1. Presentation of the DoT
Annual Performance Plan (APP) 2018/19
Presentation to the Select Committee on Business and Economic Development (NCOP)
18 April 2018 1

2. Contents DoT Alignment to MTSF
Revisions made to the DoT Strategic Plan (2015 – 2020)
DoT APP 2018/19 Medium Term Targets
DoT Risk Governance
AGSA Findings from Annual Report 2016/17 and Action Plan (to Address AGSA Findings)
Key Challenges
Budget Summary

3. DoT Alignment to the MTSF
The key initiatives of the Department over the Medium Term Strategic Framework (as appearing in the Delivery Agreement between the Minister and the President) are as follows:
Outcome 4: Decent Employment through inclusive economic growth
Ensure monitoring of key off-takes by end-users on the infrastructure programme
Outcome 6: An efficient, competitive and responsive economic infrastructure
Sub-Outcome 1: Regulation, Funding and Investment improved
Establish a Single Transport Economic Regulator (STER)
Develop a Private Sector Participation (PSP) Framework for ports and rail, removing barriers to entry for private investments and operations within the Policy imperatives and with an analysis of the implication of tariffs

4. DoT Alignment to the MTSF
Outcome 6: An efficient, competitive and responsive economic infrastructure
Sub-Outcome 3: Maintenance, strategic expansion, operational efficiency, capacity and competitiveness of sector logistics and transport infrastructure ensured
Improve national transport planning to develop long-term plans for transport – synchronize spatial planning and align infrastructure investment for all sphere of government
Ensure development and approval of Integrated Transport Plan
Develop and implement plan to improve market share of containers on rail vs. road (to move rail-friendly cargo/freight from road to rail)
Improve and preserve national, provincial and local road infrastructure
Strengthen road traffic management
Improve public transport
Strengthen institutional arrangements for public transport

5. DoT Alignment to the MTSF
Outcome 6: An efficient, competitive and responsive economic infrastructure
Sub-Outcome 6: Coordination, planning, integration and monitoring implementation of strategic integrated projects in the National Infrastructure Plan
SIP 1 – Unlocking the Northern Mineral Belt
SIP 2 – Durban-Free State-Gauteng Logistics and Industrial Corridor
SIP 3 – South Eastern Node and Corridor Development
SIP 4 – Unlocking economic opportunities in the North West Province
SIP 7 – Integrated Urban Space and Public Transport Programme
SIP 17 – Regional Integration for African Cooperation and Development

6. DoT Alignment to the MTSF
Outcome 7: Comprehensive Rutal Development and Land Reform
Sub-Outcome 5: Increased access to quality infrastructure and functional services, particularly in education, healthcare and public transport in rural areas
Improved transport infrastructure and public transport in rural areas
Implement Access Road Development Plan (ARDP) to improve rural road infrastructure
Implement Integrated Public Transport Network (IPTN) Strategy in District Municipalities

7. DoT Alignment to the MTSF
Outcome 10: Protect and enhance environmental assets and natural resources
Sub-Outcome 2: An effective climate change mitigation and adaptation response
Develop strategic policy and regulatory frameworks and programmes to promote a low carbon economy
Implement the Green Transport Strategy

8. DoT Vision and Mission Vision
“Transport, the Heartbeat of Economic Growth and Social Development”
Mission
“Lead development of efficient integrated transport systems by creating a framework of sustainable policies, regulations and implementable models to support government strategies for economic and social development”

9. DoT Values Values Maintain fairness and equity in all our operations
Strive for quality and affordable transport for all
Stimulate innovation in the transport sector
Ensure transparency, accountability and monitoring of all operations; and
Ensure sustainability, financial affordability, accessibility as well as upholding of the Batho Pele principles

10. DoT Strategic Oriented-Outcome Goals
SG 1: An efficient and integrated infrastructure network that serves as catalyst for social and economic development
SG 2: A transport sector that is safe and secure
SG 3: Improved rural access and mobility
SG 4: Improved public transport services
SG 5: Increased sector contribution to job creation
SG 6: Increased sector contribution to environmental protection

11. DoT Delivery Programmes
Programme 1: Administration
Programme 2: Integrated Transport Planning
Programme 3: Rail Transport
Programme 4: Road Transport
Programme 5: Civil Aviation
Programme 6: Maritime Transport
Programme 7: Public Transport

12. REVISIONS TO THE DoT STRATEGIC PLAN 2015 - 2020

13. REVISIONS TO THE STRATEGIC PLAN: INTEGRATED TRANSPORT PLANNING
MTSF Target
Status
Comment / Revised Target
Review of the White Paper on the National Transport Policy
Not Achieved
Submission of the White Paper on the National Transport Policy to Cabinet has been moved from 2017/18 to 2018/19.
Implementation of the Road Freight Strategy
Achieved
Development of the Road Freight Strategy Implementation Plan is envisaged for March 2018 and implementation of the Strategy will be monitored through internal business processes.
Development of the Regional Transport Market Access Strategy
Development and implementation of the Regional Transport Market Access Strategy will be coordinated through internal business processes
Development of the Road Tariff Determination Framework
Submission of the Road Tariff Determination Framework to Cabinet is envisaged for March Once approved, implementation of the Framework will be monitored through internal business processes.

14. REVISIONS TO THE STRATEGIC PLAN: RAIL TRANSPORT
MTSF Target
Status
Comment / Revised Target
Development of the White Paper on the National Rail Policy
Achieved
Submission of the White Paper on the National Rail Policy to Cabinet is envisaged for March Once approved, implementation of the Policy will be monitored through internal business processes
Development of the National Rail Strategy
Not Achieved
Development of the draft National Rail Strategy moved from 2018/19 to 2019/20
Submission of the National Rail Strategy to Cabinet moved from 2019/20 to 2020/21
Establishment of Interim Rail Economic Regulatory Capacity
Implementation of Economic Regulations for the Interim Rail Economic Regulatory Capacity has been moved from 2018/19 to 2019/20
In 2018/19, research on proposed access arrangements and pricing approaches will be prioritised.

15. REVISIONS TO THE STRATEGIC PLAN: CIVIL AVIATION
MTSF Target
Status
Comment / Revised Target
Amendment of the Airports Company Act
Achieved
Approval of the Regulations for the Airports Company Amendment Act has been moved from 2017/18 to 2018/19
Implementation of the Regulations for the Airports Company Amendment Act has been moved from 2018/19 to resume in 2019/20
Amendment of the ATNS Act
Approval of the Regulations for the ATNS Amendment Act has been moved from 2017/18 to 2018/19
Implementation of the Regulations for the ATNS Amendment Act has been moved from 2018/19 to resume in 2019/20

16. REVISIONS TO THE STRATEGIC PLAN: MARITIME TRANSPORT
MTSF Target
Status
Comment / Revised Target
Implementation of the Comprehensive Maritime Transport Policy
Achieved
Development of the Maritime Transport Strategy is envisaged for March 2018 and implementation of the Policy and Strategy will be monitored through internal business processes
Overhaul of the Merchant Shipping Act
Not Achieved
Submission of the Merchant Shipping Bill to Cabinet has been moved from 2017/18 to 2018/19
Submission of the Merchant Shipping Bill to Parliament has been moved from 2018/19 to 2019/20

17. REVISIONS TO THE STRATEGIC PLAN: PUBLIC TRANSPORT
MTSF Target
Status
Comment / Revised Target
Development of the Integrated Public Transport Turnaround Plan
Not Achieved
Implementation of the Integrated Public Transport Turnaround Plan has been moved from 2018/19 to resume in 2019/20
In 2018/19, development of the Public Transport Subsidy Policy will be prioritised
The two medium term targets stated above will be monitored through internal business processes

18. DOT ANNUAL PERFORMANCE PLAN 2018/19

19. DoT TARGETS TOTAL FOR 2018/19 Programme Number of Targets
Administration 5
Integrated Transport Planning 4
Rail Transport
Road Transport 6
Civil Aviation
Maritime Transport 3
Public Transport
Total 31

20. APP 2018/19 KEY INTERVENTIONS: ADMINISTRATION
SO 1.3 To promote equality and equity within the sector through the coordination of empowerment initiatives for previously disadvantaged groups (Women, Persons with Disabilities, Youth and Children)
Monitor implementation of the sector socio-economic empowerment programmes (DoT, SOEs and Provincial Departments of Transport)
Conduct ten (10) community outreach campaigns on Gender, Persons with Disability, Youth and Children
May Children’s Month,
June Youth Month,
July Men’s Month,
August Women’s Month,
September Casual Day,
November Disability Rights Awareness Month,
November/December Sixteen (16) Days Activism for No Violence against Women and Children

21. APP 2018/19 KEY INTERVENTIONS: ADMINISTRATION
SO 7.1 To coordinate the function of human resource management and development in support of DoT programmes
Compile a monitoring report on the implementation of the 2017/18 Human Resource Development Framework
Develop, ensure approval and monitor implementation of the 2018/19 Human Resource Development Plan
Training of Staff, issuing of bursaries to internal staff and external stakeholders, career exhibitions, etc.

22. APP 2018/19 KEY INTERVENTIONS: ADMINISTRATION
SO 7.2 To render financial administration, supply chain management, risk management, internal audit, budgeting and management accounting services to the DoT
Develop and monitor implementation of action plans to address audit findings raised by Internal Audit and Auditor-General
Monitor implementation of the Departmental Risk Strategy
Review and quarterly assessment of strategic and operational risks

23. APP 2018/19 KEY INTERVENTIONS: INTEGRATED TRANSPORT PLANNING
SO 1.1 To formulate and implement national transport macro-planning legislation, policies and strategies
Monitor implementation of ten (10) NATMAP priority pilot projects
Parys Intermodal Transport Facility, Upgrade of Route R31 (NC), National Station Upgrade Programme (Phillipi Station), National Road Safety Strategy, Upgrade of MR177 (Stellenbosch Arterial Phase), R573 Moloto Road Phase I, Multimodal Legislative Framework, Green Transport Strategy, OR Tambo International Airport (Midfield Passenger Terminal) and Development of Integrated Transport Networks in two (2) District Municipalities (Vhembe and Nkangala)
Conduct the socio-economic impact assessment on the Revised White Paper on the National Transport Policy and submit the White Paper for Cabinet approval

24. APP 2018/19 KEY INTERVENTIONS: INTEGRATED TRANSPORT PLANNING
SO 1.3 To standardise economic regulations and enhance participation and inclusion of key stakeholders in mainstream sector interventions
Process the draft STER Bill through Cabinet and Parliament for promulgation
SO 6.1 To develop and implement strategies aimed at reducing Greenhouse Gas (GHG) emissions in the Transport sector
Conduct public awareness campaigns on the Green Transport Strategy in nine (9) provinces

25. APP 2018/19 KEY INTERVENTIONS: RAIL TRANSPORT
SO 1.5 To develop and implement interventions aimed at improving rail transport operations
Conduct stakeholder consultations on the draft National Rail Bill and process the Bill through the ESEID Cluster and Cabinet
Conduct research on proposed access arrangements and pricing approaches for the Interim Rail Economic Regulatory Capacity
Develop an implementation plan for the Private Sector Participation (PSP) Framework

26. APP 2018/19 KEY INTERVENTIONS: RAIL TRANSPORT
SO 2.1 To develop and implement interventions aimed at enhancing safety and security of rail transport
Update the draft National Railway Safety Bill and process the Bill through NEDLAC, FOSAD Cluster and Cabinet for approval

27. APP 2018/19 KEY INTERVENTIONS: ROAD TRANSPORT
SO 1.4 To develop and monitor implementation of policies aimed at ensuring construction and maintenance of road transport infrastructure
Process the Roads Policy through the ESEID Cluster and Cabinet for approval
Monitor implementation of the S’hamba Sonke Programme (inspections and bilateral consultations)
Process the Access Road Development Plan through Cabinet for approval

28. APP 2018/19 KEY INTERVENTIONS: ROAD TRANSPORT
SO 2.1 To develop and implement interventions aimed at enhancing safety and security of road transport
Conduct stakeholder engagement on legislative inputs and proposals and develop a draft Bill for founding legislations of road entities
Monitor implementation of the National Road Safety Strategy
Easter Road Safety Programme, UN Global Road Safety Week, Youth Road Safety Summit, Pedestrian and Passenger Visibility Awareness, Driver Safety and Education Programmes, Festive Season Awareness, Scholar safet Programme, etc
Conduct stakeholder engagements on the draft Anti-Fraud and Corruption Strategy
South African Police Services (SAPS), National Prosecuting Authority (NPA), South African Insurance Crime Bureau (SAICB), Business Against Crime South Africa (BACSA)

29. APP 2018/19 KEY INTERVENTIONS: CIVIL AVIATION
SO 1.5 To develop and implement interventions aimed at improving operations in the Civil Aviation sector
Develop and ensure approval of regulations for the Airports Company and ATNS Acts
Process the Air Services Bill through the ESEID Cluster, Cabinet Committees and Cabinet

30. APP 2018/19 KEY INTERVENTIONS: CIVIL AVIATION
SO 2.1 To develop and implement interventions aimed at enhancing safety and security of civil aviation
Process the Civil Aviation Amendment Bill through Parliament for promulgation
SO 5.3 To develop and implement interventions aimed at creating jobs and a conjucive environment for employment opportunities in Civil Aviation
Develop draft curriculum on civil aviation in line with the National Aviation Transformation Strategy

31. APP 2018/19 KEY INTERVENTIONS: MARITIME TRANSPORT
SO 1.5 To develop and implement interventions aimed at improving maritime transport operations
Conduct audit of Operation Phakisa projects at seven (7) commercial ports
SO 2.1 To develop and implement interventions aimed at enhancing safety and security of maritime transport
Process the Merchant Shipping Bill through the ESEID Cluster and Cabinet
Develop and implement action plans for the Logistics, Content and Communication work streams in preparation for hosting the 2020 World Maritime Day

32. APP 2018/19 KEY INTERVENTIONS: PUBLIC TRANSPORT
SO 3.1 To develop and implement policies and strategies aimed at improving provision of quality public transport infrastructure and services in rural areas
Develop detailed Integrated Public Transport Network (IPTN) Plans in two district municipalities (Vhembe and Nkangala)
SO 4.1 To facilitate and promote the provision of sustainable public transport through the use of safe and compliant vehicles
Conduct cost calculations on the new TRP scrapping allowance and develop requirements for inclusion of scholar transport and cross border transport in the TRP

33. APP 2018/19 KEY INTERVENTIONS: PUBLIC TRANSPORT
SO 4.2 To facilitate the development and implementation of Integrated Public Transport Networks in identified cities
Monitor constructions and operation of IPTNs in thirteen (13) cities
SO 4.3 To transform land transport systems through the development and implementation of legislation, institutional building and planning
Process the Transport Appeal Tribunal (TAT) Amendment Bill through NEDLAC, DPME (SEIAS), FOSAD Cluster and Cabinet

34. Risk Governance (Annexure 2)
The department has put in place systems to identify and manage risks that have the potential to impact (positively or negatively) on the achievement of the Strategic Goal-Oriented Outcomes and Objectives.
The following structures have been put in place:
EXCO
Plays its risk oversight by ensuring that the department identifies risks within the operation of the department and the reporting Transport Public Entities, and that such risks are adequately addressed or mitigated
2. Risk Management Committee
This structure assists the Accounting Officer with his risk oversight by reviewing the system of risk management such as risk management objectives,Strategy,policy and monitor the process at strategic, management and operational levels.

35. Risk Governance… 3. Audit Committee
This structure is an independent structure that plays an oversight by ensuring that the department appropriately address the risk areas relating to;
financial reporting including fraud and corruption
IT risks as they relate to financial reporting.
4. Risk Management Directorate
The department has a dedicated Risk Management Directorate that facilitates and coordinate all the risk management activities in the department, it also assists the Accounting Officer to execute his statutory mandate with regard to risk management. This directorate has a direct reporting line to the Accounting Officer.

36. Key Risk Profile: Graphical Summary
Narration
Action Plans
Inherent Risk Exposure
100% of risks were rated high
Residual Risk Exposure
62% of risks were rated high and are on an unacceptable level of residual risk rating, this requires EXCO’s intervention and monitoring;
30% of risks were rated medium still on an unacceptable level and requires immediate intervention from Programme Managers/project managers.
8% of risks were rated low, acceptable level of residual risk rating.
The department has put in place risk mitigation strategies to further reduce the residual risk exposure profile to an acceptable(low) level.
Regular risk monitoring and oversight is taking place Monthly, quarterly and annually, through the Risk Governance Structures

37. Inherent risks in a red bar, represent the product of impact and likelihood of risk occurring measured as risk exposure/ value.
Residual risks in a green bar, represent a product of the inherent risk and the perceived control effectiveness measured as a risk exposure/value.
The greater the gap between the inherent and residual risk the more effective the controls mitigating the risks are.
Management should concentrate on controlling high residual risks with low control effectiveness.
CONFIDENTIAL

38. Risk Categorization

39. Risk Relationships: DoT and PENo
Risk Description
Risk Category
Entities
Linkage to DoT Strategic Risk Register
Impact on DoT and NDP 1
Unreliable IT Systems/Networks
Lack of information system security
Technological and systems Risk
SACAA
ATNS
RTMC
ACSA
SR 4
Impact the DoT’s Strategy and Objectives (Non delivery on the transport mandate).
The National Development Plan objectives
(particularly negative impact on service delivery and infrastructure development)
South Africa’s economic growth and the broader
government’s objectives 2
Financial sustainability of entities: Inability to remain financially sustainable in the long term. Going concern status
Financial Risk
CBRTA
SANRAL
RSR
PRASA
RAF
SR 6 3
Non-compliance to statutory/regulatory requirements
Regulatory Compliance Risk
SAMSA
RTIA
SR 1 (a),(b) and ( c)

40. Risk Relationships: DoT and PENo
Risk Description
Risk Category
Entities
Linkage to DoT Strategic Risk Register
Impact on DoT and NDP 4
Cyber Security Threats
Data corruption, unreliable data caused by hacking, human errors and corruption/ Loss of data as a result of no backup systems
Information Security Risk
ATNS
RTIA
SR 4
Impact the DoT’s Strategy and Objectives (Non delivery on the transport mandate).
The National Development Plan objectives
(particularly negative impact on service delivery and infrastructure development)
South Africa’s economic growth and the broader
government’s objectives 5
Inadequate management of incidents of business interruptions
Business Continuity Management Risk
RSR
CBRTA
SR 3 6
Reputational damage, public allegations and/civil claims due to negative publicity particularly on social media
Reputational Risk
PRASA
ACSA
SR 10

41. AGSA Findings from Annual Report 2016/17 and the Action Plans (Annexure 1)

42. Key Challenges Key Challenge Proposed Interventions Funding
Mobilizing NT for more funding
Consolidating fragmented funding streams
Identifying alternative funding sources
Inherent dependencies on other spheres on government, other departments and agencies
More coordinated IGR processes
Building capacity at implementing spheres and agencies
More focused oversight capabilities

43. Public Entities Liquidity as at the end of the 3rd Quarter - 2017/18
Public Entity
Solvency Ratio
Current Ratio
Cash flow (R’000)
ACSA
2,88
1,95
R1,110,032
ATNS
9,28
5,99
R1,334,332
SACAA
4,03
3,16
R279,246
RAF
0,05
0,3
R2,203,717
SANRAL
3,30
1,26
R7,362,698
RTMC
3,46
2,36
R4,581
RTIA
171
163
R133,166
8. C-BRTA
0,36
0,33
R72,619
SAMSA
1,31
1,27
R57,387 PR
30,95
28,7
R15,436
11. RSR
3,80
2,37
R16,652
12. PRASA
0,99
3,17
R15,571,960 43

44. Budget Summary
Programme
Audited
Adjusted budget
Medium Term Estimates
R'000
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
1 Administration
2 Integrated Transport Planning
74 974
88 762
77 054
82 641
89 982
95 660
3 Rail Transport
4 Road Transport
5 Civil Aviation
6 Maritime Transport
99 623
7 Public Transport
Total
Direct Charge: Foreign International fees -
3 821
10 000
10 200
10 424
10 997
Over the medium term, the department plans to focus on improving mobility and access to social and economic activities by facilitating and creating an enabling environment for maintaining provincial and national road networks, modernising passenger rail infrastructure and improving services, and integrating public transport. Total expenditure is expected to increase at an average annual rate of 6.3 per cent over the medium term, from R59.8 billion in 2017/18 to R69.6 billion in 2020/21.

45. Budget Summary…
Economic Classification
Audited
Adjusted budget
Medium Term Estimates
R'000
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
Compensation of employees
Goods and services
Transfers and Subsidies
Payment for capital assets
260
6 679
22 240
Machinery and Equipment
34 984
10 512
9 548
7 931
4 743
5 000
5 275
TOTAL
Direct Charge: Foreign International fees
3 821
10 000
10 200
10 424
10 997
The department’s spending on goods and services, and compensation of employees, accounting for a projected 2 per cent of spending over the MTEF period, is largely driven by activities related to project management and programme support functions, monitoring and evaluation, grant management and oversight, and policy and legislative development and implementation. As a result, spending on items related to goods and services is expected to increase at an average annual rate of 6.3 per cent, from R663.8 million in 2017/18 to R798 million in 2020/21.

46. Compensation of Employees
Audited
Adjusted Budget
Medium term expenditure estimates
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R'000
Baseline allocation for 2017/18
Additional allocation:
6 800
26 750
28 821
31 020
TOTAL
The department’s budget for compensation of employees has been capped at R496.7 million in 2018/19, R534.7 million in 2019/20 and R574.8 million in 2020/21 – reflecting an increase at an average annual rate of 10.1 per cent over the medium term.

47. Transfers and Subsidies
Audited
Adjusted Budget
Medium Term Estimates
R'000
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
Conditional Grants:
Provincial Roads Maintenance
Public Transport Operations
Public Transport Network
Rural Road Asset Management
75 223
96 842
Public Corporations:
Passenger Rail Agency of South Africa (PRASA)
Departmental Agencies & Accounts:
S.A. National Roads Agency
Road Traffic Management Corporation
Railway Safety Regulator
51 504
53 379
65 987
49 564
63 018
66 547
70 207
ATNS
52 160
S.A. Civil Aviation Authority
19 239
20 124
21 191
22 251
23 542
24 860
26 227
Ports Regulator of South Africa
16 852
27 627
28 561
22 489
25 619
31 774
33 522
Road Traffic Infringements Agency
11 475
11 497
10 092
17 696
11 722
7 770
8 197
South African Maritime Safety Authority
SAMSA:Maritime Rescue Co-ordination Centre
6 887
7 205
7 586
12 965
13 707
14 475
15 271
Transport TETA
978
881
1054
1161
1 228
1 297
1 368
Sub-total

48. Transfers and Subsidies
Audited
Adjusted Budget
Medium Term Estimates
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
Taxi scrapping
Non Profit Institutions
2 308
2 415
2 541
2 669
2 823
2 982
3 144
South African National Taxi Council
17 500
19 254
20 275
21 289
22 524
23 785
25 093
Higher Education Institutions
7 514
9 808
9 914
10 434
11 040
11 659
12 300
International Organisations
8 783
46 824
12 024
17 718
18 396
19 089
20 140
Leave pay and donations
691
1 200
1784
187
198
210
222
Sub total
Total transfers
The department’s expenditure over the MTEF period is driven mainly by transfers to the South African National Roads Agency, the Passenger Rail Agency of South Africa, and provinces and municipalities for the construction, operations and maintenance of transport services and infrastructure as well as other transfers which account to 98% of the spending over the MTEF period.

49. Thank You!