Progress on the Development of IPTN and BRT in Cape Town
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- Dominic McCormick
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1 CITY OF CAPE TOWN TRANSPORT, ROADS AND STORMWATER Progress on the Development of IPTN and BRT in Cape Town Presented to the South African Bus Operators Association Conference and Exhibition 23 rd February 2012 Reggie Springleer Manager: Industry Transition Integrated Rapid Transit Operations City of Cape Town
2 OUTLINE - System Roll-out - Business and Industry Transition Model - Operations - AFC myconnect
3 What is the Roll-out? Milestone 0 Beginning of May 2011 Tableview and Airport Trunks Plus Interim Services in Inner City & Table View Full Phase 1a
4 Chapter Title Small descriptor
5 What is the Roll-out? Milestone 1 October Inner City Feeders + Interim Table View Feeders Full Phase 1a
6 What is the Roll-out? Milestone 2 End of Table View, Montagu Gardens & Century City feeders 3 Full Phase 1a
7 What is the Roll-out? Milestone 3 February Atlantis Trunks and Feeders 4 Full Phase 1a
8 What is the Roll-out? Milestone 4 September Du Noon Trunk 5 Full Phase 1a
9 Integrated Rapid Transit System Phase 1a Business and Industry Transition Model
10 Business Model
11 Existing Model CURRENT BUS OPERATOR Operating the buses Ticketing Fare collection System Information Marketing the service Bus stop maintenance Termini management Depot management Depot owner Contract Monitoring CITY OF CAPE TOWN PGWC
12 IRT Model IRT VEHICLE OPERATOR COMPANY Operating the buses Ticketing Fare collection System Information Marketing the service Bus stop maintenance Station management Depot management Depot owner Contract Monitoring CITY OF CAPE TOWN
13 Control Centre Contractor Fare collection monitoring System Information Contract Monitoring SERVICE DELIVERY AGREEMENT WITH Fare System Contractor Ticketing system & equipment Fare collection MUNICIPAL IRT ENTITY TENDER TENDER TENDER NEGOTIATE Station Services Contractor Ticket sales Access control System Information Station management Cleaning Security Vehicle Operator Contractor Operating the buses Depot management R413m ICT Works Pty Ltd R234m Lumen Technologies CC Tender - open
14 Vehicle Operator Contracts 2 Contracts NORTHERN West Coast 2 Companies SOUTHERN Inner City
15 Vehicle Operator Contracts (Interim arrangement) 3 Contracts NORTHERN West Coast 3 Companies SOUTHERN Inner City
16 Affected Operators PHASE 1A BROADER INDUSTRY DIRECTLY AFFECTED Peninsula T.A Central Unity T.A Blaauwberg T.A United T.A Maitland T.A Devils Peak Vredehoek T.A Ysterplaat T.A Du Noon T.A Saxonwold T.A GABS SIBANYE INDIRECTLY AFFECTED Partially Affected Motherbodies (Cata, Codeta, NTA) REPRESENTED BY SANTACO: Western Cape NOT AFFECTED ALL OTHER
17 Main Objective 9 TAXI ASSOCIATIONS Approx 980 taxis + TRANSFORM 2 BUS COMPANIES Approx 200 buses 2 IRT VEHICLE OPERATOR COMPANIES Approx 340 buses BROADER INDUSTRY
18 CONSULTATION NEGOTIATIONS COMPANY FORMATION Transition Process PTA CUTA DPVTA BATA UTA MATA YTA DTA GABS SIBANYE MEETINGS / DISCUSSIONS / VISITS BRT SYSTEMS MEETINGS / DISCUSSIONS IRT PROPOSALS (Phase 1a) VEHICLE OPERATOR PROSPECTUS CONTRACT 1 CONTRACT 2 COMPANY A COMPANY B NEGOTIATIONS km tariff Contract document CONTRACT AGREEMENT CONTRACT AGREEMENT SIGNING OF CONTRACT SIGNING OF CONTRACT
19 Transition Process CONTRACT 1 INNER CITY Inner City Distribution Service Airport-City Trunk Service Portion of Phase 1a Trunk Service COMPANY A PTA (Peninsula T A) CUTA (Central Unity T A) DPVTA (Devils Peak Vredehoek T A) GABS (Golden Arrow Bus Services) CONTRACT 2 BLAAUWBERG Feeder services from Salt River to Atlantis Portion of Phase 1a Trunk Service COMPANY B BTA (Blaauwberg T A) UTA (United T A) MATA (Maitland T A) YTA (Ysterplaat T A) DTA (Du Noon T A) SIBANYE (Bus Company) CONTRACT 3 Portion of Phase 1a Trunk Service COMPANY C GABS (Golden Arrow Bus Services)
20 Transition Process CONTRACT 1 INNER CITY Inner City Distribution Service Airport-City Trunk Service Portion of Phase 1a Trunk Service COMPANY A PTA (Peninsula T A) CUTA (Central Unity T A) DPVTA (Devils Peak Vredehoek T A) CONTRACT 2 BLAAUWBERG Feeder services from Salt River to Atlantis Portion of Phase 1a Trunk Service COMPANY B BTA (Blaauwberg T A) UTA (United T A) MATA (Maitland T A) YTA (Ysterplaat T A) DTA (Du Noon T A) SIBANYE (Bus Company) CONTRACT 3 Portion of Phase 1a Trunk Service COMPANY C GABS (Golden Arrow Bus Services)
21 Interim Contractual Arrangement CONTRACT 1 INNER CITY CONTRACT 2 BLAAUWBERG CONTRACT 3 COMPANY A 3 Taxi Associations COMPANY B 6 Taxi Associations + 1 Bus Company COMPANY C 1 Bus Company
22 Transition Process Phase 1a Challenge Profit in new IRT system < current system Either : (a) Add operating subsidy (b) Reduce number of shareholders by offering exit / lump sum packages Compensation Model
23 MARKET SHARE STEP 1 > Determining market share Market Share BASED ON : Passenger trips Passenger km Fare Revenue Profit
24 Determining market share Operator Average Daily Pax (7-day average) Based on surveys undertaken in Oct 2010 Average Daily Fare Revenue Market Share BLAAUWBERG TA 26, , % CENTRAL UNITY TA 8,573 56, % DUNOON TA 16, , % GOLDEN ARROW BUS SERVICES 6,254 46, % MAITLAND TA 9,253 59, % PENINSULA TA 37, , % SIBANYE BUS SERVICES 19, , % UNITED TA 1,917 11, % VREDEHOEK DEVILS PEAK TA 2,473 13, % YSTERPLAAT TA 8,264 53, % Overall Total 136, , % Results issued on 18 Nov 2011
25 STEP 2 > Determining Average Legitimate profit per taxi association or route Average Legitimate Profit FROM SURVEY FARE REVENUE PASSENGER TRIPS multiplied by FARE RESEARCHED COSTS Vehicle payment Driver pay Insurance Fuel etc. PROFIT Average legitimate profit
26 STEP 3 > Calculating Compensation VALUE OF THE INDIVIDUAL TAXI BUSINESS
27 Process for determining taxi compensation
28 Calculating Compensation VERIFICATION
29 STEP 3 > Calculating Compensation Vehicle Scrapping/Surrender Allowance R57,000 Buy/sell agency?
30 Shareholding Allocation % Market Share = % Shareholding in current market in new Veh Operator Company BUS TAXI BUS TAXI
31 Acquisition of Shares Cost of shares >> Capitalisation costs Capitalisation costs include : 1. Set-up capital (equipment & furniture) 2. Performance guarantee 3. Taxi industry dividend equalisation fund
32 Jobs No Legitimate Job Losses? Started process of compiling a register of existing full time employees among affected operators Requirement in all IRT contracts preference given to people on the register
33 Other Impacts Social Impact Management of Lump Sum payments by operators Under consideration Entrepreneurship training Ancillary businesses Fund management agency
34 Integrated Rapid Transit System Phase 1a Operations
35 Key Statistics 8 x Artics (18m) Total = 42 buses 34 x Solos (12m) 10 due in Feb 12 Phase 1A = 242 buses 190 on order
36 Key Statistics Trunk Routes : Route T01 17km (Table View CBD) : Route T km (Airport CBD) Feeder Routes : Route F01 8.9km (Waterfront Civic - Gardens) : Route F km (Big Bay Table View Parklands) : Route F km (B Sands Table View-Parklands East) : Route F km (B Sands-Table View-Marine Circle) Trunk Stations : on Inner City Feeder Feeder Stops : Inner City: 31 stops : Table View: 100 stops
37 Key Statistics cont... Operator Staff : 305 (Buses: 126 & Stations: 179) Daily Passengers : 9,000-12,000 on weekdays 6,000-8,000 on weekends
38 Passenger Information & Client Services
39 Passenger Information & Client Services
40 Passenger Information & Client Services: Web Site
41 Passenger Information & Client Services CCT Transport Information Centre 21 Call Centre Agents 2 Team Leaders 2 Lead Agents Located at the TMC in Goodwood Service Provided by Transport Directorate Toll free 24/7 :
42 T1 Trunk Service 10 buses operating in peaks, 4 in off-peaks Frequency every 8 min in peak, every 20 min in off-peak 16 hours per day, 7 days per week 66 departures per day from both TV and Civic stations
43 T2 Airport Service 3 buses operating throughout Frequency every 20 min 18 hours per day, 7 days per week 52 departures per day from both Airport and Civic stations
44 F1 Feeder Service 9 buses operating in peaks, 5 in off-peaks Frequency every 10 min in peak, every 20 min in off-peak 16 hours per day Approx 160 departures per day from Civic station
45 F14, 15 & 16 Feeder Services 16 buses operating in peaks, 10 in off-peaks Frequency every 15 min in peak, every 20 min in off-peak 16 hours per day Approx 360 departures per day from TV station
46 Depots & Staging GABS Depot Woodstock Washing, refuelling, minor servicing Kidrogen Depot Foreshore Holding area only Washing, minor servicing at TP Depot Refuelling off-site Transpeninsula Depot Prestwich Street Washing, refuelling, minor servicing
47 MYCONNECT Public Communication
48 Enforcement: SSU & Metro Police SSU monitors CCTV Cameras on R27 Red Route Monitoring at TMC in Goodwood 8 monitoring desks manned by two persons per shift 48 contract staff via SLA Monitor Incidents Criminal activity Bus timing
49 Enforcement: SSU & Metro Police Reporting Feedback to other security services for action Review footage & stills of incidents Provide video evidence for investigations Bus timetable adherence
50 Enforcement: Traffic Services Enforces traffic violations on IRT Route Personnel sourced from regular staff 4 unmarked vehicles also used Blitzes IRT Lane Follows up on SSU reporting
51 Marketing cont... Newsletters
52 Marketing
53 Cape Town Integrated Rapid Transit Using contactless cards in Public Transport
54 National Vision COCT AFC - DEFINITIONS AFC = Automated Fare Collection AFC System allows for the collection of fares through the use of stored value EMV compliant contactless smartcards validated through the use of validators mounted on gates & GPS enabled mobile validators EMV SmartCard Europay, Mastercard, Visa (international banking standard) Contactless microprocessor equipped chip card (chip uses the NDOT approved data structure)
55 National Vision Integrated ticketing through AFC systems o inter-operable o global payment systems Avoid proprietary closed loop systems EMV-compliant payment instrument
56 National Regulations All public transport AFC systems introduced after June 2011 have to comply with the following: Use bank-issued fare media (eg a bank-issued card) Payment system must adhere to the banking regulatory framework Interoperable through all issuing and acquiring banks Clearing and settlement of payment transactions: through banks National Payment System For single trips, a different system may be used - but cards used in this regard may not allow a passenger to re-load trips onto the single trip card. Pre-existing AFC systems (eg Gautrain) must comply by June 2016.
57 Rollout of contactless cards myconnect card - went live Dec 2011 Issued by MyCiTi, City of Cape Town cards sold by 20 Feb 2012
58 Rollout of contactless cards Tap-i-Fare - went live end Jan 2012 Used in parts of the taxi industry in Cape Some expected launches over next period Ethikweni Rea Vaya
59 Limits and Functionality No cash back allowed - i.e. load value refunds The EMV Chip contains: Cash portion, often called the e-purse Can be used for public transport or goods & services, tolls, parking fees, or food in restaurants & groceries Transit Product portion (see later)
60 Myconnect Fees to the customer Price of card R22 per card to allow one trip on credit, to help passengers caught without value on card Discounted / free to indigent
61 Interim system The flat fare structure requires the passenger to validate on entry only and not on exit to the system;
62 existence of the backoffice Full system Distance based fares to be implemented replaces interim flat fare structure Will require that passengers validate on entry and exit to the system; The calculation for distance-based fares is made possible by the GPS capability of the fare media and the
63 Full system Will permit transit products eg for bulk purchases (R120 worth of travel) at a discount (pay only R100) Stay valid for much longer than weeklies / monthlies Validators on feeder buses
64 Benefits Pre-Authorised/Pre-paid Stored Value Enables cards to be issued to traditionally non-banked customerschildren, visiting tourists, people with low credit rating, etc. Transactions possible offline e.g. readers installed on board public transport vehicles such as buses and taxis and access gates to station platforms
65 Benefits Contactless Payments Which enables quick and easy payments (existing system is interim and not as fast and robust as the full solution, coming by end 2012) Use systems developed by the banking industry Secure and is much less vulnerable to fraud
66 Thank You, Dankie, Nkosi
67 Additional Benefits Eliminate the use of cash, other than to load card Significant reduction operating costs in large AFC systems Improve fare collection efficiency eg access gates facilitate a high throughput of passengers Enable innovative and appropriate fare structures to be introduced Up-to-date and detailed information of passenger movements, used in planning and adaptation of services
68 Open Systems OPEN SYSTEMS Payment Systems through a four-party payment model: Customer The issuing bank (Cardholder s bank) issues the card, loads value Acquiring bank (City s bank) acquires funds from issuing bank, pays City Public Transport Operator (City) provides service, received payment
69 Thank you
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