1. NLTTA
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2. Situational Analysis
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3. Problems with the NLTTA
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4. Appropriate Institutional Bodies
Immediate problem - Clause 10(13) provides for an assignment of functions to the TA from Provinces without the need for agreement. TA, being a separate juristic body does not enjoy the constitutional protection that a sphere of government has – legal opinion.
Broader problem – sustainable funding source.
eThekwini – subsidy bill is approx R450 million/annum.
Total cost of TA over R700million/annum
Deficit or currently unfunded R34.5 million/annum increased to R80m
27/05/2019

5. Recommendation Amend Clause 10(13) to include the words “by agreement”
Lobby for appropriate financial legislation as well as NLTA to allow TA to raise its own funding. In eThekwini eg:
To fund subsidies +16c/l fuel & 208% licence fee
To fund deficit costs +1.2c/l fuel & 16% licence fee
Funding to be tied up through founding agreement.
27/05/2019

6. Planning Cost of statutory plans – eThekwini – R12m/5year cycle.
Frequency of plans is problematic eg CPTR resurvey before finishing previous years data capture.
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7. Recommendation
Provide funding
Change frequency
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8. Regulated Competition & Appropriate modes
Durban Transport issue
Funding humps must be provided for or PPP’s and required guarantees must be pursued.
Taxi recap
27/05/2019

9. Recommendation Confirm National Policy – galvanise political will.
Provide for funding humps or a framework for PPP’s and guarantees.
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10. Enforcement Not addressed adequately in NLTTA.
Critical Success Factor for an integrated system.
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11. Recommendation
Amend RTMC & AARTO Acts to provide for Transport Law Enforcement.
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12. Functions Mandatory prepare transport plans
develop land transport policy
Financial planning for land transport
Manage movement of people and goods
encourage, promote and facilitate public consultation
Prepare tenders, evaluate and award tenders for PT services
+ those assigned by Provincial legislation
RAIL EXCLUDED!
27/05/2019

13. Other functions (optional)
Functions cont.
Other functions (optional)
promote optimum modes
Integration of modes
fare levels
Fare systems and integrated ticketing
Information systems
regulation
enforcement
Security
etc
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14. eThekwini TA functions
Mandatory
prepare transport plans
develop land transport policy
Financial planning for land transport
Manage movement of people and goods
encourage, promote and facilitate public consultation
Prepare tenders, evaluate and award tenders for PT services (Subsidy function)
“DT” contract
only
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15. Key Issue
TA’s
Implementation
Great Expectations!
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16. Danger
Created another institutional structure with no real resources and mechanisms to IMPLEMENT
Why do we say that?
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17. Regulate mini-bus taxi industry?
However…
Vision
Objectives
Regulate mini-bus taxi industry?
TA’s
Policy
Implementation
NAT /PROV
Legislation
Funding
Recap?
NATIONAL
NLTA?
Funding Framework
Strategies
Rail funding?
27/05/2019
NATIONAL
NATIONAL

18. The issue of devolution
PRO’S
CON’S
In line with National Policy
International Best Practice
Consolidation of Transport functions
*More responsive to local passenger needs
* Intermodalsim (info, tickets, planning etc)
Fragmentation of local planning function (Land-use / transport integration)
BENEFIT > DISBENEFIT
If full devolution of bus and rail does not take place, then lost benefit!
Manage through IDP process, Liaison structures, joint project teams and Governing Body being EXCO Councilors.
27/05/2019

19. TAXIS: License – rights in perpetuity – MUST compensate, relocate or move into bus industry
How compensate?
- Business – some % of asset value – not good for PT ops
- need to know income, expenditure, profit etc- no records!
- Negotiate with each single operator – all slightly different
How relocate?
- Large number of operators
- Existing operators in all other areas - violence
Move into Bus industry – opportunity, but is limited!
Re-cap is supposed to help, but where is it??
27/05/2019

20. RAIL: Objective – feed people to rail
First need to upgrade VERY POOR rolling stock and critical infrastructure
- Cost: in excess of R 1 bill in eThekwini
- Not under local authority control – SARCC / NDOT
- SARCC priority: Cape Town and Guateng
- Devolution still far away
WHERE DOES THAT LEAVE ETA
27/05/2019

21. 2B or not 2B a TA?
It seems there is an upfront choice to be made regarding the organisation:
Vertical integration of transport functions:
Rail
Bus
Taxi
Horizontal integration of planning functions at local level OR
Agencies to deal with rail, bus and minibus taxi
Integrate planning via some arrangements
27/05/2019

22. Functions Mandatory prepare transport plans
develop land transport policy
Financial planning for land transport
Manage movement of people and goods
encourage, promote and facilitate public consultation
Prepare tenders, evaluate and award tenders for PT services
+ those assigned by Provincial legislation
RAIL EXCLUDED!
27/05/2019

23. Other functions (optional)
Functions cont.
Other functions (optional)
promote optimum modes
Integration of modes
fare levels
Fare systems and integrated ticketing
Information systems
regulation
enforcement
Security
etc
27/05/2019

24. eThekwini TA functions
Mandatory
prepare transport plans
develop land transport policy
Financial planning for land transport
Manage movement of people and goods
encourage, promote and facilitate public consultation
Prepare tenders, evaluate and award tenders for PT services (Subsidy function)
“DT” contract
only
27/05/2019

25. Some lessons cont. ETA dependent on National and Provincial Government
Waiting for…
Proper National Funding Framework and Strategy & MONEY-Capital/Operating and PT subsidy
Rail investment
Re-cap –are we merely replacing old with new
Provincial legislation
Buying out Operating licences?
How is that Sanral is able to be so successful –Funding?
PT subsidy
Special users
etc
27/05/2019

26. Parting Shots
Cooperative governance – on the admin side is at an all time low.
Capacity – seriously lacking.
Policy and strategy is sound but the institutional structure to support the policy and strategy is found wanting.
“Criminal” to have such wonderful policy and legislation but such a lack of commitment and ability to follow through.
Reality is –it is expensive to provide efficient PT services. Benefits are enormous
27/05/2019