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PRESENTATION ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT IN THE ROAD FREIGHT SECTOR 12 MARCH 2013

PRESENTATION ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT IN THE ROAD FREIGHT SECTOR 12 MARCH 2013. MR MAWETHU VILANA DEPUTY DIRECTOR-GENERAL: TRANSPORT. PORTFOLIO COMMITTEE ON TRANSPORT. CONTENTS. Brief

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PRESENTATION ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT IN THE ROAD FREIGHT SECTOR 12 MARCH 2013

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  1. PRESENTATION ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT IN THE ROAD FREIGHT SECTOR12 MARCH 2013 MR MAWETHU VILANA DEPUTY DIRECTOR-GENERAL: TRANSPORT PORTFOLIO COMMITTEE ON TRANSPORT

  2. CONTENTS • Brief • B-BBEE Regulatory Framework • B-BBEE Scorecard & Scope • Challenges • Support Services • Monitoring & Evaluation 2

  3. BRIEF • The invitation letter requested the Department to brief the members of the Portfolio Committee on: • “The Transport Sector B-BBEE Charter in reference to the Road Freight Sub-sector B-BBEE Code”; • “The support given by the Department to emerging trucking companies to protect them against exploitation”; and • “The monitoring of companies that contract BEE trucking companies” 3

  4. B-BBEE REGULATORY FRAMEWORK (1) B-BBEE Act DTI Codes of Good Practice TRANPORT SECTOR B-BBEE CODES AVIATION CODE BUS CODE FORWARDING & CLEARING CODE MARITIME CODE RAIL CODE ROAD FREIGHT CODE TAXI CODE PUBLIC SECTOR CODE

  5. B-BBEE REGULATORY FRAMEWORK (2) 5

  6. B-BBEE REGULATORY FRAMEWORK (3) • The Transport Sector B-BBEE Sector Code which comprises 8 Sub-sector Codes inclusive of the Road Freight Sub-sector Code was gazetted in August 2009 • Start Date of Implementation is August 2010 following the 1 year transitional period • We are in the 2 years and 7 months implementation phase • Developments with regard to the amendment of the B-BBEE Act & review of the Department of Trade & Industry Codes of Good Practice on B-BBEE are followed 6

  7. B-BBEE SCORECARD 7

  8. SCOPE • Supply Chain Management Companies • Logistics Companies • Trucking Companies • Transport Management Companies • Transport Brokers • Associated Labour Brokers • Management Companies for Owner Driver • S.A registered Cross Boarder Operators • Parcel Delivery Services • Motor Ferry Companies • Cash in transit Companies 8

  9. CHALLENGES Major challenges for emerging trucking companies Lack of Finance Lack of Long-term Contracts Unscrupulous BrokersFOCUS Lack of Skills & know-how Of the trucking industry

  10. SUPPORT SERVICES • Business Opportunities • Eskom Contracts • Transnet Freight Rail & Transnet National Ports Authority • Contracts Mining Companies • Funding • IDC/ABSA funding Scheme • IDC/Daimler Chrysler Scheme • NEF – Working Capital • Skills Development • TETA skills development programme • SEDA business plan & mentoring programmes

  11. SUPPORT SERVICES • BEE Directorate • Provide advice, information & support to on Sub-sector Codes, Finance, Business Plans, Skills Development, Contracts, Owner Driver Schemes, etc. • DOT in partnership with DTI to deal with unfair BEE practices • Implement Sub-sector Codes • Monitoring & Evaluation The support services by the Department help to protect emerging trucking companies against exploitation & fronting

  12. MONITORING & EVALUATION

  13. CONCLUSION • Transport Sector B-BBEE Codes – The codes will be reviewed and aligned after the new B-BBEE Act & DTI Codes of Goods Practice on B-BBEE are finalised • Will continue to implement the sector code • Continuously educate, inform & support emerging truck companies 13

  14. THANK YOU 14

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