DEPARTMENT OF TRANSPORT BUDGET PRESENTATION 12 APRIL 2016

Contents Budget summary per programme Budget summary per Economic classification Compensation of Employees Goods and Services Transfers

Budget per Programme Programme Audited Budget Adjusted Budget Current Budget Medium Term Estimates R thousand 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 1. Administration 288 865 246 110 280 422 359 582 315 578 424 880 383 458 394 763 401 870 421 138 2. Integrated Transport Planning 60 555 58 725 90 225 103 480 66 373 81 184 88 083 78 954 81 471 85 796 3. Rail Transport 10 527 660 9 259 688 9 532 154 10 286 554 11 232 840 15 034 556 18 311 364 18 985 533 20 133 805 21 290 443 4. Road Transport 10 422 131 11 360 700 21 729 823 18 229 358 20 665 564 21 645 287 23 042 697 24 525 567 27 405 721 29 827 661 5. Civil Aviation 53 150 53 129 65 030 411 788 148 602 150 402 149 526 253 223 159 418 167 814 6. Maritime Transport 135 542 143 496 138 824 124 666 102 271 110 589 121 089 121 733 117 462 120 443 7. Public Transport 7 176 095 8 033 301 9 360 053 9 812 787 10 505 616 11 323 771 11 518 861 11 655 390 12 800 964 13 540 041 Total 28 663 998 29 155 149 41 196 531 39 328 215 43 036 844 48 770 669 53 615 078 56 015 163 61 100 711 65 453 336   The budget increased by 4.5% in 2016/17, 9% in 2017/18 and 7% in 2018/19. The cause of the major increase between 2017/18 and 2018/19 is additional allocations for Moloto road upgrade, Gauteng Freeway Improvement project, Non toll road network and Public Transport Operations Grant. The Department over medium term will focus on maintaining the National and Provincial Road Networks, upgrading rail infrastructure and services and expanding road based Public Transport .

Budget per Economic Classification Audited Budget Adjusted Budget   Medium term estimates R thousand 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Compensation of employees 228 121 250 758 274 462 287 767 304 359 382 881 389 806 437 139 439 021 457 837 Goods and services 788 173 679 790 874 770 1 229 952 1 692 247 621 439 679 264 754 915 695 778 728 758 Transfers and subsidies 27 640 942 28 222 713 40 044 074 37 802 885 41 020 379 47 757 947 52 540 290 54 818 777 59 961 388 64 261 957 Machinery and equipment 6 762 1 888 3 225 7 611 19 859 8 402 5 718 4 332 4 524 4 784 Total 28 663 998 29 155 149 41 196 531 39 328 215 43 036 844 48 770 669 53 615 078 56 015 163 61 100 711 65 453 336   Baseline reduction effected as follows: Compensation of employees: 2017/18 financial year R34.2 million and 2018/19 R54.1 million. Goods and Services: 2016/17 R61.7 million, 2017/18 R64.5 million and 2018/19 R75.6 million. Transfers and subsidies: SANRAL R200 million 2016/17, R153 million 2017/18 and R240 million 2018/19 PRASA R350 million 2016/17, R170 million 2017/18 and R190 million 2018/19 PTNG R570 million in 2016/17, R250 million in 2017/18 and R200 million in 2018/19

Ten Year Overview

INDICATIVE MEDIUM-TERM ALLOCATION Programme 1 ADMINISTRATION ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION   2015/16 2016/17 2017/18 2018/19 PER ECONOMIC CLASSIFICATION R'000 Compensation of Employees 175 812 198 916 195 706 204 816 Goods and Services 194 130 182 162 191 818 201 143 Transfers and Subsidies 10 637 11 222 11 782 12 466 Machinery and Equipment 2 878 2 463 2 564 2 713 TOTAL 383 457 394 763 401 870 421 138

MEDIUM-TERM ALLOCATION Programme 2 INTEGRATED TRANSPORT PLANNING ADJUSTED BUDGET CURRENT BUDGET MEDIUM-TERM ALLOCATION   2015/16 2016/17 2017/18 2018/19 PER ECONOMIC CLASSIFICATION R'000 Compensation of Employees 42 480 44 261 44 919 47 530 Goods and Services 44 957 34 512 36 362 38 066 Machinery and Equipment 646 181 190 200 TOTAL 88 083 78 954 81 471 85 796   Goods and Services: NATMAP 2050 Priority Pilot Projects, White Paper on the National Transport Policy, Road Freight Strategy, National Freight Logistics Strategy, Green Transport Strategy

INDICATIVE MEDIUM-TERM ALLOCATION Programme 3 RAIL TRANSPORT ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION   2015/16 2016/17 2017/18 2018/19 PER ECONOMIC CLASSIFICATION R'000 Compensation of Employees 20 687 23 320 23 515 24 084 Goods and Services 15 101 15 859 16 977 17 773 Transfers and Subsidies 18 275 426 18 946 254 20 093 208 21 248 475 Machinery and Equipment 150 100 105 111 TOTAL 18 311 364 18 985 533 20 133 805 21 290 443   Goods and services; National Rail Policy, National Rail Bill, Establish Rail Economic Regulator, National Rail Safety Regulator Amendment Bill, National Rail Safety Strategy,

INDICATIVE MEDIUM-TERM ALLOCATION Programme 4 ROAD TRANSPORT ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION   2015/16 2016/17 2017/18 2018/19 PER ECONOMIC CLASSIFICATION R'000 Compensation of Employees 50 284 56 383 56 864 60 162 Goods and Services 48 416 44 976 48 965 51 264 Transfers and Subsidies 22 943 366 24 423 558 27 299 210 29 715 513 Machinery and Equipment 631 650 682 722 TOTAL 23 042 697 24 525 567 27 405 721 29 827 661   Goods and services: Road Safety strategy, RABS Bill, White Paper on Road Policy, Adjudication of Road Traffic Offences Amendment Bill, S’hamba Sonke programme,

INDICATIVE MEDIUM-TERM ALLOCATION Programme 5 CIVIL AVIATION ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION   2015/16 2016/17 2017/18 2018/19 PER ECONOMIC CLASSIFICATION R'000 Compensation of Employees 34 854 39 369 39 365 41 648 Goods and Services 75 513 172 751 76 898 80 511 Transfers and Subsidies 38 739 40 702 42 734 45 210 Machinery and Equipment 420 401 421 445 TOTAL 149 526 253 223 159 418 167 814   Goods and services: Airports Company and ATNS Amendment Bills , National Civil Aviation Policy, National Airports Development Plan, Civil Aviation Amendment Bill, Once off allocation of R 100 million in 2016/17 financial year for Satellite tracing system.

INDICATIVE MEDIUM-TERM ALLOCATION Programme 6 MARITIME TRANSPORT ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION   2015/16 2016/17 2017/18 2018/19 PER ECONOMIC CLASSIFICATION R'000 Compensation of Employees 21 728 24 680 27 384 25 898 Goods and Services 69 709 66 399 68 391 71 601 Transfers and Subsidies 29 317 30 341 21 358 22 597 Machinery and Equipment 335 313 329 347 TOTAL 121 089 121 733 117 462 120 443   Goods and Services: National Maritime Transport Policy, Inland Waterway Strategy, 2020 IMO World Maritime Day, Cabotage Policy, Operation Phakisa Ocean Economy

INDICATIVE MEDIUM-TERM ALLOCATION Programme 7 PUBLIC TRANSPORT ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION   2015/16 2016/17 2017/18 2018/19 PER ECONOMIC CLASSIFICATION R'000 Compensation of Employees 43 961 50 210 51 268 53 699 Goods and Services 231 438 238 256 256 367 268 400 Transfers and Subsidies 11 242 805 11 366 700 12 493 096 13 217 696 Machinery and Equipment 657 224 233 246 TOTAL 11 518 861 11 655 390 12 800 964 13 540 041   Goods and Services: Taxi Recapitilisation Review , Integrated Public Transport Network, Rural Transport Strategy, National Land Transport Amendment, Public Transport Safety Improvement Plan

Compensation of Employees Medium term expenditure estimates Audited Budget Adjusted Budget Current Budget Medium term expenditure estimates 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 R'000 Baseline allocation 228 121 250 758 274 462 287 767 304 359 353 886 370 167 433 294 460 592 453 104 Additional allocation : Public entities oversight, conditional grants and internal audit   29 495 36 301 Budget adjustments -500 Revised allocation 2014/15 382 881 406 468 Budget cut -27 862 -29 351 -32 326 Baseline allocation 2015/16 378 606 403 943 428 266 Adjusted budget 11 200 Revised allocation 2015/16 389 806 Repioritisation 29 674 28 978 30 655 Budget cut/reduction -34 220 -54 174 Budget addition for NPTR and other adjustments 3 522 15 997 28 252 Baseline allocation 2016/17 437 139 439 021 457 837

MEDIUM TERM ALLOCATION Compensation of Employees ADJUSTED BUDGET CURRENT BUDGET MEDIUM TERM ALLOCATION Details 2015/16 2016/17 2017/18 2018/19   R'000 Number of post per approved structure 866 Number of post currently filled 715 NPTR post 17 Total number of funded post 732 Total post not funded 151 134 Budgeted amount (compensation ceiling) 389 806 437 139 439 021 457 837

MEDIUM TERM ALLOCATION Goods and Services GOODS AND SERVICES ADJUSTED BUDGET CURRENT BUDGET MEDIUM TERM ALLOCATION Details 2015/16 2016/17 2017/18 2018/19   R'000 Indicative baseline allocation 682 835 716 629 760 293 804 390 Budget reduction (3 571) (61 714) (64 515) (75 633) Additional funds for Satellite Tracking System 100 000 Total changes to baseline 38 286 Revised budget 679 264 754 915 695 778 728 757

MAJOR DETAILS OF TRANSFERS INDICATIVE MEDIUM-TERM ALLOCATION Major Transfers MAJOR DETAILS OF TRANSFERS ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION 2015/16 2016/17 2017/18 2018/19 R'000 Passenger Rail Agency of South Africa (PRASA) 18 222 047 18 890 267 20 033 644 21 185 457 South African National Roads Agency Limited (SANRAL) 12 843 488 13 915 586 16 216 986 17 832 229 Provincila Roads Maintenance Grant (PRMG) 9 855 655 10 202 503 10 753 664 11 535 668 Public Transport Operations Grant (PTOG) 4 939 448 5 400 292 5 722 871 5 990 298 Public Transport Network Grant 5 953 090 5 592 691 6 359 895 6 793 269 TOTAL major transfers 51 813 728 54 001 339 59 087 060 63 336 921

RAIL Upgrading rail infrastructure and services   The budget for rail infrastructure is the fastest growing area of departmental spending, and is expected to grow at an average annual rate of 5.5 per cent. CURRENT BUDGET: R13.5 billion is allocated over medium term for Metrorail and Shosholoza Meyl which subsidise over 500 million passenger trips per year in metropolitan areas and 450 000 long distance passenger. CAPITAL BUDGET: Constitute R46.5 billion over medium term for new train sets for Metrorail upgrading and refurbishment of infrastructure the increase of R 5.6 billion in 2014/15 financial year was due to fleet renewal programme. Cabinet approved reductions of R710 million over medium term to lower the national aggregate ceiling.

PASSENGER RAIL AGENCY of SOUTH AFRICA   MEDIUM TERM ESTIMATES Audited Adjusted Current R thousand 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 CURRENT 3 526 799 4 328 003 3 887 342 4 066 160 4 281 666 4 495 749 4 756 503 PRASA: Metrorail Operations 3 138 117 3 678 003 3 458 925 3 618 036 3 809 769 4 000 183 4 232 194 PRASA: Mainline passenger services: Operations 388 682 650 000 428 417 448 124 471 897 495 566 524 309 CAPITAL 6 701 106 6 831 110 11 058 959 14 155 887 14 608 601 15 537 895 16 428 954 PRASA: Other capital programmes 4 758 874 4 851 197 3 906 624 8 234 603 7 206 878 7 692 629 8 128 663 PRASA: Roling stock fleet renewal programme 5 699 959 2 560 508 4 170 266 4 420 482 4 676 870 PRASA: Signalling 1 084 147 1 105 180 810 711 1 875 973 1 844 184 1 912 835 2 023 779 PRASA: Metrorail: General overhaul of coaches 732 488 746 699 547 745 1 267 474 1 283 523 1 360 534 1 439 445 PRASA: Mainline passenger service; Refurbishment of coaches 125 597 128 034 93 920 217 329 103 750 151 415 160 197 Overall Total 10 227 905 11 159 113 14 946 301 18 222 047 18 890 267 20 033 644 21 185 457

ROADS Maintaining road infrastructure   Over the medium term, the R573 Moloto Road will be upgraded at a cost of R3.7 billion. The budget for South African National Road Agency has increased by R1.3 billion over the medium term for the Gauteng Freeway improvement project and it also increased R2.2 billion to strengthen non toll road network. Road infrastructure damaged by disasters will be rehabilitated at a cost of R848 million over the medium term, through an additional allocation to supplement the reprioritisation in the provincial roads maintenance grant.

SOUTH AFRICAN NATIONAL ROADS AGENCY   MEDIUM TERM ESTIMATES Audited Adjusted Current R thousand 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 CURRENT 3 125 460 3 453 733 3 736 149 4 252 623 4 586 160 4 832 471 5 127 581 SANRAL: Gauteng freeway Improvement project 301 000 425 100 463 359 505 061 SANRAL 3 951 623 4 161 060 4 369 112 4 622 520 CAPITAL 6 602 595 7 043 451 8 180 798 8 590 865 9 329 426 11 384 515 12 704 648 SANRAL: Non -toll network 5 934 636 6 448 616 7 515 300 7 721 054 7 935 587 9 335 831 10 083 540 SANRAL:Coal haulage road network 667 959 594 835 665 498 696 111 733 005 769 655 814 295 SANRAL:Moloto Road upgrade 155 500 660 834 1 279 029 1 806 813 SANRAL: Botswana river crossing 18 200 Overall Total 9 728 055 10 497 184 11 916 947 12 843 488 13 915 586 16 216 986 17 832 229

PROVINCIAL ROAD MAINTANCE GRANT PROVINCES ADJUSTED CURRENT MEDIUM TERM ESTIMATES 2015/16 2016/17 2017/18 2018/19 R'000 Eastern Cape 1 294 151 1 245 877 1 319 364 1 395 882 Free State 1 142 796 1 245 600 1 319 076 1 395 592 Gauteng 455 821 505 696 535 522 566 586 KwaZulu-Natal 1 779 255 1 912 947 2 025 789 2 143 300 Limpopo 994 762 994 630 1 053 325 1 114 419 Mpumalanga 1 719 418 1 637 077 885 392 936 699 Northern Cape 788 060 955 021 1 011 356 1 070 022 North West 822 430 865 778 916 849 970 033 Western Cape 858 962 839 877 889 362 940 952 Unallocated - 797 629 1 002 183 Total 9 855 655 10 202 503 10 753 664 11 535 668   The rehabilitation of 5 390 lane kilometers of provincial managed roads and resealing of 11 976 lane kilometers are allocated R32.5 billion over medium term.

PUBLIC TRANSPORT

Public Transport Operations Grant (PTOG) Enhancing public transport   The Public Transport programme, is expected to increase at an average annual rate of 6.6 per cent over the medium term. . The budget for Public Transport Operation grant increased by R700 million over the medium term for the provision of affordable public transport service.

Public Transport Operations Grant ( PTOG) PROVINCES CURRENT MEDIUM TERM ESTIMATES 2015/16 2016/17 2017/18 2018/19 R’000 R'000 Eastern Cape 199 595 218 217 221 150 233 976 Free State 220 669 241 257 244 500 258 681 Gauteng 1 860 048 2 033 588 2 060 919 2 180 453 KwaZulu-Natal 924 766 1 011 045 1 024 634 1 084 063 Limpopo 298 298 326 129 330 512 349 682 Mpumalanga 502 272 549 133 556 514 588 791 Northern Cape 44 907 49 097 49 757 52 643 North West 92 313 100 926 102 282 108 214 Western Cape 796 580 870 900 882 605 933 796 Unallocated 250 000 200 000 Total 4 939 448 5 400 292 5 722 871 5 990 298

Public Transport Network Grant (PTNG)

Public Transport Network Grant (PTNG) MUNICIPALITIES ADJUSTED CURRENT MEDIUM TERM ESTIMATES 2015/16 2016/17 2017/18 2018/19 R'000 EC: Buffalo City 35 289 60 167 166 393 EC: Nelson Mandela Bay 372 256 330 095 370 079 FS: Mangaung - 200 142 200 042 215 049 GT: City of Tshwane 931 609 950 011 975 000 1 000 141 GT: Ekurhuleni 339 296 500 002 700 034 800 017 GT: City of Johannesburg 1 151 368 1 015 508 1 102 932 1 177 000 KZN:Msunduzi 213 271 200 031 200 023 212 033 KZN: eThekwini 882 168 950 078 1 000 197 1 000 023 LP: Polokwane 184 189 200 026 201 003 215 050 MP: Mbombela 116 540 200 058 200 014 215 023 NW: Rusternburg 552 567 285 039 300 074 317 014 WC: George 116 325 106 444 115 275 105 295 WC:City of Cape Town 1 093 501 950 063 975 039 1 000 152 Overall Total 5 953 090 5 592 691 6 359 895 6 793 269

INDICATIVE MEDIUM-TERM ALLOCATION Other Transfers OTHER TRANSFERS ADJUSTED BUDGET CURRENT BUDGET INDICATIVE MEDIUM-TERM ALLOCATION 2015/16 2016/17 2017/18 2018/19 R'000 Transport Education and Training Authority (TETA) 1 036 1 105 1 161 1 228 Universities (bursaries) 9 434 9 939 10 434 11 040 Employee Social Benefits 169 178 187 198 Railway Safety Regulator (RSR) 53 379 55 987 59 564 63 018 Road Traffic Management Corporation (RTMC) 184 104 193 862 203 555 215 361 Road Traffic Infringement Agency (RTIA) 11 497 10 093 17 696 18 722 Rural Road Asset Management Systems Grant (RRAMS) 96 842 101 514 107 309 113 533 South African Civil Aviation Authority (SACAA) 20 124 21 191 22 251 23 542 South Afican Maritime Safery Authority (SAMSA) (MRCC) 7 204 7 586 7 965 8 427 African Civil Aviation Commission (AFCAC) 4 505 4 743 4 980 5 269 International Civil Aviation Organisation (ICAO) 3 892 4 098 4 303 4 553 Non-profit Institutions 2 416 2 542 2 669 2 823 Cospas Sarsat 458 482 506 535 Southern African Development Community: International Civil Aviation Organisation Mission 140 60 Ports Regulator 27 627 28 561 19 489 20 619 International Maritime Organisation (IMO) 1 385 1 458 1 531 1 620 Indian Ocean Memorandum of Understanding (IOMOU) 305 322 338 358 Taxi scrapping 331 013 353 442 389 041 411 605 South African Nation Taxi Council 19 254 20 275 21 289 22 524 TOTAL OTHER TRANSFERS 774 782 817 438 874 328 925 035

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