoria 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 Ben
Schoeman (N1), to be suitable for a possible future rail line. In the early
nineties the Vectura Study highlighted this corridor as one of the ten most
important provincial transport corridors in Gauteng.
The Gauteng Toll Road Strategy also refers to the need for public transport in
this corridor. The intention is that public transport will augment the additional
road capacity, and will ensure that Gauteng develops to its full potential
2.2
EVENTS LEADING TO THE PROJECT

For the past few years the Johannesburg Pretoria corridor, and to a lesser
extent the corridor to the Johannesburg International Airport, has been the
fastest growing development area in South Africa. It has assisted Gauteng to
grow economically faster than the other provinces. It clearly demonstrates the
interaction between transport capacity, accessibility and mobility on the one
hand 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 under
consideration, the area is not adequately served with public transport for
the people who cannot afford cars or private transport.
(b) The increasing road traffic congestion is acting as a limitation to further
development, and may soon start to strangle the development rate.
The Gauteng Cabinet recently adopted a toll road strategy.
provide part of the road capacity required.
This would
Notwithstanding this, the
promotion of public transport in this corridor, and also the need to ensure that
all people can access this corridor, is of extreme importance, particularly for
business, for tourists, and for commuters.
A number of international government and private sector representatives have
indicated their willingness to be involved and to support the development of a
rail transport system in this corridor.
Representatives have approached
Gautrans from countries such as Germany, France and Japan, who all
indicated that a rail system in this corridor appears to be feasible, and that
they would like to investigate the opportunities that such a rail system would
offer.
2.3
PRE-FEASIBILITY STUDY
When the first Premier of the new Gauteng Government visited Germany a
number of years ago, a Twinning Agreement between Gauteng and the State
of Bavaria was signed. During the first meeting, the Gauteng Rail Link was
identified as one of the first opportunities for co-operation. At a discussion
late during 1998 between representatives from Gauteng and the Bavarian
State Government, it was agreed that the Bavarian Government would
appoint independent German consultants to undertake a Pre-Feasibility Study
of 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 is

justified and feasible, and
whether further investigations on the basis of a comprehensive feasibility

study need to be done.
In addition, the need was expressed to determine whether it was financially

and economically worthwhile to fund this feasibility study, and to explore
alternative means to do so.
The pre-feasibility study was completed during September 1999, and the
following were some of the most important conclusions:
Even the construction of a new toll road in this corridor (the PWV-9 road
between Johannesburg and Pretoria, west of the N1) would not solve the
transport problem for the future.
It is, therefore, indispensable to
complete the existing transport system by means of a public transport

system that would be independent from the existing road network.
As shown in the pre-feasibility assessments, Alternative 3 (a route from

Sandton to Pretoria) is likely to yield coverage of the total operating costs
and part of the investment costs of a new rail system by fare revenues,
whereas implementation of Alternative 2 (a route from Sandton to Pretoria
plus a link to JIA) would presumably result in coverage of a high portion of
the operating costs only.
taking into account the economic and environmental benefits accruing

usually 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 of Alternatives 2
and 3 indicates that in all probability the railway project is feasible in
economic terms.
Moreover the anticipated railway project would strongly support

individual economic zones in the context of the Spatial Development
Initiative .
The afore-mentioned results of pre-feasibility study led to the conclusion

that further investigations are necessary and justified.
It is therefore
recommended, to carry out the next step, a more comprehensive

feasibility study
3.
IMPORTANT DEPARTURE POINTS AND

CONSIDERATIONS
3.1
GAUTENG PROVINCIAL SPATIAL DEVELOPMENT INITIATIVES

The Gauteng Provincial Government decided on a Spatial Development
Initiative (SDI) strategy in order to change the economic profile in Gauteng,
enhance economic growth, promote development and create employment
opportunities.
Ten Spatial Development Initiatives had been identified. (See Figure 1 on the
following 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 SDI
objectives are met and that, where possible, alignment with the other SDI
projects is achieved.
10
LOCATION OF SDIS FIGURE 1

11
3.2
THE GAUTENG SPATIAL DEVELOPMENT FRAMEWORK
3.2.1 Critical factors

Five critical factors were used to direct the Gauteng Spatial Development
Framework (GSDF). These factors are the guidelines or principles that will
inform the future growth path of the province, and their implementation will
produce a particular spatial development pattern.
Four of the five critical
factors are discussed below, whereas the fifth one, being rural development
beyond the urban edge, is not directly applicable in respect of the Gauteng
SDI Rail Link.
Resource based economic development

In order to ensure Gautengs advancement internationally, and to achieve
balanced development in the province, economic development based on
the key resources offered by the province, should be promoted. Thus,
the three strategic thrusts as outlined in the Gauteng Provincial
Governments Trade and Industrial Strategy 1997, should be pursued.
Strategic Thrust 1: The re-alignment of the manufacturing sector away
from traditional heavy industry input markets and low value-added
production, towards sophisticated, high value added production, as well
as the development of other high value added production activities in the
agriculture and mineral sectors.
Strategic Thrust 2: The development of the province as the smart centre
of the country with specific emphasis on: information technology,
telecommunications equipment, research and development and biomedical industries.
Strategic Thrust 3: The development of the finance and business
service sector with specific emphasis on: financial services and
technology, auxiliary business services and technology, corporate head
office location and business tourism.
Important locational criteria for the market include aspects such as high
visibility, optimal accessibility, proximity to airports and rail, increased
security largely in the form of security estates or parks, and the focus of
the commercial property market as directed by investors and developers.
12
Contained urban growth

The notion to contain urban growth is embedded in government
legislation and policy, and is largely supported by all sectors of the
province.
This is supported by the fact that peripheral urban
development is costly and particularly so for local government, which is

the provider of bulk infrastructure and services.
There is general
consensus in the planning arena that unlimited urban sprawl should be

contained.
Re-direction of urban growth

A necessity exists to re-direct urban growth. The aim is to densify the
existing urban areas, stabilise and limit growth in the economically nonviable areas, and achieve growth on vacant land within the economic
growth sphere, as contained by the urban edge, in order to develop a
functional and sustainable urban system.
Mobility and accessibility

Mobility is the ability to move people and goods from point A to B and is
associated with the use of vehicles for transport. Linked to this is the
issue of accessibility, and access to mobility in particular.
This is a
matter of concern, due to the fact that a limitation to access, limits access
to job opportunities, social facilities, etc.
In order to implement the four critical factors, which structure the
development of the province, mobility and access need to underpin the
principles of development. Hence, road and rail development should be
geared at implementing the proposals contained above. However, since
it will take major intervention to re-direct the growth pattern, the
development of road and rail should equally facilitate the current situation
and growth path.
Hence, mobility and accessibility will have to focus on two critical
development paths. Firstly, they will have to support the existing urban
pattern, by improving access to the townships in particular and increasing
mobility to job opportunities, and secondly, will have to provide improved
13
infrastructure within the core economic focus area to cater for the
projected growth in those areas. Hence, rail and road infrastructure will
have to be improved in the core area to cater for enhanced movement
and access.
3.2.2 The final spatial development plan
The Final Spatial Development Framework is illustrated on Figure 2a and
provides the proposed development focus of the province.
Interventions
The GSDF draws definite conclusions on the development trends that
dominate in Gauteng, and with respect thereto, makes certain
development proposals that indicate a way forward for the development
of 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 mobility
With regard to access and mobility, the GSDF states that we will always
be highly reliant on transportation owing to the dispersed structure of our
cities. However, there is an undeniable need for an improved public
transport system, which will become increasingly important and urgent
in the compact city. Intervention in this regard is required, in order to
bring people closer to opportunities and into the mainstream of the
economy. Access is essential and mobility is constrained due to the
cost thereof.
14
15
3.2.3 Summary of Spatial Development Framework

Fundamentally the Final Plan proposes that:
!
Gauteng should acknowledge the pivotal role the economy is playing in

allowing the province to provide for its people, and that without economic
growth such provision will decrease and poverty will increase, whilst
health conditions worsen and education levels decline. Thus it is vital that
economic growth and development be motivated and encouraged by
accessing the particular resources Gauteng offers.
Urban sprawl and peripheral growth be contained, and hence, that an

urban edge be delineated which would determine the outer perimeter of
urban development. This is not only sound spatial planning, but makes
financial sense, owing to the cost savings achieved by not having to
extend services, infrastructure and facilities to the periphery.
People should be brought closer to their job opportunities, and hence, to

the economic focus areas, while their displacement from the core urban
environment should be halted. Thus, urban growth should be re-directed
to allow for a more efficient and effective settlement pattern to be
established.
Mobility and accessibility are very important given the fact that Gauteng is
a highly mobile society and reliant on movement. It is deemed that far
greater integration between land use and transportation planning needs to
occur to optimise accessibility and mobility in the province.
3.2.4 Specific Spatial Development Considerations

3.2.4.1
Points of departure
The Gauteng Spatial Development Framework suggests that the

Gauteng SDI Rail Link could and should play an important role to
achieve a more sustainable spatial development structure in
Gauteng.
16
With this in mind, the following points of departure should form the
basis for the spatial considerations related to the project.
3.2.4.2
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.
Main considerations
In order to achieve a focussed approach to the project the main land
use 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 employment

areas
3.2.4.3
Development concept
The above considerations have indicated that the Gauteng SDI Rail
Link should be a component of an integrated system, which will
contribute in the following manner as regards spatial development.
Regeneration of CBDs.
Development of new town core areas.
Strengthening of existing vibrant nodes.
It therefore suggests that the system will consist of a main line (the
Gauteng SDI Rail Link) and a system of link lines.
The main line will link the major areas of job opportunities and higher
density residential areas, while the link lines will serve to link lower
density residential areas to the main line (refer Figure 2b).
17
18
3.2.4.4
Main nodes
If the above concept is pursued then the following nodes are
considered as important in the main line development.
Johannesburg CBD
Pretoria CBD
Johannesburg International Airport
Sandton CBD
Midrand CBD
Tembisa
Centurion
The following nodes, although falling outside the direct main line
development, will also play an important role, with possible extensions
to be considered now or in the future.
Soweto (Bara Link)
Menlyn
Rosslyn (Urban Port)
City Deep area
Fourways/Woodmead
Eastgate
The above concepts and nodes will be the subject of further spatial
development models to be developed in support of the Gauteng SDI
Rail Link.
3.3
GOVERNMENT POLICY, LEGISLATION AND OTHER

REQUIREMENTS
3.3.1 Policy and Legislation

Current government policy directives clearly indicate the necessity of
promoting public transport. This is evident from all the main policy documents
of government. These main policy documents were analysed to ensure that
this project addresses the most important requirements in this regard.
The following relevant national and provincial policy documents were

analysed, with a view to identifying the most significant government objectives
applicable to this project.
19
National
i)
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.
Provincial
i)
Gauteng White Paper on Transport Policy, 1997.
ii) Gauteng Spatial Development Initiatives (SDIs), 1999.

iii) Gauteng Rail Development Strategy, 1999.
The table below distinguishes between extremely high priority and high
priority objectives. Further, the relevance of each objective in terms of the
Gauteng SDI Rail Link is provided.
OBJECTIVE
RELEVANCE
TOTAL
SIGNIFICANT
A. EXTREMELY HIGH PRIORITY OBJECTIVES

1.
2.
Building the economy and creating jobs

Reconstruction and development
#
#
B. HIGH PRIORITY OBJECTIVES

3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Building a better living environment

Integration and sustainability
Customer satisfaction
Effectiveness and efficiency
Effective land use planning
Optimal deployment of modes
Integrated transport and land use planning
Improved safety
Human resources development
Delivery of basic needs
Combating crime and corruption
Transformation
Minimised negative side effects
Regulation and control
Sustainable funding
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
20
It is expected that the National Land Transport Transition Act will be

promulgated soon. This legislation contains a number of provisions where
MECs 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 development
legislation to be considered in this study.
The responsibility for implementing public transport infrastructure and service
improvement projects is mainly that of local government, as these are mostly
of a local nature. At a provincial level, the focus is mainly on the services that
cross the metropolitan council boundaries and on co-operation between
metropolitan areas.
This project is an ideal opportunity for Province to be involved in a visible
public transport project, and to implement government policy noticeably.
3.3.2 Requirements for integrated transport planning
At the provincial level, the first edition of the Provincial Land Transport
Framework and Gauteng Transport Co-ordination Plan were completed in
1998. While large parts of these planning documents are still relevant today,
they primarily deal with broad policy issues and not with the practical
provincial-wide responsibilities of Gautrans. What is required is a refocus on
the Provincial Land Transport Framework in order to include present planning
initiatives of the Province including, for example, the Gauteng Bus Master
Plan, the Gauteng Modal Integration Strategy, etc. The Gauteng Rail Link
Project should likewise be included in the next revision of the Provincial Land
Transport Framework.
In this manner the Provincial Land Transport
Framework will, in practical terms, guide and direct the preparation of

Integrated Transport Plans at the metropolitan level. The refinement of the
Provincial Land Transport Framework is currently being considered.
The preparation of the first ITPs by each of the six metropolitan transport
areas in Gauteng is generally well advanced. One area (EGSC) has already
submitted its plans to Gautrans, whilst most of the other plans are expected to
be completed by September 2000.
21
The next round of ITP refinement will probably start during 2001 and should
clearly be guided by the Provincial Land Transport Framework, which will
include the Gauteng Rail Link Project.
The further development of the
Gauteng Rail Link Project at the metropolitan level in terms of its integration of
the 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 ADDRESSED

The following are some of the most important strategic objectives that have
been 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 Gauteng

SDIs
To improve accessibility and mobility in this development corridor
3.4.2 Specific objectives of the implementation project
To promote the use of public transport
To develop an integrated public transport system, inter alia through the

feeder and distribution systems
To integrate land-use and transport planning in the corridor
To identify station precincts with development potential, and use of the

concept of value capture.
22
4.
PROJECT CONCEPT AND SCOPE
4.1
PURPOSE OF THE GAUTENG SDI RAIL LINK

The Gauteng SDI Rail Link Project deals with the planning and provision of a
modern rail link between Pretoria, Johannesburg and Johannesburg
International Airport. These three areas are the main centres to be included
in the project, but the study will investigate the inclusion of other important
centres, mainly between the above main centres, but also outside the
backbone system and even the Study Area, if found to be appropriate.
This project will investigate the utilisation of appropriate and tested state-ofthe art modern technology, that can provide an excellent and acceptable
service to the passenger, at competitive travel times and speeds, and
affordable to both the passenger and government.
Comfort, safety and
security, and accessibility are some of the aspects that will be given high
priority.
As an SDI project it will also have the strategic objective of promoting
economic growth, development and employment creation.
4.2
THE STUDY AREA

The Study Area broadly comprises the triangular geographic area between
Pretoria, Johannesburg and Johannesburg International Airport (JIA), as
graphically shown in Figure 3. Apart from the three main centres mentioned
above, the Study Area includes important nodes such as Sandton, Alexandra,
Kempton Park, Midrand, Tembisa and Centurion. It contains 4 SDIs, of which
the SDI Rail Link is one. There are therefore 6 SDIs outside the Study Area.
23
24
In Figure 3, arrows indicate other areas, nodes, and activity centres outside
the Study Area, which will have to be considered for linkage now or in the
future. This includes in the South-West, Soweto and the FNB-Stadium, which
will be very important if the 2006 World Soccer Cup takes place in South
Africa. South of JIA it is the fast growing East Rand. North of Sandton it is
the fast developing Sunninghill Area connecting to the large developments in
the areas of Fourways and Kaya Sands. North-east of Centurion it is the fast
developing Menlyn area and north of the Pretoria CBD it is the developments
north of the Magaliesberg, such as the Automotive Cluster and Wonderboom
Airport, which deserve attention.
4.3
MARKET SEGMENTATION
The purpose of market segmentation in this study is to determine who will or
should use the proposed service, in other words, which market segments.
This will then indicate which areas should be served. The setting of fare
levels in order to maximise the income will also be addressed. For example,
with low tariffs higher volumes may be achieved, and with high tariffs low
volumes.
The following departure points are important:
Although the rail line will pass through certain areas and have stations in
specific areas, the collector distributor systems at stations will ensure that
most of the larger surrounding areas are covered and made accessible.
There could be different needs on different parts of the network.
The
needs on the JIA Sandton link would, for example, be quite different from
the needs on the Johannesburg-Pretoria link.
Cognisance must be taken of certain trip characteristics, including trip

purposes, the time the trip is made and the direction of travel. In order to
make the system more viable and optimise the patronage, it would be
important to target both commuting and non-commuting passengers, peak
and off-peak passengers, and also passengers travelling in both
directions.
25
A service cannot be provided that suits everybody. The choice at the end
of the day will be that of the user, whether he/she can use it, want to use it
and can afford to use it.
The following pointers provide an indication of what the possible market

segmentation could be:
The project is essentially aimed at economic development. The system,

the service and the customers/passengers must in some way promote
economic 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 be
willing to consider changing to rail. The new rail system must therefore be
markedly better than the existing rail commuter services. Door-to-door
travel time, including speed is important. In the peak period, when many
of the roads are congested, it must be substantially better than the car
alternative, and in the off-peak period it must be at least comparable.
The bias therefore seems to be towards commercial users who can afford
the trip and would be willing to pay for a good service.
Although it currently seems that there should only be one class, the fare
structure could have some flexibility, providing for example for cheaper
weekly and monthly tickets and allowing a slight differentiation in fares
from different areas.
Provision should be made for tourists and for airline passengers with
baggage, especially on certain routes and during certain periods.
Fares would be higher than on the existing system. The choice would be
entirely that of the user.
The market research and demand calculation will focus more specifically
on the different trip purposes.
To summarise, the study should determine market indicators that will

make the project commercially viable and that will attract foreign
investment.
26
4.4
RELATIONSHIP AND COMPATIBILITY WITH EXISTING RAIL

SYSTEMS
This issue deals mainly with institutional governance and also the integration
of the new system with the existing network and technology. The respective
roles of Government and the private sector, or public private partnership
options, could have been discussed here, but is discussed in a later section.
4.4.1 Institutional Structures

With regard to institutional governance, cognisance must be taken of the
development of passenger rail services over the years in South Africa,
together with the respective institutional structures.
Currently the South
African Rail Commuter Corporation, falling under the National Minister of

Transport is the owner/regulator, with Metrorail being the operator. Metrorail
is a division of Transnet, falling under the National Minister of Public
Enterprises. With the future concessioning of commuter rail services in the
country, the institutional framework will undergo further changes, but a final
structure has not yet been decided upon.
Alternative institutional structures for the Gauteng SDI Rail Link will be
developed and investigated in this study. The relationship of the SDI Rail Link
structures with the future commuter institutional structures (currently the
SARCC) can be determined when more clarity and finality is available on the
latter. The current intention is that the Gauteng Provincial Government will, at
least initially, own the rail infrastructure and that the rail services will be
provided by the private sector.
The relationship with the future Transport
Authorities is considered to be very important and will also be investigated.

4.4.2 Integration with existing network and technology
Gauteng has an existing commuter rail network and services, divided into two
operational management areas, namely the Pretoria Metrorial region and the
Wits Metrorial region. For many years it has provided good rail services for
the people it served. It has, however, not kept up to date with modern rail
development in many ways. No new rail lines have been built in the last 15
years and the rolling stock is on average more than 30 years old.
The
question in this study is what the integration and co-ordination of the new SDI
Rail Link would be with the existing network and services.
27
Some of the more important characteristics of the current technology are:
The existing gauge is 1067 mm as compared to the international standard

of 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 the
existing system.
Whether or not it would be a direct linkage onto the
existing lines, or just a transfer at a station, so that passengers would have

to change trains, would depend on a number of aspects, which will be
investigated in the study.
One of the most important aspects would be to determine whether the

existing South African gauge would be used or whether the standard
international gauge would be used.
There are many advantages and
disadvantages to be considered.
Although the possibility of good second hand rolling stock will be

investigated, the indications are that most private sector investors would
not be very keen to consider it, inter alia because of possible future
maintenance problems and costs. The chances are therefore good that
the study will focus more on proven new technology. That would also then
determine such aspects as minimum horizontal curvature, maximum
gradient, maximum speed, etc.
Life-cycle costs and economies of scale would, however, be taken into

consideration, and will to a large extent determine the most appropriate
approach.
Although there are many factors influencing door-to-door and total travel
time, speed is important. A train speed of 180 km/h or slightly higher at
this stage seems to be applicable to the anticipated type of service. Using
the term high speed is therefore not appropriate, as it is normally
associated with the TGV, ICE, Bullet-type trains that can travel at speeds
beyond 300 and even 400 km/h. This is definitely not the type of train that
will be used here.
28
A new unique image is necessary in order to maximise patronage. This

will therefore also influence what type of equipment and service that can
be used, when co-ordination and integration with the existing system is
being considered.
It also seems most probable that new railway lines will be required for the
whole or most of the new route or network. If that is the case, it could also
have an influence on the decision with regard to gauge and other factors.
Compatibility or not, as well as integration, will be determined by a large

number of factors, including gauge, signalling, electrical power supply,
rolling stock, implementation time, etc. and will be decided upon at an
appropriate stage of the study.
4.5
ALTERNATIVE
LOCATIONS
ROUTE
ALIGNMENTS
AND
STATION
The following diagram indicates the interaction between market segmentation

and route determination, as well as the process to be followed to identify
alternative alignments.
29
Although the instruction is to link Pretoria, Johannesburg and Johannesburg

International Airport, different possible alignments and networks will have to
be investigated in order to select the best alignment. The following are some
of the factors to take into consideration.
Provincial planning, such as the Spatial Development Framework,

Economic Development Framework, the Housing Strategy and the
different Transport Plans.
The land use to be served, directly and through feeder services. The
choice of station location would largely dictate the rail network and route
alignment.
Specific
spatial
development
objectives
that
will
be
taken
into
consideration include the regeneration of Central Business Districts, the

strengthening of existing vibrant development nodes as well as new town
development.
Service requirements, including travel time, transfer requirements and

integration 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 and

opportunities, topography, and existing rights-of-way such as rail and road
corridors.
Environmental constraints.
Cost implications with regard to high cost aspects such as land

procurement costs and construction costs with elevated or below ground
level sections. The high density of development as well as topography of
the area between Johannesburg and Pretoria limit the possible feasible
alignments of the alignment.
Phased implementation, as well as potential future extensions.
The rail alignment is influenced by operational considerations including the

maximum gradient ( 2.5%), minimum curve radius ( 1 200 m) as well as
station spacing.
To achieve maximum benefit of the high speed of
operation, stations are expected to be spaced at 6-10 km intervals.
30
The proposed methodology for network and route alignment, as discussed in

the study design, provides for a process whereby approximately three to six
possible alternatives will be identified and taken through an evaluation
process. One or two final networks/routes will then be proposed by the end of
August, in order to undertake the more detail planning and analysis on them.
The
following
aspects
will
be
of
importance
in
the
route/network
determination.
First indications are that the broad corridor between Pretoria and
Johannesburg, within which alternative alignments will be investigated, will
most probably have as western boundary the Ben Schoeman N1 Freeway
and as eastern boundary the existing railway line.
The Mabopane
Centurion Development Corridor and the K73 route, which has one of the
best vertical alignments, are both to the west of Ben Schoeman and all
indications are that they will not generate enough passengers to make the
SDI Rail Link feasible. A further rough evaluation will, however, be done
on them before a final decision is taken.
A link to the Sandton CBD area has been specifically identified as an

important 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 lines

and spurs can be attached would be investigated further.
Even though the intention is to have stations at the largest passenger

generators along the line, proprietary feeder distributor systems at the
stations, acting as modal integration transfer stations, are considered an
essential part of the main line-haul system.
The possibility of accommodating multiple type services on the main line

will be investigated. This would, for example include express trains not
stopping at all stations, with other trains stopping at all stations. It will also
be investigated whether such an approach would make further secondary
stations possible.
At Johannesburg International Airport, the Airports Company of South

Africa (ACSA), will be consulted as to how the SDI Rail Link can be
integrated with the development of the airport, also whether it would link to
31
a western location of the terminal complex, and/or a mid-runway location.

The different possibilities around value capture, associated with the
terminal station at the airport, will be investigated.
The CBD to CBD connection between Pretoria and Johannesburg, and the
positive influence the SDI Rail Link could have on the revitalisation of the
two CBDs, will also be considered in the planning and evaluation.
The process envisaged for the recommendation of a preferred alignment

would 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 alignment
4.6
STATION DEVELOPMENT CONCEPTS AND SURROUNDING

LAND USE
The location of stations is one of the most important aspects in the planning of
the routes and networks.
Also of great importance is the concept of the
station development itself.
A station in the right location would normally
stimulate development at and around the station, and if some of the added
value can be captured in such a way that the SDI Rail Link can directly benefit
from it, it can improve the feasibility of the project.
32
But then the Rail Link owner/manager must be able to control some of the
development or the process.
The well-known example of excellent value
capture at rail stations is Hong Kong. Very few other rail systems have been
able to achieve the same value capture as Hong Kong. Therefore, although
value capture at stations would be an objective, it is realised that it has its
limitations.
Station location would primarily be determined by existing development, or
finally decided upon and committed new development. Patronage must be
proven to ensure bankability of a project like this.
The station location and development will also provide an important interface
with the local authority. They would have to be fully involved in the location of
stations and the development concept at and around the stations. Matters
like the rezoning of land at and around the stations, as well as the possibility
of bulk service contributions allocated to the station development, must be
investigated at each station.
Depending on whether a station is located at or next to an existing
development, or at an approved new development, would determine whether
there 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 development
would have to be investigated. The possibility of having the developer funding
or providing the station should also be investigated as the station would have
direct advantages for the development its located at.
Value capture on the trip itself, such as baggage book-in, or through services
provided at stations (e.g. parking) will also be investigated.
The station
design is therefore also important.

Although it will not affect the direct bankability of the project, the longer term
policy of government regarding the land use in the areas surrounding stations
are very important for the longer term success of the project. Densification at
nodes (and corridors) is essential for increased usage of public transport and
the economic and financial feasibility of public transport projects.
33
Such densification would include all types of land use, including residential, to
ensure trips in both directions during the peak periods. Both provincial and
local government would have to actively support such an approach of land
use and transport integration.
Government has an obligation towards the
promotion of public transport, in terms of the new National Land Transport

Transition Act. Such obligation can only be successfully dispensed with if
public transport supporting land-use restructuring takes place in the study
area.
4.7
FEEDER AND DISTRIBUTION SYSTEMS AT STATIONS

As mentioned before, the feeder and distribution systems forms a critically
important part of the SDI Rail Link project.
Based on existing passenger profiles in the corridor, the larger group of
potential 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 high
quality
Their needs, requirements and perceptions are such that they will as a rule
not be satisfied (in terms of quality of service and image) by the public
transport system in its existing form, for travel to and from stations.
The question arises whether the existing public transport system and modes
can be adapted or restructured to provide the feeder/distributor services? It is
believed not to be desirable, because:
It may not be cost effective to change the quality and image of these
services 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 desire
lines
The rail operator may not be able to control or directly influence key issues
related to the feeder/distribution services, which may harm its potential
market share.
34
It is thus concluded that the current public transport services (even if adapted)
cannot fulfil the primary role of transporting the larger group of customers to
and 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 transport
services, and the Rail Link operator must be able to control or significantly
influence operational decisions (i.e. frequencies, area coverage, etc.). It is
proposed that the dedicated public transport feeder/distribution systems
should be operated by the Rail Link operator or in an integrated manner by
operators commercially contracted to it.
The choice of the modes to be employed for the primary dedicated public
transport feeder/distribution systems should be based on demand per
corridor, modal niches and may be a combination of modes.
The Rail Link may have to compete directly with high quality taxi type services
for the same customer base, e.g. the current 25-seater vehicles being used
between Johannesburg and Pretoria and the new "recapitalised" vehicles to
be phased in during the next five years. It is proposed that mechanisms be
pursued to bring these operators into an integrated system, to provide
feeder/distribution services to stations and not operate in competition.
Some of the passengers will find it more convenient and will be prepared to
use existing public transport services as feeders/distributors. Attention should
therefore be paid to the integration and restructuring of such existing bus and
rail transport services to support this project. However, it is proposed that this
be dealt with more extensively a part of other processes (e.g. rail
concessioning, bus contracts and permission strategies).
It is proposed that dedicated public transport feeder/distribution services
primarily be focused on high-density employment, retail and commercial
nodes. A secondary focus may be higher density residential areas, as well as
satellite park-and-ride sites in lower density areas.
In the lower density
residential areas many of the potential passengers would use park-and-ride

facilities at the origin station. The feeder/distributor services to these areas
would thus be of lower coverage and intensity.
35
Integrated-ticketing and information services, as well as integrated schedules,

will be essential between the rail service and the public transport
feeder/distribution services.
Depending on the percentage of infrequent (i.e. business people, social
travellers and tourists) travelling customers and the costs related to providing
such services (or profit to be made from), attention should be given to
providing the following at all or certain stations, probably through quality
controlled concessions:
Metered taxi services,
Dial-and-ride services, and
Car hire.
Given the profile of the potential customers, park-and-ride facilities will have to
be provided at most if not at all stations. This must include integrated pricing
between parking prices and fares. The operations of park-and-ride facilities
may also be contracted out by the SDI Rail Link management.
Surrounding
land
uses
to
stations
must
be
such
that
it
reduce
feeder/distribution requirements over time and optimise walking access to the

rail system.
4.8
TECHNOLOGY
The technology to be utilised on the proposed rail network will have to be
aimed at achieving firstly the project objectives, but also the specifications in
travel times and passenger comfort levels.
From a fundamental viewpoint, the technology to be used will comprise the
most appropriate modern but tested technology that would result in a
sustainable and effective system from a life-cycle cost perspective.
4.9
SAFETY AND SECURITY

It is important that the necessary actions are taken to positively influence the
passengers perception of commuter rail as a safe and secure transport
mode.
36
Some 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
Parking
Planning and design principles and specifications will have to be

developed.
Costing implications will have to be determined.
4.10 LIGHT FREIGHT

The Gauteng SDI Rail Link will not accommodate any of the Spoornet freight
trains. However, an investigation will be done on the conveyance of parcels
and 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 freight
services 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 Link
elements of this project.
37
5.
IMPLEMENTATION CONSIDERATIONS AND

PARAMETERS
5.1
FEASIBILITY AND BANKABILITY

The Gauteng Cabinet has already accepted the SDI Rail Link as one of the
ten SDI projects to be implemented if at all possible.
Its willingness to
implement has therefore been illustrated and was based on a number of

considerations.
This is the reason why this study is not only a feasibility
study, but also a planning and implementation study leading to a Request for
Proposals.
Therefore it is not only the feasibility for Government that is
important, but even more so the feasibility and bankability for the private
sector, as they would have to become fully involved.
Feasibility can be considered firstly as the general factors that should be
present to make the project possible (in terms of the broad description of
feasibility), and secondly, those criteria that have to be met for by any specific
body to accept the project as feasible.
Investors will require a comprehensive feasibility report, stating clearly
Governments viewpoint on the feasibility of the project, and indicating project
viability with sufficient information to judge for themselves the feasibility of the
project.
Feasibility implies that the project can be implemented. This is judged in
terms of:
Technical Feasibility
Technical Feasibility means that all the criteria are met which will indicate
that it is technically possible to implement the project.
Economic Feasibility
A project is considered economically feasible, if the benefits accruing to
the broad community (usually measured in monetary terms) is higher than
the cost of undertaking the project.
This, in other words, implies that
consideration be given whether it is worth it?
38
For this purpose, the benefits (even the value of life and travel time
savings) have to be quantified and put into monetary terms in order to
compare these with the project costs.
In addition, the future value of
money must be determined in order to compare future benefits with

current construction costs. This is calculated by discounting the future
costs and calculating nett present values.
Taxes and subsidies are
ignored (as these entail cross allocations within the community being
considered which are not applicable for economic feasibility assessments).
Financial Viability
Financial analysis concerns the financial position of a person, or
organisation, so that both cost and benefits are measured in terms of
money spent or received, regardless of whether the prices are a good
reflection 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 analysis
is largely related to the bankability of the project, which is very
important to ensure private sector interest and competition in the
tender process.
Government (Gauteng Provincial Government and the Transport

Authorities) who will be responsible for some investment, and possible
subsidy, burdens.
The passengers using the system, who will decide whether or not to
use the proposed system.
Socio-political acceptability
This measure of feasibility considers the acceptability of the project by the
affected communities. It would include aspects such as whether or not the
project meets government objectives and goals.
These could include
goals such as job-creation, transformation, and creating opportunities for

SMMEs
39
The 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 to

be investigated further, but at this stage, all indications are that the
requirement 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. RISKS
It is extremely important to identify the risks that may impact on this project as
soon as possible. This is firstly important with regard to the feasibility and,
secondly to enable the project planning and design tasks to address these
risks. The latter may be with the view of eliminating the risks, or at least to
introduce mitigating measures and to limit the impact of the risks.
In addition to the identification of the risks involved, it is important to also

consider the allocation of those risks to the appropriate body responsible who
is in the best position to deal with such risks.
The following risks have provisionally been identified:
5.2.1 Patronage Risks
A number of factors outside the control of the operator and investors of the
proposed 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 operators
40
The congestion levels on the parallel roads. The impact of the introduction
of new roads and additional capacity to existing parallel roads (as part of
the 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 Risks

Financial risks may include the following:
Risks pertaining to the inflation rate
Risks pertaining to the exchange rate (for those components that have to
be imported)
Risks pertaining to land taxes
Risks pertaining to interest rates
Risk resulting from changes in the unemployment rate or factors impacting

on 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 Rejection

The public generally accepts public transport improvements. However, public
transport in South Africa does not have a good record, which may result in
substantial resistance to accept the positions of the stations and the railway
lines from the adjacent land owners.
5.2.4 Environmental Risks

There are a number of environmental risks that may impact on this project.
These should be identified and managed.
41
5.2.5 Pre-implementation Risks

These risks pertain mostly to the feasibility, and the ability of Government to
negotiate successfully with the preferred bidder. (If not well managed, it may
be 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 identified
at an early stage, so as to eliminate risks, even from the planning stages of
the project. The responsibility for the risks should be carefully considered, so
as to determine which party is in the best position to control or limit such a
risk.
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 studied
carefully, and considered how this would impact on the feasibility of the
project.
The risks that will receive special attention include the following:
-
Permits given to parallel public transport services.
(Consider the
possibility to limit parallel permits)

-
Subsidies given to parallel public transport services. (Obtain an

undertaking to limit parallel subsidies and other forms of financial and
economic support to public transport services by government.)
The taxi-recapitalisation process, and perceived possibility of subsequent

changes to public transport supply and demand. (Clarifying to investors
that this would not entail unlimited additional supply.)
Acceptable feeder and distributor services
Development controls by government.
(Introducing such controls to
facilitate densification at the station nodes.)

-
The implementation of the Toll Road Strategy and similar impacts on

parallel private transport. (This is needed to clearly indicate the relative
advantages to the investors.)
42
5.3
LEGAL ASPECTS INCLUDING OBTAINING RIGHT OF WAY

The proposed rail link will require a rail reserve along the alignment which will
be determined as part of this planning and implementation study.
This
alignment will cross different metropolitan authority areas. It will also cross
different types of land uses of which some will be open and others developed.
Some will be very high valued and others cheaper. Existing servitudes for
services such as electrical supply, telecommunication and pipelines will also
be crossed.
Due to time constraints on the implementation on this project, the only

practical way to obtain the required rail reserve, would be through
proclamation of the railway line and the expropriation of the required land,
which allows for a fair compensation process for land owners.
As was
mentioned before, it seems at this stage if the ownership of the infrastructure

would be in the hands of the Provincial Government, at least for the initial
periods.
Provincial Government has concurrent legislative competence for public

transport, including rail, in terms of the Constitution of RSA Act. Previously
provincial governments were mainly responsible for roads and much of the
existing legislation, therefore, deals with roads, including the right to
expropriate land. Gautrans is currently busy drafting a Gauteng Transport
Infrastructure Bill which includes in the definition of transport infrastructure,
facilities for the use of trains and its passengers. It provides powers to the
MEC to plan, design, construct, control, manage, develop, maintain, protect
and rehabilitate transport infrastructure, as well as to expropriate land for
transport infrastructure. The Gauteng Provincial Government will thus have
the power to expropriate land for the construction of railway lines and stations.
What is however important, is that the above Bill should be completed as
soon as possible and passed by the Gauteng Provincial Legislature. Should a
problem arise with the above process, it can be considered to utilise the
existing SARCC legislation.
43
In the planning and implementation of the Gauteng SDI Rail Link different
pieces of legislation will have to be considered. It will also be necessary to
identify legislative obstacles for the project through conducting a legal due
diligence. This is necessary in order to avoid unnecessary delays.
5.4
RESPECTIVE ROLES OF GOVERNMENT AND THE PRIVATE

SECTOR, INCLUDING PPPs
It is the intention of the Gauteng Provincial government to fully involve the
private sector in the Gauteng SDI Rail Link implementation. Therefore the
intention is to end this study with a Request for Proposals from the private
sector, 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 in
order 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 rail
infrastructure and rolling stock, including the implications of the different
ownership options on matters such as contract duration, risk transfer,
competition, control, subsidies, etc.
The different types of risks that can be financed and transferred, including
operating, interest/renewal and capital investment risks, on operating
costs, interest/depreciation, short term assets, rolling stock and fixed
infrastructure.
The different options where the revenue would be sufficient to cover, for
example, the operational costs plus a reasonable profit, the operational
costs plus depreciation, or the operational costs plus some capital
investment.
44
The length of a concession in terms of the type of risk transferred and the
typical 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 cover

operating costs and possibly some asset renewal
It may therefore be necessary to free access to assets, but there will be an

obligation to return assets in good condition at end
The possibility that government would have to fund the infrastructure or

part of it, will have to be investigated.
5.5
IMPLEMENTATION PROJECT
The proposed targeted date for commissioning of the rail service by 2005, and
the proposed deadline (to be operational by the 2006 Soccer World Cup)
result in an extremely tight implementation programme.
This implies that
there cannot be any time wastage. Government and other roleplayers will be
made fully aware of the critical constraints so that there can be no wrong
expectations.
It is important that from the commencement of the Planning and

Implementation Project the time consuming tasks are known, so that the
planning can address these from the onset.
In addition, it is important to get an early estimate of the time to complete

these tasks, in order to commence with the scheduling thereof. It is, therefor,
the intention to get input from international experience on these tasks, once all
agree with the list of identified tasks. A best case scenario and a worst case
scenario will be developed.
45
The following tasks critical to the implementation have provisionally been

identified:
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 commissioning
46
The previous list of obvious tasks will have to be refined and the Study Team
will then attempt to obtain examples and other input to estimate the time
requirements. The duration for implementation will be a key element, which
will be included in the Request for Tenders, and will be used to adjudicate the
tenders in order to meet the required deadlines.
When the Request for
Proposals is developed, finality on whether the soccer World Cup will

influence it will be known.
Figure 4 provides an indication of the
implementation of the Project.
47
48
6.
1.1 INTRODUCTION
The Business Plan and Study Design is primarily aimed at ensuring that the
scope of the project, as discussed in the preceding chapters, is achieved within
the framework of the needs of the Gauteng Government.
Some of the contents of this chapter were provided in the original brief of
Gautrans to the consultants, and the remainder is based on the investigations
undertaken during the first phase of the study.
The relationships between the various elements are illustrated in Figure 5.
Study Design
Scope
Issues
Objectives
Identify
Deliverables
Process
Envisioning
Accept
Conceptual
Planning
Budget (R)
Programme
Task
Budget allocation
Resource allocation
Task
Consultant
Project Management Structure

Consultative Structure and Process
Figure 5: Relationships
Envisioning
49
1.2 STUDY GOALS AND DELIVERABLES

1.2.1 Study Goals
The Study Goals are:
To Confirm Feasibility, and to determine what would be necessary to

make 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 the

implementation project.
1.2.2
Deliverables
In 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

the focus on Financial Viability and to facilitate Bankability;
Description of the proposed system and the design parameters of the

proposed implementation project; and
Request for Proposals from prospective bidders.
1.3 STUDY OBJECTIVES

The Study Objectives are categorised into two groups, namely the primary
study objectives, and other secondary more-specific objectives, as required to
achieve the deliverables and as requested specifically by Gautrans and the
Project Review Committee.
50
1.3.1 Primary Study Objectives

The 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 what

is required to make it acceptable and attractive for private sector
investment.
(3)
To determine the project specifications to be implemented and included

in 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 other

PPP-models)
(4)
To optimise the development potential of the corridors and nodes

involved.
(5)
To determine the financial arrangements, and to clarify the role of

government, particularly with respect to funding.
(6)
To prepare the specifications for the tender proposals (to be included in

the Request for Proposals).
(7)
To determine the impact of the Toll Road Strategy (tolling and

additional road capacity) on the proposed rail system, and give input
into an integrated road and rail development approach.
51
1.3.2 Secondary More-Specific Study Objectives

The secondary, more-specific study objectives are:
To finalise and get agreement on the concept to be used in the detailed

planning 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 to

deal with these risks.
1.3.3
To determine the impact of parallel public transport services.

Aspects to be covered
According to the Study Brief issued by Gautrans, it was required that
over and above achieving the goals and objectives listed above the
following 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 alternative
alignments.
Detailed estimation of investment and operational costs.

Detailed analysis of financing options.
1.3.4 Initial Departure Points

The 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.
52
1.4 STUDY APPROACH AND METHOD

1.4.1 Project Phasing
The project will have three main phases, namely:
Phase 1: Project Inception [COMPLETED]
Phase 2: Feasibility Assessment
Phase 3: Project Specification and Request for Proposals
Phase 1 culminated in this Project Inception Report.

For the first stage of Phase 2, two groups of tasks will be undertaken
concurrently. These two groups are:
(1)
All the tasks required for the needs assessment, such as demand
determination, market analysis and revenue projections, and
(2)
Those tasks needed for the planning of the rail system, including the
network planning and route alignment, the technology to be applied
(e.g. rolling stock, signalling, traction, etc.), and the operational
considerations.
The first group of tasks will provide indications on the revenue generation,
while the second will give indications of the investment and operational
costs. A great deal of interaction between these two groups is required to
ensure that the system is balanced with regard to supply and demand,
and to ensure that the best solution for the transportation requirements
can be found.
The more detailed phasing is diagrammatically depicted in Figure 6.
53
PHASE 1
PHASE 2
INCOME
PHASE 3
FEASIBILITY
System
Description &
Request for
Proposals
NEEDS
ASSESSMENT
INCEPTION
Project Planning
Scope
Concept
Points of Departure
Assumptions
Study Design
Demand
Determination
Market Analysis
Revenue Estimation
Technical
Economical
Acceptability
SYSTEM
PLANNING
Route Alignment
Technology
Operations
COST
FIGURE 6: PROJECT PHASING

1.4.2 Process of Alternative Sifting
It is recognised that the limited time available will impose major demands on
the study process to be followed. This project will require intensive interaction
among the team members from the different disciplines, and necessitates an
iterative process for the sifting of alternatives.
As many of the project
elements will be dependent upon one-another, and considering that any

alternatives identified within such elements will result in a large number of
system combinations, a 3-stage sifting approach was developed.
The principle of the sifting process is shown diagrammatically in Figure 7, to
illustrate the selected approach. To a large extent, this approach was built
into the detailed project programme and critical path analysis. It should be
pointed out that the intention is that the project will start at a broad level of
detail. Unacceptable or impractical alternatives will be discarded as the level
of detail increases, together with the increasing level of accuracy from the
data available.
54
1.4.3 Project Scoping

In order to focus the scope of the project, together with the study approach and
method, a number of key issues were identified.As far as possible, these key issues
were clarified during the first working session between Gautrans, the Consulting
Team and some of the key role players.
These key issues were, therefore, applied as the short-term focus of the study for the
period running to this Inception Report, as compared to the longer-term focus of the
study on the study elements.
Initial Identification of Alternatives:

Stations and Routes
Technology
Stage One Sifting
Conceptual Demand
1:50 000 Contour
Plans
Strategic
Sifting of
Alternatives
Known land-use
Stage Two Sifting
Demand: Extend
PWV-Model
Orto-photos
Investigate
Existing and
Future land-use
Stated
Preference and
Modal Choice
Model
Vertical Sections
Technical
Prioritisation
and Sifting of
Alternatives
Stage Three Sifting
Sifting of
FEASIBLE and
preferred
alternatives
Projected and
derived land-use
Project Specifications
FIGURE 7: SIFTING OF ALTERNATIVES
INCREASING
LEVEL OF
DETAIL AND
ACCURACY
55
The
following
key
issues
were
identified
and
considered
at
the
initial
conceptualization workshop.
TABLE 1: PROJECT KEY ISSUES

1.
What comprises feasibility for a project of this nature

to be implemented?
$
$
$
2.
Strategic Objectives and Study Objectives

$
$
3.
Feasibility Parameters
Under what circumstances will the project be considered feasible?
What is required to prove feasibility?
Detailed the Study Goals and Objectives
Allocate these to the Elements
Government Policy and Requirements

Identify SDI needs and list all other Government requirements in terms of
policy, legislation, etc.
4.
Market Segmentation and Passenger Profiles

Initial Conceptual Planning
Determine 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

$
6.
Intra-modal transfer vs through services

- European gauge vs Cape gauge
- AC vs DC technology
- Current Technology and Future Technology: State-of-the-Art vs
tested technology.
Broad approach of SARCC
Institutional Framework
Physical integration
Alternative Network Planning

Identify alternative networks and broad alignments to be considered for
route determination.
7. Modal Integration, Feeder and Distributor Networks
8.
Role and function of feeder and distribution services

Who should provide the services?
How can these services be ensured?
Fits into public transport system
Investigate how this system will fit into the provincial public transport
network, from ITPs and others
9.
Role of Government vs Private Sector
Determine the implementation roles such as ownership, risks and

funding
Determine implications of Governments role
56
10.
Implementation programme
Get better clarification of the Implementation Programme (Duration of
Tasks, Bidding Periods, etc.)
11.
Expropriation/Reservation of ROW
12.
Safety and Security
Powers of Gautrans and other government departments to obtain land

How can safety and security be ensured? What influences the
perceptions about this? What support will government provide to this
(Old SARP or similar)?
13.
Risks
Identify 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 Risks
14.
Technology
Characteristics of most appropriate technology
High Speed / Heavy Rail / Rapid Rail / Light Rail, etc.
Speed
Acceleration/Deceleration
At grade or elevated
15.
Station Development Concepts

How can value capture be used? Where are the main development
nodes?
16.
Economic Development Concepts
17.
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?
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 Elements

In order to group associated and common tasks as much as possible together, and
to enable the study team to meet the demands imposed by the target set, a number
of project elements were identified. The purpose was firstly to allocate the budget to
these elements and, secondly, to focus on specific interim deliverables within an
element.
57
It 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 the
groupings of the disciplines involved in the main study areas of the project.
Elements were selected to largely represent single disciplines, aimed at minimising
the need for inter-element liaison.
(However, relatively high levels of inter-
relationship will remain amongst the various project elements, and were catered for
below.) Table 2 lists the 34 project elements that were identified for this purpose:
TABLE 2: STUDY ELEMENTS

1.
Project Preparation
18.
Rail Operations
2.
19.
Rail Systems Integration
3.
Ongoing Conceptual Development 20.
Feeder & Distribution & Traffic Impact
4.
Demand Forecasting
21.
Station & Precinct Development Concepts
5.
Stated Preference Analysis
22.
Station Design Parameters
6.
Market Research
23.
Consultation And Public Relations
7.
Land Use Planning
24.
Legal And Institutional
8.
Planning Integration
25.
Environmental
9.
Socio Economic Assessment
26.
Safety And Security
10.
Route Determination
27.
Feasibility Criteria
11.
Rail Track
28.
Economic And Financial Analysis
12.
Civil Substructure
29.
Cost - Benefit Assessment
13.
Electricity Supply
30.
Risk Analysis
14.
Traction
31.
Implementation Models
15.
Telecommunication
32.
Implementation Guidelines
16.
Signalling
33.
PPP and BOT Specifications
17.
Rolling Stock
34.
Request for Proposals
1.4.5 Grouping of Elements

The 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 Project
Appraisal.
58
The grouping of the identified project elements is as follows:

Grouping
Project Leadership
Elements
Technical planning and

feasibility
Project Element
Consultation and Public Relations
Project Preparation
Project Leadership
Project Management
International Review
Legal and Institutional Aspects
Ongoing Conceptual Development
Implementation Guidelines & Specifications
Request for Proposals
Contingencies
Electricity Supply
Electric Traction
Telecommunication
Signalling
Rolling Stock
Rail Operations
Station Design Paramaters
Environmental
Safety and Security
Rail Systems integration
Route Determination
Land-Use Planning
Planning Integration
Route Determination
Permanent Way (Rail Track) and Reserve
Civil Substructure and Engineering Services
Rail Systems Integration
Feeder & Distribution Services
Stations & Precinct Development
Demand and Revenue

Forecast
&
Project Appraisal
Demand Forecasting
Stated Preference Modelling
Surveys (Stated Preference & Demand)
Socio-Economic Analysis
Feasibility Criteria
Economic Evaluation (Cost-Benefit Analysis)
Financial Analysis
Risk Analysis
Implementation Models
PPP / BOT Specifications
59
1.5 STUDY PROGRAMME

1.5.1 Introduction
The proposed Study Programme is based on a Critical Path Analysis (CPA) of
the most critical elements that will determine the completion of the study. Due
to the need to finalise implementation and to run the first train prior to the
Soccer World Cup in 2006, it was decided that this Planning and
Implementation 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 be
adopted, 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 out
simultaneously, in order to achieve the targeted milestones. A number of
milestones were identified, and the tasks were put into phases similar to the
project element groupings. It should be clarified that the tasks included in the
CPA were only those time-consuming tasks that would determine the project
process. The other tasks, even if extremely important but not determining the
total duration of the project, were not included. In addition, it should be noted
that the process shown on the CPA comprises the deadlines for the tasks,
as any delays beyond these deadlines would entail a delay in the final
completion date of the study. The Project Committee will set target dates
prior to these deadlines.
1.5.2 Milestones in Programme
A number of milestones in the programme have been identified. Some of the
most important milestones are as follows:
60
COMPLETED MILESTONES
26 April 2000
Verbal appointment of the Consultants by MEC
5 May 2000
Briefing of the consultants by the HOD
29-30 May 2000
Scoping workshop between Gautrans, consulting team

and some of the role players
13 June 2000
First Project Review Committee Meeting
CURRENT MILESTONES
15 June 2000
Submission of Inception Report
FUTURE MILESTONES
16 July 2000
Announcement of the Soccer World Cup Host Country
Mid July 2000
Consultative Conference
End July 2000
First network alternatives to Project Review Committee
End August 2000
Submit preferred network alternatives for acceptance

(route and station location alternatives)
End October 2000
First indication of feasibility outcomes

(for budgetary purposes)
End December 2000
Submit Interim Report on Feasibility
End March 2001
Final Report
Request for Proposals & Project Description
A more comprehensive list of milestones is indicated on the GANTT-diagram

attached as Figure 8.
1.5.3 Detailed (Rolled-up) Gantt chart
A rolled up version of the detailed Gantt chart is shown in Figure 9. This only
shows the summaries of the critical tasks.
61
62
63
From this rolled-up GANTT diagram, the following is evident:
Various project elements will have to overlap to a large extent to achieve to

demands imposed by the milestones.
As the level of detail and the accuracy of estimates improve, a number of

milestones and deliverables are required.
These internal deliverables and
milestones 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 STRUCTURE

1.6.1 Introduction
A project-specific approach is used as basis for the project management and
consultative structure.
The project management and consultation principles are
shown diagrammatically in Figure 10.
Consultation Principle
CONSULTATION
STRUCTURE
BROAD
COMMUNITY
TCC &
GRP
Ad hoc
Ad hoc
consultation
consultation
PROJECT MANAGEMENT
STRUCTURE
STEERING COMMITTEE
REVIEW
COMMITTEE
PROJECT
COMMITTEE
CONSULTANTS
FIGURE 10: PROJECT MANAGEMENT & CONSULTATION IN PRINCIPLE
The approach followed in this structure allows for high-level consultation at

the level where the strategic aspects of this study are considered and
decided, namely at the Gauteng Provincial Cabinet Cluster level.
More
detailed issues of local concern will be addressed by the Project Review

Committee, which will act in the format of a project management committee.
64
The application of this approach is shown in Figure 11, which provides the
detail for both the project management and consultation structures.
1.6.2 Provincial Steering Committee
The Provincial Steering Committee will act as the main decision-making
body for this project. For this purpose, the committee should meet when
important decisions have to be taken on the final and the interim deliverables.
At this stage, three important dates are foreseen for decision-making
purposes, namely:
Before the end of June 2000 to accept the Inception Report.
Approximately by the end of August 2000 to select the preferred network
system, or alternatives.
Early in 2001 to approve the Feasibility Report.
In April 2001 to accept the final deliverable, and to agree on the
implementation guidelines.
It is suggested that the Provincial Steering Committee should function under
the Provincial Cabinet Cluster responsible also for transport matters. This
implies that the MECs and HODs of the following provincial departments
would 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
Housing
Over and above his role as member of the cluster, the HOD for Transport and
Public Works will, ex officio as the official project leader from the Provincial
Government, be a member of this committee and will submit progress reports,
and will present proposals to the committee for consideration.
65
1.6.3 Project Review Committee

The Project Review Committee was established to steer the project also at
the technical level. This committee set its meetings in accordance with the
specific milestones, when significant deliverables will be submitted, and seven
meetings 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 and

Services Councils)
Gauteng Department of Finance & Economic Affairs
South African Rail Commuter Corporation
SDI Co-ordinator
Consulting Team.
1.6.4 Provincial Project Committee

The Provincial Project Committee will be the main committee where the Provincial
Project Leader (the HOD of Gautrans) will meet the members of the Consultants
Committee to get progress reports and deal with all project administrative matters
such as budgets, etc. The SARCC will be represented on this committee to ensure
that appropriate technical input can be guaranteed.
This committee will meet fairly regularly, and will be chaired by the Provincial Project
Leader, the Gautrans HOD.
66
67
1.6.5 Consultants Committee

The Consultants Committee is a technical committee under the chairmanship
of the lead consultant, Mr. Olaus van Zyl from Khuthele Projects, where
issues of a technical nature and the project management aspects are dealt
with. This committee meets on a frequent basis, which is weekly or twice
monthly for the initial stages of the project. The frequency will be judged
throughout the project, to ensure that sufficient co-ordination can be ensured.
This committee will, furthermore, act as the main internal project co-ordination
structure where issues of common concern will be dealt with. However, the
focus will be on driving the project process and reporting on the project
management aspects.
Over-and-above the Project Leader, Olaus Van Zyl, and the Secretariat, Nina
Otto, the committee will consist of a representative from Gautrans and
representatives from each consulting company:
Such representatives will
come from the following people:
Gautrans
Stephen Burnett and other appropriate departmental representatives who
are available
Khuthele
George Negota
John Maluleke
Johan Venter
John Morgan
Arcus-Gibb
Abbas Jamie
Nick Ras
Herman Joubert
Unathi Mntonintshi
Lebone Engineering
Thomas Molamu
Tlaleng Moabi
Pitso Thoalane
Thomas Maluleke
68
1.7 INTERNAL PROJECT MANAGEMENT STRUCTURE

The internal project management structure will deal with the purely technical
co-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. These
Tasks Groups will meet only as-and-when-required, and will mostly be informal
without formal minutes.
The members of these task groups will depend on the subject being
considered, and will usually have representatives from all three consulting
companies. Representatives from Gautrans may attend these meetings when
available, and selected representatives from specific role-player bodies will be
invited to attend when appropriate depending on the nature of the specific
issues to be discussed. The following task teams were identified (see also the
grouping of elements above):
Project Leadership
and Conceptual
Planning
Technical Feasibility
and Project Planning
Demand and Revenue

Forecast & Project
appraisal
Route Determination
and Station Placing
1.8 CONSULTATIVE PROGRAMME

1.8.1 General Approach
This project will have many interfaces with local and provincial stakeholders
and role-players. A high-degree of consultation will, therefore, be required.
69
The primary consultation approach, as discussed above and depicted in

Figure 6, will be that the high-level political representatives of this project (i.e.
the members of the Provincial Steering Committee) will consult directly with
the broad community and public of Gauteng.
On the other side of the spectrum, technical representatives from all the main
role players will be invited to participate directly in the Project Review
Committee (which goes beyond consultation only and also deals with the
project management).
At a number of strategic milestones, opportunity will be given for strategic
input.
It is proposed that these be done at a limited number targeted
consultative conferences.
The detail of the consultative structure is shown in Figure 11 above, and
discussed briefly below.
1.8.2
Consultative Conferences
It is proposed that two or three major consultative conferences be held, where
opportunity for consultation with all the role players and the main stakeholders
can be provided.
The first consultative conference will be aimed at obtaining support for the
project and methodology applied, but will be mainly driven at obtaining input
into the planning process and the identification of alternatives to be
investigated.
The second consultative conference will be aimed at
acceptance in principle of the proposed implementation proposals and

programme 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 mid

February, 2001
It will be considered whether an Investors Conference, aimed at addressing

the needs and requirements of prospective bidders for the BOT project,
should be held.
70
6.7.3 Consultation with TCC and GRP

Most members of the TCC (Gauteng Transport Co-ordination Committee) and
the GRP (Gauteng Rail Planning Co-ordination Committee) will also be
members of the Project Review Committee.
However, as the TCC and GRP are the official institutional structures of
Gauteng, in the format of a partnership between the main governmental
organisations involved in transport, these structures should be involved in the
consultation process. It is proposed that such consultation should take place
as 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 on
local planning and co-ordination by Gautrans, and where the interfaces with
the Integrated Transport Plans of the future Transport Authorities, and the
Gauteng Provincial Transport Framework have to be discussed.
This project has for some time (since 1998) been a standing item on the
agenda of the GRP Committee. It is proposed that this remains the case,
particularly to the extent it impacts on the further development of the Gauteng
Rail Transport Development Strategy, and to consider the role of GRP with
the implementation proposals from this study.
The TCC and GRP furthermore, gives and opportunity to the other members
who are not involved in the Project Review Committee to be consulted and to
give input into the planning approach. These other members will include the
Airports Company of South Africa (ACSA), the Gauteng Department of
Development Planning and Local Government (DDLG), and Metrorail.
1.8.3 Focused Consultation
Indications are that a high degree of focussed consultation meetings will have
to be arranged with the metropolitan councils, local authorities and other role
players. Such meetings will be objective-specific and will be arranged on an
as-and-when-required basis. Much of these arrangements will take place on
a 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 be
given to consult the metropolitan and services council councillors responsible
for transport matters.
This request was made by the Project Review
Committee.
71
1.8.4 Communication Structures

The nature of the proposed SDI Rail Link Project is guaranteed to generate
significant media and public interest.
There will be supporters and
protagonists, and there may also be opponents and antagonists. The latter
will include people who may oppose the project for political reasons, for
financial and technical reasons, for environmental reasons and those who
may be sceptical about the feasibility.
For this reason, communication in this project will although using a fully
transparent process be structured in such a way as to optimise the provision
of clear, unbiased and technically correct messages.
A holistic approach towards communication will be established, which will
include, for example, the setting up of a database for stakeholder
communication, a number of press releases and focussed press conferences.
7.
CONCLUSION
This is a very important project for the people and the Government of Gauteng. It is
in 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 severe
transport problems.
The limited time available to conclude this study and implement the project
successfully requires effective project management and co-ordination, and also cooperation from all concerned.
EXECUTIVE SUMMARY
1.
INTRODUCTION
In 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 ten
Spatial Development Initiations (SDI's), which will link Pretoria, Johannesburg and
Johannesburg International Airport by rail.
The area between Pretoria and Johannesburg is one of the fastest growing areas in
the country. Additional transport capacity is urgently required, as is evident from the
severe traffic congestion on all roads in the area. Such capacity should be provided
through additional roads and through public transport. Where it is the explicit policy
of Government to promote public transport, this project can be a very forceful and
notable illustration of Governments commitment to achieve that goal.
The co-operation between the different spheres of government will be extremely
important and will be an integral part of the study. Similarly co-operation with all
other stakeholders, including representatives of the transport modes, is essential.
A consortium of consultants consisting of Khuthele Projects, Arcus-Gibb and Lebone
Engineering was appointed on 26 April 2000 to assist Gautrans with the execution of
the 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 to
the MEC for Transport and Public Works, Min. Khabisi Mosunkutu, who will report to
the Provincial Cabinet and the Premier on a regular basis. This project will be
undertaken in close collaboration with the Department of Finance and Economic
Affairs and its SDI Co-ordinator.
2.
BACKGROUND INFORMATION
The fast growing JohannesburgPretoria corridor clearly demonstrates the

interaction 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 private
transport, and also that the increasing road traffic congestion may soon start to
strangle 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 be
feasible, and that they would like to investigate the opportunities that such a rail
system would offer.
ii
The pre-feasibility study was done by German Consultants, appointed by the

Bavarian Government (in its twinning agreement with Gauteng) and completed
during September 1999.
The following were some of the most important
conclusions:
3.
Even the construction of a new toll road in this corridor (the PWV-9 road
between Johannesburg and Pretoria, west of the N1) would not solve the
transport problem for the future. It is, therefore, indispensable to complete the
existing transport system by means of a public transport system that would be
independent from the existing road network.
taking into account the economic and environmental benefits accruing
usually 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 railway
project is feasible in economic terms.
Some of the alternatives investigated showed that it should be possible to cover
the total operating costs by fare revenues.
" further investigations are necessary and justified.
It is therefore
recommended to carry out a more comprehensive feasibility study"
IMPORTANT DEPARTURE POINTS AND CONSIDERATIONS
The direction provided by the Gauteng Spatial Development Framework supports the
implementation of the SDI Rail Link. It should play an important role to achieve a
more sustainable spatial development structure in Gauteng. It is indicated that it will
contribute to the regeneration of the CBDs, development of new town areas, and
strengthening the existing vibrant nodes.
The following are some of the most important strategic objectives that have been
identified:
4.
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.
PROJECT CONCEPT AND SCOPE
This project will investigate the utilisation of appropriate and tested state-of-the art
modern technology, that can provide an excellent and acceptable service to the
passenger, at competitive travel times and speeds, and affordable to both the
passenger and government. Comfort, safety and security, and accessibility are
some of the aspects that will be given high priority. As an SDI project it will also
have the strategic objective of promoting economic growth, development and
employment creation.
iii
Study Area
The Study Area comprises the triangular geographic area between Pretoria,
Johannesburg and Johannesburg International Airport (JIA), and includes important
nodes such as Sandton, Alexandra, Kempton Park, Midrand, Tembisa and
Centurion. Soweto and the FNB-Stadium, which will be very important if the 2006
World Soccer Cup takes place in South Africa, will be functionally linked, as well as
other areas such as the East Rand, the fast developing Sunninghill Area and the
Menlyn area in Pretoria.
Market Focus
Market segmentation considerations will be applied to determine who will or should
use the proposed service. The setting of fare levels to maximise the income will be
addressed. The following departure points are important:
Collector and distributor systems at stations to ensure the accessibility of larger

catchment areas.
The unique needs of different parts of the network (such as the JIA Sandton
link).
A service cannot be provided to suit everybody. Fares would be higher than on
the existing rail system. Users will decide whether they can use it, want to use it
and can afford to use it. .They have a choice.
The project is essentially aimed at economic development. The system, the
service and the passengers must promote economic activity.
The type of service, including its cost and travel time, must be such that the car
user would be willing to consider changing to rail.
The bias seems to be towards commercial users who can afford the trip and
would 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 Systems

Currently the South African Rail Commuter Corporation (SARCC), falling under the
National Minister of Transport, is the owner/regulator and Metrorail the operator.
Metrorail is a division of Transnet, falling under the National Minister of Public
Enterprises. With the future concessioning of commuter rail services in the country,
the SARCC-related institutional framework will undergo further changes. Alternative
institutional structures for the Gauteng SDI Rail Link will be developed and evaluated
in this study, including its relationship with the above structures. The current
intention is that the Gauteng Provincial Government will, at least initially, own the rail
infrastructure 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 stock
are already more than 30 years old. No new rail lines have been built in the past 20
years. The broad approach is that the current initiative should be co-ordinated with
the existing rail system. Investigations will be done whether to use the existing
South African gauge or the standard international gauge. Although the possibility of
good second hand rolling stock will be investigated, possible future maintenance and
iv
costs may result in problems. Life-cycle costs and economies of scale will to a large
extent determine the appropriate approach. Train speeds of approximately 180 km/h
or slightly higher seems to be applicable to the anticipated type of service and type
of train to be used. The term "high speed" is therefore not appropriate. A new
unique image is necessary to maximise patronage, which will influence the type of
equipment and service. It seems most probable that new railway lines will be
required for the whole or most of the new route or network.
Alternative Route Alignments and Station Locations
The proposed methodology for network and route alignment provides the
identification and evaluation of approximately two to five alternatives. One or two
final networks will be proposed by the end of August 2000 as a basis for more
detailed planning. The following are some of the important aspects in the
route/network determination:
The broad corridor between Pretoria and Johannesburg will most probably have
as western boundary the Ben Schoeman N1 Freeway and as eastern boundary
the existing railway line. Where possible existing road and rail corridors will be
utilised.
The possibility of accommodating multiple type services on the main line will be
investigated.
The Airports Company of South Africa will be consulted as to how the SDI Rail
Link can be integrated with the development of the Johannesburg International
Airport.
Station Development Concepts and Surrounding Land Use

The location and development of stations is one of the most important aspects in the
planning of the routes and networks. Station location would primarily be determined
by existing development, or committed new development. Local authorities would
have 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 service
contributions and the legal implications for government involvement will be
investigated, 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 use
in the areas surrounding stations is important for the longer-term success of the
project. Densification at nodes and corridors is essential for the feasibility of public
transport projects.
Feeder and Distribution Systems
Primary public transport feeder/distribution systems should be dedicated and
generally of a higher quality than most of the existing public transport services. The
Rail Link must be able to control or significantly influence operational decisions of
such services. Mechanisms should be pursued to bring certain taxi operators into the
integrated feeder/distribution system. Attention should also be paid to restructure
existing bus and rail transport services to support this project.
Consideration should be given to providing metered taxi, dial-and-ride and car hire
services at certain stations. Park-and-ride facilities will have to be provided at all
stations.
Technology
The technology to be utilised will be aimed at achieving the objectives regarding
travel times and passenger comfort levels. The technology to be used will comprise
the most appropriate, modern and tested technology that would result in a
sustainable and effective system from a life cycle cost perspective. The necessary
actions should be taken to provide safe and secure facilities and services, and to
positively influence the passengers perception of commuter rail as a safe and
secure transport mode.
5. IMPLEMENTATION CONSIDERATIONS AND PARAMETERS

Feasibility can be considered firstly as the general factors that should be present to
make the project possible and those criteria that have to be compiled with by any
specific body to accept involvement in the project. Investors will require a feasibility
report, stating clearly Governments viewpoint on the feasibility of the project and
indicating project viability.
It is extremely important to timeously identify the risks that may impact on this
project, to enable the planning to address these.
Different legislation will have to be considered, as it will be necessary to identify
legislative obstacles in order to avoid unnecessary delays.
As the intention of the Gauteng Provincial Government is to fully involve the private
sector in the implementation, this study will eventually provide for a Request for
Proposals from the private sector, probably in the form a BOT process.
Implementation Project
The proposed targeted date for commissioning of the rail service by 2005, and the
proposed deadline (to be operational by the 2006 Soccer World Cup if held locally),
will result in an extremely tight implementation programme. Government and other
roleplayers will be made aware of the critical constraints to avoid wrong
expectations.
The duration for implementation will be included in the Request for Proposals, and
will be used to adjudicate the proposals in order to meet the required deadlines.
vi
6.
In 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 the
focus on Financial Viability and Bankability in order to attract private sector
investment,
Description of the proposed system and the design parameters of
implementation 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 Proposals
A number of milestones in the programme have been identified, including:
26 April 2000
5 July 2000
Country
End October 2000
End December 2000
End March 2001
Verbal appointment of the Consultants by MEC

Announcement of the Soccer World Cup Host
First indication of feasibility outcomes (for
budgetary purposes)
Submit Interim Report on Feasibility
Final Report: Project Description & Request for
Proposals
The approach followed contained the identification and evaluation of 17 key issues in
order to get clarity of the project focus and concept. Thereafter 34 study elements
were identified for more detailed analysis in the study.
The Provincial Steering Committee will act as the main decision-making body for
this project. It should function under the Provincial Cabinet Sub-Cluster, including
the 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
Housing
A Project Review Committee has been established to steer the project at the
technical level. The members of this committee will include representatives from the
following:
Provincial Project Leader & Gautrans Officials

National Department of Transport
vii
Transport Authorities (Metropolitan and Services Councils)

Gauteng Department of Finance & Economic Affairs
South African Rail Commuter Corporation
SDI Co-ordinator
Consultants
Extensive consultation will take place, through two consultative conferences, an

investor conference and focussed consultation meetings. The involvement of many
stakeholders in the management process will also facilitate consultation.

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GAUTENG PROVINCIAL GOVERNMENT

Department of Transport and Public Works

Gauteng SDI Rail Link

Announcement of the Project ........................................................................... 1

An important Project ......................................................................................... 1

Appointment of Consultants ............................................................................. 3

Structure of this Inception Report ..................................................................... 4

Previous Provincial Studies .............................................................................. 6

Events leading to the Project ............................................................................ 6

IMPORTANT DEPARTURE POINTS AND CONSIDERATIONS

Gauteng Provincial Spatial Development Initiatives (SDIs) ............................. 9

Gauteng Spatial Development Framework ..................................................... 10

Government Policy, Legislation and other Requirements............................... 18

PROJECT CONCEPT (SCOPE)

Purpose of the Gauteng SDI Rail Link............................................................ 22

The Study Area............................................................................................... 22

Market Segmentation (market to be served) .................................................. 24

Relationship and Compatibility with existing rail systems ............................... 26

Alternative route alignments and station locations.......................................... 28

Station Development Concepts and surrounding Land Use ........................... 31

Feeder and Distributor systems at stations .................................................... 33

Safety and Security ........................................................................................ 35

IMPLEMENTATION CONSIDERATIONS AND PARAMETERS

Feasibility and Bankability .............................................................................. 37

Legal Aspects, including obtaining Right-of-Way ........................................... 42

Role of Government and the Private Sector, including PPPs ........................ 43

Implementation Programme ........................................................................... 44

BUSINESS PLAN AND STUDY DESIGN

Study Goals and Deliverables ........................................................................ 49

Study Objectives ............................................................................................ 49

Study Approach and Method.......................................................................... 52

Study Programme .......................................................................................... 59

Project Management Structure....................................................................... 63

Internal Project Management Structure.......................................................... 68

ANNOUNCEMENT OF THE PROJECT

The Premier said that

following a pre-feasibility study, which was concluded last year; a

approached in the light of the three strategic priorities of the Gauteng

Accelerated economic growth, development and infrastructure delivery,

Quality service delivery

Gauteng SDI Rail Link Inception Report, 15 June 2000

It is the explicit policy of Government to promote public

transport, inter alia by ensuring the provision of adequate infrastructure,

This project can be a very forceful illustration of

Governments commitment to promote public transport.

Gauteng SDI Rail Link Inception Report, 15 June 2000

Group member, will also involve Gibb-Rail, a leading international railway

communication and consultation. They have had extensive experience in

Gauteng SDI Rail Link Inception Report, 15 June 2000

THE PURPOSE AND STRUCTURE OF THIS INCEPTION REPORT

The project concept in terms of purpose and function

The Study scope

The points of departure

Assumptions and pointers accepted by the Study Team

Gauteng SDI Rail Link Inception Report, 15 June 2000

Chapter 2 provides some of the background leading up to this study. It

There are a number of important departure points and considerations

Chapter 4 discusses a number of key issues in order to get clarity on the