1. DEPARTMENT OF TRANSPORT
PORTFOLIO COMMITTEE PRESENTATION
THIRD QUARTER 2015/16 1

2. Contents
Overview
Performance Analysis
Improvement Plan to Address targets not achieved during the period under review
Financial Performance Information

3. Overview
Report focuses on the progress made with the implementation of programmes & projects in the period covering 01 October – 31 December 2015;
Focus was on optimal performance of deliverables in terms of the MTEF 2015/16 – 2017/18;
Report in compliance with relevant statutory requirements
Report interrogated against the approved DoT PMR Guidelines and Technical Indicator Descriptions

4. Department Of Transport (Overall)
Total Number of targets = 50 % Achievement = 35 targets (70%) % Not Achieved = 15 targets (30%)

5. Department Of Transport (Quarter to Quarter)
PROGRAMME
TOTAL NUMBER OF TARGETS
ACHIEVED Q1
ACHIEVED Q2
ACHIEVED Q3
Non / Improvement from previous quarter
Number of targets %
Administration 8
(7 targets in Q1) 6
85.7% 7
87.5% 5
62.5%
Integrated Transport Planning 9
77.8%
89.0%
Rail Transport 2
40.0%
100.0% 4
80%
Road Transport
100% -
Civil Aviation
75.0%
Maritime Transport
50.0% 3
37.5%
25%
Public Transport
75%
DoT (Overall ) 50 37
75.5% 42
84.0% 35
70%

6. PERFORMANCE PER PROGRAMME

7. Administration: Notable Q3 Achievements
Financial Governance Compliance and Control:
Progress report on implementation of action plans to address audit findings compiled and presented to EXCO and Audit Committee in November 2015.
DoT Risk Management Strategy:
Progress report on implementation of agreed action plans for strategic risks compiled and presented to EXCO and RMC
Enterprise Architecture:
ICT Security and Solutions Infrastructure Architecture developed

8. Administration: Notable Q3 Achievements
Human Resource Development Strategy:
53 internship posts advertised through popular media (Closing Date - 06 November 2015);
18 interviews held across various branches since November 2015 and 18 candidates identified for appointment pending verification of qualifications.
Integrated Communication and Marketing Strategy
Media activities coordinated for October Transport Month and festive season road safety campaings;
Event logistics support provided for Minister and the Deputy Minister events;
98% of Presidential Hotline cases resolved.

9. Administration: Notable Q3 Non-Achievements
DoT Internet System:
Internet Portal not implemented due to delays in content availability
Remedial Action: Roll out of the portal will be done in Quarter 4.

10. Administration: Carry-Over deliverables from Q2 (Red Flags)
International Relation Strategy:
The development of the IR Strategy and the IR Policy are parallel processes.
Vacancy Rate:
No vacancies were filled during the period under review. Engagement with the National Treasury continues for consideration of application for additional funds. (Annual Target may not be achieved)

11. ITP: Notable Q3 Achievements
Review of the White Paper on the National Transport Policy:
Recommendations developed and incorporated into the White Paper (Draft II Report).
Single Transport Economic Regulator:
STER Draft Bill completed and Cabinet Memo submitted for Ministerial approval. Draft Subsidiary Regulations for Complaints, Review and Appeals developed 11

12. ITP: Notable Q3 Achievements
Private Sector Participation Framework
Stakeholder consultations conducted in the previous quarter and the Consolidated PSP Final Report developed.
Green Transport Strategy:
Draft status quo analysis report compiled.
Road Freight Strategy
Consultations conducted and draft Strategy updated with stakeholder inputs.

13. ITP: Notable Q3 non-achievements
NATMAP 2015:
Unforeseen delays in convening the Inter-Ministerial Committee hampered scheduled consultations on the NATMAP report
Remedial Action: IMC process to be expedited in Q4 given the clarity provided

14. ITP: Carry-Over deliverable from Q2
Harrismith Hub Framework:
Bilateral consultations with Free State Provincial Government conducted. However, SIP 2 stakeholders not engaged with as targeted.
Remedial Action:
Programme to highlight when consultations with SIP 2 stakeholders will be conducted.

15. Rail Transport: Notable Q3 Achievements
National Rail Policy:
Stakeholder consultations on the Green Paper on the National Rail Policy conducted in nine (9) provinces and with SALGA, NEDLAC and PRASA.
Branchline Strategy:
Draft Strategy finalised and submitted for approval.
National Railway Safety Regulator Bill:
Stakeholder consultations on the draft Bill conducted with PRASA, RSR, TRANSNET and Bombela Operating Company.

16. Rail Transport: Notable Q3 Non-Achievements
National Railway Safety Strategy:
Draft Strategy not developed as targeted in Q3.
Remedial Action: Development of the Strategy to be fast-tracked in Q4 pending appointment of a service provider

17. Road Transport: Notable Q3 Achievements
Green Paper on the Road Transport Policy
Stakeholder inputs consolidated and the Draft Green Paper in the Roads Policy finalised
Access Road Development Plan:
Status quo report completed and local authorities engaged through monthly progress meetings as well as National RRAMS workshop
AARTO Amendment Bill:
The AARTO Bill and Cabinet memorandum was submitted to the Minister for approval.

18. Road Transport: Notable Q3 Achievements
Provincial Road Maintenance Programme (S’hamba Sonke):
PRMG projects monitored
Progress status on expenditure and physical indicators provided
Nine (9) PRMG tranche payments effected

19. Civil Aviation: Notable Q3 Achievements
ACSA and ATNS Amendment Bills:
Stakeholder consultations on the two Bills conducted in November 2015
NCAP and NADP:
Consultations on the NCAP and NADP conducted with DIRCO, National Treasury, JCPS Cluster and NICOC Principals
Air Services Agreements (Yamoussoukro Decision)
Bilateral Air Services Agreements and MoUs reviewed with Egypt, Guinea, Guinea- Bissau, Mauritius and Sierra Leone

20. Civil Aviation: Notable Q3 Achievements
Civil Aviation Amendment Bill:
Further inputs were received from the SACAA on Accident Investigation pursuant to a meeting between the DoT and the Civil Aviation Authority and inputs were incorporated.
Regulations for the phasing out of the Chapter 2 Aircraft
Regulations for the phasing out of the Chapter 2 Aircraft were approved by the Minister in October 2015 and will come into force in January Implementation is being monitored.

21. Civil Aviation: Notable Q3 non-achievements
Upgrading of Mthatha Airport:
Decision taken at DGs’ meeting in December 2015 that the initial decision to obtain condonement from Treasury for the payment of the Variation Orders (VOs) be recalled. As the VOs will not be paid, the Contractor will not address the deficiencies of the aerodrome lighting.
Remedial Action: Documentation for the transfer of the assets will be re-submitted to the EC DoT during Quarter 4.

22. Maritime Transport: Notable Q3 Achievements
Merchant Shipping Bill:
Discussion Paper on the Merchant Shipping Bill (2016) presented to Clusters PCOT, NCOP. Discussion Paper has been tabled and signed.
African Maritime Charter:
Charter presented to Parliamentary Committees.

23. Maritime Transport: Notable Q3 non-achievements
National Maritime Transport Policy:
The Green Paper could not be finalised for submission to the ICTS Cluster due to capacity constraints
Remedial Action: Finalisation of the Green Paper and the submission to ICTS to be fast-tracked in Quarter 4
Cabotage Policy:
Policy incorporated as a chapter of the National Maritime Transport Policy
Remedial Action: Development of Cabotage Policy in line with finalisation of the National Maritime Transport Policy`

24. Maritime Transport: Notable Q3 non-achievements
Recommendations of Mock Audit Findings:
Approved report was not submitted to audited stakeholders as was targeted in Q2.
In Q3, it is reported that implementation of audit recommendations has been monitored on a continuous basis, however no evidence was provided to support reported information.
Remedial Actions:
Programme to confirm if the approved report was submitted to audited stakeholders as was targeted in Q2.
Programme to provide evidence for information reported in Q3.

25. Maritime Transport: Carry-Over deliverable from Q2 (Red Flags)
Cabotage Strategy:
Draft Framework was not developed as targeted in Q2 and draft Strategy not developed as per the Q3 target. (Annual target may not be achieved as the Strategy is dependent on the finalisation of the Policy)
Cabotage Bill:
Consultations on the draft Bill not conducted as targeted in Q3 (Annual target may not be achieved as the Bill is dependent on the finalisation of the Policy)

26. Maritime Transport: Carry-Over deliverable from Q2 (Red Flags)
Inland Waterway Strategy:
In Q3, the draft Strategy could not be submitted to EXCO as targeted due to poor attendance of the Advisory Committee on Small Vessels to finalise the draft.
Remedial Actions:
Programme to ensure submission to EXCO

27. Public Transport: Notable Q3 Achievements
Integrated Public Transport Networks Plans in District Municipalities
IPTN Operational Plan developed for OR Tambo DM and consultations conducted
Taxi Recapitalisation Programme Scrapping
804 old taxi vehicles scrapped during period under review
Taxi Recapitalisation Programme Review
First Draft TRP Review has been developed

28. Public Transport: Notable Q3 Achievements
Integrated Public Transport Turnaround Plan:
Comments from bus sub-committee task team considered and incorporated into Version 1 of the Final draft IPTTP. This version was circulated to Provinces in November 2015.

29. Public Transport: Notable Q3 non-achievements
Review of the Rural Transport Strategy:
Reviewed Strategy not submitted to FOSAD as targeted
Remedial Action: Strategy to be tabled at the next sitting of FOSAD

30. Public Transport: Carry-Over deliverable from Q2 (Red Flag)
Land Transport Amendment Bill:
Bill not submitted to the State Law Adviser as targeted in Q2.
In Q3, it is reported that the Bill was not submitted to the PCOT as targeted. 2nd and 3rd quarter targets not achieved (Programme to confirm if submission to the State Law Advisor has been achieved and whether the annual target will be achieved)

31. IMPROVEMENT PLAN TO ADDRESS NON-ACHIEVEMENTS AND TIMELINES FOR EACH MILESTONE - PER PROGRAMME

32. Integrated Transport Planning

33. Rail Transport

34. Civil Aviation

35. Maritime Transport

36. Maritime Transport

37. Public Transport

38. FINANCIAL PERFORMANCE INFORMATION

39. Expenditure per programme to 31 December 2015
Adjusted
Budget
Cashflow
projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
1. Administration
97 831
(7 958)
74%
2. Integrated Transport Planning
88 083
61 813
61 725
26 358 88
70%
3. Rail Transport
77%
4. Road Transport
60 442
79%
5. Civil Aviation
45 500
13 265
6. Maritime Transport
83 889
78 798
42 291
5 091
65%
7. Public Transport
58%
Total Department
The Department has a total adjusted budget of R billion. To date of reporting the department has spent R billion or 74% of the allocated budget.

40. Expenditure per Economic Classification
Adjusted
Budget
Cashflow
projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
(5 990)
72%
Goods and Services
(35 070)
76%
Transfers & Subsidies
74%
Machinery and Equipment
5 717
3 594
7 107
(1 390)
(3 513)
124%
Payment for financial assets -
148
(148) 0%
Total Department
Compensation of Employees: The department does not anticipate overspending , additional funding has been approved but not yet appropriated.
Goods and Services: Overspending due to the cost of maintaining and operating eNatis, state funerals and AU conference.
Transfers and Subsidies: Underspent due to delays in approving the revised cash flow projections for PRASA and PRMG as well as slow spending in the Taxi Recapitalisation project.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

41. Cashflow projection 3rd quarter
Expenditure per Economic Classification: Programme 1
Per Economic Classification
Adjusted budget
Cashflow projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
46 724
(8 134)
73%
Goods and Services
49 758
2 521
74%
Transfers & Subsidies
10 637
7 693
7 996
2 641
(303)
75%
Machinery and Equipment
2 878
2 128
4 138
(1 260)
(2 010)
144%
Payment for financial assets 32
(32) 0%
Total
97 831
(7 958)
Compensation of Employees: The programme does not anticipate overspending , additional funding has been approved but not yet appropriated.
Goods and Services: Overspent due to the transport costs for the state funerals, AU conference.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

42. Cashflow projection 3rd quarter
Expenditure per Economic Classification: Programme 2
Per Economic Classification
Adjusted budget
Cashflow projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
42 480
29 839
31 948
10 532
(2 109)
75%
Goods and Services
44 957
31 789
28 895
16 062
2 894
64%
Transfers & Subsidies - 9
(9) 0%
Machinery and Equipment
646
185
828
(182)
(643)
128%
Payment for financial assets 45
(45)
Total
88 083
61 813
61 725
26 358 88
70%
Compensation of Employees: The programme does not anticipate overspending , additional funding has been approved but not yet appropriated
Goods and Services: Underspent due to the following projects: White paper on National Transport Policy, NATMAP, Transport Policy Framework, National Transport Planning Databank and Single Transport Economic Regulator.
Machinery and Equipment:Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

43. Expenditure per Economic Classification: Programme 3
Adjusted budget
Cashflow projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
20 687
15 140
14 809
5 878
331
72%
Goods and Services
15 101
11 819
6 046
9 055
5 773
40%
Transfers & Subsidies
77%
Machinery and Equipment
150 -
194
(44)
(194) 0%
Payment for financial assets
Total
Goods and Services: Underspending due to outstanding invoice for the National Rail Policy Green Paper and The draft National Railway of amendment Bill on consultation stage.
Transfers and Subsidies: Underspent due to delays in approving the revised cash flow projections for PRASA .
Machinery and Equipment: Overspending as a result of the replacement and purchases of laptops and desktops for new employees further shifts will be effected from goods and services.

44. Cashflow projection 3rd quarter
Expenditure per Economic Classification: Programme 4
Per Economic Classification 
Adjusted budget
Cashflow projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
50 284
36 834
33 234
17 050
3 600
66%
Goods and Services
48 416
35 949
( )
( )
327%
Transfers & Subsidies
79%
Machinery and Equipment
631
506
559 72
(53)
89%
Payment for financial assets - 44
(44) 0%
Total
60 442
Compensation of Employees: The programme does not anticipate an underspending , additional funding has been approved but not yet appropriated.
Goods and Services: Overspent due to the cost of the unfunded mandate of maintaining and operating the eNatis system.
Transfers and Subsidies: Underspending due to delays in approving the revised cash flow projections for PRMG by National Treasury.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

45. Cashflow projection 3rd quarter
Expenditure per Economic Classification: Programme 5
Per Economic Classification 
Adjusted budget
Cashflow projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
34 854
25 054
24 645
10 209
409
71%
Goods and Services
75 513
60 130
46 661
28 852
13 469
62%
Transfers & Subsidies
38 739
31 767
32 145
6 594
(378)
83%
Machinery and Equipment
420
340
571
(151)
(231)
136%
Payment for financial assets - 4
(4) 0%
Total
45 500
13 265
70%
Compensation of Employees: The programme does not anticipate an underspending , additional funding has been approved but not yet appropriated.
Goods and Services: Underspending due to the outstanding invoices mainly from Telkom for watch keeping services and regulating committee, the amendment of the Civil Aviation Act as well as the state of action plan on Co2 emission.
Transfers and Subsidies: Once of payments for international membership fees. Funds will be shifted to cover the over expenditure.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

46. Cashflow projection 3rd quarter
Expenditure per Economic Classification: Programme 6
Per Economic Classification 
Adjusted budget
Cashflow projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
21 728
16 297
14 267
7 461
2 030
66%
Goods and Services
69 709
52 346
40 581
29 128
11 765
58%
Transfers & Subsidies
29 317
14 911
23 577
5 740
(8 666)
80%
Machinery and Equipment
335
371
(36)
111%
Payment for financial assets - 2
(2) 0%
Total
83 889
78 798
42 291
5 091
65%
Compensation of Employees: The programme does not anticipate an underspending , additional funding has been approved but not yet appropriated.
Goods and Services: Underspent due to the delays in the appointment of the services providers on the following projects: The White Paper on the Maritime Transport Policy, Cabotage Strategy, Review of the Merchant Shipping African Maritime Charter and Feasibility study on the TUG boat services.
Transfers and Subsidies: The programme does not anticipate an overspending, additional funding to the Ports Regulator has been approved but not yet appropriated.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

47. Cashflow projection 3rd quarter
Expenditure per Economic Classification: Programme 7
Per Economic Classification 
Adjusted budget
Cashflow projection 3rd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
43 961
30 708
32 827
11 134
(2 119)
75%
Goods and Services
90 971
51 021
39%
Transfers & Subsidies
58%
Machinery and Equipment
657
100
446
211
(346)
68%
Payment for financial assets - 20
(20) 0%
Total
Compensation of Employees: The programme does not anticipate an overspending , additional funding has been approved but not yet appropriated.
Goods and Services: Underspent due to the following projects: Implementation of the IPTN in district municipalities as well as delays in the review of taxi scrapping model.
Transfers and Subsidies: Taxi Recapitalisation underspent due to slow spending.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

48. Transfer Payments Transfer Payments (R'000) Adjusted budget
Expenditure
Available
% Spent
Conditional Grants:
Provincial Roads Maintenance
82%
Public Transport Operations
69%
Public Transport Network
50%
Rural Road Asset Management
96 842
100%
Public Corporatios:
Passenger Rail Agency of South Africa (PRASA)
77%
Departmental Agencies & Accounts:
S.A. National Roads Agency
76%
Road Traffic Management Corporation
46 026
75%
Railway Safety Regulator
53 379
S.A. Civil Aviation Authority
20 124
15 193
4 931
Ports Regulator of South Africa
27 627
23 220
4 407
84%
Road Traffic Infringements Agency
11 497
8 623
2 874
Maritime Rescue Co-ordination Centre
7 205
5 404
1 801
Transport SETA
1036
881
155
85%
Total
74%

49. Transfer Payments Transfer Payments (R'000) Adjusted budget
Expenditure
Available
% Spent
Other:
Taxi scrapping
37%
Non Profit Institutions
2 415
100%
South African National Taxi Council
19 254
16 500
2 754
86%
Higher Education Institutions(Bursaries to non-employees)
9 433
6 970
2 463
74%
International Organisations
10 685
9 451
1 234
88%
Leave pay and donations
168
365
(197)
217%
Sub-total
42%
Total

51. PROVINCIAL ROAD MAINTENANCE GRANT
PROVINCES
Budget
Transfer
Spent by Province
Variance %
R'000 %
Eastern Cape
81%
Free State
85%
Gauteng
KwaZulu-Natal
Limpopo
78%
Mpumalanga
79%
North West
Northern Cape
87%
Western Cape
76%
Overall Total
82%

53. PUBLIC TRANSPORT OPERATIONS GRANT
PROVINCES
Budget
Transfer
Spent by Province
Variance %
R'000 %
Eastern Cape
73%
Free State
67%
Gauteng
69%
KwaZulu-Natal
71%
Limpopo
Mpumalanga
68%
North West
92 313
61 938
61 461
Northern Cape
44 907
29 793
30 458
66%
Western Cape
Total

55. PUBLIC TRANSPORT NETWORK GRANT
PROVINCES 
Budget
Transfer
Spent by Municipality
Variance %
R'000 %
EC: Buffalo City
EC: Nelson Mandela Bay
2 098
50%
FS: Mangaung 0%
GT: City of Tshwane
GT: Ekurhuleni
59%
GT: City of Johannesburg
KZN: Msunduzi
65 000
12 938
30%
KZN: eThekwini
LP: Polokwane
92 094
27 334
MP: Mbombela
52 152
36 441
45%
NW: Rusternburg
WC: George
74 000
39 937
64%
WC:City of Cape Town
Overall Total

56. Governance Management of Audit Findings
Progress Report on the implementation of the action plan to address 2014/15 audit findings attached as an annexure to the 3rd Quarter Report.
Risk Management
Strategic Risk Progress Report attached as an annexure to the 3rd Quarter Report

57. THANK YOU