Department of Transport Second & Third Quarter Performance Information Report 2014/15 1

Performance Trend and Comparative Analysis Financial Information Contents Background Key Achievements: Q2 & Q3 Noted Challenges: Q2 & Q3 Performance Trend and Comparative Analysis Financial Information 2

Background Report focuses on the progress made with the implementation of programmes & projects in the periods covering 01 July 2014 – 30 September 2014 and 01 October 2014 – 31 December 2014. Focus was on optimal performance of deliverables in terms of the MTEF 2014/15 – 2016/17. Report in compliance with relevant statutory requirements.

Non- Financial Performance Information

Key Achievements Q2 & Q3 Programme 1: Administration DoT Communication Strategy and the Transport Month plan developed and presented to Transport Communicators and MINMEC respectively. Merchant Shipping Bill submitted to National Assembly and NCOP. 26 vacant posts filled and 38 appointments processed in the two quarters.

Notable Challenges to be Prioritised for Remedial Action Programme 1: Administration The draft International Relations Strategy was only developed in Q2 due to delays in internal processes. Stakeholder consultations were prolonged as a result. Corrective measures: Incorporation of stakeholder inputs will be finalised in Quarter 4 and the Strategy will be consolidated and submitted to EXCO as targeted. The review of the Internal Audit Charter was delayed in Quarter 2 by internal consultative processes. Corrective measures: Internal audit policies and methodologies were reviewed in November 2014.

Key Achievements Q2 & Q3 Programme 2: Integrated Transport Planning Field surveys on the Rural Accessibility / Multi-deprivation Index completed in 8 provinces. Draft 4 of the STER Bill produced - informed by stakeholder inputs from consultations with SANRAL, DPE, TNPA, TPT, Transnet Group and TFR. Bill subsequently submitted to Minister for approval. BBBEE Charter Council launched in December 2014. Business plan finalised and submitted to the Minister for approval. Regional Corridor Strategy - Desktop review report (current reality of regional corridors) and benchmark exercise (international best practice and key performance indicators) were submitted as per project plan on 24 November 2014.

Notable Challenges to be Prioritised for Remedial Action Programme 2: Integrated Transport Planning Consultations with PICC on NATMAP 2050 lagging behind. Corrective measures: Consultations will be prioritised for Q4. The Funding strategy for the Durban-Free State-Gauteng Logistics and Industrial Corridor not yet developed. Corrective measures: Strategy will be developed in Q4 as targeted. Reviewed National Freight Logistics Strategy lagging behind. Corrective measures: Process will be fast-tracked in Quarter 4. Stakeholder consultations on the Energy Consumption Reduction Strategy lagging behind. Corrective measures: Consultations will be prioritised in Quarter 4 and report will be presented to EXCO as targeted.

Key Achievements Q2 & Q3 Programme 3: Rail Transport Benchmarking of guidelines for submission of Rail Economic Regulatory information completed and MoU signed between DoT and DPE. Gap analysis conducted on Rail Economic Regulatory information. Situational analysis and preliminary Rail Safety Regulation gap analysis conducted. Strategic Branchlines defined and identified.

Notable Challenges to be Prioritised for Remedial Action Programme 3: Rail Transport Development of the draft White Paper on the National Rail Transport Policy delayed by Cluster administration processes . Corrective measures: Draft White Paper will be developed and consolidated as targeted in Q4.

Key Achievements Q2 & Q3 Programme 4: Road Transport Maintenance and rehabilitation of roads monitored in provinces in line with PRMG budget. 12 544 and 23 500 FTEs created in Quarter 2 and 3 respectively whilst 16 SMMEs supported through implementation of PRMG projects during Quarter 3. Needs analysis and stakeholder consultations with the Road Traffic Management Corporation (RTMC), Road Traffic Infringement Agency (RTIA), Cross-Border Road Transport Agency (CBRTA) and the Gauteng Province conducted on the Road Safety Policy. DoT participated in the implementation of 365 Road Safety Programme in conjunction with other road transport entities.

Notable Challenges to be Prioritised for Remedial Action Programme 4: Road Transport Unfavourable weather conditions and delays to project commencements impacted on the targets for rehabilitation, resealing and regravelling for Quarter 2. Corrective measures: Backlogs are continuously addressed through revision of work programmes and fast tracking of implementation.

Key Achievements Q2 & Q3 Programme 5: Civil Aviation Draft Amendment Bills for the ACSA Act and the ATNS Act gazetted and comments incorporated. The celebrations of International Civil Aviation Day (ICAD) 2014 hosted at the Kimberley Airport, Northern Cape, on the 05th – 07th December 2014. 129 schools and 6 362 learners in three (3) provinces (Gauteng, Eastern Cape and Northern Cape) exposed to aviation related career events. Air services negotiations held between RSA and Gabon. RSA signed two MoUs with South Sudan and Republic of Philippines respectively to establish air services arrangements. 29 aircraft accident investigation reports released and 8 safety recommendations generated.

Notable Challenges to be Prioritised for Remedial Action Programme 5: Civil Aviation As at end of Q3, only three (3) bilateral air services negotiations against Gabon, South Sudan and Philippines had taken place against a target four (4) for the period under review. Corrective measures: Two more negotiations will be prioritised for Quarter 4.

Key Achievements Q2 & Q3 Programme 6: Maritime Transport Draft Maritime Transport Policy developed and circulated for internal consultation. Broader consultations will follow in Quarter 4. Cape Town Agreement (2012) on the implementation of the Torremolinos Protocol (1993) presented to ICTS Cabinet Meeting for parliamentary approval. MARPOL IV & VI Conventions presented to National Council of Provinces (NCOP) and the Parliamentary Portfolio Committee on Transport (PCOT).

Notable Challenges to be Prioritised for Remedial Action Programme 6: Maritime Transport Amended Maritime Security Regulations not yet approved due to internal delays. Corrective measures: Approval and publishing of amended regulations to be prioritised in Quarter 4. African Maritime Charter not yet approved due to outstanding ICTS Cluster presentation. Corrective measures: Charter to be presented to ICTS Cluster and submitted to Minister in Quarter 4.

Key Achievements Q2 & Q3 Programme 7: Public Transport National Learner Transport Policy approved by Cabinet in October 2014. National Land Transport Amendment Bill approved by NEDLAC in November 2014. Integrated Public Transport Networks - Bilateral project, technical review and state of readiness meetings held with Msunduzi, Tshwane, George, eThekwini, Nelson Mandela, Ekurhuleni and Cape Town. DoRA compliance and project site visits conducted with CT, JHB, NMB, Tshwane, Ekurhuleni, George, Rustenburg, eThekwini, Mangaung and Mbombela.

Notable Challenges to be Prioritised for Remedial Action Programme 7: Public Transport Taxi Recapitalisation Programme - low uptake by industry. Corrective measures: Projections for Quarter 3 & Quarter 4 revised (approved by EA) IPTN plans in two (2) district municipalities – One district (Sekhukhune) withdrawn. Corrective measures: Plan will be developed for Bojanala only as per the signed MoA.

Remedial Actions to Address Noted Challenges Quarter 2 and 3 performance reports and noted challenges presented and discussed at EXCO. EXCO Resolutions: Action plans to address noted challenges developed and presented to EXCO by respective Programme Managers. EXCO to monitor implementation of action plans on a weekly and monthly basis.

Performance Trend Analysis Q1 – Q3: DoT Overall

DoT Comparative Analysis: Performance per programme per Quarter 1. Administration 84% 79% 76% 2. ITP 75% 58% 69% 3. Rail Transport 100% 60% 86% 4. Road Transport 80% 50% 90% 5. Civil Aviation 92% 6. Maritime Transport 78% 56% 7. Public Transport 85% 8. Dept. of Transport 83% 70%

Financial Performance Information

Financial Information: Expenditure per Programme Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter   R'000 1. Administration 424 880 179 133 257 369 245 747 42% 167 511 61% 2. Integrated Transport Planning 81 184 29 117 47 808 52 067 36% 33 376 59% 3. Rail Transport 15 034 556 10 239 651 12 820 683 4 794 905 68% 2 213 873 85% 4. Road Transport 21 645 287 11 181 450 17 503 549 10 463 837 52% 4 141 738 81% 5. Civil Aviation 150 402 69 151 119 848 81 251 46% 30 554 80% 6. Maritime Transport 110 589 43 285 67 685 67 304 39% 42 904 7. Public Transport 11 323 771 4 196 543 6 104 252 7 127 228 37% 5 219 519 54% Total Department 48 770 669 25 938 330 36 921 194 22 832 339 53% 11 849 475 76% The Department has a total allocated budget of R 48 771 billion. To date of reporting the department has spent R37 021 billion or 76% of the allocated budget. 23

Financial Information: Expenditure per Economic Classification Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter   R'000 Compensation of Employees 382 881 164 063 254 741 218 818 43% 128 140 67% Goods and Services 623 570 413 028 628 716 210 542 66% (5 146) 101% Transfers & Subsidies 47 755 816 25 358 588 36 033 833 22 397 228 53% 11 721 983 75% Machinery and Equipment 8 402 2 640 3 801 5 762 31% 4 601 45% Payment for financial assets 11 103 (11) 0% (103) Total Department 48 770 669 25 938 330 36 921 194 22 832 339 11 849 475 76% Goods and Services: Overspending due to eNatis and repatriation of bodies. Transfers and Subsidies: Higher Education Institutions, Rural Roads Asset Management Systems Grant, Taxi Recapitalisation, Public Transport infrastructure Grant and Public Transport Network Grant. Machinery and Equipment: Underspending as a result of a moratorium to purchase furniture due to possible relocation. 24

Financial Information: Budget vs Expenditure 25

Financial Information: Expenditure per Economic Classification - Programme 1 - Administration Per Economic Classification Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter   R'000 Compensation of Employees 172 806 72 815 113 649 99 991 42% 59 157 66% Goods and Services 233 976 102 238 135 951 131 738 44% 98 025 58% Transfers & Subsidies 12 102 2 514 5 560 9 588 21% 6 542 46% Machinery and Equipment 5 996 1 566 2 117 4 430 26% 3 879 35% Payment for financial assets 92 (92) 0% Total 424 880 179 225 257 369 245 655 167 511 61% Goods and Services: Underspending due to the lag between service delivery, invoicing and payment. Transfers & Subsidies: Underspending due to delays in the payment of the three institutions that are under University of KwaZulu-Natal. Machinery and Equipment: Underspending as a result of a moratorium to purchase furniture due to possible relocation. 26

Financial Information: Expenditure 2nd Quarter Expenditure 3rd Quarter Expenditure per Economic Classification - Programme 2 – Integrated Transport Planning Per Economic Classification Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter   R'000 Compensation of Employees 39 382 17 442 26 838 21 940 44% 12 544 68% Goods and Services 41 573 11 311 20 412 30 262 27% 21 161 49% Transfers & Subsidies 208 (208) 0% Machinery and Equipment 229 145 339 84 63% (110) 148% Payment for financial assets 11 (11) Total 81 184 29 117 47 808 52 067 36% 33 376 59% Goods and Services: Underspending due to the lag between service delivery, invoicing and payment. Machinery and Equipment: Overspending due to purchases of new furniture and new laptops for appointed employees. 27

Financial Information: Expenditure per Economic Classification - Programme 3 – Rail Transport Per Economic Classification  Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter R'000 Compensation of Employees 20 270 9 467 14 793 10 803 47% 5 477 73% Goods and Services 15 909 3 475 5 805 12 434 22% 10 104 36% Transfers & Subsidies 14 997 804 10 226 470 12 799 757 4 771 334 68% 2 198 047 85% Machinery and Equipment 573 239 328 334 42% 245 57% Payment for financial assets - 0% Total 15 034 556 10 239 651 12 820 683 4 794 905 2 213 873 Goods and Services: Underspending due to the lag between service delivery, invoicing and payment. Machinery and Equipment:. Underspending as a result of moratorium to purchase furniture due to possible relocation. 28

Financial Information: Expenditure per Economic Classification - Programme 4 – Road Transport Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter R'000 Compensation of Employees 50 599 19 799 30 705 30 800 39% 19 894 61% Goods and Services 49 058 174 995 264 350 (125 937) 357% (215 292) 539% Transfers & Subsidies 21 544 976 10 986 355 17 208 107 10 558 621 51% 4 336 869 80% Machinery and Equipment 654 301 387 353 46% 267 59% Total 21 645 287 11 181 450 17 503 549 10 463 837 52% 4 141 738 81% Goods and Services: Overspending due to eNatis as a results of court order. Transfers and Subsidies: Underspending on Rural Roads Asset Management Systems Grant. Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 29

Financial Information: Expenditure per Economic Classification - Programme 5 – Civil Aviation Per Economic Classification  Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter R'000 Compensation of Employees 36 060 15 209 24 015 20 851 42% 12 045 67% Goods and Services 77 015 31 137 65 503 45 878 40% 11 512 85% Transfers & Subsidies 36 900 22 691 30 024 14 209 61% 6 876 81% Machinery and Equipment 427 114 306 313 27% 121 72% Total 150 402 69 151 119 848 81 251 46% 30 554 80% Goods and Services: Overspending due to repatriation of bodies. Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 30

Financial Information: Expenditure 2nd Quarter Expenditure 3rd Quarter Expenditure per Economic Classification - Programme 6 – Maritime Transport Per Economic Classification  Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter R'000 Compensation of Employees 22 123 9 475 14 326 12 648 43% 7 797 65% Goods and Services 69 651 24 956 40 253 44 695 36% 29 398 58% Transfers & Subsidies 18 468 8 704 12 917 9 764 47% 5 551 70% Machinery and Equipment 347 150 189 197 158 54% Total 110 589 43 285 67 685 67 304 39% 42 904 61% Goods and Services: Underspending due to the lag between service delivery, invoicing and payment. Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 31

Financial Information: Expenditure 2nd Quarter Expenditure 3rd Quarter Expenditure per Economic Classification - Programme 7 – Public Transport Per Economic Classification  Budget Expenditure 2nd Quarter Expenditure 3rd Quarter Variance 2nd Quarter % Spent Variance 3rd Quarter R'000 Compensation of Employees 41 641 19 856 30 415 21 785 48% 11 226 73% Goods and Services 136 388 64 916 96 442 71 472 39 946 71% Transfers & Subsidies 11 145 566 4 111 646 5 977 260 7 033 920 37% 5 168 306 54% Machinery and Equipment 176 125 135 51 41 77% Total 11 323 771 4 196 543 6 104 252 7 127 228 (1 907 709) Goods and Services: Underspending due to the lag between service delivery, invoicing and payment. Transfers and Subsidies: Underspending on Public Transport Infrastructure Grant by R894 million and Public Transport Network Operation Grant by R 35million; payments withheld due to consistent underspending and non compliance in other municipalities. Taxi Recapitalisation underspent due to less taxis scrapped than anticipated. Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 32

Financial Information: Transfer Payments Transfer Payments (R'000) Budget Expenditure Available % Spent Conditional Grants:   Provincial Roads Maintenance 9 361 498 8 057 054 1 304 444 86% Public Transport Operations 4 832 709 3 730 705 1 102 004 77% Public Transport Infrastructure and Systems 4 968 029 1 684 571 3 283 458 34% Public Transport Network Operations 902 817 413 998 388 819 57% Rural Road Asset Management 75 223 69 819 5 404 93% Public Corporatios: Passenger Rail Agency of South Africa (PRASA) 14 946 300 12 748 253 2 198 047 85% Departmental Agencies & Accounts: S.A. National Roads Agency 11 916 947 8 937 753 2 979 194 75% Road Traffic Management Corporation 176 008 132 006 44 002 Railway Safety Regulator 51 504 100% S.A. Civil Aviation Authority 19 239 14 427 4 812 Ports Regulator of South Africa 16 852 12 639 4 213 Road Traffic Infringements Agency 15 300 11 475 3 825 Maritime Rescue Co-ordination Centre 6 887 5 166 1 721 Transport SETA 1151 1 151 0% 33

Financial Information: Transfer Payments Transfer Payments (R'000) Budget Expenditure Available % Spent Other:   Taxi scrapping 423 604 133 486 290 118 32% Non Profit Institutions 2 308 - 100% South African National Taxi Council 18 407 14 500 3 907 79% Higher Education Institutions 10 790 5 366 5 424 50% International Organisations 10 082 8 287 1 795 82% Leave pay and donations 161 516 (355) 320% Total 47 755 816 36 133 833 11 621 983 76% 34

Financial Information: PTOG & PRMG 35

Financial Information: Provincial Road Maintenance Grant (PRMG) Budget Transfer Spent by Province Variance % R'000 % Eastern Cape 1 294 279 1 125 817 822 984 87% Free State 1 025 682 876 825 798 445 85% Gauteng 514 903 437 878 508 519 KwaZulu-Natal 1 788 158 1 537 214 1 650 100 86% Limpopo 1 127 310 970 154 714 955 Mpumalanga 1 594 840 1 367 059 1 185 716 North West 640 472 558 381 492 610 Northern Cape 690 005 587 720 678 775 Western Cape 685 849 596 007 649 586 Overall Total 9 361 498 8 057 055 7 501 690 36

Financial Information: Public Transport Operations Grant (PTOG) Budget Transfer Spent by Province Variance %   R'000 % Eastern Cape 195 282 157 805 142 518 81% Free State 215 900 162 100 162 225 75% Gauteng 1 819 854 1 398 090 1 173 962 77% KwaZulu-Natal 904 783 713 200 761 214 79% Limpopo 291 852 217 502 204 793 Mpumalanga 491 418 373 518 330 296 76% North West 90 318 32 507 53 985 36% Northern Cape 43 937 67 018 153% Western Cape 779 365 608 965 526 255 78% Total 4 832 709 3 730 705 3 355 248 37

Financial Information: PTNOG & PTIS 38

Financial Information: Public Transport Infrastructure System Grant (PTISG) PUBLIC TRANSPORT INFRASTRUCTURE AND SYSTEMS GRANT   Budget Transfer Spent by Municipality Variance % R'000 % EC: Nelson Mandela Bay 100 000 50 000 77 455 50% FS: Mangaung 30 000 5 000 17% GT: Ekurhuleni 250 000 99 368 20% GT: City of Johannesburg 829 571 200 000 163 439 24% GT: City of Tshwane 867 571 487 571 576 175 56% KZN: eThekwini 654 751 15% KZN: Msunduzi 26 510 LP: Polokwane 25 582 25% MP: Mbombela 195 191 56 634 26% NW: Rusternburg 520 000 302 000 117 736 58% WC: George 61 805 20 000 15 939 32% WC:City of Cape Town 1 159 140 320 000 360 455 28% Overall Total 4 968 029 1 684 571 1 519 293 34% 39

Financial Information: Public Transport Network Operations Grant (PTNOG) PUBLIC TRANSPORT NETWORK OPERATIONS GRANT Budget Transfer Spent by Municipality Variance %   R'000 % Nelson Mandela Bay 130 000 62 500 54 647 48% Johannesburg 236 000 115 000 75 473 49% Tshwane 138 000 54 000 71 935 39% eThekwini 120 820 55 000 13 602 46% Cape Town 217 548 107 548 66 255 George 60 449 19 950 3 457 33% Overall Total 902 817 413 998 285 369 40

Thank you 41