Presentation of the DoT Annual Performance Plan (APP) 2018/19

1. Presentation of the DoT Annual Performance Plan (APP) 2018/19 Presentation to the Select Committee on Business and Economic Development (NCOP) 18 April 2018 1

2. Contents • DoT Alignment to MTSF • Revisions made to the DoT Strategic Plan (2015 – 2020) • DoT APP 2018/19 Medium Term Targets • DoT Risk Governance • AGSA Findings from Annual Report 2016/17 and Action Plan (to Address AGSA Findings) • Key Challenges • Budget Summary

3. DoT Alignment to the MTSF The key initiatives of the Department over the Medium Term Strategic Framework (as appearing in the Delivery Agreement between the Minister and the President) are as follows: Outcome 4: Decent Employment through inclusive economic growth • Ensure monitoring of key off-takes by end-users on the infrastructure programme Outcome 6: An efficient, competitive and responsive economic infrastructure Sub-Outcome 1: Regulation, Funding and Investment improved • Establish a Single Transport Economic Regulator (STER) • Develop a Private Sector Participation (PSP) Framework for ports and rail, removing barriers to entry for private investments and operations within the Policy imperatives and with an analysis of the implication of tariffs

4. DoT Alignment to the MTSF Outcome 6: An efficient, competitive and responsive economic infrastructure Sub-Outcome 3: Maintenance, strategic expansion, operational efficiency, capacity and competitiveness of sector logistics and transport infrastructure ensured • Improve national transport planning to develop long-term plans for transport – synchronize spatial planning and align infrastructure investment for all sphere of government • Ensure development and approval of Integrated Transport Plan • Develop and implement plan to improve market share of containers on rail vs. road (to move rail-friendly cargo/freight from road to rail) • Improve and preserve national, provincial and local road infrastructure • Strengthen road traffic management • Improve public transport • Strengthen institutional arrangements for public transport

5. DoT Alignment to the MTSF Outcome 6: An efficient, competitive and responsive economic infrastructure Sub-Outcome 6: Coordination, planning, integration and monitoring implementation of strategic integrated projects in the National Infrastructure Plan • SIP 1 – Unlocking the Northern Mineral Belt • SIP 2 – Durban-Free State-Gauteng Logistics and Industrial Corridor • SIP 3 – South Eastern Node and Corridor Development • SIP 4 – Unlocking economic opportunities in the North West Province • SIP 7 – Integrated Urban Space and Public Transport Programme • SIP 17 – Regional Integration for African Cooperation and Development

6. DoT Alignment to the MTSF Outcome 7: Comprehensive Rutal Development and Land Reform Sub-Outcome 5: Increased access to quality infrastructure and functional services, particularly in education, healthcare and public transport in rural areas • Improved transport infrastructure and public transport in rural areas • Implement Access Road Development Plan (ARDP) to improve rural road infrastructure • Implement Integrated Public Transport Network (IPTN) Strategy in District Municipalities

7. DoT Alignment to the MTSF Outcome 10: Protect and enhance environmental assets and natural resources Sub-Outcome 2: An effective climate change mitigation and adaptation response • Develop strategic policy and regulatory frameworks and programmes to promote a low carbon economy • Implement the Green Transport Strategy

8. DoT Vision and Mission Vision “Transport, the Heartbeat of Economic Growth and Social Development” Mission “Lead development of efficient integrated transport systems by creating a framework of sustainable policies, regulations and implementable models to support government strategies for economic and social development”

9. DoT Values Values • Maintain fairness and equity in all our operations • Strive for quality and affordable transport for all • Stimulate innovation in the transport sector • Ensure transparency, accountability and monitoring of all operations; and • Ensure sustainability, financial affordability, accessibility as well as upholding of the Batho Pele principles

10. DoT Strategic Oriented-Outcome Goals • SG 1: An efficient and integrated infrastructure network that serves as catalyst for social and economic development • SG 2: A transport sector that is safe and secure • SG 3: Improved rural access and mobility • SG 4: Improved public transport services • SG 5: Increased sector contribution to job creation • SG 6: Increased sector contribution to environmental protection

11. DoT Delivery Programmes • Programme 1: Administration • Programme 2: Integrated Transport Planning • Programme 3: Rail Transport • Programme 4: Road Transport • Programme 5: Civil Aviation • Programme 6: Maritime Transport • Programme 7: Public Transport

12. REVISIONS TO THE DoT STRATEGIC PLAN 2015 - 2020

13. REVISIONS TO THE STRATEGIC PLAN: INTEGRATED TRANSPORT PLANNING

14. REVISIONS TO THE STRATEGIC PLAN: RAIL TRANSPORT

15. REVISIONS TO THE STRATEGIC PLAN: CIVIL AVIATION

16. REVISIONS TO THE STRATEGIC PLAN: MARITIME TRANSPORT

17. REVISIONS TO THE STRATEGIC PLAN: PUBLIC TRANSPORT

18. DOT ANNUAL PERFORMANCE PLAN 2018/19

19. DoT TARGETS TOTAL FOR 2018/19

20. APP 2018/19 KEY INTERVENTIONS: ADMINISTRATION SO 1.3 To promote equality and equity within the sector through the coordination of empowerment initiatives for previously disadvantaged groups (Women, Persons with Disabilities, Youth and Children) • Monitor implementation of the sector socio-economic empowerment programmes (DoT, SOEs and Provincial Departments of Transport) • Conduct ten (10) community outreach campaigns on Gender, Persons with Disability, Youth and Children • May Children’s Month, • June Youth Month, • July Men’s Month, • August Women’s Month, • September Casual Day, • November Disability Rights Awareness Month, • November/December Sixteen (16) Days Activism for No Violence against Women and Children

21. APP 2018/19 KEY INTERVENTIONS: ADMINISTRATION SO 7.1 To coordinate the function of human resource management and development in support of DoT programmes • Compile a monitoring report on the implementation of the 2017/18 Human Resource Development Framework • Develop, ensure approval and monitor implementation of the 2018/19 Human Resource Development Plan • Training of Staff, issuing of bursaries to internal staff and external stakeholders, career exhibitions, etc.

22. APP 2018/19 KEY INTERVENTIONS: ADMINISTRATION SO 7.2 To render financial administration, supply chain management, risk management, internal audit, budgeting and management accounting services to the DoT • Develop and monitor implementation of action plans to address audit findings raised by Internal Audit and Auditor-General • Monitor implementation of the Departmental Risk Strategy • Review and quarterly assessment of strategic and operational risks

23. APP 2018/19 KEY INTERVENTIONS: INTEGRATED TRANSPORT PLANNING SO 1.1 To formulate and implement national transport macro-planning legislation, policies and strategies • Monitor implementation of ten (10) NATMAP priority pilot projects • Parys Intermodal Transport Facility, Upgrade of Route R31 (NC), National Station Upgrade Programme (Phillipi Station), National Road Safety Strategy, Upgrade of MR177 (Stellenbosch Arterial Phase), R573 Moloto Road Phase I, Multimodal Legislative Framework, Green Transport Strategy, OR Tambo International Airport (Midfield Passenger Terminal) and Development of Integrated Transport Networks in two (2) District Municipalities (Vhembe and Nkangala) • Conduct the socio-economic impact assessment on the Revised White Paper on the National Transport Policy and submit the White Paper for Cabinet approval

24. APP 2018/19 KEY INTERVENTIONS: INTEGRATED TRANSPORT PLANNING SO 1.3 To standardise economic regulations and enhance participation and inclusion of key stakeholders in mainstream sector interventions • Process the draft STER Bill through Cabinet and Parliament for promulgation SO 6.1 To develop and implement strategies aimed at reducing Greenhouse Gas (GHG) emissions in the Transport sector • Conduct public awareness campaigns on the Green Transport Strategy in nine (9) provinces

25. APP 2018/19 KEY INTERVENTIONS: RAIL TRANSPORT SO 1.5 To develop and implement interventions aimed at improving rail transport operations • Conduct stakeholder consultations on the draft National Rail Bill and process the Bill through the ESEID Cluster and Cabinet • Conduct research on proposed access arrangements and pricing approaches for the Interim Rail Economic Regulatory Capacity • Develop an implementation plan for the Private Sector Participation (PSP) Framework

26. APP 2018/19 KEY INTERVENTIONS: RAIL TRANSPORT SO 2.1 To develop and implement interventions aimed at enhancing safety and security of rail transport • Update the draft National Railway Safety Bill and process the Bill through NEDLAC, FOSAD Cluster and Cabinet for approval

27. APP 2018/19 KEY INTERVENTIONS: ROAD TRANSPORT SO 1.4 To develop and monitor implementation of policies aimed at ensuring construction and maintenance of road transport infrastructure • Process the Roads Policy through the ESEID Cluster and Cabinet for approval • Monitor implementation of the S’hamba Sonke Programme (inspections and bilateral consultations) • Process the Access Road Development Plan through Cabinet for approval

28. APP 2018/19 KEY INTERVENTIONS: ROAD TRANSPORT SO 2.1 To develop and implement interventions aimed at enhancing safety and security of road transport • Conduct stakeholder engagement on legislative inputs and proposals and develop a draft Bill for founding legislations of road entities • Monitor implementation of the National Road Safety Strategy • Easter Road Safety Programme, UN Global Road Safety Week, Youth Road Safety Summit, Pedestrian and Passenger Visibility Awareness, Driver Safety and Education Programmes, Festive Season Awareness, Scholar safet Programme, etc • Conduct stakeholder engagements on the draft Anti-Fraud and Corruption Strategy • South African Police Services (SAPS), National Prosecuting Authority (NPA), South African Insurance Crime Bureau (SAICB), Business Against Crime South Africa (BACSA)

29. APP 2018/19 KEY INTERVENTIONS: CIVIL AVIATION SO 1.5 To develop and implement interventions aimed at improving operations in the Civil Aviation sector • Develop and ensure approval of regulations for the Airports Company and ATNS Acts • Process the Air Services Bill through the ESEID Cluster, Cabinet Committees and Cabinet

30. APP 2018/19 KEY INTERVENTIONS: CIVIL AVIATION SO 2.1 To develop and implement interventions aimed at enhancing safety and security of civil aviation • Process the Civil Aviation Amendment Bill through Parliament for promulgation SO 5.3 To develop and implement interventions aimed at creating jobs and a conjucive environment for employment opportunities in Civil Aviation • Develop draft curriculum on civil aviation in line with the National Aviation Transformation Strategy

31. APP 2018/19 KEY INTERVENTIONS: MARITIME TRANSPORT SO 1.5 To develop and implement interventions aimed at improving maritime transport operations • Conduct audit of Operation Phakisa projects at seven (7) commercial ports SO 2.1 To develop and implement interventions aimed at enhancing safety and security of maritime transport • Process the Merchant Shipping Bill through the ESEID Cluster and Cabinet • Develop and implement action plans for the Logistics, Content and Communication work streams in preparation for hosting the 2020 World Maritime Day

32. APP 2018/19 KEY INTERVENTIONS: PUBLIC TRANSPORT SO 3.1 To develop and implement policies and strategies aimed at improving provision of quality public transport infrastructure and services in rural areas • Develop detailed Integrated Public Transport Network (IPTN) Plans in two district municipalities (Vhembe and Nkangala) SO 4.1 To facilitate and promote the provision of sustainable public transport through the use of safe and compliant vehicles • Conduct cost calculations on the new TRP scrapping allowance and develop requirements for inclusion of scholar transport and cross border transport in the TRP

33. APP 2018/19 KEY INTERVENTIONS: PUBLIC TRANSPORT SO 4.2 To facilitate the development and implementation of Integrated Public Transport Networks in identified cities • Monitor constructions and operation of IPTNs in thirteen (13) cities SO 4.3 To transform land transport systems through the development and implementation of legislation, institutional building and planning • Process the Transport Appeal Tribunal (TAT) Amendment Bill through NEDLAC, DPME (SEIAS), FOSAD Cluster and Cabinet

34. Risk Governance (Annexure 2) The department has put in place systems to identify and manage risks that have the potential to impact (positively or negatively) on the achievement of the Strategic Goal-Oriented Outcomes and Objectives. The following structures have been put in place: • EXCO Plays its risk oversight by ensuring that the department identifies risks within the operation of the department and the reporting Transport Public Entities, and that such risks are adequately addressed or mitigated 2. Risk Management Committee This structure assists the Accounting Officer with his risk oversight by reviewing the system of risk management such as risk management objectives,Strategy,policy and monitor the process at strategic, management and operational levels.

35. Risk Governance… 3. Audit Committee This structure is an independent structure that plays an oversight by ensuring that the department appropriately address the risk areas relating to; • financial reporting including fraud and corruption • IT risks as they relate to financial reporting. 4. Risk Management Directorate The department has a dedicated Risk Management Directorate that facilitates and coordinate all the risk management activities in the department, it also assists the Accounting Officer to execute his statutory mandate with regard to risk management. This directorate has a direct reporting line to the Accounting Officer.

36. Key Risk Profile: Graphical Summary

37. Inherent risks in a red bar, represent the product of impact and likelihood of risk occurring measured as risk exposure/ value. • Residual risks in a green bar, represent a product of the inherent risk and the perceived control effectiveness measured as a risk exposure/value. • The greater the gap between the inherent and residual risk the more effective the controls mitigating the risks are. • Management should concentrate on controlling high residual risks with low control effectiveness. CONFIDENTIAL

38. Risk Categorization

39. Risk Relationships: DoT and PE

40. Risk Relationships: DoT and PE

41. AGSA Findings from Annual Report 2016/17 and the Action Plans (Annexure 1)

42. Key Challenges

43. Public Entities Liquidity as at the end of the 3rdQuarter - 2017/18 43

44. Budget Summary Over the medium term, the department plans to focus on improving mobility and access to social and economic activities by facilitating and creating an enabling environment for maintaining provincial and national road networks, modernising passenger rail infrastructure and improving services, and integrating public transport. Total expenditure is expected to increase at an average annual rate of 6.3 per cent over the medium term, from R59.8 billion in 2017/18 to R69.6 billion in 2020/21.

45. Budget Summary… The department’s spending on goods and services, and compensation of employees, accounting for a projected 2 per cent of spending over the MTEF period, is largely driven by activities related to project management and programme support functions, monitoring and evaluation, grant management and oversight, and policy and legislative development and implementation. As a result, spending on items related to goods and services is expected to increase at an average annual rate of 6.3 per cent, from R663.8 million in 2017/18 to R798 million in 2020/21.

46. Compensation of Employees The department’s budget for compensation of employees has been capped at R496.7 million in 2018/19, R534.7 million in 2019/20 and R574.8 million in 2020/21 – reflecting an increase at an average annual rate of 10.1 per cent over the medium term.

47. Transfers and Subsidies

48. Transfers and Subsidies The department’s expenditure over the MTEF period is driven mainly by transfers to the South African National Roads Agency, the Passenger Rail Agency of South Africa, and provinces and municipalities for the construction, operations and maintenance of transport services and infrastructure as well as other transfers which account to 98% of the spending over the MTEF period.

49. Thank You!