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D EPARTMENT OF TRANSPORT

This policy-driven project aims to establish a local bicycle manufacturing plant in SA, creating job opportunities, enterprise development, and skills transfer. The focus is on promoting non-motorized transport (NMT) to address mobility challenges and support economic sustainability in underdeveloped communities. Achievements include delivering 69,000 bicycles since 2001 and plans for future expansion. The proposal outlines a phased approach for setting up the manufacturing plant and integrating bicycles into public transportation. Key interventions include finalizing NMT policies, involving the private sector, and securing government support for infrastructure development.

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D EPARTMENT OF TRANSPORT

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  1. DEPARTMENT OF TRANSPORT SUSTAINABLE LOW COST MOBILITY SOLUTION TROUGH NON MOTORISED TRANSPORT

  2. Policy thrust of NMT Problem statement Achievements Bicycle manufacturing and value chain Towards establishment a local bicycle manufacturing plant Unpacking job opportunities, enterprise development & skills transfer Sustaining Shova Kalula project Presentation outline

  3. Policy thrusts for Shova Kalula • To implement and integrated developmental agenda which removes the legacy of dependency on welfare funding to deprived communities • The need to build a foundation of self sustainability based on economic activities in under developed communities • Addressing the devide of the first and second economy

  4. Policy thrust (cont) • To facilitate spatial development and land use pattern through effective utilization of non motorised transport operations as a catalyst to address the second and the first economy. • To develop demand responsive, balanced and sustainable transportation services and infrastructure which is fully integrated and supportive to human settlements.

  5. Problem Statement • In S A, developing and emerging economies, the transportation burden faced by the rural, peri-urban and urban communities on a daily basis is real and substantial. • Mobility and access to social services and the economic mainstream come at a high social and economic cost. • growing urbanization, congestion & demand for fossil fuel dictates a need for policy shift to integrate bicycling into the public transport

  6. Labour intensive methods: job creation

  7. Achievement in implementing NMT since inception • 69,000 bicycles delivered since 2001 Phase 2007 – 2008: 27,600 bicycles distributed 2008 – 2009: 26,100 bicycles distributed 2009 – 2010: 15,000 bicycles distributed 2010 - 2011: 1 400 bicycles distributed New intervention of increasing the quantities

  8. Bicycle Manufacturing industry in SA and value chain • Value chain and its manufacturing stages • Supply of raw materials – Transport for delivery • Components manufacturer – Transport to site • Bicycle manufacturer – builders- Transport - Assembly plant – Factory-Transport • Bicycle distributor – Wholesale – Transport • Certification and testing of a complete bicycle , then hand over to end user • Maintenance and operations [Bicycle repair] • Administrative processes and logistical support through out

  9. Policy proposal: To have a fully fledged local manufacturing plant through an incremental approach. Prioritization of public transport and Shova Kalula bicycle project Scholar transport & NMT to be integrated in public transport infrastructure & services Shova Kalula bicycle provision to be subsidised from scholar transport fund Spheres of government to commit and sign SLA`s Interventions to promote SK:

  10. Interventions to support SK • NMT policy to be finalised in accordance with the recent pronouncement • NMT plans to be contained in the ITPs before approval • NMT to be included in National Road Traffic Act and the Public transport action plans • Bicycles to be centrally procured for economies of scale • RFP process for a costing model and determination of revenue • Municipalities to develop their own by-laws addressing NMT. • Provinces and Municipalities to establish units to deal with NMT

  11. Interventions to support SK • Finalize feasibility study (bicycle plant) with model framework • Develop a costed model for bicycle manufacturing plant • Encourage provinces to budget for Shova Kalula • Encourage provinces to distribute bicycles, set up micro businesses and provide NMT infrastructure & facilities • PTIS and PTOG to fund NMT infrastructure and services • Promote private sector participation through PPP

  12. Towards establishing a bicycle manufacturing plant and job creation • Involve private sector through concessionaire • Four staged approach (4 years) • Year 1 Secure a land (DoT) Build infrastructure, acquisition and installation of equipments Training of staff Importation of fully assembled bikes • Year 2 - Import bikes 25% assembled • Year 3 - Import kikes 50% assembled (Local frames) • Year 4 - Import bikes 100 (fully manufactured locally)

  13. Unpacking job opportunities, enterprise development & skills transfer • Develop a framework for concessionaire and present at Investor conference • Sign service level agreements with potential investors • Government to • Provide land • Facilitate tax breaks and incentives • Facilitate funding for the plant • Plants will be set up in all 9 provinces to support local economic development and job creation • Finalize impact assessment of ShovaKalula rollout project

  14. The end Thank you

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