Address at the National Council of Provinces (NCOP) by Mr Jeff Radebe, MP Minister of Transport, Cape Town

Honourable Chairperson and Members

In my Transport Budget Vote Speech on Tuesday, 27 March 2007, the Public Transport Plan, the 2010 preparations, the Transport Infrastructure Development Plan and Freight Logistics stood out as major challenges for the Department of Transport and I am sure that the Honourable members have managed to digest the contents of that speech.

My intention today is to elaborate and deal with issues that relate to implementation, co-ordination and integration tasks across the three spheres of government. My department faces the challenge of ensuring the provision of a safe, reliable and affordable transport system in South Africa and in implementing our programme at the various levels of government. Enhancement of our institutional arrangements and the rationalisation of procedures are required to achieve the improvement of our collective performance which is fundamental in meeting our objectives of increased investment, job creation and poverty alleviation.

These objectives translate to an improved public transport system, transport infrastructure as well as the reduction of the cost of doing business in our country. As you may well be aware, our budget allocation for this financial year is the cornerstone towards achieving the above objectives and creating a transport legacy for South Africa. It may be useful for the house just to note the Budget allocations for the current Medium Term Expenditure Framework (MTEF) period.

The following budget allocations will benefit public transport over the MTEF period:

* R8,5 billion for Passenger Rail Infrastructure
* R5,5 billion for National Roads Infrastructure
* R19,2 billion for Airports Infrastructure
* R9,2bn has been set-aside for Public Transport Infrastructure Grant for the 2010 Soccer World Cup.

The projects which are funded through the Public Transport Infrastructure and Systems Grant include among others the following broad categories:

* public transport links and facilities
* public transport interchanges facilities
* rail infrastructure and systems upgrade
* inter-modal facilities
* Information Technology System (ITS) infrastructure and systems
* Non-motorised transport (NMT) infrastructure
* airport � city accommodation, stadia links.

Stadia precincts upgrade:

* Travel Demand Management schemes
* Bus Rapid Transit (BRT) Systems
* Project Management and Capacity Building.

2010 World Cup

The implementation of the 2010 Transport Action Plan is well on track and the host cities have already submitted detailed plans and have already started with the implementation of physical projects. These projects are funded through the Public Transport Infrastructure Grant.

The Provincial 2010 Soccer World Cup projects in host cities and their budget allocations include:

* Rea Vaya in Johannesburg at a cost of R329 million integrating trains, taxis and buses for 2007
* Inner city distribution and Bus Rapid Transit (BRT) networks in Tshwane at cost of R104 million for 2007
* Nelson Mandela Bay: Khulani Corridor a BRT project costing R200 million in the next three years
* BRT on the Klipfontein Corridor along the N2 Airport City in Cape Town
* the Warwick Junction in Durban Inner City
* road infrastructure upgrading projects in Limpopo.

Outside of this vote an additional R3 billion has been allocated through the Provincial Infrastructure Grant for the Expanded Public Works Programme (EPWP) focusing on Rural Access Roads.

Public Transport

The essential feature of the Public Transport Strategy (2007-2020) is the phased extension of mode-based vehicle recapitalisation into Integrated Rapid Public Transport Networks (IRPTNs). These Networks comprise an integrated package of Rapid Rail and Bus Rapid Transit (BRT) priority corridors - especially in major cities.

Catalytic Projects

The goal of the "Catalytic Projects" is to initiate implementation of Integrated Rapid Public Transport Networks in targeted municipalities simultaneously with the current nationwide rollout of "Accelerated Modal Recovery" interventions.

The Integrated Rapid Public Transport Network package will require city-wide, transport authority controlled network of rapid public transport corridors together with feeder systems of smaller buses, taxis, bicycles, pedestrian access as well as metered taxis and park and ride facilities.

The service will have high frequencies of �5 minutes during peak periods, 15 minutes off peak along trunk corridors as well as 16 to 24 hours operations. Full special needs and wheelchair access for all trunk corridor rail and road vehicles will be implemented.

Taxi Recapitalisation

The Taxi Recap Programme is also on track and its physical implementation commenced on Saturday, 28 October 2006, in Botshabelo in the Free State province. To date more than 4 271 old and unroadworthy taxi vehicles have been scrapped in all the nine provinces with a total tune of R213 550 million given to operators as scrapping allowance. The acceleration of the programme will ensure that 80% of the taxi fleet will be recapitalised by the 2010. We will now focus on the 18 000 old vehicles through law enforcement initiatives and encourage their owners to recapitalise in order to meet our target for 2010.

The process of conversion of permits to licences is well on track and more than 100 000 operating licences have been approved by Operating Licensing Boards. Provinces will have to ensure the acceleration of the uplifting of these licences.

Honourable members, I want to put it on record that we condemn the violence we have seen in Gauteng recently. My department is working closely with law enforcement agencies to bring those responsible to book. This clearly is a reflection of resistance to regulation of the taxi industry, particularly route rationalisation.

The taxi violence will not stand in the way of ensuring that we regulate the taxi industry. My department is already developing a law enforcement and compliance plan with the Road Traffic Management Corporation (RTMC) as part of the regulation of the taxi industry, which is an integral part of the Taxi Recapitalisation Programme. On the other hand, we will be extending the bus subsidy to an integrated road based public transport subsidy framework which will also benefit the taxi industry but only in a regulated environment.

Bus subsidy

Progress has been made in the preparatory work for implementing road based public transport contracts with the publication of the model tender and contract documents in 2006. In this regard, public transport services are already being designed based on existing transport plans in provinces.

The National Rail Plan

In December 2006 Cabinet approved the National Rail Plan, which is a consolidation of Regional Rail Plans, which specify and quantify the specific infrastructural and rolling stock interventions required to implement the Rail Plan Strategy. In terms of commuter rail infrastructure, a short-term three to five years funding requirement of R4,5 billion, that relates to an annual requirement of R1,8 billion has been identified to fund specific infrastructure interventions on priority commuter rail corridors.

We want these services to be felt by the majority of South Africans so that their social well-being is improved and they have access to economic opportunities. These regional rail plans were developed in consultation with provinces and metropolitan authorities taking into account strategies set out in the metropolitan authorities' Integrated Transport Plans. The regional rail plans clarified the role that commuter rail should play in the context of an integrated approach to public transport.

Special attention is also given to the improvement of security measures within the railway environment. The strategy includes a co-operative agreement with South African Police Serve (SAPS) to invest in security related infrastructure required for the establishment and rollout of a dedicated Railway Police Unit. The rollout of SAPS members is on course with 700 Rail Police currently active and 5 000 members being in place by 2010.

To date the construction of police stations in Cape Town, Retreat, Bellvile and Phillipi Stations has been completed. Construction has also started in Durban, Reunion, Cavendish, KwaMashu, Tshwane, Denneboom, Mapobane, Germiston, New Canada and Johannesburg. The Cape Town network has already seen a 31,6% reduction in crime related incidents and fare evasion has been reduced from 9%-4%.

Freight Logistics

The implementation of the Freight Logistics Strategy is expected to have a positive impact on the efficiency of freight movement. The Department of Transport will continue to focus on the Durban-Gauteng Corridor and its development projects and later we will focus on the Cape Town to Beit-Bridge Corridor.

Plans are underway to start the development of the Dube TradePort and the airport at La Mercy in line with the Ethekwini Freight Plan in order to unlock the streamlining of goods transportation in and through the city. Our main projects will include rehabilitating the Nkwalini rail line; implementing the Harrismith Trade Hub project, establishing the transport logistics centre as a repository of central logistics as well as developing a route or map towards a framework to a freight master plan for the country.

Our 2007 plan will take into account the efficiency of the Branchline strategy, the Nkwalini in KwaZulu-Natal, Belmont-Douglas in the Northern Cape and Kei Rail in the Eastern Cape Branchline revitalisation projects. Work will continue in the Nkwalini Rail upgrade project and emphasis will be placed on the empowerment of local people.

National Ports Regulator

I also want to mention that early this year we appointed the Board of the National Ports Regulator. This is a major milestone in the transformation of our maritime industry and will go a long way in contributing to economic growth, promote equity of access to Ports, monitor activities of Ports Authorities to ensure it performs its function in accordance with the National Ports Act. For the first time in our country, we will have an independent body whose primary function is the economic regulation of activities in the maritime sector.

Aviation

Honourable members, in anticipation of increased air travellers for the 2010 World Cup and beyond, the Airports Company South Africa (ACSA) has commenced a five-year investment programme in all major airports in the country totalling R19,2billion. All provincial airports are being upgraded to meet the increased influx during 2010 and beyond. It has been projected that ACSA would handle more than 31 million passengers by 2012.

The following improvements have been proposed to accommodate the forecasted increase in movements of passengers and cargo between 2007 and 2010:

* OR Tambo International R2,65 billion
* Cape Town International Airport R714 million
* Upington R33 million
* Bloemfontein R43 million
* Durban R65 million
* East London R91 million
* George R15 million
* Kimberly R8 million
* La Mercy, Durban R1 586 billion
* Port Elizabeth R52 million.

eNaTIS

Honourable members my department and the Auditor-General have a scheduled meeting on Monday, 11 June to discuss the Management report which has been the subject of media discussion recently and we will thereafter issue a joint communique and provide the much needed clarity and detail on this matter. I can confirm however that the period during which the audit was conducted was June 2006 when the current eNaTIS was under construction and largely the challenges were overcome during the migration process from the NaTIS to the eNaTIS.

Also the challenge relating to the capacity of the vehicle registration functionality of the system, which we experienced in April / May, is a thing of the past. As I stand before you the system is stable and operating optimally, performing in excess of 500 000 transactions per day. I also want to state that we have invoked Clause 26 together with Schedule 15 in the contract, which commits the service provider to ensure the smooth transfer of the system to government and system optimisation. Within the next thirty days we shall finalise a transfer management plan and we are confident that the transfer will take place within a capped period of 12 months.

Monorail

Let me indicate that I have since met with the Gauteng provincial MECs of Finance and Economic Affairs, as well as Transport, Roads and Works following the public announcement of the monorail project.

We all agreed that the proposed Monorail would be put on hold until such time that the necessary process including consultation has been undertaken. We also agreed that the proposal should be open, transparent and it must take into account approved and funded transport plans aimed at enhancing the efficiency of the current rail, bus and taxi operations within the public transport system. This means that the Gauteng province will review the proposal and develop a sound business case. Thereafter there will be broader consultation with National, Provincial and Local Government. The proposal will be subjected to the normal processes of government and then submitted for my consideration, in due course.

Road infrastructure

In the period under review Cabinet approved the Road Infrastructure Framework for South Africa (Rifsa) which is intended to embody the roads policy in South Africa and a blueprint for roads development planning and provision by all roads authorities.

The budget of South African National Roads Agency Ltd (Sanral) has accelerated from R2,1 billion in 2005/06 to a projected R11,5 billion in 2009/10, which will allow them to expand their footprint.

The National Treasury granted approval for an allocation of R3 billion for the EPWP road construction, which will include labour intensive road construction and maintenance over the 2007/08 and the MTEF periods. Projects in the pipeline include the expansion of the Provincial Transport Departments' initiatives for labour intensive rural access roads such as Zibambele and Vu'Kuzakhe in KwaZulu-Natal, Gundo Lashu in Limpopo, Siyatentela in Mpumalanga and Siyakha in Gauteng to a national based programme across the country.

Our three concession contracts, the N3, N4 Platinum Corridor and the N4 Maputo Development Corridor, continue to facilitate improved trade, tourism and intergovernmental relations; thus providing faster, safer and more reliable transport as well as building the economy of our country. My department through Sanral will continue with its Public Private Partnership (PPP) concession programme. It is currently developing projects such as the N2 Wild Coast Toll Highway between Durban and East London. The Wild Coast was identified as one of the areas for strategic development in accordance with government's Spatial Development Initiative (SDI) strategy as long ago as 1995.

It will not only give access to the untapped potential of the Pondoland but in so doing address the primary inequality, namely lack of access that has led to this being the most impoverished region of South Africa. We expect to see the construction of this important road starting before the end of the year.

The Sani-Pass road project at the border of South Africa and Lesotho brings in regional co-operation and integration as articulated in the Southern African Development Community (SADC) Protocol on Transport, Telecommunication and Meteorology. The total cost of this project is R160 million and on the South African side the footprint of this initiative will extend as far as Pietermaritzburg, which is a town with potential to provide a variety of economic services to Lesotho.

The Department of Transport has developed the Integrated Rural Mobility and Access (IRM) project implementation plans for three nodes. Areas that need maintenance are Sekhukhune, a cross-border development in Limpopo and Mpumalanga provinces and OR Tambo in the Eastern Cape, Umkhanyakude and Umzinyathi in KwaZulu-Natal. At OR Tambo municipality the department has targeted Qaukeni and Port St Johns (Tombo) as key focus areas for a variety of non-motorised transport initiatives; including freight logistics co-ordination.

In conclusion ladies and gentlemen, I must stress those interventions within our road networks should influence transformation and strongly bridge the gap between first and second economies. Our public transport services should meet the ever-increasing demands of commuters and provide a car competitive solution in order to reduce congestion on our roads.

Honourable members, thank you to the Members of the select committee and the MECs in the various provinces for their active participation through the year. I look forward to a healthy debate.

I thank you.

Enquiries:
Sam Monareng
Deputy Director: Media Relations
Department of Transport
Tel: 012 309 3970
Fax: 012 309 3313
Cell: 083 326 1521
E-mail: Monarens@dot.gov.za

Issued by: Department of Transport
6 June 2007