Cross-Border Road Transport Agency CROSS BORDER ROAD TRANSPORT AGENCY (C-BRTA) STRATEGIC AND ANNUAL PERFORMANCE PLANS 2014/15 PORTFOLIO COMMITTEE ON TRANSPORT

Cross-Border Road Transport Agency

CROSS BORDER ROAD TRANSPORT AGENCY (C-BRTA)

STRATEGIC AND ANNUAL PERFORMANCE PLANS 2014/15

PORTFOLIO COMMITTEE ON TRANSPORT

26TH August 2014by Sipho G. Khumalo

Cross-Border Road Transport AgencyPresentation Outline

1. Strategic Thrust

2. Mandate

3. Vision & Mission

4. Strategic Oriented Goals

5. Financial Performance as at 31 March 2014

5. Progress on Strategic Projects

6. Annual Performance Plan 2014/15

7. Burning Issues and Interventions

8. Strategic Impediments & Initiatives

9. Concluding Remarks

Cross-Border Road Transport AgencyC-BRTA Strategic Thrust

3


March 2013

MTSF 2014/2019: PRIORITY 11: CREATE A BETTER SOUTH AFRICA AND CONTRIBUTE TO A BETTER AFRICA AND A BETTER WORLD

Government Key Strategic Focus Areas

4


MINISTER’S DELIVERY AGREEMENT:

• JOB CREATION.• WOMEN EMPOWERMENT.• YOUTH DEVELOPMENT.• SKILLS DEVELOPMENT.• EMPOWERMENT OF

PEOPLE LIVING WITH DISABILITIES.

NATIONAL DEVELOPMENT PLAN:

• CAPACITY BUILDING OF STAFF AT ALL LEVELS.

• CAPACITY BUILDING OF STATE OWNED ENTERPRISES.

• IMPLEMENTATION OF A FOCUSED REGIONAL INTEGRATION STRATEGY.

Other Strategic Priorities

5

Cross-Border Road Transport AgencyMandate

• To improve the flow of passengers and freight by road transport in the

region

• To introduce regulated competition in cross-border road passenger

transport

• To reduce operational constraints for the cross-border road transport and to

support trade facilitation

• To support the development of the cross-border road transport industry

and to establish meaningful industry partnerships

• To strategically reposition the work of the C-BRTA.

6

Established in terms of the Cross-Border Road Transport Act, No. 4 of 1998

Cross-Border Road Transport AgencyVision and Mission Vision

To be the leading cross-border road transport Agency within the region

MissionTo spearhead social and economic development within the SADC region through

facilitating unimpeded cross border road transport

Strategic Outcome Oriented Goals

Facilitate Unimpeded flow of Cross Border TransportPromote Regional integration

Promote safe and reliable cross-border transport; and Strategically positioning the work of the C-BRTA in order to

enhance organizational Sustainability

7

Cross-Border Road Transport Agency2010/2011 CASH FLOWSFY2009/2010 FY2010/2011

Net cash from operating activities (day-to-day income and expenses)

R4.67m (7.35)

Asset acquisitions (R0.89m) (6.56)

Total cash movement for the year R3.62m (13.94)

Total cash in the bank R16.95m R3.02m

DEPLETION OF CASH RESERVES

Cash Flows: 2010/2011

11

13

Cross-Border Road Transport AgencyReflecting on the 10 Point Plan (as of June 2013)

Item Intervention Progress

1 Recruiting suitably qualified personnel

2 Consensus on the mandate & legitimacy of the C-BRTA

3 Image rebuilding through obtaining an unqualified audit opinion

4 Resolving governance lapses at Board level

5 Developing a funding model responsive to operational imperatives

6 An organisation structure that is consistent with the mandate

7 Developing leadership & managerial cohesion at all levels

8 Developing a responsive organisational culture and values

9 Inculcating performance standards & accountability

10 Developing strategic partnerships with key stakeholders

14

Cross-Border Road Transport AgencyAudit Outcomes

• The Agency attained its first unqualified audit opinion since establishment 15 years ago.

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2010/11 and 2011/2012 2013/142012/13

QUALIFIED AUDIT

UNQUALIFIED AUDIT

UNQUALIFIED AUDIT


Strategic Partnerships• REGIONAL: SADC Secretariat, JC, JRMG• NATIONAL: BCOCC, NICOC, NATJOINTS, IACF, DEP. Of

Tourism, BRAND SA, DHA, SARS, • PROVINCIAL: Transport MECs and Provincial

transport Depts• LOCAL LEVEL: Metro’s and Municipalities• INTERNAL: Route Committees, Operator Forums,

Stakeholder Forums, Joint law Enforcement Initiatives, SMME development initiatives

Cross-Border Road Transport AgencyEmployment Equity 2013/2014 financial year

17

Employment Equity for 2013/2014


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Employment Equity …Employment Equity (2)

Cross-Border Road Transport Agency2010/2011 CASH FLOWSINCOME

ACTUAL BUDGET %VARIANCE

TOTAL INCOME 140, 815, 272 185, 768, 921 (24%)

Permit revenue 96, 456, 191 160, 903, 021 (40%)

Penalty revenue 35, 052, 800 20, 865, 900 68%

Interest received 5, 977, 300 4, 000, 000 50%

Other income 3, 328, 981 - 100%

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Financial Performance as at 31 March 2014

Cross-Border Road Transport Agency2010/2011 CASH FLOWSEXPENDITURE

ACTUAL BUDGET %VARIANCE

TOTAL EXPENDITURE 187, 331, 310 185, 768, 921 (1%)

Staff costs & Directors Remuneration

118, 189, 614 124, 629, 432 6%

Audit Fees (Inter. & External) 3, 329, 012 3, 350, 900 1%

Consultation costs 9, 808, 691 13, 192, 414 26%

Legal fees 1, 161, 063 2, 700, 000 57%

Other operating expenses 50, 128, 172 39, 489, 541 (27%)

Depreciation and amortisation

4, 714, 758 2, 407, 320 (96%)

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Financial Performance as at 31 March 2014 (2)

Cross-Border Road Transport Agency2010/2011 CASH FLOWSDEFICIT FOR THE YEAR

ACTUAL BUDGET

Total income 140, 815, 272 185, 768, 921

Total Expenditure 187, 331, 310 185, 768, 921

Deficit for the year (46, 516, 038) -

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Financial Performance as at 31 March 2014 (3)

Cross-Border Road Transport AgencyProgress on Strategic Projects (1)

CHANGING GEARS

STRATEGIC PROJECT

PROJECT OBJECTIVE

PROGRESS TO DATE FUTURE PLANS

Operator

Compliance

Accreditation

Scheme (OCAS)

Accreditation of

cross-border

operators based

on their risk

profiles to reduce

transit delays.

• Identifying the key OCAS

system requirements;

• On-going technical

stakeholder engagements;

• Benchmarking and tailoring

completed;

• Draft Design Framework of

OCAS governance approved

by Regulatory Committee;

and

• Development of business

rules.

• Strategic stakeholder

engagements with the

Shareholder to formally

adopt OCAS at national

level;

• Development of OCAS

scheme standards; and

• Piloting – 2016.


CHANGING GEARS

STRATEGIC

PROJECT

PROJECT

OBJECTIVE


Market Access

Regulation

(MAR)

Scientific

determination

of supply and

demand within

cross-border

corridors.

• Draft Market Access

Regulation Model finalised;

• The MAR Model has been

expanded to cater for six (6)

major cross border routes

and is scheduled has been

completed.

• Pilot and refine the MAR

model in 2014/15; and

• Fully implement the MAR

tool from 2015 onwards.

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CHANGING GEARS

STRATEGIC

PROJECT

PROJECT

OBJECTIVE

PROGRESS

TO DATE

FUTURE PLANS

Industry

Partnership

Development

Plan (IPDP)

To create

mutually

beneficial

partnerships

with industry

stakeholders

Stakeholder

mapping

Completed

• Build strong stakeholder relationships and

partnerships in the cross border industry

aimed at reducing operational constraints; and

• Drive initiatives on the development of

SMMEs and empowerment of the historically

disadvantaged individuals.

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CHANGING GEARS

STRATEGIC

PROJECT

PROJECT

OBJECTIVE

PROGRESS

TO DATE

FUTURE PLANS

Business Case

for corridor and

cross- border

management

reforms

To define the

role of the C-

BRTA in border

management

reforms.

Project

Completed

• Engage cross border industry stakeholders

on proposed corridor and border

management reforms and impact, 2014/15;

• Feasibility study on the recommended

corridor and border management reforms.

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Cross-Border Road Transport AgencyProgress on Strategic Projects (5) CHANGING GEARS

STRATEGIC PROJECT

PROJECT OBJECTIVE


Strategic

Value

Proposition

Plan

To outline the

future strategic

value of the

Agency within

the industry

• Situational analysis

completed

• Industry

environmental

scanning and

stakeholder

engagements on-

going; and

• Integration of all

strategic projects.

• Present a plan to DoT and the

Minister of Transport with defined

roles and strategic value

propositions for the Agency in the

cross border industry;

• Support the DoT in drafting

legislation that may be required to

change the mandate of the C-BRTA;

• Progressive implementation of the

Strategic Value Proposition Plan in

the cross border industry.

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Regulatory Committee Mandate • Section 23 of the C-BRT Act mandates the Board to regulate access to

the cross-border road transport market.

• Regulatory Committee established in terms of section 13 of the C-BRT

Act to assist the Board in the execution of its regulatory functions.

• Regulates market access through permit administration process

based on provisions of the road transport agreements.

• Liaison with Transport Appeal Tribunal on matters of mutual interest.

Cross-Border Road Transport AgencyAnnual Performance Plan 2014/15

32

Strategic Objectives 2014/19 Key Performance Indicators (APP 2014/15)

To introduce and implement

regulated competition

1. Implement the scientific tool used by the Regulatory

Committee (MAR);

To revise the C-BRTA mandate 2. Initiatives taken to revise the C-BRTA mandate;

To promote efficiencies in permit

issuing.

3. Develop and implement the new permit system;

To generate and deploy strategic

intelligence capabilities to improve

compliance with road transport

legislation

4. Developed and Implemented Operator Compliance

Accreditation Scheme (OCAS);

5. Operationalise smart law enforcement system;

6. Permanent deployment of Inspectors within 2km

proximity from major borders;

7. Number of inspections conducted;

Cross-Border Road Transport AgencyAnnual Performance Plan 2014/15

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Strategic Objectives Key Performance Indicators

To increase strategic influence with

stakeholders so as to enable the

organisation to achieve its objectives.

8. Implement empowerment initiatives focusing

on historically disadvantaged individuals;

9. Percentage achieved on client satisfaction

survey conducted;

To proactively provide value added

advisory services to the Minister of

Transport and other relevant

stakeholders.

10. Cross-border road transport report submitted

to the Minister and other relevant

stakeholders;

Annual Performance Plan 2014/15 (2)

Cross-Border Road Transport AgencyAnnual Performance Plan 2014/15 (3)

34

Strategic Objectives Key Performance Indicators

To develop and implement a high

performance culture in the organization.

11. Improve organizational culture;

12. Enhance performance standards aligned to

organisational strategic objectives and values;

To ensure the financial viability and

sustainability of the C-BRTA

13. Develop and implement financial

sustainability strategy/model; and

To improve the internal control

environment

14. Maintain an unqualified audit opinion.

Cross-Border Road Transport AgencyMTEF Budget Per Classification

35

2014/15 2015/16 2016/17

Revenue

Permit fees R185m R199m R214m

Penalties R24m R25m R25m

Interest R5m R6m R6m

TOTAL REVENUE R214m R229m R245m

Current Payments

Compensation for employees R142m R152m R164m

Goods and Services R72m R77m R81m

Capital Assets

Capital Expenditure R20m R10m R10m

TOTAL EXPENDITURE R234m R239m R255m

Cross-Border Road Transport AgencyMTEF Budget Per Division

36

2014/15 2015/16 2016/17

CURRENT EXPENDITURE

Facilitation and Industry Development R20m R21m R23m

Road Transport Inspectorate R78m R83m R87m

Regulatory and Legal Services R27m R29m R31m

Strategic Support R24m R26m R28m

Administration (Governance, CEO’s Office, Corporate Service and Finance)

R65m R70m R76m

TOTAL CURRENT EXPENDITURE R214m R229m R245m

Cross-Border Road Transport AgencyCritical Matters and Interventions

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Key Challenges Interventions

On-going litigation against the C-BRTA on the

increase of permit fees

The Agency’s application for leave to appeal was

unsuccessful. The legal representatives of the Agency

were instructed to petition the Supreme Court of Appeal

for leave. The petition is pending.

Resolution of the Lesotho/Free State

passenger movement resulting in non-

adherence to SACU MOU

Departmental leading role in the amendment of the C-

BRT Act. Consulted: Select Committee on Public Services,

Executive Council: Free State Province, the Regulatory

Committee of the C-BRTA, the Inter Agency Clearing

Forum, National Intelligence Coordinating Committee, JCPS

Cluster, NATJOINTS, Gauteng MEC of Roads and Transport,

Ministry of Transport of the Kingdom of Lesotho,

passenger transport operators affected.

37

Strategic Impediments & Initiatives• Need to focus on the funding model as it is evident that the current model is not

sustainable.

• Need to use JCs and JRMGs as outcome-based meetings through which we add

value to the industry, coupled with structured reporting of outputs of these

meetings, through the Regulatory Committee, with Ministerial and Parliamentary

structures.

• Focus on developing country profiles to empower operators in member state

countries and Focus on beyond the borders, where our operators face major

impediments.

• Need to develop a comprehensive plan for addressing the question of un-

roadworthy cross-border vehicles and to foster a review of SADC vehicle standards.

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Cross-Border Road Transport AgencyStrategic Impediments & Initiatives (2)

• Focus on Road Safety.

• Need to develop the capability and competency for championing issues

pertaining to “vehicle safety” and introducing the Australian-type accreditation

systems within S.A.

• Need for appreciating the changing dynamics in border towns and the need to

respond to provincial imperatives e.g. Musina. Ficksburg

• Strengthening partnerships with SARS and other players in the Border

environment.

• Need for protection of our S.A. domestic operators in regard to conditions

obtaining in our neighbouring countries – need for review of Bilateral Agreements

& monitoring of implementation of the SADC Protocol.

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• Need for activation of the entire mandate of the C-BRTA to enable seamless and

efficient passenger and freight logistics in the cross-border space.

• Harmonisation of regulatory frameworks between the C-BRTA system and other

licensing authorities (Provincial)

• Elevation of the Profiling unit to provide intelligence to support the cross-border

transport industry.

• Remote issuance of cross-border permits within two working days to enhance

customer services and reduce cost of doing business.

• Empower cross-border operators to diversify their business models (service

stations, etc)

Strategic Impediments & Initiatives (3)

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Cross-Border Road Transport AgencyConcluding Remarks

• The C-BRTA is geared to demonstrate its commitment to adding public value

through its strategic interventions.

• This Agency is also poised to support the National Programme of Action of

government of industrialization and job creation.

• The Agency is committed to maintaining an unqualified audit opinion.

• Going forward, the C-BRTA is gearing itself to improve its service offerings by

overhauling its permit administration system.

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i thank you, sincerely.

Documents

Cross-Border Road Transport Agency CROSS BORDER ROAD TRANSPORT AGENCY (C-BRTA) STRATEGIC AND ANNUAL PERFORMANCE PLANS 2014/15 PORTFOLIO COMMITTEE ON TRANSPORT