ATC220513: Report of the Portfolio Committee on Transport on Budget Vote 40: Transport and the Strategic and Annual Performance Plan 2022/23 of the Department of Transport, dated 10 May 2022

Transport

1. REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT ON BUDGET VOTE 40: TRANSPORT AND THE STRATEGIC PLAN AND ANNUAL PERFORMANCE PLAN 2022-23 OF THE DEPARTMENT OF TRANSPORT, DATED 10 MAY 2022

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

1. INTRODUCTION

The Portfolio Committee on Transport (the Committee) considered the 2022/23 budget of the Department of Transport (“the Department” or “DoT”) on 3 May 2022 in a joint meeting with the Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure. In preparation for this report, the Committee was briefed on the revised Strategic Plan, 2022/23 Annual Performance Plan (APP) and 2022/23 Budget Allocations of the Department of Transport.

The Committee further hereto engaged with the Road Accident Fund (RAF) on its 2022/23 APP and budget. The Committee could not engage with all of the Department’s entities prior to compiling this report due to limited meeting time before the scheduled Budget Vote Debate of the Department, however, it had received the Strategic/Corporate Plans and APPs from all of the entities of the Department. The Committee will be engaging with the entities on their APPs as soon as the programme allows and the outcomes of the engagements, and that of the meeting with the RAF, will be contained in a separate report to the National Assembly.

The report provides an overview of the 2022/23 budget and APP of the Department. It concludes by capturing the observations and recommendations made by the Portfolio Committee on Transport in this regard.

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

The 2022 State of the Nation Address (SONA);
The Department of Transport’s APP for 2021/22 and 2022/23 and its Budget Allocation outlined in the Budget Review for 2022/23; 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 levels of 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 spheres of 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 they are distinctive, interdependent and interrelated. They are 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 Annual Performance Plans (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.

Commencing from the 2022/23 financial year, customised indicators for the transport sector have been finalised and will be implemented by all provinces. As part of oversight, the Department will receive reports from provinces on a quarterly basis. Customised indicators were approved for implementation for the 2022/23 – 2024/25, in line with the performance period of the Strategic Plan.[2]

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.

2.1 organisational structure of the department

In an endeavour to discharge its mandate effectively and efficiently, the Department is structured as follows:[3]

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.[4] 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 (DG), Office of the Chief Operations Officer (COO) and the Office of the Chief Financial Officer (CFO) fall under the Administration programme.

2.2 strategic outcomes oriented goals of the department

The Department has identified the following eight (8) areas that it will prioritise in 2022/23, in response to the MTSF (2019 – 2024):[5]

1) Safety (and security) 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 Strategic Plan and the accompanying APP of the Department are aligned with the MTSF, and also articulate the long-term vision of the National Development Plan (NDP) 2030. To that effect, the table below shows a schematic illustration of the alignment between the MTSF pillars, apex priorities of the 6th Administration and the strategic focus areas of the Department:[6]

Table 1: Alignment between the MTSF Pillars, Apex Priorities of the 6th Administration and the Strategic Focus Areas of the Department

MTSF Pillars	Apex Priorities	Department’s Strategic Focus Areas
Achieving a more capable State	Priority 1: A capable, ethical and developmental State	Governance – Greater efficiency, effectiveness and accountability
	Priority 6: Social cohesion and community safety	Safety (and security) as an enabler of service delivery
	Priority 7: A better Africa and world	Building a maritime nation, elevating the oceans economy
	Priority 7: A better Africa and world	Environmental protection – Recovering and maintaining healthy natural environment
Driving a strong and inclusive economy	Priority 2: Economic transformation and job creation Priority 5: Spatial integration, human settlements and local government	Infrastructure build that stimulates economic growth and job creation Building a maritime nation that, elevating the oceans economy
Driving a strong and inclusive economy		Accelerating transformation towards greater economic participation Public transport that enables social emancipation and an economy that works
Building and strengthening capabilities of South Africans	Priority 1: A Capable, ethical and developmental state	Governance – Greater efficiency, effectiveness and accountability
Building and strengthening capabilities of South Africans	Priority 3: Education, skills and health	Improved efficiency and effectiveness of support services

(Source: Department of Transport (2022))

PROGRAMME 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.

For 2022/23, the planned annual and quarterly targets in the Administration programme are the following:[7]

Administration (Office of the Director-General)

Sub-Programme: DG Administration

Table 2: Sub-Programme: DG Administration: 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 100% implementation
Percentage responses to parliamentary questions within stipulated timelines	100% responses to parliamentary questions	-	Bi-Annual Report on the status of responses to parliamentary questions • 100% responses within stipulated timelines	-	Annual Report on the status of responses to parliamentary questions 100% responses within stipulated timelines

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

100% implementation

Percentage responses to parliamentary questions within stipulated timelines

100% responses to parliamentary questions

Bi-Annual Report on the status of responses to parliamentary questions

• 100% responses within stipulated timelines

Annual Report on the status of responses to parliamentary questions

100% responses within stipulated timelines

(Source: Department of Transport (2022))

Sub-Programme: Strategic Planning, Monitoring and Evaluation

Table 3: Sub-Programme: Strategic Planning, Monitoring and Evaluation: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
Revised DoT gender-responsive Strategic Plan approved by Executive Authority	Approved Revised DoT gender-responsive Strategic Plan (2020-2025) implemented	-	-	-	Progress Report on the implementation of the Revised DoT gender-responsive Strategic Plan (2020- 2025)
DoT gender-responsive Annual Performance Plan approved by Executive Authority	DoT gender-responsive Annual Performance Plan (2023/24) approved	-	-	Draft APP 2022/23 submitted to the Department of Planning, Monitoring and Evaluation (DPME)	Approved DoT gender-responsive APP 2022/23 submitted to Parliament for tabling
DoT gender-responsive Annual Report approved by Executive Authority	DoT gender-responsive Annual Report (2021/22) approved	Draft DoT gender-responsive Annual Report (2021/22) submitted to the Office of the Auditor-General of South Africa (AGSA)	Approved DoT gender-responsive Annual Report (2021/22) submitted to Parliament for tabling	-	-

(Source: Department of Transport (2022))

Sub-Programme: Chief Audit Executive (CAE)

Table 4: Sub-Programme: CAE: 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 the status of reported incidents of corruption in the DoT	-	Annual Report on the status of reported incidents of corruption in the DoT

(Source: Department of Transport (2022))

Administration (Office of the Chief Operations Officer)

Sub-Programme: Human Resource Management and Development

Table 5: Sub-Programme: Human Resource Management and Development: 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 vacant positions filled	10 vacant positions filled	15 vacant positions filled	15 vacant positions filled	10 vacant positions filled
Ethics committees established and operationalised	Operations of departmental ethics committees monitored	-	Bi-annual Report in the operations of ethics committees in the Department	-	Annual Report on the operations of ethics committees in the Department
% of employees trained, in line with the Workplace Skills Plan (WSP)	30% of employees trained	5% of employees exposed to skills-based training, as per the WSP	15% of employees exposed to skills-based training, as per the WSP	25% of employees exposed to skills-based training, as per the WSP	30% of employees exposed to skills-based training, as per the WSP
Number of bursaries managed	160 bursaries managed	- (First semester advertisement of bursaries issued)	Bi-Annual Report on the status of existing bursaries	- (Second semester advertisement of bursaries issued)	Annual Report on the status of existing bursaries
Number of interns employed	Implementation of the Internship Programme monitored	-	Bi-Annual Status Report on the implementation of the Internship Programme	-	Annual Status Report on the implementation of the Internship Programme

(Source: Department of Transport (2022))

Administration (Office of the Chief Financial Officer)

Sub-Programme: Budgeting and Compliance

Table 6: Sub-Programme: Budgeting and Compliance: 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 finding	-	-	Action plans to address audit findings raised by the AGSA for the 2021/22 financial year developed	Annual Report on the implementation of action plan to address audit findings raised by the AGSA for the 2021/22 financial year

(Source: Department of Transport (2022))

Sub-Programme: Financial Administration and Supply Chain Management

Table 7: Sub-Programme: Financial Administration and Supply Chain Management: 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 fruitless and wasteful expenditure	50% reduction of cases of fruitless and wasteful expenditure	-	Bi-Annual Report on fruitless and wasteful expenditure in the Department	-	Annual Report on fruitless and wasteful expenditure in the Department
Percentage reduction in cases of irregular expenditure	50% reduction in cases of irregular expenditure	-	Bi-Annual Report on irregular expenditure in the Department	-	Annual Report on irregular expenditure in the Department
Percentage reduction of cases of unauthorised expenditure	50% reduction in cases of unauthorised expenditure	-	Bi-Annual Report on unauthorised expenditure in the Department	-	Annual Report on unauthorised expenditure in the Department
Percentage compliance to 30-day payment requirement	100% compliance to 30-day payment requirement	-	Bi-Annual Report on compliance to the 30-day payment requirement	-	Annual Report on compliance to the 30-day payment requirement

(Source: Department of Transport (2022))

Administration (Public Entity Oversight)

Sub-Programme: Public Entity Oversight

Table 8: Sub-Programme: Public Entity Oversight: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Functional, efficient and integrated government
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
Performance of transport sector state-owned entities monitored and analysed	Governance, financial and non-financial performance of sector entities monitored	-	Bi-Annual Analysis Report on the performance of transport sector entities developed Financial Performance Non-Financial Performance Governance		Annual Analysis Report on the performance of transport sector entities developed Financial Performance Non-Financial Performance Governance

Output Indicator

Annual Target

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Functional, efficient and integrated government

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

Performance of transport sector state-owned entities monitored and analysed

Governance, financial and non-financial performance of sector entities monitored

Bi-Annual Analysis Report on the performance of transport sector entities developed

Financial Performance
Non-Financial Performance
Governance

Annual Analysis Report on the performance of transport sector entities developed

Financial Performance
Non-Financial Performance
Governance

(Source: Department of Transport (2022))

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 the 2022/23 financial year, the Department has set itself the following annual and quarterly targets in the Integrated Transport Planning programme:[8]

Sub-Programme: Macro Sector Planning

Table 9: Sub-Programme: Macro Sector Planning: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Leadership, Governance and Accountability
Department participation in development and implementation of ‘one plans’ in two (2) district municipalities facilitated	Transport participation in the development of ‘one plans’ in the King Cetshwayo and uMgungundlovu District Municipalities facilitated	-	Bi-Annual Status Report on the development and implementation of ‘one plans” at King Cetshwayo and Umgungundlovu District Municipalities	-	Annual Status Report on the development and implementation of ‘one plans” at King Cetshwayo and Umgungundlovu District Municipalities
Department contribution in development and implementation of ‘one plans’ in fifty (50) district municipalities facilitated	Transport contribution towards the development and implementation of ‘one plans’ in fifty (50) district municipalities facilitated	-	Bi-Annual Status Report on the development and implementation of ‘one plans’ in fifty (50) district municipalities	-	Annual Status Report on the development and implementation of ‘one plans’ in fifty (50) district municipalities

(Source: Department of Transport (2022))

Sub-Programme: Research and Innovation

Table 10: Sub-Programme: Research and Innovation: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Innovation
Regulations for Autonomous Vehicle Technology approved	Legislative Gap Analysis conducted on Autonomous Vehicle Technology	Literature review conducted on the legislative gaps of Autonomous Vehicle Technology	Stakeholder consultations conducted on the safety, design and standard of Autonomous Vehicle Technology	Stakeholder consultations conducted on product liability and insurance regarding Autonomous Vehicle Technology	Stakeholder inputs considered and incorporated into the Draft Legislative Gap Analysis Report on Autonomous Vehicle Technology
Reduction in Greenhouse Gas Emissions and Pollution
Implementation of the Carbon Emission Transition monitored	Approved Framework for Electric Vehicle (EV) Regulations	Stakeholder consultations conducted on the draft Framework for EV Regulations	Stakeholder inputs considered and incorporated into the Draft Framework for EV Regulations	Internal consultations conducted on the Draft Framework for EV Regulations	Draft Framework for Electric Vehicle Regulations submitted for approval

(Source: Department of Transport (2022))

Sub-Programme: Modelling and Economic Analysis

Table 11: Sub-Programme: Modelling and Economic Analysis: 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) (Economic Regulation of Transport (ERT) Bill approved by Parliament)

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

- (Parliamentary process)

- (Parliamentary process)

- (Parliamentary process)

(Economic Regulation of Transport (ERT) Bill approved by Parliament)

(Source: Department of Transport (2022))

Sub-Programme: Regional Integration

Table 12: Sub-Programme: Regional Integration: 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	Regional Integration Strategy approved for submission to Cabinet	Stakeholder consultations conducted on the Regional Integration Strategy	Socio-Economic Impact Assessment (SEIAS) on the Regional Integration Strategy finalised	Draft Regional Integration Strategy submitted to the International Cooperation, Trade and Security (ICTS) Cluster	Draft Regional Integration Strategy approved for submission to Cabinet

(Source: Department of Transport (2022))

Sub-Programme: Freight Logistics

Table 13: Sub-Programme: Freight Logistics: 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	Inception Report on the Freight Road to Rail Migration Plan developed	Draft Freight Migration Plan developed	Stakeholders consultation conducted on the Draft Freight Migration Plan	Stakeholder inputs considered and incorporated into the Draft Freight Migration Plan

(Source: Department of Transport (2022))

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 in the 2022/23 financial year are as follows:[9]

Sub-Programme: Rail Regulation

Table 14: Sub-Programme: Rail Regulation: 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 processed in Parliament	- (Parliamentary processes)	Bi-Annual Status Report on the Railway Safety Bill progression in Parliament	- (Parliamentary processes)	Bi-Annual Status Report on the Railway Safety Bill progression in Parliament
Competitive and Accessible Markets
National Rail Bill approved by Parliament	National Rail Bill approved for submission to Cabinet	Draft National Rail Bill revised to incorporate inputs of the approved National Rail Policy	Draft National Rail Bill submitted to the DPME[10] for socio-economic impact assessment (SEIAS)[11]	Draft National Rail Bill submitted to the ESIEID[12] Cluster	National Rail Bill approved for submission to Cabinet

(Source: Department of Transport (2022))

Sub-Programme: Rail Infrastructure and Industry Development

Table 15: Sub-Programme: Rail Infrastructure and Industry Development: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Private Sector Participation (PSP) Framework approved by Cabinet	PSP Framework approved by Cabinet	Draft PSP Framework aligned with the Cabinet approved National Rail Policy	Stakeholder inputs considered and incorporated into the Draft PSP Framework	Final Draft PSP Framework approved for submission to Cabinet	- (Cabinet Process) (Draft PSP Framework approved by Cabinet)
High-Speed Rail (HSR) Corridor Framework approved by Cabinet	HSR Corridor Framework approved by Cabinet	Draft HSR Framework aligned with the Cabinet-approved National Rail Policy	Stakeholder inputs considered and incorporated into the Draft HSR Framework	Final Draft HSR Framework approved for submission to Cabinet	- (Cabinet Process) (Draft HSR Framework approved by Cabinet)
Number of new trains produced	Rolling Stock Fleet Renewal Programme monitored 42 train sets	Annual (2021/22) Analysis Report on the Rolling Stock Fleet Renewal Programme	-	Bi-Annual Analysis Report on the Rolling Stock Fleet Renewal Programme	-
Implementation of PRASA Capital Projects monitored	Management and Oversight of the PRASA Capital Programme R12.6 billion	Annual (2021/22) Analysis Report of the PRASA Capital Programme	-	Bi-Annual Analysis Report of the PRASA Capital Programme	-

(Source: Department of Transport (2022))

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 2022/23, the planned annual and quarterly targets in the Road Transport programme are the following:[13]

Sub-Programme: Road Transport Regulation

Table 16: Sub-Programme: Road Transport Regulation: 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 Analysis Monitoring Report on the implementation of the National Road Safety Strategy	Quarterly Analysis Monitoring Report on the implementation of the National Road Safety Strategy	Quarterly Analysis Monitoring Report on the implementation of the National Road Safety Strategy	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	Stakeholder consultations conducted on the Draft General Laws Amendment Bill	Stakeholder consultations conducted on the Draft General Laws Amendment Bill	Stakeholder inputs considered and incorporated into Draft General Laws Amendment Bill	Draft General Laws Amendment Bill finalised
Road Traffic Law Enforcement Entities integrated into one	Due diligence conducted on the integration of DLCA[14] / RTMC[15] / RTIA[16]	Task team to map the process of integration of road traffic law enforcement entities established	Stakeholder consultations conducted on the integration of RTMC, RTIA and DLCA	Stakeholder consultations conducted on the integration of RTMC, RTIA and DLCA	Stakeholder inputs considered and a draft Due Diligence Report developed
National Road Traffic (NRT) Amendment Bill approved by Parliament	Draft National Road Traffic Amendment Bill approved by Parliament	- (Parliamentary process)	- (Parliamentary process)	- (Parliamentary process)	- (Parliamentary process)

(Source: Department of Transport (2022))

Sub-Programme: Road Infrastructure and Industry Development

Table 17: Sub-Programme: Road Infrastructure and Industry Development: 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	Draft Road Infrastructure Funding Policy approved for submission to Cabinet	Stakeholder consultations conducted on the Draft Road Infrastructure Funding Policy	Final SEIAS conducted on the draft Road Infrastructure Funding Policy	Draft Road Infrastructure Funding Policy submitted to the ESEID Cluster	Draft Road Infrastructure Funding Policy approved for submission to Cabinet
Surfaced roads maintained (National)	SANRAL Road Maintenance Programme monitored	Quarterly Monitoring Report on the SANRAL Road Maintenance Programme	Quarterly Monitoring Report on the SANRAL Road Maintenance Programme	Quarterly Monitoring Report on the SANRAL Road Maintenance Programme	Quarterly Monitoring Report on the SANRAL Road Maintenance Programme
Surfaced roads maintained (National)	SANRAL Road Maintenance Programme monitored				Annual Monitoring Report on the SANRAL Road Maintenance Programme
Surfaced roads maintained (Provincial)	Provincial Road Maintenance Programme monitored	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	Quarterly Monitoring Report on the Provincial Road Maintenance Programme
Gravel roads maintained (Provincial)
Gravel roads maintained (Provincial)					Annual Monitoring Report on the Provincial Road Maintenance Programme
Number of jobs created through public infrastructure projects (SANRAL Road Maintenance Programme)	Monitoring Report on jobs created through the SANRAL Road Maintenance Programme	Quarterly Monitoring Report on jobs created through the SANRAL Road Maintenance Programme	Quarterly Monitoring Report on jobs created through the SANRAL Road Maintenance Programme	Quarterly Monitoring Report on jobs created through the SANRAL Road Maintenance Programme	Quarterly Monitoring Report on jobs created through the SANRAL Road Maintenance Programme
					Annual Monitoring Report on jobs created through the SANRAL Road Maintenance Programme
Number of jobs created through public infrastructure projects (Provincial Road Maintenance Programme)	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	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 (2022))

Sub-Programme: Road Engineering Standards

Table 18: Sub-Programme: Road Engineering Standards: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Rehabilitation of flood-damaged Infrastructure monitored	Rehabilitation of flood-damaged infrastructure monitored	-	Bi-Annual Analysis Report on the rehabilitation of flood-damaged infrastructure	-	Annual Analysis Report on the rehabilitation of flood-damaged infrastructure
Road inventory data monitored and analysed	Provincial and municipal Road Asset Management Systems (RAMS) data analysed	-	Bi-Annual Analysis Report on RAMS	-	Annual Analysis Report on RAMS

(Source: Department of Transport (2022))

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 in the 2022/23 financial year:[17]

Sub-Programme: Aviation Policy and Regulation

Table 19: Sub-Programme: Aviation Policy and Regulation: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Competitive and Accessible Markets
Permanent Representative of South Africa on the International Civil Aviation Organisation (ICAO) Council appointed	Representation of South Africa on the ICAO Council facilitated	Lobbying documents developed to solicit support from other ICAO Members	Candidature of South Africa onto the ICAO Council promoted	South Africa’s participation at the ICAO Assembly coordinated	Report on the outcome of South Africa’s participation at the ICAO Assembly developed
		Preparatory committee for the ICAO Assembly established	South Africa Working Papers and South Africa’s position on Working Papers from other Member States formulated
Innovation
Reviewed regulations for Remotely-Piloted Aircraft System (RPAS) approved	Review of Regulations for RPAS approved	-	Bi-Annual Status Report on the review of RPAS Regulations	-	Bi-Annual Status Report on the review of RPAS Regulations

(Source: Department of Transport (2022))

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

Table 20: Sub-Programme: Aviation Safety, Security, Environment and Search and Rescue: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Safer Transport Systems
Percentage reduction in fatal accident in the Aviation sector	Analysis Report on the State of Aviation Accidents and Incidents in South Africa 10% reduction in fatal accidents in General Aviation	Quarterly Analysis Report on aviation incidents and accidents	Cumulative Quarterly Analysis Report on aviation incidents and accidents	Cumulative Quarterly Analysis Report on aviation incidents and accidents	Annual Analysis Report on the State of Aviation Accidents and incidents in South Africa
Aeronautical and Maritime Search and Rescue Bill approved by Parliament	Draft Aeronautical and Maritime Search and Rescue Bill approved for submission to Cabinet for public comments	Stakeholder consultations conducted on the draft Aeronautical and Maritime Search and Rescue Bill	Draft Aeronautical and Maritime Search and Rescue Bill submitted to the DPME for SEIAS – Phase1	Draft Aeronautical and Maritime Search and Rescue Bill submitted to the Justice, Crime Prevention and Security (JCPS) Cluster	Draft Aeronautical and Maritime Search and Rescue Bill approved for submission to Cabinet (for public comments)
				Draft Aeronautical and Maritime Search and Rescue Bill submitted to the International Cooperation, Trade and Security (ICTS) Cluster
				Draft Aeronautical and Maritime Search and Rescue Bill submitted to the Economic Sectors, Investment, Employment and Infrastructure Development (ESIEID) Cluster

(Source: Department of Transport (2022))

Sub-Programme: Aviation Economic Analysis and Industry Development

Table 21: Sub-Programme: Aviation Economic Analysis and industry Development: Indicators, Annual and Quarterly Targets

Output Indicator

Annual Target

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Competitive and Accessible Markets

Number of jobs create

Implementation of the ACSA Infrastructure Programme monitored

17 064 jobs

Quarterly Analysis Report on jobs supported through ACSA Infrastructure Programme

(Source: Department of Transport (2022))

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 Ports Regulator (PRSA), National Ports Authority; South African Maritime Safety Authority (SAMSA) industry and international bodies.

The set annual and quarterly targets in the Maritime Transport programme for the 2022/23 financial year are as follows:[18]

Sub-Programme: Maritime Policy and Legislation

Table 22: Sub-Programme: Maritime Policy and Legislation: 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 re-submitted to the Cabinet (for approval)	Maritime Development Bill submitted to Cabinet	- (Cabinet process)	- (Cabinet process)	- (Cabinet process)
Merchant Shipping Bill approved by Parliament	- (Draft Merchant Shipping Bill approved for introduction to Parliament)	Draft Merchant Shipping Bill submitted to Cabinet	- (Cabinet process)	- (Cabinet process)	(Obtain Cabinet approval for introduction to Parliament
Reduction in Greenhouse Gas (GHG) Emissions and Pollution
Marine Pollution Prevention Amendment Bill approved by Parliament	Marine Pollution Prevention Amendment Bill (incorporating Annexes IV and VI) approved by Cabinet for introduction to Parliament	- (Cabinet Process)	- (Cabinet Process)	- (Cabinet Process)	- (Obtain Cabinet approval for introduction to Parliament)

(Source: Department of Transport (2022))

Sub-Programme: Maritime Infrastructure and Industry Development

Table 23: Sub-Programme: Maritime Infrastructure and Industry Development: 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 on the corporatisation of the TNPA	-	Bi-Annual Report on the status of corporatisation of the TNPA	-	Annual Report on the status of corporatisation of the National Ports Authority
Operation Phakisa Oceans Economy Three-Foot Plan monitored	Annual Analysis Report on Operation Phakisa Finalisation of the Oceans Economy Masterplan	Assessment report on Oceans Economy Masterplan and 3- Foot Plan	Progress Report on the Oceans Economy Masterplan and 3-Foot Plan	Progress Report on the Oceans Economy Masterplan and 3-Foot Plan	Annual Report on the Oceans Economy Masterplan and 3-Foot Plan
Operating Model for a National Shipping Company approved by Cabinet	Model for a National Shipping Company approved for submission to Cabinet	Stakeholder consultations conducted on the concept model for the establishment of a National Shipping Company	Stakeholder consultations conducted on the concept model for the establishment of a National Shipping Company	Terms of reference developed for the development of the business case for a National Shipping Company	Model for a National Shipping Company approved for submission to Cabinet.

(Source: Department of Transport (2022))

Sub-Programme: Maritime Implementation, Monitoring and Evaluation

Table 24: Sub-Programme: Maritime Implementation, Monitoring and Evaluation: 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	Analysis Report on maritime safety incident rate	-	Bi-Annual Analysis Report on maritime safety incident rate	-	Annual Analysis Report on maritime safety incident rate
Analysis Report on reportable maritime fatality rate	Analysis Report on maritime fatality rate	-	Bi-Annual Analysis Report on maritime fatality rate	-	Annual Analysis Report on maritime fatality rate
National Maritime Security Strategy (NMSS) approved by Cabinet	NMSS approved for submission to Cabinet	Stakeholder consultations conducted on the Maritime Security Strategy	Stakeholder consultations conducted on the Maritime Security Strategy	Stakeholder inputs considered and incorporated into the Maritime Security Strategy	NMSS approved for submission to Cabinet
Reduction in GHG Emissions and Pollution
Pollution incidents reduced	Analysis Report on maritime pollution incidents	-	Bi-Annual Analysis Report on maritime pollution incidents	-	Annual Analysis Report on maritime pollution incidents

(Source: Department of Transport (2022))

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 in 2022/23:[19]

Sub-Programme: Public Transport Network Development

Table 25: Sub-Programme: Public Transport Network Development: 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	Pilot phase roll out of Integrated Single Ticketing System monitored in one (1) city.	Pilot phase roll out of Integrated Single Ticketing System monitored in one (1) city.	Pilot phase roll out of Integrated Single Ticketing System monitored in one (1) city.	Annual Monitoring Report on the pilot phase roll out of Integrated Single Ticketing System developed
Public Transport
Number of cities operating integrated public transport networks	Integrated Public Transport Network (IPTN) Programme monitored 10 cities operating IPTNs	Bilateral progress engagements conducted in five (5) selected municipalities	Bilateral progress engagements conducted in five (5) selected municipalities	Bilateral progress engagements conducted in five (5) selected municipalities	Bilateral progress engagements conducted in five (5) selected municipalities
Number of average weekday passenger trips across cities operating IPTNs	150 000 average week day passenger trips in ten (10) 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 week-day passenger trips of the IPTN Programme
Revised Bus Rapid Transit (BRT) specifications and technical norms and standards implemented	IPTN norms and standards approved and published	Gap analysis conducted on IPTN specifications and technical norms and standards	Existing IPTN specifications and technical norms and standards revised and updated	Stakeholder consultations conducted on revised IPTN specifications and technical norms and standards	Stakeholder consultations conducted on revised IPTN specifications and technical norms and standards
Percentage compliance with spatial referencing of IPTN Programme	50% compliance with spatial referencing of IPTN Programme	-	-	-	Annual Status Report on IPTN programme compliance with spatial referencing
Percentage compliance with universal design norms and standards	100% compliance · Ten (10) 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 BRTs	17 hours (demand-driven)	-	-	-	Annual Status Report on operational hours of BRTs

(Source: Department of Transport (2022))

Sub-Programme: Public Transport Regulation

Table 26: Sub-Programme: Public Transport Regulation: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Public Transport
Transport Appeal Tribunal (TAT) Amendment Bill approved by Parliament	TAT Amendment Bill approved by Parliament	(Parliamentary Process)	Bi-Annual Status Report on the TAT Amendment Bill Parliamentary approval process	(Parliamentary Process)	Annual Status Report on the TAT Amendment Bill Parliamentary approval process
Fully capacitated and operational National Public Transport Regulator (NPTR)	Business case to guide establishment of the NPTR developed	Technical specifications (and inception report) for the development of a business case and implementation plan for the establishment of the NPTR developed	Status quo analysis conducted on NPTR functions and	Consultations conducted on the draft business case and implementation plan	Final business case (and implementation plan) for the establishment of the NPTR developed
	Business case to guide establishment of the NPTR developed	Appointment of NPTR committee members finalised	Draft business case and implementation plan developed
Standardised Provincial Regulatory Entity (PRE) business processes	Draft Standard Operating Procedure (SOP) manual for PREs (and NPTR) approved	Existing SOPs (NPTR and PREs) analysed	Consultations on the draft SOP conducted and inputs incorporated into the draft SOP	Draft SOP submitted to the NPTR for approval	Workshops on the approved SOP conducted
		Draft SOP developed		Draft SOP submitted to the NPTR for approval	Workshops on the approved SOP conducted

(Source: Department of Transport (2022))

Sub-Programme: Public Transport Industry Development

Table 27: Sub-Programme: Public Transport Industry Development: Indicators, Annual and Quarterly Targets

Output Indicator	Annual Target	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Public Transport
Public Transport Subsidy Policy approved	Draft Public Transport Subsidy Policy developed and submitted to Cabinet	Draft Subsidy Policy submitted to the DPME for socio-economic impact analysis	Draft Subsidy Policy submitted to the ESIEID Cluster	Draft Subsidy Policy submitted to the SPCHD[20] Cluster	Draft Public Transport Subsidy Policy approved for submission to Cabinet
Public Transport Funding Model developed	Draft Public Transport Funding Framework developed	Consultations conducted on the Draft Public Transport Funding framework to determine process and key components of the Mode	Consultations conducted on the Draft Public Transport Funding framework to determine process and key components of the Model	Stakeholder inputs considered and incorporated into the Draft Public Transport Funding Framework	Draft Public Transport Funding Model submitted to the National Treasury for consideration
Framework for the taxi industry empowerment model implemented (60% ownership of the Taxi Scrapping Entity)	Implementation of the approved framework for the taxi industry empowerment model monitored	-	Bi-Annual Monitoring Report on the implementation of the taxi industry 60% ownership of the Taxi Scrapping Entity	-	Annual Monitoring Report on the implementation of the taxi industry 60% ownership of the Taxi Scrapping Entity
Public Transport Operations monitored in provinces	Annual Monitoring Report on public transport operations in provinces	Quarterly Monitoring Report on public transport operations in provinces	Quarterly Monitoring Report on public transport operations in provinces	Quarterly Monitoring Report on public transport operations in provinces	Annual Monitoring Report on public transport operations in provinces
Safer Transport Systems
Number of old taxi vehicles scrapped[21]	Annual progress Report on projected taxis scrapped (Projected scrapping of 3 750 old taxi vehicles)	Quarterly Progress Report on taxis scrapped (Projected scrapping of 937 old taxi vehicles)	Quarterly Progress Report on taxis scrapped (Projected scrapping of 938 old taxi vehicles)	Quarterly Progress Report on taxis scrapped (Projected scrapping of 938 old taxi vehicles)	Quarterly Progress Report on taxis scrapped (Projected scrapping of 937 old taxi vehicles)
Programmes to address gender-based violence in the taxi industry implemented	Implementation of programmes addressing violence against women, youth and persons with disabilities monitored 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 (2022))

Sub-Programme: Rural and Scholar Transport Implementation

Table 28: Sub-Programme: Rural and Scholar Transport Implementation: 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 IPTN plans developed for two district municipalities · Sekhukhune DM · Amathole DM	Stakeholder consultations conducted with the two district municipalities	Concept document developed for the development of IPTN plans	Technical specifications developed 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	8 000 bicycles distributed	1 500 bicycles distributed in provinces (projected figure)	2 000 bicycles distributed in provinces (projected figure)	2 000 bicycles distributed in provinces (projected figure)	2 500 bicycles distributed in provinces (projected figure)

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 IPTN plans developed for two district municipalities

· Sekhukhune DM

· Amathole DM

Stakeholder consultations conducted with the two district municipalities

Concept document developed for the development of IPTN plans

Technical specifications developed 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

8 000 bicycles distributed

1 500 bicycles distributed in provinces (projected figure)

2 000 bicycles distributed in provinces (projected figure)

2 500 bicycles distributed in provinces (projected figure)

(Source: Department of Transport (2022))

BUDGET ANALYSIS: VOTE 40: DEPARTMENT OF TRANSPORT

overview of the 2021/22 financial year[22]

3.1.1 First Quarter Expenditure of 2021/22

Table 29: 2021/22 First Quarter Expenditure

Programme R million	Main Appropriation	Available Budget	Quarter 1 Actual Expenditure	Expenditure as % of Available Budget	Quarter 1 Projected Expenditure	Variance from Projected Expenditure	% Variance from Projected Expenditure	COVID-19 Spending
Administration	497	497	96.8	19.5%	119	22.2	18.6%	0.2
Integrated Transport Planning	92.2	92.2	14.6	15.8%	16.7	2.1	12.5%	0.0
Rail Transport	16 785.8	16 785.8	3 714.2	22.1%	3 717.9	3.7	0.1%	0.0
Road Transport	34 166.7	34 166.7	9 361.9	27.4%	9 461.3	99.4	1.1%	0.0
Civil Aviation Transport	503.9	503.9	116.6	23.1%	143.7	27.1	18.8%	0.0
Maritime Transport	157.5	157.5	17.5	11.1%	39.8	22.3	56%	0.0
Public Transport	14 488.6	14 488.6	1 280.4	8.8%	1 487.3	207	13.9%	0.0
Total	66 691.8	66 691.8	14 601.9	21.9%	14 985.6	383.7	2.6%	0.2

(Source: National Treasury (2021a))

In 2021/22, the budget allocation of the Department stood at R66.7 billion. By the end of the First Quarter, the Department had spent R14.6 billion against the Quarter’s projection of R15 billion.[23] Spending was R383.7 million (or 2.6%) lower than projected. This was mainly in transfers and subsidies under the Road Transport and Public Transport programmes.

The Department spent R114.3 million against the First Quarter projection of R127.8 million for the Compensation of Employees.[24] It spent R10.6 million (or 13.5%) lower than projected mainly due to the slow filling of vacant posts.[25] The Department had 748 filled posts against a funded establishment of 921 posts. This represented a vacancy rate of 18.8% (or (173 vacant posts).

3.1.2 Second Quarter Expenditure of 2021/22

Table 30: 2021/22 Second Quarter Expenditure

Programme R million	Main Appropriation	Available Budget	Quarter 2 Actual Expenditure	Expenditure as % of Available Budget	Quarter 2 Projected Expenditure	Variance from Projected Expenditure	% Variance from Projected Expenditure	COVID-19 Spending
Administration	497	522.2	173	33.1%	246.7	73.7	29.9%	0.4
Integrated Transport Planning	92.2	90.2	29.1	32.3%	37.9	8.8	23.2%	0.0
Rail Transport	16 785.8	16 806.4	4 555.3	27.1%	7 070.9	2 515.6	35.6%	0.0
Road Transport	34 166.7	34 222	18 474.3	54%	18 510.4	36	0.2%	0.0
Civil Aviation Transport	503.9	496.3	227.1	45.8%	262.5	35.4	13.5%	0.0
Maritime Transport	157.5	155.2	58.2	37.5%	82.1	23.9	29.1%	0.0
Public Transport	14 488.6	13 133.3	5 530.1	42.1%	5 717.8	187.7	3.3%	0.0
Total	66 691.8	65 425.5	29 047.1	44.4%	31 928.2	2 881.2	9%	0.4

(Source: National Treasury (2021b))

By the end of the Second Quarter of 2021/22, the Department had spent R29 billion, which was 44.4% of its available budget.[26] It spent R236.3 million against the Second Quarter projection of R263 million for the Compensation of Employees. Spending was R26.8 million (or 10.2%) lower than projected mainly due to the slow filling of vacant posts.[27] The Department had 741 filled posts against a funded establishment of 921 posts. This translated into a vacancy rate of 19.5% (or 180 vacant posts).[28]

3.1.3 Third Quarter Expenditure of 2021/22

Table 31: 2021/22 Third Quarter Expenditure

Programme R million	Main Appropriation	Adjusted Budget	Available Budget	Q3 Actual Expenditure	Expenditure As Percentage of Available Budget	Q3 Projected Expenditure	Variance from Projected Expenditure	% Variance from Projected Expenditure	COVID-19 Spending
Administration	497	522.2	522.2	257.1	49.2%	384.1	127	33.1%	0.4
Integrated Transport Planning	92.2	90.2	90.2	45.2	50.1%	64.4	19.2	29.8%	0.0
Rail Transport	16 785.8	16 806.4	16 806.4	13 573.6	80.8%	13 607.7	34.1	0.3%	0.0
Road Transport	34 166.7	34 222	34 222	27 177.2	79.4%	27 057.1	-120.1	-0.4%	0.0
Civil Aviation Transport	503.9	496.3	496.3	327.1	65.9%	358	30.9	8.6%	0.0
Maritime Transport	157.5	155.2	155.2	81.2	52.3%	103.8	22.6	21.7%	0.0
Public Transport	14 488.6	13 133.3	13 133.3	8 080.5	61.5%	9 087.5	1 006.9	11.1%	0.0
Total	66 691.8	65 425.5	65 425.5	49 541.9	75.7%	50 662.5	1 120.5	2.2%	0.4

(Source: National Treasury (2021c))

By the end of the Third Quarter of 2021/22, the Department had spent R49.5 billion against a projection of R50.7 billion. This was R1.1 billion (or 2.2%) lower than projected. The lower than projected spending was mainly on transfers and subsidies in the Administration and the Public Transport programmes, as well on Goods and Services across other programmes.[29]

The Department spent R355.7 million against a projection of R383.3 million for the Compensation of Employees. Spending was R27.6 million (or 7.2%) lower than projected, mainly due to the slow filling of vacant posts.[30] It had 738 filled posts against a funded establishment of 921 posts. This represented a vacancy rate of 19.9% (or 183 vacant posts).[31]

The Department spent R338 million against the Third Quarter projection of R560.7 million for Goods and Services. Spending was R222.7 million (or 39.7%) lower than projected due to delays in various projects across programmes. These included the following:[32]

Outstanding invoices for Office Accommodation;
Development of the Road Asset Management Tool;
Public transport grant monitoring; and
Development of the Road Disaster Management Plan.

According to the National Treasury, the Department anticipates an underspending on Goods and Services by the end of the financial year. However, the management of the Department has resolved to “review and revise the procurement plan to improve spending”.[33]

policy priorities for 2022/23 and alignment with national, regional, continental and global agendas

3.2.1 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):[34]

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 policy priorities of the Department are aligned with the MTSF, and also articulate the long-term vision of the NDP 2030. To that effect, table 1 above shows a schematic illustration of the alignment between the MTSF pillars, apex priorities of the 6th Administration and the strategic focus areas of the Department.[35]

A key proposal in the NDP is to improve the country’s economic infrastructure such as roads and rail transport to boost growth and create employment.[36] Over the medium-term, the Department plans to give effect to these policy priorities by focusing on:[37]

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 2022 State of the Nation Address (SONA), President Ramaphosa accentuated four areas that the Department will be zeroing in on in 2022/23 as he committed Government to:[38]

Rehabilitating the passenger rail network in ten (10) priority corridors;
Using Infrastructure Fund to invest in transport;
Implementing the rural roads programme through using labour intensive methods to construct or upgrade 685 kilometres of rural roads over three years; and
Introducing measures to curb the theft of scrap metal or cable on the country’s infrastructure, including trains.

The Passenger Rail Agency of South Africa (PRASA) is constantly under threat from a security perspective, with the pillaging and destruction of the rail infrastructure continuing largely unabated. Not only are trains continuously being vandalised, but the rail network infrastructure has also been under consistent attack, stripped of copper cables, railway tracks, signalling equipment and overhead electricity cables, and its facilities across the country continue to be vandalised.[39]

Inadequate physical access and the lack of adequate security measures to restrict access to passengers with valid tickets result in low passenger numbers being recorded. This contributes to the declining fare revenue amounts, poor financial performance and allowed for the vandalism to continue.[40] There needs to be a holistic security strategy to ensure that the assets of PRASA are secure, commuters are safe and fare revenue evasion is combatted.

There is a commonly held view that rail should become “the backbone” of South Africa’s public transport system.[41] It is, therefore, imperative that the passenger rail service is safe, reliable, affordable and efficient. It should not only improve people’s economic prospects, but also enhance their quality of life.

In September 2018, President Ramaphosa announced the Infrastructure Fund Initiative that builds on efforts to transform public infrastructure development. The Fund is meant to fundamentally transform the State’s approach to the financing of infrastructure projects and reduce the current fragmentation of infrastructure spend and thereby ensure more efficient and effective use of resources and improve the speed and quality of delivery.[42]

The Infrastructure Fund is intended as Government funding and ancillary support for co-financing of blended finance programmes and projects. This includes financing from the local capital market and international financing institutions, as a complement for broader budgeting reforms that the Government is undertaking to address problems in the infrastructure value chain.[43]

The inaugural Sustainable Infrastructure Development Symposium (SIDS) that took place in June 2020 was a huge boost for Government’s infrastructure build plans. Working with the private sector, Government was able to identify 276 projects with a total investment value of more than R2.7 trillion.[44] Government has since gazetted 50 of these Strategic Integrated Projects with a value of R340 billion.[45] In addition, it listed an additional twelve special projects.

The projects are in the areas of water and sanitation, energy, transport, digital infrastructure, agriculture and agro-processing, and human settlements. Each of these areas is vital to the rejuvenation of the country’s economy, reducing the cost of doing business and improving the country’s competitiveness.

Rural roads are often treated as the last link of the transport network.[46] Despite this,
they often form the most important link in terms of providing access for the rural
population. Their permanent or seasonal absence will act as a crucial factor in
terms of the access of rural communities to basic services such as education,
primary health care, water supply, local markets and economic opportunities.

Investments in rural roads have significant potential for the use of local resources. They
create decent jobs, support the local economy and strengthen local commerce and
have therefore important implications for poverty reduction and local economic
and social development.[47] The direct consequence of investing in rural roads is the
generation of jobs, incomes and business opportunities, particularly if the development and maintenance of these rural roads is targeted in favour of local resource-
based methods. Longer lasting impacts such as improved access to goods and
services and production and productivity enhancing impacts further contribute to
sustainable poverty reduction and local economic and social development.[48] However, impacts will only be sustainable if the roads are maintained.

3.2.2 United Nations Decade of Action for Road Safety 2020-2030 (UNDA)

South Africa is a participant in the second United Nations Decade of Action for Road Safety 2020-2030 (UNDA). Consequently, it has endorsed the global undertaking seeking to build on the gains of the first Decade of Action for Road Safety 2011-2020. The objective is to promote a coordinated effort towards sustaining the attainment of the road safety goals to save up to 5 million lives, and to contribute to the prevention of up to 50 million serious injuries by 2030 using 2020 as a baseline.[49] In accordance with this commitment, the National Road Safety Strategy (NRSS), which was approved by Cabinet in 2017, sets a new path for creating a “safe and secure road environment in South Africa”.[50] The primary strategic target of the NRSS is to ultimately reduce fatal crashes by 50% by the year 2030. The NRSS is based on a safe system approach that looks at a holistic view of the road transport system and interactions among roads, and roadsides, travel speed, vehicles and the road user.

A perusal of the Department’s budget allocation for 2022/23 lends credence to its commitment to national, regional, continental and global imperatives. This is evidenced by strong 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.

2022/23 BUDGET ANALYSIS

The section below analyses the budget allocation for the Department for the 2022/23 financial year.

Table 32: Overall Budget – Transport

Programme	Budget		Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23
Administration	522.2	507.8	- 14.4	- 36.3	-2.8%	-7%
Integrated Transport Planning	90.2	93.0	2.8	- 1.2	3.1%	-1.3%
Rail Transport	16 806.4	19 991.8	3 185.4	2 324.5	19%	13.8%
Road Transport	34 222.0	33 983.4	- 238.6	- 1 702.0	-0.7%	-5%
Civil Aviation Transport	496.3	424.8	- 71.5	- 89.8	-14.4%	-18.1%
Maritime Transport	155.2	155.4	0.2	- 6.5	0.1%	-4.2%
Public Transport	13 133.3	13 969.9	836.6	235.0	6.4%	1.8%
TOTAL	65 425.6	69 126.1	3 700.5	723.8	5.7%	1.1%

(Source: National Treasury (2022))[51]

For 2022/23, the Department receives R69.1 billion (excluding direct charges) – constituting 6.5% of the R1.1 trillion national budget vote.[52]

Nominally (without inflation), the Department’s budget increases by 5.7% from the previous financial year, and it increases by 1.1% when one takes cognisance of inflation (real terms). The significant increase is in the Rail Transport programme, which grows by 13.8% (above inflation), and increases nominally by 19% (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 2022/23.[53]

In terms of economic classification, transfers and subsidies comprise R67.7 billion (or 97.9%) of the departmental budget, and the bulk is allocated to the following bodies:[54]

Provinces and municipalities (R24.5 billion);
Departmental agencies and accounts (R22.8 billion); and
Public corporations and private enterprises (R19.9 billion).

The overall allocation to compensation of employees stands at R542.6 million, and remains unchanged as it was in the previous financial year (2021/22). This year, expenditure on consultants (business and advisory services) is set to increase from R417.8 million in 2021/22 to R456 million in 2021/22. The exponential increase in the use of consultants (business and advisory services) is in the Administration Transport programme that increases from R3.5 million in 2021/22 to R13.1 million in 2022/23, translating into an increase of 73.3%. The increase in the use of consultants in the programme is in, large part, attributed “to the increases in spending for the consultants to assist the Department in acquiring the services for the private-public partnership for its long-term accommodation and the finalisation of its document management system.[55]

The Public Transport programme continues to have the biggest funding for the use of consultants, which increases from R250.6 million previously, to R264.3 million in 2022/23 (or 5.2% in real terms).

3.4 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.

3.4.1 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 33: Programme 1: Administration

Programme	Budget		Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23	Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
Ministry	38.6	42.4	3.8	2.0	9.8%	5.1%
Management	94.8	93.7	- 1.1	- 5.1	-1.2%	-5.4%
Corporate Services	285.1	254.3	- 30.8	- 41.8	-10.8%	-14.6%
Communications	37.9	40.4	2.5	0.8	6.6%	2%
Office Accommodation	65.7	77.0	11.3	8.0	17.2%	12.2%
TOTAL	522.1	507.8	- 14.3	- 36.2	-2.7%	-6.9

(Source: National Treasury (2022))

The Administration programme receives R507.8 million, translating into a -6.9% below inflation decrease from the previous financial year. Though the Corporate Services sub-programme receives the biggest share of the Administration programme allocation, i.e. 50.1%, it records the marked decrease of -14.6% below inflation in 2022/23, down from R285.1 million in the previous financial year to R254.3 million currently. The exponential increase is to the Office Accommodation sub-programme (an increase of 12.2% above inflation).

3.4.2 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 34: Programme 2: Integrated Transport Planning

Programme	Budget		Nominal Increase/ Decrease in 2022/23	Real Increase/ Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23	Nominal Increase/ Decrease in 2022/23	Real Increase/ Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
Macro Sector Planning	16.1	17.6	1.5	0.7	9.3%	4.6%
Freight Logistics	18.1	18.4	0.3	- 0.5	1.7%	-2.7%
Modelling and Economic Analysis	20.9	21.4	0.5	- 0.4	2.4%	-2%
Regional Integration	9.3	8.8	- 0.5	- 0.9	-5.4%	-9.5%
Research and Innovation	17.3	17.9	0.6	- 0.2	3.5%	-1%
Integrated Transport Planning Administration Support	8.5	8.9	0.4	0.0	4.7%	0.2%
TOTAL	90.2	93.0	2.8	- 1.2	3.1%	-1.3%

(Source: National Treasury (2022))

While the budget for the Integrated Transport Planning programme increases nominally by 3.1%, in effect, it decreases by -1.3% below inflation. The allocation totals R93 million in 2022/23, up from R90.2 million in the previous financial year. The highest increase is in the Macro Sector Planning sub-programme whose allocation goes up from R16.1 million in 2021/22 to R17.6 million in the current financial year. The sub-programme’s allocation increases by 4.6% above inflation (real terms).

Conversely, the allocation to the Regional Integration sub-programme decreases by -9.5% 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”.[56] The reduction in the expenditure on this sub-programme begs the question as to how the Department intends to finalise the Regional Integration Strategy.

3.4.3 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 35: Programme 3: Rail Transport

Programme	Budget		Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23	Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
Rail Regulation	22.3	23.7	1.4	0.4	6.3%	1.7%
Rail Infrastructure and Industry Development	27.8	19.4	- 8.4	- 9.2	-30.2%	-33.2%
Rail Operations	11.3	11.3	0.0	- 0.5	0%	-4.3%
Rail Oversight	16 739.1	19 931.4	3 192.3	2 334.0	19.1%	13.9%
Rail Administration Support	5.8	6.1	0.3	0.0	5.2%	0.6%
TOTAL	16 806.3	19 991.9	3 185.6	2 324.7	19%	13.8%

(Source: National Treasury (2022))

Constituting 28.9% 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 goes up from R16.8 billion previously, to approximately R20 billion in 2022/23. This translates into an above inflation increase of 13.8% and an increase of 19%, nominally. The Rail Oversight sub-programme receives the biggest allocation of the programme’s budget, i.e. 99.7%. Moreover, this sub-programme’s budget increases markedly, from R16.7 billion in the previous financial year to R19.9 billion in 2022/23. This indicates an above inflation increase of 13.9%. Transfers to the Passenger Rail Agency of South Africa (PRASA) to the value of R19.9 billion, and R72.9 million to the Railway Safety Regulator (RSR) are funded from this sub-programme.

Another sub-programme that records an above inflation increase of 1.7%, up from R22.3 million in 2021/22 to R23.7 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”.[57] Its budget increase resonates with the Department’s commitment to improving “rail safety and security by developing regulations for the Railway Safety Bill and monitoring their implementation on an ongoing basis”. It also seek to “improve access to commuter rail services by monitoring and reviewing the performance of the Passenger Rail Agency of South Africa, as well as improve competition in the rail sector by finalising the private sector participation framework”[58]

Conversely, the allocation to the Rail Infrastructure and Industry sub-programme decreases drastically from R27.8 million in 2021/22 to R19.4 million in the current financial year. This translates into a below inflation decrease of -33.2%. The Rail Infrastructure and Industry sub-programme “coordinates the development and maintenance of, and investment in, rail infrastructure”.[59]

Transfers to PRASA to the tune of R19.9 billion are divided up as per the tables below:

Table 36: PRASA Transfers: Current

Entity/Programme R million	Budget
Entity/Programme R million	2021/22	2022/23
Metrorail (Operations)	R4.8 billion	R5 billion
Mainline passenger services (Operations)	R1.2 billion	R1.3 billion
Rail maintenance operations and inventories	R925.4 million	R962.1 million
TOTAL	R6.9 billion	R7.2 billion

(Source: National Treasury (2022))

Table 37: PRASA Transfers: Capital

Entity/Programme R million	Budget
Entity/Programme R million	2021/22	2022/23
Other capital programmes	R1.4 billion	R3.4 billion
Rolling Stock Fleet Renewal	R4.8 billion	R6.8 billion
Signalling	Approx. R2 billion	R935.8 million
Metrorail (Refurbishment of coaches)	R1.4 billion	R1.4 billion
Mainline Passenger Service (Refurbishment of coaches)	R155.6 million	R79 million
TOTAL	R9.7 billion	R12.6 billion

(Source: National Treasury (2022))

3.4.4 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 38: Programme 4: Road Transport

Programme	Budget		Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23
Road Regulation	43.6	45.4	1.8	-0.2	4.1%	-0.4%
Road Infrastructure and Industry Development	36.2	37.2	1.0	-0.6	2.8%	-1.7%
Road Oversight	34 109.4	33 846.3	-263.1	-1 720.6	-0.8%	-5%
Road Administration Support	8.6	9.5	0.9	0.5	10.5%	5.7%
Road Engineering Standards	24.2	44.9	20.7	18.8	85.5%	77.6%
TOTAL	34 222.0	33 983.3	-238.7	-1 702.1	-0.7%	-5%

(Source: National Treasury (2022))

The total expenditure for the Road Transport programme declines from R34.2 billion in 2021/22 to approximately R34 billion in 2022/23. This constitutes a below inflation decrease of -5%. The highest decrease is for the Road Oversight sub-programme whose allocation goes down from R34.1 billion in 2021/22 to R33.8 billion in 2022/23, resulting in -5% below inflation. However, notwithstanding the decrease, the Road Oversight sub-programme dominates the programme’s overall budget, comprising 99.6%.

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 the South African National Roads Agency Limited (SANRAL), the Road Traffic Management Corporation (RTMC), and the Road Traffic Infringement Agency (RTIA). Moreover, the sub-programme makes provision for the Provincial Roads Maintenance Grant (PRMG).

The Road Engineering Standards sub-programme records an exponential increase of 77.6% above inflation, up from R24.2 million in the previous financial year to R44.9 million in 2022/23. This sub-programme “develops and implements road engineering standards, and coordinates the development of an asset management system for safe and resilient road infrastructure”.[60]

Major transfers from the Road Transport programme are as follows:[61]

Table 39: Major Transfers from the Road Transport Programme

Entity/ Programme R million	Budget
Entity/ Programme R million	2021/22	2022/23
RTMC	R217.3 million	R224.2 million
SANRAL: Gauteng Freeway Improvement Project (GFIP)	R4.4 billion	R664.4 million
RTIA	R224.4 million	R175 million
SANRAL	R7.3 billion	R7.2 billion
SANRAL: Non-toll network	Approx. R8 billion	R12.1 billion
SANRAL: Moloto Road upgrade	R843.9 million	R885.8 million
SANRAL: N2 Wild Coast	R1.1 billion	R1.2 billion
Rural Roads Asset Management Systems (RRAMS) Grant	R109.9 million	R115 million
PRMG: Roads maintenance component	R11.9 billion	R10.8 billion

(Source: National Treasury (2022))

Expenditure under Programme 4 lends credence to policy priorities for 2022/23. The Road Transport programme facilitates activities pertaining to the maintenance of the country’s national and provincial road network. 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.

3.4.5 Programme 5: Civil Aviation Transport

Table 40: Programme 5: Civil Aviation Transport

Programme	Budget		Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23
Aviation Policy and Regulations	33.1	29.1	- 4.0	- 5.3	-12.1%	-15.9%
Aviation Economic Analysis and Industry Development	16.7	15.2	- 1.5	- 2.2	-9%	-12.9%
Aviation Safety, Security, Environment, and Search and Rescue	87.1	106.6	19.5	14.9	22.4%	17.1%
Aviation Oversight	353.7	267.9	- 85.8	- 97.3	-24.3%	-27.5%
Aviation Administration Support	5.7	5.9	0.2	- 0.1	3.5%	-1%
TOTAL	496.3	424.7	- 71.6	- 89.9	-14.4%	-18.1%

(Source: National Treasury (2022))

For 2022/23, the allocation to the Civil Aviation Transport programme equals R424.7 million, down from R496.3 million previously, translating into a decrease of -18.1% below inflation. The major decrease is in the Aviation Oversight sub-programme that constitutes a -27.5% decrease below inflation. The sub-programme’s allocation declines from R353.7 million in 2021/22 to R267.9 million in 2022/23. The second decrease (-12.9% below inflation) is in the Aviation Economic Analysis and Industry Development sub-programme, going down from R16.7 million in 2021/22 to R15.2 million in 2022/23.

On the contrary, expenditure on the Aviation Safety, Security, Environment, and Search and Rescue sub-programme grows from R87.1 million previously to R106.6 million in 2022/23. This indicates an above inflation increase of 17.1%.

3.4.6 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 41: Programme 6: Maritime Transport

Programme	Budget		Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23	Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
Maritime Policy Development	12.6	13.0	0.4	- 0.2	3.2%	-1.3%
Maritime Infrastructure and Industry Development	13.4	19.1	5.7	4.9	42.5%	36.4%
Implementation, Monitoring and Evaluation	81.5	73.1	- 8.4	- 11.5	-10.3%	-14.2%
Maritime Oversight	43.3	45.4	2.1	0.1	4.9%	0.3%
Maritime Administration Support	4.5	4.8	0.3	0.1	6.7%	2.1%
TOTAL	155.2	155.4	0.2	- 6.5	0.1%	-4.2%

(Source: National Treasury (2022))

While the budget allocation for the Maritime Transport programme nominally increases by 0.1%, up from R155.2 million in 2021/22 to R155.4 million in 2022/23, it decreases by -4.2% below inflation. The biggest budget decrease is in the Implementation, Monitoring and Evaluation sub-programme that goes down from R81.5 million previously, to R73.1 million in 2022/23. This translates into a below inflation decrease of -14.2%. This sub-programme ensures that legislation, policies and strategies pertaining to maritime safety, security and environmental protection are implemented.

Conversely, the expenditure on the Maritime Infrastructure and Industry Development sub-programme grows from R13.4 million in 2021/22 to R19.1 million in 2022/23. This indicates an above inflation increase of 36.4%. 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, as far as the maritime transport is concerned. Of particular relevance in this regard is making “clean South African territorial waters [..] conducive to the international community”.[62]

The second above inflation increase of 2.1% is in the Maritime Administration Support sub-programme, up from R4.5 million in the previous financial year to R4.8 million in 2022/23.

3.4.7 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 42: Programme 7: Public Transport

Programme	Budget		Nominal Increase / Decrease in 2022/23	Real Increase / Decrease in 2022/23	Nominal Percent change in 2022/23	Real Percent change in 2022/23
R million	2021/22	2022/23
Public Transport Regulation	48.3	54.7	6.4	4.0	13.3%	8.4%
Rural and Scholar Transport	42.3	45.9	3.6	1.6	8.5%	3.8%
Public Transport Industry Development	222.7	231.8	9.1	- 0.9	4.1%	-0.4%
Public Transport Oversight	12 786.4	13 607.6	821.2	235.2	6.4%	1.8%
Public Transport Administration Support	15.0	13.1	- 1.9	- 2.5	-12.7%	-16.4%
Public Transport Network Development	18.6	16.8	- 1.8	- 2.5	-9.7%	-13.6%
TOTAL	13 133.3	13 969.9	836.6	235.0	6.4%	1.8%

(Source: National Treasury (2022))

In 2022/23, Programme 7 receives approximately 14 billion, up from R13.1 billion in 2021/22, indicating a 1.8% above inflation increase. The biggest increase in the allocation is in the Public Transport Regulation sub-programme which receives R54.7 million in 2022/23, up from R48.3 million previously, indicating an increase of 8.4% above inflation. This sub-programme manages the development and maintenance of policy, legislation and regulation. It also coordinates and facilitates implementation.

On the contrary, there is a decrease in the allocation to the Public Transport Administration Support sub-programme that goes down from R15 million in the previous financial year to R13.1 million in the current financial year. This indicates a decrease of -16.4% that does not keep track with the effects of inflation.

Similarly, the expenditure on the Public Transport Network Development sub-programme records a below inflation decrease of -13.6%, down from R18.6 million in 2021/22 to R16.8 million in 2022/23. This sub-programme develops norms and standards for integrated public transport systems with a view to assisting in providing accessible, reliable, affordable and integrated public transport network services in municipalities.

Selected transfers in the Public Transport programme are as follows:[63]

Table 43: Selected Transfers in the Public Transport programme

Entity/Programme R million	Budget
Entity/Programme R million	2021/22	2022/23
Taxi Recapitalisation Programme (TRP)	R464.6 million	R476.8 million
South African National Taxi Council (SANTACO)	R26.5 million	R27.5 million
Public Transport Network Grant (PTNG)	R5.2 billion	R6 billion
Public Transport Operations Grant (PTOG)	R7.1 billion	R7.1 billion
TOTAL	R12.8 billion	R13.6 billion

(Source: National Treasury (2022))

ESTIMATES OF NATIONAL EXPENDITURE PER ENTITY: VOTE 40, 2022/23

Table 44: Entity Budget as expressed in the Estimates of National Expenditure

Entity	Budget as expressed in the Estimates of National Expenditure	Current Annual Budget (R thousand) per DoT Budget
Airports Company South Africa (ACSA)	Airports Company South Africa was established in terms of the Airports Company Act (1993) and is listed as a schedule 2 public entity in terms of the Public Finance Management Act (1999). The company owns and operates 9 principal South African airports, including OR Tambo International Airport in Johannesburg, Cape Town International Airport, and King Shaka International Airport in Durban. The company has not been exempted from the severe effects of the COVID‐19 pandemic on the global aviation industry. Major capital programmes have been deferred because of lower than anticipated traffic volumes and availability of funds. To ensure its operational sustainability, the company will focus on reducing capital expenditure in the short term by restricting it to R1 billion per year, and on reviewing its investment strategy to identify ways of monetising non‐core investments such as its investment property portfolio and international airport concessions. The company plans to access banking credit facilities to meet short‐term liquidity requirements by borrowing R542 million in 2021/22 and R204 million in 2022/23. Total expenditure is expected to increase at an average annual rate of 3.3 per cent, from R5.8 billion in 2021/22 to R6.4 billion in 2024/25, as the uptake of the voluntary severance packages offered at the onset of the COVID‐19 pandemic continues to contain spending on compensation of employees. The bulk of expenditure is earmarked for airport infrastructure and asset management, and airport management. Total revenue is expected to increase at an average annual rate of 11.7 per cent, from R4.8 billion in 2021/22 to R6.7 billion in 2024/25, driven by the expected increase in passenger numbers as air travel recovers from the impact of the pandemic.	No transfer from the DoT.
Passenger Rail Agency of South Africa (PRASA)	The Passenger Rail Agency of South Africa was established in terms of the Legal Succession to the South African Transport Services Amendment Act (2008) with the primary mandate of providing rail commuter services within, to and from South Africa in the public interest. The agency also provides long‐haul passenger rail and bus services within, to and from South Africa. Over the medium term, the agency will focus on ensuring the recovery of commuter rail services and modernising its core infrastructure, which includes the replacement of old rolling stock and investment in signalling infrastructure. Accordingly, total expenditure is expected to increase at an average annual rate of 7.8 per cent, from R14 billion in 2021/22 to R17.6 billion in 2024/25, with 69.9 per cent (R35 billion) of this spending earmarked for the Metrorail and Mainline Passenger Services programmes. Compensation of employees accounts for an estimated 38.9 per cent (R18.7 billion) of spending over the medium term. Transfers from the department account for an estimated 86.9 per cent (R66.4 billion) of the agency’s total revenue over the medium term. Other sources include the sale of train and bus tickets, rental income from the leasing of properties, on‐board sales and interest earned. Total revenue is expected to increase at an average annual rate of 22.7 per cent, from R15.5 billion in 2021/22 to R28.7 billion in 2024/25, driven largely by a projected recovery in ticket sales as more commuter lines come back online following the modernisation of core infrastructure.	R19 858 541
Road Accident Fund (RAF)	The Road Accident Fund Act (1996) provides for the establishment of the Road Accident Fund, which is mandated to compensate South African road users for losses or damages caused by motor vehicle accidents within the borders of South Africa. Due to the impact of the COVID‐19 pandemic and associate lockdown on road traffic volumes, less fuel was sold and fuel levy collection decreased. As a result, the value of claims paid by the fund decreased from R96.4 billion in 2018/19 to R49.2 billion in 2021/22, at an average annual rate of 20.1 per cent. Over the medium term, a change in the settlement policy of loss‐of‐income claims from lump sum to annuity will see a moderation in the payment of claims to match the fund’s pay‐as‐you‐go principle. Accordingly, the value of claims paid out over the MTEF period is expected to increase from R49.2 billion in 2021/22 to R49.3 billion in 2024/25, at an average annual rate of 0.8 per cent. The fund receives its revenue from the road accident fund levy in terms of the Customs and Excise Act (1964). Revenue from transfers received through the fuel levy is expected to increase at an average annual rate of 1.3 per cent, from R44.7 billion in 2021/22 to R46.5 billion in 2024/25, in line with expected growth in fuel sale volumes.	No transfer from the DoT. RAF funded through the fuel levy.
South African National Roads Agency (SANRAL)	The South African National Roads Agency was established in terms of the South African National Roads Agency Limited and National Roads Act (1998) and is listed as a schedule 3A public entity in terms of the Public Finance Management Act (1999). The agency is responsible for the planning, design, construction, operation, management, control, maintenance and rehabilitation of the South African national road network, including the financing of these functions, for both toll and non‐toll roads. Over the medium term, the agency will continue to focus on the construction, maintenance and overall preservation of the national road network, particularly the road maintenance backlog that has accumulated in recent years. These activities account for an estimated 86.7 per cent (R71 billion) of the agency’s total expenditure over the MTEF period. Total expenditure is expected to increase from R21.4 billion in 2021/22 to R26.1 billion in 2024/25, at an average annual rate of 6.8 per cent. Expenditure in 2022/23 is expected to reach R27.5 million and peak at R27.9 billion in 2023/24 as the agency accelerates road maintenance projects to deal with the backlog. Accordingly, the agency plans to increase the length of the network in active strengthening, improvement or construction contracts from 1 000 kilometres in 2021/22 to 2 400 kilometres in 2024/25. As a result, planned capital expenditure is expected to increase from R10.3 billion in 2021/22 to R33 billion in 2024/25, at an average annual rate of 47.6 per cent. Although the number of personnel in the agency is expected to remain unchanged at 695 over the MTEF period, spending on compensation of employees is expected to increase at an average annual rate of 9.9 per cent, from R633.7 million in 2021/22 to R841.2 million in 2024/25. This increase is driven by an expected increase in higher paid professionals and specialists, specifically project managers and procurement specialists, in the agency’s staff complement from 2021/22 to improve procurement processes and reduce the road maintenance backlog. The agency is set to derive 75.4 per cent (R66.1 billion) of its revenue over the MTEF period through transfers from the department, and 18.5 per cent (R17 billion) through toll fees, concession income and rental income from investment property. Total revenue is expected to increase from R29.1 billion in 2021/22 to R31.7 billion in 2024/25, at an average annual rate of 2.9 per cent. This is mainly due to an acceleration in line with the agency’s plan to deal with the road maintenance backlog.	R22 075 975
The Air Traffic and Navigation Services Company (ATNS)	The Air Traffic and Navigation Services Company is a schedule 2 public entity in terms of the Public Finance Management Act (1999) and was established in terms of the Air Traffic and Navigation Services Company 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 and the civil aviation regulations issued in terms of the Civil Aviation Act (2009). Over the medium term, the company will continue to focus on ensuring air traffic safety and service quality. Air traffic communication is expected to account for 50 per cent (R2.4 billion) of the company’s total expenditure over the medium term. The company offered voluntary severance and early retirement packages in 2021/22 as part of a process to ensure its financial sustainability by rationalising its organisational structure in areas considered to have the least impact on core performance. As a result, the number of personnel is projected to remain constant at 1 157 over the medium term and spending on compensation of employees is expected to decrease at average annual rate of 2.1 per cent, from R1 billion in 2021/22 to R941.1 million in 2024/25. As a result, total expenditure is expected to increase at an average annual rate of just 1.2 per cent, from R1.6 billion in 2021/22 to R1.7 billion in 2024/25. The company is set to generate 83.6 per cent (R3.8 billion) of its revenue over the medium term through aerodrome, en‐route and approach fees. Total revenue is expected to increase at an average annual rate of 12 per cent, from R1.3 billion in 2021/22 to R1.8 billion in 2024/25, as air traffic recovers to pre‐pandemic levels.	No transfer from the DoT.
The Cross-Border Road Transport Agency (C-BRTA)	The Cross‐Border Road Transport Agency was established in terms of the Cross‐Border Transport Agency Act (1998). It is mandated to advise the Minister of Transport on cross‐border road transport policy, regulate access to the market by the freight and passenger industry in respect of cross‐border road transport by issuing permits, undertake road transport law enforcement, and play a facilitative role in contributing to the economic prosperity of the region. Over the medium term, the agency aims to continue to ensure the unimpeded flow of freight and passenger road transport in the region; liberalise market access for cross‐border freight road transport; introduce regulated competition for cross‐border passenger road transport; reduce operational constraints for the cross‐border road transport industry; and empower the cross‐border road transport industry to maximise business opportunities and regulate itself to improve safety, security, reliability, quality and the efficiency of services. It plans to conduct 245 843 inspections per year over the MTEF period to enforce cross‐border road traffic law. The agency’s total expenditure is expected to increase at an average annual rate of 4.6 per cent, from R258.4 million in 2021/22 to R295.5 million in 2024/25, mainly driven by spending on administration, law enforcement, and research and development. These activities account for an estimated 81.8 per cent (R692.1 million) of total expenditure over the medium term. The agency is self‐funded. Its primary source of revenue is permit issue fees, which account for an estimated 67.5 per cent of total revenue over the period ahead, increasing from R175 million in 2020/21 to R200 million in 2024/25, at an average annual rate of 4.5 per cent. Total revenue is expected to increase at an average annual rate of 4.5 per cent, from R259.3 million in 2021/22 to R296.2 million in 2024/25, as cross‐border road transport operator activities recover to pre‐pandemic levels.	No transfer from the DoT.
The Driving Licence Card Account (DLCA)	The driving licence card account was established in terms of the Public Finance Management Act (1999) to manufacture driving licence cards based on orders received from driving licence testing centres across South Africa. Over the MTEF period, the entity will focus on improving data collection, and design and introduce a new format for driving licence cards. It will also invest in new production machinery to continue to ensure optimal manufacturing productivity. As a result, spending on production and infrastructure is expected to account for 64.3 per cent (R381.2 million) of total expenditure over the medium term. Total expenditure is expected to decrease from R224.1 million in 2021/22 to R187.4 million in 2024/25 at an average annual rate of 5.8 per cent. This is mainly the result of a sharp increase in demand for driving licence cards in 2021/22 following the expiry of the extended validity of expired cards in response to the COVID‐19 pandemic and lockdown. Production and expenditure are expected to return to pre‐pandemic levels over the medium term. Revenue, which the entity generates through the sale of licence cards, is expected to follow a similar trend, decreasing from R271.3 million in 2021/22 to R245.5 million in 2024/25 at an average annual rate of 3.3 per cent.	Budget Vote does not specify the current budget for the DLCA.
The Ports Regulator of South Africa (PRSA)	The Ports Regulator was established in terms of section 29 of the National Ports Act (2005). The regulator sets tariff increases for the National Ports Authority and regulates the provision of adequate, affordable and efficient port services at South Africa’s commercial ports. It also provides dispute resolution, including hearing complaints and appeals under the tribunal programme, which is aimed at ensuring fairness, transparency and competitive practices in the ports sector to ensure equity of access to port facilities and services. Total expenditure is expected to increase at an average annual rate of 3 per cent, from R42.1 million in 2021/22 to R46 million in 2024/25. Transfers from the department comprise an estimated 97 per cent (R130 million) of projected revenue over the MTEF period. Revenue is expected to increase in line with expenditure.	R42 995
The Railway Safety Regulator (RSR)	The Railway Safety Regulator was established in terms of the National Railway Safety Regulator Act (2002) to set up a national regulatory framework and monitor and enforce legislative compliance in the rail sector. Its primary mandate is to oversee railway operators in South Africa and enforce their safe operation, as well as rail operators from neighbouring states whose operations enter South Africa. In terms of the act, all railway operators are responsible and accountable for ensuring the safety of their operations. Over the medium term, the regulator will continue to issue safety permits to railway operators based on an established safety management system and conduct annual reviews to assess its own safety improvement plans and safety management reports submitted by operators. Total expenditure is expected to increase at an average annual rate of 3.8 per cent, from R250.2 million in 2021/22 to R279.7 million in 2024/25. The regulator expects to generate 69.8 per cent (R562.2 million) of its revenue over the period ahead through issuing permit fees and the remainder through transfers from the department. Revenue is expected to increase in line with expenditure.	R72 874
The Road Traffic Infringement Agency (RTIA)	The Road Traffic Infringement Agency was established in terms of the Administrative Adjudication of Road Traffic Offences (AARTO) Act (1998) to facilitate the adjudication of infringement notices dispensed by various issuing authorities to alleged infringers on South African roads. The act envisages the agency as an independent adjudicator to provide for an administratively fair and just system for road traffic law infringements while also upholding the rights of the alleged infringer. A high court order in 2021/22 on the constitutionality of the legislation and this entity is yet to be confirmed by the Constitutional Court. Until this happens, the entity must continue to perform its statutory obligations. Total expenditure is expected to increase at an average annual rate of 3.3 per cent, from R453.6 million in 2021/22 to R500.6 million in 2024/25. The below‐inflationary increase is mainly due to the one‐off start‐up costs in 2021/22 to roll out the AARTO system nationally. As a result, spending on the AARTO rollout programme is expected to decrease at an average annual rate of 6.2 per cent, from R205 million in 2021/22 to R168.9 million in 2024/25. The agency is set to derive 66.3 per cent (R978.8 million) of its revenue over the MTEF period from administrative penalties and 33.7 per cent (R487.8 million) through transfers from the department. Revenue is expected to increase in line with expenditure.	R174 983
The Road Traffic Management Corporation (RTMC)	The Road Traffic Management Corporation was established in terms of the Road Traffic Management Corporation Act (1999). Its mandate is to provide national road traffic strategic planning and law enforcement, and pool public sector resources for the provision of road traffic management. Over the medium term, the corporation will continue to promote road traffic safety through education and awareness campaigns; improve and manage road traffic data and information through the automation of processes in driving licence testing centres and the maintenance of the electronic national traffic information system; and improve and coordinate road traffic law enforcement. Accordingly, spending on operations, strategic services, and law enforcement is expected to account for 60.4 per cent (R3 billion) of expenditure over the medium term. Total expenditure is expected to increase from R1.3 billion in 2021/22 to R1.6 billion in 2024/25 at an average annual rate of 7.3 per cent, mainly driven by spending on compensation of employees, which is expected to increase from R620.1 million in 2021/22 to R838.5 million in 2024/25 at an average annual rate of 10.6 per cent. This increase will accommodate the planned hiring of 300 road traffic trainees on 12‐month contracts in each year over the medium term. The corporation is set to derive 64.5 per cent (R3.1 billion) of its revenue over the medium term through transaction fees and 14.7 per cent (R674.3 million) through transfers from the department. Although transfers from the department are expected to increase at an average annual rate of only 1.9 per cent, from R217.3 million in 2021/22 to R230 million in 2024/25, total revenue is expected to increase in line with expenditure over the same period. This is driven mainly by increased transaction fees and new revenue streams as transactions on the electronic national traffic information system (eNATIS) recover to pre‐pandemic levels and new online service offerings are introduced such as crash reports and driving licence card deliveries.	R224 179
The South African Civil Aviation Authority (SACAA)	The South African Civil Aviation Authority was established in terms of the South African Civil Aviation Authority Act (1998) and is governed by the Civil Aviation Act (2009). The authority is mandated to oversee the safety and security of the civil aviation industry and ensure compliance with and adherence to the standards and recommended practices of the International Civil Aviation Organisation. Its focus over the medium term will remain on ensuring it fulfils its mandate. The authority plans to conduct 229 air safety infrastructure investigations and 1 374 air safety operations inspections per year over the MTEF period. The authority’s total expenditure is expected to increase at average annual rate of 10.4 per cent, from R710 million in 2021/22 to R956 million in 2024/25, mainly driven by the implementation of safety and security programmes in line with the standards and recommended practices issued by the International Civil Aviation Organisation. The authority forecasts capital expenditure of R75 million in 2022/23 for an electronic records and document management system and cybersecurity software; and R195 million over the remainder of the MTEF period to replace flight inspection aircraft and flight calibration equipment. The authority is set to generate 73 per cent (R2 billion) of its revenue over the medium term through passenger safety charges, user fees and the aviation fuel levy, and 20.8 per cent (R363.4 million) through transfers from the department. Revenue is expected to increase in line with expenditure.	R187 900
The South African Maritime Safety Authority (SAMSA)	The South African Maritime Safety Authority was established in terms of the South African Maritime Safety Authority Act (1998) and is listed as a schedule 3A public entity in terms of the Public Finance Management Act (1999). The authority is mandated to advance South Africa’s maritime interests, which include ensuring the safety of life and property at sea and preventing and combating the pollution of the marine environment. The authority will continue to focus on efforts to ensure maritime safety and prevent pollution over the medium term, with spending on these activities set to account for 69.2 per cent (R1.1 billion) of expenditure over this period. Total expenditure is expected to decrease at an average annual rate of 0.6 per cent, from R541 million in 2021/22 to R531.9 million in 2024/25, mainly because of cost‐containment measures, including a planned reduction in the authority’s number of personnel from 389 in 2021/22 to 384 in 2024/25. These measures are intended to mitigate the impact of the COVID‐19 pandemic on the authority’s potential to generate revenue, particularly from safety levies, which are derived from ships operating in South Africa’s waters. The authority generates its revenue from levies, fees and user charges. Total revenue is expected to decrease at an average annual rate of 0.4 per cent, from R542.5 million in 2021/22 to R536.4 million in 2024/25, due to a projected decrease in the number of ships operating in South Africa’s waters in line with demand forecasts as the shipping industry continues to deal with delays and congestion at South African ports.	No transfer from the DoT.

COMMITTEE OBSERVATIONS

Members made the following observations during discussions:

5.1 There is still a concern from the Committee regarding the slow filling of vacancies in Boards and senior management positions for the entities, as well as the Department. A number of Board appointment terms came to an end in the course of the previous year and some entities still have concerns regarding the filling of Board vacancies. With regard to the Department, according to the sign off sheet for the revised Strategic Plan and the 2022/23 APP, the following posts have acting appointments: COO, DDG: Civil Aviation, DDG: Public Transport and Accounting Officer.

5.2 The Committee previously raised its concern with the Department that critical pieces of legislation were planned and/or submitted to Parliament late in its term and that the continuation of this will lead to the Committee and Parliament practically not being able to thoroughly interrogate the legislation with proper public participation in both Houses to bring the documents to finality.

5.3 Following recent oversight observations by the Committee to some roads of the North-West, Mpumalanga and KwaZulu-Natal provinces, the poor state of the provincial and municipal roads and apparent lack of routine maintenance of these roads to and from strategic economic nodes was appalling. There was also the view that the responsible departments are not ensuring speedy repairs to potholes or regular maintenance of roads leading to an increase in pothole numbers and size. The Committee is of the view that there is a clear need to receive regular quarterly reports on the implementation of the following grants: Provincial Roads Maintenance Grant (PRMG), Rural Road Asset Management Systems Grant (RRAMS), Municipal Infrastructure Grant (MIG), Expanded Public Works Programme Integrated Grant for Municipalities, and Public Transport Network Grant (PTNG).

5.4 In the end of the 2019/2020 financial year, and from the planning for the 2020/21 financial year, the Department reduced the number of cities receiving the PTNG from 13 to 10. Mbombela, Msunduzi and Buffalo City have since been suspended from the grant due to years of slow implementation and a lack of institutional capacity to drive a major transformation of public transport services. There is a need by the Department and the Committee to receive quarterly reports on progress within these suspended cities towards being re-admitted to receive the grant funding again. There is also a need to receive reports regarding strict monitoring of the roll-out towards implementation within the current and 2023/24 financial years in three (3) of the ten (10) cities (Rustenburg, Polokwane, Mangaung) and the current implementation within seven (7) of the ten (10) cities (Johannesburg, Cape Town, Tshwane, Ekurhuleni, George, eThekwini, Nelson Mandela Bay).

5.5 The findings in the Public Protector Report against PUTCO, and the allegations that the continued extension of its subsidised service contract by the Gauteng Department of Roads and Transport was illegal, was noted. This is of particular concern as there is a need to provide an alternative public transport option that is safe, reliable and affordable to the communities reliant on the Moloto Road (R573).

5.6 Reintroduction of passenger rail services to strategically significant routes was noted, as well as reports of extensive flood damage to rail infrastructure in KwaZulu-Natal, but the Committee was of the view that more should be done to bring the full system back online, as well as ensuring that passenger rail services are re-introduced from Msunduzi to eThekwini.

5.7 Continued delays in the printing and delivery of driving licence cards, along with breakdowns of the printing machine, proposals to introduce a new card format and interruptions/failures of the online booking systems were noted and the Department was requested to give honest feedback to the Committee on the backlog and system failures for the issuing of driving licence cards.

5.8 It was noted that the previously indicated drive towards Airport Infrastructure expansion projects (especially at OR Tambo International and Cape Town International linked to runway expansions and building/terminal expansions) seems to have been postponed with a focus on recovering pre-lockdown passenger numbers by optimal use of existing infrastructure before the reintroduction of these expansion projects.

COMMITTEE RECOMMENDATIONS

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

6.1 The Department must provide the Committee with quarterly updates on the filling of Board vacancies so that Board memberships are filled well in time to have functioning Boards in order to prevent a recurrence of the Annual Report delays, as well as to ensure effective and efficient control over and fiduciary duty fulfilment in all entities of the Department.

6.2 The Department should give a quarterly update on the filling of vacancies in senior positions within the Department and its entities.

6.3 The Department should do its best to submit all planned legislation to Parliament by no later than the last quarter of year three (3) or at the latest by the first quarter of year four (4) of their Strategic Plans.

6.4 The Department should provide a full report on all PTOG contracts in place and how far the various departments are in advertising new tenders for these routes. Furthermore, the report should indicate the dates of conclusion of these contracts, how many times these contracts have been extended and the periods of the extension, court orders against termination of these contracts and whether PTOG bus subsidies have been paid based on the number of passengers transported over a number of kilometres per operation route. The report should be submitted to the Committee within 30 days, after the adoption of this report by the House.

6.5 The Department should provide quarterly reports on the implementation of the following grants: PRMG, RRAMS, MIG, Expanded Public Works Programme Integrated Grant for Municipalities and PTNG. These reports must indicate the past 5-year budget allocation for these grants to each province and municipality benefitting from these, what projects have benefitted from these grants in the past 5 years, what projects are projected to benefit from these grants in the next 5 years, status of projects (planning phase/in progress/completion dates), if grant allocations were suspended give reasons for the suspensions and possible grounds or conditions for re-admission.

6.6 The Department should provide quarterly updates on whether there was any uptake by the taxi industry of the Covid-19 relief fund for the industry, and if not, how these funds have been reprioritised.

6.7 The Department and the DLCA must provide quarterly reports on progress with narrowing the backlog of driver licence card production, as well as progress on the Cabinet process towards the new card format.

6.8 The Department and PRASA must provide quarterly reports on progress with bringing the full passenger rail service back online, as well as the progress with new train roll-out and depot finalisation to store these trains safely. This report must also contain information on the appointment and roll-out of the security plans to prevent vandalism of, theft of and encroachment onto PRASA infrastructure and rail reserves.

6.9 The Department must provide a quarterly road maintenance report on the national, provincial and municipal road maintenance work and expenditure, this must also include: the road number and location, the responsible sphere, the assessed condition of the road (good/fair/poor), information on when the last maintenance was of the road and what work was done and the cost/expenditure on this work, future planned maintenance projects with budget allocations.

6.10 The Department and ACSA must provide a report, within 30 days of adoption of this report by the House, on the airport infrastructure expansion projects, which must also include information on the extent of expansion/upgrade projects, which airports will be expanded or upgraded, timeframes and target delivery dates, budget estimates for the expansions and projected impact on airport operations during the project implementation.

6.11 The Department must provide quarterly reports on the various municipal, provincial and national projects with the specific focus on pothole repairs. This report should also include the available platforms or methods for reporting potholes to the responsible sphere, the quarterly expenditure on pothole specific repairs, any public-private partnership (PPP) or community partnerships in place for ensuring pothole repairs, as well as the legal or departmental expenditure by each sphere on claims against the sphere for vehicle damage or personal injury claims due to potholes.

6.12 The Department and SANRAL must provide quarterly reports on the Moloto Road and other Moloto Corridor projects (if any) and progress on the road infrastructure projects, public transport provision along the corridor and expenditure on these for each quarter.

7. 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 2022/23 financial year

The Department, together with the RAF, should submit the following reports:

Annual Report must be tabled for the 2020/21 Financial Year, which is overdue, as soon as the dispute with the AGSA is resolved;
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 and any findings raised in the 2020/21 report once it is released;
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 2022/23 financial year

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

The EFF objected to the adoption of the report.

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 (2022), p. 30.

[2] Department of Transport (2022), p. 31.

[3] Department of Transport (2022), p. 66.

[4] Department of Transport (2022), p. 67.

[5] Department of Transport (2022), pp. 34-65.

[6] Department of Transport (2022), pp. 29-30.

[7] Department of Transport (2022), pp. 83-92

[8] Department of Transport (2022), pp. 102-107.

[9] Department of Transport (2022), pp. 117-119.

[10] Department of Planning, Monitoring and Evaluation.

[11] Socio-Economic Impact Assessment.

[12] Economic Sector, Employment and Infrastructure Development.

[13] Department of Transport (2022), pp. 127-131.

[14] DLCA – Driving Licencing Card Account.

[15] RTMC – Road Traffic Management Corporation.

[16] RTIA – Road Traffic Infringement Agency.

[17] Department of Transport (2022), pp. 141-144.

[18] Department of Transport (2022), pp. 158-162.

[19] Department of Transport (2022), pp. 174-180.

[20] Social Protection, Community and Human Development Cluster.

[21] The target for number of old taxi vehicles scrapped (quarterly and annually) is projected based on previous trends. Targets are demand-driven and dependent on the uptake by the industry. Consequently, performance might be higher or lower than projected targets on a quarterly and/or annual basis. The ultimate objective is to scrap 100% of vehicles submitted within specified performance periods.

[22] It should be underscored that this section only covers the first Three Quarters of 2021/22, as the Fourth Quarter was not yet available at the time of the analysis.

[23] National Treasury (2021a), p. 138.

[24] National Treasury (2021a), p. 140.

[25] Ibid.

[26] National Treasury (2021b), p. 139.

[27] National Treasury (2021b), p. 141.

[28] Ibid.

[29] National Treasury (2021c), p. 138

[30] National Treasury (2021c), p. 140.

[31] Ibid.

[32] Ibid.

[33] Ibid.

[34] Department of Transport (2022a), pp. 34-65.

[35] Department of Transport (2022a), pp. 29-30.

[36] National Planning Commission (2012).

[37] Department of Transport (2022a), pp. 81-82

[38] Ramaphosa (2022).

[39] Parker (2022).

[40] Railways Africa (2022).

[41] South African Broadcasting Corporation (2020).

[42] National Treasury (2020).

[43] Ibid.

[44] Ramaphosa (2020).

[45] Ibid.

[46] Donnges et al (2007).

[47] Ibid.

[48] Ibid.

[49] Department of Transport (2022b), p. 38.

[50] Ibid.

[51] There is also budget allocated for the Direct charge against the National Revenue Fund towards the International Oil Pollution Compensation Funds for the 2022/23 year of R12 million.

[52] National Treasury (2022).

[53] Ibid.

[54] Ibid.

[55] Department of Transport (2022a), p. 100.

[56] National Treasury (2022).

[57] National Treasury (2022), p. 880.

[58] Department of Transport (2022a), p. 124.

[59] National Treasury (2022), p. 880.

[60] National Treasury (2022).

[61] Ibid.

[62] Department of Transport (2022a), p. 165.

[63] National Treasury (2021).

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