Department of Transport

Department of Transport

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Budget 2011

Select Committee on Public Services

31 May 2011

Department of Transport Budget

Rollout of Provincial Roads Maintenance Programme

Provincial Roads Maintenance Grant Intervention

Public Transport

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Contents

• Budget allocations Per major

allocation

• Roads & roads grants

• Provincial roads grants

• Bus (Public Transport Operations

grant)

• Public Transport Infrastructure &

Systems 3

Department of Transport Budget

Budget allocations Per major allocation

4

Details (R’000) Adjusted 2007/08

Adjusted 2008/09

Adjusted 2009/10

Adjusted 2010/11

Budget 2011/12

Budget 2012/13

Budget 2013/14

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Roads & overload control (excluding disaster fund)

3,560,150 4,211,770 5,859,061 6,893,189 15,108,950 17,295,693 18,600,190

Bus 2,835,997 2,984,131 3,531,909 3,863,033 4,153,232 4,360,894 4,600,743

PTIS – Municipalities 1,174,000 3,178,900 2,418,177 3,699,462 4,803,347 4,999,781 5,563,604

Taxi 581,798 471,978 644,717 512,400 487,144 511,501 539,633

Rural grant 0 0 12,800 10,400 35,439 37,382 39,250

Rail 7,460,608 8,893,283 10,459,113 9,203,566 9,479,398 9,962,468 10,770,038

Transfers to public entities excluding bus, road & rail

156,367 155,519 159,754 141,429 154,162 150,006 157,942

DOT current, capital, & once off RAF, e-NaTIS and disaster

760,975 4,582,758 1,138,366 950,158 845,968 869,494 909,352

Other transfers (foreign, universities, non-profit institutions)

14,037 14,501 14,620 15,446 16,373 17,191 18,137

Total 16,543,932 24,492,840 24,238,517 25,289,083 35,084,013 38,204,410 41,198,889

Growth % 48.05% -1.04% 4.33% 38.73% 8.89% 7.84%

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Roads & roads grants(excl. disaster fund)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Adjusted2007/08

Adjusted2008/09

Adjusted2009/10

Adjusted2010/11

Budget2011/12

Budget2012/13

Budget2013/14

SANRAL, roads and overload control grants

New Provincial roads grants(included in DOT budget from 2011/12)

R’000

Growth % SANRAL and grants 18.30% 39.11% 17.65% 25.51% 12.44% 6.30%

Growth % Prov. Roads grant 17.66% 25.25% 22.33% 26.82% 17.19% 9.14%

Total growth % 18.02% 33.00% 19.60% 26.07% 14.47% 7.54%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Adjusted2007/08

Adjusted2008/09

Adjusted2009/10

Adjusted2010/11

Budget2011/12

Budget2012/13

Budget2013/14

R’000

SANRAL Capital

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Roads & roads grants (cont.)(excl. disaster fund)

Allocations (R’000):

SANRAL & grants 3,560,150 4,211,770 5,859,061 6,893,189 8,651,596 9,728,055 10,340,966

Provincial roads 2,824,310 3,323,019 4,162,161 5,091,710 6,457,354 7,567,638 8,259,224

SANRAL, roads and overload control grants

New Provincial roads grants(included in DOT budget from 2011/12)

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Provincial roads grants

Details of allocations Budget 2011/12

Budget 2012/13

Budget 2013/14

R'000 R'000 R'000

Coal Haulage Network for Mpumalanga

511,000 659,838 808.259

Coal Haulage Network for Gauteng 74,653 4,403 881

To be allocated to Provinces:

Provincial Roads Maintenance grant from Provincial Infrastructure grant

5,771,701 6,303,397 6,650,084

Preventative maintenance 100,000 600,000 800,000

Total 6,457,354 7,567,638 8,259,224

Conditions attached to the Provincial road grants by Treasury:

1. The funds will be released once the programme schedule has been submitted to National Treasury providing the projects, kilometers or square meters per project, project cash flow projections per year over the MTEF period, responsible entity or relevant service level agreement and start and end dates.

2. All expenditure needs to be reported separately according to project expenditure and progress.

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Provincial roads grants(continued)

Major conditions of 2011 Division of Revenue Framework:

Provincial departments must submit quarterly infrastructure reports to the national Department of

Transport (DoT) that comply with the infrastructure reporting model and toolkit

A final list of projects must be captured on the Infrastructure Reporting Model and submitted to the

relevant Provincial Treasury and Department of Transport by the 21 April 2011

A detailed Asset Management Plan, that is compliant with the requirements of the Government

Immovable Assets Management Act (2007) and based on the Road Asset Management System must

be submitted by 31 August 2011 to DoT and National Treasury by 30 November 2011

The payment of the instalments of this grant is dependent on receipt by DoT of the quarterly

performance reports

Expenditure of this grant must be in accordance with maintenance requirements as identified by a

road asset management system

Mpumalanga and Gauteng provinces must allocate the following amounts to coal haulage projects:

- Mpumalanga: R511 million in 2011/12, R659 million in 2012/13 and R808 million in 2013/14

- Gauteng: R74 million in 2011/12, R4.4 million in 2012/13 and R0.9 million in 2013/14

Provinces must submit Road Asset Management Systems priority projects in the form of a User Asset

Management Plan by 30 November 2011

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Adjusted2007/08

Adjusted2008/09

Adjusted2009/10

Adjusted2010/11

Budget2011/12

Budget2012/13

Budget2013/14

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Bus(Public Transport Operations grant)

Growth % 5.2% 18.4% 9.4% 7.5% 5.0% 5.5%

R’000

10

Public Transport Operations Grant allocations

Province (R’000) Budget 2010/11

Budget 2011/12

Budget 2012/13

Budget 2013/14

Eastern Cape 148,078 166,954 180,461 196,061

Free State 169,264 184,566 195,515 208,162

Gauteng 1,496,442 1,577,611 1,635,695 1,702,781

KwaZulu-Natal 714,587 773,473 815,611 864,281

Limpopo 214,472 249,497 274,561 303,510

Mpumalanga 397,003 420,099 436,626 455,715

Northern Cape 30,370 37,566 42,715 48,662

North West 60,416 77,211 89,230 103,111

Western Cape 632,402 666,255 690,480 718,460

TOTAL 3,863,034 4,153,232 4,360,894 4,600,743

Bus(Public Transport Operations grant)

Major conditions of 2011 Division of Revenue Framework:• Designs and operators’ business plans detailing subsidised services will have to be approved by the

Public Transport Integration Committee• Supervision, monitoring and or verification must be done to certify the correctness of the operator’s

claim in terms of km of services provided and reported to Department of Transport (DoT) monthly• Submit monthly and quarterly performance reports to DoT

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PTIS – Municipalities

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Adjusted2007/08

Adjusted2008/09

Adjusted2009/10

Budget2010/11

Budget2011/12

Budget2012/13

Budget2013/14

Growth % - PTIS 170.8% -23.9% 53.0% 29.9% 4.1% 11.3%

R’000

2010 Budget

Additional allocations

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PTIS – Municipalities (continued)

Allocations proposed by National Treasury (R,000)

R’000

2011/12 2012/13 2013/14

Baseline in DORA

Change Proposed baseline

Baseline in DORA

Change Proposed baseline

Proposed baseline

Cape Town 1,600,000 200,000 1,800,000 900,000 700,200 1,600,200 1,600,000

Ekurhuleni 20,000 10,000 30,000 20,000 0 20,000 20,000

eThikwiini 20,000 180,000 200,000 20,000 74,000 94,000 75,000

Johannesburg 1,200,000 500,000 1,700,000 800,000 750,000 1,550,000 1,556,875

Nelson Mandela 600,000 (250,000) 350,000 800,000 (400,000) 400,000 700,000

Tshwane 500,000 (300,000) 200,000 800,000 0 800,000 850,000

Buffalo City 400,000 (200,000) 200,000 700,000 (500,000) 200,000 380,000

Mangaung 15,000 15,000 30,000 15,000 5,000 20,000 20,000

Mbombela 15,000 31,400 46,400 15,000 5,000 20,000 20,000

Msunduzi 15,000 56,000 71,000 15,000 75,000 90,000 30,000

Polokwane 20,000 37,500 57,500 20,000 10,000 30,000 30,000

Rustenburg 20,000 160,000 180,000 20,000 220,000 240,000 350,000

Overall total 4,425,000 439,900 4,864,900 4,125,000 939,200 5,064,200 5,631,875

Savings to be allocated (61,553) (64,419) (68,271)

Budget 4,803,347 4,999,781 5,563,604

• Road Infrastructure Strategic

Framework for South Africa

(RISFSA)

• Extent of road network and

condition data

• Holding strategy

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Rollout of Provincial Roads Maintenance Programme

Challenges

-Institutional Arrangements-Road Network and Classification-Information Systems & Decision Support-Funding Sustainability-Human Capital

Strategies

-Roads Coordinating Body-Service delivery models

-Standardisation of systems-Inter-linkage of systems

-Road needs study-Funding strategies-Review of toll strategy

-Skills audit-Short term interventions-Long term interventions

Key Focus Areas-Community Access Roads-Support for Economic Growth Areas-Labour Intensive Construction-Support for ISRDP, URP & IDPs-BEE, Entrepreneur & SMME Development

-Uniform classification system-Comprehensive prioritisation system

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Road Infrastructure Strategic Framework for South Africa

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Extent of the road network

Authority Paved Gravel Total

SANRAL 16,170 0 16,170

Provinces - 9 48,176 136,640 184,816

Metros - 9 51,682 14,461 66,143

Municipalities2 37,691 302,158 339,849

Total1 153,719 453,259 606,978

Unproclaimed (Estimated)

140,000 140,000

Estimated Total 153,719 593,259 746,978

Notes:1. The total extent of the network is as calculated form the 1:50000 RSA data set from

Surveys and Mapping.2. The extent of the municipal network was calculated based on subtracting the received

data from Tota

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Very Poor (km)

Poor (km)

Fair (km) Good (km)

Very Good (km)

Total km with Data

% Network With Data

SANRAL - Paved 16,170 233 1,199 6,391 7,750 597 16,170 100Provinces - Paved 48,176 3,532 7,200 15,179 16,470 4,706 47,088 97.74Metros - Paved 51,682 421 1,256 6,707 20,104 12,250 40,737 78.82Municipalities - Paved 11,076 121 272 1,579 5,271 3,623 10,866 98.10Provinces - Gravel 136,640 19,327 33,219 35,344 13,863 1,981 103,733 75.92Metros - Gravel 14,461 2 7 55 1,722 3 1,789 12.37Municipalities - Gravel 2,051 123 485 849 557 117 2,131 103.89

Totals km 280,256 23,759 43,639 66,103 65,737 23,276 222,514Totals % 10.68 19.61 29.71 29.54 10.46 100

Authority Total Network Visual Condition Data (km)2

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SANRAL - Paved

Provinces - Paved

Metros - Paved

Municipalities - Paved

Provinces - Gravel

Metros - Gravel

Municipalities - Gravel

Au

tho

rity

Percentage of Network

Very Poor (km)

Poor (km)

Fair (km)

Good (km)

Very Good (km)

Available network condition data

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Holding strategy

In 2002 cabinet approved a R64b, 5 year holding strategy for roads as follows:

Rural community roads at 10% R 3 billion

Overheads at 20% R 6 billion

Routine maintenance R 7 billion

Resealing and regravelling R 10 billion

Rehabilitation (about 17% of needs) R 4 billion

Total R 30 billion

+ Maintenance and improvement backlog to would amount to approximately R34 billion

over five years, for all provincial and national roads.

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Provincial Roads Maintenance Grant Intervention

• Allocations to Provinces

• S’hamba Sonke Programme

implementation framework

• Implementation through the Division

of Revenue Act

• Targets for job creation

• Expected outputs from Provinces

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Provincial Roads Maintenance Grant allocations to provinces

VoteName of allocation

Province 2011/12 2012/13 2013/14

Transport (Vote 36)

R'000 R'000 R'000Provincial Roads Maintenance Grant

Eastern Cape 1 034 086 1 215 920 1 312 210 Free State 447 165 525 794 567 433 Gauteng,

Includes Coal Haulage

566 917 583 226 625 542

74 653 4,403 881

KwaZulu-Natal 1 236 648 1 454 099 1 569 251

Limpopo 934 208 1 098 478 1 185 468 Mpumalanga

Includes Coal Haulage

1 016 603 1 253 564 1 449 002

511,000 659,838 808,259

Northern Cape 308 760 363 053 391 803

North West 501 826 590 067 636 795

Western Cape 411 141 483 437 521 720

TOTAL 6 457 939 7 568 301 8 260 032

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S’hamba Sonke Programme implementation framework

• Adopted by Transport MINMEC 2nd February 2011: – S’hamba Sonke loosely translated S’hamba

Sonke means “We are moving together” or “We are moving together in step”

– The programme thrust is to focus on a few key actions whose achievement will represent a turnaround in the sector outlined in the key ensuing key programme components

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S’hamba Sonke Programme implementation framework (cont.)

Key Programme Components Key Actions

Increase investment in maintenance of key arterial routes to support the rural economy

• Provincial authorities to identify roads for approval by DoT• Outline methods of implementation that unbundle contracts to

create opportunities for Emerging Contractors and local labour • Collect key condition data on such roads

Increased focus in the cost efficient use of labor absorptive methodologies in road construction and maintenance;

• Best practice labour intensive programmes to be rolled out nationally

• Cost-efficiency is key in the rollout of programmes• Pothole patching programme to be rolled out • Co-operatives to be introduced on road maintenance

Improving Access to Schools and Clinics and other public facilities

• Provinces to itemise backlogs and progress • Business plans that respond to job creation to be submitted

Know your network: A focussed attention on deployment of local resources to support road network asset management

• Roads authorities are to retain information on network conditions on a regular basis

• Collected information must be fed into the asset management system

• collected condition information must be used to inform investment decisions

Delivering a safe Road Environment

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Implementation through the Division of Revenue Act

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Implementation through the Division of Revenue Act (cont.)

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Type, goal and purpose of grant:

Schedule 4 Grant to supplement provincial road investments and support preventative, routine and emergency maintenance on provincial road network & ensure provinces implement and maintain road asset management systems


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Outputs:

• Square meter/Kilometers of preventative, routine and emergency maintenance

• Updated traffic volumes and pavement condition data• Updated road asset management systems• Improvement in percentage of roads in poor to very poor

condition and stabilisation of roads in better condition (very good, good and fair)

• Number of jobs created : commitment of 70 000 full-time equivalent on maintenance. Indication of opportunities that may be created from construction, rehabilitation

• Number of S3 students provided with experiential training and assisted with registration

• Number of emerging contractor opportunities created


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Grant conditions:

• Expenditure by and large in accordance with maintenance requirements identified in PMS

• Detailed asset management plan (compliant with GIAMA) by 31st August 2011

• Adherence to Infrastructure Delivery Management Toolkit• Exemption: Projects for which tendered contracts have

been entered into or funding committed prior 31st March 2011

• Coal haulage allocations for Mpumalanga and Gauteng

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Targets for job creation per Province

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Expected outputs from Provinces

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Public Transport

• Achievements 2010/11

• Priorities 2011/12

Planned Objectives Achievements

Establish Public Transport Integration Committee

Established and revived Public Transport Integration Committees in all provinces to oversee and drive the phased implementation of new subsidised service contracts through the development of Integrated Public Transport Networks. As a result of the 37% increase in subsidy allocation in 2010/11, the PTIC in Northern Cape approved the introduction of new rural public transport services in the Namakwa and the Frances Baard District Municipalities.

Appoint a team of Transport Professionals for the implementation of the PTOG

A team of transport specialist has been appointed to assist the Department in developing the necessary strategies and frameworks to align the current bus subsidy process, paid through the Public Transport Operations Grant, with provisions of the Public Transport Strategy in preparation for the roll out of Integrated Public Transport Networks.

Achievements 2010/11

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Create a national IPTN model [taxi recap, bus subsidies, Public Transport Information System (PTIS)], for implementation by the cities

Continued Engagement with CoJ, CoCT and NMB on their IRPTN business models to incorporate incumbent operators and workers

CoJ handed over Rea Vaya to the Taxi Operators Investment Company (PioTrans (Pty) Ltd), formally taking control of the BRT's Bus Operating Company to operate Rea Vaya’s Phase 1a. Phase 1a feeder and distribution networks were launched.

Create a project management unit to facilitate the IPTN implementation and appoint a team of transport professionals to assist cities with operational and business plans

Service providers in this regard appointed

Achievements 2010/11 (continued)

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Monitor initial 4 IRPTN cities‘ Phase 1 Network Business Plans

Reviews of CoCT, CoJ, Tshwane, NMB and Buffalo have been done focusing on project management, technical design, industry transition, overall business structure and universal access

Facilitate the completion of Phase 1 Network Operational Plans for all 8 remaining cities

Buffalo, Polokwane and Rustenburg – Draft Operational Plans completed

Have commenced with the Business and Finance Plan Phases

Accessible PT corridors as part of Phase 1 Networks

Engaged with engagement with CoCT on the accessibility of its Phase 1a. Site inspection/ visits of the CoCT and CoJ Phase 1a systems. Engaged with SANTACO on the Accessible PT Strategy & Action Plan and with the South African Disability Alliance

Finalise and Gazette Electronic Fare Collection Regulations

The Regulations were published for Public Comments again and have been submitted to Minister for final approval and gazetting


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Scrapping Target – 8758 vehicles Vehicles scrapped – 5758 due to:Access to fundingCost of preferred vehicle (Toyota) very expensiveRecessionOperator credit worthiness and requirement of the National Credit Act

Wc 2010 regulations for special OL’s DoneReview and update pltf regulation in line with the NLTA

Done

Coordinate the processing of 2010 special OL’s in all 9 provinces

Done

Develop business and project plan to establish NPTR

Done

Public Transport Industry formalised* Data-base developed. Managed to register 691 Small Bus Operators with 2069 fleet on national data base


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Strategic Objective 4.2

Development of integrated Rapid Public Transport Networks (IRPTNs) in cities and rural districts

Objective Statement

IRPTNs rolled out in five (5) cities by developing 300km of trunk Bus Rapid Transit (BRT) by 2014 and empower the industry through cooperatives

Baseline 5 cities have developed Network Operational PlansRea Vaya Phase 1a; IRPTN infrastructure in Cape Town and Nelson Mandela

Justification Improve public transport access, affordability for urban and rural passengers and integrate all public transport modes into seamless single system

Performance Indicators

Key Performance Indicator

Annual target 20111/12



No. of cities with approved plans

9 cities 8 cities 3 cities

Number of cities implementing Integrated PT Networks, Feeder and Distribution Systems

1 (Cape Town’s Integrated Rapid Transit (IRT) Starter Service

2 (Johannesburg’s Rea Vaya 1b & Cape Town IR Phase 1a)

4 (Cape Town Full Phases 1,Jo’burg Phase 1, Tshwane, eThekwini and Nelson Mandela

Priorities 2011/12

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Strategic Objective 4.2…

Development of integrated Rapid Public Transport Networks (IRPTNs) in cities and rural districts

Objective Statement

IRPTNs rolled out in five (5) cities by developing 300km of trunk Bus Rapid Transit (BRT) by 2014 and empower the industry

Baseline 5 cities have developed Network Operational PlansRea Vaya Phase 1a; IRPTN infrastructure in Cape Town and Nelson Mandela

Justification Improve public transport access, affordability for urban and rural passengers and integrate all public transport modes into seamless single system






No. of rural districts with planned IPTN’s

Assessment report (6 districts)

3 Network plans

3 Network plans

Daily passenger trips 45 000 70 000 110 000

Empowerment model for small operators

Desktop research and benchmarking

Stakeholder engagement

Approved model

Priorities 2011/12 (continued)

37

Strategic Objective 4.3

Effective regulation of public transport operations

Objective Statement

Establish the National Transport Regulator, Provincial Regulatory Entities and build municipal capacity by 2014

Baseline Operating Licences Boards, Provincial Taxi Registrars in all provinces

Justification Effective regulation of public transport to improve economic performance






New institutions in 9 provinces and Metros

Established National PT Regulator

9 PRE’s MRE’s in 6 Metros

Redevelopment of the NLTIS

Develop a new NLTIS

Compliance with the NLTA

Full integration of systems

Review regulatory instruments

Review the NLTA Review the Taxi Recap

Ensure seamless operations

Priorities 2011/12 (continued)

38

Thank you

39

Documents

Department of Transport