Minister Dipuo Peters: Transport Dept Budget Vote 2016/17

Speech by Honourable Mme Dipuo Peters MP, Minister of Transport - on the occasion of the 2016/17 Transport Budget Vote Debate - National Assembly Chamber, Cape Town

Honourable Chairperson,
Honourable Ministers and Deputy Ministers,
Honourable Deputy Minister of Transport,
Honourable MECs of Roads and Transport,
Chairperson and Members of the Portfolio Committee of Transport  led by Mme Dikeledi Magadzi,
Honourable Members of Parliament,
Director General of the Department of Transport,
Chairpersons and CEO of Entities,
Distinguished Guests,
Ladies and Gentlemen,

Honourable Chairperson, one of the most inspirational individuals of our time Martin Luther King Jnr, could have been talking of our present day South Africa, when he addressed the crowds in Memphis, Tennessee in 1968, when he said:

     “…whenever Pharoah wanted to prolong the period of slavery in Egypt, he had a favorite, favorite formula for doing it. What was that? He kept the slaves fighting among themselves. But whenever slaves get together, something happened in Pharoah’s court, and he cannot hold the slaves in slavery. When the slaves get together, that’s the beginning of getting out of slavery.”

Our country is still reeling from huge pockets of the legacy of apartheid enslavement. Enslavement of poverty, enslavement of unemployment and enslavement of inequality. The fiercest and most divisive exchanges in our country today are those orchestrated among the poor, the economically downtrodden and the unemployed. It is time that we commit to unshackle ourselves, once and for all, from this pervasive enslavement.

As we present our budget as the transport department, we make a call and rededicate ourselves to the cause of eradicating the legacy of that enslavement. Today, we say to South Africa that for the past twelve months since our last budget, we have moved the country forward in the following ways:

  • More job opportunities have been created
  • An improved and more integrated approach of work with sister departments in many crucial areas has been forged.
  • A better inter-governmental approach to transport matters from National to Provinces and Municipalities is the order of the day.
  • Optimal intra-sectoral collaboration among transport entities and stakeholder community is standard practice, and
  • New ground breaking areas for heightened economic activity and a job-churning trajectory are constantly explored.

Our intensive rail modernization programme provides uncontested evidence of unprecedented potential job opportunities, localisation and industrialisation.

This is done with strong and developmental variables, such as the inclusion of women, youth and people living with disabilities.

Led by the Passenger Rail Agency of South Africa (PRASA), the rail modernisation programme is poised to deliver the following tangibles:

  • A R13.5 billion subsidy in the medium term for Shosholoza Meyl and Metrorail with major spin-offs of 500 million passenger trips in six (6) metro areas, and 700 000 long distance passengers.
  • The Construction of a more than R1billion train manufacturing factory in Nigel, employing about 1 500 people. 99% of whom are South Africans, 85% historically disadvantaged individuals, and 25% women.
  • The replacement of obsolete signalling and development of new signals at a cost of R13.2 billion, which will greatly improve safety and make rail transportation an experience to cherish.
  • This signalling programme translates into 762 jobs, with another 150 for engineers and artisans. The Gauteng nerve centre in Kaalfontein, which was handed over on 05 October 2015 will act as the signalling control hub of PRASA’s passenger rail network in Gauteng.
  • 1000 jobs from the Motherwell and another 325 from the Greenview-Pienaarspoort rail extensions.
  • A further 2004 jobs from Metrorail and a 1005 more from Shosholoza Meyl improved services and station upgrades were realized.

This ANC Government's good story is in no way told to veil the serious problems of service disruptions, acts of vandalism, violence and criminality against train commuters, the rolling stock and infrastructure.

Interventions to normalise and optimise operations are a constant preoccupation of our department through the Rapid Rail Police of PRASA and the broader security cluster departments.

The Railway Safety Regulator (RSR) is central to the safety of our people and the environment in the railway industry, and to that end has taken a bold stand to adopt the vision “Aspiring to achieve Zero Occurrences”. Collisions still remain a challenge for our railways, however, it is encouraging to note that the number of collisions between trains declined by 44% from the previous period.

Even though, technology reviews were introduced with the aim of mitigating risk in the rail network, human error and old technology still compromises the safety of our railways. This has informed the RSR’s risk-based strategy, which gives a great deal of attention to human factor risks, which account for more than 71% of all occurrences.

With the South African National Road Agency Limited (SANRAL), at the helm, certainty about Moloto Road/R573 development has never been greater. A short to medium term road upgrade plan at a cost of R3.7 billion is assured. In the longer term a rail strategy will emerge.

A synoptic scan of labour intensive and far reaching road infrastructure programme will show the following:

  • Commencement of road construction of the N2 Wild Coast, from East London to Mtamvuna, will happen this year, with seven (7) medium to big bridges, and two (2) mega bridges.
  • The outcome of N3 De Beers Corridor Environmental Impact Assessment (EIA) will be known in time. In the final analysis, our people and their livelihoods come first, that is why the Department of Transport and SANRAL is at work to explore other alternative engineering solutions that will protect and grow the economic viability of Harrismith and surrounding areas.
  • The construction of N1/N2 Toll Highway will yield an estimated 5000 jobs, 72% thereof in the low-income stream, with 600 direct jobs yearly, and 80% maintenance work for local sub-contractors.
  • The Ventersburg-Holfontein N1 upgrade, costing R600 million, will have substantive participation of Small Medium and Micro Enterprises (SMMEs), with strong elements of youth and women participation.
  • Rehabilitation of the N1 Holfontein-Kroonstad interchange is set at a cost of R560 million, for completion in February 2018.
  • A R422 million Umdloti-Tongaat interchange has just been completed, having employed 334 locals at R46.5 million, trained 90 locals at R117 million, and given opportunities to 12 black owned SMMEs to the value of R53 million.

Honourable Members, we happen to be on an unstoppable warpath of service delivery, our departments at both National and Provincial level have become war rooms of a good story – en Ek se' agbare lede die ANC goeie storie gaan nog aan.

The R11billion allocated for S’hamba Sonke Programme has to be matched Rand for Rand by provinces as prescribed by the Division of Revenue Act (DORA). This program is to spend 40% of the Provincial Road Maintenance Grant (PRMG) on preventative maintenance.

We have gone a long way in listening to and addressing concerns around the Gauteng Freeway Improvement Project (GFIP), with particular emphasis on the e-toll system. It is a matter of grave concern, hence the involvement of the Honourable Deputy President and the intervening dispensation, whereby 50% reduction of tariffs was effected.

We will continue to listen and receive constructive proposals on alleviating the plight of our road users.

Equally we will not tire to explain and educate our people about the user-pay principle, and the need for SANRAL to raise capital for construction of new roads, upgrading of some and maintenance work.

It is important that SANRAL has the ability to raise capital on the bond market, continue to meet its debt obligations, sustains and improves its credit rating.

We commend the more than 1.3 million vehicle owners who have registered for the e-toll account, and express confidence that more will follow their example. Hence the extension of the discount deadline with the possibility of a further grace period and appropriate dispensation to accommodate the growing demand.

Recognition that the majority of our population relies on public transport has seen us invest R5.9 billion in the planning, construction and operating of the Integrated Public Transport Networks (IPTNs) in the thirteen (13) cities, with four (4) already running and six (6) under construction. Those in full operation are:

  • Rea Vaya in Johannesburg,
  • A Re Yeng in Tshwane,
  • MyCiti in Cape Town,
  • Go George in George,

Our Provincial Transport Operators Grant (PTOG) continues to assist bus service operations in provinces.

The taxi industry continues to register strides in making taxi services modern, friendly, safe, comfortable and profitable. We are witnesses to the South African National Taxi Association’s (SANTACO) cashless smart card payment system.

Within the framework of Accelerated Public Transport Turnaround Strategy and the review of Taxi Recapitalization , we will ensure the role of the Transport Charter Council is encapsulated in empowering the industry across the entire value chain. The driver skill improvement programmes like Operations Ndlelantle and Hlokomela, the road safety campaigns and other incentive schemes they have, all instil confidence and positions the industry well in the black economic empowerment space.

With the National Learner Transport Policy now firmly in place, and areas of responsibility clearly demarcated between the Department of Transport and the Department of Basic Education, we can celebrate the fruits of the hard work invested in getting us to this point.

We are happy that provinces too, have given a thumbs-up to the policy - an example of sound inter-governmental collaboration.

Another example similar to this, is the evolving review of the Rural Transport Strategy, the pending National Land Transport Amendment Bill, the National Transport Master Plan (NATMAP) and the Single Transport Economic Regulator (STER) Bill, all of which will see the light of day in this financial year.

The multiple victimisation of road accident casualties and their families is about to see its last rays of a very long day. The Road Accident Fund (RAF) is about to be phased out and replaced with the Road Accident Benefit Scheme (RABS).

Benefits will move away from costly administration, unscrupulous legal practitioners and shady intermediaries to the end beneficiaries. We have registered irreversible progress towards introduction of RABS.

As signatories to the United Nations Decade of Action on Road Safety, our lead agency, the Road Traffic Management Corporation (RTMC), is rolling out the following number of interventions to reduce the carnage on our roads, and to curb other related corrosive malpractices.

  • The National Road Safety Strategy,
  • The Traffic Officers Training Programme,
  • The Harmonisation of Traffic Law Enforcement, and
  • Anti-corruption programme.

Once traffic law enforcement has been declared an essential service, traffic officers will be on our roads for twenty four (24) hours a day, seven days (7) a week.

Through the RTMC led peak season campaigns, we seem to be at the crack of dawn in the reduction of fatalities. This virtual success is still nascent and fickle, but we hope it will not be a false dawn. As we always say, one death on our roads, is one death too many. While massive effort goes into peak seasons, low seasons threaten to wipe from the board, gains achieved in peak seasons. An example is what we experienced during the Freedom day/May day long weekend as compared to the Easter Period.

We have taken road safety to greater heights and have called on the young people of our country to commit and live by those commitments on road safety.

From Friday the 6th of May, we have started in Limpopo a series of Provincial Youth Summits on Road Safety. These will take place in all nine provinces, culminating in a National Youth Summit on road safety in June, when all these provincial commitments will be consolidated into a national programme to which our entire youth population will pledge adherence. With the majority of road fatalities being young people, the youth of South Africa today are emulating the gallant generation of 1976 by declaring that “Nothing about us, without us”. This progressive youth formation extended their hand to Government and started a social media movement coined “#BeingSafeIsCool”. In the spirit of the 40th year of commemorating June 16, it is encouraging to see young people displaying such activism.

The RTMC is winning the battle to wrangle the electronic National Traffic Information Systems (e-Natis), from private hands to state control, where it belongs.

With some success in Johannesburg and Tshwane of the pilot project on Administrative Adjudication of Road Traffic Offences (AARTO), the Road Traffic Infringement Authority (RTIA) is poised to do a national roll out of the project. We are appealing to the Portfolio Committee to expedite the processing of this Amendment, which will see the introduction of the demerit system whereby infringers stand to be arrested and even lose their drivers licences.  

The RTIA is coming up with a programme on Driver Rehabilitation Schools, and the 1 Million Signature Campaign to have an officially declared National Road Safety Prayer Day. 

When the Freedom Charter expressed the desire for there to be peace and friendship many in their minds wouldn’t have foreseen a transport department finding itself having to play in that space. Our contribution in this regard is captured in the role that our agency, the Cross-Border Road Transport Authority (C-BRTA) has played, especially for the last twelve months in the taxi dispute between South Africa and Lesotho.

This could have led to a cross border bloodbath, had it not been for the intervention of our Free State provincial leadership, the C-BRTA, and the formation of the National Ministerial Task Team.

Like Martin Luther King Jnr would have said, our taxi operators in South Africa and Lesotho no longer had “…a choice between violence and nonviolence but a choice between nonviolence and nonexistence

The C-BRTA has proven to be a dependable agency for our peaceful relations in the region, having come up with a Market Access Regulatory tool, which determines a fair permit system between us and our neighbours.

Honourable Members, our airspace industry is a leader - it is vibrant, proactive, exemplary and inspirational. We are world leaders, and so say all, the whole world over.

Just by way of example, the CEO of ACSA, Mr Bongani Maseko has been appointed as the Vice Chairman of Airports Council International, which is the mother body of airports globally. Congratulations Sir! The Chairperson of the International Civil Aviation Organisation: Aviation Security Panel is none other than our own CEO of South African Civil Aviation Authority, Ms. Poppy Khoza. Ms. Khoza now serves her second consecutive term – we applaud her and wish her well in her responsibilities, igama la makhosikazimalibongwe!!!

With such a vastly talented CEO, and team as knowledgeable and dedicated as hers, our compliance to the International Civil Aviation Organisation prescripts on safety and security remain the envy of many a-civil aviation authorities around the globe.

We have joined the international trend in transforming the understanding and uses of airports, from being a mere entry and exit air passenger/goods points, to being airport-cities – known as Aerotropolis. Relationship with our continent and regional blocs such as BRICS, remains one of our apex international drives, and is spearheaded by Airports Company South Africa (ACSA).

We have such sound formal agreements with Ghana, India, Brazil and Germany – the list is just growing. The leading role such as that played by ACSA, replicates itself in the following domestic interventions and expansion of its footprint around South Africa.

  • The takeover of management services of Mthatha, after much struggle by the airport.
  • The compilation of Wonderboom airport security manual.
  • The acquisition of additional land at R236 million for Cape Town airport future expansion.
  • The injection of R1.3 billion into airports for refurbishment and design planning.
  • The creation of twenty-five thousand (25 000) jobs for terminal and runway expansion projects at Cape Town and OR Tambo International Airports.

As part of our contribution to President Zuma’s 2015 Nine Point Plan, with specific focus on "Addressing the Country’s energy challenges”, ACSA and PRASA has invested in the following:

  • The 750 kilowatts George Airport solar plant, costing R16 million;
  • The Kimberley and Upington Airports Solar Plants, both 500 kilowatts, are completed and ready for commissioning;
  • Planned installation of solar panels in all South African airports – which will be propelled by more investment in airport infrastructure and the finalisation of the National Airports Development Plan (NADP); and
  • Wolmerton, one of PRASA’s biggest railway depots in Gauteng after Braamfontein, houses the new rolling stock and trains that have been received as an output of the Gibela contract. In March 2016, a R23 million rand 1 MW solar plant was successfully completed to power this facility.

These projects will go a long way in contributing to the 42% target of South Africa's power needs through Renewable Energy Sources by 2030.

The Air Traffic Navigation Services (ATNS) continues to make a significant contribution to the South African and Continent’s aviation industry, thereby promoting safer skies, interoperability and harmonization in the region. The 22yrs of safe air navigation service provision to 10% of the World's airspace is a remarkable achievement by ATNS.

ATNS has also adopted the promotion of mathematics and physical science as its flagship project, aimed at increasing the pool which can be attracted and trained as the Air Traffic Controllers. The organization has since its inception in 1993 renewed the majority of the national communication, navigation, surveillance and air traffic management infrastructure.

Ladies and Gentlemen, fellow South Africans, in the last two years the country increased its focus on the opportunities our more 3000km of coastline provide when Operation Phakisa :Oceans Economy was launched. This then called for the DoT and other departments to align strategic, legislative, policy and regulatory frameworks. This was done both for governance and economic reasons.

The South African Maritime Safety Authority (SAMSA) has wasted no time in embracing this groundbreaking economic stream. SAMSA has struck a partnership with the Nelson Mandela Metropolitan University and the Department of Higher Education in a National Cadetship Programme. This has resulted in one hundred and twenty-four (124) cadets being placed on eighteen (18) partner vessels.

A strategy to make doing business with our South African ports attractive, has seen zero percent (0%) increase on all cargo dues – thanks to the Ports Regulator South Africa. In support of drought relief and its impact on food prices, maize cargo dues for the first 5 million tons will be discounted by 50% in 2016/17 financial year. The Ports Regulator was awarded a “Clean Audit” certificate from the AG this year for 2014/15 financial year, the first time since the organisation was established. I would like to welcome the Ports Regulator in the family of entities that achieved “Clean Audits”, which include SACAA and RAF, and wish to encourage all other Transport entities to join the club.

Honourable Chairperson, our total budget for 2016/17 stands at R56 billion, a 4.5% increase from the 2015/16 budget.

The breakdown is as follows

  • Road Transport:                                      R24.5 billion,
  • Rail Transport:                                         R19 billion,
  • Public Transport:                                     R11.7 billion,
  • Civil Aviation:                                           R253 million,
  • Maritime:                                                  R122 million,
  • Integrated Transport Planning:                R79 million, and
  • Administration:                                         R395 million.

We have done and continue to do our best to focus on fiscal consolidation, cost containment, prudent and a sustainable fiscal policy approach. We believe more is not necessarily better, but that little can also be best – what is of essence is innovation, prioritisation and a combination of strategies and resources.

There is new energy to harness, new jobs to create, new roads, rail, maritime and civil aviation infrastructure to build, threats to meet and alliances to repair.

There are dreams to be rekindled and expectations to be met. There is future to be attained – a future where poverty would be banished and inequality would be condemned to the doldrums of history.

All of this requires first and foremost a spirit forged in war trenches – a massive collaboration between all of us, diverse and often few as we are, to build harmony and produce a winning South Africa.

As Sun Tzu, in The Art of War said 2 500 years ago:

There are not more than five musical notes, yet the combination of those five give rise to more melodies than can ever be heard,

There are not more than five primary colours, yet in combination they produce more hues than can ever be seen,

There are not more than five cardinal tastes, yet combinations of them yield more flavours than can ever be tasted.

We understand that the road ahead might be long and our climb steep, and that we may not get there in one year or even one term. But, honourable members, I have never been more hopeful than I am today that we will get there. We as a people will get there, together we will rise and shine, block by block, brick by brick, calloused hand by calloused hand, we will build this nation.

Honourable Members and Distinguished Guests, allow me to reflect very briefly on the Election Manifesto of the African National Congress, with specific reference to the transport sector undertakings.

We pledge together to advance people’s power in every community, because we believe indeed that local government is in the hands of local communities.

Having unleashed fifty (50) engineers and town planners, who assisted one hundred and twenty municipalities with infrastructure planning, implementation and maintenance, we now commit to forge integration of transport and social economic areas, and to ensure that tarred roads are maintained and gravel roads are tarred.

As I conclude, allow me the privilege to thank the President, the Deputy President and Cabinet Colleagues.

  • Deputy Minister Lydia Chikunga,
  • Chairperson and entire Portfolio Committee of Transport,
  • Our hardworking  Members of Executive Councils and SALGA,
  • Boards and Managements of our Entities,
  • The hardworking and committed Team Transport across the three spheres and the Ministry,
  • My loving and supportive precious family for being my source of strength; and above all,
  • The Almighty God – who has put me in the midst of it all and given me insight and strength to overcome.

May I call on all of you to heed the voice of reason and superior logic; the African National Congress, and vote for the tried and tested movement of all time on 3rd of August.

Enquiries:
Ishmael Mnisi
Cell: 0794194198

Share this page

Similar categories to explore