ATC210512: Report of the Portfolio Committee on Transport on Budget Vote 40: Transport and Strategic Plans and Annual Performance Plans 2021-22 of the Department of Transport and Entities Reporting to the Minister of Transport, Dated 12 May 2021

Transport

REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT ON BUDGET VOTE 40: TRANSPORT AND STRATEGIC PLANS AND ANNUAL PERFORMANCE PLANS 2021-22 OF THE DEPARTMENT OF TRANSPORT AND ENTITIES REPORTING TO THE MINISTER OF TRANSPORT, DATED 12 MAY 2021

 

The Portfolio Committee of Transport, having considered the Strategic Plans, Annual Performance Plans and Budget (Vote 40: Transport) of the Department of Transport and the entities reporting to the Minister of Transport, reports as follows:

 

1.         INTRODUCTION

The Portfolio Committee on Transport (the Committee) considered the 2021/22 budget of the Department of Transport (the Department) on 4 May 2021. This report contains a summary of the Department’s budget allocation and the observations and recommendations of the Committee on the budget. In preparation for this report, the Committee was briefed on the 2021/22Revised Strategic Plan, Annual Performance Plan (APP) and Budget Allocations of the Department of Transport.

 

The Committee further hereto engaged with tenof the Department’s entities on their Strategic/Corporate Plans and APPs for 2021/22 – 4 May 2021 (with the Department and the Driving Licence Card Account (DLCA) , Railway Safety Regulator (RSR)and the Passenger Rail Agency of South Africa (PRASA)), 5 May 2021 (Airports Company South Africa (ACSA), South African National Roads Agency Limited (SANRAL), Cross-Border Road Transport Agency (C-BRTA) and the South African Maritime Safety Authority (SAMSA)) and 7 May 2021 (Road Accident Fund (RAF), Road Traffic Infringement Agency (RTIA) and the Road Traffic Management Corporation (RTMC)). Although the Committee could not engage with all of the Department’s entities prior to compiling this report, it had received the Strategic/Corporate Plans and APPs from all of the entities.

 

The report details an overview of the performance of the Department during 2020/21, policy priorities for 2021/22 and and how they are aligned with national, regional, continental and global developmental agendas. It also analyses the 2021/22 budgets of the Department and its entities. The report further covers the tabled 2021/22 Strategic/Corporate Plans and APPs of the entities. It concludes by capturing the observations and recommendations made by the Portfolio Committee on Transport in this regard.

 

The Committee met with the following entities:

1.         Airports Company South Africa (ACSA);

2.         Cross-Border Road Transport Agency (C-BRTA);

3.         Driving Licence Card Account (DLCA);

4.         Passenger Rail Agency of South Africa (PRASA);

5.         Road Accident Fund (RAF);

6.         Road Traffic Infringement Agency (RTIA);

7.         Road Traffic Management Corporation (RTMC);

8.         Railway Safety Regulator (RSR);

9.         South African Maritime Safety Authority (SAMSA); and

10.        South African National Roads Agency Limited (SANRAL).

 

Due to time constraints the Committee could not meet with the following entities:

1.         Air Traffic and Navigation Services (ATNS);

2.         Ports Regulator of South Africa (PRSA); and

3.         South African Civil Aviation Authority (SACAA).

 

The report on the budget of the Department is based on information accessed through:

• The 2021 State of the Nation Address (SONA);
• The Department of Transport’s APP for 2020/21 and 2021/22 and its Budget Allocation outlined in the Budget Review for 2021/22; and
• The National Development Plan (NDP).

 

 

2.         mandate of the department of transport

 

The Constitution of the Republic of South Africa, 1996, identifies the legislative responsibilities of different spheresof Government pertaining to airports, roads, traffic management and public transport. At a policy level, the National White Paper on Transport, 1996, defines the infrastructure and operations of rail, pipelines, roads, airports, ports and the intermodal operations of public transport and freight. To this effect, the function of transport, in its entire value chain, is legislated and executed at the three spheresof Government (national, provincial and local (municipal)).

 

To ensure integrated planning and coordination between the three spheres of Government, the South African Inter-Governmental Relations Framework Act (No. 13 of 2005) emphasises that the three spheres are distinctive, interdependent and interrelated. The three spheresare thus autonomous. Notwithstanding their autonomy, the three spheres must plan together for the utilisation of scarce resources, as well as to ensure the achievement of Government priorities.

 

At a national level, the Department  is responsible for the formulation of legislation and policies for all transport sub-sectors. The Department is therefore entrusted with:[1]

• Conducting sector research;
• Formulating legislation and policies to set the strategic direction of sub-sectors;
• Assigning responsibilities to public entities and other spheres of Government;
• Regulating through setting norms and standards; and
• Monitoring implementation.

 

The implementation of transport functions takes place through public entities that have been established to enhance implementation and support service delivery. Each entity has a specific delivery mandate, as specified in its founding legislation. The Department is tasked with the oversight of the regulation and delivery of transport through these entities.

 

The other leg of the implementation of transport functions lies with provinces. In this regard, the Department has concurrent functions of public transport and transport regulation with provinces. Public transport is a concurrent schedule 4A function between national and provincial spheres, and provincial roads and traffic are an exclusive schedule 5A provincial function. To ensure that there is uniformity in planning and reporting towards the achievement of Government and/or sector priorities, the Department needs to coordinate the development and implementation of standardised/customised indicators. These indicators, developed in consultation with all relevant stakeholders, must reflect key applicable deliverables of the sector plan and/or the Medium Term Strategic Framework (MTSF).

 

Once developed, accounting officers of relevant provincial departments that are responsible for the implementation of these indicators must then approve such prior to their inclusion in their respective Strategic Plans (SPs) and APPs. Provinces would then gazette and report on standardised indicators on a quarterly and annual basis, with the National Department playing an oversight role over provinces. This is intended to ensure that standardised indicators respond to the legislative and policy direction of the sector.

 

At a local (municipal) level, coordination and integration takes place through the development of integrated transport plans, which are facilitated through municipalities’ integrated development planning (IDP) processes. Municipal transport is a concurrent schedule 4B function falling in the local government sphere. Municipal roads, traffic and parking are exclusive 5B municipal functions.

 

 

2.1organisational structure of the department

 

In an endeavour to discharge its mandate effectively and efficiently, the Department is structured as follows:[2]

• Programme 1: Administration;
• Programme 2: Integrated Transport Planning;
• Programme 3: Rail Transport;
• Programme 4: Road Transport;
• Programme 5: Civil Aviation Transport;
• Programme 6: Maritime Transport; and
• Programme 7: Public Transport.

 

The Department’s organisational structure was approved in September 2011, and it was implemented from November 2011.[3] The structure comprises four transport modes (rail, road, civil aviation and maritime transport), as well as public transport and integrated transport planning. Support functions, particularly in the Office of the Director-General, Office of the Chief Operations Officer and the Office of the Chief Financial Officer fall under the Administration programme.

 

2.2strategic outcomes oriented goals of the department

 

The Department has identified the following eight (8) areas that it will prioritise in 2021/22, in response to the MTSF (2019 – 2024):[4]

1. Safety as an enabler of service delivery;
2. Public transport that enables social emancipation and an economy that works;
3. Infrastructure build that stimulates economic growth and job creation;
4. Building a maritime nation, elevating the oceans economy;
5. Accelerating transformation towards greater economic participation;
6. Innovation that advances efficiencies and supports a continuous improvement model;
7. Environmental protection – Recovering and maintaining a healthy natural environment; and
8. Governance – Greater efficiency, effectiveness and accountability.

 

The Department contributes to the realisation of the vision of improved social and economic development articulated in the NDP. Transport infrastructure and services support economic growth and development by connecting people and goods to markets. The development and maintenance of an efficient and competitive transport system is a key objective of the NDP. To this effect, the Department, in partnership with the sector public entities, provincial and local government, will continue to focus on improving mobility and access to social and economic activities.[5]

 

In addition, the Department gives impetus to priority 1 (economic transformation and job creation) and priority 4 (spatial integration, human settlements and local government) of Government’s 2019-2024 MTSF. Over the medium-term, the Department plans to give effect to these guiding policies by focusing on:[6]

• Building and maintaining national and provincial road networks;
• Providing passenger rail infrastructure and services; and
• Facilitating the provision of integrated public transport networks.

 

2.3PROGRAMME AND SUB-PROGRAMME PLANS (annual and QUARTERLY TARGETS)

 

2.3.1 Programme 1: Administration

 

The Administration programme provides leadership, strategic management and administrative support to the Department. It achieves this through continuous refinement of organisational strategy and structure, in line with appropriate legislation and best practice. 

 

The following annual and quarterly performance targets are set in the Administration programme:[7]

 

Sub-Programme: Director-General (DG) Administration

 

Table 1: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
Percentage implementation of the stakeholder plan	100% implementation of the stakeholder plan	-	-	-	Annual status report on the implementation of the stakeholder plan
Percentage responses to parliamentary questions within stipulated timelines	100% responses to parliamentary questions	-	Bi-Annual Report on the status of responses to Parliamentary questions	-	Annual Report on the status of responses to parliamentary questions

(Source: Department of Transport (2021))

 

 

Sub-Programme: Strategic Planning, Monitoring and Evaluation

 

Table 2: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
Revised DoT Strategic Plan approved by Executive Authority	Approved Revised DoT Strategic Plan (2020-25) Implemented	-	-	-	Progress Report on the implementation of the DoT Revised Strategic Plan (2020-25)
DoT Annual Performance Plan approved by Executive	Annual Performance Plan (2022/23) approved	-	-	Submit the Draft APP 2022/23 to the Department of Planning, Monitoring and Evaluation (DPME)	Submit approved DoT APP to Parliament for tabling
DoT Annual Report approved by Executive Authority	Annual Report (2020/21) approved	-	Submit the Draft DoT Annual Report (2020/21) to the Office of the Auditor-General of South Africa (AGSA)	Submit approved DoT Annual Report (2020/21) to Parliament for tabling	-

(Source: Department of Transport (2021))

 

 

Sub-Programme:  Chief Audit Executive

 

Table 3: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
Percentage resolution of reported incidents of corruption	95% resolution of reported incidents of corruption	-	Bi-Annual Report on progress made to resolve reported incidents of corruption	-	Annual Report on steps taken to ensure resolution of reported incidents of corruption

(Source: Department of Transport (2021))

 

 Sub-Programme: Human Resource Management and Development

 

Table 4: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
Number of vacant positions filled	50 posts filled	Fill 10 vacant positions	Fill 15 vacant positions	Fill 15 vacant positions	Fill 10 vacant positions
Ethics committees established and operationalised	Operations of departmental ethics committees monitored	-	Bi-Annual Report on the status and operations of ethics committees in the Department	-	Annual Report on the status and operations of ethics committees in the Department
% of employees trained in line with the Workplace Skills Plan (WSP)	50% of employees trained	Expose 10% of employees to skills- based training as per the WSP	Expose 15% of employees to skills-based training as per the WSP	Expose 15% of employees to skills-based training as per the WSP	Expose 10% of employees to skills-based training as per WSP
Number of bursaries managed	160 bursaries managed	Advertise and award bursaries for the first Semester	Management of existing bursaries	Advertise and award bursaries for the second Semester	Management of existing bursaries
Number of interns employed	(Managementof contracted interns)	-	- (Bi-annual status report on the Internship Programme)	-	- (Annual status report on the internship programme)

(Source: Department of Transport (2021))

 

 

Sub-Programme: Budgeting and Compliance

 

Table 5: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
Percentage implementation of action plans to address audit findings	100% implementation of action plans to address audit findings	-	-	Develop action plans to address audit findings raised by the AGSA for the 2019/20 financial year	Annual Report on the implementation of action plan to address audit findings raised by the AGSA for the 2019/20 financial year.

(Source: Department of Transport (2021))

 

Sub-Programme: Financial Administration and Supply Chain Management

 

Table 6: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
Percentage reduction of cases of wasteful and fruitless expenditure	25% reduction of cases of wasteful and fruitless expenditure	-	Bi-Annual Report on steps taken to reduce wasteful and fruitless expenditure in the Department	-	Annual Report on steps taken to reduce wasteful and fruitless expenditure in the Department
Percentage of cases of reduction of irregular expenditure	25% reduction of cases of irregular expenditure	-	Bi-Annual Report on steps taken to reduce irregular expenditure in the Department	-	Annual Report on steps taken to reduce irregular expenditure in the Department
Percentage compliance to 30-day payment requirement	100% compliance to 30-day payment requirement	-	Bi-Annual Report on steps taken to ensure compliance with 30-day payment requirement	-	Annual Report on steps taken to ensure compliance with 30-day payment requirement

(Source: Department of Transport (2021))

 

Sub-Programme: Public Entity Oversight

 

Table 7: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Updated shareholder compacts for sector state-owned entities	Shareholder compacts of sector state-owned entities updated for the financial year	-	-	-	Annual report on the status of shareholder compacts
Competitive and Accessible Markets
Selected stations on identified priority rail corridors modernised	Analysis Report on the PRASA Modernisation Programme   Central Line (WC); and Mabopane-Pretoria Line (GP)	-	Annual (2020/21) Analysis Report on the PRASA Modernisation Programme	-	-
Number of jobs created	Analysis Report on jobs created through PRASA Infrastructure Programme   10 000 jobs	-	Annual (2020/21) Analysis Report on jobs created through PRASA Infrastructure Programme	-	-
Public Transport
Number of passenger rail trips	Analysis Report on PRASA Rail Operations 69 million passenger rail	-	Annual (2020/21) Analysis Report on PRASA Rail Operations	-	-
Safer Transport Systems
Number of rail safety occurrences reported	Annual Report on reported rail safety occurrences 748 occurrences	-	Annual (2020/21) Analysis Report on rail safety analysis	-	-
Number of rail security occurrences reported	Annual Report on reported rail security occurrences 4 258 occurrences	-	Annual (2020/21) analysis of rail security occurrences	-	-
Programmes to address gender-based violence in the rail transport sector implemented	Annual Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the rail transport sector	-	Bi-Annual Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the rail transport sector	-	Annual Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the rail transport sector

(Source: Department of Transport (2021))

 

2.3.2     Programme 2: Integrated Transport Planning

 

The Integrated Transport Planning programme seeks to integrate and harmonise key transport sector strategic interventions through continuous development and refining of macro-transport sector policies, strategies and legislation; coordination of development of sector related policies, coordination of sector research activities; coordination of regional and inter-sphere relations; facilitation of sector transformation; and provision of sector economic modelling and analysis.

 

For 2021/22, the Department has set itself the following annual and quarterly targets in the Integrated Transport Planning programme:[8]

 

Sub-Programme: Macro Sector Planning

 

Table 8: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Leadership, Governance and Accountability
Percentage achievement of commitments in “One Plans” of District Municipalities	Draft “One Plans” developed in King Cetshwayo and Mangaung District Municipalities	-	Bi-Annual  Progress Report on the development of draft “One Plans” for King Cetshwayo and Mangaung District Municipalities	-	Annual Progress Report on the development of draft “One Plans” for King Cetshwayo and Mangaung District Municipalities

(Source: Department of Transport (2021))

 

Sub-Programme: Research and Innovation

 

Table 9: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Innovation
Regulations for Autonomous Vehicle Technology approved	Draft Regulations for Autonomous Vehicle Technology developed	Conduct stakeholder consultations to assess gaps in the regulation of Autonomous Vehicles in South Africa	Develop terms of reference for the drafting of regulations for autonomous vehicle technology	Develop an inception report for the drafting of regulations for autonomous vehicle technology	Develop draft regulations for autonomous vehicle technology
Reduction in Greenhouse Gas Emissions and Pollution
Carbon Emission Transition Plan implemented	Draft Green Procurement Guidelines for land transport developed	Develop a baseline report for Green Procurement Guidelines for land transport	Conduct stakeholder consultations on the development of Green Procurement Guidelines for land transport	Conduct stakeholder consultations on the development of Green Procurement Guidelines for land transport	Consider stakeholder inputs and develop draft Green Procurement Guidelines for land transport

(Source: Department of Transport (2021))

 

Sub-Programme: Modelling and Economic Analysis

 

Table 10: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Economic Regulation of Transport (ERT) Bill approved by Parliament	Economic Regulation of Transport (ERT) Bill approved by Parliament	- (Parliamentary process)	- (Parliamentary process)	-(Parliamentary process)	- (Parliamentary process)   ERT Bill approved by Parliament
Public Transport
National Household Travel Survey (NHTS) conducted	NHTS reports produced for all provinces	Produce NHTS reports for two (2) provinces	Produce NHTS reports for two (2) provinces	Produce NHTS reports for two (2) provinces	Produce NHTS reports for three (3) provinces

(Source: Department of Transport (2021))

 

Sub-Programme: Regional Integration

 

Table 11: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Regional Integration Strategy approved by Cabinet.	Draft Regional Integration Strategy developed	Conduct stakeholder consultations on the literature review and benchmarking reports	Conduct stakeholder consultations on the literature review and benchmarking reports	Consider and consolidate stakeholder inputs	Develop the draft Regional Integration Strategy

(Source: Department of Transport (2021))

 

Sub-Programme: Freight Logistics

 

Table 12: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Freight Migration Plan (Road to Rail) implemented	Freight Migration Plan (Road to Rail) developed	Conduct stakeholder consultations on the development of the Freight Migration Plan	Consider stakeholder inputs into the initial draft of the Freight Migration Plan	Develop the draft of the Freight Migration Plan	Develop final draft of the  Freight Migration Plan

(Source: Department of Transport (2021))

 

2.3.3     Programme 3: Rail Transport

 

The Rail Transport programme facilitates and coordinates the development of sustainable rail transport policies, rail economic and safety regulation, infrastructure development strategies; and systems that reduce system costs and improve customer service. The programme also monitors and oversees the Railway Safety Regulator (RSR) and the Passenger Rail Agency of South Africa (PRASA). In addition, it monitors and oversees the implementation of integrated rail services planned through the local sphere of Government.

 

The planned annual and quarterly targets in the Rail Transport programme are as follows:[9]

 

Sub-Programme: Rail Regulation

 

Table 13: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Safer Transport Systems
Railway Safety Bill approved by Parliament	Railway Safety Bill approved by Parliament	Railway Safety Bill submitted to Parliament	- (Parliamentary processes)	- (Parliamentary processes)	- (Parliamentary processes)   Railway Safety Bill approved by Parliament
Competitive and Accessible Markets
National Rail Bill approved by Parliament	National Rail Bill approved for submission to Cabinet	Develop the draft National Rail Bill	Conduct stakeholder consultations on the National Rail Bill	Submit the National Rail Bill to the ESEID[10] Cluster	Submit the National Rail Bill for Ministerial approval to submit to Cabinet

(Source: Department of Transport (2021))

 

 

Sub-Programme: Rail Infrastructure and Industry Development

 

Table 14: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Safer Transport Systems
Private Sector Participation (PSP) Framework approved by Cabinet	PSP Framework approved for submission to Cabinet	-	Consider stakeholder inputs and develop final Draft PSP Framework	Submit final Draft PSP Framework to ESEID Cluster	Submit final draft PSP Framework for Ministerial approval to submit to Cabinet
High-Speed Rail (HSR) Corridor Framework approved by Cabinet	HSR Corridor Framework approved for submission to Cabinet	-	Consider stakeholder inputs and develop final draft HSR Corridor Framework	Submit final draft HSR Corridor Framework to the ESEID Cluster	Submit final draft HSR Corridor Framework for Ministerial approval to submit to Cabinet
Number of new train sets rolled out on priority corridors	Analysis Report on the Rolling Stock Fleet Renewal Programme    35 train sets	Annual (2020/21) Analysis Report on the Rolling Stock Fleet Renewal Programme	-	-	-

(Source: Department of Transport (2021))

 

 

2.3.4     Programme 4: Road Transport

 

The Road Transport programme develops and manages an integrated road infrastructure network. In addition, the programme regulates road transport, and ensures safer roads. Finally, it oversees road agencies. 

 

For 2021/22, the planned annual and quarterly targets in the Road Transport programme are the following:[11]

 

Sub-Programme: Road Transport Regulation

 

Table 15: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Safer Transport Systems
Implementation of the National Road Safety Strategy monitored	Annual Monitoring Report on the implementation of the National Road Safety Strategy	Quarterly Monitoring Report on the implementation of the National Road Safety Strategy	Quarterly Monitoring Report on the implementation of the National Road Safety Strategy Quarterly	Quarterly Monitoring Report on the implementation of the National Road Safety Strategy Quarterly	Annual Monitoring Report on the implementation of the National Road Safety Strategy
General Laws Amendment Bill approved by Parliament	Draft General Laws Amendment Bill developed	Develop the draft General Laws Amendment Bill	Conduct stakeholder consultations on the draft General Laws Amendment Bill	Conduct stakeholder consultations on the draft General Laws Amendment Bill	Consider stakeholder inputs and develop the final draft General Laws Amendment Bill
Road Traffic Law Enforcement Entities integrated into one	Stakeholder consultations conducted on the integration of RTMC, RTIA and DLCA	Establish task team to map the process of integration of road traffic law enforcement entities	Conduct stakeholder consultations on the integration of road traffic law enforcement entities	Conduct stakeholder consultations on the integration of road traffic law enforcement entities	Consolidate stakeholder inputs and compile report on progress made on the integration of road traffic law enforcement entities
National Road Traffic (NRT) Amendment Bill approved by Parliament	Draft National Road Traffic Amendment Bill approved by Cabinet for introduction to Parliament	- (Cabinet processes)	- (Cabinet processes)	- (Cabinet processes)	- (Cabinet processes)   NRT Amendment Bill approved by Cabinet
Leadership, Governance and Accountability
National Anti-Fraud and Corruption (NAFC) Strategy for the Road Traffic Environment approved by Cabinet	NAFC Strategy for the Road Traffic Environment Strategy approved for submission to Cabinet	Publish NFC Strategy for the Road Traffic Environment for public comments	Consider inputs and submit updated NAFC Strategy to NEDLAC[12]	Submit the NAFC Strategy for the Road Traffic Environment Strategy to the Presidency for socioeconomic impact assessment	Submit the NAFC Strategy for the Road Traffic Environment Strategy for Ministerial approval to submit to Cabinet

(Source: Department of Transport (2021))

 

Sub-Programme: Road Infrastructure and Industry Development

Table 16: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Road Infrastructure Funding Policy implemented	Road Infrastructure Funding Policy developed	-	-	-	Develop draft Road Infrastructure Funding Policy
Surfaced roads maintained (National)	Analysis Report on the SANRAL Road Maintenance Programme	-	Annual (2020/21) Analysis Report on the SANRAL Road Maintenance Programme 22 253 km under routine maintenance 600 km upgraded 1 000 km resurfaced	-	-
Surfaced roads maintained (Provincial) Gravel Roads maintained (Provincial)	Annual Monitoring  Report on the Provincial Road Maintenance Programme	Quarterly Monitoring Report on the Provincial Road Maintenance Programme	Quarterly Monitoring Report on the Provincial Road Maintenance Programme	Quarterly Monitoring Report on the Provincial Road Maintenance Programme	Annual Monitoring Report on the Provincial Road Maintenance Programme
Number of jobs created through the SANRAL Road Maintenance Programme	Analysis Report on jobs created through the SANRAL Road Maintenance Programme 10 000 jobs	-	Annual (2020/21) Analysis Report on jobs created through the SANRAL Road Maintenance Programme	-	-
Number of jobs created through the Provincial Road Maintenance Programme	Annual Monitoring Report on jobs created through the Provincial Road Maintenance Programme 209 904 jobs	Quarterly Monitoring Report on jobs created through the Provincial Road Maintenance Programme	Quarterly Monitoring Report on jobs created through the Provincial Road Maintenance Programme	Quarterly Monitoring Report on jobs created through the Provincial Road Maintenance Programme	Annual Monitoring Report on jobs created through the Provincial Road Maintenance Programme

(Source: Department of Transport (2021))

 

 

2.3.5     Programme 5: Civil Aviation Transport

 

The Civil Aviation Transport programme facilitates the development of an economically viable air transport industry that is safe, secure, efficient, environmentally friendly and compliant with international standards through regulations and investigations. It also oversees aviation public entities.

 

The Department has set itself the following annual and quarterly performance targets in the Civil Aviation Transport programme:[13]

 

Sub-Programme: Aviation Policy and Regulation

 

Table 17: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Number of jobs created	Analysis Report on jobs created through ACSA Infrastructure Programme 8 405 jobs	-	Annual (2020/21) Analysis Report on jobs created through ACSA Infrastructure Programme	-	-
Innovation
Reviewed regulations for Remotely-Piloted Aircraft System (RPAS) approved	Review of Regulations for RPAS approved	-	Progress Report on the Review of Regulations for RPAS developed	-	Progress Report on the Review of Regulations for RPAS developed

(Source: Department of Transport (2021))

 

 

Sub-Programme: Aviation Safety, Security, Environment and Search and Rescue

 

Table 18: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Safer Transport Systems
Percentage reduction in fatal accidents in the aviation sector	Annual Analysis Report on the State of Aviation Safety in South Africa 10% reduction	Quarterly Analysis Report on aviation incidents and accidents	Quarterly Analysis Report on aviation incidents and accidents	Quarterly Analysis Report on aviation incidents and accidents	Quarterly Analysis Report on aviation incidents and accidents
South African Maritime and Aeronautical Search and Rescue Amendment Bill approved by Parliament	Draft South African Maritime and Aeronautical Search and Rescue Amendment Bill approved for submission to Cabinet	Submit the  South African Maritime and Aeronautical Search and Rescue Amendment Bill to the State Law Advisors	Submit the South African Maritime and Aeronautical Search and Rescue Amendment Bill to the ESEID Cluster	Submit the South African Maritime and Aeronautical Search and Rescue Amendment Bill to the ICTS[14] Cluster	Submit the South African Maritime and Aeronautical Search and Rescue Amendment Bill for Ministerial approval to submit to Cabinet

(Source: Department of Transport (2021))

 

 

2.3.6     Programme 6: Maritime Transport

 

The Maritime Transport programme implements the Comprehensive Maritime Transport Policy (CMTP) to ensure promotion and coordination; as well as infrastructure and industry development and achieve compliance through monitoring, evaluation and oversight and collaboration with maritime related public entities, namely, the PRSA, National Ports Authority; SAMSA industry and international bodies. 

 

The set annual and quarterly targets in the Maritime Transport programme are as follows:[15]

 

Sub-Programme: Maritime Policy and Legislation

 

Table 19: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Maritime Development Fund Bill approved by Parliament	Maritime Development Fund Bill approved for submission to Cabinet	Finalise Phase 1 Socio-Economic Impact Assessment (SEIAS) Report	Consider comments of the State Law Adviser	Submit Maritime Development Fund Bill to the ESEID Cluster	Submit the Maritime Development Fund Bill for Ministerial approval to submit to Cabinet
Merchant Shipping Bill approved by Parliament	Merchant Shipping Bill approved for submission to Cabinet	-	Consider comments of the State Law Adviser	Submit Maritime Merchant Shipping Bill to the ESEID Cluster	Submit the Merchant Shipping Bill for Ministerial approval to submit to Cabinet
Reduction in Greenhouse Gas (GHG) and Pollution
Marine Pollution Prevention Amendment Bill approved by Parliament	Amendment Bill approved by Parliament Marine Pollution Prevention Amendment Bill (incorporating Annexes IV and VI) approved by Parliament	(Parliamentary process)	(Parliamentary process)	(Parliamentary process)	(Parliamentary process)   Marine Pollution Prevention Amendment Bill approved by Parliament

(Source: Department of Transport (2021))

 

Sub-Programme: Maritime Infrastructure and Industry Development

 

Table 20: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Transnet National Ports Authority (TNPA) corporatised	Status Report produced on the corporatisation of the TNPA	Conduct consultations on the corporatisation of TNPA with Maritime Industry (PCCs)	Conduct consultations on the corporatisation of TNPA with Maritime Industry (PCCs)	Consider stakeholder consultations and develop draft status report	Finalise status report on the corporatisation of TNPA
Operation Phakisa Oceans Economy Three-Foot Plan monitored	Annual Analysis Report on Operation Phakisa	Status Report on Operation Phakisa with focus on 2020 Fast-tracked Infrastructure Projects  Small Harbours; and  Boegoebaai Port (NC)	Status Report on the Boegoebaai Port and Small Harbours	Status Report on the Boegoebaai Port and Small Harbours	Status Report on the Boegoebaai Port and Small Harbours
Operating Model for a National Shipping Company approved by Cabinet	Business Case for the Model for a National Shipping Company developed	Conduct stakeholder consultations on the concept model for the establishment of a National Shipping Company	Conduct stakeholder consultations on the concept model for the establishment of a National Shipping Company	Develop terms of reference for the development of the business case for a National Shipping Company	Develop the draft business case for the establishment of a National Shipping Company

(Source: Department of Transport (2021))

 

 

Sub-Programme: Maritime Implementation, Monitoring and Evaluation

 

Table 21: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Safer Transport Systems
Analysis Report on reportable maritime safety incident rate	Annual Analysis Report on maritime safety incident rate	-	-	-	Annual Analysis Report on maritime safety incident rate
Analysis Report on reportable maritime fatality rate	Annual Analysis Report on maritime fatality rate	-	-	-	Annual Analysis Report on maritime fatality rate
National Maritime Security Strategy (NMSS) approved by Cabinet	NMSS developed	Conduct stakeholder consultations on the development of the NMSS	Conduct stakeholder consultations on the development of the NMSS	Consider and consolidate stakeholder inputs	Develop the draft NMSS
Reduction in Greenhouse Gas (GHG) Emission and Pollution
Pollution incidents reduced	Annual Analysis Report on maritime pollution incidents	-	-	-	Annual Analysis Report on maritime pollution incidents

(Source: Department of Transport (2021))

 

 

2.3.7 Programme 7: Public Transport

 

The Public Transport programme ensures the provision and regulation of safe, secure, reliable, cost-effective and sustainable public transport services in South Africa through legislation, policies and strategies.

 

The Department has set itself the following annual and quarterly performance targets in the Public Transport programme:[16]

 

 

Sub-Programme: Public Transport Network Development

 

Table 22: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Innovation
Integrated Single Ticketing System approved and implemented	Pilot phase of the Integrated Single Ticketing System rolled out on subsidised public transport operations	Identify and select cities for pilot phase roll out of Integrated Single Ticketing System	Finalise the development of technical integration and on-boarding with the SANRAL system	Implement the test phase of the pilot project in selected cities	Roll out the pilot phase of the system in selected cities
Public Transport
Number of cities operating integrated public transport networks	Integrated Public Transport Network (IPTN) Programme monitored  Nine (9) cities operating IPTNs	Conduct bilateral progress engagements in five (5) selected municipalities	Conduct bilateral progress engagements in five (5) selected municipalities	Conduct bilateral progress engagements in five (5) selected municipalities	Conduct bilateral progress engagements in five (5) selected municipalities
Number of average weekday passenger trips across cities operating IPTNs	200 000 average week day passenger trips in nine (9) cities	Database updated through IPTNs bilateral progress engagements conducted with selected municipalities	Database updated through IPTNs bilateral progress engagements conducted with selected municipalities	Database updated through IPTNs bilateral progress engagements conducted with selected municipalities	Annual Status Report on average weekday passenger trips of the IPTN Programme
Revised BRT specifications and technical norms and standards implemented	10 cities consulted on revised IPTN norms and standards	Conduct a gap analysis on IPTN specifications and technical norms and standards	Revise and updated existing IPTN specifications and technical norms and standards	Conduct consultations on revised IPTN specifications and technical norms and standards with the ten (10) cities implementing IPTNs	Conduct consultations on revised IPTN specifications and technical norms and standards with the ten (10) cities implementing IPTNs
Percentage compliance of IPTN Programme with spatial referencing	25% compliance with spatial referencing of IPTN Programme	-	-	-	Annual Status Report on IPTN Programme compliance with spatial referencing
Percentage compliance of IPTN Programme with universal design norms and standards	Nine (9) cities operating IPTNs complying with universal design norms and standards	-	-	-	Annual Status Report on IPTN Programme compliance with universal design norms and standards
Increased operational hours of BRT[17]	Operational hours of BRTs increased to 16 hours	-	-	-	Annual Status Report on operational hours of BRTs

(Source: Department of Transport (2021))

 

 

Sub-Programme: Public Transport Regulation

 

Table 23: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Public Transport
Transport Appeal Tribunal Amendment Bill approved by Parliament	Transport Appeal Tribunal Amendment Bill processed through Parliament	Introduce the Transport Appeal Tribunal Amendment Bill to Parliament	Parliamentary process	Parliamentary process	Parliamentary process

(Source: Department of Transport (2021))

 

Sub-Programme: Public Transport Industry Development

 

Table 24: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Public Transport
Approved Public Transport Funding Model implemented	Existing Public Transport Funding Model reviewed	Review of Current Public Transport Funding Streams	Discussion document on the revision of the Public Transport Funding Model developed	Stakeholder consultation conducted on the proposed revision of the Public Transport Funding Model	Stakeholder inputs considered and the draft revised Public Transport Funding Model finalised
Framework for the taxi industry ownership of the Scrapping Entity implemented   (60% ownership)	Framework for the taxi industry ownership of the Scrapping Entity developed	Develop a draft framework the taxi industry ownership of the Scrapping Entity	Conduct stakeholder consultations on the draft framework for taxi industry ownership of the Scrapping Entity	Conduct stakeholder consultations on the draft framework for taxi industry ownership of the Scrapping Entity	Conduct stakeholder consultations on the draft framework for taxi industry ownership of the Scrapping Entity
Public Transport Operations monitored in provinces	Annual Monitoring Report on public transport	Quarterly Monitoring Report on public transport	Quarterly Monitoring Report on public transport	Quarterly Monitoring Report on public transport	Annual Monitoring Report on public transport
Safer Transport Systems
Number of old taxi vehicles scrapped	Annual progress Report on projected taxis scrapped    (Projected scrapping of 3 500 old taxi vehicles)	Quarterly Progress Report on taxis scrapped   (Projected scrapping of 875 old taxi vehicles)	Quarterly Progress Report on taxis scrapped     (Projected scrapping of 875)	Quarterly Progress Report on taxis scrapped   (Projected scrapping of 875)	Quarterly Progress Report on taxis scrapped   (Projected scrapping of 875)
Programmes to address  gender-based violence in the taxi industry implemented	Annual Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the taxi industry	-	Bi-Annual Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the taxi industry	-	Annual Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the taxi industry

(Source: Department of Transport (2021))

 

 

Sub-Programme: Rural and Scholar Transport Implementation

 

Table 25: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Public Transport
Number of District Municipalities assisted with IPTN plans	Inception reports for development of IPTN plans developed for two district municipalities  Mopani District Municipality Gert Sibande District Municipality	Conduct consultations with the two district municipalities	Develop concept document for the development of IPTN plans	Develop concept document for the development of IPTN plans	Final Inception Reports for the development of IPTN plans for two district municipalities
Number of bicycles distributed in rural municipalities	10 000 bicycles distributed	Distribute 2 000 bicycles (projected figure)	Distribute 2 000 bicycles (projected figure)	Distribute 3 000 bicycles (projected figure	Distribute 3 000 bicycles (projected figure)

 

 

3.         OVERVIEW OF THE 2020/21 FINANCIAL YEAR[18]

3.1 First Quarter Expenditure of 2020/21

Table 26: 2020/21 First Quarter Expenditure

Programme R’ Million	Main Appropriation	1st Quarter Actual Expenditure	Expenditure as % of Main Appropriation	1st Quarter Projected Expenditure	Variance from Projected Expenditure	% Variance from Projected Expenditure	COVID-19 Spending
Administration	491.8	60.5	12.3%	107.8	47.4	43.9%	0.4
Integrated Transport Planning	104.5	13	12.5%	21.4	8.4	39.2%	0.0
Rail Transport	13 195.2	2 901.9	22%	2 907.7	5.8	0.2%	0.0
Road Transport	33 816.7	8 640.6	25.6%	8 658.4	17.8	0.2%	0.0
Civil Aviation Transport	240.7	22.4	9.3%	56.2	33.8	60.1%	0.0
Maritime Transport	149.4	6.5	4.3%	34.1	27.6	81%	0.0
Public Transport	14 038	1 236.7	8.8%	1 358.8	122.1	9%	24.5
Awaiting Classification[19]		14.7
TOTAL	62 036.3	12 896.4	20.8%	13 144.5	248.1	1.9%	24.9

 

(Source: National Treasury (2020a))

 

In 2020/21, the main allocation of the Department  – prior to the delivery of the Supplementary Budget by the Minister of Finance, on 24 June 2020 – stood at R62 billion.  Of this amount, the Department spent R12.9 billion (or 20.8%) against the 2020/21 First Quarter projection of R13.1 billion.  The Department spent R248.1 million (or 1.9%) lower than projected for this period. The lower than projected spending was mainly on transfers and subsidies in the Public Transport, Civil Aviation Transport and Maritime Transport programmes, as well as on goods and services across all programmes.

 

As at the end of the First Quarter of 2020/21, the Department had spent R115.7 million against the First Quarter projection of R132.2 million on the compensation of employees. The R16.6 million (or 12.5%) lower than projected spending was mainly due to the slow filling of vacant posts. By the end of the First Quarter of 2020/21, the Department had 693 filled posts against a funded establishment of 855 posts.  This translated into a vacancy rate of 18.9% (or 162 vacant posts).

 

3.2 Second Quarter Expenditure of 2020/21

Table 27:2020/21 Second Quarter Expenditure

Programme R’ Million	Main Appropriation	Special Adjusted Budget	Available Budget	2nd Quarter Actual Expenditure	Expenditure as % of Available Budget	2nd Quarter Projected Expenditure	Variance from Projected Expenditure	% Variance from Projected Expenditure	COVID-19 Spending
Administration	491.8	482.2	469.8	173.9	37%	231.7	57.8	24.9%	1.2
Integrated Transport Planning	104.5	93.8	90.1	28.6	31.7%	48.8	20.2	41.4%	0.0
Rail Transport	13 195.2	12 183.3	9 599.4	5 495.0	57.2%	5 504.9	10.0	0.2%	0.0
Road Transport	33 816.7	31 266.2	31 471.1	17 218.7	54.7%	17 259.4	40.7	0.2%	0.0
Civil Aviation Transport	240.7	196.7	2 673.7	74.4	2.8%	157.2	82.8	52.7%	0.0
Maritime Transport	149.4	143.4	141.8	65.3	46.1%	66.7	1.4	2.1%	0.0
Public Transport	14 038.0	13 030.4	12 908.9	4 545.8	35.2%	4 897.0	351.2	7.2%	29.7
TOTAL	62 036.3	57 395.8	57 354.7	27 601.6	48.1%	28 165.8	564.1	2%	30.9

(Source: National Treasury, (2020b))

 

In theSpecial Adjusted Budget there was a reduction in the allocation to the Department to R57.4 billion. As at the end of 30 September 2020, the Department had spent R27.6 billion against a Second Quarter projection of R28.2 billion. The Department spent R564.1 million (or 2%) lower than projected.[20] The lower than projected spending was mainly on goods and services in the Administration, Civil Aviation, as well as Public Transport programmes. Moreover, the Department spent lower than projected on transfers and subsidies in the Public Transport programme.

 

The Department spent R229.3 million against the Second Quarter projection of R276.3 million for compensation of employees. It spent R47.1 million (or 17%) lower than projected largely due to the slow filling of vacant posts. By the end of the Second Quarter of 2020/21, the Department had 689 filled posts against a funded establishment of 855 posts.[21] This represented a vacancy rate of 19.4% (or 166 vacant posts).

 

3.3 Third Quarter Expenditure of 2020/21

Table 28: 2020/21 Third Quarter Expenditure

Programme R’Million	Main Appropriation	Adjusted Budget	Available Budget	3rd Quarter Actual Expenditure	Expenditure as % of Available Budget	3rd Quarter Projected Expenditure	Variance from Projected Expenditure	% Variance from Projected Expenditure	COVID-19 Spending
Administration	491.8	469.8	469.8	248.6	52.9%	341.7	93.2	27.3%	2.2
Integrated Transport Planning	104.5	90.1	90.1	44.1	49%	72.4	28.3	39.1%	0.0
Rail Transport	13 195.2	9 599.4	9 599.4	6 959.0	72.5%	8 359.6	1 400.7	16.8%	0.0
Road Transport	33 816.7	31 471.1	31 471.1	27 436.8	87.2%	27 485.4	48.6	0.2%	0.0
Civil Aviation Transport	240.7	2 673.7	2 673.7	120.1	4.5%	160.1	39.9	24.9%	0.0
Maritime Transport	149.4	141.8	141.8	102.6	72.4%	118.7	16.2	13.6%	0.0
Public Transport	14 038.0	12 908.9	12 908.9	7 488.5	58%	7 874.3	385.9	4.9%	29.7
TOTAL	62 036.3	57 354.7	57 354.7	42 399.7	73.9%	44 412.4	2 012.7	4.5%	31.9

(Source: National Treasury, (2020c))

 

The Department spent R42.4 billion against a 2020/21 Third Quarter projection of R44.4 billion, i.e., R2 billion (or 4.5%) lower than projected for this period. The lower than projected spending was mainly in transfers and subsidies in the Rail Transport, Civil Aviation and Public Transport programmes. In addition, there was lower than projected spending in goods and services in the Administration, Integrated Transport Planning, Civil Aviation Transport, as well as Public Transport programmes.[22]

 

The Department spent R353.7 million against the Third Quarter projection of R423.4 million for compensation of employees. Expenditure was R69.7 million (or 16.5%) lower than projected mainly due to the slow filling of vacant posts.[23] The Department had 693 filled posts against a funded establishment of 855 posts by the end of the Third Quarter of 2020/21. This represented a vacancy rate of 18.9% (or 162 vacant posts).

 

 

4.         2021/22 POLICY PRIORITIES AND BUDGET OF THE DEPARTMENT

 

4.1        POLICY PRIORITIES FOR 2021/22 AND ALIGNMENT WITH NATIONAL, REGIONAL, CONTINENTAL AND GLOBAL DEVELOPMENT AGENDAS

 

4.1.1 National Development Plan (NDP) and the Medium-Term Strategic Framework (MTSF)

 

The Department has identified the following eight areas that it will prioritise over the next five years, in response to the MTSF (2019 – 2024):

 

•           Safety as an enabler of service delivery;

•           Public transport that enables social emancipation and an economy that works;

•           Infrastructure build that stimulates economic growth and job creation;

•           Building a maritime nation, elevating the oceans economy;

•           Accelerating transformation towards greater economic participation;

•           Innovation that advances efficiencies and supports a continuous improvement model;

•           Environmental protection – Recovering and maintaining a healthy natural environment; and

•           Governance – Greater efficiency, effectiveness and accountability.

 

The Department contributes to the realisation of the vision of improved social and economic development articulated in the NDP. Transport infrastructure and services support economic growth and development by connecting people and goods to markets. The development and maintenance of an efficient and competitive transport system is a key objective of the NDP. To this effect, the Department, in partnership with the sector public entities, provincial and local government, will continue to focus on improving mobility and access to social and economic activities. 

 

In addition, the Department gives impetus to priority 1 (economic transformation and job creation) and priority 4 (spatial integration, human settlements and local government) of Government’s 2019-2024 MTSF. Over the medium-term, the Department plans to give effect to these guiding policies by focusing on:

•           Building and maintaining national and provincial road networks;

•           Providing passenger rail infrastructure and services; and

•           Facilitating the provision of integrated public transport networks.

 

Delivering his 2021 State of the Nation Address (SONA), the President accentuated three areas that the Department will be zeroing in on in 2021/22 as he committed Government to:

•           Constructing and rehabilitating the N1, N2 and N3 highways;

•           Supporting a massive increase in local production; and

•           Using Operation Vulindlela to bring about reforms in the transport sector.

 

Roads have been depicted as the “arteries through which the economy pulses”.  By linking producers to markets, workers to jobs, pupils to schools, and the sick to hospitals, roads are vital to any development agenda. It is against this backdrop that Government will embark on the construction and rehabilitation of the N1, N2 and N3 highways. Government intends to use these projects to kick-start the economy. Indeed, the President asserted that “these infrastructure projects will lead to the revival of the construction industry and the creation of the much-needed jobs”. 

 

In addition, the train sets that are manufactured at Dunnottar, Ekurhuleni, in Gauteng, are intended to contribute to “increase in local production”. The factory is assisting to address the crucial challenge facing South Africa today, that is, unemployment, especially among the youth. It is estimated that the rolling stock fleet renewal programme will create over 8 000 direct jobs throughout the Gibela Consortium’s supply chain, with the factory targeting the creation of 1 500 jobs.  Nearly all the jobs in the factory will be occupied by South Africans with the aim to employ 85% historically disadvantaged persons, and at least 25% women. The expectation is that, with time, the factory will increase the proportion of women within its workforce to at least 50%.

 

A set of structural reforms has been identified in the Economic Reconstruction and Recovery Plan (ERRP) adopted by labour, business, Government and the National Economic Development and Labour Council (NEDLAC).  Through Operation Vulindlela, a joint operation between the Presidency and the National Treasury, Government is facilitating the implementation of structural reforms, which are at the core of the ERRP.

 

Pertaining to the freight transport sector, the desired outcome of the reforms is competitive and efficient freight transport. The key structural reforms include improving the efficiency and competitiveness of the ports, establishing a transport economic regulator, implementing a third-party access policy on freight rail lines and concessioning rail branch-lines, where feasible.

 

Table 29: Alignment to MTSF

MTSF Pillars	APEX Priorities	DOT Strategic Focus Areas
Achieving a More Capable State	Priority 1: A Capable, Ethical and Developmental State	Improved Efficiency and Effectiveness of Support Services
	Priority 7: A Better Africa and World	Building a Maritima Nation, Elevating the Oceans Economy
		Environmental Protection – Recovering and Maintaining Healthy Natural Environment
Driving a Strong and Inclusive Economy	Priority 2: Economic Transformation and Job Creation	Infrastructure Build that Stimulates Economic Growth and Job Creation
		Building a Maritime Nation, Elevating the Oceans Economy
		Accelerating Transformation Towards Greater Economic Participation
Building and Strengthening Capabilities of South Africans	Priority 3: Education, Skills and Health	Improved Efficiency and Effectiveness of Support Services
	Priority 5: Spatial Integration, Human Settlements and Local Government	Public Transport that Enables Social Emancipation and an Economy that Works
	Priority 6: Social Cohesion and Community Safety	Safety (and Security) as an Enabler of Service Delivery

(Source: Department of Transport Revised Strategic Plan 2021/22 version, p. 26)

 

4.1.2Agenda 2063

 

The African Union (AU) envisions that by 2063 the necessary infrastructure will be in place to support Africa’s accelerated integration and growth, technological transformation, trade and development. This will include high-speed rail networks, roads, shipping lines, sea and air transport, as well as Information and Communications Technology (ICT) and digital economy. A Pan-African high-speed rail network will connect all the major cities of the continent with adjacent ways and pipelines for gas, oil, water, ICT broadband cables and other infrastructure. This will serve as a catalyst for manufacturing skills development, integration and intra-African trade, investment and tourism. The Department has committed itself to contributing to the aspirations of “an integrated continent, politically united and based on the ideals of Pan Africanism and the vision of Africa’s Renaissance”.

 

Investment in infrastructure is vital in addressing the challenges encountered in infrastructure maintenance and expansion that are crucial for the stabilisation of the country’s economy and creation of new opportunities for growth, equity and employment. The current socio-economic challenges cannot be resolved utilising only the scope and resources of Government or any single role player. Enduring economic partnerships between Government and the private sector are needed to develop trusting relationships for integrated operations, investments and management of transportation infrastructure.

 

A perusal of the Department’s budget allocation for 2021/22 lends credence to its commitment to national, regional, continental and global imperatives. This is evidenced by massive investments in Road, Rail and Public Transport programmes respectively.

 

It is a truism that an efficient transport infrastructure provides social and economic benefits to both advanced and emerging economies by improving market accessibility. In addition, it ensures balanced regional, continental and global economic development. Finally, an efficient transport infrastructure creates employment, promotes labour mobility, and connects communities.

 

4.1.3 Institutional Policies and Strategies over the five-year planning period

 

a) National White Paper on Transport Policy, 1996

The vision of the White Paper on National Transport policy is to provide safe, reliable, effective, efficient, and fully integrated transport operations and infrastructure which will best meet the needs of freight and passenger customers at improving levels of service and cost in a fashion which supports government strategies for economic and social development whilst being economically and environmentally sustainable.

 

b) White Paper on National Policy on Airports and Airspace Management, 1997

This is a national policy response on airports and airspace management as a result of far- reaching changes which have occurred in South Africa in general and in civil aviation in particular. This policy is currently under review to address recent developments and resultant policy gaps.

 

c) National Commercial Ports Policy, 2002

This aim of this policy is to ensure an internationally competitive port system informed by the knowledge that efficient ports are known to be catalysts for increased trade, and thus provide a comparative advantage for international trade. Thus, this policy aims to ensure affordable, internationally competitive, efficient and safe port services based on the application of commercial rules in a transparent and competitive environment applied consistently across the transport system.

 

The importance of this policy is further highlighted by the fact that globalisation pressures make it essential that nations integrate their transport systems into the global logistics network. Ports are naturally being incorporated into this changing system and have to adjust to the new challenges and environment.

 

d) Taxi Recapitalisation Policy, 2009

The Taxi Recapitalisation Policy (TRP) is an intervention by Government to bring about safe, effective, reliable, affordable and accessible taxi operations by introducing New Taxi Vehicles (NTVs) designed to undertake public transport functions in the taxi industry.

 

A revised fiscal framework also accounts for substantial revenue losses emanating from the economic shock of COVID-19 pandemic and the subsequent lockdown. The lockdown significantly delayed planned programmes, projects and expenditure in the sector. As a result, the Department, Provinces and Municipalities, in their revised budget applications, would have to show delayed milestones and targets, the impact on their operational revenue and how they intend to mitigate the risk towards desired recovery and achievement of medium to long term outcomes.

 

The revision exercise thus focused, amongst others, on downscaling and/or reducing performance targets, particularly where programmes were impacted by budget cuts; and also, on prioritising interventions critical in mitigating the impact of the COVID-19 pandemic, thus saving lives of our people, where necessary. In revising performance targets, the NDP, the seven (7) apex priorities of the 6th Administration and the MTSF 2019 – 2024 remained the authoritative documents from which the exercise took guidance. For the remainder of the current MTEF, baseline allocations would be used to provide for the rapidly changing economic conditions and enable spending on the COVID-19 response.

 

This proposed modification would then be in categories.

• Category 1 will see suspension of funds and reallocation, where applicable. In this regard and as stated, the baselines of allocations to sector Departments will be reduced.

• Category 2 will see reprioritisation of funds within the budget votes. To this effect, funds will be shifted across programmes and/or budget items and reprioritised to where there are needs.

 

As stated, COVID-19 had a negative impact on the plans and operations of the Department and sector entities, particularly for the 2020/21 financial year. The effects of the impact of the pandemic would then have to be mitigated for the medium term through revision of the Strategic Plan and medium-term targets.

 

4.2        OVERVIEW OF THE2021/22 BUGDET OF THE DEPARTMENT

 

The Department contributes to the realisation of the vision of improved social and economic development articulated in the NDP, and priority 1 (economic transformation and job creation) and priority 4 (spatial integration, human settlements and local government) of Government’s 2019-2024 MTSF. Over the medium term, the Department plans to give effect to policies that focus on maintaining national and provincial road networks, addressing passenger rail challenges, and facilitating the provision of integrated public transport networks.

 

Expenditure is expected to increase at an average annual rate of 8.1 per cent, from R57.3 billion in 2020/21 to R72.5 billion in 2022/24. Although the substantial share of the department’s expenditure is directed towards rail infrastructure, maintenance, operations and inventories, the balance of the budget is reserved for the South African National Roads Agency for the upgrading and maintenance of the national road network; and provinces and municipalities for the construction, operations and maintenance of transport infrastructure and services. Over the MTEF period, transfers account for an estimated 97per cent (R205.2 billion) of the department’s budget.

An amount of R2.55 billion for 2021/22, R1.97 billion for 2022/23 and R2.20 billion for 2023/24 has been reduced from the departmental vote. These amounts comprise budget baseline reductions mainly to be effected on capital transfers to the Passenger Rail Agency of South Africa, operational transfers to public entities, and public transport network grant to municipalities, compensation of employees as well as goods and services. To remain within government’s ceiling for compensation of employees, spending on this item decreases at an average annual rate of 0.3 per cent, from R536.8 million in 2020/21 to R531.5 million in 2023/24.

 

Spending on goods and services is expected to increase at an average annual rate of 2.3 percent from R849 million in 2020/21 to R909.7 million in 2023/24. This relatively low increase is due to Cabinet approved budget reduction of R180.4 million over the medium term.

 

The allocations to the Civil Aviation programme are expected to decrease at an average annual rate of 50.8 per cent, from R2.7 billion in 2020/21 to R319.2 million in 2023/23 due to the capitalisation of Airports Company South Africa which needed support due to travel restrictions as a result of the COVID-19 pandemic in the 2020/21 financial year.

 

With an allocation of R104.1 billion over the medium term, the department’s Road Transport programme facilitates activities related to the maintenance of South Africa’s national and provincial road network. The South African National Roads Agency plays a crucial role in programmes related to upgrading, maintaining and strengthening national toll and non-toll roads. Transfers to the agency account for 31 per cent (R64.9 billion) of the department’s budget over the medium term. The core focus for the department over the MTEF period with regard to roads is the R573 (Moloto Road) development corridor, which is allocated R2.7 billion Transfers to fund reduced tariffs for the Gauteng freeway improvement project amounting to R1.99 billion over the MTEF period, while R34.8 billion of the allocations to the agency are to maintain the national network of non-toll roads.

 

The maintenance of provincial roads is largely funded through the provincial roads’ maintenance grant, which receives R37.5 billion over the MTEF period. Funds from the grant are expected to be used for resealing 17 842 lane kilometres, rehabilitating 6 806 lane kilometres, and blacktop-patching 4.49 million square kilometres. Factors such as the condition of roads, weather patterns and traffic volumes determine grant allocations to provinces for the maintenance of provincial roads.

 

Transfers to PRASA in the Rail Transport programme account for an estimated 27.2 per cent (R56.98 billion) of the department’s budget over the medium term. However, the agency has struggled for many years to deliver on its modernisation programme, which is meant to improve the reliability of services and increase passenger ridership through focused spending on repairs and maintenance as part of the agency’s rolling stock fleet renewal programme, as well as improved security.

 

Delays in the rolling stock fleet renewal programme, along with poor spending on rail infrastructure and the effects of the COVID-19 pandemic, specifically lockdown restrictions, necessitated the reprioritisation of funds to support other transport sector entities. As such, the agency received no transfers from the department in 2020/21 for the signalling and rolling stock renewal programme. The reprioritisation included a R2.3 billion capitalisation of Airports Company South Africa and the R1.1 billion once-off gratuity to the taxi industry in 2020/21.

 

The recent appointment of a new board for the Passenger Rail Agency of South Africa is expected to lead to the intensified implementation of its modernisation programme. Over the MTEF period, capital transfers to the agency are expected to increase at an average annual rate 164.3 per cent, from R700.9 million in 2020/21 to R12.9 billion 2023/24. To offset revenue loss during the COVID-19 lockdown, operational transfers were temporarily increased in 2020/21, accommodated by reductions to capital budgets. However, as they normalise over the medium term, operational transfers to the agency are expected to decrease at an average annual rate of 5 per cent, from R8.8 billion in 2020/21 to R7.5 billion in 2023/24.

 

Efficient public transport networks are important to keep economic hubs functioning optimally. Accordingly, through the Public Transport programme, the department makes allocations to the public transport network grant. These allocations are expected to increase at an average annual rate of 15.7 per cent, from R4.4 billion in 2020/21 to R6.8 billion in 2023/24. The relatively high increase is due to one-off reductions in 2020/21 to fund priorities related the COVID -19 pandemic within the transport industry. The grant fund infrastructure and indirect costs of operating bus rapid transit services in Johannesburg, Tshwane, Cape Town, George, Nelson Mandela Bay and Ekurhuleni. In these cities, funding from the grant is expected to lead to a combined increase in the number of weekday passenger trips on bus rapid transit services from 154 799 in 2020/21 to 323 323 in 2023/24.

 

The section below analyses the budget allocation for the Department for the 2021/22 financial year.

 

Table 30: Overall Budget – Transport

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Administration	469.8	497.0	27.2	7.2	5.8%	1.5%
Integrated Transport Planning	90.1	92.2	2.1	-  1.6	2.3%	-1.8%
Rail Transport	9 599.4	16 785.8	7 186.4	6 509.8	74.9%	67.8%
Road Transport	31 471.1	34 166.7	2 695.6	1 318.4	8.6%	4.2%
Civil Aviation Transport	2 673.7	503.9	- 2 169.8	- 2 190.1	-81.2%	-81.9%
Maritime Transport	141.8	157.5	15.7	9.4	11.1%	6.6%
Public Transport	12 908.9	14 488.6	1 579.7	995.7	12.2%	7.7%
TOTAL	57 354.7	66 691.8	9 336.9	6 648.8	16.3%	11.6%

(Source: National Treasury (2021))

 

For 2021/22, the Department receives R66.7 billion (excluding direct charges) – constituting 6.8% of the R980.6 billion national budget vote.  Nominally (without inflation), the Department’s budget increases by 16.3% from the previous financial year, and it increases by 11.6% when one takes cognisance of inflation (real terms). The exponential increase is in the Rail Transport programme, which grows significantly by 67.8% (above inflation), and increases nominally by 74.9% (without inflation). It is anticipated that the drastic increase in the Rail Transport programme is in line with the Department’s commitment to “addressing passenger rail challenges”, that it underscores as one of its policy priorities for 2021/22.

 

In terms of economic classification, transfers and subsidies comprise R65.3 billion (or 97.9%) of the departmental budget, and the bulk is allocated to the following bodies:

•           Provinces and municipalities (R25.7 billion);

•           Departmental agencies and accounts (R22.4 billion); and

•           Public corporations and private enterprises (R16.7 billion).

 

The overall allocation to compensation of employees decreases from R536.8 million previously to R531.4 million in 2021/22. This year, expenditure on consultants (business and advisory services) is set to increase from R382.8 million in 2020/21 to R430.5 million in 2021/22. The notable increase in the use of consultants (business and advisory services) is in the Maritime Transport programme that increases from R11 million in 2020/21 to R24.2 million in 2021/22, translating into an increase of 54.1%. The Public Transport programme continues to have the biggest funding for the use of consultants, which increases from R243.7 million in the previous financial year to R265.5 million in 2021/22 (or 8.5% in real terms).

 

4.2.1 Programme Analysis

 

As stated in the introduction, the Department has seven programmes. What follows below is an analysis of the budget allocation for each programme, and where relevant or necessary, it refers to the programmes’ sub-programmes.

 

4.2.1.1 Programme 1: Administration

 

The Administration programme is entrusted with providing strategic leadership, management and support services to the Department. The programme comprises five sub-programmes, as illustrated in the table below:

 

 

 

Table 31: Programme 1: Administration

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Ministry	38.6	39.5	0.9	-  0.7	2.3%	-1.8%
Management	82.0	100.6	18.6	14.5	22.7%	17.7%
Corporate Services	247.7	250.7	3.0	-  7.1	1.2%	-2.9%
Communications	39.2	40.4	1.2	-  0.4	3.1%	-1.1%
Office Accommodation	62.3	65.7	3.4	0.8	5.5%	1.2%
TOTAL	469.8	497.0	27.1	7.1	5.8%	1.5%

(Source: National Treasury (2021))

 

The Administration programme receives R497 million, translating into a 1.5% above inflation increase from the previous financial year. The Ministry, Corporate Services, as well as Communications sub-programmes have below inflation increases, bar the Management, and Office Management sub-programmes that receive 17.7% and 1.2% above inflation increases respectively. The Corporate Services sub-programme receives the biggest share of the Administration programme allocation, i.e., 50.5%. The exponential increase is to the Management sub-programme (an increase of 17.7% above inflation).

 

4.2.1.2 Programme 2: Integrated Transport Planning

 

The Integrated Transport planning programme integrates and harmonises macro-transport sector policies, strategies and legislation. In addition, it coordinates and develops sector-related policies, research activities, as well as regional and inter-sphere relations. The programme also facilitates sector information and provides sector economic modelling and analysis.

 

 

 

Table 32: Programme 2: Integrated Transport Planning

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Macro-Sector Planning	16.2	16.2	0.0	-  0.7	0%	-4%
Freight Logistics	16.9	18.1	1.2	0.5	7.1%	2.8%
Modelling and Economic Analysis	21.9	20.8	-  1.1	-  1.9	-5%	-8.9%
Regional Integration	14.0	11.4	-  2.6	-  3.1	-18.6%	-21.9%
Research and Innovation	12.6	17.0	4.4	3.7	34.9%	29.5%
Integrated Transport Planning Administration Support	8.5	8.7	0.2	-  0.2	2.4%	-1.8%
TOTAL	90.1	92.2	2.1	-  1.6	2.3%	-1.8%

(Source: National Treasury (2021))

 

While the budget for the Integrated Transport Planning programme increases nominally by 2.3%, in effect, it decreases by -1.8% below inflation. The allocation totals R92.2 million in 2021/22, up from R90.1 million in the previous financial year. The highest increase is in the Research and Innovation sub-programme whose allocation goes up from R12.6 million in 2020/21 to R17 million in the current financial year. The sub-programme’s allocation increases by 29.5% above inflation (real terms).

 

Conversely, the allocation to the Regional Integration sub-programme decreases by -21.9% below inflation. This sub-programme is entrusted with managing, coordinating and facilitating “the development of strategies for engagements in the Southern African Development Community and the rest of Africa”.[24] The reduction in the expenditure on this sub-programme begs the question as to how the Department intends to contribute to regional integration and intra-African trade that are catalysts for the ideals of Africa’s Renaissance and Pan Africanism.

 

 

4.2.1.3 Programme 3: Rail Transport

 

The Rail Transport programme facilitates and coordinates the development of sustainable rail transport policies, rail economic and safety regulation, and infrastructure development strategies that reduce system costs and improve customer service. In addition, it oversees rail public entities and the implementation of integrated rail services. Five sub-programmes fall under this programme.

 

Table 33: Programme 3: Rail Transport

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Rail Regulation	17.8	21.4	3.6	2.7	20.2%	15.4%
Rail Infrastructure and Industry Development	7.2	7.2	0.0	-  0.3	0%	-4%
Rail Operations	11.8	12.2	0.4	-  0.1	3.4%	-0.8
Rail Oversight	9 556.6	16 739.1	7 182.5	6 507.8	75.2%	68.1%
Rail Administration Support	6.0	6.0	0.0	-  0.2	0%	-4%
TOTAL	9 559.4	16 785.8	7 226.5	6 549.9	75.6%	68.5%

(Source: National Treasury (2021))

 

Constituting 25.2% of the Department’s budget, the Rail Transport programme is the second largest departmental spending area, after the Road Transport programme. The programme’s budget exponentially goes up from R9.6 billion previously, to R16.8 billion in 2021/22. This translates into an above inflation increase of 68.5% and an increase of 75.6% nominally. The Rail Oversight sub-programme receives the biggest allocation of the programme’s budget, i.e., 99.7%. Moreover, this is the sub-programme whose budget increases markedly, from R9.6 billion in the previous financial year to R16.7 billion in 2021/22. This indicates an above inflation increase of 68.1%. Transfers to PRASA to the value of R16.7 billion and R69.7 million to the RSR are funded from this sub-programme.

 

Another sub- programme that records an above inflation increase of 15.4%, up from R17.8 million in 2020/21 to R21.4 million in the current financial year is the Rail Regulation sub-programme. This sub-programme “is responsible for the development of rail policies, safety and economic regulations”.[25] Conversely, the allocation to the Rail Administration Support sub-programme remains the same at R6 million. However, this means that has it not kept abreast of inflation and therefore decreases by -1.4% below inflation in 2021/22.

 

Transfers to PRASA to the tune of R16.7 billion are divided up as per the tables below:

 

Table 34: PRASA Transfers: Current

Entity/Programme   R million	Budget
	2020/21	2021/22
Metrorail (Operations)	R6.7 billion	R4.8 billion
Mainline passenger services (Operations)	R1.2 billion	R1.2 billion
Rail maintenance operations and inventories	R912.9 million	R925.4 million
TOTAL	R8.8 billion	R6.9 billion

(Source: National Treasury (2021))

 

Table 35: PRASA Transfers: Capital

Entity/Programme   R million	Budget
	2020/21	2021/22
Other capital programmes	R395.2 million	R1.4 billion
Rolling Stock Fleet Renewal	-	R4.8 billion
Signalling	-	Approx. R2 billion
Metrorail (Refurbishment of coaches)	R200.8 million	R1.4 billion
Mainline Passenger Service (Refurbishment of coaches)	R105 million	R155.6 million
TOTAL	R700.9 million	R9.7 billion

(Source: National Treasury (2021))

 

 

4.2.1.4 Programme 4: Road Transport

 

The Road Transport programme is entrusted with developing and managing an integrated road infrastructure network, as well as regulating transport and ensuring safer roads. Moreover, it oversees road transport public entities. The programme is divided into five sub-programmes.

 

Table 36: Programme 4: Road Transport

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Road Regulation	44.8	44.8	0.0	-  1.8	0%	-4%
Road Infrastructure and Industry Development	35.5	36.5	1.0	-  0.5	2.8%	-1.3%
Road Oversight	31 353.0	34 046.8	2 693.8	1 321.5	8.6%	4.2%
Road Administration Support	9.2	9.4	0.2	-  0.2	2.2%	-1.9%
Road Engineering Standards	28.7	29.2	0.5	-  0.7	1.7%	-2.4%
TOTAL	31 471.1	34 166.7	2 695.5	1 318.3	8.6%	4.2%

(Source: National Treasury (2021))

 

The total expenditure for the Road Transport programme grows from R31.5 billion in 2020/21 to R34.2 billion in 2021/22. This constitutes an above inflation increase of 4.2%, i.e.  a nominal increase of 8.6% from the previous financial year. The highest increase is for the Road Oversight sub-programme whose allocation goes up from R31.4 billion in 2020/21 to R34 billion in 2021/22, resulting in 4.2% above inflation. The Road Oversight sub-programme dominates the programme’s budget, comprising 99.7%.

 

The Road Oversight sub-programme reviews and analyses the performance of road transport public entities and monitors their compliance with regulations and legislation. It also transfers funds to SANRAL, RTMC, and the RTIA. Moreover, the sub-programme makes provision for the Provincial Roads Maintenance Grant (PRMG).

 

Major transfers from the Road Transport programme are as follows:[26]

 

Table 37: Major Transfers from the Road Transport Programme

Entity/ Programme   R million	Budget
	2020/21	2021/22
RTMC	R240.6 million	R217.3 million
SANRAL: Gauteng Freeway Improvement Project (GFIP)	R3.1 billion	R633.1 million
RTIA	R88.2 million	R224.4 million
SANRAL	R7.2 billion	R7.2 billion
SANRAL: Non-toll network	R8.2 billion	R11.7 billion
SANRAL: Moloto Road upgrade	R785 million	R843.9 million
SANRAL: N2 Wild Coast	R1.1 billion	R1.1 billion
Rural Roads Asset Management Systems (RRAMS) Grant	R108.4 million	R109.9 million
PRMG: Roads maintenance component	R10.5 billion	R11.9 billion

(Source: National Treasury (2021))

 

Expenditure under Programme 4 lends credence to policy priorities for 2021/22. SANRAL is one of the entities that are tasked, over the financial year, with increasing the provision of the necessary opportunities for labour intensive employment, skills development, technological innovation and supply chain management. These will be biased in favour of “women, people with disabilities, and young people in empowered industries”.[27] This is in keeping with Government’s urgent objective of igniting the economy, creating jobs, as well as improving the standard of living of many of the marginalised.

 

 

4.2.1.5 Programme 5: Civil Aviation Transport

 

The Civil Aviation Transport programme facilitates the development of an economically viable air transport industry that is safe, secure, efficient, environmentally friendly and compliant with international standards through regulations and investigations. In addition, it oversees aviation transport public entities.

 

 

 

Table 38: Programme 5: Civil Aviation Transport

 

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Aviation Policy and Regulations	27.8	28.1	0.3	-  0.8	1.1%	-3%
Aviation Economic Analysis and Industry Development	15.2	14.9	-  0.3	-  0.9	-1.9%	-5.9%
Aviation Safety, Security, Environment, and Search and Rescue	68.2	101.4	33.2	29.1	48.7	42.7%
Aviation Oversight	2 556.7	353.7	- 2 203.0	- 2 217.3	-86.2%	-86.7%
Aviation Administration Support	5.7	5.9	0.2	0.0	3.5%	-0.7%
TOTAL	2 673.7	503.9	- 2 169.6	- 2 189.9	-81.1%	-81.9%

 (Source: National Treasury (2021))

 

For 2021/22, the allocation to the Civil Aviation Transport programme equals R503.9 million, down from R2.7 billion previously, translating into a decrease of -81.9% below inflation. The major decrease is in the Aviation Oversight sub-programme that constitutes a -86.7% decrease below inflation. The sub-programme’s allocation declines significantly from R2.6 billion in 2020/21 to R353.7 million in 2021/22. The second decrease (-5.9% below inflation) is in the Aviation Economic Analysis and Industry Development sub-programme, going down from R15.2 million in 2020/21 to R14.9 million in 2021/22.

 

On the contrary, expenditure on the Aviation Safety, Security, Environment, and Search and Rescue sub-programme grows from R68.2 million previously to R101.4 million in 2021/22. This indicates an above inflation increase of 42.7%.

 

4.2.1.6 Programme 6: Maritime Transport

 

The Maritime Transport programme promotes a safe, reliable and economically maritime transport sector through the development and implementation of policies and strategies. In addition, the programme oversees maritime public entities. Five sub-programmes fall under the Maritime Transport programme.

 

Table 39: Programme 6: Maritime Transport

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Maritime Policy Development	8.8	10.6	1.8	1.4	20.5%	15.6%
Maritime Infrastructure and Industry Development	17.8	22.8	5.0	4.1	28.1%	22.9%
Implementation, Monitoring and Evaluation	67.0	76.1	9.1	6.0	13.6%	9%
Maritime Oversight	43.6	43.3	-  0.3	-  2.0	-0.7%	-4.7%
Maritime Administration Support	4.7	4.7	0.0	-  0.2	0%	-4%
TOTAL	141.8	157.5	15.6	9.3	11%	6.5%

(Source: National Treasury (2021))

 

The budget allocation for the Maritime Transport programme increases from R141.8 million in 2020/21 to R157.5 million in 2021/22, translating into an increase of 6.5% above inflation. The biggest budget increase is in the Maritime Infrastructure and Industry Development sub-programme that grows from R17.8 million in 2020/21 to R22.8 million in 2021/22. This indicates an above inflation increase of 22.9%. This sub-programme facilitates the development of integrated maritime infrastructure and a maritime industry.

 

The increase in the expenditure on the Maritime Infrastructure and Industry Development sub-programme augurs well for the attainment of some of the strategic objectives of the Department in 2021/22 financial year in the maritime transport. Of particular relevance in this regard is building on “South Africa’s extensive experience and capabilities in maritime safety and maritime protection, to champion through leadership and shape new global standards in these areas”.[28]

 

The second above inflation increase of 15.6% is in the Maritime Policy Development sub-programme, up from R8.8 million in the previous financial year to R10.6 million in 2021/22. The reason for the increase in this sub-programme might be in line with the Department’s “accelerated implementation of the Comprehensive Maritime Transport Policy [that] will continue in the MTSF”.[29] While the allocation to the Maritime Administration Support sub-programme remains the same at R4.7 million, it, in fact, declines by -4% below inflation.

 

 

4.2.1.7 Programme 7: Public Transport

 

The Public Transport programme is tasked with providing and regulating safe, secure, reliable, cost-effective and sustainable public transport services in South Africa through legislation, policies and strategies. The Public Transport programme comprises six sub-programmes.

 

Table 40: Programme 7: Public Transport

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Public Transport Regulation	50.9	52.9	2.0	-  0.1	3.9%	-0.3%
Rural and Scholar Transport	44.7	46.5	1.8	-  0.1	4%	-0.2%
Public Transport Industry Development	217.4	228.7	11.3	2.1	5.2%	1%
Public Transport Oversight	12 507.3	14 126.4	1 619.1	1 049.7	13%	8.4%
Public Transport Administration Support	74.1	12.6	-  61.5	-  62.0	-83%	-83.7%
Public Transport Network Development	14.5	21.3	6.8	5.9	46.9%	41%
TOTAL	12 908.9	14 488.4	1 579.5	995.5	12.2%	7.7%

(Source: National Treasury (2021))

 

In 2021/22, Programme 7 receives R14.5 billion, up from R12.9 billion in 2020/21, indicating a 7.7% above inflation increase. The biggest increase in the allocation is in the Public Transport Network Development sub-programme which receives R21.3 million in 2021/22, up from R14.5 million previously, indicating an increase of 41% above inflation. This sub-programme develops norms and standards for integrated public transport systems to assist in providing accessible, reliable and affordable integrated public transport network services in municipalities.

The increase in the Public Transport Network Development sub-programme augurs well for the attainment of one of the Department’s priorities in response to the MTSF (2019-2024) of having a “public transport that enables social emancipation and an economy that works”.[30] Efficient public transport networks are important to keep economic hubs functioning optimally. Accordingly, through the Public Transport programme, the Department makes allocations to the Public Transport Network Grant (PTNG).  An integrated public transport network is key to the South Africa’s economic hubs “as they provide sustainable, affordable and functional transport solutions to urban commuters”.[31]

 

On the contrary, there is a marked decrease in the allocation to the Public Transport Administration Support sub-programme that goes down from R74.1 million in the previous financial year to R12.6 million in the current financial year. This indicates a decrease of -83.7% that does not keep track with the effects of inflation.

 

Selected transfers in the Public Transport programme are as follows:[32]

 

Table 41: Selected Transfers in the Public Transport programme

Entity/Programme   R million	Budget
	2020/21	2021/22
Taxi Recapitalisation Programme (TRP)	R208.6 million	464.6 million
South African National Taxi Council (SANTACO)	R25.1 million	R26.5 million
Public Transport Network Grant (PTNG)	R4.4 billion	R6.5 billion
Public Transport Operations Grant (PTOG)	6.7 billion	R7.1 billion
TOTAL	R11.4 billion	R14.1 billion

(Source: National Treasury (2021))

 

 

5.         2021/22 ANNUAL PERFORMANCE PLANS, STRATEGIC AND CORPORATE PLANS AS WELL AS ESTIMATES OF NATIONAL EXPENDITURE PER ENTITY

 

This report summarises the Key Performance Indicators presented by the entities in terms of their APPs and Corporate Plans as well as their Budget allocations for the 2021/22 financial year.

 

5.1        AIRPORTS COMPANY SOUTH AFRICA

 

ACSA’s mandate is to undertake the acquisition, establishment, development, provision, maintenance, and control of any airport, any part of any airport or any facility or service at any airport normally related to the functioning of an airport in terms of the Airports Company South Africa Act (No. 44 of 1993). ACSA is a State-owned company, and a Schedule 2 public entity, in terms of the Public Finance Management Act (PFMA) (No.1 of 1999). The South African Government is the entity’s majority shareholder, with 74.6% stake in the Group.[33] The Group is legally autonomous, and operates within the ambit of the Companies Act (No. 71 of 2008).

 

ACSA owns and manages nine (9) South African airports. It also participates in equity investments abroad, and provides technical advisory and consultancy services to other airports nationally and internationally. ACSA derives value from aeronautical and non-aeronautical operations.[34]

 

Shareholder value creation over the long-term is fundamental to ACSA’s ability to be self-sufficient. ACSA’s financial independence enables the continuous delivery of major infrastructure requirements against the demands of the aviation industry, supporting the entity’s vision of being a world-leading airport business. A failure to be self-sufficient would introduce risk for future major infrastructure investments.

 

ACSA contends that the advent of COVID-19, with its attendant travel restrictions and health screening requirements, has brought about significant threats to shareholder value creation over the Corporate Plan period and beyond.[35] The Company has taken a scenario planning approach to inform responses to firstly address short-term liquidity requirements, then financial sustainability over the long-term.

 

A 139% traffic volume increase (on the back of a 74.5% reduction in 2020/21) is currently assumed with conservative increases thereafter.[36] Resizing decisions have been taken to safeguard financial sustainability in the form of operating expense reductions of R900 million, as well as an additional R300 million reduction in employee costs in 2021/22.[37] The postponement of the 2021/22 to 2025/26 permission application owing to COVID-19, will also delay the introduction of tariff increases to the 2023/24 financial year. An increase of 35% has been assumed for 2023/24.

 

 Funding

 

The entity reports that its cash-generating ability has been severely affected by the COVID-19 induced travel restrictions, and bans implemented by countries across the world to control the spread of the virus. To alleviate short-term liquidity pressures, the Company increased its short-term banking facilities, effectively managed its working capital and introduced operational and capital expenditure cuts.[38] The impact of the pandemic is expected to have a long-lasting effect on the aviation sector, including ACSA. This has prompted the Company to follow a more comprehensive approach to its borrowing plan to ensure long-term financial sustainability.

 

The COVID-19 pandemic has compelled banks to be more risk-averse when it comes to credit extension to both state-owned companies and corporates. In addition, the terms and conditions of loan agreements have become more stringent, while the pricing of loans is exorbitant. Consequently, ACSA will issue preference shares to raise capital from existing shareholders.[39] As of 12 February 2021, the Company had received indicative subscription amounts totalling approximately R3.8 billion, comprising the following:[40]

 

• Government: R2.3 billion, in line with the Appropriation Bill to be signed by the President;
• Public Investment Company (PIC): Limited to R1.50 billion, subject to obtaining the necessary approvals;
• G10 investments: R20 000 interest
• Up-front Investment 64: R20 000 interest; and
• Oppressed ACSA Minority 1: R20 000 interest.

 

The funding requirement is based on the following key assumptions over a three-year period:[41]

• Capital Expenditure Programme amounting to R2.8 billion (excluding capitalised interest); and
• Debt redemptions totalling R2.7 billion.

 

 Revenue

 

The Group’s revenues comprise both aeronautical, as well as non-aeronautical revenue. The Group’s forecast revenue of R3 422 million for 2021/22 follows the 0% increase in aeronautical charges as granted by the Regulating Committee in the 2019-2023 Permission and extremely low levels of traffic with a forecast decrease of 49.4%.[42] The postponement of the Permission application means that the fourth year of the 2019-2023 Permission will come into effect for the 2022/23 financial year, with increases of 3.3%. This increase, together with the envisioned traffic growth of 18.4%, will result in revenues of R4 323 million.[43] The plan assumes tariff increases of 35% that will form part of the 2022-2026 Permission. It is forecast that non-aeronautical revenues will contribute between 42% and 48% to total revenues during the Corporate Plan period.[44]

 

Aeronautical Revenue

 

Aeronautical revenue is expected to increase by 118.6% in 2022/23, compared with the forecast for 2021/22 due to a 3.3% increase in tariffs and some recovery of traffic volumes from the extreme lows of 2021/22.[45] It is forecast that traffic will be 37.5% lower than 2020/21 (pre-COVID-19 level).

 

Non-Aeronautical Revenue

 

Non-aeronautical revenue is expected to increase by 103.7% in 2021/22, compared to 2020/21 and 32.1% lower than the 2019/20 financial year.[46] Owing to a high level of uncertainty, retail, car rental and car parking forecasts have been kept the same as the forecast of the previous Corporate Plan.

 

When a comparison is drawn between the 2020/21 forecast and the 2021/22 forecast budget, the following estimates can be made:[47]

• Retail revenue is estimated to increase by 32.5%;
• Car parking is estimated to increase by 32.5%;
• Advertising revenue is estimated to stay the same;
• Car rental revenue is estimated to increase by 32.5%;
• Property rentals and property developments are estimated to decrease by 144.3%; and
• Other commercial revenues comprise permits, recoveries and subsidiary revenues, such as hotel revenues.

 

Expenditure

 

Operating expenditure for 2021/22 is estimated at R3 940 million, and represents a 2.7% decrease when compared to the forecast for 2020/21.[48]  The major cost components are as follows:[49]

 

• Personnel costs (including other employee costs) decrease by 10.6%, from R1 617 million to R1 446 million. This is against the backdrop of no allowance for new positions, no salary increases and no provision for performance bonuses;
• Repairs and maintenance costs increase by 9.7% to R470 million.
• Utilities are kept the same at R367 million, in line with an annual tariff increase of 10% reduced by energy-saving initiatives (solar, switching off geysers during certain times when hot water is not required; reducing the operating times for air conditioning units in terminal buildings; replacement of luminaire with light emitting diode (LED) technology.
• Security costs increase by 8.8% to R503 million due to more guards required as the level of activity starts to increase across all airports;
• Rates and taxes increase by 7.8% to R282 million based on the expected increase, as promulgated by municipalities and property valuations; and
• Information systems expenditure increases by 35.5% to R371 million as a result of the delivery against the digitisation strategy.

 

Depreciation

 

The depreciation charge for 2021/22 is estimated at R1 179 million.[50] This represents a marginal difference to the 2020/21 owing to the low levels of capital expenditure.

 

Financing Costs

 

The COVID-19 pandemic is expected to have a long-lasting impact on the Company, with traffic volumes expected to take years to return to pre-pandemic levels. Consequently, the credit metrics are expected to remain weak over the forecast period which will increase the financing costs.

 

Earnings

 

A loss of R928 million is budgeted for 2021/22.[51]

 

 

5.2        AIR TRAFFIC AND NAVIGATION SERVICES COMPANY (ATNS)

 

ATNS was established in terms of the Air Traffic and Navigation Services Act (1993). The company is mandated to provide safe, orderly and efficient air traffic navigational and associated services to the air traffic management community, and in accordance with the standards set out by the International Civil Aviation Organisation. Over the medium term, the company will provide air traffic management solutions that are responsive to regional, continental and global demands, trends and technological advancements.

 

Expenditure is expected to increase at an average annual rate of 3.6 per cent, from R1.5 billion in 2020/21 to R1.7 billion in 2023/24. This relatively low increase is due to the implementation of cost‐containment and cash preservation measures following the decrease in air travel as a result of the COVID‐19 pandemic. Revenue is derived mainly from aerodrome, en‐route and approach fees, and is expected to increase at an average annual rate of 33.9 per cent, from R660.7 million in 2020/21 to R1.6 billion in 2023/24. This high increase is mainly due to the sharp decrease in revenue in 2020/21 because of COVID‐19 travel restrictions, with air traffic operations expected to begin normalising over the period ahead.

 

5.3        DRIVING LICENCE CARD ACCOUNT (DLCA)

 

The DLCA is responsible for manufacturing driving licence cards based on orders received from driving licence testing centres across South Africa. Over the medium term, the entity will continue to focus on ensuring optimal manufacturing productivity.

 

Expenditure is expected to increase at an average annual rate of 3.7 per cent, from R201.3 million in 2020/21 to R224.5 million in 2023/24. Spending on production and infrastructure accounts for 72.8 per cent (R486 million) of total expenditure. The entity generates revenue through the sale of driving licence cards. Revenue is expected to increase at an average annual rate of 11.5 per cent, from R202.2 million in 2020/21 to R280.1 million in 2023/24.

 

5.4        cross-border road transport agency (c-brta)

 

TheC-BRTA is a Schedule 3A public entity, in terms of the Public Finance Management Act (PFMA) (No. 1 of 1999). It was established as per the Cross-Border Road Transport Act (No. 4 of 1998), as amended. The Agency’s founding legislation places the following responsibilities on it:[52]

 

• Improving the unimpeded flow of road freight and passengers in the region;
• Liberalising market access progressively in respect of cross-border freight road transport;
• Introducing regulated competition pertaining to cross-border passenger road transport, and reducing operational constraints for the cross-border road transport as a whole;
• Enhancing and strengthening the capacity of the public sector in support of its strategic planning, enabling and monitoring functions; and
• Empowering the cross-border road transport industry to maximise business opportunities and to regulate themselves incrementally to improve safety, security, reliability, quality and efficiency of services.

 

For 2021/22, the C-BRTA’s programme operating expenditure stands at R259.3 million.[53] Nominally (without inflation), the Agency’s budget increases by 12% from the previous financial year, and it increases by 7.5% when one takes cognisance of inflation (real terms). The exponential increase is in the Regulatory programme, which grows significantly by 36.8% (above inflation), and increases nominally by 42.6%. The Law Enforcement programme is the only programme whose budget decreases in 2021/22, down from R43.8 million in 202021 to R37.6 million in the current financial year. This translates into a below inflation decrease of -17.5%, and a nominal decrease of -14.1%.

 

Constituting 52.2% of the Agency’s programme operating expenditure, the Administration programme is the C-BRTA’s biggest spending area, with its allocation sitting at R135.4 million 2021/22, up from R125.7 million previously. This indicates an above inflation increase of 36.8%, and a nominal increase of 42.6%.

 

5.5        PORTS REGULATOR OF SOUTH AFRICA (PRSA)

 

The Ports Regulator of South Africa was established in terms of section 29 of the National Ports Act (2005). It is tasked with regulating South Africa’s commercial ports by considering tariff increases of the National Ports Authority and regulating the provision of adequate, affordable and efficient port services and facilities. This includes hearing complaints and appeals aimed at ensuring fairness, transparency and competitive practices in the ports system. Over the medium term, the regulator will continue to develop and review policy, strategy and research for an effectiveregulatory framework for the economic regulation of ports.

 

Expenditure is expected to increase at an average annual rate of 2.9 per cent, from R40.4 million in 2020/21 to R43.9 million in 2023/24. Revenue is derived entirely through transfers from the department, and is expected to increase in line with expenditure.

 

5.6        passenger rail agency of south africa (prasa)

 

PRASA is a Schedule 3B National Government Business Enterprise that reports to the Minister of Transport. The Agency derives its mandate from the Legal Succession Act to the South African South African Transport Services Act (No.9 of 1989), as amended.

 

The main objectives and business of PRASA are to:[54]

• Ensure that, at the request of the  Department, rail commuter services are provided within, to and from the Republic in the public interest and provide, in consultation with the Department, long haul passenger rail bus and services within, to and from the Republic in terms of the principles set out in section 4 of the National Land Transport Transition Act (NLTA) (No. 22 of 2000), as amended; and
• Generate income from the exploitation of assets acquired by it.

 

A further requirement is that, in discharging its objectives and business, PRASA shall have due regard to key Government social, economic and transport policy objectives. The governmental plans, policies and pieces of legislation informing the Corporate Plan are the following:[55]

• ERRP), 2020;
• National Rail Policy White Paper, 2017;
• Public Transport Strategy, 2007;
• Legislation specific to transport (Legal Succession Act to the South African Transport Services Act (No. 9 of 1989), as amended, the National Land Transport Act (No.5 of 2009, and the National Rail Safety Regulator Act (No. 16 of 2002); and
• Priorities of the NDP, and the Sixth Administration.

 

The allocations are in line with the business priorities of PRASA to improve the service offering to the customer.[56] The planned spending on the Rolling Stock Fleet Renewal Programme is the largest single category. In 2021, expenditure on this item sits at R4.8 billion, and is expected to increase to R6.9 billion in 2023/24.[57] In addition, there is massive investment in accelerated rolling stock programme for the old train sets, signalling, station improvement, as well as other related infrastructure.

 

Expenditure is expected to increase at an average annual rate of 4.5 per cent, from R15.9 billion in 2020/21 to R18.2 billion in 2023/24. Compensation of employees is the agency’s largest cost driver, spending on which accounts for 41.9 per cent (R21.2 billion) of expenditure over the medium term. A total of 68.2 per cent (R34.4 billion) of the agency’s expenditure over the period ahead is earmarked for spending on the Metrorail and mainline passenger service programmes, including the modernisation programme.

 

As a result of historic underspending on capital programmes, the agency’s cash balance as at 30 October 2020 was R19.6 billion. Over the period ahead, the agency plans to spend R44 billion on infrastructure mainly for Metrorail and the mainline passenger service. Transfers from the department account for an estimated 82.3 per cent of revenue over the medium term. Other sources of revenue include the sale of train and bus tickets, rental income from the leasing of properties, onboard sales, and interest earned. Revenue is expected to increase at an average annual rate of 7.5 per cent, from R19.9 billion in 2020/21 to R24.7 billion in 2023/24.

 

The capital budget is also aligned with the ministerial mandate deliverables that encompass:[58]

• Service recovery or reinstatement;
• Safety and security management;
• Accelerating capital programme and modernisation;
• Enhancing revenue and reducing costs; and
• Putting proper measures to ensure good governance.

 

Other critical deliverables, include but not limited to:[59]

• Corridor protection;
• High-tech security deployment;
• Recovery of verified components;
• Rolling stock components at depots;
• Electrical rehabilitation programme;
• On-track machines;
• Perway rehabilitation programmes; and
• Overall security in general.

 

5.7        ROAD ACCIDENT FUND (raf)

 

The RAF or “the Fund” was established in terms of the Road Accident Fund Act (No. 56 of 1996), which outlines the mandate of the Fund as the payment of compensation for loss or damage wrongfully caused by the negligent driving of a motor vehicle.

 

The powers and functions of the RAF shall include:[60]

• The stipulation of the terms and conditions upon which claims the compensation contemplated in section 3 shall be administered;
• The investigation and settling, subject to the Act, of claims arising from loss or damage caused by the driving of a motor vehicle whether not the identity of the owner or driver thereof, or the identity of both the owner and driver thereof, has been established; and
• The management and utilisation of its powers or the performance of its duties, and reinsurance for ant risk undertaken by the Fund.

 

The fund receives its revenue from the road accident fund levy in terms of the Customs and Excise Act (1964). Revenue from the levy is expected to increase at an average annual rate of 5.8 per cent, from R38.1 billion in 2020/21 to R45.2 billion in 2023/24.

 

Claims against the fund have increased at an average annual rate of 8.4 per cent, from R61.3 billion in 2017/18 to R78.2 billion in 2020/21, and are expected to increase to R102.9 billion by 2023/24. As a result, the accumulated deficit is expected to increase from R367.7 billion in 2020/21 to R518.7 billion in 2023/24.

 

5.8        RAILWAY SAFETY REGULATOR (RSR)

 

The Constitution of the Republic of South Africa, 1996, (“the Constitution”) identifies the legislative responsibilities of different spheresof Government pertaining to airports, roads, traffic management and public transport. Transport is a function that is legislated and executed at all spheresof Government. The implementation of transport functions at the national level takes place through public entities that are overseen by the Department of Transport (“the Department”).

 

The RSR shall comply with Chapters 2 and 3 of the Constitution.

 

The RSR observes and adheres to the principles of cooperative government and intergovernmental relations that is supported by its work on the rail service regulations and harmonisation of the Southern African Development Community (SADC) railways through common safety methods.

 

The promotion of the South Africans affirms the democratic values of human dignity, equality and freedom. The achievement of safer railways reinforces the values contained in the Bill of Rights.

 

The RSR was established in terms of the National Railway Safety Regulator Act (No. 16 of 2002), as amended, to establish a national regulatory framework for South Africa, and to monitor and enforce compliance in the rail sector. The primary legislative mandate of the RSR is to oversee and enforce safety performance by all railway operators in South Africa, including those of the neighbouring States whose operators enter South Africa. All operators are, in terms of the Act, primarily responsible and accountable for ensuring safety of their railway operations.

 

As a state entity, the RSR is also governed and directed by various policies developed and approved by the South African Government at varying spheres. The following are some of the policy mandates which guide the work of the RSR:[61]

• The NDP;
• The National Transport Master Plan (NATMAP);
• The National White Paper on Transport Policy, 1996;
• The New Growth Path (NGP) Framework; and
• Various national and international policies within the railway sector.

 

In executing its legislative oversight mandate, the RSR performs the following duties and functions:[62]

• Issuing and managing safety permits;
• Conducting inspections and audits;
• Conducting safety assessments;
• Investigating railway occurrences;
• Developing regulations, safety standards and regulatory prescripts;
• Issuing notices of non-conformance and non-compliance;
• Supporting and promoting occupational health and safety and security;
• Cooperating with relevant organs of state to improve safety performance and oversight functions;
• Playing a leading role in the alignment of the railway safety regime of South Africa with those of SADC; and
• Data management and analysis.

 

Expenditure is expected to increase at an average annual rate of 4 per cent, from R247.3 million in 2021/22 to R278.2 million in 2023/24. Compensation of employees and goods and services account for an estimated 97.8 per cent (R781.3 million) of the regulator’s budget over the period ahead. The regulator generates its revenue mainly through permit fees and transfers from the department. Revenue is expected to increase at an average annual rate of 1.7 per cent, from R257.8 million in 2021/22 to R271.4 million in 2023/24.

 

5.9        road traffic infringement agency (rtia)

 

The RTIA is a State-Owned Entity (SOE) reporting to the Department of Transport (“the Department”). It is listed in the PFMA) as a Schedule 3A National Public Entity, and should comply with Treasury Regulations and other laws. These include the Constitution of the Republic of South Africa, 1996, the Protection of Personal Information Act (PPIA) (No. 4 of 2013), the Promotion of Access to Information Act (PAIA) (No. 2 of 2000) and the Promotion of Administrative Justice Act (PAJA) (No. 3 of 2000).

 

The RTIA was established by the Administrative Adjudication of Road Traffic Offences (AARTO) Act (No. 46 of 1998). The Agency’s mandate is to facilitate the adjudication process pertaining to the infringement notices dispensed by the various Issuing Authorities to the alleged infringers on South African roads. The AARTO Act depicts the RTIA as an independent adjudicator designed to provide for an administratively fair and just system for road traffic law infringements, whilst upholding the rights of the alleged infringer.[63]

 

The Agency’s responsibilities, as enshrined in the Act, include the implementation of community education and awareness programmes targeted at enhancing voluntary road traffic compliance, and fostering behavioural change amongst road user communities. Thus, in its mandate, the RTIA should ensure objective, transparent and fair implementation of the adjudication process for road traffic infringements.

 

The following is the synopsis of the objects and functions of AARTO, as outlined in section 4(1) of the Act, as amended:[64]

• Administering a procedure to discourage the contravention of road traffic laws, and to support the adjudication of infringements, as set out in subsection (2);
• Enforcing penalties imposed against persons contravening road traffic laws, as set out in subsection (3);
• Administering and managing a point demerit system for infringements and offences; and
• Undertaking community education and community awareness programmes in order to ensure that individuals understand their rights and options, as set out in subsection (5).

 

In its quest to advance responsive road safety interventions, the Agency – under the guidance of and leadership of the Department – has facilitated the promulgation of the amended AARTO Act (No. 14 of 2019).[65] In addition, the Amendment Act is accompanied by new 2020 Draft AARTO Regulations aimed at the amplification of the infringement adjudication process.

 

For 2021/22, the budget for the RTIA’s programmes stands at R834.4 million, up from R316.2 million in the previous financial year. Of this amount, the biggest allocation, constituting 30.5% (or R254. 8 million) goes to the Adjudication and AARTO Support programme. The smallest expenditure is on the AARTO Information and Analytics programme that receives 1.5% (or 12.2 million) in 2021/22, up from R6.5 million in 2020/21.

 

5.10      THE ROAD TRAFFIC MANAGEMENT CORPORATION (RTMC)

 

The RTMC was established in terms of the Road Traffic Management Corporation Act (RTMCA) (No. 20 of 1999). It is further governed by, inter alia:[66]

• The Constitution of the Republic of South Africa, 1996;
• National Land Transport Act (No. 5 of 2009);
• National Road Traffic Act (No. 93 of 1996);
• Public Finance Management Act (PFMA) (No. 1 of 1999);
• Companies Act (No. 71 of 2008), the Criminal Procedure Act (No. 51 of 1977); and
• Protection of Personal Information Act (POPIA) (No. 4 of 2013).

 

In terms of the RTMCA, the RTMC was established to pool powers and resources, and to eliminate the fragmentation of responsibilities for all aspects of road traffic management across the various spheresof Government. The Act provides, in the public interest, for cooperative and coordinated strategic planning, regulation, facilitation and law enforcement in respect of road traffic matters by the national, provincial and local spheres of Government. The RTMC is a Schedule A Government entity with the primary mandate of contributing to overall road safety and responsible road usage.

 

For 2021/22, the budget for RTMC stands at R1.5 billion. Nominally (without inflation), the Corporation’s budget increases by 31.4%, and it increases by 26.1% when one takes cognisance of inflation (real terms). The exponential increase is in the Operations programme, which grows significantly by 60.1% (above inflation), and increases nominally by 67.2% (without inflation).

 

5.11      SOUTH AFRICAN CIVIL AVIATION AUTHORITY (SACAA)

 

SACAA was established in terms of the South African Civil Aviation Authority Act (1998) to enforce safety standards in the civil aviation industry. Over the medium term, the authority will continue to focus on improving compliance and adherence to the standards and recommended practices of the International Civil Aviation Organisation.

 

Expenditure is expected to increase at average annual rate of 9 per cent, from R632.9 million in 2020/21 to R820.3 million in 2023/24. The authority is expected to spend R205 million over the period ahead on the replacement of the flight inspection aircraft and flight calibration equipment. The authority generates most of its revenue through passenger safety charges, user fees and the aviation fuel levy. Revenue is expected to increase at an average annual rate of 23.3 per cent, from R437.3 million in 2020/21 to R820.3 million in 2023/24.

 

This significant increase is due to the expected recovery in air passenger travel over the medium term after the sharp decrease in passenger numbers in 2020/21 as a result of COVID‐19 travel restrictions.

 

5.12      SOUTH AFRICAN MARITIME SAFETY AUTHORITY (SAMSA)

 

SAMSA or “the Authority” is a Schedule 3A public entity in terms of the (PFMA (No. 1 of 1999). SAMSA was established on 1 April 1998, following the enactment of the South African Maritime Safety Authority Act (“the SAMSA Act”) (No. 5 of 1998). The Act provides for the establishment of an authority entrusted with regulating and enforcing maritime safety, marine pollution from ships, and promoting South Africa’s maritime interests. The Authority is governed and controlled by a Board of Directors, appointed by the Minister of Transport in terms of the SAMSA Act.

 

For the 2021/22 financial year, the budget allocation for SAMSA stands at R541 million.[67] Nominally (without inflation), the Authority’s budget increases by 1.8% from the previous financial year, but decreases by -2.3%, when one takes cognisance of inflation (real terms). Constituting 52.1% of the SAMSA’s programme operating expenditure, the Ensure Safety of Life and Property at Sea programme is the Authority’s biggest spending area, with its allocation sitting at R282.1 million 2021/22, up from R275.5 million previously. This indicates a below inflation decrease of -1.7%, but a nominal increase of 2.4%.

 

 

5.13      SOUTH AFRICAN NATIONAL ROADS AGENCY LIMITED (SANRAL)

 

SANRAL has been established as an independent, statutory company in terms of the South African National Roads Agency Limited and National Roads Act (No.7 of 1998), as amended. The Agency exists to, inter alia, manage, improve, maintain, the national road network – both toll and non-toll roads – as well as finance toll roads. SANRAL is a Schedule 3A public entity in terms of the Public Finance Management Act (PFMA) (No.1 of 1999). Currently, SANRAL manages a network of 22 253 km of roads throughout South Africa.[68]

 

SANRAL subscribes to a suite of institutional policies and strategies that seek to not only support the implementation of its mandate, but also align itself with Government priorities and objectives. These include the following:[69]

• SANRAL Act;
• Road Infrastructure Strategic Framework of South Africa (RISFSA), 2006;
• National Development Plan (NDP) 2030;
• Medium Term Strategic Framework (MTSF) 2019-2024;
• NDP 5 Year Implementation Plan;
• Budget Prioritisation Framework;
• National Transport Master Plan 2050;
• Horizon 2030 Long Term Strategy;[70]
• Transformation Policy;
• Board Approved Policies; and
• Applicable legislative prescripts that include the PFMA, Promotion of Administrative Justice Act (PAJA) (No. 3 of 2000), Preferential Procurement Policy Framework Act (PPPFA) (No. 5 of 2000)), King Code IV, Constitution of the Republic of South Africa, 1996, Companies Act (No. 71 of 2008), as well as Protocol for Corporate Governance for Public Entities.

 

For 2021/22, SANRAL’s budget for its two programmes stands at approximately R38.4 billion. Nominally (without inflation), the Agency’s budget increases by 67.7% from the previous financial year, and it increases by approximately 61% when one takes cognisance of inflation (real terns). The exponential increase is in the Roads Asset Infrastructure programme, which grows significantly by 69.6% (above inflation), and increases nominally by 76.7%.[71]

 

 

6.         COMMITTEE OBSERVATIONS

 

Members made the following observations during discussions:

 

6.1        Department of Transport

6.1.1     The APP of the Department showed an improved alignment with safety and security as well as measurable goals. There was a good alignment in the sub-programmes with content and service delivery needs. The Department’s APP does still need to show how actual implementation can be improved on.

6.1.2     The Department should have expanded on how it would address incidents of corruption and eliminateirregular and wasteful expenditure.

6.1.3     The Department was moving in the right direction to improve internal control measures.

6.1.4     An increase in the budget for the maintenance of rural roads was needed to further enhance economic recovery.

6.1.5     The Committee welcomes the indicators introduced in the plans of the Department, as well as the entities to address:

6.1.5.1 Tracking and improved responses to Parliament and Committee resolutions, requests and additional reporting requests, as contained in the various Committee Reports, Member’s Questions as well as in-meeting requests;

6.1.5.2  The Gender Based Violence prevention targets, with specific reference to addressing this within the public transport sector.

6.1.6     The Committee noted the improved alignment between the Department and entity performance targets and also welcomed the filling of the majority of the vacancies in boards of entities. The appointment of the GCEO of PRASA is a step in the right direction. It was noted that some CEO appointments had not yet been finalised, but that the processes were underway. The Committee urges the Minister to closely monitor these processes and to finalise the appointments urgently (such as the SAMSA and RSR CEO appointments that have been long outstanding).

6.1.7     The Committee was of the view that there can still be improvements made on the transformation targets for the entities in order to deliver true transformation in the various industries.

6.1.8     The Committee noted the targets set by the Department and its entities to reduce fraud and corruption, fruitless and wasteful expenditure, as well as irregular expenditure. However, the Committee was of the view that the target should be a 100% reduction or eradication of these instances.

6.1.9 The Committee noted that the Department was working towards restructuring the RTIA, RTMC and the DLCA. This may assist in reducing duplication of road safety projects, as well as eliminate system failures of the eNaTIS that affect the work of these entities.

 

6.2        ACSA

The Committee noted that the entity set the percentage target for incidents of corruption at 60%, as opposed to a zero tolerance. The Committee noted that the target for the eradication of irregular expenditure should be 100%.

The sale by the entity of some international airport interest investments was noted.

 

6.3        DLCA

 

The Committee is of view that the information presented to the Committee has not changed since 2019, there was very little progress presented to improve the DLCA and that the 2021 APP did not respond to critical matters such as the replacement of the obsolete technology and infrastructure used for the production and printing of the cards.

 

6.4        PRASA

6.4.1     PRASA’S detailed revised Corporate Plan and APP were welcomed.However, it was noted that the Committee have been presented with a number of strategic and turn around plans by PRASA over the past financial years which failed to be implemented.

6.4.2     The Committee noted that the entity had to have clear short and long term strategies in place to protect its infrastructure against vandalism and theft.Members informed the GCEO how appalled they were with the conditions of train stations, as observed during oversight visits. The stations were poorly maintained and structures were destroyed. Members questioned whether the entity could implement its infrastructure plans when it could not fix the basic issues such as broken windows and bathroom facilities.

6.4.3     There was a concern about the inclusion of Autopax into the main business of PRASA as the provision of bus passenger services was not PRASA’s core business.

6.4.4     It was noted with concern that the entity did not have enough funds to finance or budget for the timely payment of creditors.

6.4.5     The Committee noted the discrepancy in the numbers presented on station modernisations by PRASA and the Department.

6.4.6     Despite indications of progress on some passenger lines, the Committee was of the view that the progress on these passenger lines was not visible on the ground.

6.4.7     The quality of services provided on the Main Passenger Line trains was appalling and PRASA must ensure that the water on the train is available, that the bathrooms on the train are functioning and that the seat and sleep cabin facilities are repaired and suitable for passengers.

6.4.8     Disappointment was noted that PRASA failed to renew security contracts during the 2020 COVID-19 lockdown periods which could have attributed to the increase in vandalism of the infrastructure.Precautions must be taken to avoid such critical contract vacuums.

 

6.5        SAMSA

6.5.1     The Committee was not satisfied with the information presented by SAMSA, as the information appeared to be a repeat of the previous year’s APP targets. The information presented further did not clarify how SAMSA intended to address the Auditor-General’s audit findings.

6.5.2     The Committee noted that SAMSA set the percentage for the reduction in “cases of wasteful and fruitless expenditure” at 75%, and not at 100% and for the reduction in “cases of irregular expenditure” at 75%, and not at 100%.

6.5.3     The Committee further noted that the entity had been without a full time CEO since 2016.

 

6.6        Aviation Safety – ACSA, ATNS and SACAA

 

The increase in aviation accidents within the past 12 months was a concern. The Department was asked to encourage the relevant regulators and entities to do more inspections at smaller airfields in order to determine why this increase in incidents occurred.

 

6.7        Railway Safety – RSR and PRASA

There was a view that RSR directives were ignored by PRASA as manual authorisations escalated till February/ March 2020, and that the RSR’s current strategy may not be adequate given how operators did not follow the Regulator’s instructions.

 

6.8        RAF

6.8.1 The Committee noted the recent court judgments affording RAF a reprieve in having their assets and bank accounts attached in order for them to ensure that old claims are paid and settled first. The work done by RAF to retrieve overpaid funds from attorneys was also noted. The Committee noted that the RAF and the Department are working on obtaining a proclamation for SIU to conduct investigations to root out fraud and corruption. The Committee was of the view that RAF must improve its communication with claimants and its claims management system to ensure that claims are paid as soon as the cash becomes available to do so, and to have a system in place that will ensure that double or overpayments to attorney trust accounts do no occur in future.

6.8.2 RAF must improve its creditors payment timeframes to prevent attachments of its assets.

6.8.3 The Committee noted that RAF and the Department are working on amendments to its minimum requirements for claims, as well as amendments to its funding model.

 

6.9 RTIA

6.9.1 The Committee noted that the entity indicated that their APP may require further amendments and that some targets presented by the entity as part of their APP for 2021/22 needed to be amended as they were already in place.For example, the NRTOR system does not need to be a new system as an existing register system can be improved on, as well as targets on municipality readiness for AARTO national implementation as many municipal authorities have already indicated that they were ready for the roll out. This is a concern as these targets have budget allocated thereto and without seeing how the entity seeks to amend these, the Committee cannot be sure how the budget may be reallocated.

6.9.2 The disciplinary matters of those officials that have been suspended must be finalised as soon as possible before this affects the performance of the entity any further. This already caused a delay in the tabling of the entity’s Annual Report of 2019/2020 and the Committee would not want a repeat of that with the tabling of the Annual Report this year.

 

6.10 RTMC

6.10.1 The Committee noted that the eNaTIS system functionality affect the services provided by other Department entities, like the RTIA and DLCA, as well as provincial and municipal DLCAs. The entity should eliminate system downtime so that services linked thereto can continue unabated.

6.10.2 The Committee noted the growth in traffic law enforcement officer training, as well as the enhancement of the tools used by the entity such as smart law enforcement vehicles. The shift work proposal for 24/7 traffic law enforcement officials on duty seems not to be finalised yet as the entity still budgets for payment of overtime worked by traffic law enforcement officers.

 

6.11 SANRAL

6.11.1 There was still no final decision regarding the GFIP/e-toll funding model. Members were of the view that the e-toll funding model issue must be finalised as it was not acceptable to have it drag on any longer.

6.11.2 Concerns remain that the road maintenance budget allocation does not seem to be sufficient for purposes of ensuring that provincial roads are maintained to the same standard as SANRAL managed roads.

6.11.3 Having noted that the Moloto Corridor Project may no longer have a rail element, but would consist only of the work done to the roadway, it is extremely important for SANRAL to ensure the work that they do on the Moloto Road translates into a real measurable improvement of the safety of road users and lead to a decrease in road fatalities on the road.

 

7.         COMMITTEE RECOMMENDATIONS

The Committee recommends that the Minister, through the Department, should ensure the following:

7.1        The Department should submit the Quarterly Monitoring Reports on the implementation of the National Road Safety Strategy, as well as the Annual Monitoring Report on the Implementation of the National Road Safety Strategy to the Committee.

7.2        The C-BRTA should furnish the Committee with its Road Safety Strategy, after it has been developed.

7.3        TheRTIA should furnish the Committee with the “Migration Readiness Assessment” report regarding the integration of the RTIA, RTMC and DLCA into a single law enforcement entity by the end of the Third Quarter of 2021/22.

7.4        The RTIA should furnish the Committee with Phase 1 of the Point Demerit System (PDS) Implementation Report that the entity has undertaken to have it compiled by the end of the Second Quarter of 2021/22.

7.5        PRASA should give the Committee regular updates on its rolling stock fleet renewal programme, the refurbishment of coaches, as well as the upgrading of signalling systems. These briefings should encompass the budget spent per programme, the timeframes thereof, as well as the progress made.

7.6        PRASA should provide the Committee with a comprehensive plan to combat theft and vandalism of the rail infrastructure.

7.7        With reference to the PRMG, the Department should brief Parliament on the breakdown of the budget allocation for 2021/22 per province, as well as the annual targets of the number of jobs to be created per province.

7.8        The Department should brief the Committee on its interventions to ensure the expeditious implementation of the PTNG by the implementing cities.

7.9        SANRAL should brief the Committee on the implementation of its road maintenance programmes for 2021/22 on a quarterly basis. This should also include information on maintenance done by SANRAL in agreement with Provincial and Municipal authorities on their roads (if any).

7.10      The Department should provide the Committee with an updated presentation on the Moloto Road project, as well as the maintenance plan for the Moloto Road.

7.11      The Department should deliver an updated report to the Committee on the rollout, expenditure and reasons for delays in active operations of the IPTN programmes.

7.12      The Department should deliver an updated report on the rollout of the revised taxi recapitalisation programme and how it aims to work towards achieving the Taxi Lekgotla resolutions, including the formalisation and corporatisation of the taxi industry.

7.13      The Department continue to deliver an updated report on the status of vacancies in the Department and its entities. This report should also indicate whether there was still a need to fill these vacancies.

7.14      The Department should deliver an updated report on the transformation policy for the Department, as well as each of its entities and indicate concrete and clear steps on how it and the entities’ management seek to address the lack in transformation progress in the industry.

7.15      The Department must deliver the final decision regarding the GFIP/e-toll policy matter, as soon as Cabinet releases its decision on this matter.

 

 

8.         SUMMARY OF REPORTING REQUESTS

 

The Committee requested additional matters for the Department to report on:

 

Reporting matter	Action required	Timeframe
The Department should submit the following reports: Annual Status Report on IPTN Programme compliance with universal design norms and standards; Annual Status Report on operational hours of BRTs; and Annual Monitoring Report on public transport.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department together with ACSA should submit the following reports: Annual Report on the implementation of action plan to address audit findings raised for the 2019/20 financial year; Annual Report on efforts taken to achieve an unqualified audit report with no significant findings; Annual Report on steps taken to reduce wasteful and fruitless expenditure; Annual Report on steps taken to reduce irregular expenditure; and Annual (2020/21) Analysis Report on jobs created through ACSA Infrastructure Programme.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department, together with PRASA should submit the following reports: -  Annual (2020/21) Analysis Report on the PRASA Modernisation Programme; Annual (2020/21) Analysis Report on jobs created through PRASA Infrastructure Programme; Annual (2020/21) Analysis Report on PRASA Rail Operations; Annual (2020/21) Analysis Report on rail safety analysis; Annual (2020/21) Analysis of rail security occurrences; and Annual Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the rail transport sector.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department, together with the RAF,should submit the following reports: Annual Report on steps taken to ensure resolution of reported incidents of fraud and corruption; Annual Report on the implementation of action plan to address audit findings raised for the 2019/20 financial year; Annual Report on efforts taken to achieve an unqualified audit report with no significant findings; Annual Report on efforts taken to reduce wasteful and fruitless expenditure; and Annual Report on steps taken to reduce irregular expenditure.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department together with the RTIA should provide the Committee with the following reports:         -    Annual Report on Steps Taken to Ensure              Resolution of Reported Incidents of Corruption; Annual Report on Steps Taken to Prevent fruitless and wasteful expenditure in the Agency; Annual Report on Steps Taken to Reduce irregular expenditure in the Agency; and Annual Report on Steps Taken to Ensure Compliance with 30-Day Payment Requirement.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department together with the RTMC should provide the Committee with the following reports:       -  State of Road Safety Report; Annual Report on steps taken to reduce irregular expenditure; Annual Report on efforts taken to achieve an   unqualified audit report with no significant            findings;  Annual Report on the management of wasteful and   fruitless expenditure; and Annual Report on the implementation of action  plan to address audit findings for 2020/21.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department, together with SANRAL should submit the following reports:       - Annual (2020/21) Analysis Report on the SANRAL Road Maintenance Programme;      -  Annual Monitoring Report on the Provincial Road Maintenance Programme; and      - Annual Monitoring Report on jobs created through the Provincial Road Maintenance Programme.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department together with SACAA should provide the Committee with the Annual Analysis Report on the State of Aviation Safety in South Africa.	Written reports from the Department.	By the end of  the 2021/22 financial year
The Department together with SAMSA should provide the Committee with the following reports:  Annual Analysis Report on Operation Phakisa; Annual Analysis Report on maritime safety incident rate; Annual Analysis Report on maritime fatality rate; Annual Analysis Report on maritime pollution incidents; Annual Report on the implementation of action plan to address audit findings raised for the 2019/20 financial year; Annual Report on steps taken to reduce wasteful and fruitless expenditure; and Annual Report on steps taken to reduce irregular expenditure.	Written reports from the Department.	By the end of  the 2021/22 financial year

 

 

The Committee recommends that the National Assembly approve the budget of the Department.

 

Report to be considered.

 

 

ANNEXURE A: LIST OF ABBREVIATIONS/ACRONYMS

Abbreviation/Acronym	Meaning
AARTO	Administrative Adjudication of Road Traffic Offences
ACSA	Airports Company South Africa
AFCAC	African Civil Aviation Commission
AGM	Annual General Meeting
AGSA	Auditor-General of South Africa
AI	Aviation Infrastructure
AIC	Aeronautical Information Circular
AIMO	Aeronautical Information Management Officer
ANSP	Air Navigation Service Provider
APP	Annual Performance Plan
ARDP	(Draft) Access Road Development Plan
ASO	Aviation Security Operations
ATM	Air Traffic Management
ATNS	Air Traffic Navigation Services
ATS	Air Traffic Services/ Aircraft Tracking Systems
ATSO	Air Traffic Service Officer
AU	African Union
AvSec	Aviation Security
BAC	Bid Adjudication Committee
BARSA	Board of Airlines Representatives of South Africa
B-BBEE	Broad-Based Black Economic Empowerment
BRICS	Brazil, Russia, India, China and South Africa
BRRR	Budget Review and Recommendations Report
BRT	Bus Rapid Transport
CANSO	Civil Air Navigation Organisation
CAPEX	Capital Expenditure
Cat	Civil Aviation Technical
C-BRTA	Cross-Border Road Transport Agency
C-BRTRF	Cross-Border Road Transport Regulators Forum
CEO	Chief Executive Officer
CFO	Chief Financial Officer
CNG	Compressed Natural Gas
CNS	Communications, Navigation and Surveillance
COTO	Committee of Transport Officials
CPO	Chief Procurement Office
DCA	Director of Civil Aviation
DG	Director-General
DGEC	Directors-General of the Economic Cluster
DDG	Deputy-Director General
DGOs	Dangerous Goods Operators
DLCA	Driving Licence Card Account
DLTC	Driving Licence Testing Centres
DPE	Department of Public Enterprises
DPME	Department of Planning, Monitoring and Evaluation
DPSA	Department of Public Service and Administration
EDL	Examiner of Driving Licences
EE	Employment Equity
EI	Effective Implementation
eNaTIS	Electronic National Traffic Information System
EoV	Examiner of Vehicles
ESEID	Economic Sectors, Employment and Infrastructure Development
EXCO	Executive Committee
FIU	Flight Inspection Unit
FMPPI	Framework for Managing Programme Performance Information
FOSAD	Forum of South African Directors-General
GA	General Aviation
GFIP	Gauteng Freeway Improvement Project
GHG	Greenhouse Gas
GDP	Gross Domestic Product
GDYC	Gender, Disability, Youth and Children
GTS	Green Transport Strategy
HR/HRD	Human-Resource/Human-Resource Development
IA	Issuing Authority
ICAD	International Civil Aviation Day
ICAO	International Civil Aviation Organisation
ICT	Information and Communications Technology
IMO	International Maritime Organisation
IPAP	Industrial Policy Action Plan
IPTNs	Integrated Public Transport Networks
IPTTP	Integrated Public Transport Turnaround Plan
IRERC	Interim Rail Economic Regulatory Capacity
IT	Information Technology
KPI	Key Performance Indicator
LDV	Light Delivery Vehicle
LEU	Live Enrolment Unit
LPG	Liquefied Petroleum Gas
MARPOL	International Convention for the Prevention of Pollution from Ships
MECs	Members of the Executive Council
MEOSAR	Medium Earth Orbit Search and Rescue
MET	Maritime and Training
MLPS	Long Distance (Main Line) Passenger Service
MOSP	Master Oversight and Surveillance Plan
MOU	Memorandum of Understanding
MRCC	Maritime Rescue and Coordination Centre
MTEF	Medium-Term Expenditure Framework
MTP	Comprehensive Maritime Transport Policy
MTSF	Medium-Term Strategic Framework (2014-19)
MTT	Ministerial Task Team
M&E	Monitoring and Evaluation
NA	National Assembly
NADP	National Airports Development Plan
NAFISAT	North East Africa Indian Ocean VSAT Network
NATMAP 2050	National Transport Master Plan 2050
NCAP	National Civil Aviation Policy
NCLB	No Country Left Behind
NCCRS	National Climate Change Response Strategy
NCOP	National Council of Provinces
NDP	National Development Plan
NEDLAC	National Economic Development and Labour Council
NGO	Non-governmental Organisation
NICRO	South African National Institute for Crime Prevention and the Reintegration of Offenders
NIP	National Infrastructure Plan
NLTA	National Land Transport Act
NQF	National Qualifications Framework
NRSS	National Road Safety Strategy
NRTA	National Road Traffic Act
NRTLEC	National Road Traffic Law Enforcement Code
NSRI	National Sea Rescue Institute
NT	National Treasury
PEPFRA	Ports Economic Participation Framework
PFMA	Public Finance Management Act
PICC	Presidential Infrastructure Coordinating Commission
PMDS	Performance Management and Development System
PPP	Public-Private Partnership
PRASA	Passenger Rail Agency of South Africa
PRSA	Ports Regulator of South Africa
PRMG	Provincial Roads Maintenance Grant
PSC	Passenger Safety Charge
PSP	Private Sector Participation
PTNG	Public Transport Network Grant
PTOG	Public Transport Operations Grant
RABS	Road Accident Benefit Scheme
RAF	Road Accident Fund
RFS	Road Freight Strategy
ROD	Record of Decision
ROS	Regulatory Outcomes Strategy
RPAS	Remotely Piloted Aircraft Systems
RSA	Republic of South Africa
RSR	Railway Safety Regulator
RTIA	Road Traffic Infringements Agency
RTMC	Road Traffic Management Corporation
RTRP	Revised Taxi Recapitalisation Programme
SAAF	South African Air Force
SAATM	Single African Air Transport Market
SABC	South African Broadcasting Corporation
SABOA	Southern African Bus Operations Association
SACAA	South Africa Civil Aviation Authority
SACU	Southern African Customs Union
SADC	Southern African Development Community
SAMSA	South African Maritime Safety Authority
SANRAL	South African National Roads Agency Limited
SAPS	South African Police Services
SARAP	South African Road Assessment Program
SARPS	Standards and Recommended Practices
SARS	South African Revenue Service
SASAR	South African Search and Rescue Organisation
SCM	Supply Chain Management
SDIP	Service Delivery Improvement Plan
SEIAs	Socio Economic Impact Assessment System
SIDS	Standard Instrument Departures
SIP	Strategic Infrastructure Programme
SLA	Service Level Agreement
SMART	Specific, Measurable, Achievable, Realistic and Timely
SMME	Small, medium and micro enterprises
SMS	Senior Management Service
SmS	Safety Management System
SMSR	Safety Management System Report
SOC	State-Owned Company
SOEs	State-owned Enterprises
SONA	State of the Nation Address
SRAB	Starting Regulatory Asset Base
STARS	Standard Terminal Arrival Routes
STER	Single Transport Economic Regulator
TAT	Transport Appeals Tribunal
TETA	Transport Education and Training Authority
TFR	Transnet Freight Rail
TNPA	Transnet National Ports Authority
ToR	Terms of Reference
TRP	Taxi Recapitalisation Programme
TVET	Technical Vocational Educational and Training
UN	United Nations
USOAP	Universal Security Audit Programme
VSAT	Very Small Aperture Terminal
VTC	Vehicle Testing Centres
WEGO	Weighted Efficiency Gains from Operations
WHO	World Health Organisation

 

 

 

 

 

 

 

 

 

---

[1] Department of Transport (2021), p. 23.

[2] Department of Transport (2021), p. 74.

[3] Department of Transport (2021), p. 75.

[4] Department of Transport (2021), pp. 26-.73

[5] Department of Transport (2021), p. 24.

[6] Department of Transport (2021), p.89.

[7] Department of Transport (2021), pp. 91-104.

[8] Department of Transport (2021), pp. 112-117.

[9] Department of Transport (2021), pp. 127-130.

[10]Economic Sector, Employment and Infrastructure Development.

[11] Department of Transport (2021), pp. 140-143.

[12] National Economic Development Labour Council.

[13] Department of Transport (2020), pp. 155-157.

[14] International Cooperation, Trade and Security Cluster.

[15] Department of Transport (2021), pp. 171-176.

[16] Department of Transport (2021), pp. 185-194.

[17] BRT – Bus Rapid Transit.

[18]It should be underscored that this section only covers the first Three Quarters of 2020/21, as the Fourth Quarter was not yet available at the time of analysis.

[19] The actual expenditure of R14.7 million should be classified under Programme 1: Administration and relates to goods and services, specifically payments for the office accommodation lease. The expenditure had been awaiting classification at the time the Department submitted the June 2020 in-year monitoring report (IYM). However, the Department has since classified the spending accordingly in the Basic Accounting System (BAS) (National Treasury 2020). 

[20] National Treasury (2020b). p. 157.

[21] National Treasury (2020b), p. 159.

[22] National Treasury (2020c), pp. 143-144.

[23]Ibid.

[24] National Treasury (2021).

[25] National Treasury (2021), p. 865.

[26] National Treasury (2021).

[27] Department of Transport (2021), p. 9.

[28] Department of Transport (2021), p. 39.

[29] Department of Transport (2021), p.177.

[30] Department of Transport (2021), p. 41.

[31] Mbalula (2020).

[32] National Treasury (2021).

[33] Airports Company South Africa (2021), p. 12.

[34] Aeronautical operations denote passenger facilitation services for which passenger service charges are collected, as well as airline services in the form of landing and parking fees. Conversely, non-aeronautical revenue includes all other revenue streams, such as concessionaire revenues – retail, car rental, advertising and parking revenues – as well as office rental and property development revenue streams.

[35] Airports Company South Africa (2021), p. 52.

[36]Ibid.

[37]Ibid.

[38] Airports Company South Africa (2021), p. 54.

[39] Airports Company South Africa (2021), p. 55.

[40]Ibid.

[41]Ibid.

[42] Airports Company South Africa (2021), p. 57.

[43]Ibid.

[44]Ibid.

[45]Ibid.

[46] Airports Company South Africa (2021), p. 59.

[47]Ibid.

[48] Airports Company South Africa (2021), p. 60.

[49]Ibid.

[50] Airports Company South Africa (2021), p. 61.

[51]Ibid.

[52] Cross-Border Road Transport Agency (2021), p. 9.

[53] Cross-Border Road Transport Agency (2021), p. 80.

[54] Passenger Rail Agency of South Africa (2021), p. 6.

[55] Passenger Rail Agency of South Africa (2021), pp. 6-8.

[56] Passenger Rail Agency of South Africa (2021), p. 91.

[57]Ibid.

[58]Ibid.

[59]Ibid.

[60] Road Accident Fund (2021), p. 13.

[61] Railway Safety Regulator (2021).

[62] Railway Safety Regulator (2021), pp. 24-25.

[63] Road Traffic Infringement Agency (2021), p. 8.

[64]Ibid.

[65]Ibid.

[66] Road Traffic Management Corporation (2021), pp. 11-16.

[67] South African Maritime Safety Authority (2021), p. 34.

[68] South African National Roads Agency Limited (2021), p. 11.

[69]Ibid.

[70] SANRAL’s Horizon 2030 articulates the Agency’s long-term vision and perspective, and contributes to the NDP objectives (South African National Roads Agency Limited (2021), p. 12.

[71] South African National Roads Agency Limited (2021), p. 55.