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Department of Transport
Pretoria
January 1996
The Department of Transport has committed itself to a process of reviewing national transport policy to ensure that this policy meets the needs of all our people, within the constraints of our resources and within the changed environment in South Africa.
It is part of the public policy formulation process to consult with all transport stakeholders in South Africa and to address the burning issues which concern you. It is therefore my pleasant duty to place this Green Paper on National Transport Policy before the South African public and to invite you all to respond to its contents. Your responses will enable my Ministry and the Department to formulate broad transport policy for the foreseeable future.
I stress the word "broad" transport policy since the transport function is, in terms of the Interim Constitution, carried out at all three levels of government. Public policy is hierarchical in nature and the policy proposals formulated in this document are intended therefore to provide the overarching framework within which it is hoped other levels of government will develop their specific and more detailed policies. The proposals in this document have been developed in consultation with the provinces.
Transport is an extremely important function in the daily lives of all our citizens and is also of economic significance. The Government of National Unity has recognised transport as one of its five major priority areas for socio-economic development and it is therefore of exceeding importance that you, the public, play a major role in its policy formulation. We are ready to listen to you. It is your democratic right, and indeed duty, to become involved in this policy-making process.
Our new transport policy has to meet the challenges facing transport with dynamic solutions and help unlock the social and economic potential of the country and its citizens. I therefore appeal to you to play your full role in this crucial policy making process.
Minister of Transport
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This Green Paper is an interim product of the transport policy review process which began in January of last year. It is based on extensive consultation. The policy options and proposals address the most critical issues identified by transport stakeholders during this process.
This Green Paper does not as yet represent the government's policy, but is meant as a basis for discussion. It is essential that the public play a major role in the formulation of transport policy.
Persons wishing to submit comments, should write or send a fax to:
Transport Green Paper
Department of Transport
Private Bag X193
Pretoria
0001
Fax (012) 328 5926
e-mail via: gdehlen@csir.co.za
The closing date for submissions is 30th April 1996.
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A Green Paper is a consultative document. It is designed to offer options and to pose questions that need be answered in order for government to formulate policy. A Green Paper is not in itself stated government policy. A White Paper sets out government policy.
A Green Paper is designed to stimulate responses from the public and interested parties. It needs to provide a framework of focused policy issues for discussion which can form an important basis for policy proposals and formulation.
Transport plays a significant role in the social and economic development of any country. In fact, after education it is regarded as the most important catalyst for development. The effectiveness of the role played by transport is to a large extent dictated by the soundness of transport policy and the strategy utilised in implementing the policy.
Public policy cannot be static but must be dynamic in nature . It must at all times be perceptive to the environment within which it operates. Policy therefore needs to be reconsidered and if necessary revised on a continuing basis.
The last major analysis and formulation of transport policy in South Africa took place in the mid 80's. Since then there have been many profound and far reaching changes in the country and the time is opportune for a review of transport policy.
Early in 1995 the Department of Transport embarked on a project to review and revisit transport policy and formulate new policy where it has become necessary to adjust to a changed environment. This policy making process embraces and encourages an approach which, as far as possible, involves all role players and the public at large in determining issues, generating policy options and discussing and accepting policy proposals.
The first phase of the policy process was to set up a steering committee to guide the policy review study but not necessarily to make policy recommendations. The steering committee that was established is fairly inclusive without pretending to be fully representative. It includes people from all key sectors of transport and as far as possible was constituted to involve all interest groups involved in the process.
A working group was established to develop an overarching framework for national transport policy. It formulated a long-term vision and a mission for transport in South Africa.
Six sectoral working groups involving a cross section of the role players in the transport industry were established to analyse issues within specific transport sectors. These working groups each dealt with separate elements of the total transport policy process.
The reports of these separate working groups were submitted to a plenary meeting which involved more than 300 people from across the entire spectrum of transport, and which was held during July 1995. Various public seminars were also held on the specific elements covered by particular working groups and an opportunity was provided for the community as a whole to make their input into the proposals of the working groups and the subsequent reports they produced. The working group addressing the public passenger transport function carried out its activities cognisant of the work of the National Taxi Task Team and their final report has been extensively discussed by, and with, representatives of the Taxi Task Team.
Following the plenary meeting and the various public seminars the working groups, taking cognisance of the input received and the issues and problems identified, produced revised reports with policy proposals to address the issues perceived as being problematic. These revised reports are available from the Department of Transport. Their contents were summarised into a draft Green Paper, which was discussed at a second plenary meeting in February 1996.
The proposals contained in this Green Paper are thus the result of a broad public policy making process. After any further comments have been received from the public at large, policy will be drawn up and published in a White Paper.
Since transport is a multi-faceted function the policy review process has been ddressed through a multi-faceted functional process comprising the following separate elements of transport:
In addition to these separate functions, there is a necessity to formulate policy for Road Traffic management or control, including road safety, and a separate chapter in this Green Paper has been devoted to this issue. Finally, Transport Infrastructure which is common to all the functions and which influences the performance, and is in turn influenced by the requirements of the separate elements, has been identified as a facet for which policy is required.
Whilst the transport policy review process has been subdivided into these separate elements for convenience of analysis, there is a degree of overlap and mutual interaction between them and for this reason this document should be regarded as an holistic entity. The importance of the intermodal relationship between the separate elements of transport is strongly stressed.
Finally it is stressed that in terms of the Interim Constitution the Transport function is carried out at all three levels of government. This Green Paper therefore only addresses broad National Transport Policy. It however provides a framework within which it is hoped the other two levels of government will frame their specific detailed Transport Policies.
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Transport is seldom an end in itself, but usually it is a means to an end. That end is the smooth and efficient interaction that allows society and the economy to assume their preferred form. Because of this derived nature of transport, policies in the transport sector must be outward looking, shaped by the needs of society in general, of passenger and goods customers in particular, and of the economy that transport has to satisfy. It follows from this that the priorities in providing and using the transport system should be consistent with those that have been set for the country as a whole.
South Africa's present transport system reflects the goals, decisions, and investments of the past. These have fashioned the system as it now exists. The country's priorities have changed, and the transport system needs to adapt accordingly. Most succinctly, the new priorities are summed up in the four elements of the Reconstruction and Development Programme, namely meeting basic needs, growing the economy, developing human resources, and democratising the state and society. Accelerated economic growth and international competitiveness are now regarded as high priorities. Transport has a role to play in each of these areas.
Against this background, the challenge for South African transport is to formulate a transport policy and strategy that will build an environment within which the transport industry can be as competitive as possible, and to develop a process which can integrate the different needs of passenger and freight customers, the transport industry, and national objectives.
The vision for South African transport is of a system which will:
"provide safe, reliable, effective, efficient, and fully integrated transport operations and infrastructure which will best meet the needs of freight and passenger customers at improving levels of service and cost in a fashion which supports government strategies for economic and social development whilst being environmentally and economically sustainable".
This transport vision integrates the needs of policy makers and the needs of transport customers, while meeting return on investment criteria. Trade-offs between these needs may have to be made. The three pillars on which the vision is based are:
National policy imperatives
South Africa's transport strategy aims to positively impact on our economic and social development, and will do so by:
supporting the goals of the RDP for sustainable economic growth, economic transformation, meeting basic needs, human resource development, and creating jobs aiming to broaden economic participation in transport service provision, and improve competition within the sector helping build southern Africa's competitiveness by ensuring the region's competitive advantages can be accessed and marketed participating with other sectors in broader policy-making and decisions which affect the demand for transport. More specifically, transport planning will support development corridors, promote land-use densification and efficiency and an integrated regional economy through, amongst others, establishing transport infrastructure and services linking industrial centres and current and future centres of socio-economic activity and growth.
South Africa's export focus will be supported by developing the seamless integration of goods transport into regional global transport patterns.
Customer imperatives
The goal is to move towards a situation where any customers requiring transport for people or goods should be able to access the transport system in ways which satisfy their choice criteria.
The transport system will be developed to serve the needs of different customer groups:
passengers, who could be commuters travelling to work, scholars, long-distance travellers, tourists, or people travelling for personal or private purposes, an persons sending goods, which could be high bulk goods like coal and minerals, manufactured products, perishables, or those goods which have specialised requirements like hazardous materials. The goal is to improve the competitiveness of South Africa's transport infrastructure and operators to better meet the measured needs of these different customer groups, both locally and globally, by either decreasing transport costs for a given level of service, or increasing service for a given level of cost, or where possible, both increasing service and decreasing cost. For passengers this means the cost of transport should represent a declining, and low, percentage of disposable income; while for goods transport costs should represent a declining percentage of total cost of goods sold (for the same level of service).
Overall, the quality, reliability, safety, security and speed of transporting goods and people will be improved.
It is recognised that not all customers needs can be met at the same level of service. Scarce resources will be mobilised to best meet the needs of those passengers and industries who need them most, and which are in the best interests of society. For example, in line with the RDP, greater emphasis in passenger transport will be put on developing integrated mass transit passenger systems and non-motorised transport, rather than on travel by private cars which are already well served.
Customer needs are not static. They evolve in ways driven, in the case of goods transport, by their end customers, by competition, and general economic development. As a builder of infrastructure and a provider of services we understand that responding to customer needs, or planning ahead of customer needs will ensure that the transport system facilitates economic growth, as well as meeting market requirements.
A goal of the transport system is to create a fully integrated transport and information system which permits seamless, efficient, and transparent passenger and freight logistics in South Africa, regionally, and globally. The transport system aims to minimise the constraints to the mobility of passengers and goods, maximising speed and service, while allowing customers the choice of transport mode or combination of transport modes. This demands a flexible transport system and transport planning process which can respond to customer requirements, while providing on-line information to the user to allow choices to be made. It also requires infrastructure to be tailored to the needs of the transport operators and end customers.
A key driver of reducing costs of transport is capacity utilisation. As such, a goal of infrastructure and modal planning will be to maximise capacity utilisation in a development corridor in each mode, and to achieve a level of integration between modes.
Meeting investment criteria
Investment in infrastructure or transport modes should satisfy social, economic, or strategic investment criteria.
Given the long-term nature of investments in transport infrastructure and systems, South Africa must build a strong financial base for the creation, maintenance and upgrading of transport infrastructure. There will be targeted investment to build infrastructure in the right places and of the right kind which serves the needs of the society.
Long-term investment decisions will be based on sound and explicit criteria aimed at maximising the use of scarce resources. These resources are not only financial, but also human and material resources. Investment decisions will be taken against a set of criteria which include lifetime cost, economic, social, and other returns to the country of the investment; returns to the transport system itself; and returns to the customer of the investment decision. Environmental sustainability will also be a key measure in investment decisions. Investments in infrastructure which will not build economic efficiency or where infrastructure is unsustainable will be discouraged. Investments in infrastructure which promote energy efficiency, the least consumption of resources, and the greatest benefit/cost return will be favoured.
Information systems will be developed to provide quality information to aid decisions. For example, the full costs of transport will be determined and benchmarking data will reveal the competitiveness of the transport system.
The transport vision will be achieved through the sum of the actions of key players. A key ingredient to future success will be a vision for transport shared by all the key role players, backed by co-ordinated and integrated planning and decision making.
A strong, focused, professional Department of Transport will play a role in co-ordinating transport policy, and developing and implementing strategies. This it will do in close co-operation with other government departments, other levels of government, and other stakeholders. In particular, there will be closer co-operation between transport and land-use planning.
Inter-modal co-ordination, co-operation and sharing of information will be encouraged in both infrastructure provision and operations to maximise customer service, decrease costs, and maximise social and economic return on investment.
Based on the decision to be made the appropriate government departments, private sector, and consumers will be integrated in the decision-making process through appropriate fora.
The roles and responsibilities of the key stakeholders and service providers will be clearly agreed. This will enable government regulation to be kept to a minimum, while the private sector will be able to build and operate within a competitive environment, be socially and environmentally responsible and self-regulating, and will be world-class transporters and transport service providers.
To provide direction in the context of vision and provide criteria against which to assess current and future recommendations, ten key thrusts have been identified and should be met when addressing strategic issues:
Focus on Customer Needs
Key customer groups should be defined along with an assessment of their individual needs and how these will be met. This should include the degree to which the various needs will be met and reasoning behind the decisions.
Meeting Basic Needs
In accordance with the objectives of the Reconstruction and Development Programme, policy proposals should identify which needs will be addressed and how.
Finance Sources & Return on Investment (ROI)
Investment can be financial and non-financial (e.g. human resources etc.). Financial, legislative, organisational and other investment criteria should be met. Specific measurements should be associated with each, as well as information on who will make the investment, what the expected time horizon is, and sources of finance.
Low Cost for a Given Level of Service
Proposals should identify specific levels of service for defined customer groups and identify the costs associated with meeting those requirements.
Safety, Security & Consumer Protection
Proposals should identify appropriate safety and consumer protection levels demanded by key customers (in context) and how these levels will be met. Additionally, institutions should be identified that will be responsible for ensuring the levels of safety discussed.
Integration
Assurance of modal, spatial, institutional and planning integration is critical to transportation policy. Each of these should be defined with identification of methods to achieve such integration.
Skill & Technology Capabilities
Needed skills and technologies should be identified, including defining current levels and methods for achieving those needed in the future.
Ensuring Competition
Current levels of competition, the platforms on which such competition occurs, the sufficiency or insufficiency of competition, and policies necessary to optimise competition should be identified.
Broaden Participation in the Economy
Proposals should identify how ownership and participation, including jobs, organization, and bidding processes, influence participation in the various transportation sectors and how these will be enhanced through the proposed policies.
Environmental Impact
Potential environmental issues should be outlined and addressed. This should include definition and reasons behind attention or inattention to these concerns, as well as a discussion of the costs and benefits associated with these recommendations.
These represent a set of higher level imperatives which form the basis of the transport policy, although not all are relevant to every sphere of transport policy. Wherever appropriate, the policy proposals in this Green paper have been evaluated to ensure that they address these thrusts. The thrusts also provide common themes against which any new proposals should be tested.
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The structural arrangement of transport bodies is an essential element of transport policy and in turn can significantly affect transport policy proposals. As such institutional integration was identified as one of the key thrusts to be addressed in a review of transport policy. Furthermore the proposals for the institutional framework for transport are also related to, and influence, the proposals for the restructuring of government transport assets.
Public policy making is carried out at various levels of government. The hierarchial nature of public policy leads to central government policy generally being broad in nature and providing the reference framework within which more detailed policy is made at provincial and local authority level. Because of this, transport institutional policy needs to address arrangements for the relationships between various levels of government, as well as the structure for non government, or statutory transport bodies.
Government Bodies
In so far as transport authorities (government bodies) are concerned, the Transport function, in its various horizontal and vertical subdivisions is, in terms of the Interim Constitution, carried out at all three levels of government. For this reason transport policy, in different degrees of detail, will need to be formulated at all these levels. To promote integration and co-ordination of policy and activities between the central and provincial authorities a co-ordinating structure termed "Ministers Committee on Transport" (MINCOM), with its executive arm as the "Committee of Land Transport Officials (COLTO) has been put in place. COLTO has four co-ordinating sub-committees dealing with road matters, land transport, road traffic management and traffic control, respectively.
The task of effecting co-ordination and integration of policy and activities between provincial and local government is a provincial responsibility which should be taken up within each specific Province's transport policy formulation process.
Non Government and Statutory Bodies
Regarding the structure for non government authorities, and particularly in the light of the current arrangement wherein Transnet and other parastatals through its subsidiary groups plays a major role in the provision of services (as well as infrastructure in certain instances), the proposed structural institutional and ownership arrangements for Transport as recommended to Cabinet by a task team on restructuring of State Owned Enterprises are broadly summarised below. A National Framework Agreement is being developed between Government and Labour which will inform the restructuring process.
Transnet
Transnet is a major transport conglomerate, operating some R30 billion of assets, and employing some 150,000 people with an annual turnover of approximately R16 billion. One single issue has fundamentally clouded the structure and management of Transnet. This is the pension fund liability. The liability has made it difficult to think strategically about the role of Transnet as a major transport operator that acts on the economy and has also adversely affected the taking of balanced policy decisions in respect of certain elements of Transport where Transnet is both a monopoly and oligopoly. Government should take decisive action to address the unhealthy dominance of this institution and to tackle the pension fund shortfall problem.
Transnet comprises a multiplicity of businesses. However the proposals from the task team covered in this Green Paper deal only with the primary Transnet businesses and other parastatals which impact on transport policy as a whole.
Spoornet
Spoornet must begin to focus on its core business and concentrate more specifically on its competitive areas. This involves getting out of sections of the freight business which it currently cross subsidises. The second urgent step is the necessity to cut operating costs. This would allow for healthier profits and less need for cross subsidy. A third focus area is to focus more on customer needs using appropriate technology and to continually strive to provide a more reliable and predictable service. The fourth area which requires attention is intermodalism and the need to work co-operatively with road hauliers to provide a seamless service. The aim for Spoornet should be full commercialisation with an eventual possibility of corporatisation. Immediate possibilities for franchising and outsourcing certain parts of the operation should also be investigated.
South African Airways
Global alliances are being formed amongst the world's bigger airlines to capture bigger sections of the market. The world trend towards a more open-skies policy has major implications for SAA. It needs to enter into such alliances and it needs to involve a strategic investor that can contribute capital and technology and management inputs to bolster SAA.
Portnet
It is vital that an independent regulating authority be established to restrain the Ports Company from abusing its monopoly position in terms of tariff levels and service levels. This regulatory authority should have the power to regulate the port sector including the development of new ports in South Africa. This authority should be set up as a function of the Department of Transport.
In addition a National Ports Authority, administering the real estate and hardware of the ports should be established. Whilst the National Port Authority would of necessity provide (on a cost recovery basis) any essential facilities not willingly taken on by private enterprise, private enterprise within the ports should be promoted for the provision of all port services including the operation of cargo handling terminals.
Where the National Port Authority provides facilities (especially cargo handling and terminal facilities) in the absence of private service providers, its Port Authority activities and its operation of Port Terminals should be separated and not fall under the same management.
The independent ports regulating authority mentioned above will regulate the Ports Authority and some aspects of port operations to prevent monopoly abuse. This matter is dealt with in more detail in the section on Maritime Transport.
Petronet
Petronet transports a wide range of petroleum products through a network of 3000 km of high-pressure pipelines. The role of Petronet must be reviewed in terms of the energy, petrochemical and gas policy for South Africa.
Autonet
Autonet is involved in road transport operation in the general cargo, tanker, refrigerated cargo, luxury and semi-luxury inter-city passenger, and coach charter areas. All its operations are in competitive markets, and there is no strategic or economic need for state ownership in this sector. There seems to be little reason for not privatising this section of the business.
South African Rail Commuter Corporation (SARCC)
The main objective of the SARCC is to ensure that rail commuter services are provided in the public interest in South Africa. SARCC also has the responsibility for the management and development of all rail-related properties in and around suburban rail stations and corridors, to enhance the commuting experience and to maximise the income from their properties. The SARCC is structured as a group head office, with two entities forming its main operational functions: Metrorail Services which is currently provided under contract by Spoornet, and Intersite Property Services, which is a wholly-owned subsidiary of the Corporation.
It is recommended that the Metro Division be moved out of Transnet, under the direct control of the SARCC. It is noted however that there is opposition to this, and as a compromise Metro could be located as a division of Transnet allowing for the MD of SARCC to chair Metro. With the devolution of the passenger transport function to provincial government, and the delegation of this function to metropolitan government SARCC will have to deal with provincial and metropolitan governments in future, rather than with central government. It would therefore be sensible for SARCC to regionalise. In view of the high costs of rail infrastructure, it is proposed however that the rail infrastructure be owned by the national government.
Airports Company Limited (ACL)
The Airports Company was formed in 1993 to take over and operate the nine previously State-managed airports. The Company acts to run the airports along commercial lines. The aim has been to put the Company in a position to be privatised (at least partially) within four years. The air transport industry is highly technical and in view of the global open skies policy it is important to set up strategic linkages with global partners. Both technical and planning skills can be provided through strategic linkages and the Airports Company should be allowed to sell off a percentage of its shares to one or more foreign partners. It also recommended that the Apron Services company, currently an SAA subsidiary, should be transferred to the Airports Company, to allow it to provide a more holistic service.
Air Traffic and Navigational Services Company (ATNS)
ATNS was set up in August 1993 and has operated profitably in a regulated environment. It is recommended that ATNS be left to operate in its current form without restructuring although it is clearly necessary to attend to reward and morale if we are to attract and replace world-class senior management technicians.
Sun Air and Transkei Airways Corporation
These are the trading names of airline companies which were owned by the former Bophuthatswana and Transkei Governments respectively. The recommendation in respect of these two airlines is to take them out of government control and privatise them.
South African Roads Board (SARB)
The SARB has a statutory function for the provision of national primary roads throughout the country. The Board consists of twelve members, and does not employ any staff. The Department of Transport is tasked, in terms of the SARB Act, to carry out the executive functions of the SARB. The SARB should be restructured into a roads agency which directly employs its own staff in the same way as the SARCC. It is suggested that the main argument supporting the change to a road agency is a need for a more focused entity dedicated to ensuring the provision and maintenance of the primary road network of approximately 16,000 km including all key economic roads, and not only National Roads.
Bus and Minibus Taxi Services
The structure for the provision of these services is dealt with in the next chapter of this document. In essence the services should be provided by privately owned or fully corporatised municipal and parastatal bus companies and registered private minibus operators, co-operatives or associations.
Regulating and Advisory Bodies
Within the transport sector there exist various regulatory and advisory bodies, for example the Transport Advisory Council (TAC), the National Transport Commission (NTC), an independent Regulating Committee for the Airports Company and the ATNS Company, and Road Transportation Boards. Further to this there is a move being considered for the establishment of a Maritime Safety Agency, an Aviation Safety Agency, and a Roads Agency for primary roads, to allow for more professional focused service provision in these three areas. Policy proposals in respect of some of these are dealt with in the specific function areas in this Green Paper.
It is proposed that the TAC should be disbanded. Experience with the functioning of the TAC during the past few years has been that its cumbersome size has tended to dilute specific interest groups' representations. It is felt that the very important input to the Minister of Transport from private sector interest groups would best be effected through direct representations from the specific groups.
The policy options and proposals formulated by working groups and plenary meetings are set out on the following pages. They are grouped into the following six areas:
Operation and Control
Infrastructure
In each of these areas, its scope is defined, the mission and strategic objectives for the function are set out, the critical issues are identified, and the key policy proposals, and suggestions for their implementation, are put forward.
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The Land Passenger Transport Policy encompasses all forms of public and private passenger movement on land, including the travel modes rail, bus, minibus, taxi, light delivery vehicles, private motor cars, motor cycles and bicycles as well as pedestrian movement.
The Policy covers all passenger movements from short distance urban transport to long distance inter-city and rural transport.
Passenger transport is a generic term used to describe both public and private modes of travel for all purposes, whether commuting or other business-related travel, shopping, tourism, recreational and casual travel.
The Policy includes principles on institutional, administrative, management, (including law enforcement), financial and regulatory components. It encompasses planning including integrated land use/transport and multi-modal planning as well as transport operations. The Policy is intended to provide guiding principles for all functional levels, from national through provincial to local government authorities. Included in the Policy Framework are related fields including human resource development, energy and the environment, transport business development at all scales, information and the marketing of passenger transport policies and services. The Framework also encompasses the safety and security of passenger transport users.
Many of the interim recommendations of the National Taxi Task Team (NTTT) have been incorporated.
Mission
The mission for land passenger transport is guided by the Constitution, the objectives of the RDP and the development policies of the Government of National Unity (GNU). In observing national development principles, the Policy is mindful of the principle of subsidiarity.
In accordance with these guiding principles, the mission of land passenger transport policy is to provide leadership in:
"the promotion of an efficient co-ordinated, integrated, safe, reliable and environmentally friendly land passenger transport system in urban and rural areas to ensure improving levels of mobility and accessibility".
Strategic objectives
The strategic objectives for land passenger transport are to:
Land use and spatial development in support of land passenger transport
Critical issues
Land use and transport development are not integrated owing to a fragmentation of responsibilities for the administration, planning and regulation of the various aspects of land use, infrastructure, operations and regulations. This fragmentation and the legacy of apartheid policies has led to low density development, spatially dislocated settlements and urban sprawl, resulting in inordinately long commuting distances and times, low occupancy levels, high transport costs and low cost recovery. Current housing policy which supports single units on single plots will not achieve the densities required.
Key recommendations
The following spatial development principles will support passenger transport policy:
Implementation of recommendations
Policy actions necessary to provide for urban restructuring (densification) and efficient land use/transport interaction include:
Institutional structures
Critical issues
The Constitution of the RSA, 1993, has devolved the functional areas of public transport, road traffic regulation and roads to provincial legislators in terms of Schedule 6. Furthermore, the Local Government Transition Act, 1993, specifies the powers and duties of Transitional Metropolitan and Local Councils and includes the following functions:
The relationship between the various levels of government needs to be clarified. No comprehensive enabling legislation exists for passenger transport.
Key recommendations
Government has agreed on the principle of subsidiarity and devolution of public passenger transport functions, powers and duties to the lowest appropriate level of government.
A single overarching Passenger Transport Act will be compiled at national level, inter alia, clarifying the relationship between levels of government.
Implementation of recommendations
The Land Passenger Transport Act will specify the allocation and execution of national, provincial and local passenger transport powers.
Central Government
National functions will be as follows:
Provincial Government
Broadly speaking, original financial and executive powers will be given to the lower tier transport authorities, and the provinces will be responsible for co-ordination. Outside metropolitan, regional and local transport areas, the provincial transport department will be fully responsible for ensuring the provision of rural transport infrastructure, facilities and services. In so far as they are consonant with this, Provincial functions and responsibilities include:
A provincial Permit Board will be responsible for the issuing of permits at the request of the provincial passenger transport department or metropolitan passenger transport authorities, services or local councils.
Metropolitan structures
In line with the Constitution of the RSA and the Transitional Local Government Act, land passenger transport powers and functions should be assigned to the lowest competent level of government. This level should take full responsibility for execution and implementation in metropolitan areas. The functions assigned to this level should be executed within the framework of provincial legislation, policy, guidelines, norms and standards and appropriate institutional structures should be established to take responsibility for these functions.
Regional, district and local structures
Services, district and local councils will act as regional or local transport authorities. They will have the same powers and functions as metropolitan authorities to do planning and implementation of infrastructure and operations. Provincial transport departments will be responsible for co-ordination in respect of regional and local structures.
Framework for Provision of Services
Critical issues
There is no statutory requirement to issue permits in terms of passenger transport plans in some cases leading to unbalanced supply, inefficient, uneconomical and unsafe public transport services.
Insufficient and ineffective transport law enforcement leads to non-compliance with the conditions of permits.
Deficit subsidy systems may lead to inefficient services.
Key recommendations
The public passenger transport system in South Africa will be based on regulated competition. This implies competition for a route or network, and not competition on a route or network. The regulation will be in the form of a permission, contract or concession awarded in terms of a passenger transport plan and supported by strict law enforcement. There should be a fundamental shift away from monopolistic situations. There should also be a shift away from systems which target commuters only towards one which benefits all passengers.
Permission is the authority to operate a route or network with no subsidy.
Contract is the authority to operate a route or network at a tendered contract price.
Concession is the authority to operate a rail line or network at an agreed price.
Implementation of key recommendations
The future regulation of land passenger transport in South Africa will be in the form of a permission, awarded in terms of a passenger transport plan and supported by strict law enforcement. Permission is the authority to operate a route or a combination of routes or a network.
Permissions will only be awarded to privately-owned or fully-corporatised municipal and parastatal bus companies and registered minibus operators. All road-based public transport operators should:
Permission could be in the form of a contract awarded by the transport authority to a recognised route entity, co-operative, association or company, which must be a legal person, based on a passenger transport plan.
Rail operations should be based on operating and maintenance concessions, awarded by a transport authority, based on a transport plan with ownership of infrastructure and rolling stock being retained by transport authorities.
The following are the main implications of regulated competition for public transport modes:
Minibus taxis: regulated competition will mean that the minibus taxi industry will have to be formalised and measures introduced to enhance its economic viability. Minibus-taxis could form legally registered businesses, for example, co-operatives or companies, or be registered associations. These will have to operate in terms of permissions to operate on a route or network. Permissions will be granted by the provincial permit board. Minibus-taxi businesses may also compete for the awarding of contracts by transport authorities. As far as possible in terms of the transport plan, the determination of routes/networks will be based on existing operations (including both legal and pirate operators). Financial and technical assistance will be offered to minibus-taxis to enable them to obtain permissions and/or contracts and to improve their economic viability. Minibus-taxi businesses may apply for permissions and/or contracts either on their own or in partnership with bus operators.
Bus operations: all bus operations must either be privately owned legal entities or fully corporatised municipal or parastatal bus companies. They may obtain permission to operate from the provincial permit board. They may also compete for contracts which will be awarded by a transport authority. Existing permits on subsidised routes will have to be translated into interim contracts. Specific efforts should be made to encourage small, medium and micro enterprises (SMMEs) in the bus transport industry.
Rail passenger transport: the national transport authorities will own the rail infrastructure and rolling stock. Operating and maintenance concessions will then be awarded by the transport authorities. The current deficit financing system will have to be abolished and replaced with a concession system which will ensure more efficient and effective use of funds. The transport authorities will determine fares based on a common cost structure and taking account of the fares of other modes.
All transport operators will be encouraged and empowered to bid for contracts and concessions. Contracts will be partitioned into manageable parcels to encourage bids by co-operatives comprising small, medium and micro enterprises (SMMEs).
Funding
Critical issues
Urban and particularly passenger transport have experienced low priority in national funding, apart from the subsidisation of rail and bus services.
Specific funding issues which have arisen include the following:
Key recommendations
To augment funds transferred from central level, fiscal powers for provincial and local governments in respect of their functional responsibilities will be sought.
The application of funds to transport improvements should be self-sustaining and replicable. To encourage this, the users of urban transport facilities should pay for all or most of the costs incurred. Where subsidies are required for welfare considerations or to promote public transport they will be applied through mechanisms which provide incentives for efficiency.
Funding should, however, be channelled through a single authority. This is to ensure that transport operations do not receive funds from more than one authority for offering the same service. A single authority therefore needs to co-ordinate the funds that any one operator receives for rendering passenger services.
Transport authorities, in consultation with communities, must define passenger transport needs at affordable fare levels in order to identify and target recipients of mobility support. Having identified the mobility needs of communities in order to determine the demand for state supported services, transport authorities should define routes and/or networks for tendered contracts to be rendered by competing private, corporatised or co-operatised operators.
Minibus and other SMME transport operators will be encouraged to compete for the award of contracts by transport authorities. Assistance will be offered to disadvantaged operators to enable them to participate in the system.
Transport authorities should apply alternative support mechanisms aimed at cost reduction for current minibus operators.
Implementation of recommendations
Funds must be allocated to authorities on a rational basis. Incentives, in terms of additional funding, should be offered to authorities for promoting public transport investment.
Operational subsidies should be based on tendered contracts. These should be in terms of a rational and common cost structure, allowing for some flexibility for differences in, for example, operating conditions.
Funding of public transport infrastructure and operations should be as follows:
Infrastructure funding for road-based public passenger transport should mainly be the responsibility of metropolitan transport authorities or local authorities with assistance from provincial transport authorities, based on passenger transport plans. The national government could provide incentive or seed funding to such metropolitan transport authorities or local authorities to develop infrastructure in support of public transport over private transport.
Rail infrastructure may be funded primarily by the national government, but may also be funded by a provincial government, having due regard for the financial implications of the operation of rail services.
Funding of operations should be the responsibility of metropolitan transport authorities or local authorities, with own funds as well as funds allocated to them by provincial transport authorities in terms of passenger transport plans.
The Department of Transport, in collaboration with other government departments, will develop mechanisms to assist, especially the minibus-taxi industry.
Human resource development
All levels of government must be responsible for identifying needs in establishing priorities and programmes to build expertise on an ongoing basis.
Education and training facilities must be established to promote human resource development in land passenger transport. Initially, existing education and training facilities must be deployed to meeting training needs. All role players should be given the opportunity to gain access to such facilities.
Small, Medium, and Micro Enterprises
Empowerment of SMMEs through training courses should receive priority.
Integration of SMMEs into the formal public transport system should be addressed pro-actively and in a structured manner by all levels of government.
Special categories of passenger
The approach to passenger transport should shift from the provision of primarily a peak period commuter service to a fully fledged public transport system catering for a wide range of passengers.
The needs of special categories of passengers should be identified by the responsible transport authorities, especially at metropolitan and local level, and these should be addressed in their passenger transport plans.
Energy efficiency and environment
The use of more energy efficient and less pollutant modes of transport must be promoted.
A greater energy awareness should be fostered in both planners and users of the land passenger through public awareness programmes, differential fuel prices, etc. In this regard, close co-operation between the Department of Mineral and Energy Affairs and the Department of Transport is essential.
The use of more energy efficient technologies in transport must be promoted through incentives/disincentives.
Comprehensive integrated planning
It is essential for public passenger transport planning to be carried out in an integrated fashion covering all modes. This planning should be done at as low a level as possible and by the relevant transport authority. Independent planning by modal operators, such as the rail mode, must be discouraged since the passenger transport plan must be holistic and cover all modes.
The planning endeavour should, at the least, address the strategic objectives set out above.
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The Land Freight function embraces both domestic and international land freight transport.
Domestic issues include land freight operations, modal capacity, law enforcement, infrastructure costs and administration, whilst international issues focus on the need for harmonisation of technical aspects and the interface with organisations, governments and groups of governments.
The principal areas include:
Some of these areas overlap with other policy areas addressed in this Green Paper. The more detailed issues involved in each of these principal areas are:
Land freight transport operations
Modal capacity
Law enforcement on the roads
Equitable distribution of infrastructure costs
Administration and institutional aspects
International relationships
Mission
The mission for land freight transport is:
to provide safe, reliable, effective, efficient and fully integrated transport operations and infrastructure which best meets the needs of freight customers at improving levels of service and cost in a fashion which supports government strategies for economic and social development while being environmentally and economically sustainable.
Strategic Objectives
The strategic objectives for land freight transport are to:
Allow and encourage seamless intermodal services
Maintain and develop the land freight transportation system, and prioritise in terms of sustainable economic and development needs
Find a practical and reasonable solution that leads to an equitable distribution of infrastructure capital, operating and maintenance costs.
Promote a strong, diverse, efficient and competitive transport industry within the limits of sustainable transport infrastructure
Promote environmental protection and resource conservation, with specific reference to all aspects of transporting hazardous materials and goods
Enhance the quality of freight transport services by providing transport customers with a safe, secure, reliable and cost-competitive system
Advance human resource development and expand participation in the freight industry through the creation and growth of entrepreneurial opportunities, training and skills development
The existing policy of economic deregulation of land freight transport is reaffirmed, with continued regulation in respect of safety matters.
Infrastructure capital, operating and maintenance costs
Critical Issues:
Disputes exist between the modes regarding equity in the recovery of infrastructure provision, operation, and maintenance costs.
A more equitable distribution of infrastructure cost recovery (capital, operating and maintenance) will make a positive contribution to reducing artificial modal shifts and distorted tariff structures. In addition, resolution of the present dispute between rail and road operators will make a major contribution to creating a more positive climate for co-operation and interaction between modes.
Key Recommendations:
Specific and regular cost recovery studies should be undertaken to equitably allocate costs for the provision, operation, and maintenance of all freight transport infrastructure (including road, rail, port, and airport)
Implementation of Recommendations:
Cost recovery studies should be carried out by Central Government, and should be transparent. Major operators should agree the terms of reference and be committed to accepting the findings as a basis of determining a more equitable distribution of infrastructure costs if this becomes evident.
Law enforcement
Critical Issues:
Effective law enforcement is essential to ensuring equitable competition in road transport. It also assists towards improving intermodal co-operation and interaction. However, current road traffic law enforcement in respect of overloading and vehicle fitness is deficient. A Road Transport Quality System (RTQS) is being implemented, but there have been suggestions that the RTQS is over-complex and hence cumbersome in implementation.
Key Recommendations:
A climate must be created to promote and motivate self-regulation.
Additional funds will have to be allocated for more and better trained law enforcement officers.
Additional funds will be required to maintain existing and acquire additional weighbridges.
Legislation and court procedures will have to be simplified and achieve more prosecutions.
Fines will need to be increased and confiscation of vehicles considered
Implementation of Recommendations:
All appropriate levels of Government must accept responsibility for law enforcement and where necessary for simplification of laws
RTQS regulations and specifications must be simplified, implemented as soon as possible, and enforced.
In applying the principles, law enforcement at different levels of government and within government at the same levels must be uniform and predictable.
Regulations must be strict and properly enforced to promote self-regulation.
Seamless intermodal services
Critical Issue:
Importers, exporters and the local business community need seamless intermodal services if the key thrusts of the national transport policy are to be met.
Seamless services are seen as a vital element to achieve a customer focused freight transport system. This is especially so when seen against the background of the overall vision for the national transport system.
Key Recommendations:
Modal, spatial and institutional integration must be encouraged, with special reference to corridor development strategies, modal and capacity utilisation.
There should be a national approach to a total freight transportation system, involving government, owners and operators working together.
Cost-competitive, reliable, on-time and safe freight transport must be encouraged.
To remain customer focused, the freight transport system must be responsive to changes in customer demands, logistical developments and market forces.
Niche markets should be developed.
Implementation of Recommendations:
A national forum to promote modal, regional and institutional integration in the freight transport industry should be created.
Policy options should be supportive of small and medium business, and should ensure operators without control over all elements in the logistic chain, are not disadvantaged.
Fair competition within and between modes must be ensured and where possible, increased.
Secure standard policies to ensure safety and technical aspects. (Implementation and proper enforcement of laws and regulations will be enhanced. It will facilitate simplification of rules and regulations, which in turn will assist the training of law enforcement officers.)
Give consideration to developing further the rail network into centrally controlled inter-city corridors, and transferring ownership and/or operational responsibility of certain rail branch lines to local authorities, communities, or private entrepreneurs. (Identified corridors could benefit from a planned rail system to facilitate and promote intermodal transport. Local operators with less costly structures could operate some existing branch lines profitably.)
Promoting South Africa as the control hub for the region's rail systems. (Spoornet is well-placed technically, operationally, and administratively to co-ordinate a drive to extend and exploit regional rail opportunities to the benefit of all participating countries. This could improve regional rail services and contribute positively to reducing regional fears of domination by South Africa.)
Pursue a harmonised road freight transport system in sub-Saharan Africa. (There is an urgent need to harmonise vehicle specifications, road user charges, clearing procedures and other relevant aspects. The present situation frequently prejudices South African road transport operators in particular and land freight in general.)
Establish an effective method to resolve disputes. (This will make an elegant contribution to resolving disputes quickly and effectively, thereby benefiting the economy as a whole. Lengthy and costly legal wrangles that clutter the courts could be minimised.)
Regulation and intervention in regard to safety and technical aspects. (Matters concerning safety should be strictly controlled and enforced by government enforcement agencies.)
Impose strict government regulations to control the transportation of hazardous materials and substances. (Chances of disasters will be reduced. Should they occur, measures will be in place to deal with them effectively.)
Address environmental impacts in conjunction with the Department of the Environment and Forestry, and the Department of Mineral and Energy Affairs. (Energy efficiency options need to be agreed and developed. This would include land use and other considerations).
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Aviation policy can be divided into two distinct areas, namely, domestic policy and international policy. The reason for this division is that the government has full power of decision over domestic policies, whereas it has to consult or negotiate with other governments on international policies.
Domestic policies include policies on air transport, aviation safety, airports and air traffic and navigation services.
International policies focus on international air transport and relationships with international organisations and other governments or groups of governments.
South African aviation policy has been extensively reviewed and revised over the last five to six years. This, to a large extent, coincides with the political changes that have occurred in the country. A policy framework for domestic aviation, international aviation and for former State airports and air traffic and navigation services is therefore already in existence. This framework was reviewed and specific issues of concern were addressed during the review process.
Mission
To ensure and maintain a safe, secure and competent civil aviation environment which enables the provision of services in a safe, reliable and efficient manner while contributing to the social and economic development of South Africa and the region.
Strategic Objectives
Based on the current aviation policy objectives and the need to support the RDP, the following strategic objectives for aviation in South Africa are proposed:
Critical issues
Three critical issues were identified, namely:
Background
Current policy
Over the past six years, South Africa has revised and implemented its current domestic air transport policy. The salient feature of the current policy is that it is based on the principle of open competition. The market was totally deregulated economically, in 1991.
The current domestic air transport policy is based on four basic principles, namely:
The domestic air transport policy is set out in the Domestic Air Transport Policy of May 1990 and incorporated in the Air Services Licensing Act of 1990, which came into operation on 1 July 1991.
The Act provides for the establishment of an independent Air Service Licensing Council (ASLC) which is responsible for the licensing of domestic air service operators.
There are only five entry criteria, none of which are economic in nature:
The Department of Transport's role is to ensure that an applicant is able to provide a safe and reliable air service. This role is fulfilled by issuing an operating certificate to a licensee every year.
Ownership of airlines
There are currently three airlines owned by government as parastatals. South African Airways is part of Transnet Limited. Government "inherited" two airlines from the Governments of the former TBVC States, namely, Sun Air, from the former Bophuthatswana Government, and Transkei Airlines, from the former Transkei Government.
The future role of Government in the ownership and operation of these airlines has been identified as a policy issue. Should the State own airlines in a competitive environment? Should State-owned airlines compete against one-another? Does this comply with the aim of a level playing field? The participation of State-owned airlines in a deregulated domestic market has been debated at various forums over the past few years, and needs to be resolved.
Strengthening of entry criteria
Despite the recent demise of airlines in the air transport industry, the re-introduction of any form of entry control or economic regulation is not supported, and the current domestic air transport policy and the principles on which it is based, are considered sound.
The refinement of the policy is however necessary. One specific area of refinement is the assessment of new entrants, with regard to their ability to provide a safe and reliable service, from a financial point of view. Requirements in this regard could be strengthened.
Key policy recommendations
That the current domestic air transport policy be accepted and applied.
That Sun Air and Transkei Airlines be considered for privatisation to reduce the State's direct involvement in what is meant to be a deregulated and openly competitive environment. The subsidies and forms of guarantees make for an unlevel playing field.
That in an industry that is operating mainly within an "open sky" context, where global alliances will begin to dominate market share, SAA needs to take on a strategic equity partner who will bring in capital, technology, and management inputs to facilitate SAA's modernisation and ensure its growth and survival as a major airline.
Ownership should not be made an issue of principle - but commercial decisions which promote the goal of economic growth and the company's long term growth should be made the focus.
Implementation of recommendations
That the Department of Transport and ASLC continue to apply the current policy as reflected in the Domestic Air Transport Policy document, the Air Services Licensing Act and supporting regulations.
That the Department and ASLC continuously assess the finer details of the policy with a view to refining it within the framework of broad principles of the policy, such as the strengthening of financial entry requirements, as and when necessary.
That the Department inform the process on the restructuring of State assets in the transport sector, of these policy guidelines, with the request to incorporate them into their action plan.
Critical issues
Safety in aviation is of paramount importance and should always be enhanced and promoted.
Background
The Aviation Act of 1962 provides that the Department of Transport is responsible for aviation safety. This includes the regulation of, and control over, pilot and other personnel licensing, aircraft airworthiness and licensing, air navigation rules and rules of the air, investigation of aircraft accidents and incidents, and so forth.
The policies in this regard are carried out by the Commissioner for Civil Aviation who is appointed in terms of the said Act.
In general, South Africa adheres to the standards and recommended practices laid down by the International Civil Aviation Organisation (ICAO).
Key policy recommendation
That the Department continue with the application of its current aviation safety policies within the broad framework set by ICAO.
Critical issues
The restructuring of the CAA was identified as a critical issue.
Background
Following the acceptance and implementation of the commercialisation policy, which lead to the formation of service providing companies to provide air traffic control services and to manage the previous state airports, the previous directorate of Civil Aviation was transformed into the Civil Aviation Authority (CAA).
With the removal of service providing responsibilities, the CAA became mainly a Civil Aviation Regulating Authority and a provider of some administrative functions in respect of policy or other relevant areas.
Furthermore, due to the economic deregulation of the domestic and international air transport policies, new emphasis was placed on safety in aviation. As a member of ICAO, South Africa is also compelled to ensure that the standards and recommended practices laid down by this organisation are adhered to, and enforced, in South Africa. The Department of Transport is currently responsible for the setting, monitoring and enforcing of aviation safety standards. However, the aviation safety directorate does not have sufficient funds and manpower to perform its tasks efficiently and effectively. In terms of the criteria and priorities of the RDP, aviation and aviation safety do not enjoy a high priority with regard to state funds.
Due to the shortage of funds and skilled manpower, a general disregard of the law has been observed. This may well lead to the deterioration of our air services which in turn, could affect international trade and tourism.
Consideration should also be given to separating the regulatory and setting of standards functions, from the investigation and law enforcement functions. The establishment of an aviation court could also be considered.
Key policy recommendation
That the CAA be restructured with a view to ensuring that it fulfils its role and functions efficiently and effectively through a potentially independent, self-financing authority.
That, based on ICAO commitments, the following functions could, inter alia, be the duties of the restructured CAA:
That attention be given to the possibility of separating the investigation of accidents and incidents from the proposed restructured authority.
Implementation of recommendation
That the Department of Transport proceed with an investigation into the restructuring of the current CAA.
Critical issues
Four critical issues were identified, namely:
Background
Commercialised ACL and ATNS
The former State airports and air traffic and navigation services were commercialised in 1993 by transferring the responsibility for the operation and management of the relevant infrastructure and services, from the Department of Transport, to two companies, namely, the Airports Company Limited (ACL) and the Air Traffic and Navigation Services Company Limited (ATNS).
The policy in terms of which the former State airports and air traffic and navigation services were commercialised, was based on the following principles:
The two companies, namely ACL and ATNS, have been operational since 7 August 1993. Both companies are fully owned by the Government.
As State monopolies (or at least dominant oligopolies in their respective markets) before commercialisation, there was an automatic check on the abuse of their dominant positions. Commercialisation exposed the companies to market forces but also created the opportunity for them to realise market related financial returns through monopoly abuse rather than increased efficiency.
The Regulating Committee was established to oversee the conduct of the companies. Specifically, the regulator is tasked with striking a balance between the commercial interests of the shareholder (i.e. an acceptable return on his investment), the need to conduct business efficiently and the needs of the companies' clients and the general public - this is often referred to as a surrogate market.
The Regulating Committee's mandate is defined and circumscribed in the Airports Company and ATNS Company Acts. It acts independently from the shareholder (in this case the State), the companies and the companies' clients, and is subject to revision in a court of law only. It reports annually to Parliament. In practice, the Committee's approach has been one of transparency - it widely advertises its approach to, and findings on, matters. Similarly, it requires of the companies and their clients to be open and frank in their dealings with one another and with the public.
Future ownership of ACL and ATNS
As part of this review, the Government should be advised on a future policy as regards the ownership of the ACL and ATNS companies. The ATNS should remain a fully State-owned company operating on a utility basis with a focus on providing quality services and able to recover the costs of its operation and provide for expansion.
National policy on airports and airspace management
As a result of the commercialisation of the former State airports and air traffic and navigation services, and the provision in the interim Constitution that airports are a provincial function, the question arises as to what role central and provincial governments should play. Various provinces have, for instance, expressed interest in constructing provincial airports. The question is therefore whether these initiatives should be co-ordinated at provincial or national level. Also of importance, is the future role and function of central Government in the development and operation of airports.
Another issue which was raised, was the question of environmental/town/regional planning in the vicinity of airports. The salient aspects in this regard are noise pollution and control of land-use planning around airports.
A third issue relates to airspace management. The speed of modern aircraft, cost of air navigation infrastructure and procedures associated with the control of air traffic, dictate a seamless airspace with as much centralisation of control of the airspace as possible. Globally, the need for more efficient management of airspace has been recognised, and planning is being conducted around the potential of Future Air Navigation Systems (FANS) which will allow the most efficient flight trajectories. The question also arises as to how to divide, assign and control airspace for various users.
Management of our airspace must therefore be conducted in a manner whereby the safest, most efficient service can be provided to the benefit of all users, and in the interest of the State and general public.
Implementation of CNS/ATM
ICAO has already decided to proceed with the implementation of CNS/ATM on a global scale. South Africa is in the process of implementation. This entails, inter alia, the setting up of the necessary framework for implementation, obtaining industry co-operation, assessing the impact thereof on the airspace management policy, and so forth.
Key policy recommendations
That the current situation whereby the former State airports and air traffic and navigation services are managed and operated on a commercial basis, be accepted.
That a minority stake in the ACL be sold to a strategic investor in accordance with the recommendation of the South African State Airports Policy Review.
That the State remain the sole shareholder of the ATNS.
That a national policy on airports and airspace management, including CNS/ATM, be formulated, to address inter alia, the following aspects:
That South Africa support and co-operate with ICAO in the implementation of CNS/ATM.
Implementation of recommendation
That the recommendation regarding the future ownership of ACL be referred to the process on the restructuring of State assets, for consideration and implementation.
That the Department of Transport proceed with the initiative to formulate a national policy on airports and air space management.
That the Department of Transport proceed with the implementation of CNS/ATM.
Critical issues
Background
Current international air transport policy
South Africa has reviewed and implemented its international air transport policy over the past two to three years. The current policy was accepted in 1992 and has been implemented since that date. The International Air Services Act, 1993, which incorporates our international policy, came into operation in April 1994.
The current policy has as its objective, the liberalisation of the skies. This is not an "open skies" policy but rather a policy which has as its purpose -
The salient aspects of the policy are set out in the following policy statements:
The policy has been implemented by means of two main instruments, namely:
The Act provides mainly for the licensing of South African airlines which wish to provide international air services. The International Air Services Council is responsible for the licensing of such airlines. The main purpose of the licensing system is to ensure that: licensed airlines comply with the minimum internationally recognised technical norms and standards; airlines comply with insurance, ownership and equipment requirements; and that airlines are fit, willing and able to provide international air services.
The actual operation of services is regulated in terms of bilateral air service agreements concluded between the South African and other governments. Although South Africa has adopted a policy on matters regarding the operation of services, the final rules according to which an international air transport service is to be provided are normally determined through negotiations between the two countries involved.
Deregulation of international air freight services
The current international air transport policy provides that certain categories of air freight services be allowed without any economic control, and that other categories in turn, be economically regulated. The enforcement of these policies poses a problem, in that so-called "sixth freedom carriers" can easily by-pass the provisions of the policy by routing freight through a third country. The so-called "honest" carriers are kept out of the market, which could be to the disadvantage of the country.
World trends in airline co-operation
One of the major trends in global aviation is the co-operation between airlines, in various ways, in order to become global competitors. Such co-operation includes alliances, equity exchanges, code-sharing, franchising, branding and a host of other forms. The most prominent of these is code-sharing. These forms of co-operation potentially conflict with regulating regimes, could be anti-competitive and could potentially, not be in the interest of the users.
The South African CAA has been confronted with a variety of requests for certain co-operation arrangements, from airlines and governments. Bilateral negotiations with some countries ended in deadlock due to unresolved matters specifically pertaining to some of these issues. For instance, the USA bilateral negotiations broke down as a result of code-sharing issues.
South Africa must assess its position on the implication of these forms of co-operation, with a view to altering its approach regarding bilateral negotiations.
Non-scheduled services on scheduled routes
The question of allowing non-scheduled services to operate on scheduled routes is one which mainly entails the criteria that should apply for allowing these services.
Certain recommendations relating to the implementation of the current policy in respect of non-scheduled services have not been implemented as was originally intended.
Key policy recommendation
That the current international air transport policy as set out in the International Aviation Policy document and International Air Services Act be accepted, and continued to be applied, with the necessary amendments as recommended in this document.
That the international air freight market be deregulated as far as South African airlines are concerned. That the current regulatory provisions regarding foreign cargo airlines be retained, e.g. that non-scheduled services not be allowed on scheduled routes, and that deregulation of services by foreign operators to South Africa only be considered by the Government if reciprocity exists.
That the Department formulate a policy on how the CAA should deal with airline co-operation, especially code-sharing, within a framework of promoting competition and co-operation.
That the Department evaluate its current policy in respect of non-scheduled services and the implementation thereof, with a view to ensuring its compatibility with the current policy framework.
Implementation of recommendations
That the Department and International Air Services Council continue to apply the current policy.
That the International Air Services Act be amended to implement the recommended deregulation of international air freight services.
That the Department undertake the necessary research with a view to understanding the latest trends in airline co-operation and their effect on the international market and market forces.
That the Department constitute a Working Group of stakeholders for the purpose of doing the necessary research and formulating a policy on code-sharing specifically.
Critical issues
South Africa is a member of the International Civil Aviation Organisation (ICAO) and therefore generally adheres to the policies and practices laid down by this organisation.
Furthermore, South Africa is, and will, become a member of various international organisations or groupings of countries.
In most cases such organisations have specified the goals and objectives they wish to attain, or have specific policy guidelines for members.
At this stage, there is no clear indication of South Africa's position vis-à-vis organisations such as SADC, AFCAC and ECA. For instance, South Africa's role in Africa and the Southern African region needs to be determined. This is necessary since South Africa's policies and policy directions in the subregion do not always correspond with those in the greater region. Equally, South Africa's national interests may also differ from regional interests.
A specific and very topical issue is SADC's creation of a regional air transport authority, SARATA. The proposal is, inter alia, that SARATA negotiate traffic rights with third countries for, and on behalf, of SADC and its member States. At this stage South Africa does not support the SARATA initiative since it could be in conflict with its own policy. The careful consideration of advantages and disadvantages of SARATA is therefore necessary.
Another typical issue is the Declaration of Yamoussoukro, in terms of which African countries agree to work towards co-operating on the provision of air services. South Africa has not yet decided to support this declaration. One of the reasons is the question of the rationalisation of air services by making more use of "hubs" in the region. This issue was not addressed in the declaration.
Key policy recommendation
That South Africa, as a salient aspect of its policy regarding international relationships with other countries and international organisations, as far as possible, accept and endorse the norms and standards of ICAO. Furthermore, that the country actively participate in the proceedings and working of that organisation.
That the Department of Transport formulate a policy regarding its participation in regional and other international organisations such as AFCAC, SADC, ECA, etc, within the framework of the strategic objectives and the current policy of promoting competition.
Implementation of recommendation
That the Department of Transport constitute a Working Group of stakeholders to formulate the policy regarding international relationships.
The aviation industry should promote itself to the various levels of government and to the general public, with purpose of creating an awareness of the value of civil aviation as a contributor to the economy of the country and the region, and also, to expose the industry in all its facets to the community in order to promote the recruitment, training and integration of persons of all communities.
The Department and other relevant government departments, and the industry, should liaise and work towards the establishment of an unitary training organisation for aviation in the broadest sense, with the aim of achieving a standard approach to education and training in this industry.
The Department of Transport should also, in partnership with the industry, participate in programmes aimed at the training of persons for the industry.
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Maritime transport encompasses all forms of transport by sea, intermodal links and inland ports but has certain fundamental differences from other modes of transport. First, it caters almost entirely for the freight market, and offers no significant passenger carrying ability in the national context. Second, as it operates in an international environment, it is subject to considerable competition and economic pressure from foreign competitors.
This policy review addresses issues relating to economic principles, trades and cargoes, ship financing and registration, the operation of ships, ports, safety at sea, employment & training, and administration.
The objective of MARITIME TRANSPORT policy is
to encourage and support the SA Maritime Transport Industry in a manner which will give effect to the overall vision set out earlier and in so doing to:
develop a maritime culture for South Africa
assist in the creation and fostering of an economic environment for the Maritime Transport Industry which will allow it to compete on at least an equal basis with the maritime carriers of other nations and South African land-based carriers
ensure safety of life and property at sea and the prevention of pollution of the sea by ships
contribute to the release of the full potential of the maritime industry in South Africa, with particular reference to the RDP and to the modernisation of shipping administration in South Africa.
The purposes of a strategic maritime transport policy are:
Economic Principles
Critical issues
There is a need to encourage economic efficiency in the maritime industry
The basic cost structure of sea transport provides the most powerful rationale for the organisation of the liner industry around Conference or consortia agreements. Full cost pricing is the only viable long term solution.
There is a need for efficient port pricing
Ports have the characteristics of natural monopolies, and their pricing under the normal efficiency criteria of expanding output until price equals marginal cost would be problematical for private profit-seeking port authorities.
Cross-subsidisation between the various operating and trading arms of Transnet have severely distorted South African transport markets by placing subsidisation burdens on discrete groups of transport users. Such an approach is inefficient and distorting in economic efficiency terms.
The need for competitiveness in international sea transport
International shipping is generally conducted in a highly competitive environment. The principal market imperfections that exist in international sea stem from the protectionist policies of certain nation. South Africa has never practised shipping protectionism, but has generally permitted the industry to organise itself on laissez faire lines.
Coastal sea transport and intermodal competition
Coastal sea transport competes with land-based road, rail, and pipeline transport. Efficiency in domestic transport can be secured if all modes are able to compete on a level playing field, and where the real comparative cost advantages of all modes are fully reflected in the set of prices and tariffs faced by their users. Any distortions that skew prices from social costs introduce inefficiencies and misallocate scarce economic resources.
This requires that the prices paid for infrastructural facilities by all modes should reflect social opportunity costs, and that no hidden subsidies be made available to any transport modes. In this way, road users should pay fully and equitably for the road infrastructure, and for damage inflicted on that infrastructure; rail users should face cost-related tariffs; and coastal sea carriers and cargo owners should pay equitably for port facilities and services.
Sea transport and economic development
Given sea's dominance in the carriage of the lion's share of South African foreign trade, sea transport has a pivotal role in securing the competitiveness of South African exports, and in mitigating imported inflation by minimising the landed costs of imports. It is significant also that there is a dominance of low-value primary products in South Africa's exports.
Key recommendations
Maritime transport policy should attempt to foster and maintain a competitive climate wherever appropriate and the Government should generally avoid protectionist maritime practices and maintain an "open ports" policy.
All transport policy should ensure that domestic transport modes receive equal and equitable treatment, and that their prices reflect social opportunity costs in all modes.
Maritime transport policy should recognise the South African shipping industry as a fully-fledged exporter of services whose activities considerably strengthen the South African balance of payments.
Government should recognise the strategic importance of the South African shipping industry and the external benefits it bestows on the wider economy and maritime transport should be given greater priority in the national order.
Implementation of recommendations
The above key recommendations should be central to the Governments formulation of policy and to its prioritisation of maritime transport in the national transport and economic structures
Trades and Cargoes
Critical issues
Without trade there can be no cargo. Without cargo there cannot be a healthy shipping industry.
Shipping is essential for the promotion and preservation of fixed trade links between trading nations.
Terms of trade exercise considerable influence over the benefit the country receives from the maritime industry. Buying Free on Board (FOB) and selling Cost, Insurance, and Freight (CIF) allows the trader to nominate the carrier.
Key recommendations
The State should be committed to the promotion and continued development of regular shipping services (and related infrastructural requirements) between South Africa and its major trading partners within a well-defined regulatory framework.
Commercial decisions should as far as possible be left to market forces to be resolved and accordingly, subject to general economic principles applicable to all industries, cargo interests should be unhampered in freight negotiations.
While maritime policy should encourage South African cargo interests to nominate South African carriers to carry their cargo, any attempt to statutorily stipulate terms of trade would constitute an unwarranted interference in trade.
Implementation of recommendations
The DoT should play a leading role in promoting an interdepartmental initiative to educate exporters of SA goods on the advantages of shipping their cargoes on SA vessels or on CIF terms. This process should be an on-going and pro-active educational, support and public relations exercise and should apply equally to importers buying FOB.
Ship Financing , Registration and the Fiscus
Critical Issues
In choosing an appropriate register under which to operate their vessels domestic shipowners and operators take into account, inter alia:
SA should aspire to a modern ships register which is efficient, which balances the interests of the nation, the RDP, shipowners and seafarers in an internationally acceptable manner, and which accords with principles of international law relating to the necessity of a "genuine link" between the state of registry and the shipowner.
The register should be attractive, but in no way a "flag of convenience".
Key recommendations
The DoT should promote interdepartmental initiatives to ensure that administrative, fiscal and legal inhibitors to the development of the SA register and its ancillary services are removed. In particular:
Implementation of recommendations
The DoT should of its own initiative and through the Interdepartmental Committee and the Standing Committee on Maritime Affairs (upon which, see below) address the key recommendations referred to above.
The present initiative of the Chief Directorate: Shipping to amend ship registration legislation should be vigorously pursued until acceptable legislation can be tabled in Parliament.
A similar initiative, driven by the Chief Directorate: Shipping, should be launched to examine the ranking of maritime claimants, especially the mortgagee, and to correct any anomalies in that ranking.
The Operation of Ships
Critical issues
Shipping is highly cyclical and shipowners and operators must be able to adapt their fleets to meet continuously changing circumstances.
South African shipowners do not enjoy the same competitive advantages as many foreign carriers.
Coastal shipping competes directly with road and rail in a very competitive environment. The road haulage industry is favoured by an indirect subsidy in the form of under-recovery of road repair costs caused by excessive allowable Gross Vehicle Mass, and ineffective law enforcement.
Both local and foreign owned vessels on the international trades to and from South Africa are free to carry South African coastal cargo, but those on international trades have the advantages of fuel at the international price, of seafarers being exempt from income tax, of no import duties payable on ships spares, and, in the case of many, and of operation in low or no income tax regimes.
The industry has an enforced reliance on monopolistic supply of service by Portnet. This adversely affects the competitive position of coastal carriage especially.
Key recommendations
The disincentives facing coastal shipping in relation to other transport modes and foreign competition should be addressed at an interdepartmental level and removed where appropriate:
Cabotage protection legislation should not be adopted at this stage.
South Africa should not accede to the UNCTAD Code but should nevertheless strive to increase its share of liner shipping
In order to promote the growth of South African shipping interests in the dry bulk sector, research should be undertaken to establish how other nations have successfully increased their market share in the shipment of bulk products and to seek acceptable ways of emulating this.
The scope for bilateral shipping agreements which will enable South African shipping interests to access markets which are currently inaccessible should be explored.
Bilateral shipping or taxation agreements should be concluded with Pakistan and India, and other countries which levy freight taxes on non-resident shipowners so as to eliminate or reduce foreign taxes.
Implementation of recommendations
Close liaison between the Chief Directorate: Shipping and the shipping industry should be promoted. The Department of Transport should establish a Standing Committee on Maritime Affairs which should have an advisory function and which should comprise representatives of all participants in the maritime transport industry. This Committee should meet quarterly to consider all aspects of maritime policy and practice.
An inter-departmental committee as proposed by the Floor Committee (involving the Departments of Trade and Industry, Finance and Environmental Affairs) should be appointed to review all issues affecting shipping in a holistic manner. In particular:
Research parameters covering the investigation into growing the bulk shipping market share of South African operators should be drawn up and tenders called for once research funds have been accessed.
Port Operations and Administration
Critical issues
Ports play a crucial and strategic role in the facilitation of seaborne trade.
The real estate of South African ports is currently owned by Transnet. The Port Authority function is delegated to Portnet, an operating arm of Transnet, and operations within the ports are either Portnet or private enterprise.
There is, within the financial structures of Transnet and Portnet, an unwarranted cross-subsidisation drawn from Portnet's earnings and flowing to Transnet. This is considered unwise, both organisationally.
Any restructuring of ownership and operation of the ports will have significant impacts on employment: this could aggravate an existing unsatisfactory employment structure within the ports.
Inland ports (at present City Deep) operate outside existing port authority structures.
Key recommendations
Such real estate and port hardware as is currently owned by Transnet (including inland ports) should be recognised as a state strategic asset, and should revert to the State
There should then be established a National Port Authority with an administering board of directors comprising representatives of all stakeholders of the ports, and possibly having an independent regulatory committee to act as an appeal board as well as a guardian of the constitution of the National Port Authority.
A basic tenet of the constitution of the National Port Authority should be that no monies should pass between the Port Authority and the State or Transnet.
Whilst the National Port Authority would of necessity provide (on a cost recovery basis) any essential facilities not willingly taken on by private enterprise, private enterprise within the ports should be promoted for the provision of all port services including the construction and operation of cargo handling terminals wherever appropriate.
This creation of a competitive operation in ports (which should include inland ports) should be managed by the National Port Authority through board and constitution which would allow for strict regulatory control to ensure that port services are maintained at an efficient level. As far as possible however, free market forces should dictate the entry and exit of players in the provision of port services, and the setting of price structures within the ports.
In viewing SA ports not a as a source of income but rather as a means of promoting trade, the concerns of organised and unorganised labour at all levels of the existing Transnet/Portnet structure (and outside it) must be accommodated.
Implementation of recommendations
The specific role of Portnet in the operation of the nation's ports and in the provision of services in those ports should be urgently addressed by the government task team set up to restructure the State's transport assets. The DoT should play a crucial role in negotiations to ensure the speedy creation of a statutory National Port Authority.
The on-going role of Portnet in the operation of the nations ports and in the provision of services in those ports should be a recurring item on the agenda of the Standing Committee on Maritime Affairs.
Employment
Critical Issues
SA seafarers are currently not given the same protections and rights in labour law as workers employed on land.
The SA shipping industry is currently experiencing a shortage of skilled and adequately certificated SA seafarers, particularly in the deck and engine room officer ranks. This problem is exacerbated by the presently fragmented approach to training and development, and the declining resources available to institutions.
Economic liberalisation in the ports, coupled with the vagaries of shipping and cargo movements and consequent sharply variable labour requirements have in the last twenty years led to wage competition particularly in stevedoring and other parts of the cargo handling industry. This has in turn led to the replacement of permanently employed dockers by casual workers.
The majority of workers in port cargo-handling operations are unskilled with a high level of illiteracy, thereby limiting their ability and the industry to adapt to technological change and improve efficiency and levels of service.
Key recommendations
Labour legislation needs to be amended to ensure that seafarers employed by SA owners and operators are afforded the same rights and protections as other workers.
The crisis in the structure of employment in the ports needs to be urgently addressed through:
The crisis of skills and basic education in the maritime labour market needs to be urgently addressed through a concerted programme of education and training to meet the growing demand for seafarers, and to improve the skills base of existing employees in the industry.
Education and training must comply with domestic and international standards as defined and required in the SA Qualifications Authority Act and the STCW convention.
Implementation of recommendations
Government should facilitate the amendment of labour legislation to give greater protection to SA seafarers, through an interdepartmental committee involving the DoT and the Department of Labour, and involving organised labour and employers.
Government should manage the restructuring of Portnet to ensure preservation/satisfactory alternative arrangements, and will create the necessary forums to ensure that such restructuring is done with the full input of organised labour.
Government, though the DoT and the National Ports Authority, will actively support and facilitate the negotiated establishment of a statutory labour pool, which shall in each port create a single pool of permanently employed registered dockers to supply the variable labour requirements of port operators at equal unit cost according to skill.
Whilst the Government, through the DoT will continue to act as the standard setting and accreditation body and the competent authority administering the evaluation and certification of seafarers in terms of the STCW Convention, Government will also work with and support the Maritime Industry Training Board in its functions as the co-ordinating, standard setting and accreditation body with respect to training and education for the maritime industry under the SAQA Act for those areas not covered by the DoT or STCW.
Safety at Sea and Administration
Critical issues
A cohesive, co-ordinated and effective policy giving due cognisance to internationally accepted principles of safety of life and property at sea as well as to particular requirements of the South African coastline and the trades which ply its waters, is a prerequisite to ensuring safe and orderly maritime transport.
There exists in international law and practice, a procedure of Port State Control by which a state may conduct limited safety inspections of all vessels calling at its ports. PSC has demonstrably reduced the incidence of substandard ships calling at ports where it is rigorously enforced. Further measures such as mandatory ship reporting, are now legally enforceable under international law.
SAs full membership of the International Maritime Organisation, and the development of international maritime controls such as improved flag state vessel safety requirements and PSC, have however imposed greatly increased obligations and burdens on the Chief Directorate: Shipping. The department is inadequately staffed to cope with this burden.
There is an unsatisfactory overlap of departmental jurisdictions relating to oil pollution at sea and to the investigation of maritime casualties.
Many SA maritime regulations are outdated and require updating or repeal. Most require re-examination in the light of the Interim Constitution. There are many international conventions which require examination to assess the advisability of SA acceding to them.
The provision of a satisfactory well-prepared and well-equipped salvage service for the South African coastline is strategically necessary, and cannot be left entirely to the private sector.
Key recommendations
SA needs to embrace PSC as one of the more effective means of deterring substandard ships and their owners from calling at SA ports
The Chief Directorate: Shipping should increase its resources to enable it to deal satisfactorily with all maritime matters, including the revision of legislation, to which end attention should be given to the creation of a Maritime Safety Agency as an option
A statutory National Navigation Authority should be created under the auspices of the Department of Transport.
Although Government participation in salvage, directly or indirectly should be discouraged as being a disincentive to the investment of the private sector in the industry, the State stimulate investment from the private sector in the tug and salvage industry.
Implementation of recommendations
The Department of Transport should address the resource needs of the Chief Directorate: Shipping as a matter of urgency.
The Chief Directorate: Shipping should take steps to improve its PSC inspection rate and should promote regional initiatives concerning the establishment of regional PSC agreements.
A Standing Committee on Maritime Affairs (referred to above) should be established to ensure proper liaison between the Department of Transport and the industry it seeks to serve
The Interdepartmental Committee proposed by the Floor Committee should be established.
The DoT, where appropriate in consultation with the Standing Committee on Maritime Affairs, should continue to give urgent attention to the review, revision and updating of conventions, regulations and other legislation affecting maritime transport.
The unsatisfactory overlapping jurisdiction in relation to oil pollution and casualties should be reviewed and redressed by the Interdepartmental Committee.
The Standing Committee on Maritime Affairs should investigate and report on ways of stimulating the local salvage industry.
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"Road traffic" as a focus area of transport policy is concerned with: the quality of road vehicles (including motorised and non-motorised vehicles); drivers of vehicles; operators of vehicles; pedestrians; road traffic operations; the road environment; and interaction in the traffic network (including the mutual interaction between road users and the interaction between road users, the road infrastructure, and the road environment).
"Road traffic quality" encompasses traffic safety; traffic discipline; the protection of the road infrastructure and the environment; administrative order in road traffic; and economic order in road traffic.
The "functional areas of road traffic management" are: road traffic control (law enforcement); adjudication of traffic offences; enhancement of road user knowledge, skills and attitudes; incident management; road traffic engineering (including transport and traffic engineering, traffic operations management, and road vehicle engineering); and support functions (including traffic legislation, information management, licensing and registration, and road traffic related research and development).
The mission to be fulfilled by institutions and persons involved in road traffic is
"to ensure an acceptable level of quality in road traffic, with the emphasis on road safety, on the South African road and street network".
The road traffic quality-related needs of the community are to be determined and provided for by a transparent, consultative, and accountable process.
Strategic Objectives
The strategic objective in road traffic is to fulfil the mission by promoting and implementing efficient, integrated, and co-ordinated road traffic management systems in the country, involving the role-players in all functional areas of road traffic management.
Specific objectives will be set for road traffic quality improvements over the next five years, in respect of traffic safety, traffic discipline, damage to the road infrastructure, and administrative order in road traffic.
Performance indicators should be established, and the achievement of these objectives should be monitored.
Key Policy Areas
The general policy area of funding, and the functional areas of traffic control, adjudication of traffic offences, the enhancement of road user knowledge, skills, and attitudes, and information management, have been identified as the key policy areas in traffic management.
Funding of road traffic management
Critical issues
The critical shortage in funds is the most fundamental problem of road traffic management in South Africa. The availability of funds is incongruent with the importance and priority that should be attached to traffic management. Historically, the emphasis in road funding was heavily biased towards the provision and maintenance of the road infrastructure. This bias needs to be rectified.
Key recommendations
A fully balanced funding policy in road traffic should be introduced. Spending priorities in the road and road traffic environment should be re-evaluated in view of traffic quality related road user needs, the economic impact of inadequate levels of road traffic management, and the expected benefits of increased spending on traffic management.
Additional funding strategies, apart from normal financing of traffic management functions, should be developed and introduced, to ensure the availability of adequate resources for road traffic management in line with those priorities.
Implementation of recommendations
The respective roles and responsibilities of national, provincial and local governments in financing traffic management should be clearly demarcated.
Existing funding, budgeting and prioritising procedures should be adapted to ensure an increased availability of funds for traffic management purposes. Reliable procedures for determining the minimum and optimum requirements in respect of road traffic management resources should be developed and applied.
Additional funding strategies for traffic management functions should be developed. These should include the allocation of a percentage of the roads budget for traffic control purposes, the introduction of a traffic management levy to vehicle licence fees and fuel sales, and the co-operation of the Multi-lateral Motor Insurance Fund (MMF) in the improvement of road safety. Dedicated national and provincial road traffic management funds should be established. The desirability of apportioning traffic fines and bails to dedicated road traffic management funds instead of fines accruing to individual authorities and general state or provincial revenue funds should be investigated.
Road Traffic control
Critical issues
Traffic control (law enforcement) is identified as a traffic management priority, due to a severe breakdown in discipline on the roads, which in turn leads to unsafe conditions, damage to the road infrastructure, etc. The lack of discipline can only be rectified through strong pro- and reactive control actions. The effectivity of the traffic control function must be improved substantially.
Key recommendations
The autonomy of the provincial and local governments with regard to traffic control, as well as the need for regional, provincial, national and international co-ordination and harmonisation, and for mutual support between traffic services, are emphasised.
The optimal utilisation of traffic control resources should be pursued, in accordance with the emphasis on efficiency, productivity and accountability in the White Paper on Reconstruction and Development.
The need for more traffic personnel and equipment in the country, including the needs of the under-privileged or marginalised communities, should be satisfied.
The level of professionalism of the traffic control profession should be enhanced to improve the image of the profession among members of the public, and to ensure adequate standards and levels of service.
Due to the specialised nature of road traffic control as a transport function, traffic departments should not be merged with the SA Police Service, but should gradually take over the traffic control functions of the SAPS, especially the function of investigating accidents.
The following issues should also be addressed:
Implementation of recommendations
On the national level, co-ordination and harmonisation in traffic control should be achieved through the COLTO/MINCOM consultative structure. Provinces should facilitate the establishment of liaison structures between the provincial, metropolitan, regional and local levels of government. On the international level, the co-ordination and harmonisation is the responsibility of the national Department of Transport, and should be achieved through the structures established for this purpose.
Optimising resource utilisation in traffic control should inter alia be achieved through the implementation of appropriate management models specifically designed to facilitate optimisation; the extensive utilisation of traffic information systems; setting and evaluating traffic control standards on regional, provincial, national and international levels; the identification of critical offences on these levels; the development of internationally, nationally, provincially and regionally co-ordinated road traffic control programmes to address critical offences; and the introduction of an accreditation system for traffic authorities, related to the level of service rendered by traffic departments.
A national performance incentive scheme for traffic authorities, with performance incentive funds linked to the achievement of certain preset standards and the achievement of certain targets, should be introduced under the auspices of the COLTO/MINCOM consultative structure.
The level of professionalism of traffic officers should be increased inter alia through the introduction of a traffic academy for advanced training of traffic officers on the tertiary level; the continuous re-evaluation of training standards; the improvement of career development possibilities of traffic officers and their conditions of employment; and the introduction of a professional body responsible for maintaining standards and of a professional code of practice. Special programmes should be introduced to build the capacity of traffic control services in disadvantaged communities, and to introduce community based traffic control services.
In order to enable traffic departments to take over the traffic control functions of the SAPS, specifically the function of investigating road traffic accidents, traffic control services should be declared "essential and emergency services" in terms of the relevant legislation. The rendering of traffic control services on a 24-hours per day should be introduced, and traffic control resources should be increased to provide for this extension of services.
Adjudication of traffic offences
Critical issues
Traffic control is incomplete without the finalisation of prosecutions in courts. The effective co-operation between the traffic control and adjudication functions is therefore an essential component of traffic management. In general, there is a positive relationship between traffic departments and the judiciary. However, a number of notable problems are being experienced with regard to the co-operation between traffic control and the adjudication function. These problems are perceived to contribute to a lack of respect for the law, prevailing among a large percentage of South African drivers. Innovative and realistic solutions to these problems, that will honour true legal principles while not compromising the effectivity of traffic control in achieving its goals, are essential.
Key recommendations
The problem that a large percentage of traffic prosecutions instituted by traffic departments are never finalised, or are only finalised after an extensive period of time and at an excessive cost, should be solved by decriminalising certain traffic offences. This will ensure that the process of adjudicating the traffic offences will be made brief, strict and decisive, and will assist in restoring respect for the law.
In respect of non-decriminalised offences, uncompromised support from the judiciary to traffic control should be the norm.
Requirements set by Attorneys-General in respect of the utilisation of technological aids in traffic control, should be standardised. It should assist in assuring adequate standards of prosecution, but should not interfere with the priorities and programmes of traffic departments (e.g with deciding where and when enforcement should take place, and what the focus and intensity of enforcement programmes should be).
Additional issues to be addressed include: Problems experienced with prosecutions and administrative action against operators when an offence is committed by a driver in his/her service; the need for standardisation, as far as possible, of fines, and other issues requiring standardisation; and inefficiencies in court due to errors or a lack of experience on the side of traffic officers witnessing in court.
Implementation of recommendations
The decriminalisation of traffic offences should be introduced as a matter of urgency. It is strongly recommended that the number of decriminalised offences be extended beyond parking offences, to include all stationary violations and at least those moving violations requiring high volumes of prosecutions. The feasibility of decriminalising all traffic offences except reckless, negligent and inconsiderate driving, should furthermore be investigated.
Avenues should be opened for traffic control to launch intensified, high volume actions against critical offences through the unrestricted use of modern technological aids. The full and uncompromised support of the judiciary to traffic departments regarding the use of these aids under circumstances where it is required in terms of the strategic evaluation of the traffic officer, should be made the norm. The possibility of standardising these requirements in terms of SABS/ISO series 9000 codes should be investigated.
Reasons why a lack of support by the judiciary is experienced by many traffic departments, and other related problems, should be investigated by a joint committee reporting to the national Minister of Transport, and the Minister of Justice. The establishment of such a joint committee is recommended.
Improvement of road user knowledge, skills and attitudes
Critical issues
A solution of road traffic problems can only be reached if the need to focus on the human aspects of road traffic is fully recognised. The improvement of road user knowledge, skills and attitudes as a road traffic management function is targeted as a priority, due to the inadequate emphasis of this function in the past, and in view of the extreme importance of this function in achieving acceptable levels of road traffic quality.
Key recommendations
All categories of road users should continuously be exposed to a purposeful programme targeted at enhancing their knowledge, skills and attitudes, at promoting their voluntary compliance with the law, and at developing community ownership and participation in enhancing road traffic quality.
Road user knowledge, skills and attitudes should be enhanced by a comprehensive approach, including formal education within a formal educational setting, non-formal education in non-educational organisations, and informal education where media such as radio television, posters, pamphlets, etc are used.
Traffic control (law enforcement) programmes should be supported by well researched promotional and motivational programmes, so as to create the necessary public understanding of their responsibilities, public understanding of the reasons for the existence of the law, and public acceptance and support for their control activities; to increase public awareness of the control programmes; and to enhance the effectiveness of the programmes.
Ample resources should be made available for the enhancement of road user knowledge, skills and attitudes.
Implementation of recommendations
Formal road user training should be enhanced, in co-operation with the national and provincial Departments of Education and educational institutions. Non-formal traffic safety education and training programmes, aimed at all categories of road users, should be developed on a national level and implemented according to guidelines, agreed to via the COLTO/MINCOM consultative structure. Special attention should be given to the needs of disadvantaged communities and the utilisation of community workers in these areas. Informal road user education, which mainly involves communicating with the road user through the mass media, should be undertaken on the national level, involving national media, but also on the other levels of government, so as to reflect provincial, regional and local realities and needs.
Full co-ordination and integration of traffic control and promotional programmes on national as well as provincial, regional and local levels should be the norm. Road and traffic authorities and other bodies involved in planning traffic management programmes should develop policy guidelines or procedures to ensure that the necessary co-ordination and integration will in fact take place.
Road traffic authorities should be encouraged to create community liaison forums with the purpose of determining the true road user needs regarding the provision of road traffic management services, and to bring their management plans in line with the needs expressed by the community, and to secure public support for road traffic programmes and projects. Specific attention should be given to the realisation of the relevant RDP principles and goals in addressing community needs, and to actively involve the community in improving road traffic quality.
All possible avenues of securing necessary funds (including the involvement of the MMF, sponsorships, and other ways of involving the private sector) should be investigated. The mass media, the motor and insurance industries, as well as other relevant industries should be made responsible partners in creating an environment which is supportive of the aims of traffic management.
Road traffic administration and information systems
Critical issues
Insufficient road traffic related management information is currently available. In order to manage road traffic matters effectively and efficiently, current and reliable information in respect of vehicles, their owners, operators, drivers, accident, offences, convictions, etc. is required. Information management, and specifically the finalisation of the National Traffic Information System (NaTIS) as well as other supporting systems have been identified as being of critical importance.
Key recommendations
It is essential that the NaTIS be made fully operational as soon as possible. This will enable traffic authorities to exercise proper road user control, which is an essential prerequisite for discipline, order and safety on the roads.
Standardised databases for road traffic aspects not covered by the NaTIS should also be made available to the relevant authorities. Traffic information required for planning, monitoring and control purposes, should be available to management at all levels (local, provincial and national) according to their functions and needs.
Implementation of recommendations
The NaTIS must be commissioned as soon as possible in all areas of the country, and the functionalities not yet covered in the NaTIS must be developed as soon as possible. Standardisation, to ensure the compatibility of all systems, is essential. The national Department of Transport should continue liaising with the provinces in this regard, and provinces should attend to this issue within their own areas.
Identifying the issues covered under this heading as being of secondary priority does not imply that they are unimportant. This position is merely that, in the past, the issues identified above as priorities have been underemphasised. Those issues should now receive priority treatment until a balance in traffic management is reinstalled. In the following sections, the issues to be addressed with regard to the functions of secondary priority are listed.
Incident management
Incident management, including the rendering of medical rescue services after accidents occurred, need to be enhanced. Roads and traffic authorities should be compelled to develop, implement and operate incident management plans, aimed at improving the effectiveness and efficiency of the services rendered, and minimising reaction times. Existing guidelines on the contents of an incident management plan should be used by these authorities. Specific attention should be given to the procedures for the management of incidents where hazardous substances are involved. The necessary emergency systems to deal with the various types of hazardous material, must be developed. The co-ordination and co-operation between the various parties concerned with providing road traffic related emergency services is inadequate, and must be improved.
The engineering discipline
The engineering discipline as a road traffic function involves transport and traffic engineering, operations management, and vehicle engineering.
In the area of transport and traffic engineering, road traffic quality (with the emphasis on safety) should be an important theme. This should be the case during all phases of providing the road infrastructure, namely the planning, design, construction, in-service and evaluation phases. Consensus should be reached on the integration of transport, road safety and land use planning; on the utilisation of road hierarchy strategies in traffic safety management; on geometric and other design standards of roads, taking into account the characteristics and abilities of the probable users of the road, which may differ from society to society; on "forgiving highway" requirements; on requirements regarding facilities for public passenger transport, pedestrians and bicycles along roads, and the need for rest and service areas along primary long distance roads; on the maintenance of road safety standards during road construction and rehabilitation; on integrated inter-modal planning; and on other traffic safety and quality related aspects. National guidelines on all theses and other relevant aspects not yet adequately addressed in existing standards, should be developed.
Traffic operations management should ensure road traffic quality and the orderly flow of traffic at acceptable levels of service. This involves the correct use of traffic engineering control devices such as traffic signals, road signs and road markings. Guidelines on the uniform use of traffic engineering control devices should be developed as a joint effort between the three levels of government. Road authorities should annually conduct a traffic quality audit of the road networks under their control, consisting of a systematic evaluation of all traffic quality and service level related aspects of the network. New standards for setting speed limits are needed. The standards should take into account the current realities on South African roads, including the high death and injury toll. The increasing age of vehicles, the increased level or urbanisation, and the traffic safety experience of other countries with comparable trip distances and patterns.
In the area of road vehicle engineering as part of road traffic management, the appropriate definition of vehicle standards are important. Existing vehicle roadworthy standards in the SABS 047 must be enforced successfully before authorities start attending to more complex problems. Roadside testing of the compliance of vehicles with critical roadworthy requirements must be increased. Vehicle examiners should be required to retrained, to be able to work according to the appropriate SABS standards. As the average age of vehicles on South African roads is increasing, a periodic test should be considered to guarantee acceptable standards of the growing population of old vehicles. National guidelines for such periodic tests, emphasising the safety features of older vehicles, should be developed. Other issues to be addressed include the deteriorating standards of public passenger transport vehicles and the reintroduction of a six-monthly testing of such vehicles, and a new policy on carrying passengers on goods vehicles. Attention to improved vehicle occupant protection devices (eg. seat belts, air bags, helmets for cyclists) and accident avoiding systems (brakes, stability, conspicuity) should be extended.
Support functions
The support functions include traffic legislation, information management, licensing and registration, and road traffic related research and development. Information management has already been dealt with as a priority issue. Further attention is required for the following:
Traffic legislation should be co-ordinated and harmonised under the guidance of the COLTO/MINCOM consultative structure, in accordance with the relevant agreements between the provinces and the national Department of Government. The national government, and specifically the national Department of Transport, should take the necessary steps to ensure the road traffic laws will be harmonised in the Southern African region.
Traffic laws, and specifically the RTQS, should be effective in achieving order on the roads, but should at the same time be practical, cost effective, oriented towards real road user needs, and easy to implement.
A zero rate blood or breath alcohol or drug level should be made applicable to drivers of public passenger and freight transport vehicles, with a compulsory suspension of the driver's licence of a public passenger and freight transport driver after a second conviction for an offence related to alcohol and other drugs.
Further issues to be addressed include the elimination of structural fragmentation in road traffic related management and planning on the provincial and local levels. In addition, research needs with regard to road traffic should in future be co-ordinated through the COLTO/MINCOM consultative structure, and the funding process for research should in future not only be focused on the execution of research projects but also on the implementation of the findings and the evaluation of its impact.
International harmonisation of road traffic policy
Since the recent normalisation of the relationship between South Africa and the other African countries, the trade and tourism links between South Africa and these countries have been expanded tremendously. The result is a significant growth in road traffic volumes between the relevant countries, and a growing need for harmonisation of policies and legislation. The development of an internationally harmonised road traffic policy in the Southern African region in the near future is therefore important.
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Transport infrastructure comprises all physical elements upon which transport operations take place. It covers all modes of transport and represents a significant portion of government's total financial investment in fixed assets. The total replacement value of current transport infrastructure in South Africa is of the order of R300 billion.
In addition to this the quality and distribution of transport infrastructure plays a significant role in operational costs for the total transport system. Very broadly three quarters of South Africa's internal freight and passenger movements are undertaken on roads with the remainder being mainly undertaken on rail, and only a small part being carried by air and coastal transport.
The proposed mission for transport infrastructure is:
"To provide an integrated, well-managed, viable and sustainable transport infrastructure meeting national and regional goals into the 21st century, in order to establish a coherent base to promote accessibility and the safe, affordable, reliable movement of people, goods and services"
The vision is that the transport infrastructure will
The strategic objectives for transport infrastructure to achieve this vision are to:
Key Policy Areas
Recommendations in key policy areas are:
Establish intermodal co-ordinating structures
Critical issue
The responsibility for infrastructure used by different transport modes is fragmented between different government departments and levels of government, making co-ordination very difficult.
Key recommendation
The establishment of intermodal co-ordinating structures and/or institutions is considered to be essential for the creation of sustainable, integrated, well-managed transport infrastructure. They must ensure integrated vertical and horizontal planning and information sharing.
Implementation of recommendation
It is proposed that:
The national Department of Transport (DoT) assume the role of co-ordinator of transport infrastructure for all modes of transport, including:
The policy regarding the role of the DoT in respect of pipelines needs to be considered in conjunction with the policy on the gas and petrochemical industry.
The DoT address intermodal integration issues. In this regard, a clear co-ordinating, information-sharing and integrated planning function should be added to the department.
The MINCOM structure should ensure co-ordination across national and provincial functions, and structures should be developed to provide for co-ordination between DoT and Transnet. The role of the DoT will primarily be that of strategic planning, and possibly facilitation.
Barriers to improved co-ordination between road and rail should be removed. The situation could be improved by
Maintain and develop the transportation infrastructure system, and prioritise its development in terms of needs
Critical issues
A fundamental consideration in reviewing the policy on transport infrastructure is its appropriate "size". This requires an answer to the question of how much infrastructure, and what type of infrastructure, the country needs.
There is a lack of long-term infrastructure planning.
It is generally agreed that cost-benefit analysis - which has traditionally been used for this purpose - is no longer sufficient for infrastructure project prioritisation under present South African socioeconomic conditions. In addition, there is the broader issue of fund allocation between geographic areas and between elements of transport (eg infrastructure vs. public transport).
A policy is needed for the development and maintenance of more appropriate decision support systems, which may include multiple criteria decision making techniques. There is a need to integrate transport planning with more general economic planning, e.g. through the establishment of activity corridors.
Past laws relating to Group Areas, Influx Control and Homelands had a marked impact on the pattern of land uses in South Africa's towns and cities, and indeed the whole process and pattern of urbanisation, imposing particularly high demands on the following:
In response to the above demands, transport planning has in the past been highly accommodative or "reactive", leading to the reinforcement of dispersed settlement and land use patterns. A similar accommodative approach had been followed in relation to past growth in the use of cars and the demand for car mobility. Dispersed settlement patterns, together with high levels of car use have highly adverse effects on environmental quality and sustainability.
Worldwide, there is a growing adoption of advanced technologies in order to enhance efficiency (improve capacity) and safety in transport and to decrease pollution. Such systems will eventually have major impacts on the functioning and administration of transport.
Key recommendations
The implementation of a management information system, based on indicators and models that enable demand to be quantified, and which will make requisite data available to planners, must be developed, in order to promote an integrated transport management approach.
National transportation infrastructure networks should be established, in conjunction with provincial and local government, as well as southern African countries. Certain ports and airports should be elevated to the status of "hubs" in keeping with international trends.
There is a need for the recognition and acceptance of the co-ordinating role of the South African Department of Transport on regional transport infrastructure matters.
A strategy on long term and integrated planning consistent with the needs of the country should be developed.
A multi-criteria decision-making system should be developed to maximise economic efficiency as well as social and developmental impacts of infrastructure.
A more sustainable approach to the provision of transport infrastructure is required, shifting from accommodative, supply-focused transport approaches to a more balanced approach including pro-active land use and transport demand management as part of the policy package.
The Department of Transport must play a more prominent role in relevant decision-making processes and forums on urban and rural development and land use.
The international development of advanced technologies must be monitored and those technologies deemed to be appropriate should be incorporated into the transport infrastructure and operational system.
Implementation of recommendations
Regional and national networks will be identified in such a way that network data and operational data (eg freight ton-km or passenger-km) are available to planners, government and private investors at all levels (this should also include planned future extensions).
Data will be computerised in a form that will make GIS-based decision support and sharing of data between different modes and government levels possible.
Linked to the above, there is a need to quantify demand and capacity directly through the normal transport planning methods, but also indirectly through the development of transport models and indicators. These indicators will assist decision-makers in the determination of priorities.
Capacity constraining links and nodes (including intermodal facilities) should be identified.
In some cases, where transport is able to act as a leading sector in the stimulation of economic development, the government should take the lead in establishing necessary transport infrastructure and promoting the participation of other public and private sector institutions in order to facilitate and accelerate the development process.
Hub ports and airports require to be properly equipped to maximise South Africa's participation in the global economy.
The data requirements for long-term planning of transport infrastructure should be established.
The topics and concerns to be covered in long-term infrastructure plans should be established, e.g. for 5/10/25 year planning.
Long-term infrastructure plans should be made to be compatible between transportation modes.
The development corridor approach, which involves national, provincial and local activities, should be adopted wherever possible, but in a rational manner to ensure efficient and sustainable agglomeration of activities.
Foster a sound financial base for transportation infrastructure
Critical issues
It will not be possible to achieve the mission for transport infrastructure without appropriate funding sources. In general, current funding levels are inadequate for:
The current exceptions are ports, airports, export rail lines and pipe lines.
Key recommendations
As far as possible, infrastructure should be funded through user charges and/or investments by the private sector.
Subject to market discipline, the necessary funding for the establishment and maintenance of transport infrastructure should be arranged through a variety of institutional models:
A climate that encourages private participation in the ownership, planning, financing, construction, maintenance and management of transportation infrastructure must be created. This should promote truly shared profit opportunities and risk-taking between the government and the private sector, whenever this is possible and appropriate.
Implementation of recommendations
Each type of infrastructure (road, rail, public transport facilities, etc) should be analysed and classified into sub-categories according to their suitability for cost recovery through user charging and/or investments by the private sector. The criteria that determine this suitability are: technical suitability and economic viability.
Barriers to private involvement should be eliminated. These include:
The government's ability to enforce current laws, and the private sector's willingness and ability to impose self-regulation, should be enhanced.
A framework for joint-venture projects should be established and major joint-venture projects should be identified.
Future policies must encourage provincial governments to adopt similar approaches.
Promote a strong, diverse, efficient and competitive industry
Critical issue
Diversity and keen intermodal competition which are essential to an effective transportation system are not features of the South African transport system.
Key recommendations
Government policy should promote equal competitive opportunities among the transportation modes and encourage co-operation among modes to enable each mode to realise its inherent advantages.
Implementation of recommendations
A cabinet task team is currently investigating ownership and institutional structures in respect of transport assets and the recommendations of this task team should be expeditiously implemented.
Environmental protection and resource conservation relating to transport infrastructure
Critical issues
It is generally agreed that the South African economy, in line with the developed world, will have to adapt her economic growth policies to the requirements of environmentally
sustainable development in future. Apart from any other considerations, this will be necessary to assure continued survival in the global economy.
From the relationship "economic growth depends on transport operations depends on transport infrastructure", it follows that infrastructure should be provided and used in a way that is consistent with sustainability.
Key recommendation
Infrastructure itself must be environmentally acceptable, which means that planning for the provision of infrastructure should include the performance of environmental impact assessments (EIAs). Issues to be considered are environmental impacts, energy conservation and the transport of hazardous materials. These should be expanded to also cover aspects such as the conservation of infrastructure building materials.
Implementation of recommendation
As and when it becomes clearer, through international debate, what implications sustainability has for the provision and use of transport infrastructure, that the co-ordinating structures proposed earlier take these implications firmly and explicitly into account in their activities.
Critical issues
The critical issues are
Key recommendation
It is proposed that performance indicators must be developed for different types of infrastructure and levels of service to measure the extent to which "quality of life" issues are being met in the provision of transport infrastructure and to adapt where necessary.
Implementation of recommendation
Inventories of requirements and indicators should be compiled to allow progress to be monitored on a regular basis.
All other institutions involved in transport infrastructure provision should be encouraged to follow the same course.
Clear guidelines on acceptable, equitable and efficient public involvement processes should be established and followed by planners as well as public interest groups.
Advance human resource development in the provision of transportation infrastructure
Critical issues
Throughout the transport sector, the current situation is that there is a lack of demographic representation in senior positions; there is a lack of gender equality; line departments and parastatals do not seem to be adequately engaged in training; there is a lack of competency recognition and lack of clear career paths. In addition, although money has been made available for training, more direction in its application is required.
Key recommendations
Affirmative Action in the transport infrastructure provision sphere should be accelerated and monitored.
Training needs for provision, maintenance and operation in transport should be identified and quantified, (e.g. skills inventory, new skills required) and matched where applicable with skills provision through avenues such as Centres of Development, universities, technikons and technology transfer centres (e.g. technical, managerial and business skills).
The establishment of small enterprises or labour intensive projects or skills transfer conditions in large contracts should be managed from a human resource development point of view.
Implementation of recommendations
Line departments and parastatals involved in transport should be encouraged to set targets for gender and racial balance.
The DoT engage the Department of Education and the Foundation for Research Development in order to specifically highlight needs in the transportation sector.
Career pathing should be created that enables realisation of individuals' full potential once competence has been established.
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This document has highlighted a number of initiatives which are required to be put into place to implement the revised policy approach towards Transport in South Africa. In addition it has provided a framework within which transport institutions - government, statutory and private - should tailor their individual policies and strategies towards an effective and efficient transport system which will meet the social and economic needs of all sectors of our society.
These initiatives embrace a variety of actions, stretching from investigations to legislation. Some typical examples of these actions are:
Implicit in the proposals contained within the report is the need to change the institutional framework which governs transport in South Africa. Certain actions have already been taken in this regard - relating to the relative powers and functions between central and provincial government, however there remains much work to be done, particularly in regard to the government initiative in respect of the restructuring of State owned enterprises. Another area which will require attention is that relating to the interaction between provincial and local government - particularly since the policy proposals emphasise the major role to be played at local government level in public passenger transport.
It is envisaged that, in general, the role to be played by the Department of Transport in future will relate more to broad policy and strategy matters, regulation of potential monopoly situations where necessary, research into, and the promotion of, transport and intermodality in transport, approaches to transport financing and standards, including service levels, as well as general overall guidance. The primary agents for execution of the transport function will in future be provincial and local government, and independent statutory transport agencies.
The proposals for a revised transport policy contained in this Green Paper have followed the traditional public policy making process which includes consultation and interaction with all significant role players regarding issues to be placed on the agenda, as well as being based on extensive research and investigation into policy alternatives to address these issues. This Green Paper is the next step in the process wherein comment is solicited on policy proposals to address the identified issues. The document will be supplemented by a plenary meeting to discuss the policy proposals in an open forum. Following an analysis of these fora, government will lay before Parliament a White Paper on Transport Policy setting out its stated transport policy proposals. After a sufficient period for debate on the issue appropriate legislation and regulations to implement the policy decisions will be prepared for submission to Parliament. The public policy making process is a dynamic and continuous one since implementation of the proposals and experience in their application will be monitored and, no doubt, once more lead to issues for the policy agenda.
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