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Date : 24/05/2004
Source: Ministry of Transport
Title: J Radebe: Parliamentary Media Briefing, May 2004


ECONOMIC AND EMPLOYMENT CLUSTER: MEDIA BRIEFING BY MINISTER OF TRANSPORT, MP, JEFF RADEBE, 24 May 2004

There are three main focus areas of the first year of activity of the Department of Transport:

1. review of public transport subsidy system towards establishing an efficient, widespread and affordable public transport system that covers rail, taxis and busses;
2. developing a comprehensive logistics strategy and investment plan by November 2004; and
3. overhaul the Department through the implementation of institutional changes to enable the Department to effect its new direction.

1. Review of Public Transport

* Public transport is a critical input factor in the South African economy. Experience shows that in general terms, rail passenger transport is haphazard, of a low service standard, and is grossly under-funded as far as the maintenance and provision of new infrastructure and security are concerned.

* Under-investment in the past years, although addressed to some degree in the last 2 years, remains unacceptably low. Since 2001, some R4bn per annum was invested in transport infrastructure, covering the road, rail and buses. This excludes the R1bn once off investments in airport construction and refurbishment. However, the DoT has estimated the current maintenance backlog for commuter rail in the region of R15bn.

* A review of the public transport system is underway. One factor to consider is the mis-match between the subsidies as currently determined and the types of public transport used by commuters. Hence, although commuter taxi services are not currently subsidised, these taxis are used by about 60% of current commuters. It is not wholly clear whether the numbers would be this large if the bus and rail services were more efficient.

* The revision of the public transport subsidy system that is underway will underpin the merger of Metrorail, Shosholoza Meyl and the SARCC. This merged entity will reside under the DoT, allowing Spoornet to concentrate on the core business of freight logistics.

* The revision of the subsidy system will also consider alternative means of delivery and payment. It will also develop a business case for the increasing public sector investment in the public transport system.

* As with all special projects, the DoT has established a public transport committee as the forerunner of a wider forum to ensure that the transport requirements for the Soccer World Cup 2010 are an integral part of the overall planning system for a better public service in South Africa.

2. Comprehensive Logistics Strategy

* The major impediment to trade and investment in our economy is the problem of significant operational problems caused by bottlenecks in the system. The rail system is unreliable, the road freight system is under enormous pressure, our ports suffer from poor throughput. The lack of point-to-point infrastructure, as well as out-dated managerial and operational systems have greatly increased the urgency of tackling this problem as South Africa's capacity to deal with an ever-increasing trade environment falls further and further behind.

* A thorough review of the causes and consequences of the bottlenecks along the logistics chain will identify what needs to be done and how this should be done.

* Currently, the Gauteng-KZN corridor has been identified as an important pilot project. Where after attention will shift to the Cape Town-BeitBridge and the Gauteng/TransKalahari corridors. In the process of developing these corridors we will not neglect other important corridor investment, such as the Sishen-Ngqura development, those associated with spatial development initiatives.

* Along with these major developments, the logistics strategy plan will link with public transport considerations as well as the extended public works programme where rural roads are a major initiative and community development projects. This requires speeding up earlier plans to revitalise and re-open marginal railway lines to encourage local development. Some of these will use the current Umtata-AmaBele/East London line upgrade as a pilot study.

* The freight logistic strategy and implementation plan will be ready by November 2004.

3. Institutional changes to effect the programmes

* The DoT has a serious shortage of senior personnel across all divisions and sections. This under-capacity of skills hampers the ability of the department to focus on its key role as a development-centred department. It also does not allow for effective oversight and control of the numerous transport agencies that it is meant to administer.

* The DoT needs to be overhauled and its administrative sections reorganized to meet the challenges of a developing economy.

* We have therefore finalised a new organogram for the Department that will be revealed before the Parliamentary Committees at the earliest opportunity. This will lead to a more streamlined and focused department, paying attention to transport issues in a strategic manner that allows for a core focus on key issues, with cross-cutting interests integrated into the larger plan.

There are a number of other issues that the Department will continue to deal with, such as the promotion of road transport safety. At the same time, additional attention will have to be paid than has been the case up until now with the complex areas of aviation and maritime transport issues.

With regard to the aviation sector, I am pleased to mention that just two weeks ago, South Africa was elected to the Presidency of the African Civil Aviation Commission from where we will be able to play an important role coordinating Africa's aviation needs and making sure that Africa's skies are safe, cheaper to travel through within the continent itself, and that Africa's airlines remain competent, effective and able to meet expanded needs.

In the maritime area, the DoT will cooperate with all interested parties in the sector to draw up an effective maritime transport policy that takes into account the special circumstances of that sector. As a result, we will present to the South African maritime conference in March 2005 a comprehensive strategy.

Issued by: Ministry of Transport
24 May 2004
Source: Department of Transport (http://www.transport.gov.za)

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