1. Department of Transport Joint Budget Committee Hearings MTEF 2004/05 to 2006/07 18 November 2003

2. Context (drivers of growth and role of transport) Key initiatives (linked to MTBPS) Structured interventions (framing the role of transport) Key priorities and challenges for 2004/2005 Content of presentation Department of Transport

3. Transport an enabler of economic growth and development Investment in our people Investment in our physical infrastructure Enhanced industrial capacity Role of Transport: Skills development and training Establishment of strategic transport links (tourism, lower cost of production, shorter trade links and enhanced mobility) Context (drivers of growth) Department of Transport

4. Enhancing public infrastructure capacity – transport linkages Expanded Public Works Programme – extending job creation initiatives by channeling 10% of transport infrastructure investment to labour based employment projects Deepening social security programme – restructuring of the RAF into a comprehensive social benefit scheme (Taylor report; Satchwell Commission) Developing a broad based BEE strategy – unbundling construction cartels in supporting the development of black construction firms Reinforcing growth by investing in critical transport infrastructure links – trade links (Trans-Kalahari corridor); public transport investment; development of tourism routes Key initiatives (linked to MTBPS) Department of Transport

5. Structured interventions (in support of key initiatives) Department of Transport Growth in infrastructure investment should be most focused to service a multiplicity of strategic objectives – role of parastatals like Transnet should be crystallised EPWP should be built around specific strategic projects, i.e. expansion of public transport and tourism links Infrastructure investment should be demand-driven and guided by other strategic priorities, e.g. enhanced competitiveness; shorter trade routes; by investing in required public transport infrastructure Skills development and training should be a constituent part of projects undertaken as part of the EPWP Development of municipal infrastructure and services should also be informed by greater strategic demands

6. Key Priorities and Challenges Road Accidents (The Road to Safety Strategy) Road Accident Fund (The Satchwell Report) Transport infrastructure John Ross Highway Rural Roads Investment in Rail Infrastructure and Rolling Stock Support initiatives around concessioning of Durban Container Terminal and construction of Coega Port Upgrade of access roads to Border Posts Public Transport (taxi recap. and subsidies) Rail Safety & Security (RSR) Freight Transport (National Logistics) Department of Transport

7. Policy and Strategy Formulation Substantive Regulation Oversight of Transport Public Entities Key Functions

8. Department of Transport Public Transport Infrastructure Safety Key Focus Areas

9. Department of Transport Key Strategic Objectives and Outputs

10. 2 Land Transport Management 3 Transport Policy and Regulation 4 Public Transport and Planning Infrastructure Development eg: road infrastructure Infrastructure Development eg: revival of branch railway lines and policy on infrastructure Public Transport Operations eg: bus and rail subsidies; rail infrastructure for commuter transport Safety and Security eg road traffic safety Safety and Security maritime and aviation safety Transport Planning eg: Implementation of National Land Transport Transitional Act: creation of transport authorities Information Systems eg. E-Natis Information Systems eg: policy development of intelligent transport systems Land Transport Promotion and planning eg: management of pilot projects Sector and Enterprise Reforms Policy, Institutional Reforms and the Regulatory Framework

11. Land Transport Management ObjectiveOutput Road Infrastructure: Develop a sustainable road infrastructure strategy for the future Finalise the Road Infrastructure Strategic Framework Monitor the implementation of the short term strategy Overloading control: Effective utilisation and management of infrastructure Appropriate legal framework Information management Coordination of enforcement efforts National overloading control strategy Guideline documents on operational procedures and Public-Private Partnerships for weighbridges Guideline document on legislated portable weighbridges Appropriate legislation and monitor its implementation Infrastructure Development

12. Land Transport Management ObjectiveOutput Road to Safety Strategy: Implementation of the Road to Safety Strategy by Provincial and Local Governments Facilitate the Road to Safety Strategy via the Arrive Alive campaign Ensure that the RTMC becomes operational Establish the Road Traffic Infringements Agency (RTIA) and ensure that it becomes operational Rail Safety: Oversee safe railway operations and promote rail safety Ensure that the Railway Safety Regulator becomes operational Transport Safety and Security

13. ObjectiveOutput National Traffic Information System (NaTIS): Implementation of a technologically enhanced and stable system via the migration to an electronic National Traffic Information System (eNaTIS) Ensure access to approved users Maintain a 97% availability of the system Implement at least 80% of the approved needs of users Land Transport Management Transport Information Systems

14. ObjectiveOutput Road Traffic Infringement Agency (RTIA): Reduce the road traffic offence rate by implementing the Administrative Adjudication of Road Traffic Offences Act (AARTO Act), thereby creating a safer environment for all road users Establish the RTIA, mobilise its implementation and support it until it becomes financially viable Deploy the system countrywide after the establishment of the RTIA Road Traffic Management Corporation (RTMC): Achieve an acceptable level of road traffic safety through an integrated, co-operative and coordinated approach towards strategic planning, regulation and control of road traffic by all spheres of Government Transfer of functions to the RTMC Identify new functions to achieve the objectives of the RTMC Fully develop the RTMC over the medium term Land Transport Management Sector and Enterprise Reforms

15. ObjectiveOutput Promotion of a balanced and sustainable sustainable rural transport system Finalise and facilitate the implementation of the Rural Transport strategy by:  Promoting investment in rural transport infrastructure  Addressing rural freight and passenger transport needs Increase transport mobility and accessibility in rural areas Pilot projects to promote and sustain non motorised transport modes Transport Policy and Regulation Rural Transport Development

16. ObjectiveOutput Intelligent Transport Systems: The adoption of Intelligent Transport Systems by transport service providers and stakeholders, which will enhance the facilitation of an integrated transport system Finalise the Electronic Management System’s norms and standards Intelligent Transport System policy framework Transport Policy and Regulation Transport Information Systems

17. ObjectiveOutput Restructuring of the passenger railway sector: Facilitate institutional railway reform Finalise the National Rail Transport Policy Strategic Rail Transport Plan and oversee its implementation Establish an Economic Railway Regulator Black Economic Empowerment (BEE) Strategy: Achieve RDP objectives and sustain economic growth and development Roll out the BEE Strategy and Charter and monitor and evaluate the implementation thereof National Freight Logistics Strategy: Promote seamless movement of goods and services Implement the National Freight Logistics Strategy Transport Policy and Regulation Sector and Enterprise Reforms

18. ObjectiveOutput Environmental Transport Policy: Promote an environmentally and financially sustainable transport system Finalise and implement an Environmental Transport Policy Aviation and Maritime Policies and Regulations: Efficient regulation of the aviation and maritime industries Aviation and maritime policies and regulatory frameworks Maintain a database to ensure the effective regulation of the aviation and maritime industries National Ports Authority: Introduce a competitive, efficient and safe port system Establish a National Ports Regulator Facilitate and monitor the phased implementation of enabling legislation Transport Policy and Regulation Sector and Enterprise Reforms

19. ObjectiveOutput Revival of railway branch lines: Achieve a modal balance and split between road and rail freight transport Ensure socio-economic survival of identified communities Identify and promote the revival of railway branch lines that are strategically important for socio-economic development and freight logistics Transport Policy and Regulation Infrastructure Development

20. ObjectiveOutput Aviation: Improve levels of aviation safety and security Monitor the implementation of the International Civil Aviation Organisation (ICAO) conventions Agree on safety standards in SADC Participate in the establishment of an Upper Airspace Control Centre Conduct a regional facilities audit Maritime: Improve levels of maritime safety and security Facilitate and monitor the implementation of the Safety of Life at Sea (SOLAS) conventions Establish a Maritime Rescue Control Centre (MRCC) Promote the S.A. Search and Rescue (SASAR) Constitution Continue the training of seafarers Transport Policy and Regulation Transport Safety and Security

21. ObjectiveOutput Bus Operations: Provision of affordable and accessible public transport services in targeted areas Conversion of remaining interim bus subsidy contracts to tendered or negotiated contracts Increase BEE participation in the provision of bus transport services Taxi operations: Transform the taxi industry through the taxi recapitalisation process to economical sustainability Implement the taxi recapitalisation strategy Maintain the National Taxi Register Manage and coordinate the formalisation of the taxi industry Rail Operations: Provision of affordable and accessible public railway transport services Manage the upgrading and provision of safe, secure and accessible commuter rail infrastructure Implement automatic fare collection and counter fare evasion systems Public Transport and Planning Public Transport Operations

22. ObjectiveOutput Implementation of the National Land Transport Transitional Act (NLTTA): To enhance the transport sector’s input into Integrated Development Plans (IDP’s) Facilitate and promote the development and implementation of transport plans through demonstration projects Review the NLTTA and develop the remaining regulations to ensure smooth implementation Manage pilot projects for the establishment of Transport Authorities Facilitate the preparation of the Operating License Strategy and Rationalisation Plans in four identified focus areas Public Transport and Planning Public Transport Planning and Promotion

23. Department of Transport Options Proposed

24. Infrastructure Development Road Traffic Management Institutional Reform Public Transport Border Post RoadsNaTISPorts RegulatorRail Operations Strategic National Road Network National Accident Bureau Secondment to ICAO Rail Infrastructure Traffic Control Centres Fraud & CorruptionMembership Fees Mabopane Railway Station Road Inflationary adjustment Public Traffic Call Centre Hammanskraal and Belle Ombre Unitary ChargesOffence SurveysBarrier Control Revival of rail linesArrive AliveBus Operations Disabled Restructuring of Parastatals Options Proposed

25. Option2004/052005/06 R’000 2006/07 Strategic National Road Network905 7751 650 0002 749 000 A total of 13 047 km of provincial road sections was identified by SANRAL and the provinces to form part of the primary road network, to be incorporated as national roads. Of these, 2047 km was already incorporated as national roads and the remainder will be incorporated over the medium term. Due to neglect, maintenance on these roads has to commence urgently to prevent the vast acceleration of costs caused by the delay of road maintenance. Options Proposed: Strategic National Road Network

26. Option2004/052005/06 R’000 2006/07 National Traffic Information System (NaTIS)55 00058 30061 798 NaTIS supports the administration of road traffic legislation by users such as the SAPS, Provinces (for the collection of revenue in excess of R 2bn p.a.) and Local Authorities. The migration to a new system is crucial because of the outdated technology of the existing system. The new system will be compatible with current operating systems, support amendment releases 52 times per year (current 2-3 times), will cost less to maintain and consolidate the various databases into a single properly safeguarded database. Options Proposed:National Traffic Information System

27. Option2004/052005/06 R’000 2006/07 Rail Operations129 260176 991211 131 Funding is required to maintain the deteriorating asset base, to enhance security measures because of increasing vandalism and crime and to fill vacancies to prevent service levels from further decline, to prevent major service cuts and unrealistic fare increases. The amounts include requirements for operating subsidies for the Khayelitsha railway line extension and the introduction of the Hammanskraal to Pretoria service. Options Proposed: Rail Operations

28. Programme2004/052005/06 R’000 2006/07 2Land Transport Management:1 414 9472 500 4623 831 515 Infrastructure Road Traffic Management 1 310 747 104 200 2 400 560 99 902 3 728 100 103 415 3Transport Policy and Regulation:38 45638 49539 490 Institutional Reforms & Regulatory Framework 18 45618 49519 490 Infrastructure20 000 4Public Transport and Planning:533 239520 029896 152 Promotion of Public Transport533 239520 029896 152 Total for All Options1 986 6423 058 9864 767 157 Options Proposed: Summary of all Options

29. Department of Transport Budget Breakdown 2003/2004

30. R million2003/2004 budgetPercentages Rail2 34438,05 Bus2 04433,19 Roads1 27120,64 NATiS661,07 Maritime Safety701,14 Urban Transport Fund420,68 NLTTA220,36 Administration691,12 Land Transport1232,00 Tpt Policy & Regulation771,25 Tpt & Planning310,50 Total6 159100,0 95,13% Budget Breakdown 2003/2004

31. Details Actual 2000/01 Actual 2001/02 Actual 2002/03 Budget 2003/04 Budget 2004/05 R’000 Budget 2005/06 Rail1 747 0001 856 4152 227 4192 343 8402 528 5502 662 143 Bus1 425 7001 714 7961 846 7242 044 0002 158 0402 278 523 Roads701 0811 067 6121 203 0641 270 5561 240 7891 315 236 Other225 694298 105432 818500 313523 793561 620 Total4 099 4754 936 9285 710 0256 158 7096 451 1726 817 522 Growth0,93% 20,43% ( adjustments to baseline) 15,66% ( adjustments to baseline) 7,86%4,75%5,68% Expenditure Estimates & Trends

32. R’ 0002004/052005/062006/07 S.A. Rail Commuter Corporation2 528 5502 662 1432 821 872 S.A. National Roads Agency1 240 7891 315 2361 394 250 Road Accident Fund--- Cross Border Road Transport Agency--- S.A. Maritime Safety Authority6 8947 3087 747 S.A. Civil Aviation Authority6 0296 3906 773 Urban Transport Fund44 02446 66549 465 Road Traffic Management Corporation10 68112 90213 676 Airports Company South Africa--- Air Traffic and Navigation Services--- Railway Safety Regulator15 00020 00021 200 Road Traffic Infringements Agency5 000 5 300 Total3 856 9674 075 6444 320 283 Allocations to Public Entities

33. R’ 0002004/05% of total Budget S.A. Rail Commuter Corporation2 528 55039,2 S.A. National Roads Agency1 240 78919,2 Road Accident Fund- Cross Border Road Transport Agency- S.A. Maritime Safety Authority6 8940,1 S.A. Civil Aviation Authority6 0290.1 Urban Transport Fund44 0240,7 Road Traffic Management Corporation10 6810,2 Airports Company South Africa- Air Traffic and Navigation Services- Railway Safety Regulator15 0000,2 Road Traffic Infringements Agency5 0000,1 Total3 856 96759,8 Allocations to Public Entities

34. R’ 0002004/052005/062006/07 Provinces: Bus Subsidies2 158 0402 276 5232 415 235 Driver’s License Testing Centres9 74510 33010 950 Overloading control17 93818 24919 344 Provinces and Local Authorities: Implementation of NLTTA23 32024 71926 202 Total2 209 0432 329 8212 471 731 Allocations to other spheres of Government

35. R’ 0002004/05% of Budget Provinces: Bus Subsidies2 158 04033,4 Driver’s License Testing Centres9 7450,1 Overloading control17 9380,3 Provinces and Local Authorities: Implementation of NLTTA23 3200,4 Total2 209 04334,2 Allocations to other spheres of Government

36. ? Source of FundsPurposeR million 2003/04 Road Accident Fund Funding made available based on the Arrive Alive Business Plan approved by the Road Accident Fund, Provinces, Department of Transport and the National Treasury 50 Total50 Funding from sources outside of the Medium Term Budget

37. Department of Transport Thank you