Global Trends in Public Transport – and the Impact for South Africa David Anglin, Director Business Development March 2009

The Importance of Public Transport Choices about public transit are choices about a city’s or region’s future Will there be congestion? Will there be high levels of noise and air pollution? Will transport be affordable? Who will be able to use the public transport? Building more roads does not reduce traffic New roads = more cars = more traffic! The only way to reduce cars on the roads is to offer an alternative

Choices about public transit are choices about a city’s or region’s future

Will there be congestion?

Will there be high levels of noise and air pollution?

Will transport be affordable?

Who will be able to use the public transport?

Building more roads does not reduce traffic

New roads = more cars = more traffic!

The only way to reduce cars on the roads is to offer an alternative

How Big is the Difference?

What about Rail? =

It Matters Now, More than Ever Commuter rail transportation is gaining in popularity worldwide, partly due to the economic downturn and higher fuel prices. It is not just high fuel prices, even with the massive drop in fuel costs over the past year, commuter rail usage is still increasing Privatization to increase efficiency has been used by governments to improve services without massive initial investments The current global financial climate makes it extremely difficult to implement projects with private financing There is still a need for the investment of private industry expertise in partnership with Government

Commuter rail transportation is gaining in popularity worldwide, partly due to the economic downturn and higher fuel prices.

It is not just high fuel prices, even with the massive drop in fuel costs over the past year, commuter rail usage is still increasing

Privatization to increase efficiency has been used by governments to improve services without massive initial investments

The current global financial climate makes it extremely difficult to implement projects with private financing

There is still a need for the investment of private industry expertise in partnership with Government

It Matters HERE, More than Ever In South Africa, most people live long distances away from their workplace, relying on taxis and buses to get to work. For most South Africans, traffic congestion means they must travel to work very early in the morning and can only return home late at night. No Car No Mobility No Job

In South Africa, most people live long distances away from their workplace, relying on taxis and buses to get to work.

For most South Africans, traffic congestion means they must travel to work very early in the morning and can only return home late at night.

Current Global Trends - Environment Recent studies have shown that more energy is used to transport goods than to produce them in the first place Trains have become dramatically more energy- efficient, with major improvements every year Electric trains are the best replacement for noisy, polluting, and dangerous automobiles

Recent studies have shown that more energy is used to transport goods than to produce them in the first place

Trains have become dramatically more energy- efficient, with major improvements every year

Electric trains are the best replacement for noisy, polluting, and dangerous automobiles

Current Global Trends - Performance The biggest impact on effectiveness of a rail system is the reliability of the service Reliability comes from two sources: Optimised fleet management & maintenance planning Quality design integration & manufacture

The biggest impact on effectiveness of a rail system is the reliability of the service

Reliability comes from two sources:

Optimised fleet management & maintenance planning

Quality design integration & manufacture

Current Global Trends – Technology Transfer Gradually developed over the past decades, this is an important continuing trend The transfer of modern technology to developing regions provides a long-term local capability that supports: Maintainability Building Staff Expertise Building locally creates jobs, strengthens a sustainable industry and develop a strong export business potential

Gradually developed over the past decades, this is an important continuing trend

The transfer of modern technology to developing regions provides a long-term local capability that supports:

Maintainability

Building Staff Expertise

Building locally creates jobs, strengthens a sustainable industry and develop a strong export business potential

Current Global Trends – Partnership Long-term Partnerships between operators and OEMs is proving extremely effective in reducing costs and increasing performance Standardization of products has a huge impact on maintenance costs, including spare parts, facilities, tooling, and training Partnerships enable tailor-made solutions without the pricetag!

Long-term Partnerships between operators and OEMs is proving extremely effective in reducing costs and increasing performance

Standardization of products has a huge impact on maintenance costs, including spare parts, facilities, tooling, and training

Partnerships enable tailor-made solutions without the pricetag!

Lessons for South Africa – Build NOW “ When Thomas Edison worked late into the night on the electric light, he had to do it by gas lamp or candle… … I'm sure it made the work seem that much more urgent.” George Carlin, Comedian The need for investment in the South African rail infrastructure – and the rail industry - has never been more desperate or more urgent

“ When Thomas Edison worked late into the night on the electric light, he had to do it by gas lamp or candle…

… I'm sure it made the work seem that much more urgent.” George Carlin, Comedian

The need for investment in the South African rail infrastructure – and the rail industry - has never been more desperate or more urgent

Lessons for South Africa – Build HERE Modern trains, built in South Africa will develop skilled jobs to support a permanent rail industry – that can export to the world The existing commuter rail fleet was built here, there is no reason why the replacement fleet should not also be created by a home industry What is needed is a strong commitment from Government to invest in this industry – large contracts that will support investment in facilities and training This investment must be focused on the long-term, not just 2-3 years of production, but 20 to 30 years or more!

Modern trains, built in South Africa will develop skilled jobs to support a permanent rail industry – that can export to the world

The existing commuter rail fleet was built here, there is no reason why the replacement fleet should not also be created by a home industry

What is needed is a strong commitment from Government to invest in this industry – large contracts that will support investment in facilities and training

This investment must be focused on the long-term, not just 2-3 years of production, but 20 to 30 years or more!

Lessons for South Africa – Build TOGETHER Commuter Rail in South Africa needs a massive fleet replacement effort, but the money is not necessarily there for an immediate contract award for this full project There is no currently existing product in the world that is suitable for the South African market A framework agreement that incorporates all of the local industry, as well as a global partner, would allow a customized solution with a dependable long-term price structure – a high quality train from South Africa Long-term partnerships between suppliers provide a win-win solution in which the best product is delivered but profitability is still maintained for suppliers

Commuter Rail in South Africa needs a massive fleet replacement effort, but the money is not necessarily there for an immediate contract award for this full project

There is no currently existing product in the world that is suitable for the South African market

A framework agreement that incorporates all of the local industry, as well as a global partner, would allow a customized solution with a dependable long-term price structure – a high quality train from South Africa

Long-term partnerships between suppliers provide a win-win solution in which the best product is delivered but profitability is still maintained for suppliers

Lessons for South Africa Build NOW Build HERE Build TOGETHER Build for the FUTURE

Build NOW

Build HERE

Build TOGETHER

Build for the FUTURE