1. PORTFOLIO COMMITTEE ON TRANSPORT 17 October 2014
The South African National Roads Agency SOC Ltd annual report and financial statements – 2013/14
PORTFOLIO COMMITTEE ON TRANSPORT
17 October 2014
# v3

2. Contents Network Strategic Objectives
Corporate Performance and Financial Information
Road Safety Management
Skills Development
Budget
Challenges
Loss of Opportunity
Discussion Points

3. NATIONAL ROAD NETWORK (km)
Description
Non Toll
Agency Toll
BOT
Total
Dual
Carriageway
610
520
443
1 573
4-Lane
Undivided 11
299
240
550
2-Lane
Single
17 662
1013
605
19 280
18 283
1 832
1 288
21 403
% of SANRAL Network
85% 9% 6%
Total RSA Road Network Estimated to be 750,000 km

5. Strategic Objectives SANRAL’s Eight Strategic Objectives:
Manage the national road network effectively
Provide safe roads
Carry out Government’s targeted programmes - Transformation
Co-operative working relationships with relevant Departments, Provinces, Local Authorities and SADC member countries
Achieve and maintain good governance practice
Achieve financial sustainability
Pursue research, innovation and best practice
Safeguard SANRAL’s reputation: stakeholder communication

6. FINANCIAL YEAR 2013/14: Corporate Financial and Performance Information

7. CONTRACTS AWARDED 2013/14 Type of Contract Number Rands ‘000
Non-toll Network
116
Toll Network 30
Other 29
TOTAL VALUE
175
2012/13
255
2011/12
172

8. NON-TOLL: OPERATING EXPENDITURE 2013/14
Description
Number of projects
Length (km)
Cost
R’000
Routine Maintenance 77
16 584
Periodic Maintenance 88
902
Special Maintenance 27
387
Total
192
17 873
2012/13
139
20 597
2011/12
129
16 349

9. NON-TOLL: CAPITAL EXPENDITURE 2013/14
Description
Number of projects
Length (km)
Cost
R’000
Strengthening 81
388
Improvements 69
270
New Facilities 55
120
Total
205
778
2012/13
106
2 715
2011/12 93
2 575

10. TOLL: OPERATING EXPENDITURE 2013/14
Description
Number of projects
Length (km)
Cost
R’000
Toll Operations and RRM 58
1 832 1 
Periodic Maintenance 6 24
Special Maintenance 2 1
16 870
Total 66
1 857
2012/13 62
1 979
2011/12
1 969

11. TOLL: CAPITAL EXPENDITURE 2013/14
Description
Number of projects
Length (km)
Cost
R’000
Strengthening 3 2
Improvements 14
New Facilities 25 6
Total 42 10
2012/13 45
571
2011/12 52
502

12. SOCIO-ECONOMIC DEVELOPMENT ON SANRAL PROJECTS FOR 2013/14

13. BEE: PROJECT CONTRIBUTION COMMITMENT 2013/14
Total
R’million
CAPEX
RRM
Total value of Contracts awarded
7 248
5 782
1 466
Value of work to HD Ownership
1 653
1 498
155
Value of work to SMME’s (black owned)
1 646
575
1 071
Empowerment % 2013/14
45%
36%
83%

14. NON-TOLL AND SANRAL TOLL Empowerment: Value of Work Performed 2013/14
Type of Projects
SMME Utilisation
Total R’000
SMME utilisation: Non-Black Enterprise
SMME utilisation Black Enterprise
Number
R’000
Operational Expenditure
143
565
Capital Expenditure
228
572
Total
371
1137

15. TRAINING NUMBERS : 2013/14 SANRAL Toll Roads
Type of Project
Male
Female
Total
Total Rand Value
Non-Toll Roads
Maintenance
3 590
1 268
4 858
Replacement and Improvement
4 968
1 622
6 590
SUB-TOTAL
8 558
2 890
11 448
SANRAL Toll Roads
794
617
1 411
Toll Operations
4 565
7 822
12 387
Improvement
497 41
538
5 856
8 480
14 336
TOTAL
14 414
11 370
25 784

16. NON-TOLL JOB CREATION 2013/14
Type of Project
Person Hours
Average Equivale-nt Full-time Jobs (2000 person hours per annum)
Number of Job Opportunities Realised (includes temporary job opportunities)
Total R’000
Male
(‘000)
Fem-ale
Total
Maintenance
17 130
3 026
20 157
10 078
18 228
3 484
21 712
Replacement & Improvement
22 629
5 313
27 942
13 971
22 260
5 023
27 283
Sub-total
39 759
8 339
48 099
24 049
40 488
8 507
48 995

17. SANRAL TOLL JOB CREATION 2013/14
Type of Project
Person Hours
Average Equivalent Full-time Jobs (2000 person hours per annum)
Number of Job Opportunities Realised (includes temporary job opportunities)
Total R’000
Male
(‘000)
Female
Total
Maintenance
2 834
1 047
3 882
1 941
5 524
2 082
7 606
Toll Operations
955
1 621
2 576
1 288
640
1 024
1 664
80 291
Improvements
3 205
479
3 684
1 842
2 514
629
3 143
Sub-total
6 994
3 147
10 142
5 071
8 678
3 735
12 413
Total (Non-toll and Toll)
46 754
11 487
58 241
29 120
49 166
12 242
61 408 2 

18. SANRAL Staff Demographics March 2014
Total: 279 employees

19. Staff Gender Demographics March 2014

20. Summary: Corporate Performance: March 2014
Strategic Objective
Total Targets
Targets Not Achieved
Reason for Non-achievement of Target
Manage national roads 7
Provide safe roads 2
Co-operative relationships with DEA, DWA, DMR 1
Difficult and slow progress on MoU with DWA
Good governance 3
For details please refer to Annexure 1

21. Summary: Corporate Performance: March 2014 cont’d
Strategic Objective
Total Targets
Targets Not Achieved
Reason for Non-achievement of target
Transformation 9
Achieve Financial Sustainability 3 1
GFIP project delays have affected private sector investments
Pursue Research, Innovation & Best Practice 2
TMH/TRH documents not approved by COTO
Consultant for movable weighbridge not appointed
Safeguard SANRAL’s Reputation
Spontaneous awareness of SANRAL low
For details please refer to Annexure 1

22. Road Safety Management
Safer roads
Infrastructure projects
Pedestrian hazardous location programme
Post-crash response
Safer road users
Road safety education

23. Road Safety Education Date Number of sites Number of schools
Number of educators attending workshops
Number of educators receiving material
Number of learners receiving material
April/May 2013 17
205
373
1789
July/Aug 2013 14
180
387
1316
86 858
Total 31
385
760
3105

24. SKILLS DEVELOPMENT BURSARIES SCHOLARSHIPS INTERNSHIPS
106 bursars qualifying in engineering (and a few other) degrees, including post graduate degrees
8 universities
SCHOLARSHIPS
177 scholars
Grades
Across 40 schools
In 7 provinces
INTERNSHIPS
196 interns training with 69 contractors across the country

25. SKILLS DEVELOPMENT SUPPORT: TERTIARY INSTITUTIONS
Chair in Pavement Engineering: University of Stellenbosch
Chair in Transport Planning: University of Cape Town
NMMU
Grade 10 – 12 learners ICT: 890
Physical Science Educators: 190
Botany Students: 36
University of Witwatersrand
WTTP Grade 10-12: 719 learners
Chair in Maths and Science: University of the Free State
Univ. of the Free State
ICT Grade learners: 351
Family Maths and Science
Learners: 7624, student educators: 474, educators: 155, parents from the Free State, Northern Cape and Eastern Cape: 1171
369 BSc students
1 Postgraduate internship

26. Non-Toll Budget (Rand ‘000)
Description
Actual 2013/14
Budget 2014/15
Budget 2015/16
Budget 2016/17
Treasury Allocations
Adhoc Maintenance
38 583
60 085
46 809
Routine Maintenance
Periodic Maintenance
Special Maintenance
Strengthening
Improvements
New Facilities
Land Acquisition
21 578
15 000

27. Toll Budget (Rand ‘000) Description Actual 2013/14 Budget 2014/15
Total Income
Other Toll Income
GFIP
Adhoc Maintenance
14 110
2 198
12 980
8 500
Routine Operations
Periodic Maintenance
37 702
Special Maintenance
16 870
930 -
Strengthening
Improvements
New Facilities
Finance Charges

30. SANRAL Condition Survey Vehicles
Various condition parameters collected using SANRAL Road Survey Vehicles:
Roughness – how bumpy is the road – speed, wear, etc
Rut Depth – water pond on surface - safety
Macro Texture – assist vehicle tyre to drain water – safety, noise
Cracking – how much water will get in - deterioration
Deflection – remaining structural life of pavement
Alignment (DGPS) – Speed, Fuel Consumption, etc
ROW Video – Road Signs, Section Measurements, etc
Surveys at between 75 to 100 km/h
2D/3D Surface Images

32. Future Investments PROVINCE AMOUNT Free State R5.89 billion
Kwa-zulu Natal
R6.86 billion
Northern Cape
R0.46 billion
Western Cape
R1.41 billion
Eastern Cape
R8.25 billion
Gauteng
R13.15 billion
Limpopo
R7.91 billion
Mpumalanga
R11.93 billion
North West
R6.54 billion
TOTAL
R62.40 billion

33. BORROWING CAPACITY Initial R6 billion guaranteed funding (SZ bonds)
R0.73 billion N1 loan – separate guarantee
R26.91 billion guaranteed funding (HWAY bonds & other)
R15 billion – non guaranteed funding (NRA bonds)
Total Borrowing capacity = R48.64 billion

34. Ratings June 2014 Moody’s Global Scale Issuer Ratings: Long-Term: Baa3
Short-Term: P-3
Stable Outlook
National Scale Issuer Ratings:
Long-Term: A3.za
Short-Term: P-2.za

35. Debt Profile 30 September 2014
Total Debt September 2014: R43.3 billion

36. Category A2 (Light Vehicles)
GFIP User Toll Cost
Category A2 (Light Vehicles)
Actual % (Audited)
Less than R100 per month
82.83%
Between R101 and R200
10.69%
Between R201 and R300
4.03%
Between R301 and R400
1.82%
Between R 401 and R 450
0.63%

37. CHALLENGES Resistance to e-tolling on GFIP by interest groups
Slow e-tag registration
Resistance to user charge- N1/N2 Winelands, N2 Wild Coast legal action
Need firmly communicated message on toll road funding
Delays in project related approvals from water affairs, provinces etc.
Inadequate law enforcement:
Traffic rules
Overloading by hauliers
Enforcement in relation to electronic/open road tolling
Driver behaviour – road safety
Reputational risk for SANRAL, DoT

38. CHALLENGES CONT’D
Insufficient funding for timely upgrades and maintenance of the non-toll network
Poor progress on SIP-1 and SIP-4 projects
Insufficient high-level planning and co-ordination between inter-modal transport and the three spheres of Government

39. LOSS OF OPPORTUNITY N2 Wild Coast Project N1-N2 Winelands Project
N3 De Beers Pass

40. DISCUSSION POINTS
Future of private sector investment in funding road infrastructure – toll road projects
Improve inter-Government departmental co-operation

41. Thank You FRAUD HOTLINE: 0800 204 558 Website: www.sanral.co.za
4/30/2019
Thank You
FRAUD HOTLINE:
Website:

42. Comments / Reasons for Variance
Performance Information: Annexure 1 Strategic Objective 1: Manage the national road network effectively
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
Comments / Reasons for Variance
31 March 2014
1.1
Smooth Travel Exposure (STE)
Quarterly
95.19%
 95%
96.28%
1.2
Bridge Condition Exposure BCE)
93.57%
 90%
93.92%
1.3
Low Rut Exposure (LRE)
98.7%
97.72%
1.4
High Texture Exposure (HTE)
97.28%
98.37%
1.5
Routine Maintenance km
16584
13050
1.6
Periodic Maintenance km
Annual
1370
900
1290
Previous year’s works completed in 2013/14 and winter seal trials
1.7
Strengthening km
460
450
659

43. Strategic Objective 2: Provide safe roads
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
31 March 2014
Comments / Reasons for Variance
2.1
Percentage of network with active Routine Road Maintenance (RRM) Contracts
Quarterly
100%
100 %
2.2
Identify, investigate and propose remedial measures at three pedestrian hazardous locations per region per year
Identified: 100%
Investigated: 100%
Proposal of remedial measures: 92..5% completed
100% of identification, investigation and proposal of remedial measures at three pedestrian hazardous locations per region per year
Proposal of remedial measures: 100% completed

44. Comments / Reasons for Variance
Strategic Objective 4: Co-operative working relationships with relevant Departments, Provinces, Local Authorities and SADC member countries
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
Comments / Reasons for Variance
31 March 2014
4.1
MOU with Departments
Quarterly
MoU with DMR implemented without problems. MoU with DEA in place and meetings in place to discuss update. Second DWA MoU draft to be sent to the DWA shortly
MoU with DWA to be signed. MoU with DMR and DEA to be maintained and/or updated
MoU with DMR in place. MoU with DEA in place and meetings in place to discuss update. MoU with DWA still under discussion
The relationship with DWA was difficult, with slow progress on action requests
4.2
Botswana Border Bridge (Notwane River)
Authorisations obtained from DEA and DWA (SA and Botswana)> Design completed Contractor appointed
Authorisations obtained six months late. Design completed. Contractor appointed on 9 April 2014

45. Strategic Objective 5: Achieve and maintain good governance practice
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
31 March 2014
Comments / Reasons for Variance
5.1
PFMA compliance
Quarterly
>90%
100%
5.2
Risk Management
Active Risk Register to be maintained
Average risk rating reduced by 14.1%
Active Risk Register and reduction of average risk rating of previous year’s primary risks by 5%
Average risk rating reduced by more than 5%
5.3
Fraud Hotline
All reported incidents to be investigated and action to be taken as appropriate
All reported incidents were investigated and action was taken or was being taken as appropriate

46. Strategic Objective 6 (and 3): Transformation
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
Comments / Reasons for Variance
31 March 2014
6.1
Percentage of RRM project spend contracted to SMMEs and Black owned Companies
Quarterly
85%
>60 %
83%
6.2
Percentage of other than RRM project spend contracted to SMMEs and Black owned Companies
35%
>35 %
36%
6.3
Jobs created on project (Full- time)
26 947
23 800
29 120
6.4
SMMEs
800
1508
Includes suppliers
6.5
Internships 88 90
196
6.6
External Bursaries 70 85
106

47. Strategic Objective 6 (and 3): Transformation
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
Comments / Reasons for Variance
31 March 2014
6.7
Scholarships
Quarterly
179
170
177
6.8
EE Plan
Annual
On track to achieve EE Plan targets
Achieve targets as per Board approved EE Plan
Annual EE Plan targets achieved
6.9
Community Development Projects (CDP)
Semi-annual
Community Development Projects (CDP) delivered as per budget
Three projects per region registered with approved budget per financial year
Three projects per region have been registered and have been included in the approved 2014/15 budget

48. Strategic Objective 7: Achieve Financial Sustainability
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
Comments / Reasons for Variance
31 March 2014
7.1
Private Sector Investment Index (PSII)
Quarterly
26.2%
>30 %
26.23%
GFIP tolling project delays have affected private sector investments
7.2
Expenditure Variance %
<10% under-expenditure on budget
< 10% under expenditure on budget
Non-toll: R10955 m
Toll: 4 089m
Non-toll: R m
Toll: R4 192m. Variance: 0.2% underspent
7.3
Expenditure Efficiency Index (EEI)
<7.5%
< 7.5%
2.99%

49. Strategic Objective 8: Pursue research, innovation and best practice
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
Comments / Reasons for Variance
31 March 2014
8.1
Completion: SA Pavement Design Method
Quarterly
60% completed
80% complete
81.73% complete
8.2
COTO approval of TRH/TMH documents
New
14 documents approved
None approved
Documents were submitted to DoT for approval. COTO requested further stakeholder engagement
8.3
Research and development of one movable weighbridge
Consultant appointed for design and legal aspects resolved
Consultant appointment under consideration. Legal aspects have been resolved – any new ones will be dealt with timely
Consultant’s appointment under consideration

50. Comments / Reasons for Variance
Strategic Objective 9: Safeguard SANRAL’s reputation: stakeholder communication
Programme Performance Indicator
Reporting Period
Actual 2012/13 Baseline
Annual Target 2013/14
Achieved
Comments / Reasons for Variance
31 March 2014
9.1
Communication
Quarterly
At least one positive message per month
At least four positive message to be published per month
At least four positive messages were published per month
9.2
Stakeholder awareness measurement
Annual
Spontaneous awareness of SANRAL among adults across the country: 21%
Spontaneous awareness of SANRAL among adults across the country to be increased by 2% to 23%.
Research conducted during Quarter 1 for the financial year. Spontaneous awareness has been increased by 1% to 22%.
Increase of awareness low in provinces such as Eastern Cape and Kwa-Zulu Natal