Department of Transport PUBLIC TRANSPORT, TAXI RECAPITALISATION PROJECT AND PUBLIC TRANSPORT SUBSIDIES 01 JUNE 2004.

Slides:



Advertisements
Similar presentations
Derek Taylor Nelson Mandela Metropolitan University Port Elizabeth South Africa.
Advertisements

THE PORTFOLIO COMMITTEE ON TRANSPORT 15 November 2011.
Presentation to the Portfolio Committee on Human Settlements A progress report on Cooperative housing initiatives.
1 Alignment to the Local Government Turn Around Strategy (LGTAS)
ROAD PAVEMENT FORUM INAUGURAL MEETING 7 AUGUST 2000.
PREFERENTIAL PROCUREMENT WORKSTREAM
Food Voucher Project June 2002 Promoted by: Womens Development Business Investment Holdings Disability Employment Concerns Trust Accor S.A.
Public transport framework plan for Buffalo City July, BUFFALO CITY MUNICIPALITY PUBLIC TRANSPORT FRAMEWORK PLAN PRESENTATION August 2008.
Slide 1 Sudan Private Sector Forum A Forum to support Sudanese Public – Private Sector Dialogue Prepared by Amin Sid Ahmed- World Bank, PSD Advisor Presented.
Transport Policy as an Enabling Framework for Green Growth in South Africa Ngwako Makaepea Department of Transport 18 May 2010.
NATIONAL DEPARTMENT OF TRANSPORT AMENDMENTS TO THE NLTTA To address the areas that hamper the effective implementation of the Act.
D/TTAS - Transport policy data needs Transport Statistics Liaison Group 19 th September 2013.
PRASA GROUP FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2013.
PRESENTATION TO THE PORTFOLIO COMMITTEE OF AGRICULTURE, FORESTRY AND FISHERIES AGRIBEE CHARTER COUNCIL STRATEGIC PLAN AND BUDGET FOR 3 YEARS 2015/16 –
CREW Project Research Findings of Diagnostic Country Report (DCR), Ghana Bus Transport Sector.
PUBLIC TRANSPORT IN SKOPJE: NEW APROACH FOR BETTER QUALITY OF SERVICE
Department of Public Enterprises DATE - 6 October 2015 Page 1 Rail Restructuring Presenter:DPE Transport Venue: Parliament Date : 20 March 2002 Time :
PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES NCOP Taxi Recapitalisation Programme 17th November 2004.
The Palestinian Perspective on the Cooperation in R&D in Sustainable Urban Mobility Khaled Al-Sahili An-Najah National University Palestine Rabat 19 May.
Click to edit Master subtitle style 4/8/11 Select Committee on Appropriations Presentation on proposed amendments to public transport grants (PTISG and.
NATIONAL TRANSPORT STRATEGY. INTERNATIONAL BENCHMARKS.
Transport Authorities eThekwini Transport Authority Making a difference for sustainability Notes.
NEW STRATEGY FOR TRANSPORT GOVERNANCE IN MONTREAL March EMTA Meeting, Madrid.
RIAAN VISSER GFIMFO Manager: Consulting Services SizweNtsalubaGobodo.
1 POLICY,STRATEGY and IMPLEMENTATION NATIONAL DEPARTMENT OF TRANSPORT.
1 POLICY,STRATEGY and IMPLEMENTATION NATIONAL DEPARTMENT OF TRANSPORT.
Key problems and priorities in urban transport sector in SEE Regional Meeting on Sustainable Transport Policies in South Eastern Europe Budapest,
Overview of NER and its Future Business Direction Presentation to Standing Committee on Minerals and Energy Parliament 09 May 2001.
Presentation by the Department of Cooperative Governance to the Portfolio Committee on Cooperative Governance and Traditional affairs 15 November 2011.
1 National Learner Transport Policy Presentation 08 September 2015.
MUNICIPAL SYSTEMS BILL September LEGISLATION n Municipal Demarcation Act, 1998 n Municipal Structures Act, 1998 n Municipal Systems Bill (1999)
CIVILIAN SECRETARIAT FOR POLICE STATUS REPORT ON IMPLEMENTATION OF THE CIVILIAN SECRETARIAT FOR POLICE SERVICE ACT 2 OF 2011 PORTFOLIO COMMITTEE ON POLICE.
PRESENTATION TO PARLIAMENT’s PORTFOLIO COMMITTEE ON TRANSPORT 16 th February 2005 REVISED TAXI RECAPITALISATION PROJECT.
1 PRESENTATION TO PORTFOLIO COMMITTEE ON TRANSPORT 22 MAY 2002 NATIONAL DEPARTMENT OF TRANSPORT.
THE FINAL ACTS OF THE ITU PLENIPOTENTIARY CONFERENCE, MARRAKESH, MOROCCO 2002 PRESENTATION TO SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES.
Presentation of the Property Rates Debt to the Port Folio Committee on Cooperative Governance & Traditional Affairs 25 October 2011 Presented by: Cathy.
SANTACO’s response to the Portfolio Committee on Transport on the Support required for the Implementation of the TR strategy Parliament of the Republic.
1 PRESENTATION TO THE PORTFOLIO COMMITTEE ON THE OVERVIEW OF THE NDPW PRESENTED BY THE TOP MANAGEMENT COMMITTEE 26 MAY 2004.
1 BRIEFING BY THE DEPARTMENT ON SAWIMA AND THE INTENDED OBJECTIVES ON ESTABLISHING THE ORGANISATION 23 NOVEMBER 2011.
Presentation to Joint Budget Committee on: Urban Renewal and Rural development NATIONAL DEPARTMENT OF HOUSING.
1 Consolidated Municipal Infrastructure (CMIP) and Municipal Infrastructure Grant (MIG) DPLG PRESENTATION TO THE PORTFOLIO COMMITTEE ON LOCAL GOVERNMENT.
1 Department of Transport Report on the 2008 Local Government Budgets and Expenditure Review 2003/04 – 2009/10.
Presentation to Portfolio Committee Progress on the Departmental Under-Expenditure and Recovery Plans -Mr. T. Zulu Director-General 1.
PORTFOLIO COMMITTEE DWCPD PRESENTATION 17 APRIL 2012 DISABILITY SECTOR INPUTS ON THE DWCPD STRATEGIC PLAN DOCUMENT BY MUZI NKOSI SADA CHAIRPERSON SOUTH.
Tshepo Makhanye Information Section: Research Unit.
Department of Transport PASSENGER RAIL CONSOLIDATION 19 October 2005.
SARCC Budget and Strategic Plan 2007/08 Portfolio Committee on Transport 28 February 2007 Presented by SARCC CEO: TL Montana.
BRIEFING ON SCHOLAR TRANSPORT TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON TRANSPORT By Mr George Mahlalela Director General 12 April April 2011.
DEPARTMENT: LAND AFFAIRS Department of Land Affairs Presentation to the Joint Budget Committee on Departmental Expenditure for the Financial Year 2007/08.
Provincial Budgets and Expenditure Review: 2003/04 – 2009/10 NCOP: SELECT COMMITTEE ON FINANCE 16 OCTOBER 2007 ROADS AND TRANSPORT.
Department of Transport Joint Budget Committee Hearings Medium Term Budget Policy Statement 2005 Theme 3: Employment and Economic Development 1 November.
Presentation to the Portfolio Committee on Transport,22 March 2011.
A CATALYST FOR SUSTAINABLE DEVELOPMENT FOR A BETTER LIFE FOR ALL1 CAPRICORN DISTRICT MUNICIPALITY DISTRICT-WIDE HIV AND AIDS RESPONSE PROGRAM 02 DECEMBER.
Title: Road vs. Rail… A shift towards rail Date: 16 Nov 2015.
The Gauteng Economic Indaba Transport and Logistics Mr Piet Sebola Group Executive Strategic Asset Development Date: 09 th June 2016.
2017 ECONOMIC DEVELOPMENT, TOURISM AND ENVIRONMENTAL AFFAIRS
PRESENTATION TO THE TRANSPORT PORTFOLIO COMMITTEE BUS SUBSIDY BUDGET SHORTFALL 2008/09 03 FEBRUARY
Ministry of Finance Contribution of the Operational Programmes to the implementation of the NSRF objectives Boriana Pencheva Director Management.
MAINSTREAMING OF WOMEN, CHILDREN AND PEOPLE WITH DISABILITIES’ CONSIDERATIONS IN RELATION TO THE ENERGY SECTOR Presentation to the Joint Meeting of the.
NATIONAL DEPARTMENT OF TRANSPORT
Taking Public Transport Forward to 2010
UIF ANNUAL REPORT 2005/06 PRESENTATION TO THE PORTFOLIO COMMITTEE
Information Section: Research Unit
Draft National Learner Transport Policy Presentation
Translating political objectives into sound policy proposals
TAXI RECAPITALISATION
SPECIAL ECONOMIC ZONES IMPLEMENTATION
Long term strategy and structure
INGONYAMA TRUST BOARD’S ANNUAL PERFORMANCE PLAN
36th Southern African Transport Conference
Presentation transcript:

Department of Transport PUBLIC TRANSPORT, TAXI RECAPITALISATION PROJECT AND PUBLIC TRANSPORT SUBSIDIES 01 JUNE 2004

CONTENTS 1.INTRODUCTION AND BACKGROUND INFORMATION 2.POLICY THRUSTS ON PUBLIC TRANSPORT 3.THE TAXI PROCESS 4.COMMUTER RAIL 5.BUS CONTRACTS 5.AN INTEGRATED PUBLIC TRANSPORT SYSTEM

The overarching objectives for a sustainable public transport system which contributes to the economic growth of our country are:  To increase investment in public transport infrastructure  To recapitalise the public transport fleet and  To increase access to affordable public transport services The White Paper on National Transport Policy, 1996 The promotion of a safe, reliable, effective, efficient, co-ordinated, integrated, and environmentally friendly land passenger transport system in South African urban and rural areas, to ensure that people experience improving levels of mobility and accessibility. INTRODUCTION AND BACKGROUND INFORMATION Department of Transport

 Reducing the need to travel;  Making travel more affordable;  And thus saving people’s income from increasingly used for transport cost. TWhite Paper on National Transport Policy, 1996, brought a clear focus, with the following key factors : Government recognizing that public transport is a basic need  To be efficiently provided so that resources are used in an optimal manner  Based on transport plans Creating a comprehensive integrated, multi-modal, public transport system Approached on the basis of competitive tendering POLICY THRUSTS Important for South Africa given its history, addressing significant barriers to social inclusion:

Department of Transport THE RECAPITALISATION OF THE TAXI INDUSTRY The primary aim of the taxi recapitalisation project at conception was aimed at:  providing vehicles which will provide safe and affordable transport to commuters. (result of the aged minibus taxi fleet, average of 9-10yrs, which increasingly threaten safe to life).  creating opportunities for jobs in the manufacturing and downstream industries.  promote the use of diesel fuel as a more cost-effective and efficient fuel and thus lowering the operating cost. Based on the 1998 projections the strategy was to shift the transport sector consumption of petrol and diesel such that diesel exports and petrol imports are reduced..  Supporting the objective of formalizing the taxi industry and thus have an effective regulatory framework which will assist in operators fairly sharing the benefit of transporting passengers and thus also curbing fights for routes.  broadening the tax base

THE TAXI PROCESS In 1996 The National Taxi Task Team (NTTT) was established constituted of Government officials, community leaders and members of the taxi industry to:  Investigate the conflict and violence prevalent in the taxi industry at the time.  Make recommendations to Government on how to address findings thereof. Findings of the NTTT broadly grouped into three main areas, viz: The need to regulate the taxi industry The need to formalise the taxi industry The urgent need for economic empowerment for the industry.

PROGRESS MADE POST THE NTTT FINDINGS On Regulation: The National Land Transport Transition Act, (NLTTA),2000 Associations and members thereof, encouraged to register with Provincial Registrars (Section 56 of the NLTTA apply). Operators currently converting permits to operating licenses as required ( Section 32 of the NLTTA apply). Establishment of the National Transport Register as required by the NLTTA (Section 52) – this is currently being rolled out with Provinces. Registration with the South African Revenue Services (SARS) is a pre-requisite for conversion of a permit to an operating license. Special Legalisation Process (SPL) initiated to give illegal taxi operators an opportunity to legalise their operations provided they met certain basic requirements- the “Be Legal Campaign” (BLC), closed on the 31 st December 2002 as per MINCOM resolution.

PROGRESS MADE POST THE NTTT FINDINGS On Formalization: Democratic elections held at association, regional and provincial level in all Provinces. Democratically elected Provincial Taxi Councils (PROTACO’s) now serve as the mouthpiece of the industry at the Provincial level. The South African National Taxi Council (SANTACO) elected into office in September 2001, by all Province.

Department of Transport PROGRESS MADE POST THE NTTT FINDINGS On Economic empowerment: Government initiated and funded pilot taxi co-operatives as part of the economic empowerment suggested by the NTTT. Pilot co-operatives became unsustainable due to lack of management skills of the industry and lack of funding. Additional economic empowerment for the industry embedded in capital subsidy through the taxi recap program.

THE TAXI RECAP TENDER BACKGROUND Seeks to replace the current ageing fleet of 16 seaters with purpose built larger capacity New Taxi Vehicles (NTV) in the form of 18 and 35 seaters through a government tender process. Economically empower the taxi industry, through a once off capital subsidy, the scrapping allowance of 20% per vehicle translating into R4 billion over 4 years. Introduction of the electronic payment system to monitor and control data collection, provide audit functionalities, effect modal integration. Cabinet approval – September 1999 The dti issued request for proposals – November 1999

TAXI RECAP TENDER DELAYED Due to:  The need to first formalise and democratise the taxi industry ( completed in September 2001)  De-linking of the Electronic Management System (EMS) from the New Taxi Vehicle (NTV) process, after it was realised that the EMS technology had overtaken developments of the process. ( Separate Tender for the EMS issued in March 2001, and four companies short listed.)  Dispute between Government and SANTACO over the ownership and management of the EMS arose, and the matter was resolved end of  Strategic review report which contained indicative affordability figures done in November 2002.

PROGRESS MADE ON TAXI RECAP TENDER The following progress has been realized: The Steering Committee chaired by DOT reconstituted with the DTI, DME, Treasury and Office of Status of People with Disability( The Presidency ) The BAFO instruction document was issued to both NTV and EMS bidders. (21 st May 2003) Government entered into negotiations with the bidders to secure 25.1% equity for the taxi industry. The BAFO submission was closed by the expected date of 12 th September The evaluation process for both the EMS and NTV tender processes was completed and a report finalised by 19 th November 2003.

PROGRESS MADE ON TAXI RECAP TENDER The following progress has been realized: The evaluated remaining NTV bidders are:  TATA  IVECO  KWONG CHUNG MUDAN AUTOMOBILE  DAIMLER CHRYSLER SOUTH AFRICA The only EMS bid is for :  RSA EMS

CHALLENGES FACING THE TAXI RECAP PROJECT The BAFO received is mandated for this project at a funding requirement level of R4 billion. –Additional funding requirement will be increased burden on the fiscus Should NTV prices proposed by the bidders be higher than current taxi prices. –Some operators may not afford the cost of purchase and maintenance Although the project have added advantage of safety and comfort to commuters. –Commuters may have to ultimately pay for fare increases A conditional approval of NTV Suppliers to be followed by Homologation and Endurance tests. Negotiations with suppliers still to be done.

RAIL FUNDING REQUIREMENTS 2004/05 ‘ /06 ‘ /08 ‘000 Operational Capital Total Operational Shortfall

CAPITAL FUNDING REQUIREMENTS Rolling Stock Age Distribution Age Group Coaches

CAPITAL FUNDING REQUIREMENTS ROLLING STOCK NO INVESTMENT IN NEW COACHES SINCE 1988 AVERAGE AGE OF FLEET 30 YEARS 4500 COACHES WITH A REPLACEMENT COST OF R 63 BIL 264 COACHES REFURBISHED in 2003/04

BUS CONTRACTS Interim contract – untendered contract between the DOT and the operator Tendered contract – contract awarded by a tender board between DOT and the operator for the provision of public transport service Negotiated contract – allowed by the Minister to be negotiated with the operator rather than be put out to tender

PROGRESS REPORT -BUS CONTRACTS Tendered contracts – 58 Negotiated contracts – 2 Interim contracts – 34

BUS SUBSIDY DISTRIBUTION There are commuter buses (excluding municipal and long distance buses) Approximately 7500 buses are currently subsidised Approximately 2600 are unsubsidised Approximately 1.8% of the population was subsidised in the 2001/02 financial year On average passengers received R198 in subsidies per month = 6.7% of the average household income

BUS SUBSIDY DISTRIBUTION

PROMOTION OF BEE: ROAD BASED P/TRANSPORT Provinces to set aside a minimum of 30% of services to be contracted to companies with at least 50.1% PDI equity Remaining 70% of services a minimum of 35% PDI equity ownership required 10% subcontracting of the remaining 70% services to SMME/PDIs

QUALITY MANAGEMENT A National Supervision and Monitoring team is in the process of being appointed Subsidy Management System is being rolled out in all provinces on the National Transport Register

RAILRAIL BUSBUS TAXITAXI INTERGRATED TRANSPORT PLANS AN INTEGRATED APPROACH TO PUBLIC TRANSPORT

AN INTEGRATED PUBLIC TRANSPORT SYSTEM Rational for subsidy Targets for redistribution Spatial allocation Mode to be subsidised Equity Distance Affordability Workers Job seekers Learners Poorest Needy Disability Densificat ion Urban Rural Rail Bus Taxi

AN INTEGRATED PUBLIC TRANSPORT SYSTEM The National Travel Survey Surveyed households  To analyse:  approximately 3,85 million public transport commuters  2.4 million ( 64%) use mini-bus taxis  21% use buses  15% commune to work by train.  Is due for completion June 2004

Department of Transport Thank you