1. MR MAWETHU VILANA DEPUTY DIRECTOR-GENERAL: TRANSPORT
PRESENTATION ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT IN THE ROAD FREIGHT SECTOR 12 MARCH 2013
PORTFOLIO COMMITTEE ON TRANSPORT
MR MAWETHU VILANA DEPUTY DIRECTOR-GENERAL: TRANSPORT

2. CONTENTS Brief B-BBEE Regulatory Framework B-BBEE Scorecard & Scope
Challenges
Support Services
Monitoring & Evaluation 2 2 2

3. BRIEF
The invitation letter requested the Department to brief the members of the Portfolio Committee on:
“The Transport Sector B-BBEE Charter in reference to the Road Freight Sub-sector B-BBEE Code”;
“The support given by the Department to emerging trucking companies to protect them against exploitation”; and
“The monitoring of companies that contract BEE trucking companies” 3 3 3

4. B-BBEE REGULATORY FRAMEWORK (1)
B-BBEE Act
DTI Codes of Good Practice
TRANPORT SECTOR B-BBEE CODES
AVIATION
CODE
BUS CODE
FORWARDING & CLEARING
CODE
MARITIME
CODE
CODE
RAIL
ROAD FREIGHT
CODE
CODE
TAXI
SECTOR
PUBLIC
CODE

5. B-BBEE REGULATORY FRAMEWORK (2)
3 Years Public Sector
5 Years Transport Sector B-BBEE Codes
Codes of Good Practice
10 Years 5 5 5

6. B-BBEE REGULATORY FRAMEWORK (3)
The Transport Sector B-BBEE Sector Code which comprises 8 Sub-sector Codes inclusive of the Road Freight Sub-sector Code was gazetted in August 2009
Start Date of Implementation is August 2010 following the 1 year transitional period
We are in the 2 years and 7 months implementation phase
Developments with regard to the amendment of the B-BBEE Act & review of the Department of Trade & Industry Codes of Good Practice on B-BBEE are followed 6 6 6

7. B-BBEE SCORECARD ELEMENTS WEIGHTINGS Ownership 20-points
Management Control
10-points
Employment Equity
15-points
Skills Development
Preferential Procurement
Enterprise Development
Socio-Economic Development
5-points 7 7 7

8. SCOPE Supply Chain Management Companies Logistics Companies
Trucking Companies
Transport Management Companies
Transport Brokers
Associated Labour Brokers
Management Companies for Owner Driver
S.A registered Cross Boarder Operators
Parcel Delivery Services
Motor Ferry Companies
Cash in transit Companies 8 8 8

9. CHALLENGES Major challenges for emerging trucking companies
Lack of Finance
Lack of Long-term Contracts
Unscrupulous BrokersFOCUS
Lack of Skills & know-how
Of the trucking industry

10. SUPPORT SERVICES Business Opportunities Funding Skills Development
Eskom Contracts
Transnet Freight Rail & Transnet National Ports Authority
Contracts Mining Companies
Funding
IDC/ABSA funding Scheme
IDC/Daimler Chrysler Scheme
NEF – Working Capital
Skills Development
TETA skills development programme
SEDA business plan & mentoring programmes

11. SUPPORT SERVICES BEE Directorate
Provide advice, information & support to on Sub-sector Codes, Finance, Business Plans, Skills Development, Contracts, Owner Driver Schemes, etc.
DOT in partnership with DTI to deal with unfair BEE practices
Implement Sub-sector Codes
Monitoring & Evaluation
The support services by the Department help to protect emerging trucking companies against exploitation & fronting

12. MONITORING & EVALUATION
B-BBEE
SURVEY
This a survey will be conducted across the transport sector to get to know about the progress of BEE following the implementation of the gazetted BEE Charter
VERIFICATION
The Department as whole is being verified/audited so that we know how we are doing on implementing BEE
B-BBEE CHARTER
COUNCIL
We are in the process finalising the establishing a Council to create capacity to monitor implementation of BEE

13. CONCLUSION
Transport Sector B-BBEE Codes – The codes will be reviewed and aligned after the new B-BBEE Act & DTI Codes of Goods Practice on B-BBEE are finalised
Will continue to implement the sector code
Continuously educate, inform & support emerging truck companies 13 13 13

14. THANK YOU 14 14 14