Department of Transport

1
Department of Transport

• Medium term expenditure proposals
• 2003/2004 to 2005/2006
• 1 November 2002

2
Contents of Presentation

• Issues influencing the MTEF
• Key Strategic Objectives and Outputs
• Proposed structural changes
• Programmes and budget trends
• Options proposed

3
Issues influencing the MTEF

• Public Transport (Bus, rail and taxi)
• Affordability, sustainability, accessibility,
  recapitalisation of ageing fleets promotion of
  public transport over private transport
• Contractual statutory commitments
• Safety issues relating to Transport
• Implementation of the NLTTA
• NLSTF commitments
• Road Traffic Management Corporation
• Entrenchment of the RTMC
• Transfer of functions to the RTMC

4
Issues influencing the MTEF

• Implementation of the Road to Safety Strategy
• Transport planning
• Establishment of a Railway Safety Regulator
• Establishment of a Road Traffic Infringement
  Agency / Implement AARTO Act
• Aviation Maritime policy review
• Ports reform Ports Authority and Regulator
• Rural transport
• Planning, coordination and policy development
• Accessible transport policy development

5
Issues influencing the MTEF

• Capacity of the Department
• Amended structure proposed
• Need to respond to infrastructure challenges in
  the RSA
• Regional integration (NEPAD)

6
Key Strategic Objectives Outputs
Key Strategic Objectives Outputs
7
Infrastructure Development
Key Strategic Objectives Outputs
Objective Output
Maintain develop strategic national road network Develop implement Road Infrastructure Strategic Framework
Improve rail safety, revival of rail branch lines and promote recapitalisation Create supportive policy and regulatory environment for local economic development
Taxi recapitalisation Provisioning upgrading of taxi facilities
Minimise overloading of vehicles to prevent damage to roads and unsafe operations Develop and implement an effective national strategy for overload control
Promotion of integrated transport in urban nodes Establish transport intermodal facilities in urban renewal nodes
Promote Non Motorised Transport infrastructure Fund promote pedestrian and bicycle infrastructure maintain as part of transport planning process
8
Public Transport
Key Strategic Objectives Outputs
Objective Output
Bus Improve quality and quantity of service and efficiency Replace interim bus contracts with tendered negotiated contracts Increase HDI / BEE participation
Rail Institutional passenger and freight railway reform and reorganisation of the rail framework Finalise the National Rail Transport Policy, develop a Strategic Rail Transport Plan and facilitate its implementation
Taxi Facilitate the recapitalisation process Complete EMS negotiations Coordinate the development and implementation of a roll out plan
9
Transport Safety and Security
Key Strategic Objectives Outputs
Objective Output
Improvement of road safety Facilitate the implementation of the Road to Safety Strategy to reduce casualties and deaths on roads and the cost thereof
Oversee safe railway operations and promote rail safety Establish a Railway Safety Regulator to oversee safety, monitor safety performance, investigate accidents and adopt safety standards
Improve levels of aviation security Ensure that stakeholders implement ICAO standards
Improve levels of aviation safety Oversee impl. of ICAO recommendations Oversee establ. of Upper Airspace Ctrl Centre Agree on safety standards in SADC
Maintain Search Rescue facilities Fishing vessel safety Establish a dedicated MRCC Oversee implementation of training programme for seafarers
10
Transport Planning
Key Strategic Objectives Outputs
Objective Output
Promotion of Public Transport Take initiatives to rectify inefficiencies of the public transport system Review policies for subsidies and planning and develop a public transport service contract model and funding strategy for public transport
Promotion of Rail Transport To have a sustainable rail network that is competitive to road transport Leveling the playing fields between road and rail
Integrated planning Complete the process of integrated transport planning Transport plans for the whole country for input into the IDPs
Develop a new passenger transport policy MIG Coordinate the utilisation of funds made available Finalise the NLTTA into the National Land Transport Act Promote the rollout of transport plans at local level
11
Transport Information Systems
Key Strategic Objectives Outputs
Objective Output
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 Develop an Intelligent Transport System policy framework in support of the interface between modes of transport
Better coordination and planning in transport Develop a transport infrastructure data bank
12
Sector Enterprise Reforms
Key Strategic Objectives Outputs
Objective Output
Ports Regulator Introduce a competitive, efficient and safe port system Establish a Ports Regulator and enabling legislation
RTIA / AARTO implementation Reduce the road traffic offence rate thereby creating a safer environment Establish a Road Traffic Infringements Agency
BEE Strategy To achieve RDP objectives and sustain economic growth and development Create and implement an integrated BEE strategy
13
Sector Enterprise Reforms
Key Strategic Objectives Outputs
Objective Output
Rail reform Facilitate institutional rail reform Develop a Strategic Rail Transport Plan and facilitate its implementation
RTMC Achieve an integrated, cooperative and coordinated approach towards strategic planning, regulation and control of road traffic management Development of the RTMC and the transfer of functions to the RTMC
RSR Oversee safe railway operations and promote rail safety Establish a Railway Safety Regulator to oversee safety, monitor safety performance, investigate accidents and adopt safety standards
14
Rural Transport Development
Key Strategic Objectives Outputs
Objective Output
Promotion of a balanced and sustainable sustainable rural transport system Investment in access roads Improve rural transport infrastructure Redress neglect of non motorised transport Address rural freight and passenger transport needs
Increase transport mobility and accessibility in rural areas Pilot projects to promote and sustain non motorised transport modes Develop SMMEs in support of non motorised transport
15
Accessible Transport(Special Needs)
Key Strategic Objectives Outputs
Acces-sible Trans-port
Objective Output
Cater for special needs in public transport, such as people with disabilities and special categories of passengers (learners and old aged) Short term and long term funding strategy for inclusion of special needs in public transport Phased in provision of public transport for people with special needs Address special needs in taxi recapitalisation, bus contracts and rail recapitalisation
16
Advance NEPAD objectives
Key Strategic Objectives Outputs
Objective Output
Liberalisation of African skies Get more countries to adopt the Yammassoukro Declaration
Establish infrastructure links Plan and implement corridors for linking Africa
Reduction of transport costs through integrated transport planning and infrastructure for the region and the continent Connect physical infrastructure and strengthen market integration of the region and the continent
Promote transport safety and security in the continent Agree on standards and levels of law enforcement at regional level
17
Structural Changes

• Informed by key weaknesses
• No provision for aviation and maritime policy
  development capacity
• Limited capacity for freight policy and planning
  and no capacity for rail policy and planning
• No capacity to deal with transport infrastructure
• Limited capacity to ensure the promotion of
  integrated transport planning including
  integrated land transport infrastructure and
  operations
• Limited capacity to oversee and monitor public
  entities

18
Current Programmes of NDOT

• 1 Administration
• Management
• Ministry
• Office of DG
• Internal audit
• Communication
• Corporate Support Services
• Logistical Management
• Human Resources
• Information Technology
• Financial Administration
• Legal Services
• Secretariate Services
• Capacity Development
• Govt Motor Transport

• 2 Regulation Safety
• Aviation Maritime
• Regulation International
• Air Transport Regulation
• Administration
• Agencies AMR Contracts
• Road Traffic Management
• RTMC
• Information Systems
• Policy Information Mngmt.
• R.T. Management Strategy
• Land Rail Tpt Infrastructure
• National Transport Commission
• AARTO Agency
• Administration

• 3 Policy, Strategy Implementation
• Passenger Transport Policy Development
• Freight Transport Policy Development
• Strategic Support
• Transport information management
• Research Development
• Implementation.
• Passenger Transport Bus
• Passenger Transport Rail
• Passenger Transport Taxi
• Passenger Transport NLTTA
• Urban Transport Fund

19
Current Programmes of NDOT

• 1 Administration
• Management
• Ministry
• Office of DG
• Internal audit
• Communication
• Corporate Support Services
• Logistical Management
• Human Resources
• Information Technology
• Financial Administration
• Legal Services
• Secretariate Services
• Capacity Development
• Govt Motor Transport

• 2 Regulation Safety
• Aviation Maritime
• Regulation International
• Air Transport Regulation
• Administration
• Agencies AMR Contracts
• Road Traffic Management
• RTMC
• Information Systems
• Policy Information Mngmt.
• R.T. Management Strategy
• Land Rail Tpt Infrastructure
• National Transport Commission
• AARTO Agency
• Administration

• 3 Policy, Strategy Implementation
• Passenger Transport Policy Development
• Freight Transport Policy Development
• Strategic Support
• Transport information management
• Research Development
• Implementation.
• Passenger Transport Bus
• Passenger Transport Rail
• Passenger Transport Taxi
• Passenger Transport NLTTA
• Urban Transport Fund

20
Breakdown Programme 2(2002/03)
Roads 82,1
Other 17,9
21
Breakdown Programme 3(2002/03)
Rail 49,8
Other 3,6
Bus 46,6
22
Final budgetsExcluding rollovers
R000
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05
Bus 1 294 435 1 409 269 1 691 796 1 846 724 1 894 000 2 008 040
Rail 1 593 770 1 727 000 1 856 415 2 236 919 2 041 840 2 226 550
Roads 899 944 701 081 1 067 612 1 203 064 1 270 556 1 240 789
Other 264 162 308 095 373 888 476 392 417 169 420 851
Total 4 052 311 4 145 445 4 989 711 5 763 099 5 623 565 5 896 230
Growth N/a 2,30 20,37 15,50 -2,42 4,85
23
Growth in final budgets Excluding rollovers
2000/01 2001/02 2002/03 2003/04 2004/05
Bus 8.87 20,05 9,16 2.56 6.02
Rail 8,36 7,49 20,50 -8,72 9.05
Roads -22,10 52,28 12,69 5,61 -2,34
Other 16,63 21,35 27,42 -12,43 0,88
Total 2,30 20,37 15,50 -2,42 4,85
24
Growth in final budgets Excluding rollovers
Details for Bus and Rail Effect on growth as a percentage Effect on growth as a percentage Effect on growth as a percentage Effect on growth as a percentage
Details for Bus and Rail 2001/02 2002/03 2003/04 2004/05
Bus subsidies
Additional R 150 m and R 40 m 10,64 2,40
Growth would have been 9,40 17,18 4,83
Rail subsidies
Rail capital R 60 m 3,23
Rail extensions R 86 m 4,63
Rail subsidies R 160 m 8,62
Growth would have been 4.01 5,74
25
Growth in final budgets Excluding rollovers
R000
Roads 2000/01 2001/02 2002/03 2003/04 2004/05
Breakdown of Roads budgets Breakdown of Roads budgets
Baseline 609 881 873 612 1 061 064 1 170 556 1 240 789
Poverty relief 94 000 100 000 100 000
Lubombo SDI 50 000 100 000
Flood damage 41 200
Border post roads 42 000
Growth in baseline Budgets only -21,30 43,24 21,46 10,32 6,00
Growth excluding R 292 m adjustment 16,38 -3,13 21,46 10,32 6,00
26
Growth in final budgets Excluding rollovers
2000/01 2001/02 2002/03 2003/04 2004/05
16,63 21,35 27,42 -12,43 0,88
Ship contracts were under budgeted Legal Section, Secretariat, Int. Audit Ship contracts reprioritised Ship contracts reduces not yet adjusted
R 19 m bus investigations Natis contract Road safety education Road safety Discontinued Natis upgrades completed
Upgrading of DLTCs AARTO AARTO discontinued DLTCs discontinued
NLTTA NLTTA Reduction PSI
Capacity Dev. No Inflation
Balance grew by 5,42 Balance grew by 4,92 Balance grew by 4,52 Balance grew by 3,73 Balance grew by 4,21
27
Options proposed
Options proposed

• 1 Promotion of Public Transport
• 2 Transport Infrastructure Development
• 3 Safety issues
• 4 Institutional Reforms and the Regulatory
• Framework

28
Components of Options
Options proposed
29
Options proposed
1 Promotion of Public Transport
R000
Details 2003/04 2004/05 2005/06
Building transport capacity 3000 - -
Inadequate funding level for Rail subsidies to maintain current level of services including funding for operational subsidies for Khayelitsha 325 160 267 850 293 742
Providing affordable public bus transport. Inadequate funding will result in deterioration of safety levels, closing of services and disinvestment in strategic assets 518 916 724 653 649 095
Total 847 076 992 503 942 837
30
Options proposed
1 Promotion of Public Transport
R000
Details 2003/04 2004/05 2005/06
Building transport capacity 3000 - -
Inadequate funding level for Rail subsidies to maintain current level of services including funding for operational subsidies for Khayelitsha 325 160 267 850 293 742
Providing affordable public bus transport. Inadequate funding will result in deterioration of safety levels, closing of services and disinvestment in strategic assets 518 916 724 653 649 095
Total 847 076 992 503 942 837
Recommendations by MTEC for Public transport
subsidies
R350m R450m R500m
31
Options proposed
2 Transport Infrastructure Development
R000
Details 2003/04 2004/05 2005/06
Create of a Division for Strategic Infrastructure Planning 14 378 14 382 15 245
Upgrading of taxi facilities 282 166 282 167 282 167
Road infrastructure for 52 Border posts 62 000 47 000 5 000
Taking over 13 000 km of Provincial roads into the Strategic National Road Network 325 000 880 000 1 650 000
Establish a national network of Traffic Control Centres for overloading control 180 000 220 000 200 000
Cost of Road maintenance material 117 000 124 000 132 000
Total 980 544 1 567 549 2 284 412
32
Options proposed
2 Transport Infrastructure Development
R000
Details 2003/04 2004/05 2005/06
Create of a Division for Strategic Infrastructure Planning 14 378 14 382 15 245
Upgrading of taxi facilities 282 166 282 167 282 167
Road infrastructure for 52 Border posts 62 000 47 000 5 000
Taking over 13 000 km of Provincial roads into the Strategic National Road Network 325 000 880 000 1 650 000
Establish a national network of Traffic Control Centres for overloading control 180 000 220 000 200 000
Cost of Road maintenance material 117 000 124 000 132 000
Total 980 544 1 567 549 2 284 412
Recommendations by MTEC for this Option
R 0 R 0 R 0
33
Options proposed
3 Safety issues relating to transport
R000
Details 2003/04 2004/05 2005/06
Appoint an Inspectorate to deal with the transportation of dangerous goods 6 877 9 265 12 026
Enable the Railway Safety Regulator to develop regulations, oversee railway safety and to develop and monitor the implementation of railway safety standards 10 000 20 727 21 497
Top up the currently under funded weighing operations regarding overloading control. A National Overloading Control Fund must still be implemented 10 000 15 000 20 000
Total 26 877 44 992 53 523
34
Options proposed
3 Safety issues relating to transport
R000
Details 2003/04 2004/05 2005/06
Appoint an Inspectorate to deal with the transportation of dangerous goods 6 877 9 265 12 026
Enable the Railway Safety Regulator to develop regulations, oversee railway safety and to develop and monitor the implementation of railway safety standards 10 000 20 727 21 497
Top up the currently under funded weighing operations regarding overloading control. A National Overloading Control Fund must still be implemented 10 000 15 000 20 000
Total 26 877 44 992 53 523
Recommendations by MTEC R6,8m R9,2m R12m
Recommendations by MTEC R5m R10m R15m
35
Options proposed
4 Institutional Reforms and the Regulatory
Framework
R000
Details 2003/04 2004/05 2005/06
Establishment of a Road Traffic Infringement Agency / Implement the AARTO Act over the MTEF period 13 000 - -
Fund the RTMC until the Corporation can generate its own revenue 11 569 16 105 23 370
Establishment of a MRCC - discontinued by the SANDF 3 931 4 285 4 755
Subsidy to SACAA 5 500 - -
Oil pollution prevention services 7 160 7 600 8 050
AMR - Membership fees, Regulating Committee, Air Services Licensing Councils, Capacity building, Policy review, Awareness and new Maritime legislation 9 856 9 374 10 592
Total 51 016 37 364 46 767
36
Options proposed
4 Institutional Reforms and the Regulatory
Framework
R000
Details 2003/04 2004/05 2005/06
Establishment of a Road Traffic Infringement Agency / Implement the AARTO Act over the MTEF period 13 000 - -
Fund the RTMC until the Corporation can generate its own revenue 11 569 16 105 23 370
Establishment of a MRCC - discontinued by the SANDF 3 931 4 285 4 755
Subsidy to SACAA 5 500 - -
Oil pollution prevention services 7 160 7 600 8 050
AMR - Membership fees, Regulating Committee, Air Services Licensing Councils, Capacity building, Policy review, Awareness and new Maritime legislation 9 856 9 374 10 592
Total 51 016 37 364 46 767
Recommendations by MTEC for this Option
R 0 R 0 R 0
37
Options proposed
Summary of Options and MTEC proposals
R Million
R Million
Option Options proposed Options proposed Options proposed MTEC proposals MTEC proposals MTEC proposals
Option 2003/04 2004/05 2005/06 2003/04 2004/05 2005/06
Promotion of Public Transport 847 993 943 350 450 500
Transport Infrastructure Development 981 1 568 2 284 - - -
Safety issues relating to Transport 27 45 54 11,8 19,2 27,0
Institutional Reforms and Regulatory Framework 51 37 47 - - -
Total 1 906 2 643 3 328 361,8 469,2 527,0
38
End of Presentation
39
Baseline Budget Allocations per Programme
R000
Details 2002/03 2003/04 2004/05 2005/06
Administration 54 082 58 093 61 829 65 539
Regulation Safety 1 413 542 1 508 143 1 471 541 1 559 833
Policy, Strategy Implementation 3 836 307 4 015 797 4 318 836 4 577 966
Urban Transport Fund 39 744 41 532 44 024 46 665
Total 5 343 675 5 623 565 5 896 230 6 250 003
40
Baseline budget allocations
R000
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05
Bus 1 294 435 1 409 269 1 541 796 1 806 724 1 894 000 2 008 040
Rail 1 161 770 1 727 000 1 716 415 1 930 919 2 041 840 2 226 550
Roads 774 944 659 881 1 017 612 1 161 064 1 270 556 1 240 789
Other 264 162 297 459 371 968 444 968 417 169 420 851
Total 3 495 311 4 093 609 4 647 791 5 343 675 5 623 565 5 896 230
Growth N/a 17,12 13,54 14,97 5,24 4,85
41
Growth in baseline budgets
2000/01 2001/02 2002/03 2003/04 2004/05
Bus 8.87 9.4 17.18 4.83 6.02
Rail 48.65 -0.61 12.5 5.74 9.05
Roads -14.85 54.21 14.1 9.43 -2.34
Other 12.6 25.05 19.63 -6.25 .88
Total 17.12 13.54 14.97 5.24 4.85
42
Growth in baseline budgets
2000/01 2001/02 2002/03 2003/04 2004/05
Other 12.6 25.05 19.63 -6.25 .88
Effect on above growth of high growth items Effect on above growth of high growth items Effect on above growth of high growth items Effect on above growth of high growth items
Telkom Pentow 3,92
Bus investigations 7,55
NATIS 4,89
RTMC 1,04
DLTCs 7,23
NLTTA 2,58 2,97 (2,25)
Administration 2,32
RTM Communication 1,57 5,44
AARTO 4,57 (3,82)
Taxi 2,69 (2,25)
Total 11,47 19,63 15,67 (8,32)