NLTTA 27/05/2019

Situational Analysis 27/05/2019

Problems with the NLTTA 27/05/2019

Appropriate Institutional Bodies Immediate problem - Clause 10(13) provides for an assignment of functions to the TA from Provinces without the need for agreement. TA, being a separate juristic body does not enjoy the constitutional protection that a sphere of government has – legal opinion. Broader problem – sustainable funding source. eThekwini – subsidy bill is approx R450 million/annum. Total cost of TA over R700million/annum Deficit or currently unfunded R34.5 million/annum increased to R80m 27/05/2019

Recommendation Amend Clause 10(13) to include the words “by agreement” Lobby for appropriate financial legislation as well as NLTA to allow TA to raise its own funding. In eThekwini eg: To fund subsidies +16c/l fuel & 208% licence fee To fund deficit costs +1.2c/l fuel & 16% licence fee Funding to be tied up through founding agreement. 27/05/2019

Planning Cost of statutory plans – eThekwini – R12m/5year cycle. Frequency of plans is problematic eg CPTR resurvey before finishing previous years data capture. 27/05/2019

Recommendation Provide funding Change frequency 27/05/2019

Regulated Competition & Appropriate modes Durban Transport issue Funding humps must be provided for or PPP’s and required guarantees must be pursued. Taxi recap 27/05/2019

Recommendation Confirm National Policy – galvanise political will. Provide for funding humps or a framework for PPP’s and guarantees. 27/05/2019

Enforcement Not addressed adequately in NLTTA. Critical Success Factor for an integrated system. 27/05/2019

Recommendation Amend RTMC & AARTO Acts to provide for Transport Law Enforcement. 27/05/2019

Functions Mandatory prepare transport plans develop land transport policy Financial planning for land transport Manage movement of people and goods encourage, promote and facilitate public consultation Prepare tenders, evaluate and award tenders for PT services + those assigned by Provincial legislation RAIL EXCLUDED! 27/05/2019

Other functions (optional) Functions cont. Other functions (optional) promote optimum modes Integration of modes fare levels Fare systems and integrated ticketing Information systems regulation enforcement Security etc 27/05/2019

eThekwini TA functions Mandatory prepare transport plans develop land transport policy Financial planning for land transport Manage movement of people and goods encourage, promote and facilitate public consultation Prepare tenders, evaluate and award tenders for PT services (Subsidy function) “DT” contract only 27/05/2019

Key Issue TA’s Implementation Great Expectations! 27/05/2019

Danger Created another institutional structure with no real resources and mechanisms to IMPLEMENT Why do we say that? 27/05/2019

Regulate mini-bus taxi industry? However… Vision Objectives Regulate mini-bus taxi industry? TA’s Policy Implementation NAT /PROV Legislation Funding Recap? NATIONAL NLTA? Funding Framework Strategies Rail funding? 27/05/2019 NATIONAL NATIONAL

The issue of devolution PRO’S CON’S In line with National Policy International Best Practice Consolidation of Transport functions *More responsive to local passenger needs * Intermodalsim (info, tickets, planning etc) Fragmentation of local planning function (Land-use / transport integration) BENEFIT > DISBENEFIT If full devolution of bus and rail does not take place, then lost benefit! Manage through IDP process, Liaison structures, joint project teams and Governing Body being EXCO Councilors. 27/05/2019

TAXIS: License – rights in perpetuity – MUST compensate, relocate or move into bus industry How compensate? - Business – some % of asset value – not good for PT ops - need to know income, expenditure, profit etc- no records! - Negotiate with each single operator – all slightly different How relocate? - Large number of operators - Existing operators in all other areas - violence Move into Bus industry – opportunity, but is limited! Re-cap is supposed to help, but where is it?? 27/05/2019

RAIL: Objective – feed people to rail First need to upgrade VERY POOR rolling stock and critical infrastructure - Cost: in excess of R 1 bill in eThekwini - Not under local authority control – SARCC / NDOT - SARCC priority: Cape Town and Guateng - Devolution still far away WHERE DOES THAT LEAVE ETA 27/05/2019

2B or not 2B a TA? It seems there is an upfront choice to be made regarding the organisation: Vertical integration of transport functions: Rail Bus Taxi Horizontal integration of planning functions at local level OR Agencies to deal with rail, bus and minibus taxi Integrate planning via some arrangements 27/05/2019

Functions Mandatory prepare transport plans develop land transport policy Financial planning for land transport Manage movement of people and goods encourage, promote and facilitate public consultation Prepare tenders, evaluate and award tenders for PT services + those assigned by Provincial legislation RAIL EXCLUDED! 27/05/2019

Other functions (optional) Functions cont. Other functions (optional) promote optimum modes Integration of modes fare levels Fare systems and integrated ticketing Information systems regulation enforcement Security etc 27/05/2019

eThekwini TA functions Mandatory prepare transport plans develop land transport policy Financial planning for land transport Manage movement of people and goods encourage, promote and facilitate public consultation Prepare tenders, evaluate and award tenders for PT services (Subsidy function) “DT” contract only 27/05/2019

Some lessons cont. ETA dependent on National and Provincial Government Waiting for… Proper National Funding Framework and Strategy & MONEY-Capital/Operating and PT subsidy Rail investment Re-cap –are we merely replacing old with new Provincial legislation Buying out Operating licences? How is that Sanral is able to be so successful –Funding? PT subsidy Special users etc 27/05/2019

Parting Shots Cooperative governance – on the admin side is at an all time low. Capacity – seriously lacking. Policy and strategy is sound but the institutional structure to support the policy and strategy is found wanting. “Criminal” to have such wonderful policy and legislation but such a lack of commitment and ability to follow through. Reality is –it is expensive to provide efficient PT services. Benefits are enormous 27/05/2019