Source: The Department of Transport
Title: SA: Ndebele: Budget vote speech by the Minister of Transport, in the National Council of Provinces
Honourable Chairperson Honourable Members
Members of the Transport Family Ladies and Gentlemen
“There is no doubt that infrastructure in general and specifically transport infrastructure plays a role in the economic development, as well as in social development of a country.” (Weisbrod 1997, Chapman P et al 2002) (UNCDF).
Furthermore, Ferreira and Khatami (1966) argue that investment in social and economic infrastructure will play an important role in increasing the productivity of labour and business, equally providing a platform for job creation.
President Zuma, in his 2011 State of the Nation address, highlighted that despite the economic growth in the past 10 years, poverty and unemployment still persists.
“To address these concerns, we have declared 2011 a year of job creation through meaningful economic transformation and inclusive growth.”(President Zuma in his 2011 State of the Nation).
Honourable Chairperson, Transport and its related infrastructure is a catalyst for economic growth and direct and indirect job creation in South Africa. The provision of reliable, sustainable and safe transportation of people and goods from place to place is critical to the transformation of our country.
After decades of established urban planning and development, with rural communities being marginalized and left out in the peripheries, the current changing human settlement patterns and economic challenges call on us to reconnect communities with each other, with economic opportunities and social amenities, to ensure that we develop sustainable communities. To address this challenge will require an integrated and collective effort by all spheres of government, National, Provincial and Local Government.
An effective, safe public transport system will reduce costs and create job opportunities, at the same time increase the quality of life of our communities, a priority of Government.
The tasks before all spheres of government, responsible for the various transport modes are numerous, ranging from budget constraints to ageing transport infrastructure and commuter demands.
Notwithstanding these challenges, government continues to aggressively address the transport sectors needs.
Honourable Chairperson, let me reflect on a few flagship projects and programmes that have been implemented and that will have a positive impact on the transport sector modes.
PROGRAMME AND PROJECTS
The completion of the ultramodern, state-of-the-art Gautrain rapid rail network, link one between Sandton and O R Tambo Airport being opened in June 2010 and the link two from Johannesburg to Pretoria to be opened in June 2011, ushers in a new era in public transportation matching world standards for rapid rail transport. Travelling at 160 km per hour, taking 38 minutes between Johannesburg and Pretoria, will set a benchmark for future such development in South Africa.
The question one now asks is where do we go from here?
SANRAL will continue to implement its mandate to improve, manage and maintain the national road network.
PRASA, having identified the current state of the ageing rolling stock, have embarked on an 18-year new rolling stock acquisition programme. Valued at R 86 billion over 18 years, a total of 718 new train sets will be procured over this period. Of importance is the local content requirement target of 65%, the up skilling of local engineers and the creation of both direct and indirect jobs. This programme will create 100 000 jobs and develop skilled and semi skilled people, within the fields related to the manufacturing and maintenance of the rolling stock. The modernization of our network, with particular interventions in addressing the signaling systems and the rolling stock, are a priority.
In addition to this allocation, an additional R32 billion is allocated over the next 3 years with R19.5 billion ring-fenced for capital spending to upgrade existing infrastructure, signaling systems and rolling stock. This will have a direct positive impact on community safety and comfort.
Other key strategic important projects include:
Durban to Johannesburg Corridor:
Ø A multi-agency structure comprising of Gauteng, Free State and KwaZulu-Natal Provincial Governments, eThekwini Municipality and Johannesburg Municipality as well as the Departments of Trade and Industry and Public Enterprises has been established.
Ø The structure will drive the development of passenger and freight services on the Durban to Johannesburg Corridor. It will also consider improvements to the Durban Port, the future use of the old Durban Airport International Airport site and the Harrismith, Cato Ridge and Johannesburg City Deep logistical hubs.
North - South Corridor:
Ø Our vision is of an Africa that has the transport infrastructure that facilitates the movement of goods and people by road and rail, effectively connecting with our neighbours in the Southern African Region.
The successful implementation of the Rea Vaya Bus Rapid Transit System, currently transporting 30 000 people per day, has been awarded the “Encouragement Award” by the International Association of Public Transport(UIPT) in Dubai in May 2011.
Another achievement of the Rea Vaya Bus Rapid Transit System relates to the Empowerment of the taxi industry. Earlier this year, the taxi industry in Johannesburg became a 66% shareholder of the Rea Vaya Bus Rapid Transit System Company. This constitutes one of the most significant Broad Based Black Economic Empowerment [BBBEE] transactions that our country has seen in the transport sector.
The importance of “just in time road maintenance” by which efficiency is increased and waste decreased, by procurement of materials only as they are needed, require effective monitoring of the road conditions. This will be achieved by the Road Asset Management Systems [RAMS] and introducing the “Know your network” programme, which consist of regional engineers in all provinces monitoring daily road conditions including any possible overnight damage.
Honourable Chairperson, the Department of Transport flagship project - S’hamba Sonke - Moving Together programme, has seen the Department of Transport launch a new roads upgrade and maintenance initiative to fix and upgrade the entire secondary road network of South Africa. The programme will create new opportunities for emerging contractors and jobs across the country. In addition 68 675 jobs, skilled and semi-skilled, will be created through this programme.
This ring-fenced conditional grant will be implemented in the following key areas;
· The rehabilitation of key arterial routes in support of the rural economy through labour-intensive projects;
· Prioritising the use of labour absorptive construction methods;
· Fixing potholes on our roads; and
· Creating access roads to schools and clinics and public social infrastructure.
The S’hamba Sonke programme has been allocated R22 billion for the current MTEF Cycle, with the allocation for 2011/ 2012 being R6.4 billion. Business plans have been received from all province supported by all the MEC’s.
We have agreed further with the MECs that to ensure implementation and monitoring of this programme, by June this year project management units will be in place in all provinces, to effectively manage the S’hamba Sonke Programme.
For the 2011/2012 financial year, the allocations to Provinces are as follows:
Province Budget 2011 / 2012 Job Creation Targets
KwaZulu-Natal R1.2 billion 22 278
Eastern Cape R 1.0 billion 20 736
Mpumalanga R 1.0 billion 8 346
Limpopo R 934 million 4 432
Gauteng R 566 million 3 800
Free State R 447 million 5 693
Western Cape R 411 million 597
Northern Cape R 308 million 741
North West R 501 million 2 142
Total R 6.4 Billion 68 675 jobs
The Minister will report quarterly to Treasury, while the provinces will report to the Department of Transport monthly.
Some of the key projects provinces have targeted in response to the S’HAMBA SONKE Programme framework are as follows:
· Maintenance of the R33 Road between Stoffberg to Belfast (42km) at a cost of R 24 million.
· Upgrade 40km of the White River to Ntsikazi Road at a cost of some R16 million.
· Household routine maintenance engaging 27 contractors for R237 million and attending to 8100 km.
· Fixing access roads at a cost of R60 million.
· Pothole patching project on 220kms of roads at cost of R174 million.
· Reseal on N14 from Krugersdorp to Klieveskraal at a cost of R55.8 million.
· Reseal of Ben Schoeman - Pretoria to the N1 for R10 million.
· Upgrade on P126 (M1) on 8.54km for R11 million.
· Household Road Maintenance - Bathloaros to Maphinik (26km) for R7 million.
· Road Maintenance: Victoria West Calvinia (387km) for R18 million.
· Re-seal of Douglas-Kimberley (18km) for R22 million.
· Overberg regravelling at R43 million.
· Malmesbury to Hopefield reseal for R51 million.
· De Rust to N9 reseal for R54 million.
· Household Contractor programme - approximately R200 million over three years.
· Emerging contractor and consultant development for R500 million over three years.
· Nongoma – Dabhazi – Hlambanyathi - Hlabisa Corridor at R270 million.
· Eshowe – Ntumeni – Kranskop – Vryheid corridor at R2 billion.
South Africa’s road network comprises of 750 000km, 593 000kms of which is gravel network managed by our provinces, metros and municipalities. 154 000 kms is paved and managed across all spheres and 140 000 kms of the network is still to be proclaimed.
Most of our road network has reached its design-life span, hence failure to budget for road maintenance would, in time, cost the country more in the replacement and rebuilding of the network.
Honourable Chairperson, in addition to the projects listed, the Department will continue with our National roads upgrade programme. The following are prioritized projects that will be implemented in 2011 / 2012:
· Mpophoni in Port St Johns at a cost of R27 million, 289 jobs will be created;
· Matheko River Road construction at a cost of R36 million, 163 jobs created; and
· The N1/N2 Winelands Project at a cost of R10 billion with 1 150 jobs.
DECADE OF ACTION OF ROAD SAFETY
On 11 May 2011, South Africa participated in the launch of the United Nations Decade of Action for Road Safety 2011-2020. The Decade of Action Programme seeks to halve road deaths and reduce the carnage on our roads. At least 1.3 million people are killed annually on the world’s roads, 14 000 perish on South Africa’s roads every year. Road deaths affect all of us.
Worldwide, as in South Africa, the Decade of Action commits us to develop and enforce legislation on key risk factors such as;
· Effective managing and monitoring of speed limits.
· Eliminate drunk driving.
· Increasing the use of seatbelts, child restraints and motorcycle helmets as a norm.
Our response to this global call is contained in our multi-pronged programme involving all citizens which seeks to end road deaths. This includes the following interventions:
· Review and implementation of South Africa’s Road Safety Strategy and action plan 2011 – 2020.
· All provinces, district municipalities, local municipalities to report monthly on road accidents indicating the cause factors and the plan to address these cause factors.
· All provinces, districts municipalities, local municipalities to report monthly on the implementation of the National Rolling Enforcement Plan and the findings of the monthly implementation.
· The uniform implementation of the National Rolling Enforcement Plan launched in October 2010 by all provinces seeks to ensure that there is no island of laxity in road traffic enforcement. It was agreed by all that at least 1 million drivers per month, would be stopped and checked to ensure compliance with driver licences and roadworthiness of vehicles. This target would ensure that motorists are checked for compliance with the road traffic regulations.
· The implementation of the First National Traffic Intervention Unit, deployed in high accidents areas and hazardous locations, is complete.
· The introduction of road safety programmes as part of the life skills curriculum, as agreed with my colleague the Minister of Basic Education Ms. Angie Motshega. As an outcome of this intervention, we hope to produce 10 000 new drivers with the appropriate skills. Of importance to note is the willingness of the private sector to sponsor 20 driving school lessons to prepare the learner for the driving test. Within the next 2 months, the Department will be hosting a summit for Driving Schools where this programme will be unpacked.
· Through Community Road Safety Councils launched in the nine provinces, we advocate the “Road Safety is Everybody’s Business” approach. Council members include newly elected municipal councillors, religious leaders, private sector, schools, traditional leaders and government departments.
ROAD TRAFFIC MANAGEMENT CORPORATION (RTMC)
Road safety and traffic management is, according to our constitution, a National, Provincial and Local Government competency. This results in an absence of uniformity in traffic law enforcement. It was with this in mind that the Road Traffic Management Corporation (RTMC) Act was passed by this Parliament in 1999. The RTMC, in terms of Section 3 of the RTMC Act, Act 20 of 1999, was then established. This establishes a legal entity, chaired by the Minister of Transport, with provinces and municipalities as shareholders. Putting the RTMC in order has been one of the urgent tasks facing the transport sector. Currently an acting CEO has been appointed to lead the RTMC, to ensure that the mandate is delivered.
We have stabilized the RTMC and the organization is now positioned to lead our efforts to end road deaths and to create a safe road environment in South Africa and the region.
In order to support the efforts of the provinces in law enforcement, we recently launched the National Traffic Intervention Unit, which will be deployed from time to time to various hazardous locations. Working together, we can end this road carnage and create a safer environment for all our road users.
The implementation of the maritime transport policy, which will address coastal shipping between our country and our neighbours, is a priority. Effectively, this seeks to increase regional trade through integration of activities.
Furthermore, in line with Government objectives of skills development, within the maritime sector a skills development programme for young people will be introduced, in line with the various maritime activities.
South Africa does not own its own vessels; in fact we import transportation costs. The need for South Africa to build up its ship register will provide an opportunity for new entrants to enter into this sector, effectively transforming the sector from its current status.
The review and improvement of the tariff determination framework will continue, so as to ensure effective service delivery within the aviation sector.
Airport infrastructure in Provinces will be supported, with the objective of ensuring the provision of adequate and effective infrastructure to promote air traffic transportation of both passengers and goods.
Current bi-lateral agreements that seek to increase tourism will be reviewed, to ensure that the intervention plans would effectively achieve this.
A further activity that we will engage in is training and development of pilots from previously disadvantaged communities.
Finally, as indicated in the Delivery Agreement for Outcome 6 - An efficient, competitive and responsive economic infrastructure network, the following Outcomes are part of the delivery by the Department:
· Increase the market share of total freight to rail to an annualized 250 million tons from the current 178 million tons by 2014;
· Benchmarking cost of building and maintenance of roads to assess our efficiency and developing an appropriate funding model to ensure adequacy of supply and maintenance;
· Implementation of the approved Road Infrastructure Strategic Framework for South Africa (RISFSA);
· Implementation of the approved Rural Transport Strategy for South Africa;
· Reduction in road fatalities;
· Ring-fencing of road maintenance funds, including construction and maintenance of Rural Roads;
· Development of Integrated Rapid Public Transport Network (IRPTNs) in twelve (12) cities and six (6) rural districts;
· Completion of the Rail Policy and Rail Act;
· Establishment of a Rail Economic Regulator;
· Implementation of the National Freight Logistics Strategy;
· 10% of the identified new investment in rail should be PPP projects;
· Introduce private operators at Branch level (secondary rail network);
· Implement the National Ports Act and create transparent cross-subsidies between port and rail infrastructure; and
· Introduce competition for the management of container terminals.
DEPARTMENTAL ORGANIZATIONAL REVIEW
Honourable Chairperson, noting the importance of the Transport Sector projects and programmes and the role of the various public entities as a fundamental contribution to community social cohesion, my department undertook an organizational review to ensure that we could effectively deliver on our mandate.
The Department of Transport’s key focus areas include improving our road network, public transport, investment in rail infrastructure and services, road safety, maritime and air transport projects. To ensure that the Department delivers on its mandate, an organizational review of the structure was done.
The approved new organizational structure reflects a departmental structure based on modes that will elevate the functions of the Department from being focused on policy development to the coordination of implementation of Transport sector programmes. This organizational structure will further ensure effective monitoring and evaluation of programme outcomes, and provide single point accountability.
I wish to thank the Deputy Minister Mr. Jeremy Cronin for his ongoing partnership and comradeship as we collectively transform the Transport Sector. I thank the Director-General Mr. George Mahlalela and his team for their hard work and dedication.
Furthermore, I would like to thank all the agencies, especially their Chairpersons and CEO’s, for their dedication to the critical role they play in the delivery and implementation of our transport agenda.
Last but not least, warm and sincere thanks to the transport family for your ongoing, tireless effort to ensuring that we keep South Africa on the Move, contributing to a better life for all.
Together, we can do more to move people and goods for economic growth and the development of sustainable communities, at the same time transforming the transport sector. All this we will implement in line with our Government identified priorities and the outcomes that have been agreed upon.
Province Or State