Transport Provisioning FIFA 2010

1. Transport ProvisioningFIFA 2010

2. Positioning of Services for FIFA 2010for PGWC and COCT

3. Initiation of process • November 2009 (previous processes stalled) • Motivated by WCPTC (Santaco) • Creation of the Transport Consortium (pd operators) • Well received by PGWC • Recognition of potential transport issues for FIFA 2010 • Lack of budget • Much less so by CoCT, discussions masked by • IRT issues • A lack of consultative processes • A lack of transparency

4. Transport Consortium • Minibus taxi industry • Santaco (WCPTC) • Metered taxi industry • WCMTC • Touchdown • PD independent bus operators • Masephatisane • others

5. Positioning of Services for FIFA 2010for PGWC

6. Outline Approach • Fleet Capability and Capacity • Determination of requirements to deliver to agreed service levels • Establishment Costs and Support Requirements from PGWC (and CoCT) • Business Plans and Modelling • Plans and Actions

7. The legacy • There could have been a considerable legacy left post event with the central control room environment, along with the technology, which can be leveraged to provide logistical support for any future event transport requirements, whilst also fulfilling a need for the metered taxi industry for such directed services. The on vehicle tracking devices could be redeployed to any modes of transport (GABS contract) that may require monitoring re usage, kilometres covered etc.

8. Availability • Metered Taxis and Mini bus taxis – for charter or contract for short/medium/long-haul • The availability of vehicles and drivers is good – subject to contract • Training will be pivotal • Considerations must address a turn key service to the Western Cape both in the short term to meet 2010 requirements, as well as utilisation in longer term IRT/other transport programmes • Long and short haul buses, coaches and luxury vehicles (25, 44 and 60 seat capacity) • Some (new) vehicles could be made available (in SA) given the right financial terms

9. Capacity available across Province • Buses 400 • Minibuses 3000 • Metered taxis 500 (Dedicated transport available) • Other vehicles available during off peak 10.00 till 15.00 hours for PVA activities • Full fleet availability post 19.00 hours until commencement of morning commuter activities around 05.00 hours, roughly double the above figures

10. Capacity is dependent on various (constraints): • the vehicle is fit for purpose • will it be licensed in time • Assumptions based on following: • All buses from 25 + seats – current valid operating licence and roadworthy • Minibus and other taxis – less than 3 years old; current valid operating licence and roadworthy Capacity exists to deliver services between George and Eastern Cape – but this will require further discussion and positioning with the local area service providers

11. Service offering - Scheduled • Inter City buses (luxury; semi luxury) • Medium; long journeys • Regional • bus - Short to medium journeys • Mini-bus taxis/sprinters etc - short to medium journeys • Park and Ride support • bus - Short to medium journeys • Mini-bus taxis/sprinters etc - short to medium journeys • Local • Sedan metered taxis • Mini-bus taxis • Charters

12. Service offering – Non-Scheduled • Regional • Mini-bus taxis • Buses (depends on cost of contingency) • Local • Sedan metered taxis • Supported by (Mini-bus taxis) • Park and Ride • bus - (depends on cost of contingency and if Fan Jols are to be for every game or Bafana only?) • Mini-bus taxis/sprinters etc - short to medium journeys • Able to supply various technology support including • Ticketing systems • Booking, scheduling, fare management, payment, on-board systems • Control room and call centre technology

13. Requirements to deliver to agreed service levels The consortium will need to work with PGWC (and COCT) to plan the • Operational establishment • Operator Licensing and potential constraints imposed • Operation of the fleet (funding of technology is a fundamental requirement) • Vehicle scheduling; Driver scheduling; Vehicle/driver dispatch; vehicle automated monitoring; driver communications • Vehicle maintenance • Vehicle signage • Vehicle and driver accreditation • Driver villages or temporary accommodations • Fleet branding, corporate signage, livery etc • Training

14. Requirements to deliver to agreed service levels • Planned facilities (hubs; depots; Park and Rides; temporary operations; cash handling; administration etc) • Other Human Resources (marshals; CRM; ticket sales; coordinators) • Maintenance and support of the fleet and fleet related services • Bulk fuel, parts, tyres etc supply services • Technology support, integrations to existing systems etc • Communications • Marketing; fare structures; pre-booking (national/international); on-demand • Transport Serving Concept and Legacy to be acceptable to all stakeholders • Business model • Profit share • Future opportunities

15. In order to establishment • Consortium performed various financial modelling processes to establish the minimum criteria for a feasible service that delivers an acceptable level of profit share for members to distribute. • In any event the business urgently required bridging finance to enable it to participate. • The following funding was required to support the establishment • Split into two key categories; • capital costs to establish the appropriate infrastructure centrally, on-vehicles and at key points of presence within each region • operating costs to cover pre event establishment costs and expense, to allow for planning, preparation, complete set-up and training etc. • The breakdown and monthly requirements associated with these costs are available in detail but to summarise;

16. Establishment Cost R • a) central operational and control room environment 7,100,000 • b) on vehicle technology to facilitate monitoring 9,000,000 • c) Points of presence technology (for ticket issuance) 825,000 • d) Contingency costs 4,000,000 • Total capital costs 20,925,000 Pre event operating costs (key costs) R • a) salaries (key expense relates to R3,600,000 for POP)5,088,000 • b) training 3,000,000 Total pre event operating costs 10,892,822 Total 31,817,822 (early Feb)

17. Obstacles to progress were • PGWC perspective • Who/what are you? • Who do you represent? • funding • None available • If available then tender processes need to be followed • Consortium perspective • Funding could be available (mixed signals from various levels, hence revised budget) • Lack of information and responsiveness

18. Revised Establishment Cost R • a) central operational and control room environment 7,100,000 • b) on vehicle technology to facilitate monitoring nil • c) Points of presence technology (for ticket issuance) 1,000,000 • d) Contingency costs nil • Total capital costs 8,100,000 Pre event operating costs (key costs) R • a) salaries (key expense relates to R3,600,000 for POP) 4,000,000 • b) training 3,000,000 Total pre event operating costs 7,000,000 Total 15,100,000 (mid March)

19. Business Plan and modelling • The Consortium must be in the position to manage and control it’s service offering – the business model has to be structured to ensure commitment to service offering: • Guarantee value to operator individual and organisation • Market related revenue derived through participation in service (contract - daily rate) • Bonus through profit share (NB. Profit in proportion to delivery and sufficient to share across organisation including non-participants) • Be in a position to exclude and discipline any operator/s who attempt to take selective advantage of the offering

20. Important precursors • The offering needs to be looked at with a view to sustainability after the World Cup • Up to what point are the assumptions (numbers) no/low risk. • After which as the service / contingencies are added then the contract must be underwritten. How?

21. Risks • NLTA • DRM and SAPS requirements etc • Impact of IRT pricing (airports etc) • Industry disruption – non-involvement • Turf wars

22. Following is critical • Collect fares – minimise/no cash • Control pricing • Administer payments • Enforce standards in SLA’s

23. Technology and Infrastructure • Control room • Inbound and outbound call centre • Fleet management • Vehicle hubs (contingency fleet, maintenance and support) • Booking Engine • Web based • Via agents • Direct to public • To call centre • Scheduling Engine • On board GPS and communications • Central database at control room • Access for call centre • Access for public

24. Technology and Infrastructure • Payment Engine • Website and other integrated marketing tools • Service promotion (schedules; signage; pricing; non schedule) • Promote 087 Call centre • Information • Via call centre • Printed and distributed • At arrivals • At hubs • Integrations to other resources (Call Centres; websites; booking engines etc)

25. Now what is the industry left with? • Nothing at present • Plenty of discussion • But no formal contract/arrangement

26. Positioning of Services for FIFA 2010for CoCT

27. Initial involvement • Unsolicited approach from Consortium (November 2009) when funding challenges occurred around IRT, these were to supply • The shortfall of buses • New vehicles (fit for purpose) • Short term nearly new vehicles to support 2010 requirements • Fully funded • To operate the IRT routes • By empowering affected operators

28. Process of engagement • Initial meeting with Mayor • Thereafter pedestrian progress being stalled and obstructed • Lack of information • Lack of clarity around policy • Lack of transparency • Inaccurate minutes (non-distribution of notes) • Being paid lip service

29. Next stage • Vehicle contracts awarded • Still insufficient vehicles to do the job • No information around operating contracts • Company A emerges but information confidential • Now let’s talk about FIFA 2010 • What could we do for the City? • Or more to the fact ……what will we be allowed to participate in?

30. What the industry wanted to participate in • All operating contracts • Inner City • Part of West Coast route • Stadium shuttle • Airport shuttle • All other services • Park n Ride • Fan Fest • PVA’s

31. Implications of the NLTA – interpretation and application • Contracts can be issued without tender • Lack of clarity around • What is an affected operator • participation in contracts • Disenfranchises PD operators

32. CoCT contract/s awarded • Without tender to Trans Peninsula (PTA/CUTA) • Without transparency • Includes • Inner City (partially affecting PTA and CUTA) • Stadium shuttle (new route not any affected party) • Airport shuttle (existing route operated by metered taxis but not seen as affected operators) • UCT Park n Ride (not part of PTA/CUTA) • Hout Bay route (??) • To single company that has changed its shareholding and participation structure since initial discussions

33. Now - what is the industry left with? • Specific services • PVA’s • The last mile In other words the crumbs • Where should the industry have been involved • Across the board • 2010 specific contracts • Airport shuttle • UCT Park and Ride • Etc.

34. Capacity available • Minibus taxis 200 (during day) 1,500 (after hours) • Metered taxis on call • Buses ?? To/from Stadium/Fan Fest • 19,000 inbound • 85,000 outbound

35. CoCT Establishment Cost R • a) central operational and control room environment 2,000,000 • b) on vehicle technology to facilitate monitoring nil • c) Points of presence technology (for ticket issuance) 1,000,000 • d) Contingency costs nil • Total capital costs 3,000,000 Pre event operating costs (key costs) R • a) operational costs (incl salaries) 2,500,000 • b) training 1,000,000 Total pre event operating costs 3,500,000 Total 6,500,000

36. Public Viewing Areas expected • Fan Fest Park 50,000 • Khayelitsha 7,500 • Mitchells Plain 2,000 • Bellville 8,000 • Athlone 2,500 (replaced) • Vygieskraal 8,000

37. Fare structures and contracts • Last mile service • What can be charged? • No contractual commitment? • Is it really worth it? • The Silverware has been sold without fair and competitive tender processes • Who should profit? (a few? Or all?)

38. Now what is the industry left with? • Nothing presently • Plenty of discussion • Working group to sit within 7 days on PVA/last mile services • with 48 days to go!!!!

39. So in total……. how is the industry (in its broadest sense) participating in FIFA 2010 Not a lot…….but not for the want of trying…..

40. Thank you • Questions please

42. Possible MB Taxi incomes • Assuming last mile fares at R5 per trip • Pre match R225 per vehicle per hr (3 trips per hr) • Post match R75 per vehicle per hr (1 trip per hr) • Assuming Stadium/Fan Fest Fares at R15 • Pre match R450 per vehicle per hr (2 trips per hr) • Post match R225 per vehicle per hr (1 trip per hr)

43. ACTION PLAN • Signature to a Letter of Intent with PGWC based on commercial plans will enable us to go on a road-show to present joint plans and benefits in detail to regions and various associations and sign-off on their mandate • Discussion and Approval of Budgets; payment – minimum within 7 working days • Contract development • Establish a joint Task team • The Task team initiates a process and assigns resources to assess and deliver a turnkey Management & Operation Solution that synchronises with existing plans and commitments • Develop and implement the Solution – commence within next 14 days • Continue with (an ongoing) feasibility study to deliver long-term contracts and identify business opportunities