Department of Transport Annual Report 2013/14

1. Department of Transport Annual Report 2013/14 1

2. Contents • Background • DoT Overall Performance • Performance per programme • DoT Equity Statistics • Adjusted Budget 2013/14 • Expenditure in 2013/14 per Programme • Expenditure in 2013/14 per Economic Classification • Funds shifted in 2013/14 • Under / (Over) expenditure in 2013/14 • Expenditure Breakdown • Rollovers to 2014/15

3. Key Focus Areas for the Report • Performance of the Transport Sector; • Link between non-financial and financial results; • DoT Organisational Health and Capability to deliver policy objectives; • Progress on issues raised by the Auditor-General.

4. Background • Report focuses on the progress made with the implementation of programmes & projects in 2013/14 • Focus was on optimal performance of deliverables in terms of the MTSF & MTEF • Targets were guided by the outcomes-based approach (Outcome 4, 6 and 7) • Implementation of programmes was directed by the NDP, NGP & PICC ( In particular SIP 4)

5. Performance Overview of the Transport Sector for the 2013/14 Financial Year • Transport Sector remains key to regional and continental development; • Strengthening position as gateway to Africa requires continuous maintenance, expansion and upgrading of transport infrastructure networks; • In this report, DoT reiterates the need for increased investments in public transport infrastructure, restructuring current subsidies to promote integrated settlements and transport infrastructure projects to improve access to opportunities for the urban and rural poor.

6. Performance Overview of the Transport Sector for the 2013/14 Financial Year Integrated Transport Planning • National Household Travel Survey 2013 and Statistical Bulletin 2011 completed in the period under review; • Objectives of the survey were to: • Understand transport needs and behaviours of households; • Ascertain cost of transport for households (level of affordability); • Measure availability, ownership and use of motor cars; • Assist in identifying disadvantaged regions and transport needs for investment in transport infrastructure.

7. Performance Overview of the Transport Sector for the 2013/14 Financial Year Rail Transport • PRASA projects implemented in the year under review • 598 railway coaches overhauled and upgraded; • Bridge City Rail Extension completed. The aim of these projects were to minimise train crashes and alleviate risks on the lives of train commuters posed by ageing infrastructure • Green Paper on Rail Transport Policy concluded. Once approved, the Policy will address areas of infrastructure investment and regulations in the Rail Transport Sector.

8. Performance Overview of the Transport Sector for the 2013/14 Financial Year Road Transport • S’hamba Sonke - DoT monitored rehabilitation and maintenance of roads, re-sealing and patching of surfaced roads, and blading and regravelling of gravel roads in provinces This ensured continued improvement of our road infrastructure and conditions, and enhancing road safety. • Over two (20) million driving licences were produced and distributed in the year under review

9. Performance Overview of the Transport Sector for the 2013/14 Financial Year Civil Aviation • SA re-elected to ICAO Council; • 542 schools visited across nine (9) provinces to promote aviation awareness amongst learners; • ICAN Conference and ICAD 2013 hosted in Durban and Bloemfontein respectively.

10. Performance Overview of the Transport Sector for the 2013/14 Financial Year Maritime Transport • Study on Maritime Transport Shipping conducted; • Position Paper on the global trends regarding port efficiencies, operations and management completed; • Port Facility Security Audit conducted; • Inlanf Waterway Strategy completed.

11. Performance Overview of the Transport Sector for the 2013/14 Financial Year Public Transport • National Land Transport Amendment Bill finalised and submitted to NEDLAC; • NLTA Regulations amended and consolidated; • Workshops for empowerment of small bus operators conducted in all provinces; • Twelve (12) municipalities completed operational, business and financial plans for IPTNs; • Network operations already started in Three (3) municipalities (Nelson Mandela Bay, Cape Town and Johannesburg

12. Department Of Transport (Overall) Total Number of targets = 329 % Achievement = 216 targets (66%) % Not Achieved = 113 targets (34%)

13. Department Of Transport (Overall)

14. Department Of Transport (Summary of performance per programme)

15. PERFORMANCE PER PROGRAMME

16. ITP: Key Notable Achievements • National Household Travel Survey (NHTS) 2013 and Statistical Bulletin 2011 completed; • Study on status of regional infrastructure completed; • Rural Accessibility/ Multi-deprivation index pilot survey completed; • Study on harmonisation of transport standards within SADC completed.

17. ITP: Notable non-achievements • NATMAP not approved due to a resolution by Parliament for further consultations on the plan with the PICC. Consultations with PICC will be prioritised for 2014/15 and the Plan will be re-submitted to Parliament accordingly; • Private Sector Participation Strategy could not be completed as targeted due to capacity constraints. The completion of the strategy will be carried over to the next cycle (2014/15); • Appointment of BBBEE Charter Council members was delayed due to a request for more clarity by the Executive Authority. Clarity was duly provided and the appointments will be facilitated in 2014/15

18. Rail Transport: Key Notable Achievements • 598 railway coaches overhauled and upgraded; (Objective to minimise train crashes and alleviate risks on the lives of commuters) • Green Paper on Rail Transport Policy concluded and presented to Cabinet; (Once approved, the policy will address areas of infrastructure investment and regulations in the rail transport sector.) • Bridge City Extension completed; • Infill of bricks and ancillary works in the Gauteng Train Control Nerve Centre completed.

19. Rail Transport: Notable non-achievements • Acquisition of new rolling stock by PRASA delayed by process of securing government guarantee by National Treasury. • MoU between DoT and DPE not signed thus delaying establishment of the Interim Rail Economic Regulatory Capacity; • MoU between DoT and City of Tshwane not signed thus delaying progress of the Greenview – Pienaarspoort Rail Extension

20. Road Transport: Key Notable Achievements • S’hamba Sonke Programme – rehabilitation and maintenance of roads, re-sealing and patching of surfaced roads, blading and re-graveling of gravel roads. (Objective is to ensure continued improvement of road infrastructure and conditions) • 33 365 full time employment created. • Road Infrastructure Safety Framework developed;

21. Road Transport: Key Notable Achievements • 2 422 268 driving licence cards produced and distributed • Road Incident Management System developed. (System will assist to regulate accident investigations and incident management)

22. Road Transport: Notable non-achievements • Approval of the amendment of the National Road Traffic Act (incorporating safety requirements in motor vehicles) by the Traffic Legislation Technical Committee delayed progress; • Review of current legislative framework on fraud and corruption within testing stations still pending thus holding up development of legislation to implement periodic motor vehicle testing (every 24 months) for vehicles 10 years and older; • Full implementation of the Transfer Management Plan for the Driving Licence Production Facility prohibited by ongoing litigation processes.

23. Civil Aviation: Key Notable Challenges • SA re-elected to ICAO Council at 38th Assembly; • ICAN Conference successfully hosted in Durban (2013). • 542 schools visited across 9 provinces to promote aviation awareness (Approximately 33 945 learners reached) – comprehensive list of schools attached as Annexure 1

24. Civil Aviation: Notable non-achievements • Delays in amending the Civil Aviation Act prohibited the establishment of the Aircraft Accident and Incident Investigating Body; • Non-establishment of a Regional Search and Rescue Working Group delayed the standardisation of search and rescue regulations for SADC; • Process of developing the Airfreight Strategy not completed due to financial constraints;

25. Maritime Transport: Key Notable Achievements • Maritime Transport Shipping Study conducted; • Position Paper on status quo global trends regarding port efficiency, operations and management completed; • CLC and IOPC Bills approved by the National assembly; • Port Facility Security Audit conducted • Inland Waterway Strategy completed.

26. Maritime Transport: Notable non-achievements • Finalisation of the Maritime Transport Policy delayed by prolonged consultation process; • Business case on ship acquisition and operations not completed due to capacity constraints; • Framework for the review of the National Ports Act not developed as targeted due to non-finalisation of the Maritime Transport Policy;

27. Public Transport: Key Notable Achievements • Draft National Land Transport Amendment Bill finalised and submitted to NEDLAC; • NLTA Regulations amended and consolidated; • Workshops for empowerment of small bus operators conducted in all provinces;

28. Public Transport: Key Notable Achievements • 12 municipalities completed operational, business and financial plans for IPTNs – AComprehensive list attached as Annexure 2 • Network operations started in three municipalities (Nelson Mandela Bay, Cape Town and Johannesburg); • Average week-day bus rapid transit passengers – 35 000 pax/day in Cape Town and 35 000 – 40 000 pax/day in Johannesburg.

29. Public Transport: Notable non-achievements • National Learner Transport Policy not completed. Policy needs to be discussed with the Department of Basic Education before submission to Parliament; • Cooperatives Strategy for the Taxi Industry not finalised due to extended consultations; • Less number of old taxi vehicles scrapped as a result of lack of affordability of new taxi vehicles by operators. There is a need to review the Taxi Recapitalisation Programme.

30. Challenges faced during the period under review • Lack of funding model for infrastructure projects; • Delays experienced in policy consultative processes; • Time delays as a result of inter-governmental relation issues (MoUs, etc); • Capacity constraints (Human Resource , Supply Chain Management, etc).

31. Recruitment Vacancy Rate • 119 positions filled during 2013/14; • Vacancy rate decreased from 26,7% to 25,4% (target – 19%) • Target not met due to 49 additional posts added to establishment & terminations.

32. Capacity Development • 876 students registered in different transport related disciplines in 13 universities (Centres of Development); • Transport Research Activity Centre (TRAC) reached out to 462 984 learners through 29 laboratories. 1145 learners registered at various tertiary institutions; • 47 interns recruited in DoT; • 1 037 learners currently registered in FET colleges;(List of colleges attached as Annexure 3) • 6 (out of 13) students who studied in Prague (International Scholarship Programme) completed their studies and were successfully placed in the DoT, PRASA and Metrorail for internship.

33. Employment Equity Statistics Race • African - 89.4% (target – 79.5%) • Coloured - 2.12% (target – 9%) • Indian - 2.28% (target – 2.5%) • White - 6.2% (target – 9%)

34. Employment Equity Statistics Gender • Male – 273 (45%) target = 48% • Female – 340 (55%) target = 52%

35. Employment Equity Statistics SMS • Male – 71 (62%) • Female – 44 (38%) Target is to achieve 50% female representation in SMS.

36. Employment Equity Statistics Disability • Male – 3 (target – 8) • Female – 9 (target – 5) • DoT Disability Status – 1.8%

37. Lessons learnt • Ensure realistic number of indicators and targets are set; • Define indicators as required by the Treasury Framework; • Revise targets to meet the SMART criteria; • Institutionalize production of admissible evidence on all reported performance information.

38. GOVERNANCE

39. Risk Management • Risk register for strategic and operational risks compiled; • Risk Management Plan (key controls and mitigation strategies) developed and implemented; • Risk assessments conducted quarterly; • Progress reported quarterly to EXCO and Audit Committees;

40. Fraud and Corruption • DoT Fraud Prevention Strategy premised on four (4) pillars • Fraud Prevention • Fraud Detection • Fraud Response • Remediation

41. Minimising Conflict of Interest • Financial Disclosure Framework – All SMS members sensitised to disclose financial interest so as to identify conflict of interest; • Declaration of interest for all procurement as a measure to minimise conflict of interest in SCM (SBD 4 Form and SBD 9 Form)

42. Code of Conduct • New appointees inducted on Code of Conduct • SMS members trained on disciplinary matters related to violation of Code of Conduct.

43. Internal Control • Administration of AG queries through development of action plans; • Monitoring of implementation of action plans on a quarterly basis; • Compliance reviews on the PFMA, Treasury Regulations, DoRA, Financial Policies, SCM.

44. Internal Audit and Audit Committees • Reviews undertaken by Internal Audit (Assurance, Performance and IT) • Governance review; • Performance Info and Quarterly Reporting review; • DoRA review; • Change Management review; • Annual Financial Statement review; • IT Governance review; • NLTIS review; • Payroll management follow-up; • SCM follow-up; • HRM Recruitment follow-up; • Management of debtors follow-up; • MPAT review.

45. Internal Audit and Audit Committees • Seven (7) meetings of the Audit Committee during period under review.

46. FINANCIAL STATEMENTS

47. Adjusted Budget 2013/14

48. Expenditure for 2013/14 per Programme Note: The over expenditure of Road Transport of R768.355 million was declared as unauthorised expenditure.

49. Expenditure for 2013/14 per Economic Classification

50. Summary of Virements after Adjusted Budget