Presentation to the Portfolio Committee on Transport Fourth Quarter Performance Report 2015/16 17 May 2016 1

Contents Background Performance Trend and Comparative Analysis Key Achievements: Q4 Noted Challenges: Q4 Financial Performance Information

Background Report focuses on the progress made with the implementation of programmes & projects in the periods covering 01 January 2016 – 31 March 2016. Focus was on optimal performance of deliverables in terms of the MTEF 2015/16 – 2017/18. Report in compliance with relevant statutory requirements.

Background Based on the performance statuses reported in Q3, an Action Plan to address identified Red Flags was developed and implemented in Q4. A task team was established to focus on all winnable cases highlighted in the Action Plan – Maritime Transport was the key focus. EXCO sat at frequent intervals to assess progress made on the Red Flags and on key Q4 deliverables.

Non-Financial Performance Information

DoT Comparative Analysis: Performance per programme per Quarter 1. Administration 86% 88% 63% 2. Integrated Transport Planning 77% 100% 78% 3. Rail Transport 40% 80% 4. Road Transport 5. Civil Aviation 75% 6. Maritime Transport 50% 38% 25% 7. Public Transport 8. Dept. of Transport 76% 70% 92%

Performance Trend Analysis Q1 – Q4: DoT Overall

Key Achievements Q4 Programme 1: Administration 53 interns were appointed and placed with effect from April 2016 translating in 7.6% of staff establishment. Induction currently in progress Health and Wellness campaings conducted; 256 electronic news updated and circulated; DoT Language Policy reviewed; Engagement with GCIS conducted on the DoT Corporate Identity Manual; 98% of Presidential Hotline cases resolved as at the end of Quarter 4 International Relations Strategy approved Departmental Intranet site finalised and rolled out Implementation of action plans to address audit findings monitored on a quarterly basis; and action plans for strategic risks monitored on a quarterly basis

Key Achievements Q4 Programme 2: Integrated Transport Planning Drafts of the frameworks for Infrastructure Funding and Transport Funding were completed and submitted for approval as targeted The Road Freight Strategy was also completed and submitted for approval in Quarter 4 The STER Bill was submitted to Cabinet and consultations on subsidiary regulations conducted with the Ports Regulator The Private Sector Participation Framework was successfully developed and is being transferred to the National Treasury for inclusion (as a chapter) in the overarching PSP currently being developed by the National Treasury The draft of the Green Transport Strategy has been successfully developed as targeted during the period under review.

Key Achievements Q4 Programme 3: Rail Transport The draft White Paper on National Rail Transport Policy has been finalised Guidelines for submission of rail economic regulatory information were completed and approved during the period under review The Branchline Strategy has been finalised and will be presented at the next sitting of the ESEID Cluster The Draft National Railway Safety Regulator Bill has been successfully developed during the period under review The draft National Railway Safety Stratey has been completed and consultations on the draft strategy conducted with PRASA and RSR during the period under review

Key Achievements Q4 Programme 4: Road Transport The draft Green Paper on the Roads Policy has been completed and submission to Cabinet has been approved All approved PRMG projects have been monitored in line with the budget. An Annual Monitoring Report has also been compiled as submitted for quality assurance The Status Quo Analysis Report for the development of the Access Road Development Plan has been completed and submitted for quality assurance The AARTO Amendment Bill was submitted and approved by Cabinet during the period under review. The Bill will be submitted to Parliament in the new financial year.

Key Achievements Q4 Programme 5: Civil Aviation The NCAP and NADP have been completed and submission to Cabinet has been approved Negotiations on the air services arrangements were held with Denmark, Norway and Sweden in March 2016 A draft Civil Aviation Amendment Bill was completed during Quarter 4 and submitted for quality assurance A monitoring report on the upgrade of Mthatha Airport was completed and recommendations on the transfer of the asset to the Eastern Cape Provincial Government were duly approved.

Key Achievements Q4 Programme 6: Maritime Transport The Green Paper on the National Maritime Transport Policy was completed and presented to the ICTS Cabinet Cluster in March 2016 Drafts of the Cabotage Strategy and Cabotage Bill were completed and submitted for quality assuarance The Inland Waterway Strategy was completed and approved during the period under review The African Maritime Charter was presented to the PCOT and NCOP

Key Achievements Q4 Programme 7: Public Transport The Reviewed Rural Transport Strategy has been completed and submission to Cabinet has been approved The National Learner Transport Policy was approved by Cabinet and subsequently published for implementation as targeted during the period under review 811 old taxi vehicles were scrapped during the period under review due to the increase in demand by operators; and the TRP Review Document was developed and submission of the report to Cabinet has been approved Final draft of the Integrated Public Transport Turnaround Plan was completed and submitted for quality assurance

Notable Challenges to be Prioritised for Remedial Action Programme 1: Administration No vacant positions were filled due to budget cut on compensation of employees and a moratorium placed by the National Treasury on the filling of vacant posts Corrective measures: DoT will continue to engage the National Treasury to ensure that a solution is reached to enable the Department to fill critical vacant positions

Notable Challenges to be Prioritised for Remedial Action Programme 2: Integrated Transport Planning NATMAP 2050 was not re-submitted to Cabinet due to non-conclusion of the PICC consultation process Corrective measures: Consultations with the PICC secretariat have commenced and the NATMAP will be prioritised at the next PICC MANCO engagement. The development of the Harrismith Hub Framework was not completed. Corrective measures: Option Analyis and Value Assessment reports were completed in collaboration with the Free State Department of Roads, Police and Transport. These reports will be tabled as the basis of the overarching Harrismith Hub Framework.

Notable Challenges to be Prioritised for Remedial Action Programme 6: Maritime Transport Stakeholder consultations on the draft Cabotage Policy were not conducted as was targeted during the period under review. Corrective measures: Due to the incorporation of the Cabotage Policy into the National Maritime Transport Policy, the process has been re-arranged to accommodate both Policies.

Financial Performance Information

Expenditure per Programme Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent R'000 1. Administration 383 457 38 712 422 169 420 824 1 345 100% 2. Integrated Transport Planning 88 083 681 88 764 88 762 2 3. Rail Transport 18 311 364 (754) 18 310 610 18 305 274 5 336 4. Road Transport 23 042 697 122 192 23 164 889 22 889 198 275 691 99% 5. Civil Aviation 149 526 857 150 383 145 284 5 099 97% 6. Maritime Transport 121 089 22 585 143 674 142 874 800 7. Public Transport 11 518 861 (184 273) 11 334 588 11 328 571 6 017 TOTAL 53 615 077 - 53 320 787 294 290 The Department has a total adjusted budget of R53 615 billion and to date had spent R53 302 billion or 99%.

EXPENDITURE PER ECONOMIC CLASSIFICATIONre per Economic Classification Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent R'000 Compensation of Employees 389 806 (6 895) 382 911 382 866 45 100% Goods and Services 679 264 43 161 722 425 701 601 20 824 97% Transfers & Subsidies 52 540 290 (44 568) 52 495 722 52 219 379 276 343 99% Machinery and Equipment 5 717 8 302 14 019 13 616 403 Payment for financial assets - 3 325 (3 325)   TOTAL 53 615 077 53 320 787 294 290 Proposed Shifting to: Goods and Services: Shifting to cover the eNatis costs, state funeral and office accommodation Transfers and Subsidies: Maritime International Oil Pollution Compensation fund and leave gratuities Shifted from: Public Transport: taxi recapitalization and other projects

Expenditure per Economic Classification: Programme 1 Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent   R'000 Compensation of Employees 175 812 (1 413) 174 399 174 354 45 100% Goods and Services 194 130 32 800 226 930 225 629 1 301 99% Transfers & Subsidies 10 637 412 11 049 10 894 155 Machinery and Equipment 2 878 6 913 9 791 9 427 364 96% Payment for financial assets - 520 (520) Total 383 457 38 712 422 169 420 824 1 345 Good and Services: Roll over request for an amount of R1.3 million for Road Accident Benefit Bill

Expenditure per Economic Classification: Programme 2 Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent   R'000 Compensation of Employees 42 480 573 43 053 - 100% Goods and Services 44 957 (456) 44 501 Transfers & Subsidies 54 0% Machinery and Equipment 646 510 1 156 1 132 24 98% Payment for financial assets 22 (22) Total 88 083 681 88 764 88 762 2

Expenditure per Economic Classification: Programme 3 Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent R'000 Compensation of Employees 20 687 (754) 19 933 - 100% Goods and Services 15 101 (135) 14 966 9 630 5 336 64% Transfers & Subsidies 18 275 426 34 18 275 460 Machinery and Equipment 150 101 251 Payment for financial assets   0% Total 18 311 364 18 310 610 18 305 274 Good and Services: Underspend on the following projects Moloto development corridor, National Rail Safety amendment Bill and National Rail Safety Strategy

Expenditure per Economic Classification: Programme 4 Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent R'000 Compensation of Employees 50 284 (4 941) 45 343 - 100% Goods and Services 48 416 126 758 175 174 172 399 2 775 98% Transfers & Subsidies 22 943 366 139 22 943 505 22 667 814 275 691 99% Machinery and Equipment 631 236 867 Payment for financial assets   (2 775) Total 23 042 697 122 192 23 164 889 22 889 198 Transfer and subsidies: Roll over request for Kwa Zulu Natal Provincial Road Maintenance Grant

Expenditure per Economic Classification: Programme 5 Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent R'000 Compensation of Employees 34 854 857 35 711 - 100% Goods and Services 75 513 (499) 75 014 69 608 5 406 93% Transfers & Subsidies 38 739 140 38 879 39 184 (305) 101% Machinery and Equipment 420 359 779 Payment for financial assets   2 (2) Total 149 526 150 383 145 284 5 099 97% Good and Services: Underspend on the following projects watch keeping services, Establishment of Appeals committee and the amendment of Civil Aviation Act.

Expenditure per Economic Classification: Programme 6 Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent R'000 Compensation of Employees 21 728 (1 606) 20 122 - 100% Goods and Services 69 709 (12 667) 57 042 Transfers & Subsidies 29 317 36 675 65 992 65 190 802 99% Machinery and Equipment 335 183 518 Payment for financial assets   2 (2) Total 121 089 22 585 143 674 142 874 800

Expenditure per Economic Classification: Programme 7 Adjusted budget Final Shifting Final Budget Expenditure Available Budget % Spent R'000 Compensation of Employees 43 961 389 44 350 - 100% Goods and Services 231 438 (102 640) 128 798 122 792 6 006 95% Transfers & Subsidies 11 242 805 (82 022) 11 160 783 Machinery and Equipment 657   642 15 98% Payment for financial assets 4 (4) Total 11 518 861 (184 273) 11 334 588 11 328 571 6 017

Transfer Payments Transfer Payments (R'000) Adjusted budget Final Shifting Final Budget Expenditure Available % Spent Conditional Grants:   Provincial Roads Maintenance 9 807 435 9 531 744 275 691 97% Public Transport Operations 4 939 448 100% Public Transport Network 5 953 090 Rural Road Asset Management 96 842 Public Corporatios: Passenger Rail Agency of South Africa (PRASA) 18 222 047 Departmental Agencies & Accounts: S.A. National Roads Agency 12 843 488 Road Traffic Management Corporation 184 104 Railway Safety Regulator 53 379 S.A. Civil Aviation Authority 20 124 Ports Regulator of South Africa 27 627 Road Traffic Infringements Agency 11 497 Maritime Rescue Co-ordination Centre 7 205 Transport SETA 1036 881 155 85% Total 52 167 322 51 891 476 275 846 99%

Transfer Payments (cont..) Transfer Payments (R'000) Adjusted budget Final Shifting Final Budget Expenditure Available % Spent Other:   Taxi scrapping 331 013 (82 022) 248 991 248 402 589 75% Non Profit Institutions 2 415 100% South African National Taxi Council 19 254 Higher Education Institutions(Bursaries to non-employees) 9 433 330 9 763 103% International Oil Pollution Fund 36 636 0% International Organisations 10 685 10 188 497 95% Leave pay and donations 168 488 656 1 245 -589 741% Sub-total 372 968 (44 568) 328 400 327 903 88% Total 52 540 290 52 495 722 52 219 379 276 343 99%

Provincial Road Maintenance Grant (PRMG) PROVINCES Adjusted budget Transfer Spent by Province Variance %   R'000 % Eastern Cape 1 248 047 1 289 151 100% Free State 1 142 796 1 140 418 Gauteng 455 811 455 091 KwaZulu-Natal 1 779 255 1 503 564 1 749 014 85% Limpopo 994 762 Mpumalanga 1 719 417 1 719 391 North West 785 955 787 701 Northern Cape 822 430 Western Cape 858 962 Overall Total 9 807 435 9 531 744 9 816 920 97%

Public Transport Operations Grant (PTOG) PROVINCES Original budget Transfer Spent by Province Variance %   R'000 % Eastern Cape 199 595 199 594 100% Free State 220 669 218 459 Gauteng 1 860 049 1 849 792 KwaZulu-Natal 924 766 Limpopo 298 298 298 662 Mpumalanga 502 271 501 190 North West 92 313 91 658 Northern Cape 44 907 43 346 Western Cape 796 580 Total 4 939 448 4 924 047

Public Transport Network Grant (PTNG) MUNICIPALITIES  Adjusted Budget Transfer Spent by Municipality Variance %   R'000 % EC: Buffalo City EC: Nelson Mandela Bay 186 128 8 296 100% FS: Mangaung 48 128 12 874 GT: City of Tshwane 931 609 601 497 GT: Ekurhuleni 339 296 180 408 GT: City of Johannesburg 1 151 368 442 923 KZN: Msunduzi 213 271 31 628 KZN: eThekwini 1 232 168 789 954 LP: Polokwane 184 189 105 742 MP: Mbombela 116 540 57 652 NW: Rusternburg 552 567 334 828 WC: George 116 325 64 429 WC:City of Cape Town 881 501 470 643 Overall Total 5 953 090 3 100 874

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