1. Department of Transport
Annual Report 2014/15 1

2. Contents Background DoT Overall Performance Performance per Programme
Human Resource Management
Human Resource Development
DoT Equity Statistics
Governance
Areas for Improvement Identified
Best Practices
Financial Statements 2014/15

3. Key Focus Areas for the Report
Performance of the Department of Transport (DoT);
Non-financial and financial results;
DoT Organisational Health and Capability to deliver on policy objectives.

4. Background
Report focuses on the progress made with the implementation of programmes & projects in 2014/15
Focus was on optimal performance of deliverables in terms of the MTSF & MTEF
Targets were guided by the outcomes-based approach (Outcome 4, 6, 7 & 10)
Implementation of programmes was directed by the NDP, NGP, IPAP & NIP

5. Overview of the Transport Sector for the 2014/15 Financial Year
NDP emphasizes necessity of sound economic infrastructure as a pre-condition for economic growth;
The APP 2014/15 highlighted the DoT’s commitment to address major social and economic challenges facing the sector through interventions aimed at accelerating service delivery, increasing job opportunities, rural development and skills development;
This report emphasizes the DoT’s continued restatement of the need for increased investments in public transport infrastructure, restructuring of current subsidies to promote integrated settlements and transport infrastructure projects to improve access to opportunities for the urban and rural poor.

6. Department Of Transport (Overall)
Total Number of targets = 77 % Achievement = 56 targets (73%) % Not Achieved = 21 targets (27%)

7. Department Of Transport (Overall)

8. Department Of Transport (Summary of performance per programme)
Total no of targets
Achieved 2014/15
Year-to-Year
Achieved Targets %
% Achieved 2013/14
Improved or Dropped
ADMINISTRATION (ODG, CFO, COO, TIS) 18 13
72%
84%
ITP 12 8
67%
44%
RAIL 5
100%
60%
ROAD 10 9
90%
61%
CIVIL AVIATION
75%
53%
MARITIME 2
22%
52%
PUBLIC TRANSPORT 11
63%
DOT (OVERALL) 77 56
73%
66%

9. PERFORMANCE PER PROGRAMME

10. ITP: Key Notable Achievements
To ensure an integrated and seamless movement of freight across supply chains for all transport modes, progress on the following interventions was recorded during period under review:
The Final Study Report on the impact of freight accidents on SA roads was developed. The study entailed investigations into the causes and consequences of freight accidents in SA as well as recommendations towards curbing these crashes.
A draft Freight Logistics Strategy Review Report was developed. The report was based on the review of the NFLS 2005 and details a re-focused strategic framework for sector institutional review and industrial restructuring for a more efficient freight system that allows greater access to service providers and cargo owners, while also creating space for private sector participation.

11. ITP: Key Notable Achievements
To improve economic regulations in the Transport Sector:
The DoT developed a draft Position Paper and 4th draft STER Bill. The Bill is being routed to Cabinet for consideration and approval. The medium term target is to establish the STER through promulgation of relevant legislation by December 2016.
Once established, the STER will:
enhance private sector investments in areas that were exclusively state sectors;
manage relations between infrastructure owners and operators in a transparent manner in how tariffs are set;
open up competition in a regulated way; and also
provide opportunities for market access and competition.

12. ITP: Key Notable Achievements
To increase sector economic transformation and performance, in the period under review, the DoT:
launched the Transport BBBEE Charter Council. The Charter business plan was also developed. The Council will fast-track the uptake of transformation in the transport sector and also support the industry in reaching its targets.
conducted a field survey on the Rural Accessibility / Multi Deprivation Index in 8 provinces. A survey report was subsequently generated and submitted for approval. The Index is a key transport headline indicator and is established to focus on the critical role of access and mobility in the reduction of poverty in the country.

13. ITP: Key Notable Achievements
To increase sector contribution to environmental protection, the DoT:
produced a draft report on the Energy Consumption Reduction Study and circulated it for external consultations. The study aims to recommend how the sector may reduce GHG emissions.

14. ITP: Notable non-achievements
NATMAP 2050 was not submitted to Cabinet due to delays in consultations with the PICC.
Consultations with PICC will be prioritised for 2015/16 and the Plan will be submitted to Cabinet accordingly;
Tier 2 GHG Inventory Report not finalised due to lack of existence of the Maritime Database.
The development of the Maritime Database will be prioritised for 2015/16 and the Inventory Report will be subsequently finalised.

15. Rail Transport: Key Notable Achievements
To improve the efficiency, capacity and competitiveness of the rail transport operation, the DoT reported the following progress in 2014/15:
Extensive stakeholder consultations were conducted on the Green Paper on Rail Transport Policy. The Green Paper was then revised. This is a key step towards formulation of a Policy that will address challenges facing the rail sector. A first draft White Paper was also drafted.
Strategic Branchlines were defined and identified; and a draft Branchline Strategy was developed. The strategy provides a vehicle to shape how these strategic branchlines can contribute to increased volumes of freight, improve efficiencies and safety in the railway sector.

16. Road Transport: Key Notable Achievements
To ensure a sustainable transport infrastructure network, the DoT:
continued to implement the S’hamba Sonke Programme, which entails rehabilitation and maintenance of roads, re-sealing and patching of surfaced roads, blading and re-graveling of gravel roads. Through the programme:
298 SMMEs were supported
Full-time Equivalent jobs were created
conducted a needs analysis and developed the Road Infrastructure Policy Framework. Stakeholder consultations were also conducted thereafter.

17. Road Transport: Key Notable Achievements
To regulate and enhance road transport safety, the DoT:
conducted needs analysis and consultations with RTMC, RTIA, CBRTA and Gauteng Province on the draft Road Safety Policy
successfully executed and monitored the implementation of the 365-Road Safety Programme

18. Road Transport: Notable non-achievements
Only Full-time Equivalent jobs were created during the period under review against a target of This baseline will be reviewed based on the type of projects being implemented at Provinces to inform targeting going forward.

19. Civil Aviation: Key Notable Achievements
To enhance performance, efficiency and reliability of Civil Aviation, the DoT:
promulgated the 2015/16 – 2019/20 Permission for the ACSA and ATNS levies in the Government Gazette
gazetted the draft Amendment Bills for ACSA and ATNS Acts for public comments
conducted stakeholder consultations on the Civil Aviation Amendment Bill and submitted the Bill for consideration
conducted stakeholder consultations on the National Civil Aviation Policy and National Airports Development Plan
held air service negotiations with Gabon, Namibia and Mozambique; and signed MoUs with South Sudan, Philippines to review air service arrangements

20. Civil Aviation: Key Notable Achievements
To regulate civil aviation safety and security, the DoT:
investigated aircraft accident and incidents and released reports with safety recommendations for each quarter
To create opportunities in the civil aviation sector;
awareness campaigns, career expos and exhibitions were held and 435 SA schools were exposed to aviation-related career choices

21. Civil Aviation: Notable non-achievements
Aviation Industry Transformation Letsema not hosted for 2014 due to budgetary constraints.
Regulations on the phasing out of Chapter 2 Aircraft not approved due to prolonged stakeholder consultations. The process of verification will be fast-tracked to ensure approval in the new financial year.

22. Maritime Transport: Key Notable Achievements
To regulate and enhance Maritime Transport safety:
The Cape Town Agreement (2012) on the implementation of the provisions of the Torremolinos Protocol (1993) was submitted to the ICTS Cluster for approval
The MARPOL IV & VI Conventions were approved in August These conventions forms part of the sector’s contribution to environmental protection
The African Maritime Charter also submitted to the ICTS Cluster as part of the sector’s contribution to job creation.

23. Maritime Transport: Notable non-achievements
Finalisation of the Maritime Transport Policy delayed by prolonged consultation process;
Amended Maritime Security Regulations not published due to prolonged stakeholder consultations;
Maritime Labour Regulations not finalised due to capacity constraints;
Salvage Strategy not finalised due to prolonged internal processes
HNS Fund and Bunkers Convention not finalised due to prolonged stakeholder consultations

24. Public Transport: Key Notable Achievements
In its quest to provide quality rural and learner transport, the DoT:
finalised the National Learner Transport Policy and submitted it to Cabinet for approval. The Policy aims to improve the management of learner transport and ensure provision of quality public transport in rural areas
distributed bicycles to provinces
finalised the review of the Rural Transport Strategy
conducted stakeholder consultations on the Public Transport Stakeholder Relations Framework and developed a draft Framework.

25. Public Transport: Key Notable Achievements
To improve Public Transport access and reliability;
construction and/or operations of IPTNs are in progress in 11 municipalities. Mangaung still completing planning phase and Buffalo City progress halted by litigation processes

26. Public Transport: Notable non-achievements
Taxi Recapitalisation Programme
4 049 old taxi vehicles were scrapped against a revised target of (target revised from due to trends of the first two quarters)
Less applications were received from operators hence the lower number scrapped

27. Human Resource Management
Vacancy Rate
134 positions filled during 2014/15 (target for the financial year was to fill 80 positions);
Vacancy rate decreased from 26,52% to 22,16%
Over-performance due to improvement of number of short-listings and interviews; and higher success rate of candidates accepting offers

28. Youth Skills Development Initiatives (Human Resource Development)
803 students were registered in different transport disciplines at 11 Institutions of Higher Learning (Universities and Universities of Technology);
Transport Research Activity Centre (TRAC) reached out to learners across 9 provinces and operated in 167 schools through fixed and mobile laboratories learners were registered for first year undergraduate qualifications at various tertiary institutions;
1 657 transport learners currently registered in TVET colleges in Operations, Logistics and Economics.
58 DoT interns were recruited and 10 youth participated in Project Management Learnership;

29. Employment Equity Statistics
Race
African – 91.35% (target – 79.5%)
Coloured – 1.49% (target – 9%)
Indian – 1.79% (target – 2.5%)
White – 5.37% (target – 9%)
Gender
Male – 293 (44%) target = 54.20%
Female – 378 (56%) target = 45.80%

30. Employment Equity Statistics
SMS
Male – 64 (62%)
Female – 40 (38%)
(Target = 50% female representation in SMS)
Disability
Male – 2
Female – 10
DoT Disability Status – 1.78% (Target = 2%)

31. GOVERNANCE

32. Risk Management
DoT Risk Management Policy and Strategic Framework reviewed to inform the Department’s future endeavour of risk identification, assessment and monitoring;
Risk Management Plan (key controls and mitigation strategies) developed and implemented; and risk assessments conducted quarterly;
Progress on the implementation of risk mitigation plans monitored and reported quarterly to EXCO and Audit Committee;
DoT Risk Profile updated accordingly.

33. Labour Relations Misconduct and Disciplinary Hearings Grievances
Total of six (6) hearings (5 final written warnings and 1 case withdrawn)
Grievances
Total of 23 lodged (15 resolved and 8 not resolved)
Disputes
Total of 3 lodged (3 upheld and 0 dismissed)
Strike Actions
No persons working days lost
Precautionary Suspensions
Four (4) people suspended

34. Minimising Conflict of Interest
Financial Disclosure Framework – All SMS members sensitised to disclose financial interest so as to identify conflict of interest;
Declaration of interest for all procurement as a measure to minimise conflict of interest in SCM (SBD 4 Form and SBD 9 Form)

35. Code of Conduct
100% of new appointees were inducted on the Code of Conduct
SMS training on disciplinary matters related to violation of Code of Conduct

36. Internal Control
Action plans to address audit findings for 2013/14 financial year developed and monitored on a quarterly basis;
Progress reports on the implementation of action plans monitored on a quarterly basis and presented to Audit Committee meetings;
Compliance reviews conducted on:
PFMA,
Treasury Regulations,
DoRA,
Financial Policies,
SCM.

37. Internal Audit and Audit Committees
Internal Audit conducted 24 audits during the period under review.
Ten (10) Audit Committee meetings were held during period under review.
Audit Committee complied with its responsibilities - Section 38 (1) (a) (ii) of the PFMA and Treasury Regulation
Audit Committee has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with the Charter and has discharged all its responsibilities as contained therein.
Among the responsibilities of the AC, the following were done during the period under review:
Review of the effectiveness of Internal Control
Assessment of in-year Management and Monthly/Quarterly Reports
Evaluation of Financial Statements

38. Areas of Improvement Identified
Improve stakeholder engagement processes in policy development
Strengthen internal coordination processes
Improve skills and other related capacity constraints in the DoT
Enhance a structured and coordinated inter-sectoral planning and reporting mechanism
Oversight of Entities and Provincial Departments
Strengthen performance evaluation in line the DPME National Evaluation Framework

39. Best Practices
Regular and vigorous EXCO deliberations on performance information
Carry-over deliverables and red flags
Adherence to Technical Indicator Descriptions and pre-determination of evidence for quality reporting and performance analysis
Regular interactions between the CD:SP&CC and Branches to discuss planning, monitoring and reporting issues affecting performance in the DoT
Reports, evidence and audit issues
Quarterly meetings conducted between Planning, Monitoring and Evaluation practitioners of DoT and Provinces to discuss sector planning, monitoring and reporting as guided by transversal indicators

40. FINANCIAL INFORMATION

41. Adjusted Budget 2014/15 Details R’000 Original budget for 2014/15
Other Adjustments:
1. Unforeseeable and Unavoidable:
44 151
- General transport services rendered during the funeral of the former president
- Airport Company of South Africa: Ground handling support equipment for Mthatha Airport
42 021
2 131
Total Adjusted Budget

42. Expenditure for 2014/15 per Programme Per Programme Budget Expenditure
Variance %
R'000
Spent
1. Administration
13 400
97%
2. Integrated Transport Planning
74 974
100%
3. Rail Transport
4. Road Transport
( )
102%
5. Civil Aviation
6. Maritime Transport
99 623
2 119
98%
7. Public Transport
11,195,677
894
TOTAL
( )
101%
Note: The over expenditure of Road Transport of R million was declared
as unauthorised expenditure.

43. per Economic Classification
Expenditure for 2014/15
per Economic Classification
Per Economic Classification
Budget
Expenditure
Variance %
R'000
Spent
Compensation of Employees
797
100%
Goods and Services
( )
139%
Provinces and Municipalities
Departmental Agencies and Accounts
(79 475)
101%
Universities and Technikons
10 790
7 509
3 281
70%
Foreign Governments and International Organisations
10 082
8 783
1 299
87%
Public Corporations and Private Enterprises
Non-profit Institutions
20 715
19 808
907
96%
Households 16
Gifts and donations
Buildings and fixed structures
Machinery and Equipment
9 997
Payment for financial assets
260
( 260)
TOTAL
( )

44. Compensa-tion of employees
Summary of Virements after Adjusted Budget
Programme
Compensa-tion of employees
Goods and services
House-holds
Total
Administration
(17 000)
(16 990)
(33 990)
Integrated Transport Planning
(2 782)
(3 428)
(6 210)
Rail Transport
950
Road Transport
Civil Aviation
10 564
Maritime Transport
(2 321)
(6 526)
(8 847)
Public Transport
( 166)
(3 589)
( )
( )
(22 269)

45. Under / (Over) Expenditure per Programme and Classification
Programme (Amounts in R’000)
Classification 1 2 3 4 5 6 7
Total
Compensation
797
Goods & Services
9 338
( )
( 424)
1 278
( )
Transfers
3 454 16
(79 648)
458
841
907
(73 972)
Capital
Fin transactions
( 189)
( 16)
( 1)
( 7)
( 34)
( 13)
( 259)
Totals
13 400
( )
2 119
894
( )
Major under / over expenditure:
P1: Underspent R9.3 million on goods and services because the use of consultants were reduced. R3.3 million was not transferred to the higher education institutions and R0.8 million was underspent on compensation of employees.
P4: Over spent R313 million on eNaTIS, and R83 million on transfers to the Road Traffic Management Corporations(RTMC) on transfers that were not paid in 2013/14 financial year. Under spent R3.8 million on the transfer payment to the Road Traffic Infringements Agency (RTIA) because it was claimed late.
P6: Under spent on goods and services by R1.3 million because a number of projects were not undertaken and R0.8 million was under spent on foreign membership fees that were not claimed during the year.
P7: Under spent by R0.9 million because the recipient under claimed a transfer payment.

46. Expenditure Breakdown for 2014/15
Total 99.65%

47. Expenditure Breakdown for 2014/15 (Continued)
Total 0.35%

48. Expenditure Breakdown for 2014/15 (Continued)
Description
Amount (R'000)
PRASA
SANRAL
Provincial Road Maintenance Grant
Public Transport Infrastructure & Networks
Public Transport Operations
Goods and Services
Taxi recapitalisation
Buildings and fixed structures
50 271
Compensation of Employees
Other agencies
Rural Grant
75 223
Non Profit Institutions
19 808
Universities
7 509
Foreign memberships
8 783
Machinery and equipment
9 997
Financial transactions
260
Leave gratuity and sponsorships
1 674
Total expenditure

49. Rollovers to 2014/15 Details (R’000) Requested Approved
Programme 1: Administration
Transfer to Higher Education Institutions
3 281 -
Programme 4: Road Transport
Transfer to the Road Traffic Infringements Agency
3 825
Programme 5: Civil Aviation
Review of the National Airports Development Plan
665
Total
7 771

50. Abbreviations Abbreviation Meaning eNaTIS
Electronic National Traffic Information System
PRASA
Passenger Rail Agency of South Africa Ltd.
RSR
Railway Safety Regulator
SANRAL
South African National Roads Agency SOC Ltd.
RTMC
Road Traffic Management Corporation
CBRTA
Cross Border Road Transport Agency
RTIA
Road Traffic Infringements Agency
RAF
Road Accident Fund
ACSA
Airports Company of South Africa Ltd.
ATNS
Air Traffic and Navigation Services Company Ltd.
SACAA
South African Civil Aviation Authority
SAMSA
South African Maritime Safety Authority PR
Ports Regulator of South Africa
AARTO
Administrative Adjudication of Road Traffic Offences
ICAO
International Civil Aviation Organisation

51. Thank you