National Transport Policy Green Paper | South African Government

Overarching framework for transport policy

Foreword

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 all three levels of government.

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.

Mac Maharaj
Minister of Transport

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Introduction

What is a Green Paper?

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.

Green Paper on National Transport Policy

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 first 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. Their contents were summarised into a draft Green Paper, which was discussed at a second plenary meeting in February 1996, and the Green Paper then finalised.

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 addressed through a multi- faceted functional process.

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 of transport, has been identified as a facet for which policy is required.

Land, air, and sea transport operations have been addressed separately:

Land passenger transport
Land freight transport
Air transport
Maritime 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.

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.

Institutional issues

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 has been 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 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.

This Green Paper therefore only addresses broad National Transport Policy. It however provides a framework within which it is trusted the other two levels of government will frame their specific detailed Transport Policies.

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), proposals for structural institutional and ownership arrangements for Transport have been recommended to Cabinet by a task team on restructuring of State Owned Enterprises. A National Framework Agreement has been developed between Government and Labour which will inform the restructuring process.

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.

Illustrative Statistics

In order to provide the reader with a grasp of the extent of the South African transport system, a few illustrative statistics are provided in each section. These have been derived from a variety of sources, including the Central Statistical Services, the Department of Transport, Transnet, the Airports Company, and CSIR. Some more detailed statistics are available from the Department of Transport, although there is a dearth of reliable transport statistics and indicators relating to some elements of the South African transport system.

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The overarching framework for transport policy

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.

Vision

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, and
ensuring the safety of all transport participants.

More specifically, transport planning will support appropriate strategies, such as development corridors, 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.

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 must 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.

Integration

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.

Key Thrusts

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). 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 appropriate levels of service for defined customer groups and minimise 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.
Human Resource Development. Needed skills and technologies should be identified, including defining current levels and methods for achieving those needed in the future, such as training and education through industry training boards.
Fair and acceptable labour practices, workers' rights, job creation and security, health and safety, and welfare benefits of employees in the industry should be promoted.
Ensuring Competition. Current levels of competition, the platforms on which such competition occurs, the sufficiency or insufficiency of competition, the presence of any monopolies, and policies necessary to regulate monopolies or optimise competition without prejudice to the parties involved 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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Policy options and proposals

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:

Infrastructure
- Transport infrastructure (all modes)
Operation and Control
- Land passenger transport
- Land freight transport
- Civil aviation
- Maritime transport
- Road traffic

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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Transport infrastructure

Scope

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 (see Table).

There is currently no consensus on methods for determining replacement values (e.g. current balance sheet value versus potential market value versus real replacement value, including land values).

The responsibility for different transport modes is fragmented between different government departments and levels of government, making coordination very difficult.

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.

There is no clear categorisation of local authority aerodromes. The DoT classifies them only into public and private aerodromes.

Three quarters of the total tonnages at ports is bulk cargo, one eight is breakbulk, one eight is containerised.

Transshipment cargo statistics indicate that only three national ports can be classified as hub ports, i.e. Durban, Cape Town and Port Elizabeth.

Mission

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

be in place for South Africa to be the hub for transport in Southern Africa
be promoting sustainable economic development by removing constraints on latent demand in development corridors at local, provincial, national and regional level and be providing the catalyst for private investment
be structured to encourage public passenger transport and to discourage excessive private passenger transport
allow for seamless intermodalism
be financed through a combination of user charges and private/public sector investments
provide adequate accessibility together with safety and security within the constraints of social affordability
incorporate technological advances which promote and enhance the role of transport in the economy and development
be structured to ensure environmental sustainability and internationally accepted standards

Strategic objectives

The strategic objectives for transport infrastructure to achieve this vision are to:

Establish sound intermodal co- ordinating structures
Maintain and develop the transportation infrastructure system, and prioritise its development in terms of sustainable economic and development needs
Foster a sound financial base for transportation infrastructure
Aid the promotion of a strong, diverse, efficient and competitive transportation industry within the limits of sustainable transport infrastructure
Promote environmental protection and resource conservation
Enhance the competitiveness of South African industry and the quality of life of its citizens by providing protection of consumers, safety and security, and meeting accessibility, reliability and mobility needs by providing transport infrastructure to serve the purpose
Advance human resource development in the provision of transportation infrastructure

Key policy areas

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 is considered to be essential for the creation of sustainable, integrated, well-managed transport infrastructure, in order to 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:
- rail
- road
- ports
- airports
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 should 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 be tasked to address intermodal issues. Structures should be developed to provide for co-ordination between DoT and Transnet, with links to the MINCOM structure. 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
- benchmarking (locally, internationally)
- information sharing
- integrated planning
- creation of a single co-ordinating body

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 need for the redefinition of national networks, linked to local economic activity and demographics, and also southern African networks.
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:
- the provision of road infrastructure along the main routes of oscillating migration
- the provision of road infrastructure and subsidised public transport along long- distance commuter routes.
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

A comprehensive 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. The primary roads network should be defined. 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. Previous needs studies should be expanded upon.
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:

new infrastructure, covering the whole spectrum of infrastructure from a national level to a local level
the maintenance of the existing infrastructure
the upgrading of the existing infrastructure where there are capacity constraints or unacceptable service levels
intermodal facilities

Key recommendations

As far as possible, infrastructure should be funded through user charges and/or investments by the private sector. The value of indirect infrastructure related returns should be considered.
Subject to market discipline, the necessary funding for the establishment and maintenance of transport infrastructure should be arranged through a variety of institutional models:
- Public ownership and operation by state departments
- Public ownership and operation by a state enterprise or department (e.g. Airports Company or Roads Agency)
- Public ownership with private operation
- Private ownership and private operation.
- Joint ventures between the public and private sectors.
Innovative ways of raising funds should be considered.
A climate that encourages private participation in the ownership, planning, financing, construction, maintenance and management of transportation infrastructure must be created. Consideration should be given to the creation of a new forum between the private sector and the Department of Transport, which will allow pro-active participation of the private sector. 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.
Possible sub-categories of infrastructure are:
- social access, requiring government funding or "subsidy"
- infrastructure suitable for indirect user charging, e.g. fuel levies, license fees, tax on fares
- infrastructure suitable for private sector investment, e.g. toll roads
Barriers to private involvement should be eliminated. These include:
- legislation
- attitudes within transport authorities
- financial rules
- perceptions about government commitment
In order to ensure efficient functioning of the proposed forum, principles and guidelines for private sector involvement should be established. Progress should be reviewed regularly. A framework for joint-venture projects should be established and major joint- venture projects should be identified. The government's ability to enforce current laws, and the private sector's willingness and ability to impose self- regulation, should be enhanced, in order to create a more stable environment for investment. 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.
The strategic value of state ownership of infrastructure should be re- assessed. Ownership and regulation of transport infrastructure should be separated, whether state owned or privatised.

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.
Regulatory structures should be established, where they are appropriate but do not exist.

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. Environmental issues should explicitly form part of multiple criteria decision-making systems.
Current guidelines on environmental issues should be expanded upon. Linkages with other relevant government departments are necessary.

Enhance the quality of life of all citizens of South Africa

Critical issues

Accessibility and mobility
Reliability
Affordability
Level of service and performance measurements
Safety and security
Access to information
Protection of consumers
Public involvement

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.
Infrastructure to provide access to information should be considered, including the compatibility of information system architectures.

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.
An holistic framework for human resource development, specifically focused on the transport sector should be developed and should include the accreditation of all processes.
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 and formal construction contracts (e.g. technical, managerial and business skills).
The establishment of small enterprises addressing infrastructure provision and maintenance should be encouraged. Potential barriers to entry, such as contract documentation and specifications should be removed by the establishment of documentation and conditions appropriate to small enterprises (where applicable, labour intensive construction methods). Large contracts should be managed from a human resource development point of view, i.e. skills transfer conditions for the establishment and advancement of small enterprises as an entry into the formal contracting sector.

Implementation of recommendations

Line departments and parastatals involved in transport should be encouraged to set targets for gender and racial balance.
As part of the holistic framework for human resource development in the transport sector, the DoT should engage the Department of Education and the Foundation for Research Development in order to specifically highlight human resource development needs in the transportation sector. Mechanisms should be established for accredited career pathing.

South African transport infrastructure illustrative statistics

Mode	Owner or responsbile authority	Approximate length or number	Approximate replacement value
Rail	SPOORNET Trunk lines Branch lines Yards and sidings	23000 km 2500 km 8500 km	R 85 billion
	SARCC	2600 km	R 12 billion
	Private lines and sidings	8000 km	R 4 billion
	Total	44600 km	R 101 billion
Roads	National/Department of Transport	6000 km 15 billion veh-km/year	R 23 billion
	Provincial	176000 km 40 billion veh-km/year	R 107 billion
	Local	47000 km 45 billion veh- km/year	R 30 billion
	Developing rural and urban areas	35000 km	>R 2 billion
	Total	264000 km	>R 162 billion
Airports	State airports (ACL)	9	R 10 billion
	Other public airports	121	NA
	Private airports	74	NA
	Heliports and helistops	180	NA
	Total	384	>R 10 billion
Seaports	PORTNET	7	R 10 billion
	Dept of Environmental Affairs & Tourism	14	NA
	Local Authorities	NA	NA
	Total	>21	>R 10 billion
Pipelines(excluding water)	PETRONET	3000 km	>R 2 billion
	GASCOR (SASOL)	820 km	R 1 billion
	Total	3820 km	>R 3 billion
TOTAL			>R 286 billion

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Land passenger transport

Scope

The Land Passenger Transport Policy encompasses all forms of public and private passenger movement on land, including the travel modes rail, bus, minibus-taxi, metered 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 planning 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. Subsidiarity is the exercising of devolved power at the lowest competent level of government. Devolved transport powers and functions may either be exercised exclusively or concurrently with a higher level of government.

In accordance with these guiding principles, the mission of the Department of Transport in respect of land passenger transport is to provide leadership in:

"The promotion of an efficient and effective, co-ordinated, integrated, affordable, safe, reliable and environmentally friendly land passenger transport system in urban and rural areas, managed in an accountable manner to ensure that people experience improving levels of mobility and accessibility".

Strategic objectives

The strategic objectives for land passenger transport are:

Funding

To ensure sustainable and dedicated funding for both passenger transport infrastructure and operations

Spatial

To encourage more efficient urban land use structures, correcting spatial imbalances and reducing travel distances and times for commuting to a limit of about 40 km or one hour in each direction
To promote the use of public transport over private car travel, with the goal of achieving a ratio of 80:20 between public transport and private car usage
To promote rural development that will improve access to opportunities by ensuring that rural workers are housed in close proximity to their work locations and services, thereby reducing the need to travel
To encourage, promote and plan for the use of non-motorised transport where appropriate

Customer-based

To ensure that passenger transport services address user needs, including those of commuters, pensioners, the aged, scholars, tourists and the disabled
To improve accessibility and mobility, limiting walking distances to less than about 2 km in urban areas
To provide an appropriate and affordable standard of accessibility to work, commercial and social services in rural areas
To ensure that public transport is affordable, with commuters spending less than about 10 percent of disposable income on transport
To promote safe and secure, reliable and sustainable passenger transport
To provide readily-accessible information for the assistance of passenger transport users

Planning and Regulatory

To provide appropriate institutional structures, which facilitate the effective and efficient planning, implementation, funding, regulation and law enforcement of the passenger transport system, devolved to the lowest competent level
To provide for the registration of all public transport operators as formalised commercial entities, bound by the regulations pertaining to their permission to operate
To replace operator permits with permissions (authorities) issued in terms of approved passenger transport plans
To promote and implement a system of regulated competition for tendered public transport routes or networks

Operational

To empower and assist disadvantaged operators to participate meaningfully in the land passenger transport system
To ensure that operations become economically viable, requiring the minimum financial support
To foster a stable investment environment in the public transport industry
To encourage a professional approach to the management and operation of land passenger transport
To foster manpower and human resources development
To ensure that transport modes are integrated in respect of scheduling, routes and ticketing systems
To promote acceptable and fair labour practices in the transport industry
To ensure that land passenger transport operations are more environmentally sensitive and sustainable, and are energy efficient

Central government will specify key performance indicators (KPIs) in respect of the strategic objectives. The KPIs will facilitate monitoring of the progress of provinces and local authorities in implementing the vision for land passenger transport.

Key policy areas

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:

land use development proposals must be subject to a land use/transport policy framework within an agreed development planning process;
the effective functioning of cities and industrial areas must be enhanced through integrated planning of land use, transport infrastructure, transport operations and bulk services.

Implementation of recommendations

Policy actions necessary to provide for urban restructuring (densification) and efficient land use/transport interaction include:

establishment of structures (all tiers of government) which facilitate integrated planning of infrastructure, operations and land use in a co-ordinated manner;
regulation of land use development at local level so that development approval is subject to conformity with integrated land use/transport plans;
land use frameworks, guidelines and policies should channel development, particularly employment activities, into public transport corridors and nodes.
development priority should be given to infilling, densification, mixed land use and the promotion of development corridors and nodes;
containment of urban sprawl and suburbanisation beyond the urban limits should be addressed through provincial spatial development plans;
decentralisation which disperses employment activities must be discouraged;
unrestrained car usage and subsidised car parking should be contained through the application of policy instruments including strict parking policies, access restrictions for private cars, higher licence fees, road pricing and area licensing.

Representation of transport interests on development commissions and tribunals established in terms of development planning legislation will assist in ensuring implementation of these recommendations.

Caution should be exercised by authorities in implementing these recommendations, to avoid unnecessary bureaucracy which may stifle development initiatives.

Institutional structures

Critical issues

The Constitution of the RSA, 1993, has devolved the functional areas of land passenger 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:

metropolitan co-ordination, land usage and transport planning;
arterial metropolitan roads and stormwater drainage;
public passenger transport services; and
traffic matters.

No comprehensive enabling legislation currently exists for land passenger transport. Although the Constitutional Transformation Process (CTP) agreed by MINCOM has clarified the relationships between the various levels of government, and broad agreement has been reached on the division of functions between central and provincial government, further clarification of the exercise of specific powers and functions is required. The CTP agreement governs relationships affected by the assignment of existing legislation to provinces and may be affected by new over-arching land passenger legislation.

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 over-arching Land Passenger Transport Act will be compiled at national level, clarifying the relationships between levels of government, and further defining concurrent and exclusive powers.

Implementation of recommendations

The Land Passenger Transport Act will specify the allocation and execution of national, provincial and local passenger transport powers and functions.

Central Government

National functions will be as follows:

macro passenger transport policy;
norms and standards;
strategic planning;
transport research and studies;
funding of some infrastructure projects in the national interest;
demonstration projects;
aspects of transport-related training;
international road passenger transport agreements and regulations in collaboration with the
relevant provinces;
some inter-provincial passenger transport matters.

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, district and local transport areas, the provincial transport department will be fully responsible for ensuring the provision of rural transport infrastructure, facilities and services. Provincial functions and responsibilities include:

administration of long distance passenger transport in consultation with other provinces;
developing provincial land passenger transport policy and legislation;
delimitation and designation of passenger transport areas and transport authorities (MTAs, DTAs or LTAs);
setting provincial norms and standards;
co-ordination of passenger transport among lower level authorities;
implementation, monitoring and revision of provincial passenger transport policy;
approval of transport plans;
ensuring and, where appropriate, undertaking the planning, design, construction, maintenance and funding of public transport operations and infrastructure;
ensuring the provision of public transport services;
provision of transport funding including subsidisation;
co-ordination of land use and transport planning at provincial level;
advising the provincial Development Tribunals to ensure that policies in the provincial and local
transport and spatial development frameworks are reflected in development decisions; and law enforcement.

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.

Services, district and local structures

Services, district and local councils will act as 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 services, district and local structures and, in particular, rural bodies which have little or no competence to administer the function.

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. 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. 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.

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.

Regulated competition is defined as follows:

where public transport services require government funding support, for example for welfare, or traffic management, or strategic reasons, competition will take the form of tendered contracts (competition on routes or networks will then be precluded);
where public transport can be rendered as profitable commercial services, on-the-road competition will be encouraged, with competition being regulated through the issuing of permissions based on capacity management in terms of the supply policies of the provincial or local passenger transport plans (PTPs). (For example, this will apply to inter-city coach services, certain long-distance minibus-taxi services and viable short-distance urban services.);
charter services will be fully competitive with the granting of permissions being based solely on compliance with safety and traffic regulations.

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.

Contracts will only be awarded to privately-owned or corporatised municipal and parastatal bus companies and registered minibus operators to ensure that there is fair competition between competing tenderers. All road-based public transport operators should:

operate as separate legal entities from any level of government;
have no direct access to finances other than on a commercial basis;
operate on business principles; and
be liable for taxation.

Successful tenderers, when awarded a contract, will automatically be awarded a permission to operate. Permissions for unsubsidised services will also be awarded only to registered operators on the basis of a PTP. Contracts shall only be awarded by the transport authority to a recognised route entity, co-operative, association, close corporation, company or a legal person, and should be based on a passenger transport plan.

Rail operations should be based on operating and maintenance concessions, awarded by transport authorities, 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. The number of permissions granted on a route or network will be determined by need (demand) estimated in terms of the PTP. 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 authority will own the rail infrastructure, rolling stock and land associated with rail reserves. Steps will be taken to utilise rail reserves in accordance with transport plans and spatial development frameworks. Operating and maintenance concessions will then be awarded by the transport authorities at provincial or metropolitan level. 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 public 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:

the absence of dedicated funding sources for passenger transport;
inadequate funds to ensure the implementation of long-term plans;
the funding of public transport operations through multiple sources and channels;
the imbalance between spending on infrastructure and operations.

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 within the limits of affordability. 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 passenger 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 base mechanism for subsidising road-based public transport is the competitive tender. In the application of funds to support public transport or assist targeted users, transport authorities will be expected to determine the details of the mechanism which suit local conditions. Concessionary fares for different types of user should be considered to target special categories of passengers. Transport authorities have total discretion in deciding whom should be the beneficiaries of targeted subsidy.

The Department of Transport, in collaboration with other government departments, will develop mechanisms to assist, especially the minibus-taxi industry.

Supporting recommendations

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 and will be a priority in the transitional restructuring of the passenger transport industry.

Special categories of passenger

The approach to passenger transport should shift priority from private to public transport and within the latter sector from the provision of primarily peak period commuter services 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.

Rural passenger transport

The need to give attention to rural passenger transport is recognised. Accordingly, a national investigation should be undertaken to develop a guideline and framework of principles for rural passenger transport policy. Different principles should be investigated including "mobile service centres", minimum accessibility standards, rural settlement patterns, integration of urban and rural areas and integrated freight and passenger services. The framework should be developed by central government in collaboration with provincial ministers.

Comprehensive integrated planning

It is essential for land 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, should be discouraged since the passenger transport plan should be comprehensive and cover all modes and the spatial integration of land use activities.

The planning endeavour should, at the least, address the strategic objectives of the Department of Transport.

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Land freight transport

Scope

"Land Freight Transport" as a focus area of transport policy embraces both domestic and international conveyance of goods by road and rail and is concerned with: the quality of service to the satisfaction of customers and users (including cost, reliability and timeous delivery); seamless, intermodal operations; optimised use of capacity and management of operations; protection of its infrastructure; and minimized impact on the environment and natural resources.

"Intermodal transportation" is the concept of transporting freight in such a way that all the parts and facets of the transportation process, including information exchange, are efficiently linked and coordinated, offering flexibility. It is not just the infrastructure, vehicles, rolling stock or equipment involved, but the management and operation processes. The true advantage of intermodalism is the ability to logistically and effectively link two or more modes of transportation for the benefit of customers and users.

The principal "Functional Areas" of Land Freight Transportation are: Management of operations; maximising modal capacity; equitable infrastructure cost recovery; administration and institutional aspects; harmonisation of technical standards; and the interface with all related stakeholders, organisations, governments and groups of governments.

More detailed issues concerning these principal areas include the following:

Land freight transport management and operations: the collection and interpretation of transport information, (including freight inventories; origin-destination studies; and forecast); the promotion of seamless services; effective interaction between modes and logistical services; and communications between government, mode owners, operators and logistical services.
Modal capacity: the optimum use of existing capacities; cost benefit studies; infrastructure ownership, maintenance and operational alternatives; social services; and the need for a national forum to promote, harmonise and optimise modal capacity.
Equitable distribution of infrastructure costs: promotion of a user pay concept; impact of infrastructure pricing on modal mix and tariff distortions; and effective modal co-operation and interaction.
Administration and institutional aspects: harmonisation of respective responsibilities of authorities at the different levels of government; standard policies to cover safety, security and technical aspects; sub-division of certain rail networks within provincial boundaries; improved interactive relationship between the Ministries of Transport and of Public Enterprises; regulation and intervention; and dispute resolution.
Cross-border operations: participate as an active member of multilateral organizations and conduct bilateral relations on the basis of a results-focused strategy; apply regulatory policies to cross-border road freight services with due regard to the need for a complementary intermodal relationship; manage cross-border routes effectively to promote optimal utilization through appropriate information collection and management support systems to facilitate road transportation regulation and provide accessible information to both authorities and operators; facilitate and expedite procedures at border posts; contribute to the reduction of the constraints imposed on the transport industry resulting from procedures and practices applied by other government agencies which impact negatively on transport efficiency; and promote specific routes or corridors to optimise transport management.
International relationships: promote South Africa as a control hub for Southern Africa regional rail systems; support and development of rail systems in different countries; harmonisation of the Sub- Saharan road transport system; a participative relationship with international organisations, other governments and groups of governments; and the promotion of a primary road and rail network for the Southern Africa Region.
Road traffic and transport law enforcement on the road network: compliance with vehicle and driver requirements; reduction in road damage with specific emphasis on vehicle overloading control; compliance with permit requirements; unauthorised motor transport; failure to comply with vehicle marking requirements; false permits; and a uniform approach to enforcement.

(Some of the above areas overlap with other policy areas addressed in this document and, where relevant, for example road traffic law-enforcement, are being dealt with more comprehensively in such sections).

Land freight transport in South Africa summary statistics

Million tons/year by private road hauliers	Million tons/year by road (Transnet)	Million tons/year by rail (Transnet)	Percentage of tonnage by road	Percentage of tonnage by rail
399	2	178	69 %	31%

Mission

The mission for Land Freight Transport is:

"To provide safe, reliable, effective, efficient and fully integrated land freight transport operations and infrastructure which best meets the needs of customers at improving levels of service at an equitable cost in a fashion which supports government strategies for economic and social development while being environmentally and economically sustainable".

The land freight quality-related and other needs of the community and customers are to be determined and provided for by a transparent, consultative, coordinated and accountable process, based on comprehensive information.

Strategic objectives

The strategic objectives for Land Freight Transport in order to fulfil this mission are to:

Develop a comprehensive land freight transport information system
Establish encompassing stakeholder consultative forums
Promote the provision of seamless intermodal services
Optimise current capacity and maintain and develop the land freight transportation system, and prioritise issues in terms of sustainable economic and development needs
Find a practical and reasonable solution that leads to an equitable distribution of infrastructure capital, management, 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 substances 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
Optimisation of road transport law enforcement

Key policy areas

The existing domestic 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, management, operation, and maintenance costs.

A more equitable distribution of infrastructure cost recovery (capital, management, operating and maintenance) will make a positive contribution to reducing artificial modal shifts and distorted tariff structures created by cross-subsidisation. 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, management, 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. Stakeholders and operators should agree to 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.

Road traffic law enforcement

This critical issue is comprehensively dealt with in the section on Road Traffic Policy.

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, customers and users, 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.

Supporting recommendations

The establishment of a close, interactive and formal working relationship between the Department of Transport, the Department of Public Enterprises and Transnet in order to promote coordinated planning, management and operations with regard to land freight transport.

The establishment of formal consultative forums between government, public and private sectors, operators, stakeholders and users in order to promote interactive participation towards the establishment of an acceptable, effective land freight transportation system.

The establishment, operation and maintenance of a land freight transport information system which should contain, amongst others, freight conveyance patterns and routes, domestically and internationally; types of goods on different routes; main origins and destinations; value; tonnages carried; etc. Such a system should also provide for needs and growth forecasts.

Develop uniform regulations and policies to ensure safety, security and technical aspects with regard to land freight transportation. (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. Matters concerning safety and security should be strictly controlled and enforced by government enforcement agencies.)

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.)

On rail tariffs: The current rail structure clearly benefits some regions above others due to artificial pricing and cross subsidization. This results in severe under-development in certain provinces. Serious consideration therefore needs to be given to rail tariff / pricing determination. The principle of equity (economic principles such as distance, mass, space consumed etc.) should be applied to ensure that no rail route or region benefits above another in terms of unfair competitive advantages. This equity principle should be nationally regulated until such time that various routes and operators are not owned by the same institution i.e. Transnet.

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; transport and traffic legislation; clearing procedures at ports and border posts and other relevant aspects. The present situation frequently prejudices South African road transport operators in particular and land freight in general.)

Ensure effective road transport law enforcement and management of cross-border routes to further ensure compliance with legislation and promote equitable competition in road transport.

Establish an effective method to resolve disputes. (This will contribute 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.)

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 Environmental Affairs and Tourism; the Department of Water Affairs 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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Civil aviation

Scope

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 airspace.

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.

Currently, approximately 9,5 million passengers per year are transported on scheduled domestic air services. This is in comparison with a figure of 5,1 million passengers per year in 1976, which represents a growth rate of 3% per year over the said period.

Internationally, the number of passenger amounts to approximately 3,5 million passengers per year at present. The market has grown at an average rate of 4% per year over the past 20 years.

There are at present 18 South African airlines licensed to operate domestic scheduled air transport services and 10 airlines to operate international services. 138 domestic and 99 international South African operators are licensed to provided non-scheduled services.

South Africa has currently 85 bilateral air services agreements with foreign countries, in terms of which 55 foreign airlines are currently providing scheduled international air transport services to South Africa.

The number of aircraft registered in South Africa has grown at a steady rate over the past 35 years, namely, at an average of 6% per year. Currently, there are 6 200 aircraft on the South African register.

Mission

"To maintain a competitive civil aviation environment which ensures safety in accordance with international standards and enables the provision of services in a reliable and efficient manner at improving levels of service and cost 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:

Civil aviation should promote the national interests of South Africa in general, and facilitate and enhance the expansion of trade and tourism, in particular
Civil aviation policies should promote the development of an efficient and productive aviation industry which is capable of competing both domestically and internationally
Economic decisions should, as far as possible, be subject to general competitive principles applicable to all industries, with a view to maximising consumer choice and needs satisfaction
User interests are of prime concern, and aviation policies should therefore serve the needs of passengers and other consumers
Civil aviation policies should enhance the provision of safe, reliable and efficient services
Civil aviation should contribute to the development of human resources, the meeting of basic needs, broadening participation in the economy and the goals and objectives of the RDP, in general
Control over the civil aviation industry should be maintained within a well-defined regulatory framework that can cater for changing needs and circumstances and ensure the provision of orderly, safe and reliable services
Sovereignty of airspace should be retained and should continue to be vested in the State
Civil aviation policies should encourage participation in the aviation industry by creating an environment where investors can realise adequate returns on their investments
International relations with other countries, groups of countries and international organisations involved in aviation, should be promoted
Civil aviation should contribute to the improvement of the environment

Key policy areas: Domestic

Domestic air transport

Critical issues

Three critical issues were identified, namely:

Reviewing the current policy within the new political and economic environment
Strengthening of entry criteria
Ownership of airlines

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:

Safety is of paramount importance, which means that the quality of operators regarding those aspects which affect operational safety should be enhanced
Economic decisions should, subject to the general controls over economic activity applicable to all industries, be left to competitive forces to resolve
Users' interests and views should specifically be taken into consideration
All participants in the domestic air transport market should be treated equally before the law, meaning that operators should be subject to the same rules.

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 applicant's ability to provide a safe and reliable service
The applicant's adherence to the prescribed requirements for insurance
The requirement that 75% of the service be owned by South Africans
The requirement that, excepting with prior approval, South African aircraft are to be used in providing the air service; and
That the air service would actively and effectively be under the control and management of the applicant.

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.

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. Requirement in this regard should be strengthened.

Ownership of airlines

There are currently three airlines owned by government as parastatals. South African Airways is part of Transnet Limited. Government furthermore inherited two airlines from the Governments of the former TBVC States, namely, Sun Air, from the former Bophuthatswana Government, and Transkei Airways, 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. The issues are, inter alia: 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.

Key policy recommendations

That the current principles on which the domestic air transport policy are based, continue to be:

safety of paramount importance
market driven services
users' interests and
equal treatment.

That the Department of Transport and ASLC, in consultation with stakeholders, continue to refine the details of the policy, as and when necessary, within the framework of the accepted principles.

That the Department of Transport strengthen financial entry requirements for domestic services to prevent disruption of services due to unqualified operators.

That, in order to meet the principle of equal treatment of all participants in the market, which is being jeopardised by the State ownership of airlines, the State reduce its direct involvement in the provision of air services in what is meant to be a deregulated and openly competitive environment. That ownership should not be made an issue of principle but commercial decisions which promote the goal of economic growth should be made the focus.

Implementation of recommendations

That the Department of Transport inform the process on the restructuring of State assets in the transport sector, of the policy guidelines on competition and equal treatment, with the request to consider their implications on the proposed action plan.

Aviation safety

Critical issue

The promotion and implementation of world class safety standards.

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 of Transport continue with the application of its current aviation safety policies within the broad framework set by ICAO.

Implementation of recommendation

That the Department of Transport revise the current aviation regulations with a view to ensuring their consistency with the ICAO framework.

Institutional arrangements

Critical issue

The lack of resources (personnel and funds) hampers the CAA in carrying out safety and related functions effectively and efficiently.

Background

Following the acceptance and implementation of the commercialisation policy, which lead to the formation of service providing companies to provide air traffic services and to manage the former 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. At present, 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.

Implementation of recommendation

That the Department of Transport proceed with an investigation into the restructuring of the current CAA, and that the following aspect, among others, be considered and evaluated as part of such investigation, namely:

the possibility of creating an independent authority
various ways of funding the activities of the restructured CAA or making it financially self sufficient the possibility of separating the function of investigation of accidents and incidents from the restructured CAA and
the establishment of an aviation court.

Airports and airspace

Critical issues

Three critical issues were identified, namely:

The formulation of a national policy on airports and airspace management
The commercialisation of former State airports and the provision of air traffic and navigation services
The future ownership of the Airports Company (ACL) and Air Traffic and Navigation Services Company Limited (ATNS).

Background

National policy on airports and airspace management

As a result of the commercialisation of the former State airports and the provision of air traffic and navigation services, and the provision in the interim Constitution that certain airports are a provincial function, the question arises as to what role central and provincial governments should play in respect of airports. Various provinces have, for instance, expressed interest in constructing provincial airports. The question is therefore whether these initiatives should be coordinated 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 the 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), including new requirements on communications, navigation, and surveillance and air traffic management (CNS/ATM), which will allow the most efficient flight trajectories. 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.

A further question is 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.

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:

State airports and air traffic and navigation services should be operated on a commercial basis
State airports and air traffic and navigation services should be financially viable without long- term support from Government
Users should pay cost-related prices for the services they received from airports and air traffic and navigation services
Since the ACL and ATNS are providing services which are monopolistic in nature, tariffs and service standards should be broadly regulated while such monopolistic conditions exist
The commercial approach to airports should neither jeopardise the general interests of the State, nor the essential functions carried out by the State at airports, e.g. customs and immigration.

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 South African State Airports Policy Review recommended that a minority stake in ACL be sold to a strategic investor in order to attract foreign capital, technology and management skills.

The ATNS should, however, remain a fully State-owned company operating with a focus on providing quality services and be able to recover the costs of its operation and provide for expansion.

Key policy recommendations

That a national policy on airports and airspace management be formulated.

That the current situation whereby the former State airports and the provision of air traffic and navigation services are managed and operated on a commercial basis, be accepted.

That the current economic regulatory regime in terms of which tariffs and levels of service for the core services rendered by the ACL and ATNS are regulated by an independent Regulating Committee, be accepted.

That the State remain the sole shareholder of ATNS.

That South Africa support and co- operate with ICAO in the implementation of CNS/ATM.

Implementation of recommendations

That the Department of Transport proceed, in consultation with stakeholders, with the formulation of a national policy on airports and air space management, and such investigation, inter alia, address the following aspects:

The role and functions of the various levels of government and other stakeholders
The need for, and extent of, regulatory measures in respect of economic and safety matters
The co-ordination of planning and development of airports and airspace
Funding issues
Human resource development
Environmental aspects, including issues regarding development in the vicinity of airports
International co-ordination and co-operation.

That the Department of Transport enter into negotiations with ATNS, ICAO and other stakeholders to facilitate the implementation of CNS/ATM.

That the recommendation regarding the future ownership of ACL be referred to the process on the restructuring of State assets, for consideration and implementation.

Key policy areas: International

International air transport

Critical issues

The acceptance of the current policy aiming at the liberalisation of the international air transport market
The deregulation of international air freight services
The provision of non-scheduled air transport services on scheduled routes.
World trends in airline co-operation and their effect on South Africa's policies

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 -

encouraging competition in the market place;
safeguarding, where necessary, national interests; and
encouraging South Africa's participation in the international air transport market.

The salient aspects of the policy are set out in the following policy statements:

A network of regular scheduled international air transport services should continue to be developed within a well defined regulatory framework which consists of:

a technical component, ensuring the provision of safe and reliable services; and
an economic component, ensuring the implementation of the policy goals and objectives pertaining to economic aspects.

Scheduled international air transport services to and from South Africa should at all times comply with the minimum international norms and standards pertaining to aviation safety and security, in order to ensure the provision of safe and reliable services.

In order to serve the national interests and to meet the fundamental objectives, any regulatory measure pertaining to the economic aspects of scheduled international air transport services should have as its purpose:

the encouraging of competition in the market place;
the safeguarding, where necessary, of the national interests; and
the encouraging of South African participation in the market.

The multiple designation of airlines on routes to and from South Africa, and the designation of more than one South African airline to provide scheduled international air transport services on behalf of this country, are supported in principle.

Regulatory controls on capacity and frequencies should enable airlines to unilaterally adjust their services to satisfy the demand, within a framework of lower and upper limits.

Tariffs are generally deregulated to allow airlines the freedom to set tariffs in response to demand.

The network of scheduled international air transport services should be complemented by non- scheduled international air transport services, i.e. ad hoc and charter flights. These services should be allowed within the framework of specific objectives, namely:

to stimulate tourism to South Africa
to develop new air links
to stimulate trade in general and exports in particular.

The policy has been implemented by means of two main instruments, namely:

The International Air Services Act, 1993
Air Service Agreements.

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 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.

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.

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.

Key policy recommendations

That the follow broad objectives continue to be the principles of the international air transport policy as set out in the International Aviation Policy Document and International Air Services Act, namely:

to encourage competition in the market place;
to safeguard, where necessary, national interests;
to encourage South African participation in the market.

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. That the deregulation of services by foreign operators to South Africa only be considered by the Government if reciprocity exists.

That the Department of Transport, in consultation with stakeholders, formulate a policy on airline co- operation in general, and code-sharing in particular, within a framework of promoting competition and co- operation.

That the Department of Transport, in consultation with stakeholders, evaluate its current policy in respect of non-scheduled services and the implementation thereof, with a view to ensuring its compatibility with the broad policy framework.

Implementation of recommendations

That the International Air Services Act be amended to implement the recommended deregulation of international air freight services.

That the Department of Transport 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 of Transport constitute a Working Group of stakeholders for the purpose of assisting the Department with the formulation of policies on airline co- operation, code-sharing and the provision of international non- scheduled air transport services.

International relations

Critical issues

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-…-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 example is the Declaration of Yamoussoukro, in terms of which African countries agreed to work towards co-operating on the provision of air services.

Key policy recommendation

That international co-operation be promoted in principle, within the framework of the strategic objectives of the international air transport policy.

Implementation of recommendation

That the Department of Transport formulate a policy regarding its participation in regional and other international organisations such as AFCAC, SADC, ECA, and others.

That the Departments of Transport constitute a Working Group of stakeholders to assist with the formulation of the above policy.

Supporting recommendations

Industry promotion

That the aviation industry 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.

Training

That the Department of Transport, other relevant government departments, and other stakeholders, liaise and work towards the establishment of a training accreditation system for aviation in the broadest sense, with the aim of achieving a standard approach to education and training in this industry.

That the Department of Transport also, in partnership with the industry, participate in programmes aimed at the training of persons for the industry.

[ Top ]

Maritime transport

Scope

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 maritime transport issues relating to economic principles, trades and cargoes, ship financing and registration, the operation of ships, ports, safety at sea, employment & training, and administration.

South African maritime transport illustrative statistics

Ports	Responsibility of PORTNET	7
Ports	Responsibility of Dept of Environmental Affairs and Tourism	14
Number of vessels calling at ports (1995)	Ocean Going Coasters Foreign Fishing Vessels Trawlers Miscellaneous	8334 892 935 1845 1279
Gross tonnage of vessels calling at ports (1995)	Ocean Going Coasters Foreign Fishing Vessels Trawlers Miscellaneous	490 million tons 16 million tons 2 million tons 3 million tons 4 million tons
Cargo handled at SA harbours	Coastwise Overseas Transshipped	2 million tons 126 million tons 2 million tons
Safety ceritificates issued by DOT (1994/95)	South African ships Foreign ships	4735 18

Tonnages handled at South African ports (million tons per annum)

Cargo type	Richards Bay	Durban	East London	Port Elizabeth	Mossel Bay	Cape Town	Saldanha	Total
Containerised	0,1	10,9	0,5	1,8	0	4,1	0	17,4
Bulk	66,0	6,1	1,9	1,4	0	0,4	20,9	96,7
Break-bulk	3,6	8,9	0,2	0,8	0,1	3,0	0,2	16,6
Total	69,7	25,9	2,6	4,0	0,1	7,7	21,1	130,7
(Including Trans-shipped:)	0	1,1	0	0,4	0	0,4	0	1,9

Mission

The mission of maritime transport policy is:

"To encourage and support the SA maritime transport industry in a manner which underpins the four fundamental objectives of the RDP, gives effect to the overall vision of transport and in so doing which:

Develops a maritime awareness in South Africa;

assists 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;

ensures safety of life and property at sea and the prevention of pollution of the sea by ships;

ensures fair labour practices, employee rights, job creation and security with acceptable standards of employee health, welfare and safety in the maritime industry; and

contributes to the release of the full potential of the maritime industry in South Africa and to the modernisation of shipping administration in South Africa".

Strategic objectives

The strategic objectives of maritime transport policy are:

To facilitate and enhance the expansion of international trade and tourism in general, and exports in particular
To ensure that economic decisions are, as far as possible, left to market forces, subject to general competitive principles applicable to all industries, with the view to maximising consumer choice, need satisfaction and job creation
To promote the development of an efficient and productive South African maritime industry capable of competing on international markets
To maintain control over maritime services within a well defined regulatory framework that is flexible enough to cater for changing needs and circumstances and to ensure orderly, safe and reliable maritime transport services
To promote international relations with other countries and international organisations involved in maritime activities

Key policy areas

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 recovery is the only viable long term solution.

There is a need for efficient port pricing

Ports have the characteristics of natural monopolies, and when they function as state enterprises their pricing under normal efficiency criteria should be to expand output until price equals marginal revenue. This 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 transport by sea stem from the protectionist policies of certain nations. South Africa has generally not practised shipping protectionism, but has 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 equitably for the road infrastructure (and for damage inflicted on that infrastructure) rail users; coastal sea carriers and cargo owners should pay equitably for 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 Government s 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:

The efficiency, cost & suitability of SA s ship registration, manning legislation and administrative procedures
Their ability to raise US$ finance at a satisfactory rate on overseas markets. This ability is inhibited by SA s sovereign risk rating, and by deficiencies and anomalies relating to SA registered ship s mortgages - a ships mortgage being part of the normal security required by finance houses
The fiscal allowances and incentives given to them by the SA Income Tax Act
Cumbersome exchange control procedures
A duty & excise regime which favours foreign trading vessels over domestic vessels in relation to fuel costs and costs of spares SA should aspire to a modern ship s register which is efficient, which balances the interests of the nation, 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 to both local and foreign investors, but in no way a flag of convenience.

Key recommendations

The DoT should promote interdepartmental and private initiatives to ensure that administrative, fiscal and legal inhibitors to the development of the SA register and its ancillary services are removed. In particular: There are shortcomings and anomalies in the present enabling legislation for the registration of ships and ships mortgages in SA - which is based on the British system of 1894. These shortcomings are in the process of being addressed by draft legislation which the DoT has circulated for comment.

There are anomalies in the priority accorded to SA ships mortgages which make them out of line with the majority of the world s maritime nations. These and other anomalies in the ranking of maritime claims should be urgently addressed by an interdepartmental initiative involving the DoT and the Department of Justice in consultation with interested parties such as the SA Maritime Law Association.

Fiscal aspects affecting shipping should be re-appraised on an interdepartmental basis with a view to initiating change where appropriate. These aspects include income tax paid by seamen, shipowners and operators, exchange controls, and duties.

Implementation of recommendations

The DoT should of its own initiative and through the Interdepartmental Committee and the Standing Committee on Maritime Transport (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. The roadhaul 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 ship s 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 services 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 enacted at this stage though cabotage options should be monitored in the future in the light of changing international cabotage practices and attitudes.

South Africa should not accede to the UNCTAD Code but should nevertheless strive to increase its share of liner shipping, and should monitor its options in relation to the code in the future.

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 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 Transport which should have an advisory function and which should comprise representatives of all participants in the maritime transport industry. This Committee should meet in open forum quarterly to consider all aspects of maritime policy and practice. It should have the power to co- opt, to commission research, and receive representations from any interested party.

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:

Bilateral shipping or taxation agreements with countries which levy freight taxes on non- resident shipowners so as to minimise these taxes
Disincentives affecting coastal shipping in relation to other transport modes and foreign trading vessels

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. Ports are strategic assets serving the nation as a whole. The real estate of South African ports is currently owned by Transnet Limited. The port authority function is delegated to Portnet, an operating arm of Transnet, and services within the ports are provided either by Portnet or by private enterprise. At present, Portnet provides the majority of services.

Transnet is however burdened with a considerable pension fund deficit which it has sought to meet inter alia from Portnet s earnings. This has put artificial and uneconomic tariffing pressures on Portnet s management which in turn has adversely affected port efficiency and the international competitiveness of SA s ports. There is at present no external port regulatory and monitoring authority. Portnet (through Transnet) enjoys a natural and legally structured monopoly and acts also as its own regulator. Within its quasi-government though legal corporate structure, Portnet also operates in direct competition with private operators offering various services within SA ports. The vagaries of international shipping, the profound changes flowing from the displacement of breakbulk cargoes by containerisation, and trade sanctions, have left a legacy in SA s ports characterised by a predominance of casual dock labour over an ever dwindling permanent dock labour force. Any re-structuring of ownership or operation of SA ports will need to take the interests of organised and unorganised dock labour into account. Inland ports (at present City Deep) operate outside existing port authority structures.

Key recommendations

The government should pursue negotiations directed at the restructuring of the ownership of the port real estate and hardware, inter alia through the National Framework Agreement, to arrive at a satisfactory and acceptable resolution with the minimum delay. An independently constituted National Port Authority should be established, within the jurisdiction of the DoT, to

Administer the real estate and hardware of the ports, including inland ports, in whatever ownership they may fall to be structured;
Act as a regulatory body to establish operating parameters within the ports in a manner which will prevent both the abuse of the natural monopoly of the port landlord and unfair labour practices within the ports;
Promote regulated private enterprise within the ports in a manner which provides the most cost-efficient services including the development and operation of cargo handling facilities. 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;
Provide, on a cost recovery basis, any essential port services not willingly taken on by private enterprise;
Ensure that revenues derived from port operations should be used primarily for the betterment of port infrastructures (including the development of a trained and permanent dock labour force) and not for other national or regional government purposes.

The constitution of the National Port Authority should make provision for an Appeal Board to which contested decisions of the Board of the National Port Authority should be referred for review.

In viewing SA ports not 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 DoT should play a crucial role in negotiations relating to the re-structuring of Transnet s port assets within the National Framework Agreement and other appropriate negotiating structures. As soon as an appropriate stage has been reached in the negotiations for the re-structuring of Transnet s port assets (though not necessarily only after the conclusion of such negotiations), the DoT, through the Interdepartmental Committee, and in consultation with the Standing Committee on Maritime Transport, should establish a National Ports Authority. In the interim, the continuing role of Portnet in the operation of the nation s ports and in the provision of services in those ports should be a recurring item on the agenda of the Standing Committee on Maritime Transport. The Standing Committee on Maritime Transport should be briefed to commission further research into the formulation of a national ports policy for SA.

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 structure of employment in the ports needs to be urgently addressed through:

correct management of any restructuring
involvement of labour in all developments affecting employment; and
the re-structuring of employment to ensure that the variable labour requirement of port service providers are sourced from a common pool at equal unit cost in order to reverse the casualisation of port employment and to improve working conditions and efficiency of service.

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 seafarers (and particularly 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 job preservation, 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 Government, through the DoT will continue to act as the competent authority administering the certification of seafarers in terms of the STCW, Government will also work with and support the Maritime Industry Training Board in its functions:

as the competent standard setting and accreditation body for training and education in the maritime industry under the SAQA Act;
as a facilitator of education and training to ensure that the training and education needs of employees and the industry are met; and
as a sponsor of maritime training and education.

Government will also assist the MITB in its efforts to arrive at appropriate and effective financing mechanisms which require minimum wastage of resources on administration and enforcement.

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. SA s 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 and marine pollution reaction service for the South African coastline is strategically necessary, and cannot be left to be funded entirely by 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 PSC and 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 should 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 Transport (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 Transport, 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 addressed by the Interdepartmental Committee. The Standing Committee on Maritime Transport should investigate and report on ways of stimulating the local salvage industry.

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Road traffic

Scope

"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).

Selected road traffic statistics

The figures below provide a brief overview of South African road traffic realities.

Road vehicle statistics

Approximately 5,5 million vehicles are registered in the country. The current annual vehicle kilometres travelled on South African roads are estimated as approximately 98 000 million. The annual fuel sales in South Africa amount to about 9 500 megalitre.

Traffic safety related statistics

Traffic safety is a serious problem in this country, with approximately 468 000 traffic accidents annually, of which 31 000 are fatal or lead to serious injury. The annual number of traffic deaths in South Africa is in the order of 10 000; and 46 500 persons are seriously injured, many of whom will be permanently disabled.

Between 1989 and 1994, the fatality rate on South African roads fluctuated between 10,2 and 11,3 persons killed per 100 million vehicle kilometres. This rate is lower than that of some African countries, but it compares unfavourably with other African countries such as Zimbabwe (3,3) and Zambia (3,0); and with countries abroad such as Australia (1,8 ) and the United States (1,1). There is also concern about the high rate of pedestrian involvement in road fatalities. Approximately 41 percent of the fatalities involves pedestrians.

Statistics related to traffic discipline

The low level of traffic discipline on South African roads is unacceptable. The lack of respect for the law is reflected in the offence levels recorded in recent surveys, for example:

Approximately 69 percent of drivers exceed the speed limit in 60 km/h speed zones, with approxi- mately 28 percent in 120 km/h zones.
Approximately 79 percent of vehicles are operated at headways (following times) of less than two seconds, and 24 percent at less than one second.
An average of 37 percent of front seat occupants of vehicles fail to wear seat belts.
Approximately 7 percent of all drivers are intoxicated during nighttime (compared to a normal figure of less than 0,5 percent in certain Australian states). The average figure for pedestrians is 14 percent. The grave consequences of these figures are evident from the results of a recent limited survey, where it was found that 47 percent of the drivers and 75 percent per cent of the adult pedestrians killed in a sample of accidents had blood alcohol levels in excess of 0,08 g/100 ml. This confirms that the alcohol impaired road user is a major contributor to road fatalities.

Statistics related to the protection of the road infrastructure

An unacceptably high level of overloading of goods vehicles is evident on all major roads, varying between approximately 15 and 40 percent in most areas. There are indications that the level may be as high as 60 percent on certain routes.

Statistics related to administrative order in road traffic

Problems with administrative order are inter alia reflected in the high rate of unconcluded court cases (approximately 40 percent of all traffic prosecutions are unsuccessful, partly due to road users being untraceable); in the reported high incidence of abnormal loads carried and public transport services rendered without the required permits; and the increasing occurrence of forged driver's licence documents and forged number plates on vehicles.

Statistics related to economic order in road traffic

The economic consequences of the above are excessive, for example:

The total annual cost to the economy of road traffic accidents amounts to more than R9 000 million (approximately 3,3 percent of the Gross Domestic Product of the country).
The amount of damage to the rural road network due to the overloading of goods vehicles is estimated to be in the order of R 400 million per annum.
Vehicle theft costs the country approximately R 1 200 million per annum.

These selected figures confirm that an unacceptable level of quality is experienced in the road traffic environment, and that serious attention should be paid to the solution of these adverse conditions.

Mission

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 urban and rural road network".

The acceptable level of quality and road traffic related needs are to be determined by the community. It should 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. The aim is:

To improve road traffic safety
To enhance road traffic discipline
To protect the expensive capital investment in the road system
To enhance administrative and economic order in the field of road traffic and transport

Specific objectives will be set for each of these aims. Performance indicators should be established, and the achievement of these objectives should be monitored by the relevant co-ordinating bodies.

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 continuously be re-evaluated in view of traffic quality related road user needs, the adverse economic impact of inadequate levels of road traffic management, and the expected benefits of increased spending on traffic management.

Additional funding strategies, apart from the traditional approach to financing 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 and innovative funding strategies for traffic management functions will be investigated and introduced. This should include the allocation of a percentage of the roads budget for traffic control purposes. The allocation of 1,3 percent of the annual road budgets of the national and provincial governments to the overloading control function, which will commence during the 1996/1997 financial year, serves as an example of the implementation of this strategy. The introduction of a traffic management levy to vehicle licence fees and fuel sales should be investigated. Steps should be taken to strengthen the MMF, including the utilisation of money from the Fund to manage road accident risk. The desirability of apportioning traffic fines and bails to road traffic management funds instead of fines accruing to individual authorities and general state or provincial revenue funds should be explored. For this purpose, dedicated national and provincial road traffic management funds should be considered.

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. Critical offences should be identified and eliminated.

Special attention should be given to engendering voluntary compliance of road users with the law. 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 and the image of the traffic control profession should be enhanced. The aim should be to improve the level of acceptance of the profession by the public, to increase the degree of mutual co-operation between road users and the profession, and to ensure adequate standards and levels of service in traffic control.

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. Care should be taken that, with the introduction of the metropolitan and municipal police function in terms of the Constitution of South Africa, 1993 (Act No 200 of 1993), and the South African Police Service Act, 1995 (Act No. 68 of 1995), the principle that traffic control is primarily a transport and traffic function, will not be violated; and that the existing emphasis placed by traffic departments on road traffic matters will not be reduced.

The following issues should also be addressed: the fragmentation of traffic control services rendered by the various traffic authorities; problems experienced with the prosecution of offenders from foreign countries; and the type approval of reliable traffic control equipment.

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 establishment of systems and procedures to report the achievement of standards to the relevant co-ordinating bodies; 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.

Programmes to control speed, alcohol and drugs related offences, and the overloading of vehicles should receive special attention.

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 appropriate 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; to introduce community based traffic control services; to improve the level of co-operation between traffic authorities and the public; and to engender a spirit of voluntary compliance with the law among road users.

The principle that traffic control as an essential traffic and transport service should not be merged with the SAPS, while reconising the need for co-operation and support between these services, is confirmed as national policy. This same principle should be applied with regard to the metropolitan and municipal police services. The primary traffic an d tranport orientation off traffic departements and the traffic profession should be maintained in future structures, while the need for mutual support and co-operation between the traffic control function and municipal or metropolitan police function is reconised. Traffic control should renmain a function managed in terms of tarnport an dtraffic legislation and policy.

Regarding areas of mutual interest, the legislation and policies controlling the various functions should be harmonised, on the national, provincial and local levels. The extent of harmonisation should be negotiated between the relevant parties.

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. Specific consideration should be given to the relevant provisions of labour relations legislation. The rendering of traffic control services on a basis of 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 or through administrative sanction. 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; inefficiencies in court due to errors or a lack of experience on the side of traffic officers witnessing in court; and the activation of dormant legislation regarding the confiscation of vehicles under certain circumstances.

Implementation of recommendations

The decriminalisation of certain 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. Issues to be investigated should include: problems experienced with the prosecution of operators; the standardisation of fines and other arrangements made by the judiciary; the elimination of errors and a lack of experience of officers witnessing in court; the possible introduction of dedicated traffic courts as a general procedure; and the introduction of the compulsory attending of traffic schools as a form of sanction. The activation of dormant legislation regarding the seizure and forfeiture of vehicles under certain circumstances (specifically Road Traffic Act, 1989, section 148A) should be seriously considered.

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.

Supporting recommendations

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 road 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 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. Specific emphasis should be placed on the full implementation and enforcement of the RTQS.

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, and every opportunity should be taken to base policies and standards on international norms, particularly those of the United Nations.

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Conclusion: The way ahead

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:

Infrastructure: the establishment of intermodal co-ordinating structures for the creation of sustainable, integrated, well-managed transport infrastructure.

Passenger Transport: the drawing up of a framework and guidelines to channel development particulary employment activities into public transport corridors and modes

Freight Transport: regular cost recovery studies to equitably allocate costs for the provision and maintenance of freight transport infrastructure.

Civil Aviation: an investigation into a policy on airports and air space navigation.

Maritime Transport: an investigation into the specific role of Portnet in the operation of the nation's ports and the provision of services in those ports.

Road Traffic: the optimum utilisation of traffic control resources to promote road safety and efficiency in traffic operations.

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. There remains, however, 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. 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.

This policy review process has of necessity focused on the urgent current issues identified by stakeholders, and the resulting policy recommendations will hopefully go a long way towards redressing these problems in the short term. There is, however, also a need for us to have a clear vision of what we want the South African transport system to look like in the longer term, and a clear strategy for bringing that vision to reality. This will require us to formulate realistic scenarios for South Africa's future, to assess local and international trends affecting transport, including the exciting developments in advanced transport systems and their applicability in South Africa, and then to develop a vision shared by key stakeholders. Information, knowledge, and skills gaps, and research and training needs, will have to be identified. Finally, specific goals, strategies, and action plans to proactively lead the South African transport system into this future will have to be delineated. The Department of Transport is initiating a project, named "Vision 2020", to achieve this.

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List of abbreviations

ACL	Airports Company
AFCAC	African Civil Aviation Council
ASLC	Air Service Licensing Council
ATNS	Air Traffic and Navigational Services Company
CAA	Civil Aviation Authority
CIF	Cost, Insurance, and Freight
COASA	Coach Operators Association of South Africa
COF	Certificate of Fitness
COLTO	Committee of Land Transport Officials
CNS/ATM	Communications, navigation and surveillance/air traffic management
CTP	Constitutional Transformation Process
DMEA	Department of Mineral and Energy Affairs
DOT	Department of Transport
DTA	District Transport Authority
DTI	Department of Trade and Industry
ECA	Economic Commission for Africa
EIA	Environmental Impact Assessment
FANS	Future Air Navigation Systems
FOB	Free on Board
GIS	Geographic Information System
GNU	Government of National Unity
ICAO	International Civil Aviation Organisation
KPI	Key performance indicator
LPTP	Land Passenger Transport Policy
LPTWG	Land Passenger Transport Working Group
LRTB	Local Road Transportation Board
LTA	Local Transport Authority
LTCC	Land Transport Co-ordinating Committee
MINCOM	Ministerial Committee of Ministers of Transport
MITB	Maritime Industry Training Board
MMF	Multilateral Motor Insurance Fund
MTA	Metropolitan Transport Authority
NaTIS	National Traffic Information System
NQF	National Qualifications Framework
NSV	National Strategic Vision
NTC	National Transport Commission
NTTT	National Taxi Task Team
OECD	Organisation for Economic Co-operation and Development
PrDP	Professional Driver Permit
PSC	Port State Control
PTP	Passenger Transport Plan
RDP	Reconstruction and Development Programme
ROI	Return on Investment
RTQS	Road Transport Quality System
SAA	South African Airways
SABOA	South African Bus Operators Association
SABS	South African Bureau of Standards
SACO	South African Commuters Organisation
SADC	Southern African Development Community
SAPS	South African Police Service
SAQA	South African Qualifications Authority
SARATA	Southern African Regional Air Transport Authority
SARB	South African Roads Board
SARCC	South African Rail Commuter Corporation
SATCC	Southern African Transport and Communications Commission
SMME	Small, medium, and micro enterprises
STCW	Standards of Training, Certification & Watchkeeping
TAC	Transport Advisory Council
Transnet	Transnet Limited, with operational divisions of Autonet, Petronet, Portnet, SAA, and Spoornet
TU	Trade Unions
UNCTAD	United Nations Conference on Trade and Development

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Explanation of terminology

Concession is the authority and contract to operate a rail line or network at an agreed price.

Contract is an agreement between an authority and an operator regarding the delivery of a service at an agreed price.

Framework is an outline or skeleton which provides the structure and form around which a plan or policy or strategy is constructed.

Goal a goal is an idealised end-state of the system or a desired direction of the evolution of the system.

Integrated plans plans which encompass a system which includes land use, spatial development, infrastructure, services and the finance thereof.

Issue an issue arises in a national, district or local community when there are conflicting goals and objectives (desires or perceptions) within the community.

Land passenger transport is a generic term which describes the movement of people by land-based travel modes, including movement on foot. It encompasses both urban and rural passenger travel, for any purpose, by both private and public travel modes.

Land passenger transport planning is a comprehensive and integrated process for generating a plan relating to the regulation and management of transport infrastructure (roads, rail, stations, terminals and public transport facilities) and for regulating public transport operations/services and the use of infrastructure by both operators of public transport and private travellers. Because of the spatial relationship between human and economic activities, resulting in the demand for travel, it is essential that an integrated passenger transport plan should be developed in the context of a land use plan which is supportive of efficient land passenger transport.

Macro is large scale.

Micro is small scale.

Objective an objective is a target, the attainment of which will help towards reaching a stated goal.

Passenger transport is a generic term which describes the movement of people by any travel mode, including movement on foot. It encompasses inter-city, urban and rural passenger travel, for any purpose, by air, sea and over land and by both private and public travel modes.

Permission the authority to operate a public transport route or network without subsidy.

Permit the current authority or licence to operate a public transport service in terms of the Road Transportation Act (1976).

Plans and planning a plan is a product of the process of planning which is an organised method by which things are to be done. In the transport context, a plan is a vision of the desired future condition, a set of objectives to achieve the vision, policies to regulate the transport system, strategies, actions and projects to implement the plan and a financial statement and budget.

Policy a policy is an adopted framework or basis for the action needed to overcome identified problems and achieve stated goals and objectives.

Problem a problem is an unfulfilled or unattained goal or objective.

Public transport is the conveyance of people for reward (a fare) by any travel mode whether car, metered taxi, minibus-taxi, bus, tram and light and heavy rail.

Strategy a strategy is a plan or programme of action to be taken in terms of a policy. Such action may often take the form of a series of projects.

Tendered contract the authority to operate a public transport route or network at tendered contract rates.

Vision a vision is a commonly-shared foresight of future conditions.

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Opportunities for input

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: gdehlen@csir.co.za

The closing date for submissions is 30th April 1996. The Department of Transport will however not ignore comments received after that date in time for possible incorporation in the White Paper.

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