ATC100412: Report Strategic Plan and Budget of the Department & its Entities

Transport

Report of the Portfolio Committee on Transport on the Strategic Plan and Budget of the Department of Transport and its Entities, dated 12 April 2010

 

1. Background

 

The Portfolio Committee on Transport held a workshop on the Strategic Plan of the Department of Transport (DoT) and its Entities on the 19-20 March 2010 at the Mount Nelson Hotel in Cape Town.

 

2. Attendees

 

Ms NR Bhengu (ANC) - Chairperson; Ms DE Dlakude (ANC); Ms NJ Ngele (ANC); Mr MSF De Freitas (DA); Mr SB Farrow (DA); Mr PD Poho (COPE); Ms D Martin (Committee Secretary); Ms M Soga (Executive Secretary); Ms A Kakaza (Committee Assistant); Mr G Mahlalela (DG-Department of Transport); Mr T Tenza (DoT); Ms H Fakira (DoT); Ms L Molebatsi (DoT); Ms L Mboyi (DoT); Ms S Petse (DoT); Mr C Matjie (DoT); Mr J Mmekea (DoT); Ms T Letsoalo (DoT); Mr G Maluleka (DoT); Mr D Pretorius (DoT); Mr M Ralephenya (DoT); Mr C Manyungwana (DoT); Ms A Nchabeleng (DoT); Mr M Godfrey (DoT); Mr B Maseko (ACSA); Ms P Mabelane (ACSA); Mr M Mvelase (RAF); Mr A Gerrandt (RAF); Mr T Mokhele (SAMSA); Mr R Nkosi (SAMSA); Ms A Mathew (SANRAL); Mr N Alli (SANRAL); Ms M Mofi (RSR); Mr L Venkile (RSR);Mr TL Montana (PRASA); Ms S Mabaso-Royana (PRASA); Mr T Holele (PRASA); Ms P Tsolekile (PRASA); Mr C Letsoalo (RTMC); Mr P Dlamini (ATNS); Mr M Mvulase (CBRTA); Ms D Loedolff (CBRTA); Mr C Jordaan (SACAA); Mr R Khan (IPR)

 

3. Proceedings

 

The Chairperson opened the workshop and welcomed everyone. She thanked the Acting Committee Secretary and the Executive Secretary for organising the workshop at such a short notice.

 

 

 

She outlined the purpose of the workshop as follows:

 

3.1. To look at different strategies of transport entities and how to align them with the ones the Department of Transport has.

3.2. To look at the financial allocations and how they are allocated to their programmes.

3.3. To look at how intervention could be made if the budget allocated does not speak to the programmes.

3.4 To look at the congruence between the Strategic Plan of all entities that work with the Department of Transport.

3.5 To look at ways of increasing the budget and systems of road infrastructure.

3.6 To look at how the Department of Transport and its entities contribute to reduction of social ills and poverty.

3.7 To identify skills shortages.

 

4. Department of Transport

 

Mr Mahlalela, Director General in the Department of Transport acknowledged that there were challenges within the Department, such as, amongst others skills shortages and systems in place are not modernised.

 

He said there has not been enough consultation with the entities, Provinces and all the stakeholders to make the programmes possible.

 

He outlined the government priorities in the next three years as follows:

 

4.1 Government priorities

 

4.1.1 Creation of decent work and sustainable livelihoods.

4.1.2 Education and health.

4.1.3 Rural development, food security and land reform.

4.1.4 Fight against crime and corruption.

4.1.5 Environmental protection.

 

4.2 Minister’s priorities

 

4.2.1 Rural access and mobility interventions.

4.2.2 Public Transport Interventions.

4.2.3 Transport Safety and Security.

4.2.4 Infrastructure Development.

4.2.5 High-level Investment Plan for Transport.

4.2.6 Transport Integration.

4.2.7 2010 World Cup delivery platform.

 

The two priorities were in the process of being merged so as to make sense to the Department of Transport Programmes. After completion a final programme will be implemented with the involvement of the Portfolio Committee on Transport. The most critical point is to develop a service delivery model which the Department was still working on.

 

The DG emphasised a need for additional funding as most of their funding went to the Soccer World Cup. There is a need for more funding towards roads maintenance, public transport interventions and road safety.

 

The Department will step up efforts to obtain PPP funding so that they could maximise investment from the private sector.

 

4.3 Outcomes for the Department in the next three years

 

4.3.1 Outcome 1: An effective and integral infrastructure network that serves as a catalyst for social and economic development.

 

This outcome seeks to:

a.       Enhance the competitiveness of the transport sector.

b.       Develop key transport facilities.

c.       Improve trade, logistics and passenger movement across borders.

d.       Maintain and preserve critical roads that were improved.

e.       Upgrade and develop passenger rail corridors.

f.         Enhance efficiencies and reliability in rail freight sector.

g.       Prioritise secondary lines construction and maintenance.

h.       Improve airfreight services.

i.         Enhance sea ports services.

 

4.3.2 Outcome 2: A transport sector that is safe and secure

 

This outcome seeks to:

a.       Develop the transport disaster management plan to feed into the national disaster management strategy.

b.       Ensure a safe rail infrastructure and equipment.

c.       Reduce accident and incident rates on roads.

d.       Transform the Road Accident Fund (RAF) into the Comprehensive Social Security System.

e.       Improve the Maritime Transport Safety and Security.

f.         Improve Air Transport Safety and Security.

g.       Improve Non-Motorised Transport (NMT) facilities, infrastructure and services.

h.       Roll out the Integrated Rural Public Transformation Networks (IRPTNs).

 

4.3.3 Outcome 3: Improved rural access, infrastructure and mobility 

 

This outcome seeks to improve access to the utilisation to airport network and facilities in rural areas.

 

4.3.4 Outcome 4: Improved public transport systems

 

This outcome seeks to:

a.       Roll out the Integrated Public Transport Networks (IPTNs).

b.       Formalise the Public Transport Industry.

c.       Create an efficient and effective scholar transport system.

d.       Coordinate 2010 transport arrangements.

 

4.3.5 Outcome 5: Increased contribution to job creation

 

This outcome seeks to:

a.       Reach job creation targets for transport sector set and achieved.

b.       Promote National procurement.

c.       Promote growth in the local maritime and aviation industry.

 

4.3.6 Outcome 6: Increased contribution to environmental protection

 

This outcome seeks to:

1. Reduce the impact of transport on climate change.
2. Enhance energy efficient transport.
3. Minimise negative impact of transport on the environment.

 

 

4.4 Timeframes

 

4.1. The Department plans to reposition the transport sector by way of planning, coordination, engagement and communication with    the stakeholders by the 31 March 2010.

4.2. It will finalise Corporate and Strategic Plans by the 31 March 2010.

4.3. It will finalise Performance Agreements / Shareholder Compacts by the 31 March 2010.

4.4. The service delivery model will be aligned by the 31 March 2010.

 

The following comments were made by the DG to equip the Committee on the preparations for the anticipated oversight on the state of readiness for the 2010 FIFA World Cup.

 

A few challenges were identified after the Department visited the Host Cities;

1. The integration of services between airports and hotels is a huge challenge.
2. The logistics of movement from the airports to the stadiums.
3. There are serious gaps between Johannesburg and Tshwane, which need to be focused on.
4. The Department of Transport does not have funding to do co-ordination for the World Cup. Treasury has been approached and the Department is still waiting for a response.

 

5. Airports Company of South Africa (ACSA)

 

Mr Bongani Maseko, Director: Operations within ACSA apologised that the Director of ACSA could not attend the workshop.

 

He said that their main focus was to build a better and clear role of ACSA. It plans to create a better customer care service and address all bottlenecks that were hampering services at all airports. Safety and security has been a great challenge while some areas are still working towards progress.

 

Mr Maseko further stated that after the 2010 FIFA World Cup, ACSA will outline what deliverables should be prioritised. He indicated that they believe the current year has set a good base to move on with the future. The economic meltdown came when ACSA was on the verge of improving services, however but they managed to meet some of the deadlines. Mr Maseko informed the Committee that 150 000 jobs will still be created.

 

 

6. Road Accident Fund (RAF)

 

Mr Andre’ Gerrandt apologised on behalf of the CEO of RAF, who was unable to attend the workshop. He went on to say the balance sheet of the RAF was sitting in a red.

 

He stated that a mismatch between the RAF’s income and expenditure has led to a deficit of R40 billion. Recent increases in the fuel levy have grown the RAF’s revenue but claims incurred have been growing faster than the revenue.

 

He further stated that in the past year, the RAF has continued to align its operational activities to the objectives set by the Department of Transport. Despite meeting a number of targets, the net financial position is still negative. This has resulted in the solvency and liquidity of the organisation decreasing even further. Operating costs have been contained to account for the majority of this. General damages continue to account for the majority of compensation. Small claims represent more than 50% of volumes, but less than 2% of value is paid out.

 

The RAF managed to reduce the claims backlog by focusing on eliminating the smaller old claims. An increase in productivity and staff numbers assisted in shrinking the backlog.

 

7. South African Maritime Safety Authority (SAMSA)

 

Mr Tsietsi Mokhele, CEO of SAMSA outlined the objectives of the Authority as follows:

• To ensure safety of life and property at sea.
• To prevent and combat pollution of the marine environment by ships.
• To promote the Republic’s maritime interests.

 

The entity has evolved in line with other leading maritime authorities, and has positioned itself to become a comprehensive Maritime Authority capable of implementing its third strategic value of creating a mandate of advancingSouth Africa’s maritime interests, which have economic, social and strategic security and defence aspects.

 

7.1 Strategic projects in the next three years

 

Mr Mokhele stated that the implementation of the SAMSA turnaround and repositioning plan will focus on improving the financial position of the entity. It will also improve the skills, systems and technological base of the company with the aim of rebranding the entity to reflect SAMSA’s full mandate and role as a Maritime Authority.

 

The Western Indian Ocean Marine Highway that is sponsored by the World Bank and Global Environment will expand the Regional Search and Rescue programme.

 

Implementation of the maritime traffic monitoring and surveillance system led to the Long Range Identification and Tracking System in 2009 and Automatic Identification Systems in 2010. It will create Long Range Vessel Traffic Management and Information Services in 2011.

 

The establishment of a National Maritime Industry/Economic Cluster will coordinate the sector policies in 2010.

 

SAMSA will improve the technology and systems in 2010 so as to implement the financial and accounting systems and web-site portal. This will boost the ship registration system and seafarer certification system.

 

There will also be a rollout of the implementation of the small vessels and Inland Waterways regulations in 2010.

 

Currently the implementation of the IMO Voluntary Audit Scheme – Corrections Plan is ongoing.

 

SAMSA will continue with a feasibility study on the implementation of the Maritime BBBEE Charter in the maritime transport industry. The risk assessment in the provision of the marine aids to navigation will be implemented in 2011. The development of South Africa’s Maritime Skills Strategy and Maritime Job Creation Plan will be carried in 2010.

 

Mr Mokhele went on to report that SAMSA will create 120 000 to 180 000 quality jobs within eight years.

 

8. South African National Roads Agency LTD (SANRAL)

 

Mr Nazir Alli, CEO of SANRAL unpacked the mandate of SANRAL as follows:

1. It is responsible for proclaimed national roads, Toll and Non-Toll networks.
2. It maintains, upgrades, operates, rehabilitates and funds national roads.
3. It receives levy tolls to service toll roads.
4. It manages concessionaries.
5. It advises the Minister on road related matters.
6. It creates public value.

 

8.1 SANRAL key priorities for 2010/2011

 

1. Asset Management Systems for the timely maintenance of national roads.
2. Complete identified strategic road networks by incorporating outstanding kms.
3. Good co-operation and relationship with relevant government departments, provincial and municipal authorities.
4. Toll Road development.
5. Using appropriate technology.
6. Incident Management Systems.
7. Research and Development.

 

Mr Alli stated that roads that took a long time to maintain would cost the Agency six times more than when they are maintained on time. The role of the routine road maintenance contractor is to repair potholes within 48hrs, replace guardrails and sign posts, grass cutting, patching, clearing up after accident and fencing.

 

8.2 The proposed budget for 2010/2011 is as follows:

 

Total income                                          R1 630 986

Operating expenditure                R1 194 829

Capital expenditure                                R8 387 012

 

8.3 Transformation

 

Mr Alli informed the Committee that the Board approved the Employment Equity Plan until October 2011. SANRAL will also provide bursaries, skills development and support programmes with universities.

SANRAL will support SMME Development in Maintenance Contracts by allocating 72% of work to black SMMEs, 8% to other SMMEs, while the 20% will go to managing contractors responsible for empowerment, training and support.

 

The Agency is also involved in the building of pedestrian bridges, other bridges and roads in rural areas to make it easier for school children who have to cross rivers to go to school.

 

Employment opportunities are also created for women in the rural areas in fields such as tourism and hospitality industries.

 

 

 

9. Railway Safety Regulator (RSR)

 

Ms Mosenngwa Mofi, CEO of RSR outlined the mandate of the Agency as follows:

 

1. To oversee safety of railway transport, while operators remain responsible for managing safety of other operations.
2. To promote improved safety performance in order to promote the use of rail.
3. To monitor and ensure improved safety through the conducting of audits, inspections and occurrence investigations.
4. To develop appropriate regulations and standards for safe railway operations.
5. To collect and disseminate information relating to safety performance in the railway environment through producing state of safety information.
6. To promote the harmonization of the railway safety regime of South Africa with SADC railway operations.

 

Ms Mofi went on to report that the current budget allocation was inadequate to enable RSR to effectively address safety challenges in the railway environment. 61% of RSR’s budget allocation goes to the payroll while 38% goes to goods and services and 1% goes to capital expenditure.

 

 10. Passenger Rail Agency of South Africa (PRASA)

 

Mr Lucky Montana, the CEO of PRASA outlined the responsibilities of PRASA as follows:

 

• To effectively develop and manage rail and related transport infrastructure.
• To provide efficient rail and road based passenger transport services within, to and from urban and rural areas.

 

10.1 PRASA total budget

 

Total income                                                                  R5, 981,889,684

Total operational expenditure                                           R6, 125,078,449

Operating surplus (shortfall) before interest                       R-143,188,765

Operating surplus                                                           R-450,621,001

 

(More details on PRASA follow on the table on page 17)

 

11. Road Traffic Management Corporation (RTMC)

 

Mr Collins Letsoalo, the acting CEO of RTMC presented the legislation that guides the mandate of RTMC as follows:

 

1. Road Traffic Management Corporation Act 20 of 1999;
2. National road Traffic Act 93 of 1996;
3. Administrative Adjudication of Road Traffic Offences Act 46 of 1998;
4. National Land Transport Act;
5. Transport Agencies General Law Amendment Act, Act 42 of 2007.

 

He said the Traffic Officers do not understand the role of the RTMC.

 

11.1 RTMC Budget

 

Overall funding               R73 million

Compensation                           R54 million

Operational costs                       R30 million

Shortfall                                    R80 million

 

12. Air Traffic & Navigation Services (ATNS)

 

Mr Patrick Dlamini, the CEO of ATNS outlined the mandate of ATNS as follows:

 

1. The supply of air traffic management services.
2. The supply of aeronautical management services.
3. Alerting, Search and Rescue coordination services.
4. Management of the flexible use of Airspace through the Central Airspace Management unit.
5. Support for special events and requirements such as test flights, demonstration flights, and major events e.g. Soccer, Rugby, and Cricket etc.
6. The deployment and maintenance of infrastructure and systems for the provision of air traffic and navigation services.
7. The training of licensed air traffic controllers and technical staff through the Aviation Training Academy.

 

ATNS budget is still in a draft form and still awaiting the Economic Regulator to finalise the budget.

 

13. Cross Border Road Transport Agency (CBRTA)

 

Ms Makhosazane Mvulane, the CFO of CBRTA reported that the CBRTA is the worst performer in what they have delivered, but they have the best balanced sheet. The balance sheet might be good but the actual money in the bank was supposed to go towards infrastructure. The CBRTA paid Audit Fee of R1.2 million to the Auditor General because they are regarded as a high risk. The AG raised the fact that documents keep going missing at CBRTA.

 

Their office is based only in Pretoria yet they have a national mandate. The Agency has not managed to retain anyone at Managerial level.

 

14. South African Civil Aviation Authority (SACAA)

 

Mr Colin Jordaan, the CEO/Commissioner of SACAA outlined the mandate of SACAA as follows:

1. To control and regulate civil aviation safety and security.
2. Oversee the implementation and compliance with the National Aviation Security Programme.
3. Oversee the functioning and development of the Civil Aviation Industry.
4. Promote civil aviation safety and security.
5. Develop any regulations that are required in terms of this Act.
6. Monitor and ensure compliance with this Act and the Convention.

 

14.1 SACAA Budget

 

The Authority budgeted for R7, 145 million and it was approved by Treasury.

There is an expected loss in the order of R8 million.

 

 

15. Independent Port Regulator (IPR)

 

Mr Riad Khan, the CEO of IPR outlined the mandate of IPR as follows:

1. Exercise economic regulation of the ports system in line with government’s strategic objectives.
2. Promote equity of access to ports and to facilities and services provided in ports.
3. Monitor the activities of the National Ports Authority to ensure compliance with the Act.
4. Adjudicate complaints and appeals against the Authority.
5. Approve or reject the Authority tariffs.
6. Promote regulated competition.
7. Regulate the provision of adequate, affordable and efficient port services and facilities.

 

15.1 IPR budget for 2010/2011.

 

Administration                                                   R5 618 million

Economic Regulation and Tariffs              R1 558 million

Monitoring                                                         R0 458 million

Tribunal and Regulatory development       R1 197 million

Industry Development                                        

 

Total Budget                                                    R8 832 million

 

Agency	Strategic Goals	Challenges	Interventions
ACSA	§         Deliver a seamless 2010 FIFA World Cup. §         Decommissioning and sale of DurbanInternational Airport. §         Ensure long term business sustainability. §         Complete infrastructure developments in line with Soccer World Cup deadlines, and to meet future demand. §         Focus on operational efficiency. §         Optimising business excellence. §         Revenue efficiency. §         Employee learning and development, productivity, succession planning and retention.	§         R17 billion investments in infrastructure capacity. Out of the R17bn, there is a debt of R16bn that needs to be serviced. The regulatory policy is not able to recognise risks taken by investors of debt and equity during pre-funding. There is no clear clarity on the sale of Durban InternationalAirport site from government side. §         There is lack of predictable and enabling economic regulatory framework. That hampers the ability to provide future capacity requirements when economy improves. It also hampers to maintain an optimal capital structure leading to non-retention of skills and experience. §         Applications and processing of non-schedule / charter operations including slot applications are also a challenge. §         The inefficient slot allocation system impacts on airport capacity and operating hours. §         Airport to City / Stadium coordination. §         Airport – Road Traffic Management Coordination. §         Re-positioning of long-stay aircrafts. §         Potential weather disruptions causing delays, especially inCape Town and Port Elizabeth. §         Jet A1 Fuel Supply, the supply of fuel must be guaranteed §         Public (Land) Transport Arrangements must be finalised. §         24hr Service from ATNS must commit to being able to provide 24hr service at all affected airports. §         Possible security threats. §         Unruly behaviour by passengers on board after games when fans from opposing teams fly back together.	Government should ensure enabling policies including economic regulations for a more predictable future, noting the challenges in the economic climate.
RAF	§         Moving to a defined benefit, no-fault system will have a number of advantages for South African road users and the RAF. §         Selecting an appropriate media channel will be important whentargeting specific groups of road users. §         The RAF will choose media channels based on the audience and intended messages. §         Providing services in all the official languages will increase the number of people served in their home languages. §         Develop a customer centric culture §         Multiple tools will be available to automate tasks and assist staff. §         Develop an internal law department to reduce an extensive use of panel attorneys §         Develop an injury management unit. §         Develop the best training programme. §         Develop the most effective road safety campaigns that will combine legislation, awareness and enforcement. §         Select a suitable capital adequacy target for the RAF.	§         Systems and processes that delay service delivery. §         Constitutional challenges to the RAF Act. There has to be implementation of the No-fault policy. The Funding model of the RAF is still a huge challenge. The pricing of the RAF fuel levy on a regular basis. §         Impact of 8 cents fuel levy increase. §         Transformation from the old RAF to a new RAF might have an impact on staff. §         Funding model still technically insolvent and grossly under-capitalised.	§         There should be a Draft Amendment Bill.  §         The National Treasury should ensure that the system put in place for South Africa is appropriately funded and that the correct economic models are used to determine the pricing of the RAF Fuel Levy on a regular basis. §         RAF to invest in new systems and processes that will provide superior service delivery to victims of motor vehicle accidents, their families and service providers. §         Department of Transport and Parliament to introduce appropriate legislation to set up a benefit system forSouth Africa that is equitable, affordable, sustainable and appropriate for the country to eliminate wastages, inefficiencies and leakages inherent in the current systems.
SAMSA	§         Goal 1: Ensure service excellence in maritime safety, security, health and environment §         Goal 2: PromoteSouth Africa’s maritime industry/economy development §         Goal 3: Advance and protect South Africa’s regional and international maritime interests §         Goal 4: Facilitate maritime stakeholder engagement and leverage strategic partnerships §         Goal 5: Review the SAMSA role and mandate §         Goal 6: Implement the SAMSA turnaround strategy -To become an efficient service provider -To become a competitive industry leader -To become an effective maritime authority -To become a responsible corporate citizen -To become an influential global player §         Goal 7: Implement 2010 FIFA Soccer World Cup readiness plans.	§         SAMSA Act is outdated, contradicting key legislations such as PFMA and Companies Act §         Over 34 pieces of Maritime legislation have been found to be outdated §         The Maritime Transport Policy has not been finalised and promulgated §         The Maritime BBBEE Charter has not yet become binding §         SAMSA services are still over 200% below the global benchmark of similar authorities §         Skills shortage in the key maritime technical areas remains a key risk. §         Unfunded/u §         Skills shortage	PC on Transport  supports SAMSA in its endeavour to mobilise for the development of the South African Maritime Sector Agenda, focusing on: §         Building the national fleet and improving the ship registry §         Establish a coastal shipping service as part of national transport infrastructure §         Embark on a National Maritime Skills and Jobs Strategy and Programme §         Finalise and ratification of the South African Maritime Transport Policy.
SANRAL	§         To manage the national road network effectively §         Provide save roads §         Carry out Government’s targeted programmes §         Co-operate with relevant Departments, Provinces, Local Authorities and SADC member countries §         Achieve and maintain good governance practice §         Achieve financial sustainability §         Pursue research, innovation and best practice.	§         Legislation does not allow SANRAL to take toll gate money to service other roads §         Provinces should be workshopped on the maintenance of roads.	More funding required.
RSR	§         Sustainable safe, secure and reliable passenger and freight railway operations §         Sustainable railway industry capacity §         A safe and secure railway reserve and the surrounding environment §         Regional harmonisation of railways from a safety perspective	§         Derailment and collisions remain unacceptably high §         Direct costs associated with railway occurrences remain highleading to the agency loosing a lot of money §         Poor condition and underinvestment in rail infrastructure and rolling stock §         Inadequate capacity to meet demand as well as manage safe and reliable railway operations §         Human Factor Management challenges in safety critical grades §         Mushrooming of informal settlements along the rail reserve poses major safety risks §         Vandalism/theft and personal safety §         Operational interface problems with freight passenger services on shared infrastructure §         Current allocation inadequate to enable RSR to effectively address safety challenges in the railway environment. §         RSR Inspectorate grossly understaffed (operating at 35% of the required minimum capacity and that negatively impacts on activities such as audits, inspections and occurrence investigations). §         No capacity of research. §         No appropriate information systems to support RSR’s safety oversight role.	§         Safety Audits and Inspections §         Occurrence Investigations §         Technology and Operational Improvement reviews/evaluations. §         2010 FIFA World Cup safety readiness and beyond. §         Gautrain Rapid Rail Link. §         Safety Standards and Guidance Notices. §         Security Assessment. §         Re-Investment in rail assets §         Investment in new technologies/systems. §         Investment in demand driven capacity. §         Skills (safety critical grades) §         Interoperability §         Level Crossing Standards §         Safety Measures in high risk areas §         Security of Assets in rail reserve §         Safety awareness campaigns §         Promote adoption of safety standards in the SADC region. §         Provide Support in the SADC member railways in the implementation of the Safety Management System approach to managing safety. §         Cross-Border rail operations-compliance with RSR’s safety requirements. §         More funding required.
PRASA	§         Implement new conditions of service from 1st April. §         Consolidation of Metrorail and Shosholoza Meyl into a single rail business from 1st April where benefits from synergies that exist between the two operations will be enjoyed. §         Total Station Management projects will bring synergies and eliminate duplication. §         Proper train scheduling by Rail operations to eliminate wastage of running empty trains. The reduction in service will result in a saving of maintenance repairs, energy and labour costs. §         Business Units to submit clear plans to achieve budgets. §         Clear Fare Increase implementation plan. §         Improved Capital Expenditure Management. §         Robust Risk Management Plan that is reviewed throughout the year. §         Balance sheet restructuring as an enabler for asset exploitation. §         Shareholders support on legacy challenges.	§         Rolling stock reliability and availability §         Ageing fixed assets and old Technology §         Demand for additional services/capacity. §         Increased inputs = labour, energy and material §         Sharp increase in capital investment without commensurate increase in operational funding. §         Human Resources capacity/skills to rationalise operations, maintain, sustain and expand the network. §         Onerous legacy issues §	§         There should be a rail link between cities and airports §         More funding required.
RTMC	§         Effective and sustained traffic law enforcement and traffic control §         Sustainable human resource capacity in the road environment. §         A Road Traffic information Hub. §         Strengthen institution capacity. §         Protect road infrastructure and the environment. §         Effective stakeholder management and partnerships.	§         There is no clear mandate §         Funding too little §         There is no cooperation from other spheres of government	More funding is required.
ATNS	§         Focus will be on the air traffic and navigation services needs of the ATM Community, primarily in South Africa, Africaand the Indian Ocean Region and later in selected global markets §         A need for a thorough understanding of the global ATNS community is crucial §         Will source, develop, market, distribute and support a complete range of air traffic and navigation service solutions that meet the expectations of access, equity, safety, efficiency predictability, environmental sustainability and affordability, thereby supporting ATNS customers and the ATM community at large §         Crucial that ATNS stabilises and enhance SA traffic and navigation service provision in order to create a platform for leverage strategic partnerships. §         Intend to expand further into the selected global markets §         Create a business model that will be supported through attracting, developing, retaining and appropriately rewarding a diverse and motivated team with the right skills, experience, commitment and drive to implement a winning strategy.	§         Service Provision 2010 FIFA World Cup §         ATNS staff needs training §         Organisational transformation: shortage of air traffic controllers §         There are no black instructors §         Financial sustainability §         Regional service harmonisation	Critical support by the Department of Transport is needed.
CBRTA	§         The World Bank is interested in funding the CBRTA	§         The Minister has turned back their budget with questions and have instructed them to form a proper funding model §         CBRTA is not properly funded by the Department of Transport §         They have had seven CEOs in a period of twelve years. §         There is lack of support in rating the CBRTA. §	§         They operate only inPretoria when they are supposed to be in all the borders. §         CBRTA needs R30 million funding §         The Department should be hands on in capacitating the CBRTA
SACAA	§         Meeting South Africa’s National Transport Objectives §         Efficient Administration of the Organisation §         Corporate Governance and Legislative Compliance §         Black Economic Empowerment §         Corporate Social Investment §         2010 FIFA Soccer World Cup Objectives	§         SACAA has felt the effects of recession as passenger numbers continue to decline and the cost of fuel increases §         The Authority generates all of its revenue from passenger safety charges, industry user fees and a fuel levy on aviation fuel §         During the year under review, actual revenues were substantially below budget and cost cutting measures were introduced to try meeting the approved financial performance.	The Authority is on track to meet or exceed all of the targets set by the end of the financial year.
IPR	§         Establish all elements of the regulatory framework within its mandate and implement §         Develop the capacity to deal with all the output requirements of the organisation §         Establish its reputation as an organisation with integrity focussed on delivery §         Ensure that all ports sector participants comply with the National Ports Act §         Support the development of the port system and the port regulatory system architecture.	§         Budget constraints §         Part-time Regulator issues and implications §         Clarity on approach to port institutional structure §         Impact of unified Transport Policy changes in PR §         Ensuring Regulator is not referee and player §         Balance of infrastructure programme in economic development versus cost of doing business §         Determination of appropriate infrastructure build programme against which Regulation occur.	§         Consideration of additional members that have higher levels of availability for tribunal §         Consideration of structure e.g. Tribunal and Commission §         Levy income methodology for Regulator §         Infrastructure tariff approach by Department of Transport §         Amend Act to streamline administrative processes §         Infrastructure sign-off to NPCC §         What does that state expect the outcome of the Regulator to be over the first ten years of existence? §         Additional budgetary allocation

 

 

All the Concerns raised by Members were responded to satisfactorily.

 

The DG in his closing remarks indicated that the workshop covered a lot of issues and that accountability needs to follow. The honesty that was portrayed by all the agencies will assist the senior leadership to tackle all the challenges they were faced with.

 

He said there was a need for more personnel within the Department of Transport. The Department should also find a way of retaining current skills. He requested the Portfolio Committee to intervene and assist in creating an environment where all feel appreciated in their field of work.

 

He stated that a radical approach is needed in tackling a challenge of re-investment. More delays make it difficult to tackle challenges that were there to cripple the transport industry. 

 

He added that all the agencies reported that there was a need for a strong balance sheet, therefore it would be wise to approach decisions that would not compromise the balance sheets.

 

It is vital that crucial consideration to integrate regulators would be carefully considered so that decisions taken by the other would not impact on the other.

 

16. Recommendations

 

The Committee adopted the following recommendations:

 

• The Agency Board Members should attend all workshops so that they could respond to good governance.
• There should be an effective body that should carry the mandate of the Agencies.
• The Cross Border Road Transport Agency should have offices in all the Provinces.
• There should be a follow-up meeting with regard to Virginia airport.

 

In her closing remarks the Chairperson of the Committee, Ms NR Bhengu thanked all the Members of the Committee and the agencies for their time in attending a workshop on a weekend.

 

She thanked all the presenters for their honest contribution and assured them that the Committee was fully behind them to unlock the challenges.

 

Report to be considered.