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Date : 09/06/2003
Source: Ministry of Transport
Title: Radebe: Transport Dept Budget Vote 2003/2004


ADDRESS BY JEFF RADEBE, MP, MINISTER OF PUBLIC ENTERPRISES AND ACTING MINISTER OF TRANSPORT, DURING THE NATIONAL DEPARTMENT OF TRANSPORT BUDGET VOTE, National Assembly

The National Department of Transport covers a wide and complex spectrum of activity. It oversees the work of 7 agencies and bodies and is responsible for the implementation of some 135 acts of parliament and their amendments, it currently has 13 bills in process, and it administers myriad regulations covering transport issues on land, at sea and in the air. It is thus a rather daunting task to present the budget vote of the department for debate this afternoon in my capacity as the acting minister of transport. My task is made more pleasant however because of the presence of Minister Dullah Omar, the captain of the transport ship, whom I am delighted to welcome to the House this afternoon. I am sure members from all sides join me, Minister Omar, in wishing you continued strong recovery and good health. We extend also our consideration to your family during this time.

We are all familiar with the TV advertisements that emanate from companies involved in the South African transport sector. These clearly provide a snapshot of the importance of this sector to our economy as a whole and the manner in which these entities impact on the daily lives of our people everywhere. They all reflect the rather apt assessment provided some years back by the European Commission that described transport as "a human right, a human pleasure, an economic resource and a servant of economic activity: transport is many things to all people." I wish to hang my comments this afternoon around this concept and highlight only some elements from the wide range of the Department's activity. At the outset, allow me to acknowledge the presence today of those other critical links in the transport chain, the provincial transport MECs and representatives of their departments, as well as the executives and management of the agencies and entities that reside under the ambit of the Department itself. The Department itself continues to provide energetic and committed work that all of us are grateful for. Without their co-operation, participation and hard work, I suspect that our country would quite literally be at a standstill!

Honourable Members, transport is a cornerstone of any society. The ability to move around, to move goods and people rapidly and efficiently and above all safely, to overcome the natural barriers to human movement that physical and spatial impediments present, to traverse the oceans and to course through the air, these are activities that we sometimes take for granted. South Africa's history shows very clearly that transport systems are not neutral in their social impact, and they have frequently served to perpetuate unequal access to opportunity, secured the unjust delivery of services to a few beneficiaries and have often disregarded the equality of people from whatever background, class or race. The spatial legacy of apartheid town and regional planning produced a political geography of discrimination in all spheres of the transport sector, from the provision of roads, rail and air facilities, infrastructure investment and planning, to the identification of public bus routes, timetables and even equipment, and even led in major part to the development of the mini-bus taxi industry as we know it today.

If we are to successfully eradicate the negative social and economic effects of that past from the present, whilst at the same time introducing systems that cater for future development, we must, as government, play an active and purposeful role that does not leave transformation up to chance. At the same time, an effective transport system will encourage the success of NEPAD.

For these reasons, amongst others, the transport sector stands at the centre of efforts to transform our society and re-orientate our economy. All elements of transport policy, whether they relate to safety and security, to public access or the alignment of transport subsidies or the recapitalisation of the taxi industry, the concession and reorganisation of ports, and so on, must therefore be conscious efforts to change our society but in a manner that does not allow the unintended consequence to be king at the end of the day. Transport policy must of necessity be proactive and dynamic, able to adapt to changing circumstances as well as being able to forge new power relationships and to assist social processes for change, bringing the formerly excluded into the forefront of development initiatives. Thus, a national Department of Transport must take ownership of policy formulation and implementation, and must assert its authority over the various bodies that fall under it to ensure that individual contributions are aligned with national objectives and that the human and financial resources of such bodies are expended responsibly.

I wish to focus attention on four priority areas. These are the transport sector as the catalyst in the logistics chain that powers our economy; the requirements of the commuter and public transport systems; the role of infrastructure provision both as instrument of growth and as employment driver; and the issue of safety and security within the transport sector itself.

I am sure that I do not need to convince anyone in this House about the importance of a seamless logistics chain in any developing economy. Such a chain should critically reduce the cost of doing business in our country, make for the more efficient movement of goods and people, assist in the promotion of economic activity and development across a wider geographic area, and ensure productive participation of ever-larger numbers of people in our economy. Our participation in the global economy has grown by leaps and bounds since 1994 and this has presented particular challenges to our transport system, in terms of its infrastructure needs and its management systems. To put it simply, we have to ensure that our export/import routes operate smoothly from ocean to coast, from port to wharf to railhead or road or to airfreight depot; that they are assisted by realistic tariffs and charges and activated by an appropriately skilled workforce that can reach places of work easily, comfortably, safely through urban and rural areas that operate efficient public transport systems that ease movement and cut down delays. The nature of production today has changed dramatically where manufacturing is concentrated on the production and efficient transport of components from one place to many others, increasingly relying on the "just in time" principle. One effect of this is that any disruption along the way, whether it be a train derailment, congestion in ports, an IT breakdown, a wildcat strike, or even electricity outages, to list a few, can have a major negative impact on economic activity.

One answer to the problems is to focus attention on the co-ordination of multiple and diverse efforts, the coherence of policy conception, and the co-operation of all stakeholders. All of us can do a lot more to ensure greater co-ordination, coherence and co-operation throughout our transport sector as these elements play as large a role as infrastructure development in the development of an efficient logistics system.

Critically, our transport system is integrated into the SADC region and here the work of the Cross Border Road Transport Agency needs to be commended for its efforts to ensure standardisation and coherence. NEPAD, too, stands to benefit from an integrated and well-developed transport system.

A second area of importance relates to the rationalisation and streamlining of commuter and public transport. The Department is currently conducting a strategic review of public transport policy and strategy, which includes the development of a policy on the targeting of public transport subsidies for bus and commuter rail. Currently nearly R4 billion per annum is allocated to public transport subsidies for bus and commuter rail transportation, but as public transport is a basic need, subsidies should be allocated in line with income distribution. The current practice is that the majority of subsidies are paid to higher income urban areas, so we must now target low income areas and households to ensure that the most deserving users of public transport are identified and targeting will further seek to enhance government's objective of poverty alleviation. The challenge is to develop a model that serves government's social and economic imperatives as well as the interest of the public in general.

The very public issue of the taxi-recapitalisation process continues to provide challenges. I need to remind the house that the recap programme is but one of three initiatives related to the overhaul of the taxi industry as a whole. The others are the democratisation and the formalisation or registration of the industry and the process of electing the leadership of the industry countrywide. The taxi recap involves safety and empowerment issues. We must take into account the diversity within the taxi industry whilst not compromising the need for proper regulation and safety. We are proceeding with the taxi recap and will do so with all stakeholders on board. MinMec meets tomorrow to discuss the latest developments in the taxi recap process, the programme for the rollout, and specifically the issues raised by SANTACO.

Rail commuters account for a large percentage of people on the move, most of them catered for by the SARCC. Increased allocations for the rolling stock upgrade programme with an additional R100m per annum over the next 3 years will certainly play an important role in beginning to address the current backlog. This is in addition to the R884m already invested in the upgrading, remodelling and refurbishment of rail commuter stations countrywide. A further R1, 6bn of private sector investments, covering more than 120 developments, has also been facilitated on land and properties surrounding rail commuter stations. The cumulative total economic impact of job creation and economic activity through the station investment programme has so far exceeded R3, 7bn.

Renewed attention has been focussed on infrastructure development and upgrading across the transport sector. Roads in developing urban and rural areas are generally inadequate, both for reasons of historic neglect and for reasons of regional population shift and growth. It is estimated that funding levels required to address the rural roads backlog is R56 billion for all provincial roads and R8 billion for roads under the national roads agency. To meet this challenge, Cabinet has approved a five-year strategy road infrastructure strategy, to prevent further deterioration of our roads network.

The Department is working with its provincial counterparts and major stakeholders on a major overload control infrastructure programme dealing with reckless overloading. It is based on the construction of a strategic network of traffic control centres and fixed weigh stations on major roads, supported by mobile weigh stations on alternative roads in the main freight corridors. Related to this initiative, as part of the department's freight transport strategic intervention of promoting a modal shift from road to rail, the department has embarked on a programme which includes joint venture projects with the Eastern Cape and KwaZulu-Natal departments of transport to revive railways lines that have been classified as low and light density lines.

Honourable Members, the Department, in partnership with the KwaZulu-Natal Department of Transport, has just completed a study of freight flows in the major freight corridors within the province. This information is critical in us knowing the type of commodities being moved, their tonnages and their origin and destination, thereby assisting in addressing problem areas in our transport infrastructure with ease and speed. Similar studies will be rolled out nationally.

The National Roads Agency is involved in efforts to improve the primary road network. Although the issue of tolling has become a contentious public debate in our country, it is very important to note that the existing concession roads have embedded within them a combined private sector investment value of R5.2 billion, of which R1, 37 billion is in the form of direct foreign investment. Approximately 1350 km of national roads are being upgraded and maintained without making any demands on tax-based revenue.

Some key projects are undertaken by various provinces, including the provision of infrastructure in previously underdeveloped areas, access road development, labour-based employment creation projects as well as maintenance and rehabilitation. Provincial budgets will increase by 7.5% from 4.7 billion in 2002/03 to R5.1 billion in 2003/04. It is also projected that there will be further increases of the order of 9.5% over the MTEF period, reaching R6.2 billion in 2005/06.

I must stress that I expect full compliance with the Growth and Development Summit call for transport infrastructure, particularly but not exclusively, rural roads to make use of labour intensive methods of construction. Of course, these will need to be integrated with engineering requirements associated with sustainability and safety.

I can report that the revision of the National Ports Authority Bill is nearly complete and will be submitted shortly. In the interests of time, I will reserve any comment on ports policy to the debate on the Bill in due course.

Investment in airport infrastructure is basically necessary for four reasons: to comply with aviation safety requirements, to facilitate trade, to promote general economic growth, to promote tourism and to improve handling capacity in view of increasing passenger numbers. This investment is most necessary at South Africa's major international airports, operated by ACSA.

ACSA has a major capital expenditure programme for improvements in terminal capacity, runways and taxiways, roads and parking, safety, security and bulk infrastructure, with the greater portion of this expenditure going into Cape Town and Johannesburg international airports. A budget of R2, 7 billion has been projected for infrastructure improvement and expansion for the period 2002-2007. This morning I formally opened the new domestic terminal at Johannesburg International, a project that engaged an R850 million investment.

In the current financial year ACSA will continue with the provision of infrastructure and equipment required for meeting increased traffic demand and safe and secure airport operations. Estimated capital expenditure for the year is in the order of R600 million. Investment in air navigation infrastructure is essential to ensure that South Africa can cope with growing traffic volumes and new technology, while maintaining the required aviation safety standards.

Madame Speaker, I am pleased to announce that South Africa has recently been elected onto the council of the international civil aviation organisation (ICAO). This is indeed a historical moment, marking South Africa's return to the governing body of ICAO 36 years after its expulsion from the Council. We are honoured by our election and are mindful both of the importance of our new position, and of the challenges that come with it.

This brings me to the final issue, that of safety and security in the new global environment. Once again, our agencies are in the forefront of activity to ensure safety and security. ATNS is currently working on upgrading ageing radar display and processing systems at Johannesburg International Airport that will expand the control centres nation-wide and incorporate "automatic sequencing" of traffic into Johannesburg and Cape Town, ensuring correct separation and a consistent flow of arrivals, which will enhance efficiency and reduce costs for airlines. The total cost of this project, which is due for completion in 2004, is R 228 million.

During the year ahead, we will continue our efforts to ensure a network of air transport services that efficiently connects South Africa with the rest of the world. This includes the introduction of new air services and the expansion of the level of activity of current air services to and from South Africa, in support of government's macro-economic priorities.

Safety in aviation is critical, as the tragic losses of this weekend's plane aircraft losses indicate. It is one of the critical areas that the CAA is hard at work to ensure. As we know only too well, there have been three mid-air collisions in African airspace in the recent past. Collision avoidance has become a critical element across the continent. I can report that SAA, SA Airlink and British Airways/Comair all operate the Airborne Collision Avoidance systems and are fully compliant with all requirements. Other SA registered airlines are taking steps to be compliant by the implementation date of 30 June 2003. We shall also shortly be addressing ICAO's new requirements for a global standard for readable travel documents to prevent identity fraud and to speed passenger processing at airports.

The Department is also active in the preparations to introduce new security and safety requirements agreed by the International Maritime Organisation and applicable from June 2004.

Madam speaker, I do not have to remind anyone in this house, or in this country, about the critical issue of safety on our roads. We all continue to be confronted with the reality of death on our roads on a daily basis. The Bethlehem bus disaster, where over 50 workers lost their lives, is only one of the more recent instances in this grim toll of death.

The department is making every possible effort within its power to lay the foundations for a sustainable long-term reduction in these fatalities and injuries. The short-term actions we take now must be compatible with the long-term programme, based on effective enforcement, institutional reform, anti-corruption measures, education and community participation. Therefore, within the framework of the road to safety strategy, the following key interventions have been identified for urgent implementation in the short to medium term. These include integrated law-enforcement and communication to ensure co-ordinated planning for traffic law-enforcement and support services. A forensic audit into road traffic accident statistics, leading to the establishment of the national road traffic accident bureau, is underway. Hazardous locations were identified in provinces and there is currently ongoing work to improve safety in those locations. Furthermore, a pedestrian visibility project has been set up in order to improve visibility of vulnerable pedestrians in and around high risk and accident- prone areas. Plans are afoot to establish community-based structures to co-ordinate, educate, create awareness and encourage community participation in road safety programmes. Relevant road traffic legislation is also undergoing amendment where necessary.

Let me briefly mention a few further key developments in the implementation of the road to safety strategy. With respect to fraudulent licences, we were able to cancel approximately 10 000 driving licences as a result of joint investigations with the saps by 2002. We have upgraded 30 driving licence testing centres to meet the minimum statutory requirements at a cost of R17.1million. We have reviewed and improved the K53 manuals, which are used for both training and testing of drivers, and we have introduced a "best practice model" for vehicle registration and licensing, which is currently implemented at 22 authorities in Gauteng and 1 in Mpumalanga. National rollout is continuing and should be completed by December 2004.

We have recently introduced new legislation to regulate the transportation of dangerous goods. We have to date trained 4000 traffic officers to enable them to carry out dangerous goods law enforcement whilst, at the same time, we are setting up a dangerous goods inspectorate within the department. We have evaluated all 10 traffic-training colleges in order to ensure compliance with the road traffic act. Basic salary scales for traffic officers were improved as of October 2002. However, due to financial constraints, not all provinces have yet implemented the new scales.

The safety of passengers in the rail commuter system remains one of the biggest challenges for the rail industry. The newly established Railway Safety Regulator, which will regulate safety by setting standards in the railway transport system, has a lot of work to do, and we look forward to its contribution.

Our marine heritage remains an important ecological asset that is under constant threat of extinction from repeated incidents of oil and chemical spillage in our territorial waters. The department, in partnership with the South African maritime safety authority (SAMSA) and the Department of Environmental Affairs and Tourism, is currently developing a national contingency plan to respond quickly and effectively to these spills whenever they occur. The establishment of a dedicated maritime rescue co-ordination centre is firmly on track and the new centre will officially become functional before the end of this year.

In conclusion, Madam Speaker, the function of transport is to move people and goods from one point to another safely, predictably, efficiently and at a reasonable cost. For millions who travel to and from work daily, transport is a basic need. Transport also plays a crucial role in the economic growth and development of our country. But because of our inherited legacies of huge spatial distortions and large areas of under-development, even the economic function serves a social function. That social function has to do with the constitutional imperatives of dignity and equality. In its role of addressing one of our people's most fundamental basic needs - and as an input sector supporting the growth and development of South Africa's economy, transport will continue to deal with the many complex challenges it faces.

I have outlined only some interventions of the Department in meeting this challenge. There is a need for greater oversight by the national Department, within the context of co-operative governance, to ensure alignment with our national development goals. The Department will host a Transport Sector Summit later this year to discuss the way forward of how best to translate this government's social and economic vision into reality.

Thank you and remember, Arrive Alive!

Issued by Ministry of Transport
9 June 2003

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