Department of Transport Joint Budget Committee Hearings Medium Term Budget Policy Statement 2005 Theme 3: Employment and Economic Development 1 November 2005

Background Context of Transport Selected key initiatives: Public Transport Rail Bus Taxi Freight Logistics Roads Road Traffic Management Road Accident Fund Soccer World Cup 2010 Rural Transport Content of presentation Department of Transport

The Medium Term Budget Policy Statement 2005 focuses on: Accelerating economic growth Bridging the divide between the First and Second Economies by broadening participation 2006 Budget priorities: Increased investments – human settlements, built environment, commuter rail, local public transport Improved municipal services and community infrastructure Increased allocations to improve education, health and social welfare Improved access to the justice system Background Department of Transport

Transport an enabler of economic growth and development Investment in physical infrastructure and people Enhanced industrial capacity The transport sector: Is a catalyst in the logistics chain that powers economies Satisfies the requirements of commuter and public transport systems Is an instrument of growth and a driver of employment Context of Transport Department of Transport

European Commission Quote: “Transport is a human right, a human pleasure, an economic resource and a servant of economic activity: transport is many things to all people” Context of Transport (continued) Department of Transport

Investment will be focused in the passenger rail sector on corridors that have the required passenger volumes to make rail a viable option Rolling stock, signalling systems and infrastructure will be upgraded Rail is the most affordable means of public transport for the poor, carrying 2,2 million passengers per day The Gautrain will become part of a modally integrated transport service in which the current commuter rail network is deployed Public Transport - Rail Department of Transport

Bus subsidies will be transformed to public transport subsidies, with the aim of: Addressing modal inefficiencies Targeting the rural and urban poor Providing support for existing municipal bus services Including smaller capacity vehicles where practical or cost effective Facilitating improved services and safer buses Provinces are now empowered to pursue the implementation of the tender contract system – interim contracts provide no guarantee for improved services Public Transport - Bus Department of Transport

The taxi recapitalisation project will be rolled out over a seven year period at a cost of R 7 billion Cabinet approved the following in July 2005: Final vehicle safety Regulations Rollout and implementation strategy Rollout and implementation project plan Conversion of permits to operating licenses will be completed by 30 November 2005 A Scrapping Administration Agency will be created Provincial readiness assessment was completed and business plans will be developed to address provincial needs Public Transport - Taxi Department of Transport

The Freight Logistics strategy aims to unblock freight flows in order to: Achieve the speedy and seamless movement of goods Improve the levels of investment in the freight logistics systems to sustain the required levels of service - including investment in ports Reduce the cost of freight transport Reduce transit time Key corridors were identified to determine infrastructure investments Developed a branch line strategy for the revival of sustainable branch lines for local economic development Draft National Freight Logistics Strategy approved by Cabinet Initial phase of implementation are being implemented Department of Transport Freight Logistics

MTEF outlook: Strategic Secondary Road Network definition and integration with provincial growth plans Access roads development Assessment of provincial and municipal road needs Redefinition of road network in accordance with new road classification system Develop a road information management system Develop a national road network system (border posts, strategic national network and traffic control centres) Improve the Secondary Strategic Road Network to facilitate seamless freight logistics Access roads development Develop a national road network system (border posts, strategic national network and traffic control centres) Department of Transport Road Infrastructure

The Road Traffic Management Corporation will become operational (staff were seconded) The migration to the new National Traffic Information System (NaTIS) is targeted for completion by March 2006 Hardware deployed in Gauteng and Western Cape and continuing in other Provinces Overall hardware deployment is 70% complete Patrol vehicles will be rolled out to Provinces First batch of 60 vehicles are deployed Agreement reached for another 60 vehicles to be sponsored Road safety campaigns and the Arrive Alive campaigns will continue Department of Transport Road Traffic Management

Rationale: Need for continued support of road accident victims due to the high rate and cost of accidents and the negative impact associated with personal liability for personal injuries. Deficiencies of current system: The Road Accident Fund Act requires that fault must be proven, leading to high legal costs. No limits are set on claims. Settlement and administrative costs amount to 47%. The risk is not related to fuel levy use; indigent road users are subsidising drivers; allocation of compensation is not conducive to rehabilitation; Advantages of proposed system: A no-fault system offers a equitable, reasonable, affordable and sustainable alternative. Department of Transport Road Accident Fund Restructuring

Transport Agencies, Cities and Provinces were invited to submit Transportation Management Priority Statements that contains candidate projects and key sustainable public transport improvements that meet both the objectives of long term mobility and support the success of the 2010 FIFA World Cup Projects amounting to R241,7 million were approved Recommended projects for the remainder of the MTEF period amounts to R1,872bn Bids (list of projects related to 2010 Soccer World Cup) from potential host municipalities and provinces have been received. Department of Transport 2010 Soccer World Cup - New Conditional Grant for Public Transport Infrastructure

Key strategic projects will be implemented to improve rural access and mobility, such as: Rural transport development programmes through the ISRDP Urban renewal projects Non-motorised transport promotion Development of bicycle management plans linked to SWC 2010 Coordination and facilitation of labour intensive programmes and the replication of the Zibambele labour contract project Implementation of strategic actions in line with the National Land Transport Strategic Framework Develop a viable institutional framework for the transport authorities A Rural Transport Development Programme was developed and will be piloted for roll out to Provinces Department of Transport Rural Transport

Department of Transport Thank you