T Mhlahlo: Eastern Cape Roads and Transport Prov Budget Vote
2006/07

Policy speech 2006/07 of MEC for Roads and Transport Mr Thobile
Mhlahlo

23 March 2006

Quality service delivery through transportation excellence

Madam Speaker,
Honourable Premier,
Honourable members,
People of the Eastern Cape Province and South Africa,
Ladies and gentlemen,

Again today we are coming to this people’s Assembly to recommit ourselves
and present a policy perspective of the Department of Roads and Transport for
members of this House to peruse. This represents a 13th presentation since the
1994 political breakthrough.

In the past our challenge and focus was to continue to attend to the
priorities of public service transformation and build consensus with the
general public for advancement of our political programme. All our
interventions were deriving from the realisation of the Reconstruction and
Development Programme (RDP) and all other government policy priorities.

Today we present both our policy and annual performance plan for 2006/07
under the new conditions.

We have entered the 12th anniversary of our freedom. We are also joining
many South Africans, especially young people in observing the 30th anniversary
of June 16. The 50th anniversary of the great Women’s March in South Africa
continues to present an exciting moment in the history of our country.

Our focus in the current period will derive from the priorities of the
Provincial Growth and Development Plan (PGDP) and the targets of Accelerated
and Shared Growth Initiative for South Africa (AsgiSA).

It is within this context that we commit ourselves to speed up service
delivery and infrastructure investment for the benefit of the general community
of the Eastern Cape.

Madam Speaker, during his State of the Nation Address, President Thabo Mbeki
made it clear that government would “accelerate investment in the
underdeveloped areas of our country.”

Infrastructure development including roads as espoused in the Expanded
Public Works Programme (EPWP) has been identified as a critical area of
intervention and priority.

The Department of Roads and Transport is expected to integrate planning to
realise government priorities.

In this second decade of our freedom, our main task remains a vigorous and
bold approach to promote mobility of our people especially in rural areas of
our province.

Without reciting the inheritance of the past both in terms of Bantustan and
Cape Provincial Administration, we all understand the implications and
challenges presented to the democratic state and masses of our people by that
past.

The Department has proved on many occasions its readiness to undertake its
task of playing a facilitative role in propelling the provincial economic
opportunities thus creating a better life for all our people while further
creating space for all role players to participate in our programmes.

Government wants to sustain growth and meet targets of 4.5 percent in the
short term increasing to six percent in the medium to long term through large
scale infrastructure spending.

The critical challenge we face is to continue to redress the imbalances of
the past through the implementation of the Reconstruction and Development
Programme (RDP) objectives with regard to the rehabilitation of our transport
infrastructure.

* Adelaide to Bedford (R105 million)
* Cala to Lady Frere (R155 million)
* Ndabakazi to Tsomo (R115 million)
* Dutywa to Ngcobo phase one (R132 million)
* Dutywa to Ngcobo phase two (R197 million)
* Perseverance to Despatch (R23 million)
* Sterspruit to Telle bridge (R142 million)
* Mthatha bridge (R32 million)
* Flagstaff to Holy Cross Hospital (R142 million)
* Matatiele to Mount Fletcher (R108 million)
* Dutywa bridges (R9 million)
* Dimbaza to Middledrift (R161 million)

As part of a broad strategy deriving from the PGDP, transport infrastructure
investment remains critical in our plans and government’s budget allocations
confirm that and present a need to meet the priorities.

The strategic intervention of the state in integrating roads planning
together with transport has given impetus to our programme and improved
connection and mobility of our people particularly the poor and aligned
planning at a central point in an innovative way.

It further contributes to the implementation of the AsgiSA.

Since the start of this integration, we completed the construction of the
following roads:

As we speak, work is in progress in the following roads:
* Cala to Lady Frere phase two (R202 million)
* Maclear to Mount Fletcher phase two (R125 million)
* N2 to Kei Mouth (R260 million)
* Adelaide to Fort Beaufort (R160 million)
* Mthatha to Qokolweni (R125 million)
* Klipplaat to Jansenville (R13 million)
* Ugie to Langeni phase one (R194 million)
* Ugie to Langeni phase two (R297 million)

The specifics of other major projects are detailed in the annual performance
plan.

However, these projects are a drop in the ocean compared to the real
backlog. Of the 5 200 kilometres of provincial surfaced roads, 2 800 are in a
poor condition and 25 000 of the 38 400 kilometres gravel roads are in a poor
condition.

Honourable Speaker, in this financial year the Department’s priority is to
balance our capital and maintenance programmes. As we continue to build new
roads our maintenance programme will run concurrently.

Therefore as from this year our budget will give most priority to the
maintenance of our road network.

Of our R1.98 billion allocation the roads infrastructure programme has the
largest allocation of R1.48 billion to ensure that the department provides the
strategic road network which is aligned with the PGDP and AsgiSA.

Over the Medium Term Expenditure Framework (MTEF) period the Department
plans to design and construct 1 100 kilometre (km) of new surfaced roads. This
will be spread amongst the districts with 46 km in Cacadu, 67 km in Ukhahlamba,
62 km in Chris Hani, 91 km in Alfred Nzo, 187 km in OR Tambo, 109 km in
Amathole.

The value of new roads for this year is R630 million. Over and above these
new roads more than 500 km of cross border projects will be implemented.

The existing surfaced roads will receive attention over the MTEF period with
major rehabilitation projects being designed and implemented on 462 km of the
network to the value of R207 million. This will be spread in areas such as
Cacadu (238 km), Amathole (116 km) and Chris Hani (108 km).

Currently, only 30 percent of our budget is spent on maintenance and this
will increase by 37 percent (R50 million) in the new financial year. Although
according to the constitution access roads are the responsibility of local
government they form a vital part of the overall transportation network and as
such it is the responsibility of this Department to see that this vital area of
service delivery is addressed.

Final proclamation of the Provincial Road Network (PRN) has unfortunately
had to be held back pending the finalisation of the national harmonised
classification system.

The national Department of Transport is currently refining the guidelines in
terms of Road Infrastructure Framework for South Africa (RIFSA).

The province of the Eastern Cape will be used as the first test case for
classification. As part of this process the debate on whether R72 or so called
coastal route between East London and Port Elizabeth should be a national road
has been reopened with our national counterparts.

Honourable Members, we will be kept abreast of the developments on this
matter.

As far as implementation of the PGDP roads projects is concerned the
Department is pleased to announce that good progress is being made on the Ugie
to Langeni road. This multimillion rand road which forms part of the Kei Rail
Project, is by far the most challenging road engineering project being
implemented anywhere in the country at present!

The design of the first phase of the PGDPs wild coast meander has commenced
with the upgrading of the road from Tombo Store on the R61 to Isilimela
Hospital. The feasibility study of the remainder of the route will be processed
in the new financial year.

As government we have to ensure that our projects particularly on
infrastructure development create jobs for our people through labour intensive
methods as espoused in the Expanded Public Works Programme (EPWP). Last year
the Department’s roads capital programme created an average of 40 000 person
days of employment per month. Renewed attention is to be given this year to the
replacement and upgrading of road signs with a special allocation of funds for
each district.

Madam Speaker, in heeding the national call to accelerate growth and create
jobs the department this year will set up a new community based transportation
programme with a budget of R84.5 million.

This new programme will specifically deal with community based and labour
intensive methods of road construction and maintenance to build sustainable
livelihoods and push back the frontiers of poverty.

Through this programme households will maintain certain stretches of road
and obtain permanent salaries from the Department. This includes road
maintenance, upgrading, construction, focus on roadside animal management,
pedestrian safety, footpaths, non-motorised transport etc.

The additional R48 million for the 2006/07 financial year for this community
based transportation programme will be equally allocated (R8 million) per
district and will result in an estimated 30 000 additional work opportunities
over the MTEF period thus 5000 per district.

It would further result in the construction of approximately 300 km of new
low volume roads and the maintenance of approximately 5 500 km of existing
roads, thus significantly improving the quality of the overall provincial road
network and transportation system.

The targeted roads will assist in improving accessibility to economic
activities, tourism opportunities, schools, clinics and other government
services.

Honourable Speaker, in her state of the province address last month the
honourable Premier, Dr Nosimo Balindlela, announced that this year would see
the reopening of the railway line between East London and Mthatha. I am happy
to announce in this house that the refurbishment of this line widely known as
the Kei Rail project is now complete.

Since the start of the refurbishment process R105 million has been spent.
About 1 900 people were employed in which 40 percent were women, 15 percent
youth and one percent disabled.

The East London to Mthatha railway line is now ready for operations and the
Department is vigorously engaging its national counterparts to ensure that a
regular train service runs this year.

After the provincial government’s declaration of the area between East
London and Mthatha as the Kei Development Corridor with Kei Rail as an anchor
project the Department of Roads and Transport had commenced with the plans for
an economic initiative that entails appropriate “packaging” of all linked mega
and PGDP projects of scale and impact in this corridor and region.

These include the N2 toll road, Kei Rail, the mass food production project
and produce markets, the East London Industrial Development Zone (ELIDZ), the
wild coast spatial development initiative and other tourism initiatives, timber
processing facilities at Ugie and Langeni as well as other major road, social
and engineering infrastructure projects.

Two of the provincial icon projects in this Kei Development Corridor that
will be packaged are the Wild Coast Meander Road and the Umzimvubu Project.

This year the Department will further fast track its “Moving Back to Rail”
strategy. Our main task is to revive public transport and continue with the
extension of the East London/Berlin to King William’s Town rail commuter
service project; the proposed Port Elizabeth/Motherwell/Coega IDZ railway
commuter service project and the continuation of the Kei Rail Project.

Discussions are taking place between the Department, South African Rail
Commuter Corporation (SARCC), Spoornet and Metrorail about the reopening of the
railway line between East London and Alice, which was close many decades
ago.

This initiative will assist in the provision of a safe and reliable public
transport option to commuters as instructed by the Premier through her address
in this house last month.

With the declaration of Port Elizabeth as the main venue for 2010 Soccer
World Cup and East London and Mthatha as training camps that means we need to
accelerate the provision of transport infrastructure that would meet world
class standards.

Last year I stood on this podium and committed this Department to support
and restructure the bus industry in this province. Visible and decisive
advances have been made in this regard and I am happy to report that
restructuring of the bus services in the former Transkei region has taken place
through the establishment of a single legal entity called Africa’s best 350 Ltd
by small bus operators.

Currently these operators get subsidies from government as individuals and
this was not economically viable. They came together to establish this single
legal entity which is a 100 percent black owned company in which all the bus
operators are shareholders. The state’s role is to subsidise the 166 identified
routes for seven years with a R16.7 million subsidy per year which makes R73
million fare income for the company with a R100 million annual turnover.

I want to remind the honourable members of this House and the public
generally that this subsidy is made to benefit the poorest of the poor in our
province.

The process of restructuring Mayibuye Transport Corporation (MTC) so that it
can become a viable corporation is currently receiving priority.

The Department has applied to the national Minister of Transport for a
negotiated contract which will add value in the recapitalisation of the
corporation. In this financial year R15 million has been provided for the
recapitalisation of Mayibuye and a further R30 million over the MTEF.

The first phase of the Taxi Recapitalisation project has started in the
province with the process of converting permits into operating licences and
register taxi operators as tax payers. Already 6 929 applications have been
received and 3 045 operating licences have been approved by the transportation
board and will be formally issued in the new financial year.

Madam Speaker, the legacy of the past still haunts our people especially in
the rural areas where there is poor access to government services and
facilities. In this regard we are promoting the use of bicycles in an effort to
reduce the number of school children walking unacceptable distances to access
learning centres.

We have reinforced our Shova Lula Bicycle project to reach as many rural
areas as possible. On the 28 February I was in Sterkspruit to hand over 150
bicycles to grade 11 and 12 learners from Ukhahlamba District. This week
further 50 bicycles were handed over for young children to access learning
centres in Matatiele. The Department together with the Department of Education
will manage the process of distribution. These are not individual’s bicycles
but they belong to the allocated schools.

We will intensify this project this year and reach other districts such as
Cacadu and Amathole.

Honourable Members, I am humbled to inform this house about the progress
that we have made in our efforts to restructure the Bhisho and Mthatha
airports.

The aims of this restructuring are:

* To ensure adherence to the National Policy (White Paper on Civil Aviation
of March 2005) where it is stated that expressions of interest were advertised
in October 2005 in the media and 14 submissions were received. Next month
(April), we will announce the outcome which must meet all government general
objectives.

Apart from the above initiative the presence of one of the South African
Police Service (SAPS) air wing helicopters has already improved activities at
the Bhisho airport, while renovations are still taking place on the military
base to prepare for the formal relocation of the unit from Port Elizabeth to
the airport. The Minister of Transport paid a visit to the airport and we are
exploring possibilities to ensure its maximum utilisation.

Madam Speaker, traffic management remains one of our most visible programmes
to achieve our mission of providing a safe passage for all road users in this
province. This programme has been allocated R120.4 million for this financial
year to ensure that our law enforcement agencies undertake their task
effectively.

I am happy to inform this house that this Department continues to achieve
effective practical cooperation between the three spheres of government in
ongoing road traffic and road safety management.

Government should not be involved with operating airports but should
encourage private sector involvement. Government, however, remains responsible
for ensuring that airports contribute to the socio economic development of the
area.

* To reduce the financial cost on the provincial government.
* To enhance usage of our airports.
* Involve the private sector, particularly the small, medium and micro
enterprises (SMMEs) by outsourcing services or airport’s management.

During the 2005/06 festive season we had a successful Arrive Alive campaign
where law enforcement was executed in all six districts of the Department in
partnership with traffic officers from the municipalities, SAPS, South African
National Defence Force (SANDF) and the emergency medical and rescue
services.

I would like to congratulate our law enforcement agencies for the good work
throughout the year and during the peak seasons. Through you, Madam Speaker, I
would like to request this House to observe a moment of silence to remember all
the people, who lost their lives while travelling on our roads last year.

This month 30 new traffic officers resumed duties which brought our total
provincial traffic staff compliment to 340 officers. In strengthening our
efforts to curb drunken driving on our roads we have purchased eight more
dragger machines for alcohol testing to add the current 11 machines.

Speed checking machines have been increased by 36 in addition to 12. The
purpose is to have each traffic officer with at least one state of the art
machine for the next financial year.

As part of infrastructure investment in this province we are commitment to
intensify our law enforcement strategy. Presently we have weighbridges in
Mthatha and Kinkelbos. This year will see a third weighbridge being constructed
in this province near Queenstown.

Honourable members, on 1 March 2006 the people of the Eastern Cape and South
Africa gave the ruling party a mandate to deliver on its plan to make local
government work better. In building cooperative governance between provincial
and local government we are charged with the responsibility to assist
municipalities to respond to the challenges that continue to confront them.
This Department is doing its best to assist municipalities especially those in
the previously disadvantaged areas to build and upgrade their facilities.

Out of the targeted nine vehicles testing stations the Department has
managed to build and complete two for King Sabata Dalindyebo and Engcobo
municipalities. The construction of the Umzimvubu Municipality vehicle testing
station in Mount Frere has commenced and due for completion in the next
financial year and an amount of R5.7 million was allocated for that
venture.

The Department has further allocated an amount of R971 000 to the Great Kei
Municipality for the building of a driving licence testing centre at Komga and
this facility is due for completion in the next financial year.

Motor vehicle registrations and licensing in the Nelson Mandela Metropole
Municipality are being done by the South African Post Office (SAPO). The
Municipality’s contract with the Department expired on 28 February 2006. The
SAPO has already opened 31 outlets within the metro and some sites are open
after hours on weekends and public holidays to enhance service delivery.
Assisted by provincial Treasury indications are positive that the Department
will recover all outstanding license revenue from municipalities including the
metro.

Madam Speaker, the province is going to fast track its strategy in terms of
vehicle licenses and miscellaneous fees. As from the 1 April 2006 these fees
will increase by 10 percent in order for us to catch up with other
provinces.

Based on security and risk management principles the Department will
initiate consultations with all stakeholders on the possible redesign of the
provincial license number plate this year which should support the re-branding
initiative of the province and the PGDP.

Honourable members, it is gratifying to report on the successful monitoring
of the state vehicles contract between the provincial government and Fleet
Africa. One of the major successes is the effective monitoring of the ad hoc
rental of vehicles through Fleet Africa by government officials through
reducing cost by 70 percent overall.

Since the implementation of the contract three years ago the fleet
management system has improved and the number of complaints received on vehicle
misuse has drastically reduced. Our campaign to stop the misuse of government
fleet was very successful with a large amount of vehicles being confiscated and
disciplinary actions taken by the departments concerned.

Since the advent of democracy, government has made an indelible mark in
transforming the economy of this country despite the challenge of skills
shortage which has affected all economic sectors including transport. Our PGDP
is vociferous around the issue of skills development as a strategy to fight
poverty and underdevelopment.

In this ‘age of hope’ which our President constantly refers to our
contribution as this Department cannot be enough without ensuring that we
invest on the future of our children.

To this end the Department since 2003 spent R2.3 million on 85 bursaries for
previously disadvantaged youth of this province to study careers in the
transport sector which include aviation, transport economics, civil and
mechanical engineering, information technology etc. This year alone we spent
R1.3 million to 34 bursaries.

We have established a relationship with the institutions of higher learning
in order to achieve our objective of providing access for children to careers
in the transport sector. An Incubator Schools Maths and Science Pilot Project
(ISMSPP) have been established in partnership with star schools, business
sector and institutions of higher learning.

About 150 grade 8 to 12 learners are benefiting in the Nelson Mandela Metro.
Last year we expanded this programme to the King Sabata Dalindyebo municipal
area in partnership with Walter Sisulu University. As from April 2006 children
from rural areas will have an access to the state of the art laboratories of
Walter Sisulu University every weekend and during school holidays. The new
financial year will see the expansion of this project to the Nkonkobe area in
partnership with the University of Fort Hare.

As we continue to transform our country on principles of democratic order,
the economic element has not been realised. One of the critical challenges is
to improve the access of the previously marginalised into the main stream of
the economy. To this end the Department this year will implement the provincial
Broad Based Black Economic Empowerment Charter (BBBEEC) for the transportation
sector.

Through this charter we will ensure that the Department’s operations are
transformed to be compliant with the government’s policy objectives. This is a
commitment from the Department to work with all stakeholders in the transport
sector to develop a world class industry that will grow in size, create jobs,
stimulate growth and development and provide accessible and affordable
transport services to our people.

Honourable members, all the commitments that we have made in this house can
only be realised if the Department continues to motivate and develop its
managers. By June 2006 the Department will start a job enrichment and rotation
programme to ensure that our governance leaders are multi skilled in line with
the requirements of the Department of Public Service and Administration.

Likewise the Department has adopted a Service Delivery Improvement Plan
(SDIP) and will participate in the Office of the Premier’s Balasela
Project.

In May 2006, the Department will launch its generic and function specific
service standards as required by the public service regulations. In December
2006 we will publish our first citizen’s report to reflect our level of
compliance with these standards.

By June 2006 the current provincial traffic information centre at Wilsonia
will be repositioned to serve as a client centre for the whole Department. This
call centre with the toll free number 0800 644 644, will be equipped with state
of the art equipment and technology to track any service delivery request,
suggestions or complaint (e.g. road condition, quality of public transport,
accidents reporting etc). In further increasing public participation on the
Departmental programmes this Department will host a provincial transportation
summit in East London from 20 to 21 April 2006.

The objectives of this summit are to:

* Harness development imperatives as espoused in the PGDP through transport
mobility.

* Identify and explore challenges presented by economic development and
impact in our transport system.
* Assist in fast tracking the existing mechanisms for transformation of our
public transport system.
* Promote harmonisation and appreciation of the role played by transport in
economic development and job creation.
* Promote integrated strategic initiatives that will give expressions to labour
intensive methods in the transport sector.
* Highlight provincial challenges in our transport policy directives towards
possible review of the provincial White Paper on transport.

I would like to take this opportunity to invite the honourable members to
this summit to ensure that we get inputs from all relevant stakeholders.

In conclusion, Madam Speaker, it is commonly known that South Africa’s
current development path has not yet adequately resolved questions of poverty
and inequality.

This Department is committed to deliver on its mandate and ensure that we
support all government initiatives that seek to deal with the imbalances of the
past.

We believe that through accelerated and shared growth within the transport
sector we can emancipate our people particularly women and youth, thus
ultimately creating a better life for all our people.

I thank you.

Issued by: Department of Roads and Transport, Eastern Cape Provincial
Government
23 March 2006
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za/)

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