on Transport Budget Vote 33, National Council of Provinces
31 May 2006
Yesterday I had the opportunity to address the Budget Vote for transport in
the National Assembly. I understand that copies of that address, plus some
additional information, have already been distributed to members of the
National Council of Province (NCOP) for your convenience. In summary, I
indicated that we the departmentâs timeframes, targets and programmes aim to
âsecure cost-efficient, poverty-breaking integration across the transport
systemâ by entrenching innovation, reprioritising budgets, reinvigorating the
departmentâs skills base and those of the agencies that report to us.
Yesterday I focussed most of my attention on the three critical areas of
public transport, freight logistics and safety and security in the transport
environment. I do not want to traverse these topics in the same detail this
afternoon, but rather want to highlight a few other pertinent activities and
challenges of the transport sector that require the attention of provincial,
metro and local governments more directly.
The Department of Transportâs main concern is with the development of
policies, programmes and initiatives that provide an overall framework in which
coordinated, integrated, and targeted transport activity takes place in the
country. Our Constitution defines transport as a responsibility that cuts
across spheres of government in particular areas. This situation requires
consistent inter-government cooperation and coordination. The development of
institutional arrangements, such as Transport Authorities to coordinate
transport planning and implementation at the local, regional and metro levels
require the development of âshared understandings, attitudes and customsâ that
serve to benefit from spatial or localised tensions and not be paralysed by
rival interests. It is at the local level, where the experience and knowledge
of matters peculiar to local circumstances predominate, that the importance of
pedestrians, non-motorised transport, intra-city freight systems, public
transport integration, inter-modal linkages for cargo and people, optimal
spatial and land-use planning all come together.
Cities and metros have the instruments to drive policies to alleviate
congestion on roads, developing models that are most suited to local
conditions.
I am aware that there have been some problems in establishing Transport
Authorities around the country, after the good start by Ethekwini. It has been
some time now that we have been calling for the establishment of these
authorities at local level because we believe that their existence will go a
long way to overcoming many of the impediments to integrated planning. We
should really try to avoid translating political boundaries that find
geographic expression in the structure of municipalities and metros for example
into barriers to economic integration and the movement of people. Each local
authority is not an island cut off from the economic activity of neighbouring
areas. At the end of the day, I am less bothered about eh precise shape that
the institution of a transport authority takes as I am about delaying the
implementation of integrated transport activities across the country as a
whole.
Honourable members, there are a range of important activities that serve to
integrate and transform the relationship between the first and second
economies. Some, such as institutional arrangements and policy frameworks cover
the whole country; but it is again at the local level that the success or
failure of these programmes will be felt. There should be no inherent
structural contradiction between reducing the costs of doing business in South
Africa on the one hand, and the imperative of improving peopleâs lives,
especially those that are marginalised from what is called the economic and
social mainstream.
The enormous challenge we face is to implement programmes that are informed
by the social condition of our people, that understand that economic benefit
for the few is morally, politically, and economically unsustainable if the
majority of people, the poor, are excluded from reaping the promises of
political liberation. The tasks of the present include the need to use the
power of the developmental state towards transforming our transport system from
merely being the heartbeat of the economy to being the backbone of development
itself.
If I may just update members on where we are right now with the taxi recap:
Cabinet this morning agreed that - taxi operators who have been unable to
submit their applications by the end of business today, the 31st of May, and
who still wish to apply for new licences, can still submit applications after
this date as long as they provide written reasons for not being able to meet
the deadline of the 31st of May. Operating License Boards are instructed to
continue to receive applications for conversion of permits to operating
licences beyond the cut-off date of the 31st of May on condition that the
applicants provide written reasons, not of their own doing, which resulted in
them being unable to apply on time; and law enforcement agencies will cease to
enforce the requirement for valid operating licences, contained in the current
regulation. In particular, law enforcement agencies will cease to engage in
activities such as Operation Bambi-Skorokoro in KwaZulu-Natal which may unduly
prejudice taxi operators whose applications have not been received, through no
fault of the operator, or which have not been appropriately processed by
Operating Licensing Boards.
These details will be gazetted by the Minister of Transport and the Minister
of Safety and Security immediately. I trust this will put the issues to rest at
last.
The provision of public bus transport is implemented at the local and metro
levels as well. Buses have had to face pressures from the upward swing of the
oil prices, particularly the bus subsidies, where diesel prices were higher
than inflation figures1. Incidentally, all road transport services, including
busses and taxis, also suffer the indirect costs of poor road maintenance,
which also serve to increase costs to operators. As we review the operation of
the current system towards a more equitable system where the commuter is
paramount, we will be sensitive to the current needs and structures of all
operators. It is not our intention to favour one or other mode of public
transport over another; we want to see better coordination of routes, the
integration of fare and ticketing systems, and so on.
Preparatory work for the review of the subsidy system included auditing the
whole system of bus subsidies. Unfortunately, this audit revealed apparently
fraudulent operations, particularly in relation to Interim Contracts. In some
cases we have instituted legal action to correct the situation, but as the
investigations continue I trust that clarity will emerge to support the view
that fraud is less prevalent than initially thought. We hope that the relevant
authorities will speed up their work, so that we can move on to the
implementation of the new Model Tender Contracts. The Model Contract introduces
competitive tendering in a regulated environment. There has been tremendous
growth in demand for bus services, and bus user numbers are increasing and many
companies are operating over capacity and run additional trips that are not
subsidised at the moment.
The MTCD also allows all road based passenger transport modes including
mini- and midi buses to compete for contracts. Joint operations between taxis
and buses have already started on some long-distance routes within the system,
and this is one way to develop cheaper and more innovative ways to serve
isolated communities through the appropriate mode of transport instead of
buses. This is consistent with the vision of subsidising journeys not
modes.
Incidentally I was delighted with the report in City Press last week that
Limpopoâs Great North Transport is about to get 200 new buses worth around R250
million in a major effort to improve services. This seems a very worthwhile
example for other companies to follow.
Metrorail has now merged with the South African Rail Commuter Corporation
(SARCC) as the first phase in reorganising our commuter service, and we are on
course with the second phase of bringing Shosholoza Meyl into the arrangement.
The new entity will rationalise administrative structures primarily to deliver
its core mandate more clearly, speedily and with no confusion about where
responsibility lies for the provision of a cost-effective, regular, safe and
secure rail public transport system at the end of the day. Wide-ranging
upgrading work on stations, rail track, signalling and rolling stock is
proceeding in all SARCC areas of responsibility. Here in the Western Cape, the
R200 million extension to the Khayelitsha line is proceeding. The planning for
the upgrade and refurbishment of the Cape Town Station is nearly ready and this
project will be the largest single upgrade of a public facility since
Johannesburgâs Park Station development last year.
Parliament has been fully briefed about the National Freight Logistics
strategy, and the pack you have outlines the types of activities taking place
on the freight corridors. I would like to draw members attention to two ongoing
projects that emphasise the importance of provincially based and supported
initiatives because these link regional and even local economies to the
national economic framework.
The Douglas-Belmont rail rehabilitation and upgrade project in the Northern
Cape will keep open a line that has not been financially viable but has
enormous economic potential. There has been no serious maintenance on the line
for the last thirty years with the obvious results of line deterioration,
dreadful service, and a shift of traffic to an inadequate road system. Farmers
faced increased transport costs to such an extent that marginal grain farmers
would face extinction in the area. The only option they face was to replace
food production with game farming activities that were not reliant on
transport. The result for the area and the larger economy is clear. The impact
of the rail closure would have raised freight pricing, increased noxious
emissions in the area, increased road degradation, increased road maintenance
budgets and resulted in job losses. The inception of this project between
Department of Transport (DOT) and Department of Environmental Affairs and
Tourism (DEAT) will increase safety on the line, prevent increases in noxious
emissions, reduce freight pricing, reduce transit time, reduce operational cost
of rail services, increase the viability of farming in the area and employ in
the region of 800 people for a year in Douglas and in Stormberg in the Eastern
Cape, where the rail material is being sourced.
A similar project in Nkwaleni in KwaZulu-Natal will upgrade the railway line
to allow significant traffic be moved from the road and onto the rail, and
prevent 500 000 tons of traffic going to a rural secondary road network. The
loss of traffic to road was inevitable on the line, as the main customers of
the line were intending to build facilities that could not be serviced by rail,
as the level of rail services was so bad. The DOT and DEAT then commenced the
project to fix the line. The customers have then agreed to build rail compliant
facilities for their product and move some traffic back to rail that had been
lost over time. The imminent maturation of standing timber in the surrounding
forests will ensure more traffic going to the rail line.
This project will cost R10 million. The environmental and traffic congestion
savings resulting from this project are huge and will contribute to the
viability of a tourism strategy for the area that is currently in
development.
An important point to note is that these projects have not received much
attention outside of their respective provinces, probably because they are too
small and target marginalised areas and people. They do not have big budgets,
R39 million for Douglas-Belmont, and R10 million for Nkwalini, so there are no
âbig numbersâ to talk about. But this is their attraction: they do not need big
budgets, but the longer-term social and economic impact they will have will be
massive.
Targeted investments, rather than large investments are required in these
rural and second economy interventions. We need to seize the opportunities for
integrating first and second economy transport networks, and not let them pass
by timidly. I refer members to the recent announcement by the Premier of the
Eastern Cape about investments in the forestry industry in the former Transkei
that have come their way only because we have provided road access from
Ugi-Langeni, upgraded the rail facility in Mtata, and upgraded the
Mtata-Amabele railway line to East London.
An important aspect of transport that is frequently forgotten in the cities
and the outside world is the impact it has on what we would call the deep rural
areas. Many of these areas are isolated from major road and rail routes; they
are serviced overwhelmingly by poorly maintained and short-lived rural access
roads; and the modes of transport available to people, for their own access to
medical centres, schools or villages, are limited. Our rural transport strategy
is a central element of the Integrated Rural Mobility and Access demonstration
projects, three of which are up and running at the moment: Sekhukhune, a
cross-border development in Limpopo and Mpumalanga provinces; in OR Tambo in
the Eastern Cape, and Umkhanyakude in KwaZulu-Natal. Once again these are small
budget operations, but the benefit to local communities is great.
In OR Tambo Municipality, we have targeted Tombo and Quakeni as focus areas
for a range of non-motorised transport initiatives, including freight and
logistics co-ordination through a Multi-Purpose Centre. In Quakeni, Lusikisiki
is a hub for the Mthatha-Port St Johns-Lusikisiki Corridor.
We will link up with health and other programmes run by the province. The
initial cost of the freight facilities, health transport, school learner cycle
project, Umzimvubu safe river crossing project and common use infrastructure
will be R11,5 million. Again, a small budget for a massive result.
If I swing our attention away from the rural areas and back towards the
economic heartland of our country, I want to alert members to a special case.
There is a crisis facing a significant part of the road network in Mpumalanga
that produces extraordinary maintenance requirements for the road system as a
result of the necessary over-exploitation of road use by coal trucks moving
between coal mines and power stations in the region. Working together with the
provincial government and Eskom we have outlined a plan to build a new rail
line in the area, to take pressure off the roads; to identify alternative
methods of maintenance; and to transfer sections of the provincial network to
South African National Roads Agency Limited (SANRAL). The damage to the road is
obvious; and motorists have quite frankly become deeply fed-up with the
situation. I believe we will resolve this problem shortly, using both
short-term and longer-term plans.
Two other areas of transport activity that I would like to mention briefly
relate to aviation and maritime matters.
We are currently putting the final touches to a national Airlift Strategy
that seeks to address development requirements down the line, particularly as
they relate to the role that aviation plays to boost tourism, promote business
travel, extend the role of general aviation and low-cost airlines, and also to
promote suitable air-freight capacity. Aside from the major projects that
affect all Airports Company South Africa (ACSA) airports around the country, we
are looking more closely than before at the condition and role of aerodromes
and other airports in the country that can serve both as a basis for expanded
passenger and freight services in the country.
There are hundreds of aerodromes scattered right around the country and many
of these, for example on the Wild Coast and in Mpumalanga and the Karoo, are
well situated for tourist traffic. Other airports, such as Mtata, the airport
at Bisho, Upington and others are located in areas which lend them to greater
use as freight nodes. Provinces and local authorities will need to be part of
our rollout plans.
The maritime industry is often thought of as an interest only of coastal
provinces. Nothing could be further from the truth. South Africa and the region
depend on a safe and secure maritime environment for our economic livelihood.
Our port operations have to be efficient. As the region develops its capacity
through ports in Angola, Namibia, Mozambique and Tanzania, so the need for
South African ports to improve their services if they are to remain in the game
becomes critical. Gone are the days when we could have used tariffs or
sanctions to block development elsewhere!
At the beginning of May, the âAlexandros Tâ, a large bulk carrier sailing
from Brazil to China sank some 300 nautical miles of the south-eastern coast of
South Africa. Only seven crew members were rescued, and we think that the other
33 souls perished when the ship went down. Last year, the fishing vessel
Lindsay sank after colliding with another vessel just off Mossel Bay. Both of
these tragedies serve to highlight the dangers of a life at sea. Part of our
responsibility as a country is to provide a world-calls search and rescue and
maritime safety operation that can react promptly in situations as well as
investigate them and provide guidance to avoid them in the future. I am
currently awaiting the report from South African Maritime Safety Authority
(SAMSA) on the sinking of the Alexandros T. With reference to the ramming and
sinking of the Lindsay, the Marine Court of Enquiry has completed its work, and
I have instructed that its recommendations, particularly those relating to
improving safety in the fishing fleet context, be fast-tracked. I hope these
actions will bring some comfort to the thousands of mariners who ply our seas
for a living.
Honourable Members I have touched on a few issues in a complex portfolio. I
look forward to the debate and will respond accordingly to other issues in my
closing remarks.
I thank you.
Issued by: Department of Transport
31 May 2006
