ATC130523: Report of the Portfolio Committee on Transport on the Strategic and Annual Performance Plans of the Department of Transport and its Entities, dated 30 April 2013.
REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT ON THE STRATEGIC AND
ANNUAL PERFORMANCE PLANS OF THE DEPARTMENT OF TRANSPORT AND ITS ENTITIES, DATED
30 APRIL 2013.
The Portfolio Committee of
Transport, having considered the Strategic Plan and Annual Performance Plans of
the Department of Transport and its entities for 2013/14 (revised), reports as
The report contains the strategic objectives of the
Department of Transport (the Department) and its entities presented to the
Portfolio Committee on Transport (the Committee) on 16 and 17 April 2013. The
Committee, in its oversight role over the Ministry, the Department and its
entities, has to consider the Strategic Plan of the Department and its entities
to determine whether the funds requested are aligned to the stated objectives
in the strategic plans.
The Committee held a two-day strategic planning
session with the Department and its entities on 16 and 17 April 2013.
The Department has the responsibility to address the imbalance of
poverty, inequality and unemployment through the provision of transport
infrastructure and transport services. The main focus of the strategic planning
workshop was to assess how the programmes of the Department and its entities
relate to the triple challenges taking into account that transport is the
heartbeat of economic development and the resources that government has
invested for transport infrastructure development.
The Department and the following entities presented
their Strategic and Annual Performance Plans: Airports Company South Africa
(ACSA), the Passenger Rail Agency of South Africa (PRASA), the Road Accident
Fund (RAF), the South African National Roads Agency Limited (SANRAL), the South
African Civil Aviation Authority of South Africa (SACAA) and the South African
Maritime Safety Authority of South Africa (SAMSA).
The Department oversees the
following public entities:
Airports Company of
Air Traffic and Navigation Services Company (ATNS);
Cross-Border Road Transport Agency (CBRTA);
Passenger Rail Agency of
Railway Safety Regulator (RSR);
Road Traffic Infringement Agency (RTIA);
South African Civil Aviation Authority (SACAA);
South African National Roads Agency Limited (SANRAL);
South African Maritime Safety Authority (SAMSA);
Road Accident Fund (RAF); and
Road Traffic Management Corporation (RTMC).
MANDATE OF THE DEPARTMENT
The Department of Transport is tasked with
providing safe, reliable, effective, efficient and fully integrated transport
operations that best meet the needs of freight and passenger users. At the same
time, the Department is entrusted with providing the infrastructure and
services in a manner that is efficient and affordable to the individual and
corporate users, as well as the whole economy. In addition, it is mandated with
ensuring safety and security across all modes of transport.
In an endeavour to discharge its mandate
effectively and efficiently, the Department has organised itself into the
Integrated Transport Planning;
Maritime Transport; and
The following outcomes have been identified to
guide and enable the Department to deliver on its mandate:
An efficient and integrated transport
infrastructure network for social and economic development.
A transport sector that is safe and secure.
Improved rural access, infrastructure and
Improved public transport.
Increased contribution to job creation.
Increased contribution of transport to
POLICY PRIORITIES FOR 2013/14
In terms of the
outcomes-based performance management framework adopted by Government, the
Department contributes mainly to the development of an efficient, competitive
and responsive economic infrastructure network (outcome 6).To achieve this
outcome, the Department will focus on:
rail infrastructure and services; and
and operating public transportation infrastructure.
These policy priorities are
in line with what the National Development Plan (NDP) proposes with regard to
social and economic development. Indeed, the NDP maintains that sound economic
infrastructure is a precondition for economic growth and that the countrys
transport infrastructure is
a sine qua
of attaining this.
The major recommendations
of the NDP are to improve public transport planning and integrate it with
spatial planning. It also puts emphasis on asset management and institutional
arrangements to ensure safe, reliable and affordable public transport and
renewal of the commuter rail fleet. In this regard, the NDP accentuates the
need to focus on the Gauteng-Durban Corridor for freight, incentivise public
transport and focus on transport systems rather than modes. The need to invest
massively in transport is recognised as is the need to carefully prioritise
In his 2013 State-of-the-Nation
Address, President Zuma identified transport as a catalyst for the countrys
socio-economic development. In this regard, the President provided the
following as niches for achieving this objective:
Shifting the transportation of
coal from road to rail in
Improving the movement of goods
and economic integration through a Durban-Free State-Gauteng Logistics and
Fast-tracking of roads in the
Integrating different modes of
transport (bus, taxi and train) in
Improving the commuter rail
OVERVIEW OF PROGRAMMES
programme coordinates and renders effective, efficient strategic support to the
Minister, Director-General and the Department. It also develops transport
skills for the sector. This programme has five sub-programmes:
As at 30 September 2012, the Department
had an establishment of 767 posts, all of which were funded and 69 posts were
additional to the approved establishment. The number of posts filled decreased
from 529 in 2009/10 to 524 in 2012/13, as a result of the restructuring
undertaken in 2010/11 and 2011/12, when the Department was reorganised around
the different transport modes. No appointments were made until the structure
was finalised in 2012/13. The Department has now started to fill posts again
for the first time since 2009. It is expected that the number of posts will
increase from 524 in 2012/13 to 801 over the medium term, 35.1 per cent of
which will be in the
because it has taken on additional functions such as the programme management
unit. Over the medium term, it will capacitate the internal audit unit. The
balance of the posts will be in the
Transport, Road Transport, Civil Aviation, Maritime Transport
programmes which are
expected over the medium term to enhance their capacity to oversee transfers to
public entities and other levels of government.
Programme 2: Integrated Transport
This programme manages and facilitates national
strategic planning for new projects. It also conducts research and formulates
national transport policy, including for the cross-modal area of logistics. In
addition, the Integrated Transport Planning programme coordinates international
and inter-sphere relations. The programme comprises the following
Macro Sector Planning;
Modelling and Economic Analysis;
Research and Innovation; and
Integrated Transport Planning
The objectives of the programme for 2013/14 are to:
Facilitate multi-modal transport
planning on an ongoing basis by: developing an enabling consolidated transport
planning databank by 2015, developing the Multi-modal Integrated Transport
Planning draft Bill by 2015 and establishing a national transport planning
forum by 2015.
Assist line function operations
with socio-economic analysis of the transport sector by providing economic modelling
and transport data on an ongoing basis.
Reduce cross-border system costs,
as well as transit and turnaround times to enhance trade within the Southern
African Development Community (SADC) region and Africa as a whole by implementing
the recommendations of the freight movement optimisation plan for the border
control operations coordinating committee, beginning with the Lesotho border
decongestion strategy and completing the study on the harmonisation of
standards, by the end of 2013.
Propose innovative and applicable
technologies for improved and environmentally sustainable transport systems
through research, innovation, monitoring and evaluation on an ongoing basis.
Ensure evidence-based transport
planning and policy making by conducting a household travel survey and publishing
its result by the end of 2013/14 to support public transport and infrastructure
Programme 3: Rail Transport
The Rail Transport programme facilitates and
coordinates the development of sustainable rail transport policies, strategies
and systems. Moreover, it oversees rail public entities. Five sub-programmes
fall under the Rail Transport programme:
Rail Infrastructure and Industry
Rail Oversight; and
Rail Administration Support.
The objectives of the programme for 2013/14 are to:
Upgrade and expand the priority commuter rail corridors by finalising the
rail policy and the rail plan strategy by 2014 and ensuring increased service
levels and improved system performance and reliability in seven of the 21
priority commuter rail corridors in the country by 2014.
Increase the accountability for commuter rail service delivery by
facilitating the devolution of rail commuter operational subsidies to local
government by signing a service level agreement between the Department and the
Passenger Rail Agency of South Africa (PRASA) by December 2013 and signing
service level agreements between capacitated metropolitan municipalities and PRASA
by December 2014.
Enhance the efficiencies and reliability of the rail transport sector by
promulgating a Rail White Paper in 2014, enacting legislation by 2015/16 which
drives investment and reform in the rail industry, reducing logistical cost of
freight movement from 50.4 per cent to 41 per cent over the medium term and increasing
the passenger rail volumes by 2.5 per cent annually.
Ensure a safe railway environment by developing rail safety policy and
regulations and reducing the number of accidents and incidents due to unsafe
infrastructure or equipment by 10 per cent by 2014/15, increasing safety
compliance through the introduction of a penalty regime by 2014, reducing the
total number of incidents and accidents from 3 720 in 2011/12 by 5 per cent in
2013/14 and a further 10 per cent in 2014/15.
Programme 4: Road Transport
The Road Transport programme is tasked with
regulating road traffic management. It is also responsible for ensuring the
maintenance and development of an integrated road network through the
development of standards and guidelines. In addition, it oversees road agencies
and provincial and local expenditures. The programme is divided into five
Road Infrastructure and Industry
Road Administration Support; and
Road Engineering Standards.
The objectives of the programme for 2013/14 are to:
Maintain and preserve the existing roads network, including reducing the
kilometres of provincial roads in a poor to very poor condition from 65 966
kilometres in 2010 to 51 000 in 2014 by monitoring rural roads asset management
systems and provincial roads grants expenditure performance continually and developing
and updating guidelines and standards for roads on an ongoing basis.
Maintain and preserve coal haulage roads through rehabilitating 2 156
kilometres of coal haulage roads by 2014, monitoring the spending and
performance by the South African National Roads Agency Limited and the provincial
roads departments of Mpumalanga and Gauteng quarterly and engaging with
Transnet and Eskom to facilitate the ongoing migration of coal from road to
Support the implementation of the road infrastructure strategic framework
by providing grant funding on an ongoing basis and ensuring the use of updated
road asset management systems in all provinces by 2013/14, at local government
level for the initial 22 district municipalities by 2014/15, and assisting a
further 7 district municipalities in 2013/14.
Improve rural access and mobility by assisting 21 district municipalities
in developing non-motorised transport infrastructure and facilities, developing
plans and guidelines for non-motorised infrastructure design, and monitoring
their implementation by 2014.
Support the millennium development goals to reduce accidents and incidents
on roads, reducing the 2011 figure of 14 000 people per annum who died on the
road by 50 per cent in 2020, by changing drivers behaviour through reviewing
the existing road safety strategy during the MTEF period.
Programme 5: Civil Aviation
The Civil Aviation programme is responsible for
regulating and investigating the development of an economically viable air
transport industry that is safe, secure, efficient, environmentally friendly and
compliant with international standards. It also oversees the aviation public
The programme has five
Aviation Infrastructure and
Aviation Safety and Security;
Aviation Oversight; and
Aviation Administration Support.
The objectives of the programme for 2013/14 are to:
Enhance safety within the aviation sector by improving the quality and
credibility of accident and incident investigations through the establishment
of an independent accident and incident investigation body by June 2013, and
the amendment of the Civil Aviation Act (2009) by the second quarter of
Improve civil aviation safety and security continually through compliance
with existing and new standards and recommended practices of the International
Civil Aviation Organisation and the Federal Aviation Administrations
international aviation safety assessment, and through ongoing oversight of the
South African Civil Aviation Authority, the Air Traffic and Navigational Services
and the Airports Company of
Ensure effective and integrated economic infrastructure by concluding the
consultative process for the national airports development plan and obtaining
approval for its implementation by 2014.
Ensure efficiency and safety in the aviation industry by consulting on and
finalising the approval of the national civil aviation policy by 2014/15.
Ensure effective air transport economic regulation through a review of the
regulatory framework that promotes the development of the aviation industry by
Programme 6: Maritime Transport
The Maritime Transport programme coordinates the
development of a safe, reliable and viable maritime transport sector. It does
so by developing, monitoring and exercising oversight over maritime public
entities. Five sub-programmes fall under the Maritime Transport programme:
Maritime Policy Development;
Maritime Infrastructure and
Implementation, Monitoring and
Maritime Oversight; and
Maritime Administration Support.
The programme objectives for 2013/14 are to:
Contribute to a safe, secure,
environmentally friendly and efficient maritime transport industry by
finalising the maritime transport policy and legislation, which will outline
the policy position on the economic drivers in the maritime transport sector,
through consultations with stakeholders by 2014.
Enhance economic development by developing a maritime shipping policy by
the end of 2014 that will provide a framework for promoting businesses such as
ship recycling and ship repair within the maritime transport industry.
Improve maritime safety by reducing the number of accidents and incidents
(19 and 68 in 2012 respectively), based on marine casualties reflected in the
2011/12 South African Maritime Safety Authority annual report regarding small
vessels, by 40 per cent by implementing the inland waterway strategy by
Improve maritime security and assist in managing safety and security by
drafting and signing the memoranda of understanding with relevant stakeholders
in maritime security by March 2014.
Ensure opportunities for the adequate training and skilling of seafarers
by completing relevant bilateral and multilateral agreements and drafting
legislation on the working conditions and protection of rights of seafarers in
international waters by March 2014.
Programme 7: Public Transport
The Public Transport programme develops norms,
standards, regulations and legislation to guide the development of public
transport for rural and urban passengers. It is also tasked with regulating
interprovincial public transport and tourism transport services. Moreover, the
programme monitors and evaluates the implementation of the public transport
strategy and the National Land Transport Act (No. 5 of 2009). The Public
Transport programme comprises six sub-programmes:
Public Transport Regulation;
Rural and Scholar Transport;
Public Transport Industry
Public Transport Oversight;
Public Transport Administration
Public Transport Network
The programme objectives for 2013/14 are to:
Improve public transport access and reliability by developing and
implementing integrated public transport networks in 13 cities and monitoring
and evaluating progress on an ongoing basis.
Ensure integrated and optimised public transport services by facilitating
the development of integrated rapid public transport networks and feeder and
distribution systems in five municipalities by 2014/15.
Ensure efficient and effective public transport by establishing the
National Public Transport Regulator as required by the National Land Transport
Act (2009) by 2013/14.
Develop and increase the equity ownership and Broad-Based Black Economic Empowerment
(B-BBEE) in the public transport sector through the implementation of the
industry development model to empower taxi and small bus operators by
establishing cooperatives and by coordinating skills development by 2014/15.
Align and integrate the taxi recapitalisation programme with national and
provincial rail services, metropolitan rapid public transport corridor services
and provincial bus services by reviewing the taxi recapitalisation project by
2013/14 to assess its alignment with the public transport strategy.
Ensure the improved scholar transport system by developing scholar
transport norms and standards by 2013/14.
CONSIDERATION OF STRATEGIC AND
ANNUAL PERFORMANCE PLANS FROM THE PUBLIC ENTITIES
Airports Company South
the medium term, ACSAs main strategic goals are to position itself
strategically for long-term sustainability and to improve its operations. This
involves analysing the market, refining its business and revenue models,
developing a comprehensive stakeholder management strategy, and improving short
term human resource performance
RAIL AGENCY OF
Passenger Rail Agency of South Africas mandate is contained in the Transport
Services Act (No. 9 of 1989), as amended in November 2008. The Act requires the
agency to, at the request of the Department of Transport, provide rail commuter
services within and to and from
Agencys strategic goals over the medium term are to improve the quality of
services, continue with its modernisation strategy, which entails acquiring new
reliable trains and upgrading depots, stations, signalling and all other
infrastructure and to achieve financial sustainability by improving the
generation of revenue. Its performance targets for 2013/14 include: completing
and contracts for its Rolling Stock Fleet
Renewal programme, signaling programme (Stage 2 KwaZulu-Natal (KZN); Stage
3-Western Cape and Stage 1 Phase 2: Gauteng) and the depot modernisation programme,
completing of two rail extensions, namely the Bridge City and Greenview
Pienaarspoort railway line, and completing 14 station upgrades and 25 station
improvements. It will also continue with its human capital development plans
which include learnerships and building capacity for its rolling stock
The entity is not
generating adequate cash to
meet its legal obligations. It is facing an immediate cash challenge due to
significant increases in the cost of energy as approved by the National Energy
Regulator of South Africa (NERSA) for Eskom, higher rates and taxes for its
property portfolio including the rail tunnel municipal rate increases, higher personnel
costs as negotiated with unions, as well as the increased cost of material.
ACCIDENT FUND (RAF)
mandate of the Road Accident Fund, derived from section 3 of the Road Accident
Fund Act (No. 56 of 1996), is the payment of compensation for loss or damage
wrongfully caused by the driving of motor vehicles in
Funds strategic goals over the medium term are to: develop a legislative
dispensation that is aligned with the principles of social security, ensure
that the organisation is solvent, liquid and sustainable by 2020 and ensure
that the organisation is a customer centric, operationally effective and
efficient by 2017.
Its most pressing objectives are r
educing the number of unfinalised claims, actively promoting and
processing direct claims, managing the liability, reducing legal costs, aligning
the organisation to current and future service requirements and
improving service delivery.
recent years, the provision for claims incurred has grown substantially due to
the number of open claims, a higher average cost of a claim, interest and the
reopening of previously finalised claims.
The Fund finds itself in a position where it has a large claims backlog.
SOUTH AFRICAN NATIONAL ROADS AGENCY
South African National Roads Agency Limited was established by the South
African National Roads Agency Limited and National Roads Act (No. 7 of 1998).
The Act makes the Agency 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. This
includes both toll and non-toll roads.
Agencys main strategic goal over the medium term is to provide effective
strategic road infrastructure to facilitate development, commerce, mobility and
access. Over the medium term, the Agency will continue with its preventative
maintenance approach as it expands its network to the extended mandate of 35 000
kilometres. It will also roll out the
Agencys income consists mainly of revenue generated from toll fees and
government allocations for the toll road network, as well as government
allocations for the upkeep of the non-toll road network. The 78.4 per cent of
revenue comes from national government transfers.
AFRICAN CIVIL AVIATION AUTHORITY (SACAA)
South African Civil Aviation Authority was established in terms of the South
African Civil Aviation Authority Act (No. 40 of 1998). The Act requires the
authority to control and regulate civil aviation safety and security, oversee
the implementation and compliance with the national aviation security
programme, oversee the functioning and development of the civil aviation
industry, and promote civil aviation safety and security.
The Authority is also mandated to promote,
regulate, support, enforce and continually improve levels of safety and
security throughout the civil aviation industry, which includes safety and
security oversight of airspace, airports, aircrafts, operations and personnel.
This is to be achieved by ensuring compliance with the International Civil
Aviation Organisation Standards and recommended practices in the context of the
The Authoritys main strategic goals
between 2012/13 and 2017/18 are to enhance the aviation safety and security
environment, and intensify regional and international cooperation. The
International Civil Aviation Organisation (ICAO) compliance audit will take
place in this financial year.
major challenge faced by the entity is the attraction and retention of core
skills to the industry.
SOUTH AFRICAN MARITIME SAFETY AUTHORITY
South African Maritime Safety Authority was established by the South African
Maritime Safety Authority Act (No. 5 of 1998). It is mandated to promote
Authoritys main strategic goal over the medium term is to continue improving
maritime safety and security and contribute to the transformation and expansion
of the maritime industry which involves developing the relevant skills for the
sector and raising awareness in government and society about maritime issues
Challenges experienced by the entity are i
ncreased frequency of incidents involving uninsured and substandard
ships, flouting of mandatory safety requirements, the speed of processing
required enabling legislation and the ratification of international and
regional instruments. Funding for Emergency Casualty Response remains a big
challenge at approximately R1,2 million per day with no clear arrangement of where
the funding should come from and bearing in mind that the casualty response
infrastructure (mainly the response vessel) has reached its end of life.
Other challenges are that the maritime
communications infrastructure and governance systems have reached the end of
useful life, access to port and port infrastructure to support the casualties
is inadequate, regional capability in enforcing the environmental standards is inadequate
to deal with oil spills emanating outside the borders, as well as substandard
ships that cause problems around the South African coastline and the non
ratification of International Instruments aimed at mitigating maritime
The Committee formulated its findings in the
context of the 2003 National Household Survey on Public Transport which found
There was a lack of integrated transport
infrastructure with long periods experienced for interchange between the modes
In its Strategic Planning Workshop, the
Committee raised what it had observed through its study tours and oversight
The non-alignment of some
core functions of the Department under other
Provincials Departments such as roads, which
falls under the Public Works Department in the Eastern Cape and
maritime which falls under the Department of
Economic Development in KwaZulu-Natal. This situation is creating challenges
with regard to the oversight functions of the Committee, as well as with the
alignment of programmes and models with the Department of Transport.
The uneven levels of
performance between the Department of Transport and its entities in instances
where the entities were outperforming the Department. This created a situation
where the Department was following rather than leading. The Committee also
observed that the support system of the Department was not matching the needs
of the entities.
The allocation of financial
resources does not meet the needs of the Department, such as the Rural
Transport Plan which was approved by Cabinet, but not funded by National
Treasury, thus creating challenges of inadequate transport for rural
The Committee observed a
lack of a uniform approach in addressing pothole repairs and road maintenance,
including the relationship of
to poverty reduction and job creation, as well as the improvement of
access roads to schools, clinics, hospitals, police stations and places of
The Committee further noted
the lack of a
transport subsidy that
targets commuters, as opposed to service providers, as the current subsidy does
not cover all transport modes, therefore having no impact on making all modes
of transport accessible to the poor.
The Department focused more
on policy formulation and less on coordination and the development of an
integrated transport master plan, as well as the transport development model.
The Committee was concerned
about the inability of low-fare airlines to sustain themselves in
The Committee noted that some
transport modes were not accessible to people with disabilities.
The Committee noted that a
lack of proper intercom systems and electronic signage at train stations were
causing frustration and anger for commuters.
The Committee noted the
lack of pedestrian bridges to schools, as highlighted by the Department, and
the lack of a uniform approach to road maintenance. The Committee reiterated
that quality control and an accreditation system for road repairs should form
the basis for road maintenance.
The Committee noted the
lack of information on
and queried the Departments decision to have the manufacturing sites in urban
areas while the project was targeted at rural areas.
The Department declared
2013 the Year for Maritime, but the Committee expressed its dismay that this
was only communicated to it in April 2013.
Policy formulation in the
Department took too long. The maritime and scholar transport policies have not
been finalised after 5 years.
The Committee remained
concerned that some provinces were not using
funding for its intended purpose.
The Committee noted that
each transport entity contracted consultants to formulate its own cooperative
development plans. The Committee will explore ways to align these plans while
the Department identifies a niche market within industry for cooperative
development, prioritising those aimed at reducing poverty and creating
employment with the aim of the exiting of poor families off social development
grant and indigent registers.
The Committee recommends that the Minister
ensures the following for the 2014/15 financial year:
Reviewing the institutional
arrangements so that the core business of
transport falls under
the Department of Transport, even at provincial and local government level.
Developing a measurable
strategy for reducing road accidents.
That National Treasury
increases its financial allocation for the Rural Transport Plan.
The prioritizing of pothole
repairs, road maintenance and access roads to public facilities in the context
of community development to address unemployment and reduce poverty.
The establishment of a passenger-based
Building internal capacity
in engineering as part of the Departments skills development programme.
Reducing the duration of
the Departments policy making process.
The Department should
investigate means to make it more attractive for low-fare airlines to survive
in the South African business environment. The Department should also place
universal access of transport to all high on its agenda and ensure
accessibility of all modes of transport to the poor.
The Passenger Rail Agency of
South Africa has to ensure that proper intercom systems and electronic signage
are installed at all its stations to improve its communication with commuters.
The Department should
follow up on (1) the
proposed plan of escalating driver
training to ensure that learners obtain driving licences by the time they
matriculate and (2) the conditional licensing of newly qualified drivers.
Report to be considered.
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