Date: 12/07/2004
Source: Ministry of Transport
Title: J Radebe: South African Transport Conference
SOUTH AFRICAN TRANSPORT CONFERENCE OPENING ADDRESS JEFF RADEBE, MP,
MINISTER OF TRANSPORT, Pretoria, 12 July 2004
The underlying purpose of any transport system is to move people
and goods efficiently, as cheaply as possible, and safely across or
through different mediums such as air, land and sea. These days
most of these mediums are already quite saturated and congested,
particularly those on land. In other words, the primary task facing
transport systems is the need to accommodate growing demands
through population growth and migration, urban development and
increased capacity in trade and commodity flows within limited
boundaries. Thus environment and spatial issues emerge as crucial
components of all transport planning and implementation.
The renovation and upgrading of our South African transport system
is constrained by inadequate historical investment in
infrastructure, as well as by the spatial legacies of apartheid
planning and under-development, including a shortage of sufficient
skills within government and the private sector that would allow
the innovation within our country's transport sector to be more
effective in its application. Alongside these major constraints,
however, are a number of opportunities that should help move us
forward. These opportunities include a proud history of engineering
and innovation that requires major support from government and the
private sectors. There is also the awareness that our
infrastructure and operating and management systems are not up to
scratch and that we face the danger of falling even further behind
the general economic development that we have experienced since
South Africa returned to the community of nations as a respected
and responsible trading partner, investment destination and place
to visit. However, rather than bewail the problems that exist in
our transport system, we should all take these as challenges to be
overcome, and in this way, transform even the way that we look at
the issues.
The Conference programme provides some flavour to what I want to
say this morning. You have managed to balance a number of very
technical and engineering-specific subjects alongside more general
policy considerations. Scattered throughout are a number of papers
that deal with specific case studies of regional developments or of
individual projects that cover the transport sector in all its
intricacy. I believe that organisers and participants alike can be
proud of the expertise, experience and enthusiasm that this
Conference has brought together, and I look forward to any
conclusions and recommendations that might emerge from your
proceedings.
I am not going to attempt an overview of Government's policies on
each and every item on your busy agenda. I prefer, as this is an
opening address, to give you a sense of where Government is taking
transport and the role it perceives for the transport community in
South Africa and beyond our borders. But first allow me to reflect
ever so briefly on where we have come from.
The Department of Transport recently published a brief overview of
transport's progress over the past decade, the first ten years of
democracy in our country. A primary success I would suggest is the
compilation of detailed policy and strategy statements and various
White Papers that laid the foundation for the basic legislative
framework that allows for efficient and effective planning and
implementation. These policy frameworks have allowed us as
government to steadily increase the amount of funding for transport
infrastructure initiatives in particular over the past few years.
Already we are seeing the benefits of such funding and I suggest
that as we review our budgets over the next few years, we will see
more targeted spending through increased funding for transport
related infrastructure, safety and operations.
Across all sectors, there has been significant investment in
airport upgrading and development including the R706m Johannesburg
International project, Cape Town's R118 million upgrade, Durban's
R110million and other projects in airports in places like Port
Elizabeth and East London. Government contributed some R884million
for the remodelling and refurbishment of rail commuter stations,
whilst the private sector has provided investment to the tune of
about R1, 6 billion in more than 120 projects on land and
properties adjacent to and surrounding rail commuter
stations.
The ports and harbours have witnessed the construction of new
terminals, perhaps the most notable of which are the specialised
facilities for motor-vehicle movements at Durban and East London,
and of course the Coega development is making waves in the Eastern
Cape and will have an impact far inland as well when it is
complete. Road safety has been enhanced through the reorganisation
of the Arrive Alive campaign and the procurement of new
technological solutions.
By any standards, these are significant steps in what is going to
be long journey to eradicate past under-investment, maintenance
backlogs and move towards developing a sustainable transport system
geared to cope with ever-expanding demands. But laws and strategy
statements by themselves do not simply improve how the transport
system operates and functions. People are needed for that; and most
often it is people interacting with various technological and
engineering responses that advance the system. I am acutely aware
that the National Land Transport Transition Act of 2000 has been
implemented unevenly across the various government jurisdictions,
and that capacity issues still bedevil many of our attempts to
improve the transport and logistics network in our country. More
attention needs to be given to the work of the Transport Education
and Training Authority to ensure that it provides adequate training
to people in sufficient numbers to create the critical mass of
skilled personnel available to the transport community generally.
Simply filling gaps, or indeed simply trying to keep pace with the
loss of skills across the sector is not good enough and will prove
to be a wasted effort in the long run if we do not drive the
training agenda with greater vigour. So far, we have identified 8
components of the transport community for special attention -
these, as you well know, include aerospace, maritime, freight
handling, forwarding and clearing, road freight and road passenger.
It is clear that we will need to expand our work in all these
areas, as well as identify more areas for attention.
I am quite delighted that a number of the participants at this
Conference are themselves students who bring their youth and
enthusiasm to the transport sector generally. Government is pleased
to note that many private sector companies have themselves taken on
the task of providing additional training and resources to help
overcome the horrors of our Bantu education past. These initiatives
complement, and in many instances actually go beyond government-led
initiatives, and are clear indications that the transport and
transport-related community is committed to the transformation of
the sector generally.
As we all know, the transport portfolio spreads responsibilities
and allocates authority to all three spheres of government in South
Africa. At one level, this dispersion of responsibilities has led
to some confusion over which sphere should take the lead in certain
instances, and, probably more critical, where the buck ultimately
stops. The confusion has been most readily seen, for example, in
the rather outdated road classification system which, fortunately,
is under review at all levels, and I would suggest that we need to
align our road classification system with the imperatives of
development in our country.
This Conference comes just a few weeks too early for any major
announcements that will boost the transport community. At the end
of the month I am hoping to release an analysis of transport use,
particularly by commuters across the length and breadth of our
country. In this regard it is apt that the paper on preliminary
results of the survey prepared for this conference has been
withdrawn. It is better to deal with such an important issue in its
totality, rather than in an ad hoc manner. Nonetheless, we can say
that the survey provides quite an eye-opener for policy makers and
strategists alike, and I hope it will go a long way to help build a
more coordinated approach to transport issues across all spheres of
government.
Towards the end of the year, and staggered through the last
quarter, a number of other plans will be released as well. These
include the infrastructure investment plans for state-owned
enterprises and agencies. The transport sector will of necessity
feature strongly through Transnet and its divisions. ACSA likewise
is re-examining its budgets for the forthcoming period and we have
already released some details of how they have re-jigged funding to
meet the tremendous boost provided by the 2010 FIFA World
Cup.
At a policy level, though, we are steaming ahead to develop an
integrated transport system through the development of new
infrastructure where necessary and where possible, through
upgrading and realigning existing infrastructure, and through
developing innovative means to ensure its maintenance and longevity
through adequate financing mechanisms and the use of labour or
employment intensive methods of construction. Thus, we can look
forward to a great deal of activity in our rail and road sectors,
including new investment in important development corridors that
are easily identified simply by looking at an economic map of the
country. This will be accompanied by the identification and
encouragement of new corridors in more remote areas of the country,
and the growth of more local and regional economies through the
establishment of ribs and spines such as rural access roads, more
effective use of rail and major road routes and so on.
I notice that both the Amadiba Road and the Kei Rail Project are
part of your conference agenda. Both of these projects provide us
with splendid examples of what can be done with a little bit of
creative thought that derives from a people-cantered approach to
development issues.
The driving force behind these infrastructure initiatives is of
course the need to develop a seamless logistics system, and one
that is characterised by an efficient flow of freight and cargo
that promotes rather than undermines our economy's global
competitiveness. It is a matter of great concern that the poor
performance of the transport system across all modes is imposing
huge costs on business activity and consumers alike in South
Africa. It is necessary to restructure the transport system
generally to make sure that logistics, or the lack thereof, does
not act as a restraint on economic growth, employment and
sustainable development. Fortunately, a great deal of work has
already been done to identify the root causes of much of the
problem and solutions have been identified and now need firm and
swift implementation.
Just to give you an indication of how poor transport systems impact
on economies, let me refer to UNCTAD's 2003 Review of Maritime
Transport. They found that in 2001, the total freight costs as a
proportion of import value of goods for developing countries in
Africa, was 12.65%, compared to an average of 8.7% for developing
countries elsewhere in the world. Land-locked countries in Africa
have to endure costs of some 20.69%, whilst the average -cost for
sub-Saharan Africa, excluding South Africa, was 13.84%. The report
also found that non-distance related costs such as port tariffs and
border post charges ranged between 12 and 40% of the total costs of
inland transport. The cost to the SADC region of border post delays
was estimated at some USD 48 million annually. Clearly, something
has to be done, and done fast if NEPAD has any chance of
success.
Another set of realities needs to be taken into account as well as
we develop our integrated and multimodal approach to the transport
system. These relate to the division of labour that exists between
different modes, between road and rail on the one hand for example.
The importance of an adequate road system cannot be underestimated.
In South Africa for example more than three times the amount of
freight is carried on road compared to rail.
Across Africa a similar picture emerges though with some notable
exceptions where navigable waterways feature more prominently than
both road and rail. Essentially, the continent shares a paved road
network that is dispersed, generally is not well-maintained, and is
made all the more impossible by the common problems of overloading,
concentrations of heavy vehicles, unroadworthy vehicles and so on.
Whereas policy and law enforcement are of course critically
important, under-investment remains a central issue. But we also
need to move away from debates and discussions that tend to isolate
individual modes, and concentrate more on issues of appropriate
use, their inter-relationship and so on.
Another area of major concern and focus that will become clearer by
September or so is the public transport question. South Africa's
citizens require an effective, efficient, safe, reliable and
coordinated public transport system that covers urban and rural
areas. Currently, the entire public transport system is under
review, with a lot of time going into looking at the subsidy
system.
Subsidies in the public transport system are nothing less than
government interventions to foster equality of access to transport
through the affordability of basic services in socio-economically
depressed areas. Over the years is has become quite clear that
there are many instances where the application of some subsidies in
the bus and rail sectors have not had the results we
intended.
At the same time, the role of the minibus taxi and the existence of
the minibus taxi commuter must also be accommodated in any coherent
public transport system, including its subsidy element.
The supply of public transport is the responsibility of provinces
and local authorities. We need to develop a system with uniform
standards but which take into account whatever peculiarities and
special needs the local areas have. As we struggle to correct the
spatial urban imbalances created by separate development and
apartheid where workers normally live many, many miles from their
places of work or indeed from where they can seek work and
employment, we must accept that the urgency and form that our
public transport system must take will have some unique
patterns.
As far as improving public transport services, three initiatives
stand out. The first is the taxi recapitalisation process that now
awaits negotiation with preferred bidders around affordability to
government, profitability to taxi-owners/drivers and of course to
commuters. The second is the proposal to eradicate the
fragmentation of the institutional framework that governs SARCC,
Metrorail and Shosholoza Meyl through the combination of these
three services to provide a streamlined all-inclusive rail commuter
and long-distance passenger service. Once again, this is not a
simple exercise and requires inputs from all stakeholders,
including organised labour. The third important element is a
sustainable rural public transport platform. Most of the provinces
have done some fine work to incorporate this issue in their rural
transport development programmes, and we have already seen some
progress in areas where new rural access roads have been built
where public transport has emerged to alleviate some of the hassles
of travel in remote areas.
This brings me to another interesting area of the transport sector,
namely the impact of increased access to and from various areas.
Generally, we tend to concentrate on how greater access for people
and the transport of freight is good for local economies, providing
links to the outside world, and improving social service delivery
and so on. However, we must also consider the important link
between transport systems and the migration of health hazards, and
work out suitable measures to monitor, assess and counteract such
problems. As we know, HIV and AIDS are of great concern to the
long-distancing trucking community and education and prevention
steps are in place that need to be strengthened.
Similarly, the outbreak of SARS in recent times emphasised once
again how international travel has become a potential conduit for
life-threatening diseases. What seems to be less appreciated is the
manner in which certain policy decisions can have a negative impact
through the encouragement of wholly unforeseen circumstances. My
interest in this aspect of the transport/health matrix was peaked
by the experience of the USA in the 1970s. At that time, the USA
imported used tyres from Asia, mainly Japan and Taiwan where the
practice of re-treading or recapping is illegal. The surplus of
worn tyres in these countries was successfully exported to the USA,
and specifically to Houston, Texas. To cut a long story short, old
tyres are an ideal habitat for certain species of mosquitoes that
thrive in the almost inevitable build up of water deposits inside
the old tyres. During the 1980s, the larvae of one particularly
aggressive mosquito made the long trip to the US in one batch of
these tyres, and rapidly spread through many areas of the USA where
its discovery in 1983 spread some alarm among health authorities.
The moral of the story is that as we open up and improve our own
transport systems across the continent and within our own country
we must remember that many parts of remain infested with insect
borne diseases such as malaria, yellow fever, dengue fever, West
Nile fever, and various types of encephalitis. Anyone who has
travelled in Zambia and other central African countries will know
the hazards of the tse-tse fly and the precautions taken en route
against it. More people travelling, more cargo being transported,
along more and more routes allow for the possibility of more vermin
and nasty bugs to travel along too. May I be so bold as to suggest
that a separate session on these issues be included in the
programme for next year's conference as I am unaware of any major
discussions on these points in our country.
Finally, let me turn briefly to the question of South Africa's role
in African transport infrastructure and system development. Our
resources are well-known and appreciated across the continent. For
a variety of reasons I do not need to go into, our country's
transport infrastructure system dwarfs much of the sub-Saharan
area. For example, 91% or sub-Saharan African or 71% of African
rail freight by volume is carried on the South African rail system,
where our fleet represents 74% of the sub-Saharan and 62% of the
African rail freight fleet.
South Africa and Egypt share the largest and busiest container
ports on the continent. However, the transport system in Africa,
particularly road, rail and rivers and lakes, is diverse. All of us
need to improve our infrastructure through whatever means possible.
Many countries have chosen concession architectures, public-private
partnerships and even outright privatisation across rail, road,
ports and airline and airports. Others rely on donor funding to
boost domestic funding of key strategic routes.
South Africa's role is to support and participate in initiatives
that will develop new systems for the encouragement of economic and
social development generally. The Transport Department has entered
into a number of country-to-country agreements that combine the
resources of various African countries to help build infrastructure
across the region and the continent as a whole.
These responsibilities extend into the search and rescue arena,
port development in Ghana, rail concessions, and the extension of
information and communication technologies. In the aviation field,
it is my hope that South Africa's role in the presidency of AFCAC
will help to implement more speedily the requirements of the 13
Yamassoukro Declaration and other important initiatives to open our
skies and to improve safety and security in Africa's skies. This is
important work and we believe that whilst we have a great deal to
offer the continent, the simple fact remains that we also have a
great deal to learn from them as many countries have longer
experience in a range of transport related areas.
In conclusion, I have merely outlined a number of areas and themes
that have emerged recently as priority areas for action. The list
is certainly not exhaustive, and I am pleased that members of the
Department will address conference sessions on a number of specific
items where they will be able to elaborate on some of the issues.
Our activity is ongoing, and in the coming months we can look
forward to the passage through Parliament of the Ports Bill, the
finalisation of the public transport review, the infrastructure
investment plans, ongoing work towards integrating planning around
the 2010 World Cup to make sure that useful infrastructure lasts
longer than the event itself, the development of a maritime policy
for South Africa by March next year, and so on.
In the meantime, I wish your conference every success, and look
forward to a long and healthy collaboration between government and
this important transport forum. My door is open to the transport
community, and I will be delighted to meet as many of you as
possible during the course of my time as Minister of
Transport.
I thank you.
Issued by: Ministry of Transport
12 July 2004
Source: Department of Transport (http://www.transport.gov.za)
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