1. Department of Transport
Second & Third Quarter Performance Information Report
2014/15 1

2. Performance Trend and Comparative Analysis Financial Information
Contents
Background
Key Achievements: Q2 & Q3
Noted Challenges: Q2 & Q3
Performance Trend and Comparative Analysis
Financial Information 2

3. Background
Report focuses on the progress made with the implementation of programmes & projects in the periods covering 01 July 2014 – 30 September 2014 and 01 October 2014 – 31 December 2014.
Focus was on optimal performance of deliverables in terms of the MTEF 2014/15 – 2016/17.
Report in compliance with relevant statutory requirements.

4. Non- Financial
Performance
Information

5. Key Achievements Q2 & Q3 Programme 1: Administration
DoT Communication Strategy and the Transport Month plan developed and presented to Transport Communicators and MINMEC respectively.
Merchant Shipping Bill submitted to National Assembly and NCOP.
26 vacant posts filled and 38 appointments processed in the two quarters.

6. Notable Challenges to be Prioritised for Remedial Action
Programme 1: Administration
The draft International Relations Strategy was only developed in Q2 due to delays in internal processes. Stakeholder consultations were prolonged as a result.
Corrective measures: Incorporation of stakeholder inputs will be finalised in Quarter 4 and the Strategy will be consolidated and submitted to EXCO as targeted.
The review of the Internal Audit Charter was delayed in Quarter 2 by internal consultative processes.
Corrective measures: Internal audit policies and methodologies were reviewed in November 2014.

7. Key Achievements Q2 & Q3 Programme 2: Integrated Transport Planning
Field surveys on the Rural Accessibility / Multi-deprivation Index completed in 8 provinces.
Draft 4 of the STER Bill produced - informed by stakeholder inputs from consultations with SANRAL, DPE, TNPA, TPT, Transnet Group and TFR. Bill subsequently submitted to Minister for approval.
BBBEE Charter Council launched in December Business plan finalised and submitted to the Minister for approval.
Regional Corridor Strategy - Desktop review report (current reality of regional corridors) and benchmark exercise (international best practice and key performance indicators) were submitted as per project plan on 24 November 2014.

8. Notable Challenges to be Prioritised for Remedial Action
Programme 2: Integrated Transport Planning
Consultations with PICC on NATMAP 2050 lagging behind.
Corrective measures: Consultations will be prioritised for Q4.
The Funding strategy for the Durban-Free State-Gauteng Logistics and Industrial Corridor not yet developed.
Corrective measures: Strategy will be developed in Q4 as targeted.
Reviewed National Freight Logistics Strategy lagging behind.
Corrective measures: Process will be fast-tracked in Quarter 4.
Stakeholder consultations on the Energy Consumption Reduction Strategy lagging behind.
Corrective measures: Consultations will be prioritised in Quarter 4 and report will be presented to EXCO as targeted.

9. Key Achievements Q2 & Q3 Programme 3: Rail Transport
Benchmarking of guidelines for submission of Rail Economic Regulatory information completed and MoU signed between DoT and DPE. Gap analysis conducted on Rail Economic Regulatory information.
Situational analysis and preliminary Rail Safety Regulation gap analysis conducted.
Strategic Branchlines defined and identified.

10. Notable Challenges to be Prioritised for Remedial Action
Programme 3: Rail Transport
Development of the draft White Paper on the National Rail Transport Policy delayed by Cluster administration processes .
Corrective measures: Draft White Paper will be developed and consolidated as targeted in Q4.

11. Key Achievements Q2 & Q3 Programme 4: Road Transport
Maintenance and rehabilitation of roads monitored in provinces in line with PRMG budget.
and FTEs created in Quarter 2 and 3 respectively whilst 16 SMMEs supported through implementation of PRMG projects during Quarter 3.
Needs analysis and stakeholder consultations with the Road Traffic Management Corporation (RTMC), Road Traffic Infringement Agency (RTIA), Cross-Border Road Transport Agency (CBRTA) and the Gauteng Province conducted on the Road Safety Policy.
DoT participated in the implementation of 365 Road Safety Programme in conjunction with other road transport entities.

12. Notable Challenges to be Prioritised for Remedial Action
Programme 4: Road Transport
Unfavourable weather conditions and delays to project commencements impacted on the targets for rehabilitation, resealing and regravelling for Quarter 2.
Corrective measures: Backlogs are continuously addressed through revision of work programmes and fast tracking of implementation.

13. Key Achievements Q2 & Q3 Programme 5: Civil Aviation
Draft Amendment Bills for the ACSA Act and the ATNS Act gazetted and comments incorporated.
The celebrations of International Civil Aviation Day (ICAD) 2014 hosted at the Kimberley Airport, Northern Cape, on the 05th – 07th December 2014.
129 schools and learners in three (3) provinces (Gauteng, Eastern Cape and Northern Cape) exposed to aviation related career events.
Air services negotiations held between RSA and Gabon. RSA signed two MoUs with South Sudan and Republic of Philippines respectively to establish air services arrangements.
29 aircraft accident investigation reports released and 8 safety recommendations generated.

14. Notable Challenges to be Prioritised for Remedial Action
Programme 5: Civil Aviation
As at end of Q3, only three (3) bilateral air services negotiations against Gabon, South Sudan and Philippines had taken place against a target four (4) for the period under review.
Corrective measures: Two more negotiations will be prioritised for Quarter 4.

15. Key Achievements Q2 & Q3 Programme 6: Maritime Transport
Draft Maritime Transport Policy developed and circulated for internal consultation. Broader consultations will follow in Quarter 4.
Cape Town Agreement (2012) on the implementation of the Torremolinos Protocol (1993) presented to ICTS Cabinet Meeting for parliamentary approval.
MARPOL IV & VI Conventions presented to National Council of Provinces (NCOP) and the Parliamentary Portfolio Committee on Transport (PCOT).

16. Notable Challenges to be Prioritised for Remedial Action
Programme 6: Maritime Transport
Amended Maritime Security Regulations not yet approved due to internal delays.
Corrective measures: Approval and publishing of amended regulations to be prioritised in Quarter 4.
African Maritime Charter not yet approved due to outstanding ICTS Cluster presentation.
Corrective measures: Charter to be presented to ICTS Cluster and submitted to Minister in Quarter 4.

17. Key Achievements Q2 & Q3 Programme 7: Public Transport
National Learner Transport Policy approved by Cabinet in October 2014.
National Land Transport Amendment Bill approved by NEDLAC in November 2014.
Integrated Public Transport Networks - Bilateral project, technical review and state of readiness meetings held with Msunduzi, Tshwane, George, eThekwini, Nelson Mandela, Ekurhuleni and Cape Town. DoRA compliance and project site visits conducted with CT, JHB, NMB, Tshwane, Ekurhuleni, George, Rustenburg, eThekwini, Mangaung and Mbombela.

18. Notable Challenges to be Prioritised for Remedial Action
Programme 7: Public Transport
Taxi Recapitalisation Programme - low uptake by industry.
Corrective measures: Projections for Quarter 3 & Quarter 4 revised (approved by EA)
IPTN plans in two (2) district municipalities – One district (Sekhukhune) withdrawn.
Corrective measures: Plan will be developed for Bojanala only as per the signed MoA.

19. Remedial Actions to Address Noted Challenges
Quarter 2 and 3 performance reports and noted challenges presented and discussed at EXCO.
EXCO Resolutions:
Action plans to address noted challenges developed and presented to EXCO by respective Programme Managers.
EXCO to monitor implementation of action plans on a weekly and monthly basis.

20. Performance Trend Analysis Q1 – Q3: DoT Overall

21. DoT Comparative Analysis: Performance per programme per Quarter
1. Administration
84%
79%
76%
2. ITP
75%
58%
69%
3. Rail Transport
100%
60%
86%
4. Road Transport
80%
50%
90%
5. Civil Aviation
92%
6. Maritime Transport
78%
56%
7. Public Transport
85%
8. Dept. of Transport
83%
70%

22. Financial
Performance
Information

23. Financial Information: Expenditure per Programme
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
1. Administration
42%
61%
2. Integrated Transport Planning
81 184
29 117
47 808
52 067
36%
33 376
59%
3. Rail Transport
68%
85%
4. Road Transport
52%
81%
5. Civil Aviation
69 151
81 251
46%
30 554
80%
6. Maritime Transport
43 285
67 685
67 304
39%
42 904
7. Public Transport
37%
54%
Total Department
53%
76%
The Department has a total allocated budget of R billion. To date of reporting the department has spent R billion or 76% of the allocated budget. 23

24. Financial Information: Expenditure per Economic Classification
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
43%
67%
Goods and Services
66%
(5 146)
101%
Transfers & Subsidies
53%
75%
Machinery and Equipment
8 402
2 640
3 801
5 762
31%
4 601
45%
Payment for financial assets 11
103
(11) 0%
(103)
Total Department
76%
Goods and Services: Overspending due to eNatis and repatriation of bodies.
Transfers and Subsidies: Higher Education Institutions, Rural Roads Asset Management Systems Grant, Taxi Recapitalisation, Public Transport infrastructure Grant and Public Transport Network Grant.
Machinery and Equipment: Underspending as a result of a moratorium to purchase furniture due to possible relocation. 24

25. Financial Information:
Budget vs Expenditure 25

26. Financial Information:
Expenditure per Economic Classification - Programme 1 - Administration
Per Economic Classification
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
72 815
99 991
42%
59 157
66%
Goods and Services
44%
98 025
58%
Transfers & Subsidies
12 102
2 514
5 560
9 588
21%
6 542
46%
Machinery and Equipment
5 996
1 566
2 117
4 430
26%
3 879
35%
Payment for financial assets 92
(92) 0%
Total
61%
Goods and Services: Underspending due to the lag between service delivery, invoicing and payment.
Transfers & Subsidies: Underspending due to delays in the payment of the three institutions that are under University of KwaZulu-Natal.
Machinery and Equipment: Underspending as a result of a moratorium to purchase furniture due to possible relocation. 26

27. Financial Information: Expenditure 2nd Quarter Expenditure 3rd Quarter
Expenditure per Economic Classification - Programme 2 – Integrated Transport Planning
Per Economic Classification
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
39 382
17 442
26 838
21 940
44%
12 544
68%
Goods and Services
41 573
11 311
20 412
30 262
27%
21 161
49%
Transfers & Subsidies
208
(208) 0%
Machinery and Equipment
229
145
339 84
63%
(110)
148%
Payment for financial assets 11
(11)
Total
81 184
29 117
47 808
52 067
36%
33 376
59%
Goods and Services: Underspending due to the lag between service delivery, invoicing and payment.
Machinery and Equipment: Overspending due to purchases of new furniture and new laptops for appointed employees. 27

28. Financial Information:
Expenditure per Economic Classification - Programme 3 – Rail Transport
Per Economic Classification 
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
20 270
9 467
14 793
10 803
47%
5 477
73%
Goods and Services
15 909
3 475
5 805
12 434
22%
10 104
36%
Transfers & Subsidies
68%
85%
Machinery and Equipment
573
239
328
334
42%
245
57%
Payment for financial assets - 0%
Total
Goods and Services: Underspending due to the lag between service delivery, invoicing and payment.
Machinery and Equipment:. Underspending as a result of moratorium to purchase furniture due to possible relocation. 28

29. Financial Information:
Expenditure per Economic Classification - Programme 4 – Road Transport
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
50 599
19 799
30 705
30 800
39%
19 894
61%
Goods and Services
49 058
( )
357%
( )
539%
Transfers & Subsidies
51%
80%
Machinery and Equipment
654
301
387
353
46%
267
59%
Total
52%
81%
Goods and Services: Overspending due to eNatis as a results of court order.
Transfers and Subsidies: Underspending on Rural Roads Asset Management Systems Grant.
Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 29

30. Financial Information:
Expenditure per Economic Classification - Programme 5 – Civil Aviation
Per Economic Classification 
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
36 060
15 209
24 015
20 851
42%
12 045
67%
Goods and Services
77 015
31 137
65 503
45 878
40%
11 512
85%
Transfers & Subsidies
36 900
22 691
30 024
14 209
61%
6 876
81%
Machinery and Equipment
427
114
306
313
27%
121
72%
Total
69 151
81 251
46%
30 554
80%
Goods and Services: Overspending due to repatriation of bodies.
Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 30

31. Financial Information: Expenditure 2nd Quarter Expenditure 3rd Quarter
Expenditure per Economic Classification - Programme 6 – Maritime Transport
Per Economic Classification 
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
22 123
9 475
14 326
12 648
43%
7 797
65%
Goods and Services
69 651
24 956
40 253
44 695
36%
29 398
58%
Transfers & Subsidies
18 468
8 704
12 917
9 764
47%
5 551
70%
Machinery and Equipment
347
150
189
197
158
54%
Total
43 285
67 685
67 304
39%
42 904
61%
Goods and Services: Underspending due to the lag between service delivery, invoicing and payment.
Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 31

32. Financial Information: Expenditure 2nd Quarter Expenditure 3rd Quarter
Expenditure per Economic Classification - Programme 7 – Public Transport
Per Economic Classification 
Budget
Expenditure 2nd Quarter
Expenditure 3rd Quarter
Variance 2nd Quarter
% Spent
Variance 3rd Quarter
R'000
Compensation of Employees
41 641
19 856
30 415
21 785
48%
11 226
73%
Goods and Services
64 916
96 442
71 472
39 946
71%
Transfers & Subsidies
37%
54%
Machinery and Equipment
176
125
135 51 41
77%
Total
( )
Goods and Services: Underspending due to the lag between service delivery, invoicing and payment.
Transfers and Subsidies: Underspending on Public Transport Infrastructure Grant by R894 million and Public Transport Network Operation Grant by R 35million; payments withheld due to consistent underspending and non compliance in other municipalities. Taxi Recapitalisation underspent due to less taxis scrapped than anticipated.
Machinery and Equipment: Underspending as a result of moratorium to purchase furniture due to possible relocation. 32

33. Financial Information:
Transfer Payments
Transfer Payments (R'000)
Budget
Expenditure
Available
% Spent
Conditional Grants:
Provincial Roads Maintenance
86%
Public Transport Operations
77%
Public Transport Infrastructure and Systems
34%
Public Transport Network Operations
57%
Rural Road Asset Management
75 223
69 819
5 404
93%
Public Corporatios:
Passenger Rail Agency of South Africa (PRASA)
85%
Departmental Agencies & Accounts:
S.A. National Roads Agency
75%
Road Traffic Management Corporation
44 002
Railway Safety Regulator
51 504
100%
S.A. Civil Aviation Authority
19 239
14 427
4 812
Ports Regulator of South Africa
16 852
12 639
4 213
Road Traffic Infringements Agency
15 300
11 475
3 825
Maritime Rescue Co-ordination Centre
6 887
5 166
1 721
Transport SETA
1151
1 151 0% 33

34. Financial Information:
Transfer Payments
Transfer Payments (R'000)
Budget
Expenditure
Available
% Spent
Other:
Taxi scrapping
32%
Non Profit Institutions
2 308 -
100%
South African National Taxi Council
18 407
14 500
3 907
79%
Higher Education Institutions
10 790
5 366
5 424
50%
International Organisations
10 082
8 287
1 795
82%
Leave pay and donations
161
516
(355)
320%
Total
76% 34

35. Financial Information:
PTOG & PRMG 35

36. Financial Information: Provincial Road Maintenance Grant (PRMG)
Budget
Transfer
Spent by Province
Variance %
R'000 %
Eastern Cape
87%
Free State
85%
Gauteng
KwaZulu-Natal
86%
Limpopo
Mpumalanga
North West
Northern Cape
Western Cape
Overall Total 36

37. Financial Information: Public Transport Operations Grant (PTOG)
Budget
Transfer
Spent by Province
Variance %
R'000 %
Eastern Cape
81%
Free State
75%
Gauteng
77%
KwaZulu-Natal
79%
Limpopo
Mpumalanga
76%
North West
90 318
32 507
53 985
36%
Northern Cape
43 937
67 018
153%
Western Cape
78%
Total 37

38. Financial Information:
PTNOG & PTIS 38

39. Financial Information:
Public Transport Infrastructure System Grant (PTISG)
PUBLIC TRANSPORT INFRASTRUCTURE AND SYSTEMS GRANT
Budget
Transfer
Spent by Municipality
Variance %
R'000 %
EC: Nelson Mandela Bay
50 000
77 455
50%
FS: Mangaung
30 000
5 000
17%
GT: Ekurhuleni
99 368
20%
GT: City of Johannesburg
24%
GT: City of Tshwane
56%
KZN: eThekwini
15%
KZN: Msunduzi
26 510
LP: Polokwane
25 582
25%
MP: Mbombela
56 634
26%
NW: Rusternburg
58%
WC: George
61 805
20 000
15 939
32%
WC:City of Cape Town
28%
Overall Total
34% 39

40. Financial Information:
Public Transport Network Operations Grant (PTNOG)
PUBLIC TRANSPORT NETWORK OPERATIONS GRANT
Budget
Transfer
Spent by Municipality
Variance %
R'000 %
Nelson Mandela Bay
62 500
54 647
48%
Johannesburg
75 473
49%
Tshwane
54 000
71 935
39%
eThekwini
55 000
13 602
46%
Cape Town
66 255
George
60 449
19 950
3 457
33%
Overall Total 40

41. Thank you 41