REFOCUSING FOR DELIVERY Repositioning transport as a driver of economic growth Ms Wrenelle Stander

1. Department of Transport REFOCUSING FOR DELIVERY Repositioning transport as a driver of economic growth Ms Wrenelle Stander Director General, Department of Transport 26 May 2004

2. Department of Transport

3. Department of Transport Consultation The strategic team has consulted with and taken on board the comments where necessary of: •Senior Management •Deputy Directors •All other staff Obtained approval from: •Minister of Transport

4. Department of Transport Situation (1) •The Department of Transport (DOT) is responsible for developing transport policy and providing transport infrastructure to support Government’s broader socio-economic objectives • 492 posts of which 321 are filled •The DOT has delegated its service provision responsibility, as well as its regulatory responsibility to a number of public entities.

5. PARLIAMENT (Transport Portfolio Committee) MINISTER OF PUBLIC ENTERPRISES MINISTER OF TRANSPORT NATIONAL DEPARTMENT OF TRANSPORT DPE CBRTA SANRAL SACAA TRANSNET SAMSA ACSA Ports Economic Regulator SARCC NPA ATNS Railway Safety Regulator Int Air Services Committee RAF Air Services Licencing Council Regulatory Committee RTMC REGULATORS AARTO SERVICE PROVIDERS Department of Transport Public entities

6. Department of Transport Situation (2) •The 2004/2005 budget is 6.8bn •Subsidies: •R2.2bn buses (Provinces), •R2.5bn rail (SARCC), •R1.44bn roads (SANRA) •Transfers: R583m •DOT “discretionary”: R149m

7. Department of Transport Challenges •Implementation of policies and initiatives has not been as effective as we would like • •Departmental capacity stretched • •Complicated organisation structure • Responsibility for strategic areas fragmented • •Many projects no clear strategic focus • •Lack of emphasis and capacity within DOT in key areas: Logistics, Agency oversight, Regulation: Rail, Aviation, Maritime, Transport security • •Weak internal administrative support systems: contract management, risk management, IT

8. Department of Transport Questions •How can DOT execute key initiatives successfully and effectively? •Could the DOT organisation be refocused to support successful policy implementation?

9. Department of Transport Options for Change •Initiate a process to realign levers for delivery •Build measures and enforcement process to get provinces and public entities to perform •Cut back on policy writing and refocus on key 3-4 initiatives • Strategically align and urgently build capacity within the Department of Transport

10. Department of Transport Mission Lead the development of transport by creating a framework of sustainable policies, regulations and implementable models to support government strategies for economic, social and international development

11. Department of Transport DOT Values Continue Start Stop • Silo thinking • Finger-pointing • Passing on responsibility • Duplicate tasks • Fire-fighting • Highlighting problems, not solutions • Endless discussions • Procrastination • Communication • Knowledge-sharing • Think and act as one team and one goal • Take responsibility • Best practice sharing • Improve communication • Take ownership • Clarify roles and responsibility • Be constructive • Back to basics • Improve data quality

12. Department of Transport Critical success factors for delivery CLEAR POLITICAL LEADERSHIP EFFECTIVE INTER-SPHERE IMPLEMENTATION LEVERS COMMUNICATION! COMMUNICATION! CLIENTS AGENCIES DOT CAPACITY ROLE

13. Department of Transport Context The DOT strategies will as far as possible be implemented to support government priorities regarding: •Economic growth •Poverty alleviation •Job creation: expanded public works programme •Rural development •Black economic empowerment •Gender equity • Access for people with disabilities •Technical innovation

14. Department of Transport Performance Measures 1. Competitive costs 2. Safety improvement 3. Reduce infrastructure backlog 4. Improved access 5. Reduce time to transit

15. Department of Transport Strategic Imperatives Three year imperatives: 1. Lead the process to eliminate significant bottlenecks and costs in Freight logistics 2. Facilitate the improvement of the delivery of public transport services to the rural and urban poor 3. Lead and accelerate the process to improve land transport safety 4. Overhaul the capacity of DOT to execute on the agreed strategy

16. Department of Transport 1. Freight Logistics and Development Corridors(1) •Develop 2014 scenario for logistics •Economic modelling •Freight Survey (2014) •Accelerate completion of an inter-governmental integrated strategy with stakeholders for Cabinet approval •November 2004 •Strategy development in progress

17. Department of Transport 1. Freight Logistics and Development Corridors (2) •Target a critical corridor to test the strategy model (for example Gauteng-KZN) •Develop action plan forpilot •Motivate infrastructure investment plan to Cabinet •Implement •Codify results and replicate model to other corridors • Review of marginal railway lines: pilot for example the kei Project - Umtata-AmaBele/East London

18. Addressing the land freight bottleneck Enhance supply chain efficiency Potential cargo/ commodity/ product/ goods throughput of the SA economy Reduction in through put due to port in-efficiency Reduction in through- put due to road in-efficiency Reduction in through put due to rail in-efficiency Enhance supply chain efficiency • Ports represent the most severe backlog to international trade, as there is no alternative to export/import. The bottleneck is particularly acute at the Port of Durban and, more particularly, at the container terminal. This bottleneck is expected to cost the SA economy in the region of 0.43% of GDP. • The rail delivery bottleneck is less severe. For most high-value commodities, road provides an alternative (although more costly). A bottleneck does exist for lower value break-bulk or bulk where road is not a feasible alternative and where there are rolling stock shortages. • Road inefficiencies are low but externalities remain high, particularly in an environment where road carries goods more suited to rail transport.

19. Department of Transport 2. Public Transport (1) •Facilitate the improvement of the provision of public transport services through: •a better understanding of user needs and the realignment of public transport services: analysis of the National Transport Survey, as well as the establishment of a Public Transport Task Team); •the initiation and codification of suitable rural and urban public transport implementation models; •Pilot for design of non motorised transport in rural areas •Appropriate institutional arrangements for delivery including the integration of Metrorail, ShosholozaMeyl •Public Transport infrastructure investment plan •Increasing safety: infrastructure upgrades: taxi restructuring, competitive tendering in bus industry, as well as upgrades in rail infrastructure; enforcement: see land transport safety; institutional reform: see land transport safety; reduce fraud and corruption: see land transport safety

20. Department of Transport 2. Public Transport (2) •Review and assess the whole public transport sector, including a revision of subsidy investment •September 04 •Internal transport forum to consider the transport requirements for the Soccer World Cup 2010 already established, which we will extend to a multi stakeholder forum

21. Department of Transport 3. Land Transport Safety (1) •Coordinate road traffic management functions • RTMC implementation to be fast tracked under the leadership of its Chief Executive Officer • •Relocate road traffic offences away from the courts and introduce the points penalty system •Enhance the national traffic information system • Resolve NATIS / e-NATIS migration • Resolve funding issues – Trading Account • RTMC

22. Department of Transport 3. Land Transport Safety (2) •Reduce fraud and corruption and efficiency in vehicle licensing inspection (40% of stations owned by state) • Periodic inspection regulations for older vehicles • Evaluate Loveday model and revise • Build implementation capacity across nation • Roll out to those areas where 80% of fraud and corruption takes place

23. Department of Transport 3. Land Transport Safety (3) •Improve enforcement • Complete feasibility study for National Highway Patrol • Develop and implement strategy for vehicle overloading on national highways • RTMC •Review Arrive Alive strategy and enhance for 2004/05 • December 03 (2.3% improvement over December 02) • April 04 (15% improvement over April 03) • Co-responsibility

24. Department of Transport 3. Land Transport Safety (4) • •Develop implementation plan for restructuring the Road Accident Fund • Inter-departmental Committee has resumed its work • Expert committee to be appointed – advert closed •Accelerate the implementation of the railway safety regulator

25. Department of Transport 4. Enhancing the Capacity of DOT (1) •Align the organisation model around the strategy •Alignment complete, implement new structure •Identify and fill competency gaps •Correct appointments, on-the-job training, secondments, contract appointments •Develop decision matrices to accelerate delivery •Build technical capacity in the following areas: •Logistics •Agency oversight •Regulatory capacity: rail, aviation, sea •Communication •Analysis: Scenario planning and economic analysis

26. Department of Transport 4. Enhancing the Capacity of DOT (2) •Develop Leadership: leadership development programme •Build a more effective performance management culture •Develop staff and create a satisfying and happy workplace •Develop and recruit African women to occupy senior positions in the organisation •Develop effective partnerships with other institutions to create leverage •Develop effective partnerships to build the capacity of the DOT

27. Department of Transport 5. Regulation (1) •Economic Regulation • Develop an economic regulatory framework to support the development of an effective delivery system for logistics and public transport: transport economic regulator • Establish economic regulatory capacity within the DOT • Oversee existing economic regulators: Regulating Committee, ASLC, IASC, •Safety Regulation • Oversee existing safety regulators: SACAA, SAMSA, RSR, RTMC • Legislation, institutional capacity, good corporate governance •

28. Department of Transport 5. Regulation (2) Security oversight • Aviation Security Plan, • ISPS Code (Maritime Security) • Develop a response to transport security Search and Rescue • Facilitate the provision of a Search and Rescue service for Southern Africa – launch of MRCC June 04 Accident and Incident Investigation • Investigate the feasibility of establishing a transport accident and incident investigation unit – responsibility currently lies with safety regulators – referee and player

29. Department of Transport 6. Policy and Planning (1) •Analysis and Policy development • Strategic leadership • ITS, Research and Innovation • Transport Roundtable: September / October 04 • Analytical and research support to strategic flagship initiatives: Logistics and Public Transport • Policy development • Aviation Policy Review (October 04) • Maritime Policy (March 05) • Custodian of all DOT data • Databases

30. Department of Transport 6. Policy and Planning (2) •Transport planning and Coordination •Input into development of infrastructure investment plans: public transport and logistics •Implement the NLTTA, •Co-ordinate and drive DOT interdepartmental inputs: EPWP and MITT •Co-ordinate all DOT interactions with other spheres of government •Provide secretariat support to COTO and MINMEC

31. Department of Transport 6. Policy and Planning(3) •Impact and Process Monitoring: Monitor the extent to which transport policies have •improved or weakened the transport system •given adequate guidance and direction to provinces and public entities •contributed to improved efficiency, cost, travel times and delays •contributed to other government strategic initiatives: EPWP, BEE, poverty alleviation etc

32. Department of Transport 7. Governance and oversight of public entities • Public entity oversight • confirm and clearly define the role of the minister and department in relation to transport agencies • expand the range of current regulating monitoring instruments • expand monitoring to include impact reporting • redefining DOT’s role and expanding capacity • defining concurrency between the transport economic regulators and the competition commission

33. Department of Transport 8. Regional Transport Integration •Increase South Africa’s participation on international transport fora •Co-ordinate the implementation of the SADC Protocol •Co-ordinate South Africa’s transport contribution to the NEPAD implementation programme •Co-ordinate South Africa’s transport contribution to the India South Africa Brazil implementation programme •Co-ordinate South Africa’s transport contribution to strengthening South –South relationships •

34. 96,3% Department of Transport Budget Breakdown 2004/05

35. Other 3,8% Roads 21,3% Other Transfers 1,0% Bus 31,9% Transport Planning 0,4% Other 9,4% Urban Transport Fund 0,7% Arrive Alive 0,8% Maritime Safety 1,1% Rail 37,4% NaTIS 1,6% Department of Transport Budget Breakdown 2004/05

36. Capacity Dev. 10% 15% RTMC RSR 5% 16% SACAA 6% SAMSA 1% MRCC 6% NSRI Memberships 10% 22% Non-motorised 9% Taxi process Department of Transport Breakdown Other Transfers 2004/05

37. Research & Dev. R 7,5m Ports Authority R 7,5m Safety Promotions & Education R 11,3m Policy Development R 18,2m Inspectorates R 22,6m Discretionary R 86,3m Personnel R 99,6m Department of Transport Breakdown All Other Expenditure 2004/05

38. Department of Transport Thank you