DEPARTMENT OF TRANSPORT PORTFOLIO COMMITTEE PRESENTATION FIRST QUARTER 2015/16

Contents Overview Quarter 1 Performance Analysis and Highlights Quarter 1 Expenditure

Overview Report focuses on the progress made with the implementation of programmes & projects in the period covering 01 April 2015 – 31 June 2015; Focus was on optimal performance of deliverables in terms of the MTEF 2015/16 – 2017/18; Report in compliance with relevant statutory requirements

Department Of Transport (Overall) Total Number of targets = 49 % Achievement = 37 targets (76%) % Not Achieved = 12 targets (24%)

Department Of Transport (Overall) Programme TOTAL NUMBER OF TARGETS ACHIEVED NOT ACHIEVED Non / Improvement from previous quarter Number of Targets % ADMINISTRATION 7 6 86% 1 14% INTEGRATED TRANSPORT PLANNING 9 77% 2 23% RAIL TRANSPORT 5 40% 3 60% ROAD TRANSPORT 4 100% 0% CIVIL AVIATION 8 75% 25% MARITIME TRANSPORT 50% PUBLIC TRANSPORT DoT (Overall) 49 37 76% 12 24%

PERFORMANCE PER PROGRAMME

Administration: Key Notable Achievements Integrated Communications and Marketing Plan: Over 30 media alerts issued; Transport izimbizo profiled. Vacancy Rate: 42 posts filled. Human Resource Development: 66 interns currently employed; 56 interns exposed to different workshops Risk Management: Risk Management Framework reviewed and adopted by the Audit Committee Upgrading of DoT internet system: Business case developed

Administration: Notable non-achievements International Relations Strategy – Prolonged internal processes delayed progress. Remedial Action: draft IR Strategy to be completed in the Second Quarter

ITP: Key Notable Achievements NATMAP 2050: Draft synopsis report developed White Paper on the National Transport Policy: Stakeholder consultations conducted in May 2015 STER: Stakeholder consultations conducted. Inputs incorporated and Bill updated. Harrismith Hub Framework: Feasibility study underway; Report on consolidation of Tshiame, Industrial Hub, Harrismith Logistics Hub and Maluti-a-Phofung IDZ underway Private Sector Participation Framework: Situational analysis conducted

ITP: Notable non-achievement Transport Pricing Framework: Project implementation commenced late Remedial Action: Implementation of the project will be fast-tracked with dedicated capacity. Road Freight Strategy: a need for professional, technical expertise and expert advise to complete the strategy was identified Remedial Action: Bidding process for professional consultant to be prioritised for the Second Quarter.

Rail Transport: Key Notable Achievements Interim Rail Economic Regulatory Capacity: Draft guidelines for submission of economic regulatory information aligned with workplan of Ministerial Task Team which has been approved by the Minister.

Rail Transport: Notable non-achievements Draft White Paper on the National Rail Transport Policy: Green Paper not published due to outstanding issues Remedial Action: Consultation with the DPE to address outstanding issues to be prioritised. National Railway Safety Strategy: Delays in internal processes Remedial Action: Fast-track internal processes.

Road Transport: Key Notable Achievements Roads Policy: Draft Green Paper developed S’hamba Sonke Programme: National Support for Provincial Road Maintenance: Maintenance and rehabilitation of roads monitored in provinces, including re-sealing of roads, patching of blacktop, blading and re- gravelling of gravel roads. Access Road Development Plan: Status quo analysis conducted on municipal road network AARTO Amendment Bill: Bill presented at JCPS Cluster in June 2015

Civil Aviation: Key Notable Achievements National Civil Aviation Policy: Stakeholder consultations conducted National Airports Development Plan: Stakeholder consultations conducted Accident and Incident Investigations: 18 reports submitted to the Advisory panel for consideration and 10 safety recommendations made

Civil Aviation: Notable non-achievements ACSA and ATNS Amendment Bills: Prolonged administrative processes Remedial Action: OCSLA to fast-track the process Regulations for the phasing out of the Chapter 2 Aircraft: Delays in legal vetting process Remedial Action: Project to be fast-tracked

Maritime Transport: Key Notable Achievements African Maritime Charter: Charter approved by Cabinet in May 2015 Inland Waterway Strategy: Consultative workshop held in April 2015

Maritime Transport: Notable non-achievements Cabotage Strategy and Bill: Discussion document not yet developed Remedial Action: Process will be fast-tracked in Q2. Merchant Shipping Bill: Prolonged stakeholder consultations. Remedial Action: Project to be prioritised

Public Transport: Key Notable Achievements National Learner Transport Policy: Policy approved by Cabinet in May 2015 Integrated Public Transport Turnaround Plan: Draft Version 5 of the Plan discussed at the Public Transport consultative meeting in May 2015 Rural Transport Strategy: Strategy reviewed and submitted to EXCO for quality assurance. Taxi Recapitalisation Programme: 680 old taxi vehicles scrapped Land Transport Amendment Bill: Bill submitted to Cabinet

Expenditure Expenditure per Programme to 30 June 2015 Expenditure per Economic Classification to 30 June 2015 Transfer Payments Provincial Road Maintenance Grant Public Transport Operations Grant

Expenditure per Programme to 30 June 2015 Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000 %  DTR:ADMINISTRATION 383 457 75 777 81 094 302 363 (5 317) 21% DTR:INTGRTE TRANSPORT PLANNING 80 583 21 986 13 032 67 551 8 954 16% DTR:RAIL TRANSPORT 18 311 364 7 583 071 7 580 571 10 730 793 2 500 41% DTR:ROAD TRANSPORT 22 784 917 5 870 578 5 618 267 17 166 650 252 311 25% DTR:CIVIL AVIATION 149 526 45 821 40 536 108 990 5 285 27% DTR:MARITIME TRANSPORT 111 089 27 777 18 968 92 121 8 809 17% DTR:PUBLIC TRANSPORT 11 536 361 1 023 503 894 156 10 642 205 129 347 8% Grand Total 53 357 297 14 648 513 14 246 624 39 110 673 401 889 The Department has a total original allocated budget of R 53 357 billion. To date of reporting the department has spent R14 246 billion or 27% of the allocated budget.

Expenditure per Economic Classification to 30 June 2015 Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000  % COMPENSATION OF EMPLOYEES 378 606 89 960 91 519 287 087 (1 559) 24% GOODS AND SERVICES 682 835 151 522 229 760 453 075 (78 238) 34% TRANSFERS AND SUBSIDIES 52 291 723 14 405 617 13 923 834 38 367 889 481 783 27% MACHINERY AND EQUIPMENT 4 133 1 414 1 511 2 622 (97) 37% Grand Total 53 357 297 14 648 513 14 246 624 39 110 673 401 889 Compensation of Employees: Overspent due to payment of salary increase for level 1-12. Goods and Services: Overspending due to the cost of maintaining and operating the eNatis. Transfers and Subsidies: Underspent due to the revision of payment schedule to provinces and municipalities for PRMG which is still in a process for approval and Taxi Recapitalisation. Machinery and Equipment: Overspent due to payments of late invoices relating 2014/15 financial year.

Expenditure per Economic Classification: Programme 1 Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000  % COMPENSATION OF EMPLOYEES 170 812 37 596 42 901 127 911 (5 305) 25% GOODS AND SERVICES 197 777 33 429 37 248 160 529 (3 819) 19% TRANSFERS AND SUBSIDIES 12 490 3 762 75 12 415 3 687 0.6% MACHINERY AND EQUIPMENT 2 378 990 870 1 508 120 37% TOTAL 383 457 75 777 81 094 302 363 (5 317) 21% Compensation of Employees: Overspent due to payment of salary increase for level 1-12. Goods and Services: Overspent due to the delayed invoice for the office accommodation.

Cashflow projection 1st quarter Expenditure per Economic Classification: Programme 2 Economic Classification Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000 %  COMPENSATION OF EMPLOYEES 39 780 9 948 10 386 29 394 (438) 26% GOODS AND SERVICES 40 591 11 988 2 403 38 188 9 585 6% TRANSFERS AND SUBSIDIES - 9 (9) 0% MACHINERY AND EQUIPMENT 212 50 234 (22) (184) 111% Grand Total 80 583 21 986 13 032 67 551 8 954 16% Compensation of Employees: Overspent due to payment of salary increase for level 1-12. Goods and Services: Underspent due to the following projects: White paper on National Transport Policy, NATMAP and outstanding invoices on Single Transport Economic Regulator. Machinery and Equipment: Overspent due to payments of late invoices relating 2014/15 financial year.

Expenditure per Economic Classification: Programme 3 Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000 %  COMPENSATION OF EMPLOYEES 20 187 5 048 4 909 15 278 139 24% GOODS AND SERVICES 15 751 4 022 1 595 14 156 2 427 10% TRANSFERS AND SUBSIDIES 18 275 426 7 574 001 7 574 035 10 701 391 (34) 41% MACHINERY AND EQUIPMENT - 33 (33) 0% Grand Total 18 311 364 7 583 071 7 580 571 10 730 793 2 500 Compensation of Employees:Underspent as a result of vacancies. Goods and Services: Underspent due to the delayed projects: Rail Safety Gab analysis and Draft White paper on Rail Policy. Machinery and Equipment: Overspent due to payments of late invoices relating 2014/15 financial year.

Cashflow projection 1st quarter Expenditure per Economic Classification: Programme 4 Economic Classification Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000 %  COMPENSATION OF EMPLOYEES 22% 50 284 11 920 10 901 39 383 1 019 GOODS AND SERVICES 269% 48 416 13 254 130 429 -82 013 -117 175 TRANSFERS AND SUBSIDIES 5 845 274 5 476 876 17 208 710 368 398 24% 22 685 586 MACHINERY AND EQUIPMENT 631 130 61 570 69 10% Grand Total 22 784 917 17 166 650 25% 5 870 578 5 618 267 252 311 Compensation of Employees:Underspent as a result of vacancies. Goods and Services: Overspent due to the cost of the unfunded mandate of maintaining and operating eNatis. Transfers and Subsidies: Underspent due to the revision of payment schedule to provinces and municipalities for PRMG which is still in a process for approval as well as the roll over transfer payment to the Road Traffic Infringement Agency (RTIA) for postage costs.

Cashflow projection 1st quarter Expenditure per Economic Classification: Programme 5 Economic Classification Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000  % COMPENSATION OF EMPLOYEES 34 854 9 780 7 633 27 221 2 147 22% GOODS AND SERVICES 75 653 20 701 17 238 58 415 3 463 23% TRANSFERS AND SUBSIDIES 38 599 15 230 15 554 23 045 (324) 40% MACHINERY AND EQUIPMENT 420 110 310 (0) 26% Grand Total 149 526 45 821 40 536 108 990 5 285 27% Compensation of Employees: Underspent as a result of vacancies. Goods and Services: Underspent due to the delayed projects: National Airport Development plan, Stakeholders consultations on the Airport Company of South Africa (ACSA) and Air Traffic Navigation Services (ATNS) amendment bill projects. Transfers and Subsidies: Overspent due to once off payments of membership fees.

Cashflow projection 1st quarter Expenditure per Economic Classification: Programme 6 Economic Classification Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000  % COMPENSATION OF EMPLOYEES 21 728 5 432 3 993 17 735 1 439 18% GOODS AND SERVICES 69 709 17 431 10 099 59 610 7 332 14% TRANSFERS AND SUBSIDIES 19 317 4 830 4 765 14 552 65 25% MACHINERY AND EQUIPMENT 335 84 111 224 (27) 33% Grand Total 111 089 27 777 18 968 92 121 8 809 17% Compensation of Employees: Underspent as a result of vacant posts. Goods and Services: Underspent due to the delayed projects: The business model for regional shipping, world Maritime day, Implementation of Maritime BEE charter and Ratification African Maritime Charter on the initiation stage. Machinery and Equipment: Overspent due to payments of late invoices relating 2014/15 financial year.

Cashflow projection 1st quarter Expenditure per Economic Classification: Programme 7 Economic Classification Budget Cashflow projection 1st quarter Expenditure Available (2 - 4) Under / (Over) (3 - 4) Spent R'000  % COMPENSATION OF EMPLOYEES 40 961 10 236 10 796 30 165 (560) 26% GOODS AND SERVICES 234 938 50 697 30 749 204 189 19 948 13% TRANSFERS AND SUBSIDIES 11 260 305 962 520 852 520 10 407 785 110 000 7% MACHINERY AND EQUIPMENT 157 50 92 65 (42) 58% Grand Total 11 536 361 1 023 503 894 156 10 642 205 129 347 8% Compensation of Employees: Overspent due to payment of salary increase for level 1-12. Goods and Services: Underspent due to the following projects: Rollout of National Land Transport Act (NLTA) and National Public Transport Regulator. Transfers and Subsidies: Underspent due to slow spending on the Taxi Recapitalisation programme. Machinery and Equipment: Overspent due to payments of late invoices relating 2014/15 financial year.

Transfer Payments Transfer Payments (R'000) Budget Expenditure Available Spent R’000 % Conditional Grants:   Provincial Roads Maintenance 9 850 655 2 309 752 7 540 903 23% Public Transport Operations 4 939 448 847 520 4 091 928 17% Public Transport Network 5 953 090 0% Rural Road Asset Management 96 842 Public Corporations: Passenger Rail Agency of South Africa (PRASA) 18 222 047 7 520 622 10 701 425 41% Departmental Agencies & Accounts: S.A. National Roads Agency 12 542 488 3 118 119 9 424 369 25% Road Traffic Management Corporation 184 104 46 026 138 078 Railway Safety Regulator 53 379 100% S.A. Civil Aviation Authority 20 124 5 031 15 093 Ports Regulator of South Africa 17 627 4 407 13 220 Road Traffic Infringements Agency 11 497 2 874 8 623 Maritime Rescue Co-ordination Centre 7 205 1 802 5 403 Transport SETA 1 036 Total 51 899 542 13 909 532 37 990 010 27%

Transfer Payments Transfer Payments (R'000) Budget Expenditure Available Spent R’000 % Other:   Taxi scrapping 348 513 0% Non Profit Institutions 2 415 262 2 153 11% South African National Taxi Council 19 254 5 000 14 254 26% Higher Education Institutions 11 286 International Organisations 10 545 9 039 1 506 86% Leave pay and donations 168 1 167 Total 52 291 723 13 923 834 38 367 889 27%

PROVINCIAL ROAD MAINTENANCE GRANT PROVINCES Budget Transfer Spent by Province Variance % R'000 % Eastern Cape 1 289 151 316 350 162 743 25% Free State 1 142 796 239 690 243 364 21% Gauteng 455 821 92 156 74 789 20% KwaZulu-Natal 1 779 255 413 847 277 167 23% Limpopo 994 762 249 920 59 426 Mpumalanga 1 719 418 405 224 320 365 24% North West 822 430 200 389 138 553 Northern Cape 788 060 160 387 141 153 Western Cape 858 962 231 789 167 500 27% Overall Total 9 850 655 2 309 752 1 585 060

PUBLIC TRANSPORT OPERATIONS GRANT PROVINCES Budget Transfer Spent by Province Variance %   R'000 % Eastern Cape 199 595 36 290 34 337 18% Free State 220 669 39 043 34 863 Gauteng 1 860 049 307 648 292 184 17% KwaZulu-Natal 924 766 161 489 219 841 Limpopo 298 298 49 469 46 369 Mpumalanga 502 271 84 731 82 856 Northern Cape 44 907 7 870 9 805 North West 92 313 17 376 16 308 19% Western Cape 796 580 143 604 126 831 Total 4 939 448 847 520 863 394

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