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SA: Ismail Vadi: Address by Gauteng Transport MEC, during the Gauteng Transport Prov Budget Vote 2018/19, Gauteng Provincial Legislature (28/06/2018)

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SA: Ismail Vadi: Address by Gauteng Transport MEC, during the Gauteng Transport Prov Budget Vote 2018/19, Gauteng Provincial Legislature (28/06/2018)

Gauteng Transport MEC Ismail Vadi
Gauteng Transport MEC Ismail Vadi

29th June 2018

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Madam Speaker

I am pleased to announce that on 4 June 2018, the Gautrain Management Agency had won an internationally-acclaimed Gold Quill Award in Canada for its children’s publication explaining the Gautrain rail system and promoting the use of public transport. The GMA is the only South African public entity to have received the Gold Quill Award of Merit. This is a prestigious award that was selected from over 700 entries worldwide and I would like to congratulate Dr Ingrid Jensen and her team for this achievement. This follows shortly after the Head of Department, Mr Ronald Swartz, was presented the “Best HOD in Transport Award” by Minister Blade Nzimande.

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The Department has finalised the policy and legal work relating to the Gauteng Transport Authority Bill, 2018, which has been tabled in the Legislature. This is a seminal Bill that will create the institutional architecture for integrated transport planning and co-ordination across the provincial and municipal spheres of government in the province. In a matter of days, we will re-open the Tolwane Bridge that has been reconstructed after it was severely damaged during a thunderstorm in the area.

The South African Institute of Civil Engineers (SAICE) 2017 Infrastructure Report states that the paved provincial road network countrywide has shown an improvement largely due the improvement since 2011 of the condition of the road network in Gauteng. The department is playing an important role in repairing potholes on arterial routes within townships in the Emfuleni municipality as part of the interventions announced recently by the Premier. All these developments point to the fact that the Department of Roads and Transport is hard at work in delivering on its mandate and is increasingly displaying signs of excellent performance. It demonstrates that public money voted in favour of the Department is being well-spent in the public interest.           

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Madam Speaker

Today I would like to announce that I have requested the South African Geographical Names Committee, through the Gauteng Geographical Names Committee, to initiate the process of public consultations for the naming of eight major arterial routes in our province, namely, the proposed PWV15; N14; R23; R28; R55, R59, R80 and R553. The Preamble to our Constitution calls upon us to “recognise the injustices of our past; honour those who suffered for justice and freedom in our land; respect those who have worked to develop our country; and believe that South Africa belongs to all who live in it, united in our diversity.” In giving practical effect to this call in the preamble, it is necessary to put in place a transparent process to redress the inequalities of the past and to begin the process of changing the ‘identity’ of our roads and transport infrastructure to reflect the rich political, cultural and linguistic diversity of our province. 

Ordinarily, our provincial roads have technical characterisation and recognition symbols. But some roads do have names of political leaders of the apartheid era. The time has come for the department to play a more conscious role in recognising the historical contributions of leading women and men in the struggle for national liberation and freedom. Major Gauteng roads should be named after significant leaders who contributed to the freedom of our country and its people, regardless of their race or organisational association. In determining names for our provincial roads, we should be mindful that a person so honoured must be a deceased person and not be someone of questionable integrity. 

Madam Speaker 

In introducing the Budget for Vote 9: Transport, the House should note that in the current tough economic and fiscal climate, the allocated budget for the Department is R7.7 billion. This is apportioned to five key programmes, namely, Administration (R359 million); Transport Infrastructure (R2.5 billion); Transport Operations (R2.5 billion); Transport Regulations (R300 million); and Gautrain (R1.9 billion). Every rand that will be spent from this budget should contribute to making life more liveable and inclusive for citizens in the Gauteng City Region. 

On the revenue side the Department remains the major source of income for Provincial Treasury. In the past financial year, R3.7 billion was collected from motor vehicle license and other transport fees. This reflects the greater efficiency of our revenue collection systems as well as an increase in the number of vehicles in our province, which currently stands at 4.5 million vehicles. 

With this Budget the Roads Directorate will be upgrading and rehabilitating the following major roads:

  • K148 in the Eastern Corridor which intersects with the N3 and supports the proposed Tambo -Springs Logistics Hub; 
  • Doubling of K69 (Solomon Mahlangu Drive) from the N4 to K54 in Mamelodi in the Northern Corridor;
  • P249/1- Phase 2 in the Northern Corridor which links Midrand to the North West Province; 
  • R55 from Woodmead Drive to Kyalami;
  • K60 along Waterfall City in the Central and Eastern Corridors;
  • the dualisation of R82 in the Southern Corridor between Johannesburg and Vereeniging; and 
  • the P88/1 between Sebokeng and Westonaria in the Western Corridor. 

The Gauteng City Region, which accounts for the largest share of our country’s economic activity, needs a good quality road network to support its sustainable socio-economic growth and development strategy. We must build freeways as identified in the 25-year Integrated Transport Master Plan (ITMP25). In this regard, I must report that the department has initiated a process to procure a service provider to do detailed designs for the PWV15. This will be the first new freeway Gauteng will be building in 40 years. However, a prospective bidder has instituted a challenge to the open procurement process and the matter is regrettably subject to a Court review process. I am hopeful that it will be resolved as soon as possible so that the Department can proceed with this strategic road construction project.  

The planned construction of the PWV15 will represent a major leap forward for our province. It will support the development of the Aerotropolis and the Tambo-Springs Freight Hub. It will certainly ease traffic congestion at the Gilloolys and Geldenhuys interchanges. And it will stimulate economic growth and greater residential and business densification along its route. The Department is in discussions with Provincial Treasury to secure adequate funding for this major road construction project, which may include private sector financing.

Sinkhole formations on the provincial road network is placing the Department’s maintenance budget under pressure due to their unpredictability and the huge costs entailed in restoring the damaged roads. Depending on the nature and size of a sinkhole, fixing it could cost over R40 million at a time. The Department is currently awaiting a final technical report on the R55 sinkhole and is exploring alternative methodologies to expedite repairs to this road. 

With regard to other transport infrastructure, I am pleased to report that the Kagiso DLTC is to be officially opened shortly. I have already reported to the House that after a prolonged delay, there is good progress now on the Vereeniging Intermodal facility. The Roodepoort taxi rank is completed and has been handed over to the City of Johannesburg. It is being fully utilised by the taxi industry in the area.

Yesterday, I visited Sebokeng to assess progress on the construction of the DLTC there, and I can report that there is satisfactory progress. I must, however, acknowledge that the Department is experiencing serious challenges with the contractor on the R511. We are led to believe that Lubbe Construction has applied for business rescue and consequently has not done any significant work on site for the past three months. The Department has placed the contractor on terms and if there is no satisfactory resolution to this impasse by the end of this month, the Department will have to take more drastic action to address the matter.       

Madam Speaker

Rail is the backbone of our public transport system. The Gautrain and Metrorail remain the core providers of rail services to hundreds of thousands of commuters. Closer co-operation between the Gauteng Management Agency and PRASA is critical to ensure that we move towards one, efficient commuter rail system, which is the mode of choice for all commuters. Best practice is likely to emerge from such collaboration and it would eventually lead to joint planning and operations for the greater good of commuters. 

Passenger demand for the Gautrain has exceeded projections, especially in the peak periods and has resulted in overcrowding and stifled demand. It is therefore necessary to procure more trains and invest in the system so that these trains can run efficiently over the next 10 years. The GMA has developed a business case within existing funding parameters for Gautrain and has partnered with the DBSA to arrange for the financing for 12 new trains. A competitive procurement process was followed and three pre-qualified bidders have been selected as suitable to participate in the Request-for-Proposal (RFP) stage.

It is expected that they will submit their bids on 15 August 2018, and an announcement of the preferred bidder will be made thereafter. The capital expenditure for additional rolling stock and supporting infrastructure is expected to sustain about 10 000 jobs in Gauteng. The total government revenue is expected to increase by an estimated R542 million in nominal terms between 2019 and 2023. 

The GMA has completed the feasibility study for the extension to the existing Gautrain network. The study was submitted to National Treasury for approval in April 2017. Since then the GMA, Provincial and National Treasury have had engagements to discuss the project in detail. A decision on the awarding of Treasury Authorisation (TA 1) for the project is expected in the latter half of 2018. Once approval has been granted the planning and Environmental Impact Assessment of Phase 1 will begin in earnest. The Gautrain II project has the capacity to create more than 211 000 direct jobs and R1.6 billion is estimated as potential spend on skills development, enterprise development and supplier development. 

The ITMP25 identified the PRASA modernisation programme as a key element in developing and extending the rail network into a modern rail transport system in Gauteng that meets the needs of passengers.  I am pleased to report that the Gibela rail manufacturing factory is up and running, and will be officially opened shortly. Gibela has to supply 3600 new Metrorail coaches at a cost of R59 billion over a 10-year period ending in 2025. In practical terms this means that the new Metrorial trains are now being manufactured locally. The Metrorail rolling stock renewal programme is expected to create 33 000 direct and indirect jobs over the next decade. 
 
The integration of public transport to provide commuters with origin to destination services are critical to achieve our goal of a reliable, accessible, affordable and safe transport system. A critical component of this system is the development of Bus Rapid Transit services in Johannesburg, Tshwane and Ekurhuleni.

I must register my grave concern over the slow pace of implementation of the BRT systems in all three metropolitan municipalities. The implementation timelines are continuously shifting further in time and the ridership levels are not increasing. The on-going delays in launching the new phases of the system and the low ridership must be attended to as a matter of urgency. In this regard, we have established a joint working group with the relevant municipalities and the national Department of Transport to ensure that the pace of implementation is sped up and the ridership increased.   

The subsidised bus contracts are currently being reviewed. The Department can report that Intergovernmental Authorisation Agreements are in place with the municipalities of Sedibeng, Johannesburg, Tshwane and Ekurhuleni to process the various contracting responsibilities in terms of the National Land Transport Act. Five contracts in Mamelodi and Sedibeng have been placed on an open tender process. These bids have been assessed by the probity auditors and the Department will decide on the matter shortly. At this point I would like to thank the City of Tshwane and the relevant taxi industry for facilitating continuity of bus services in Mamelodi. Also, discussions are underway with the Northwest Transport Investment Entity to process contracts it has with the department.

The development of the Aerotropolis is back on track. In March 2018, Mayor Masina announced that the City of Ekurhuleni approved the Aerotropolis Master Plan and that work has started in earnest to ensure the roll-out of the Plan. The MMC for Finance and Economic Development indicated last month that the city has set aside R561 million in support of the Aerotropolis and a further R1.9 billion over the medium-term to consolidate the city’s strategic location as an airport city. It has also approved the by-laws to establish an Economic Development Agency, which will be responsible for the implementation of the Aerotropolis Master Plan.  

Our economy depends on the efficient movement of freight. A central component of our freight strategy is the development of rail-based freight hubs located on the periphery of the urban core in our province. To this end, the Department, in collaboration with Transnet, the City of Ekurhuleni and the private sector, is responsible for the co-ordination of the Tambo Springs Logistics Hub. Transnet has prioritised this hub for implementation by 2019. To date, the process to appoint a private company to act as the developer of the Inland Container Terminal is at an advanced stage. It is expected that the final selection and announcement of the preferred bidder will be done by the new Transnet Board by September 2018. It is anticipated that the entire development will create approximately 100 000 direct and indirect jobs.

As part of its adoption of new technologies and international partnerships, the Department, in collaboration with Transnet, municipalities and academic institutions, developed the Green Logistics Indicator System, which seeks to improve the movement of freight in the province.

This forms part of a wider project agreed upon in the Joint Declaration of Intent that was signed in February 2016, by the Department and the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety to improve freight mobility in the province.  The second phase of the GLIX indicator project is currently underway as the Department has signed a MOU with Transnet on the sharing of data and information on transportation and its impact on the movement of freight and economic development in the province.  
Madam Speaker

As the Fourth Industrial Revolution unfolds the future of transport and mobility will have to be reconceptualised in the light of technological innovations and changes. Electric vehicles, autonomous or driverless cars, drone taxi services, drone-like motor cycles for traffic officers and the hyperloop are all part of the future of transport and mobility. As part of our planning for a technological future, the National Land Transport Act Amendment Bill that was approved by the National Assembly, and which is now with the NCOP, accommodates electronic hailing services. This means that transport network companies can be regulated within the new legislative framework. Equally welcome is the recent media report that a new App has been launched for conventional metered taxi operators.    

The launch in April this year of the Department’s “Gauteng on the Move” App fits in with the modernisation agenda of this administration. It provides commuters with fares, and origin and destination travel information, covering the Gautrain, Metrobus, A re Yeng, Rea Vaya, Metrorail, Gautrain Bus Services, the Johannesburg City Sightseeing Bus, Tshwane Bus Services and minibus taxi services. The App is to be upgraded soon to provide the timetables and fares of the subsidised bus contract services. The “Gauteng on the Move” App maps all taxi ranks, train stations, bus stations and popular tourist attractions. 
 
The Department is in the process of developing another App through which motorists can report potholes on the provincial road network. The App should enable the Department to respond timeously to repairing potholes and guide the scheduled work programmes of the regional maintenance and inspection teams. On our frontline services at the DLTCs, the Department will shortly be introducing online booking for learners’ licenses, drivers’ licenses as well as the online renewal of motor vehicles licenses.

The Department is working closely with the Road Traffic Management Corporation to pilot these online pre-booking services. The DLTCs in Tshwane are piloting the online renewal of driving license cards, and initial results indicate that it reduces the frustration of clients queueing for long hours at the DLTCs. This service also makes it easy for optometrists to upload eye test certificates onto the e-natis system. The benefits of these online services will reduce the possibilities for corrupt practices at frontline services at the DLTCs.
 
Madam Speaker

The g-Fleet’s turnaround strategy is on track to ensure that it provides effective, efficient and client focussed fleet services to all spheres of government. It continues to make sustainable investments in renewing its fleet as well as building its maintenance capacity to repair vehicles in the shortest time.

Key to its turnaround strategy is to ensure that its management and leadership is able to lead the organisation within a Fourth Industrial Revolution economy. Its second phase infrastructure programme will cater for the new administration building; the renovation of the panel-beating building, and the renovation of its wellness centre. 

In conclusion, I would like to thank the Head of Department, Mr Ronald Swartz; the Acting CEO of g-FleeT, Ms Noxolo Maninjwa, and the CEO of Gautrain, Mr Jack van der Merwe and all staff members for their sterling contribution and commitment to the Department.

My thanks to the new Chairperson of the Portfolio Committee, Mr Mafika Mgcina, and the members of the Portfolio Committee for their vigorous and meticulous oversight of the Department and for their valuable recommendations to further improve our performance. Finally, I’d like to thank all the transport stakeholders in government and the private sector for their support in helping to build the transport system in the Gauteng City Region. Our achievements as a Department are part of your collective effort.

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