MEC Ismail Vadi: Gauteng Roads and Transport Prov Budget Vote 2013/14

Budget Vote 9 – Roads and Transport: Speech delivered by the MEC for Roads and Transport to the Gauteng Legislature

Madam Speaker
Honourable Premier and Members of the House
Ladies and Gentlemen

The 2013/14 budget allocation to the Department of Roads and Transport presents huge opportunities for us. Already, significant strides have been taken in transforming both the Department and the public transport landscape in the Gauteng City-Region. It is on this foundation that we are leveraging transport infrastructure as the key enabler of economic and social development. We all know that the road to development is always under construction. There is no finishing line for transformation, growth, development, and of becoming the best we can be as a Department, a province or a country. It is always work-in-progress, but there has to be milestones against which we can measure our progress.
In the 20th year of our democracy, we still need to draw inspiration from former President Nelson Mandela, who in that small prison cell on Robben Island to which he was confined, visualised himself as part of a liberated country. We too must visualise a new future. In doing so, we act on the advice of the American poet, Ralph Waldo Emerson, when he says:
Do not go where the path may lead,
Go instead where there is no path and leave a trail.

The 5-Year Gauteng Transport Implementation Plan (GTIP5) and the 25-Year Integrated Transport Master Plan (ITMP25) that will be released for public comment in July this year point to the kind of future we are heading towards. The ANC government in Gauteng is clear from whence it has come, and perfectly certain as to where it is going. The National Development Plan; the Gauteng Vision 2055; the GTIP5, and the forthcoming ITMP25 give crystal clear pictures of where we would like to be in future, and the commitment and values that are needed to get there.

Delivery achievements (2009-2012)

Madam Speaker

Let us for a moment take a step back and evaluate our progress. Due to time constraints, I will list only 15 notable achievements of the Department during the term of this administration. By far the most remarkable achievement for the Department was the execution of the seamless transport plan for the 2010 FIFA Soccer World Cup. The others are as follows:

1. On Monday, the Department received an award in Geneva from the International Association of Public Transport (UITP) for its work on developing the 25-Year Integrated Transport Master Plan and for successfully hosting the BRT-Africa Conference in October 2012.
2. The construction and full operation of Gautrain with over 11million passengers using the train and 3.5 million passengers using the Gautrain busses since March 2012.
3. The upgrading to world class standards of 201km of the Gauteng freeway system in partnership with SANRAL.
4. The maintenance of 5000km of the paved and 1500km of the gravel road network and the upgrading of key arterial routes such as Beyers Naude Drive, Malibongwe Drive, the R55 and portions of the Old Vereeniging Road, including the rehabilitation of the M1 and N14 freeways between Johannesburg and Pretoria.
5. The upgrading of township roads such as Bolani Road in Soweto and Sekweri Street in Refilwe.
6. The provision of subsidised bus services that account for 9 million passenger trips annually.
7. The creation of over 10 000 permanent and temporary jobs, particularly for youth and women.
8. The successful construction of newly-designed, inter-modal facilities such as in Zandspruit and Bophelong.
9. The construction of 30km of non-motorized transport infrastructure in the form of walkways and cycle lanes in Randfontein, Metsweding and Zandspruit.
10. The establishment of a new DLTC at the Walter Sisulu Square of Dedication in honour of a late student leader, Bongani Khumalo, and a Thusong Centre in Maponya Mall.
11. The distribution of 14 925 bicycles to learners who walk more than 5km between home and school.
12. The issuing of 1.1 million learners’ licences and 582 026 drivers’ licences.
13. The finalisation of the Department’s organisational structure and the strengthening of its supply chain management and procurement processes.
14. And ensuring that the Department; the Gautrain Management Agency and g-Fleet obtained unqualified audits in the past two financial years, thus laying the basis for clean audits in this financial year.

Budget allocation 2013/14

For this financial year, the Department has been allocated R4.7 billion. Of this amount, almost 50 percent are conditional grants from the national Department of Transport to subsidise bus contracts and to carry out road maintenance as part of the S’hamba Sonke programme. Staff salary accounts for 10 percent of Departmental expenditure. Gautrain has been allocated R801million and Provincial Treasury has undertaken to provide an additional R623 million for the ridership guarantee.

The Annual Performance Plan of the Department sets out its priorities. In determining its objectives, it has taken a cue from the lyrics of Brian Summers, which says:
Let's get on the move, Let's get on the road.
Let's jump on a train and see where it goes.

The Department, and its partners in municipalities, Transnet, ACSA, PRASA, SANRAL, the Gauteng Management Agency, and the South African Post Office, is on the move. Collectively, we have made the following the focal points of our work:

• the construction of roads;
• the development of key freight corridors;
• the revitalisation of our passenger rail system;
• the construction of a bus rapid transit network; and
• the development of an aerotropolis.

We are driven in our varied tasks by a simple, yet powerful motto, Gauteng on the move!

Future planning

In getting Gauteng on the move, we should in our planning take into account the results of the 2011 Census. A few weeks ago, Stats SA reported that currently Gauteng is the largest province by population with 12.5 million residents. Preliminary research by the ITMP25 team suggests in 25 years’ time, Gauteng’s population will have increased to 18.6 million people, with an economically active population of 8.5 million citizens.

However, Gauteng’s population density is low compared to that of Los Angeles, a city with a similar population size. While LA’s population density is at 6999 people per square mile, ours is at only 675. At this week’s UITP Conference in Geneva, it was suggested that we should have a density of 15 000 people per square kilometre. The twin realities of urban sprawl and in-migration into our province, places a huge burden on this government to plan effectively and proactively, without resorting to calling any of our people “refugees”, as has been infamously suggested by the leader of the Democratic Alliance.

The NDP recommends that this reality should be addressed through transit-led growth. This will require transport planning to be synchronized with spatial planning to ensure in-filling and greater densification. The densification of urban space will yield benefits for access to a range of transport and other government services. Densification will help considerably to reduce the cost of public transport; minimise the harmful effects of carbon emissions on the environment, and make easier and cheaper the provision of other government services such as water, electricity and broadband.

Madam Speaker

Delivery plans (2013/2014)

The Department has made the Five-Year Gauteng Transport Implementation Plan the pivot of its annual performance plan. In the current financial year, the Department will embark on the following key projects and initiatives.

Establishing the Gauteng Transport Commission

In line with the NDP, it will begin to streamline over time the planning arrangements for public transport by establishing the Gauteng Transport Commission. This will be done jointly with municipal authorities. The principal aim of the Commission is to improve the planning of public transport in the province. It will function to enhance co-operation across municipalities and other transport-related, state-owned entities. In addition to the functions listed in the National Land Transport Act (2009), the specific areas of co-operation will include:

Integrated rail planning; Intelligent Transport Systems relating to e-ticketing; integrated fare management; passenger transport information and traffic management; Integrating Bus Rapid Transit Systems across metropolitan municipalities; Promoting non-motorised transport; and
Strengthening international co-operation in transport planning.

Development of freight corridors

Recently, the Premier entrusted to the Department the important task of co-ordinating the development of freight and logistics hubs in the province. In the current financial year, the Department will pay special attention to the City Deep Freight Terminal and to the further planning for the Tambo-Springs Inland Port. The City Deep Project is a unique ‘public-public partnership’ that includes Transnet, SANRAL, the City of Johannesburg and the Department.

Phase 1 of the City Deep/Kazerne Terminal expansion and roads upgrade is completed. The widening of Rosherville Road and proclaiming it as a one-way has been done. Detailed planning for the expansion of the Rail Bridge; the extension of Bonsmara Road; the construction of the Cleveland Road Bridge; the extension of Houer Road, and the construction of ramps on the N17 is in progress. At the same time, Transnet has completed Phase 1 of the actual improvements of the Terminal itself and it will be investing R900 million in further upgrading the Terminal and the railway sidings.

City Deep remains central in handling cargo from the three major container ports, namely, Durban, Ngqura and Cape Town. It acts as an interchange for cargo traffic destined to inland provinces and the SADC region as a whole. Gauteng’s central role as an economic hub in the region requires the improvement and further construction of strategic, regional road and rail networks with South Africa’s neighbours. It is, therefore, imperative that the necessary agreements be concluded under the leadership of the national Department of Transport and its entities to ensure standardization on specific technologies and system capacities, particularly for rail networks in Southern Africa.

In respect of the Tambo-Springs Inland Port, the Department will focus on developing detailed road designs for the K148 interchange and a Terminal Master Plan. The intention is to get Tambo-Springs to come on stream by the time the City Deep Terminal reaches its capacity in 2017. Also, the Tambo-Springs Terminal must be seen in the context of the development by 2030 of the KZN-Free State-Gauteng Industrial and Freight Corridor, aimed at shifting the movement of goods from road to rail. Lastly, preliminary planning work will continue for the freight and logistics hubs that are to be located in the West Rand and Sedibeng municipalities.

Development of the OR Tambo Aerotropolis

Last month, the Ekurhuleni Metropolitan Municipality successfully hosted the Airport Cities Conference, which was attended by over 700 delegates from 42 countries. The Conference created an opportunity for Gauteng to showcase its capability in airport planning and to market itself as a destination for future investments in the proposed aerotropolis. To date, a Spatial Development Framework for Region A surrounding the airport has been developed and adopted by the city’s Mayoral Committee. Currently, the City is in the process of developing a 30-Year Master Plan for the Aerotropolis. The Department is formulating a preliminary road design plan, which will be critical for the speedy movement of goods and people in and around the proposed aerotropolis.

Madam Speaker

Promoting province-wide road mobility

The Roads Branch will continue with the projects it had started in its Designs, Construction and Maintenance sub-programmes over the last two years to provide jobs and to build a durable road network.

The Designs sub-programme, which has been allocated R89 million, will develop designs for the following roads:

• the K15 between Dobsonville and Leratong (Phase 3);
• the R82 (Phase 2) between Walkerville and De Deur;
• the K164 linking Evaton and Meyerton;
• the K60 between Kyalami Road and Rivonia Road; and
• the K109 near Tembisa.

The Construction sub-programme will receive R531million to complete the following projects:

• R82 (Old Vereeniging Road);
• K154 (providing access to the Gauteng Highlands Developments);
• R103 (Nederveen Road from Forsdick Road to Barry Marias Road);
• K60 between Megawatt Park to Corporate Park;
• K14 between the Chris Hani Flats and Cullinan; and
• William Nicol Drive.

The Maintenance sub-programme is allocated R667million, which includes the routine maintenance and preventative maintenance grant from S’hamba Sonke programme. In the current year, the programme aims to develop 30 contractors through the Vukephile programme targeted specifically at new entrants owned by youth and women. This programme aims to create 6000 jobs.

Public transport

Infrastructure projects within the Transport Branch have been allocated R136million. This money will go towards the following infrastructure.

The Department is to construct five intermodal facilities at the Germiston, Roodepoort, Vereeniging, Leratong and Pienaarspoort railway stations. These intermodal facilities, designed to link train stations and taxi/bus ranks, are to be constructed in partnership with PRASA and the respective municipalities. These facilities are centrally linked to PRASA’s rail corridor modernisation programme from Mamelodi, Pretoria, Germiston, Johannesburg, to Naledi Station in Soweto.

With respect to the administrative, financial and service management of DLTCs, the Department will focus more strongly on monitoring the implementation of the Service Level Agreements it has concluded with municipalities. Our intensified efforts will continue in rooting out corruption in the awarding of learner and driver licences and the testing of motor vehicles. In this regard, I must point out that already 25 officials have been arrested and charged for irregular conduct at DLTCs and eight employees have been dismissed for misconduct. More arrests are likely to follow in the near future.

To further strengthen our efforts to tackle corruption, the Department will create a core inspection capability over DLTCs. It will also host a provincial summit with Driving Schools to improve learner-driver training standards by subscribing to a Code of Good Conduct. Also, the Department will expand the capacity of the existing DLTCs at the Mabopane and Temba Testing Stations and two new DLTCs will be established in Kagiso and Mamelodi.

The Department has taken the initial steps to improve its frontline services at the DLTCs and to ensure the effective collection of revenue. It has installed Computerised Learner Licence Testing equipment at six DLTCs. We are pleased that the Department’s partnership with the South African Post Office has now been extended to all post offices in Gauteng, where the public can renew vehicle licenses. Finally, the Department is rolling-out the Revenue Information Management System to all municipal-controlled DLTCs, Post Offices and Provincial Registering Authorities in Gauteng to ensure that all revenue collection records are automated. These interventions have significantly improved revenue collection, which has increased from R1.5 billion in 2009 to R2.4 billion last year.

Road safety strategy

Road safety remains a priority for the government as a whole. The number of road crashes and fatalities remain unacceptably high in spite of the efforts by law enforcement agencies and organisations in civil society to raise public awareness on the issue. The underlying problem is the reckless behaviour of South African drivers. For example in March 2013, Goodyear’s Annual Road Safety Survey that assessed the behaviour of young drivers in 16 countries revealed that South African youth were among the “most aggressive” and “easily distracted” drivers in the world. South Africans ranked highest in admitting to an improper estimation of speed when changing lanes or overtaking. Even more frightening is that they topped the charts at disobeying traffic signals. While an alarming 20 percent of young men and women in other countries admitted to driving after having consumed alcohol, a shocking 45 percent of South African youngsters admitted to doing the same. These statistics are very worrying. They warrant that government as a whole must review its national road safety strategy and adopt an entirely new approach in tackling the issue of irresponsible and dangerous behaviour on our roads.

Taxi licensing

The Department has intensified its efforts at completing the registration and licensing of public transport operators. Its recent audit of public transport operators has shown that 62 558 old, operating permits, which were issued for minibus taxis, are to be converted to Operating Licences. Of these, 30 562 applications for conversion have been approved by the Gauteng Public Regulatory Entity (PRE) and issued with operating licenses, while 6765 applications were rejected. We still have to process 25 231 permits and the PRE aims to complete this process by March 2014. At the same time, the Department has entered into initial discussions with the leadership of Gauteng Taxi Council and Gauteng National Taxi Alliance on the future of taxi industry. If this industry is to flourish, it will have to transform its operations. This means that taxi routes should be incorporated as a feeder system into government’s Integrated Public Transport Networks relating to bus and rail; operators will have to establish corporate/commercial/co-operative entities to run their operations; the services should be run on a professional basis; and greater attention has to be paid to driver training and commuter safety.

Gautrain

The Gautrain has become a yardstick of public transport in the province. The success we are seeing today started as an idea in 1997. Over and above the successful construction, operation and maintenance of the Gautrain Project, its other achievements can be summarised as follows:

• R5.6 billion was spent on procurement from, and sub-contracting to black entities, with more than 400 entities having benefited from the project to date.
• More than 35 900 local direct jobs and a total of 125 700 indirect and induced jobs were created up the end of January 2013.
• Of these, 4 020 jobs were created for women and 240 jobs were for people with disabilities. More than 50 percent of jobs created went to youth.

The full Gautrain service has been operational for a year. Since the opening of Park Station in Johannesburg, there has been a dramatic increase in the demand for the Gautrain and its bus services. The average weekday passenger trips on the train increased from 26 000 at the beginning of April 2012 to 42 000 at the end of March 2013. In the same period, over 11 million passengers used the Gautrain.

The purpose of the Gautrain bus service is to support the train ridership and to improve the total trip quality and experience of the commuters. The average daily bus trips has doubled from 9 000 per day in April 2012 to 18 000 a day in March of 2013, with a total annual passenger trips of 3.5 million.

In this year, the Gauteng Management Agency (GMA) will focus on improving services and adding capacity, particularly to parking facilities, at key stations. Modal integration will continue and investigations for the expansion of the current system will be done. So far, an additional 103 parking bays were added at the Rhodesfield station and plans for the construction of another 156 parking bays have been developed. Negotiations are also at an advanced stage to develop a new station at the Heartlands Development at Modderfontein.

The integration of the Gautrain system with other public transport services remains one of the primary objectives of the GMA. Currently, the GMA is involved in the planning of the Bus Rapid Transport system being constructed by the City of Tshwane. A BRT station has already been completed opposite the Hatfield Station and will form part of the proposed route to the Pretoria CBD. The Linbro Park shuttle service operated by a taxi company from Marlboro Station continues to provide an excellent quality of service to commuters and there are plans to extend the shuttle service to other areas.

G-Fleet

G-Fleet’s operations have steadily grown to a fleet size exceeding 7 500 vehicles and an annual turnover of R800 million. In the past financial year, it had acquired 938 new vehicles and disposed of 1 473 old vehicles through public auctions. Of the new cars bought, 84 were eco-friendly vehicles as part of piloting its green transport programme.

Key cost containment measures have been implemented by g-FleeT. Robust budget planning and management, including the sourcing of more accurate estimates for each budget item and monitoring actual expenses against budgeted costs, has helped to reduce the operating costs of the entity. G-Fleet has also improved its debt management strategy.
G-FleeT has allocated a budget of R813 million for the current financial year. Of this amount R352 million is allocated to replenish its fleet and R358 million is allocated for capital infrastructure projects in order to refurbish the hanger; improve the lighting and security systems, complete the paving of the parking areas and construct office blocks for its entire staff. This year, a multi-faceted approach will be applied to improve on its business processes; ensure greater transparency in its contractual engagements; entrench more rigorous tender procedures, and finalise its staff complement in terms of its approved organizational structure.

Madam Speaker

Finally, I am pleased that Mr Ronald Swartz has joined the organisation as the new Head of Department. We welcome him to the Department. I would like to thank the former Heads of Department, Mr Mavela Dlamini and Ms Margaret-Anne Diedricks, for their able and professional stewardship over the Department. My gratitude also extends to the CEOs of g- Fleet and the Gautrain Management Agency, Mr Chikane Chikane and Mr Jack van der Merwe respectively, the Senior Management and the entire staff of the Department for their contributions to deliver on our mandate. I hold their support and commitment to the Department in very high regard. My special thanks to the Chairperson, Ms Thuliswa Nkabinde, and Members of the Portfolio Committee for keeping my office and the Department on its toes. Finally, may I thank all our stakeholders in the roads and transport family for their constructive working relationships and partnerships with the Department.

Allow me end this talk by adapting the song of the idol star, Khaya Mthethwa,

I want Gauteng to move, move move; let me see you move, move, move.
Gauteng baby, I want you to move, move, move;
Let me see move, move, move, without crashing into me!

Ismail Vadi