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Review of the White Paper on National Transport Policy, 1996

Phase II Recommendations

Report

DRAFT

23 December 2015 Prepared by Genesis Analytics, in association with Aurecon

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Document Reference: Phase II Recommendations Report, for the Review of the White

Paper on National Transport Policy, 1996 / Tender number: DOT/13/2014/ITP

Date: 23 December 2015

Contact Person

Paul Jackson

Genesis Analytics (Pty) Ltd

Office 3, 50 Sixth Road

Hyde Park, 2196, Johannesburg

South Africa

Email: [email protected]

Tel: 011 994 7000

Mobile: 084 819 8706

mailto:[email protected]

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Table of Contents

1. INTRODUCTION TO THE PROJECT ..................................................... 1

2. SUMMARY OF FINDINGS ...................................................................... 2

Review of key Government documentation ............................................. 2

Government Institutions Review ............................................................. 3

transport sector impact analysis .............................................................. 7

Review of international reference points ............................................... 13

Policy Gap Analysis .............................................................................. 14

Land passenger transport ........................................................................ 15

Land freight transport ............................................................................... 15

Civil aviation ............................................................................................. 15

Maritime Transport ................................................................................... 16

Rail Transport ........................................................................................... 16

Road and Traffic Safety ........................................................................... 16

Emerging policy themes ........................................................................... 17

Stakeholder Consultation ...................................................................... 18

Land Passenger Transport ....................................................................... 18

Land Freight Transport ............................................................................. 19

Civil Aviation ............................................................................................. 19

Maritime Transport ................................................................................... 20

General/ Cross-cutting issues .................................................................. 20

3. POLICY RECOMMENDATIONS ........................................................... 22

Transport infrastructure......................................................................... 22

Road Network ........................................................................................... 22

Border Posts ............................................................................................. 22

Road-Based Public Transport Infrastructure ............................................ 23

Rail Network ............................................................................................. 23

Aviation Infrastructure .............................................................................. 23

Pipeline Infrastructure .............................................................................. 23

Land Passenger Transport ................................................................... 23

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Land Freight Transport ......................................................................... 25

Civil Aviation ......................................................................................... 26

Maritime Transport ................................................................................ 27

Road and Traffic Safety ........................................................................ 27

Emerging policy themes in the transport sector .................................... 28

Transport Demand Management ............................................................. 28

Integrated Transport Planning .................................................................. 28

Universal Accessible Transport ................................................................ 28

Rural Transport ........................................................................................ 29

Economic Regulation and the role of the State in Transport ................... 29

Environmentally Sustainable Transport ................................................... 30

Non-Motorised Transport ......................................................................... 31

Transport Data and Research .................................................................. 31

4. APPENDIX ............................................................................................ 32

List of Figures

Figure 1: Land passenger transport not meeting customer needs (cost efficiency)............... 10 Figure 2: Land passenger transport not meeting customer needs (time efficiency) .............. 11 Figure 3: Land passenger transport not meeting customer needs (safety) ............................ 12

List of Tables

Table 1. Institutional review summary ...................................................................................... 5 Table 2. Summary of transport sector impact assessment ...................................................... 8 Table 3: Key themes that formed the basis for the policy gap analysis ................................. 14

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1. INTRODUCTION TO THE PROJECT

Nearly two decades have passed since the adoption of the White Paper on National Transport

Policy, 1996 (‘the White Paper’) and during this time, transport policies and practices across

the globe have evolved, some of which has found its way into South Africa’s transport

strategies, policies and planning frameworks. The nature, experience and demands of the

transport sector in South Africa have also changed. For these reasons, the Department of

Transport (‘the DoT’) would like to take stock of transport policy across the public sector; how

the sector is currently organised and the key transport trends that have emerged, and update

the White Paper as necessary. It is against this contextual background that the DoT

commissioned the Genesis Analytics consortium to conduct a review of the White Paper.

The purpose of the review is to assess whether:

changes in the institutional, legislative or policy landscape necessitate changes to the

White Paper;

existing policies in the White Paper need to be revisited in light of possible adverse

impacts;

new policies that are currently not in the White Paper are required in a revised version;

and

on this basis, formulate a revised White Paper.

This report is a brief summation of the key outputs of Phases I and II of the project, based on

findings from research and stakeholder consultations, followed by recommendations on

possible revisions to the White Paper.

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2. SUMMARY OF FINDINGS

This section of the report contains a summary of the following project outputs to date:

Review of key government documentation;

Government institutions review;

Transport sector impact analysis;

Review of international reference points; and

Stakeholder consultation.

REVIEW OF KEY GOVERNMENT DOCUMENTATION

The purpose of this activity was to conduct a desktop review of the current transport sector

Policies, Strategies, Plans, Frameworks and Legislation since 1996, as well as selected

reports by transport specialists, to understand the:

vision and objectives for South Africa’s transport sector; and

issues, gaps and challenges in the transport sector

In terms of the overall vision for transport in South Africa, there has not been any major shift

since the White Paper in 1996. South African Government transport-related policies, strategies

and plans developed since 1996 are a continuance and an evolution of the 1996 White Paper’s

vision. There is, however, greater emphasis on treating transport as a system; an aspiration for

effective corridor development and inter-modal linkages; seeking to influence behavioural

change (especially as it relates to safety); and promote non-motorised transport. Furthermore,

there is stronger appreciation for the inter-relationship between transport and spatial planning,

energy and environmental considerations; and recognition of a need for unified economic

regulation across transport modes.

A daunting set of challenges face the transport sector, of which the following probably have the

greatest impact on South Africa’s residents and enterprises, and the broader economy:

Fragmentation in government planning, implementation and funding of public

transport.

Ineffective measures to improve transport safety, in particular roads transport.

Persistent under-performance in passenger and freight rail transport.

Significant negative externalities from the proliferation and inadequate management of

heavy vehicle haulage on the roads network.

Slow progress in serving marginalised rural populations.

Insufficiently robust economic regulation and oversight of State Owned Companies in

transport (rail, ports, civil aviation).

Poor implementation of existing policy.

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GOVERNMENT INSTITUTIONS REVIEW

This activity entailed a desktop assessment of: a) the extent to which Government has

established the institutions referred to in the White Paper; and b) the relevance of these

institutions in their current form.

The overarching objectives of the White Paper, with regard to institutions, were to reduce

Government’s direct intervening role in transport and devolve transport functions to the lowest

competent level of government. From this review it was evident that some progress has been

made on these objectives:

A number of transport infrastructure functions have been separated from the State for

a number of modes such as roads (e.g. SANRAL) and aviation (e.g. ACSA).

Within land transport, a number of transport functions have been devolved to the

Provincial level. No assignment of functions has as yet taken place to the Metropolitan

level of government although Transport Authorities have been established in Cape

Town (Transport for Cape Town) and eThekwini Transport Authority.

Road Agency Limpopo (RAL)/Northern Province Roads Agency is the only provincial

road infrastructure delivery parastatal registered under the Company’s Act of the

Republic of South Africa. The other eight provinces do not have such Agencies, where

responsibility for the provincial road infrastructure lies with Provincial Departments.

There is no consensus on whether road infrastructure is better managed, maintained

and built from entities within or outside of Provincial/Municipal government structures.

However, the World Bank does recommend that it should be a “specialised entity”.

A number of challenges still remain. Much of the institutional landscape in transport still

remains with monopolistic SOCs (e.g. Transnet, PRASA). These monopolies exist in an

environment of weak economic regulation and thus may inhibit the competitiveness of various

sectors. Furthermore, it may be argued that their existence has limited the extent of capacity

building within relevant functions of Provinces and Metropolitan municipalities.

This institutional review exposed a number of challenges with regard to regulation:

It has been observed that the separation between regulation and operation has not

consistently been effective (TNPA and TPT);

A few of the regulatory bodies that have been formed have been found to have

inadequate capacity or have had legitimacy challenges (NPTR and the Regulating

Committee of ACSA and ATNS); and

The extent to which two civil aviation licensing councils (domestic and international)

are necessary is unclear, especially in light of known overlaps around oversight on

safety and reliability.

During this analysis the issue was raised as to whether transport-related judicial matters

should form part of the general court system or whether they should fall under the purview of

specialised courts. The White Paper proposed a number of specialised legal review

mechanisms, such as the Transport Appeals Tribunal (TAT), the Aviation Court, and the Traffic

Courts. Only the TAT is established, but it is currently not fully functional. There appears to be

demand for the appeal mechanism of the TAT. As for the Aviation and Traffic courts, it would

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seem that the justice system is currently appropriate to address legal review matters in

transport.

Other institutions mentioned in the White Paper that were not established, include: Southern

African Regional Air Transport Authority and the National Navigation Authority (NNA). Some

maritime experts are of the view that the NNA should still be established.

A tabular summary of the institutional review can be found on the following page.

Table 1. Institutional review summary

White Paper Chapter

Institutions that originate from 1996 White Paper

Date of Establishment

Enabling legislation Still Exist?

Type of Institution

Shareholder/ Institutional home

Infrastructure

South African National Roads Agency (SANRAL)

1998 The South African National Roads Agency Limited and National Roads Act, 1998

YES SOC DoT

Johannesburg Roads Agency (JRA) 2000 The Companies Act (Act 71 of 2008) YES (Pty) Ltd City of Jhb

Road Agency Limpopo (RAL)/Northern Province Roads Agency

1998 Northern Province Roads Agency Act and Provincial Roads Act (Act 7 of 1998)

YES (Pty) Ltd Gov. of Limpopo

Land Passenger Transport

South African Rail Commuter Corporation (SARCC)/ Passenger Rail Agency South Africa (PRASA)

1990 Legal Succession Act of the South African Transport Services (“SATS”) Act of 1989, as amended.

YES SOC DoT

Rail Safety Regulator (RSR) 2002 The National Railway Safety Regulator Act (Act 16 of 2002), as amended

YES SOC DoT

National Public Transport Regulator 2009 National Land Transport Act (Act 5 of 2009) YES Legislated Body DoT

National Transport Appeal Tribunal Not Established Transport Appeal Tribunal Act (Act 39 of 1998) NO Legislated Body DoT

Provincial Regulating Entity 2009 The National Land Transport Act (Act 5 of 2009) YES Legislated Body DoT

Municipal Regulating Entity Not Established The National Land Transport Act (Act 5 of 2009) NO - -

Cross Border Road Transport Agency (C-BRTA)

1998

Cross‐Border Road Transport Act, (Act 4 of 1998),

as amended National Land Transport Act (Act 5 of 2009) National Road Traffic Act, 93 of 1996, as amended Tourism Act

YES SOC DoT

Inter Modal Planning Committee 2009 National Land Transport Act (Act 5 of 2009)

YES Legislated Body Cape Town Metro & NMB

Land Transport Advisory Boards 2009 National Land Transport Act (Act 5 of 2009)

YES Legislated Body Cape Town Metro

Transport for Cape Town 2009 National Land Transport Act (Act 5 of 2009)

YES Legislated Body Cape Town Metro

eThekwini Transport Authority 2000 The National Land Transport Transition Act (NLTTA) Act (Act 22 of 2000)

YES Legislated Body eThekwini Metro

Civil Aviation

Airports Company Limited (ACL)/ Airports Company South Africa (ACSA)

1993 Airports Company Act of 1993, as amended, Companies Act of 1973 (as amended)

YES SOC DoT

Air Traffic and Navigation Services Company Limited (ATNS)

1993 Air Traffic and Navigation Services Company Act (Act 45 of 1993)

YES SOC DoT

Regulating Committee of ACSA and ATNS

1994 Airports Company Act of 1993, as amended YES Legislated Body DoT

White Paper Chapter

Institutions that originate from 1996 White Paper

Date of Establishment

Enabling legislation Still Exist?

Type of Institution

Shareholder/ Institutional home

Civil Aviation Authority (CAA)/ South African Civil Aviation Authority (SACAA)

1998 Civil Aviation Act (Act 13 of 2009) YES SOC DoT

Air Services Licensing Council (ASLC) 1991 Air Services Licensing Act (Act 115 of 1990) YES Legislated Body DoT

International Air Services Council (IASC)

1993 International Air Services Act (Act 60 of 1993) YES Legislated Body DoT

Aviation Court Not Established - NO - -

Southern African Regional Air Transport Authority (SARATA)

Not Established - NO - -

Maritime

National Navigation Authority (NNA)

Not Established (SAMSA performs function)

- NO - -

South African Maritime Safety Authority (SAMSA)

1998 South African Maritime Safety Authority Act, 1998 YES SOC DoT

Transnet National Ports Authority (TNPA)

2000 National Ports Act (Act No. 12 of 2005) YES SOC DPE

Portnet/ Transnet Port Terminals (TPT) 2000 National Ports Act (Act No. 12 of 2005) YES SOC DPE

Independent Regulator 2005 National Ports Act (Act No. 12 of 2005) YES SOC DoT

Maritime Industry Training Board (MITB)

1986. Replaced by Transport Education and Training Authority in 2000

Skills Development Act (Act No 97 of 1998) YES - -

Road traffic and safety

Road Traffic Academies Varying National Road Traffic Act (Act 93 of 1996) YES Educational Institutions

Varying

Traffic Courts

Not Established - NO - -

Road Accident Fund 1996 Road Accident Fund Act, 1996 (Act No. 56 of 1996) as amended

YES Legislated Body Owned by the SA public

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TRANSPORT SECTOR IMPACT ANALYSIS

The objective of this analysis was to determine how well the current White Paper has served

the needs of South Africans. In order to accomplish this task we used a desktop review to

assess the trends in the South African transport sector since 1996 using selected areas of

measurement to understand the status quo. This method was supplemented by stakeholder

consultations.

At the highest level, the White Paper established the following goals for transport:

Enable access to personal economic opportunities and social services;

Facilitate the movement of goods and people; and

Support economic and environmental sustainability and inclusive growth.

For these goals to be achieved, there first needs to be adequate supply of transport

infrastructure and services in relation to demand. Secondly, for the users of transport (people

and enterprise), that supply should, at a minimum, be: 1) Cost efficient; 2) Time efficient; and

3) Safe and secure.

By reviewing these measurement areas, we were able to draw conclusions on the impact of

transport in South Africa on people, business and the environment.

The following table represents a summary of the key findings of the transport sector impact

assessment, combined with an analysis of potential drivers of the identified issues.

Table 2. Summary of transport sector impact assessment

Mode Key findings Key drivers of challenges

1. Maritime Generally, the supply of ports infrastructure (designed capacity) exceeds demand, with constraints in certain instances (especially Durban port).

Poor cost and time efficiency at some ports threatens international competitiveness of maritime sector and adds cost to the economy, but with some examples of good port performance.

Re: Cost and operational inefficiencies:

Lack of political will to corporatise TNPA

Insufficient competition in ports services (terminal handling), with no provision for economic regulation of these services

Historically under-capacitated Ports Regulator

Historical under-investment in ports infrastructure

2. Civil aviation South Africa has an efficient and productive aviation industry, which is able to compete both domestically and internationally

Airports are generally well-developed and compare well with international standards

ACSA airport tariff increases between 2010-2012 appear to contradict the White Paper objective of making users’ interests of prime concern, due to the high cost to the consumer.

Low accident rates with some exceptions.

Re: ACSA tariffs:

Weak economic regulation (due to undue political influence) by the Regulating Committee of ACSA and ATNS.

3. Pipelines South Africa has developed a liquid and gas pipeline system, operated as a utility.

4. Road and Rail

Land passenger transport:

Majority of the population take less than an hour to travel to work. However the time efficiency of public transport has deteriorated between 2003 and 2013 while the proportion of those who travel longer than 60 minutes for education has increased by 35% during this time.

Passenger rail has lost market share to other modes, especially taxis.

Commuters and scholars are increasingly using taxis and private cars as their main mode of travel, primarily because of the flexibility these modes offer.

Accessibility to public transport has improved particularly for buses and taxis, where accessibility to bus services improved by 34% between 2003 and 2013

Majority of South African commuters presently spend at least 30% of their income on transport.

Buses and taxis dominate long-distance passenger transport, with long distance rail experiencing a steady decline in ridership.

South Africa has one of the worst road fatality rates in the world and a poor safety record in rail.

Due to the multifaceted and complex nature of land passenger transport, please refer to the three root cause analysis graphics on subsequent pages. Land passenger transport is characterised as “not meeting customer needs”, and is divided into:

Relatively expensive

Long travel times

Frequently unsafe

Mode Key findings Key drivers of challenges

Land freight transport and roads infrastructure:

Land freight is dominated by road freight transport.

National roads network is in good condition, whereas many provincial roads have deteriorated. Road condition has a direct impact on vehicle operating costs.

Re: Road-rail split:

Rail is not meeting customer needs, due to the slow and unreliable nature of rail services, which is a direct consequence of historical underinvestment in track maintenance, signalling systems, rolling stock and transhipment facilities.

Re: Deteriorating roads infrastructure:

Inadequate management of truck overloading

General underfunding position for roads infrastructure, due to the historical backlog of underinvestment; suboptimal allocation of roads maintenance funds; and truck hauliers not bearing the true cost of their impact on roads

Insufficiently capable/ underperforming provincial and local road departments

5. Environment

When compared to international reference points, it is evident that the country has a fairly reasonable environmental footprint.

However, excessive road freight is detrimental to the environment.

Figure 1: Land passenger transport not meeting customer needs (cost efficiency)

Figure 2: Land passenger transport not meeting customer needs (time efficiency)

Figure 3: Land passenger transport not meeting customer needs (safety)

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REVIEW OF INTERNATIONAL REFERENCE POINTS

During this activity, the service provider conducted a desktop review of a range of countries to

assess how other countries enable, coordinate, manage and regulate the transport sector. It

was agreed, with the White Paper Steering Committee, that the selection of international

references would be primarily based on issues that have emerged from the Government

Institutions Review, and from the bilateral engagements and general research conducted

during this phase. The issues identified included:

Integrated Governance and Transportation;

Transport Safety and Security;

Rural Transport;

Transport Infrastructure;

Sustainable Transport Operations;

Financing and Funding;

Monitoring and Evaluation in Transport.

The international benchmarking was centred on understanding how other countries have

sought to address the issues and what potential findings and solutions can be extracted from

their experience. Lessons from international best practice are numerous. However, the

following are worth highlighting:

A key enabling feature to achieving integration is the presence of a strong institutional

framework which allows seamless planning, coordination, execution, monitoring and

implementation of the separate components. Integration can come in the form of

Super-Ministries or the strategic grouping of municipal functions, meaningful

devolution to the lowest competent level of government, or the establishment of

regulatory instruments to assure coordination and integration.

Improving road safety requires clear delineation of responsibility and accountability for

role players, coupled with the ongoing education of users. Designers of the system

(e.g. road infrastructure and vehicle technology, and excluding users) should ultimately

be held responsible for the operation of the transport system, while road users are

responsible for observing the rules set by the system designers.

Partnership is the key to success in rural transport, by bringing together key actors in

a collaborative environment that are best able to respond to the complex challenges

and find suitable solutions. Furthermore, road and rail infrastructure in rural areas is

not a panacea to transportation problems. Introducing and incentivising the use of

intermediate modes of transport has proved successful elsewhere (e.g. automated

rickshaws, motorcycles and bicycles).

Measures taken in Europe to optimise the road-rail freight mix have had variable

results. Success appears to be based on simultaneously implementing a combination

of measures, such as: a) offering financial subsidies to the private sector in developing

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or extending transhipment facilities or providing intermodal freight transport services;

b) supporting privately built/operated railway tracks; and c) implementing disincentives

for road-based freight, to internalise the cost of road freight.

Combined with Transit Oriented Development and Travel Demand Management

measures, sustainable transport operations can be achieved through technology

interventions, restrictions on car ownership and usage and the promotion of quality

public and non-motorised transport.

Best practice in financing and funding by other governments has been to: a) develop

guidelines for the mix of public vs. private financing, based on a position around

project priority, public vs. private goods and delivery model; b) provide for the full

range of funding options and establish guidelines for their use; and c) develop policy

positions for publicly-owned transport companies around financial performance;

conditions around recapitalisation; and a methodology for cost determination and

marginal allocation.

International experience shows that it is beneficial to translate policy objectives into

measurable targets and performance indicators, where user-focused indicators yield

the most meaningful results. Activities should consist of a combination of ongoing

monitoring to track progress to inform policy/programme adjustments, and

evaluation to establish a rigorous understanding of impact. This is all premised on

robust systems and processes for data collection and sharing.

POLICY GAP ANALYSIS

The purpose of this desktop exercise was to:

Understand the policy statements made by the White Paper on themes identified in the

table below;

Develop an understanding of the new policies that are being developed or have been

developed for these themes; and

Understand the policy gaps or emerging matters in the various transport sub-sectors

Table 3: Key themes that formed the basis for the policy gap analysis

Land Passenger Transport Maritime Transport

Land Freight Transport Rail Transport

Civil Aviation Road Traffic and Safety;

Emerging policy themes:

o Transport Demand Management;

o Integrated Transport Planning;

o Universal Access Transport;

o Rural Transport;

o Transport Economic Regulation;

o Environmentally Sustainable Transport; and

o Non-Motorised Transport

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Below are the key summary points from the more detailed policy gap analysis report.

Land passenger transport

Although the required policies and legislation exist to facilitate the devolvement of land

passenger transport functions to the lowest competent sphere of government, this has not

taken place. Devolution is desirable, as it brings government responsibility and public

accountability down to the site of the citizen interface with passenger transport. In order for this

to happen, pragmatic permutations of devolution need to be considered, and decisions related

to the creation of structures and the assignment of functions need to be timely.

Another implementation issue includes the creation of a dedicated land transport fund.

Although provision has been made in land transport legislation for (i.e. the Municipal Land

Transport Fund (MLTF)) no dedicated funding source has been identified. This should be

addressed in future policy development by identifying the correct sources of funding such as

road pricing, user charging or fuel tax.

Finally, the use of Vehicle Operating Contract entities (i.e. the mechanism used when

integrating minibus taxi operators into the BRT) should be recognised in policy as a type of

accepted operator.

Land freight transport

The implementation of the Road Transport Quality System (RTQS) has failed, which

contributes to overloading, accidents and the presence of un-roadworthy vehicles on South

Africa’s roads. The RTQS remains relevant and important, and processes should be

developed to implement this system as described in the Road Traffic Act (1996).

To augment the RTQS, consideration should be given to developing and implementing a

transparent and fair costing of the negative externalities associated with freight transport, and

the allocation of responsibility to various vehicle types.

From a regional perspective, South Africa should implement harmonisation of border crossing

standards (in particular, the one-stop-border-post concept). Axle-load limits for trucks should

not be altered.

There is a need for government to better understand and help overcome barriers to entry and

the successful operation of SMMEs; and black and women-owned enterprises in freight

transport, in a manner that is grounded in the realities of the marketplace.

Finally, there is merit in promoting stronger stakeholder consultation and coordination in freight

transport. This can be enabled by the establishment of consultative forums and working groups

with a clear directive and structured co-ordination between the different groups.

Civil aviation

The recent publication of the draft National Civil Aviation Policy (NCAP, 2015) and draft

National Airports Development Plan (NADP, 2014) have provided a more detailed framework

to the principles outlined in the White Paper, and these emerging documents have addressed

new challenges. These include:

the need to regulate Remotely Piloted Aircraft Systems (NCAP);

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the need for a strategy to mitigate noise and aircraft emissions (NCAP);

a more socio-economic developmental approach to airport development, rather than

the policy principle outlined in the White Paper that investment would be related to

market returns (NADP); and

the environmental sustainability of airports, especially since overall network planning

currently does not take into account minimising environmental impacts (NADP)

Finally, the tension needs to be resolved around direct State involvement in the provision of air

services. The White Paper envisaged a reduction in State involvement. However, the State still

owns three airlines (SAA, Mango and SA Express), and the Airlift Strategy (2006) maintained

that South Africa needed a national carrier.

Maritime Transport

Operation Phakisa (“Ocean Economy”) and the Green Paper on Maritime Transport Policy

represent new developments in maritime transport. The latter is in its early stages, and may

still evolve over time. Certain elements of Operation Phakisa may need to be reflected in

national policy. In particular, the creation of a new coordinated sectoral management system/

integrated ocean governance institutional framework.

Furthermore, there is a practical conflict between the Petroleum Pipelines Act (2003), the Gas

Act (2001) and the National Ports Act (2015), as it relates to licensing of facilities at the ports

i.e. private sector entities can bid to build and operate facilities at the ports, but may be refused

a license by the National Energy Regulator (NERSA).

Rail Transport

In the absence of a national rail policy, there has been no coherent national direction given to

guide the development of the rail sector and to align and revitalise the industry over time

according to rail’s global development trajectory. No national rail policy was in place to guide

national decision-making, both regarding rail's role in South Africa’s overall transport

requirements and investment strategy to meet them. The policy principles and interventions

outlined in the National Rail Policy Green Paper (May 2015) should be considered in the

update of the White Paper. In particular,

Maximising private sector participation;

Supporting the shift of freight from road to rail;

Enabling local level planning for new or existing passenger rail services (as envisaged

in the NLTA, 2009); and

Creating an economic regulator for rail – a crucial gap area

Road and Traffic Safety

South Africa’s mid-term progress report on the Decade of Action reported that the main

challenges we are facing are: i) driver behaviour; ii) state of our vehicles; iii) state of our roads,;

iv) fraud and corruption; v) fragmentation in execution of programmes; and vi) vulnerable road

users.

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The policy response to these issues, keeping in mind that road safety requires a multi-

disciplinary approach, but that these responses are limited to road infrastructure only, are

presented hereafter, and should be included in the updated White paper.

The Department of Transport must prioritise the development of safer road

infrastructure for all users and maintain the highest design standards on South African

roads. This includes the implementation of compulsory road safety audits every five

years, in collaboration with the Road Transport Management Corporation (RTMC).

This is premised on the Department of Transport, via the RTMC, educating

professionals in undertaking road safety audits.

The Department of Transport, via the RTMC, must create a forum for an integrated

approach with respect to road safety management, which includes the departments of

Education, Health and Justice.

Relevant training and support in road safety management must be provided to

Provinces, Metros and other local authorities to maintain a minimum level of skilled

personnel.

The Department of Transport, via the RTMC, must undertake better data collection

and reporting and must move the focus from road fatality reporting to road crashes

reporting.

Emerging policy themes

Transport demand management (TDM): A comprehensive TDM policy does not exist, to

guide all spheres of government in terms of the full set of measures that are available, where

and how they should be implemented-considering local site specific circumstances,

appropriate thresholds for implementation and the roles of and linkages between TDM, Land

Use Management and Transport Supply Management. As such, consideration should be given

to developing a National Road Transport Demand Management Policy.

Integrated transport planning: Despite the NLTA dealing with integrated transport planning,

in practice it has experienced limited success and difficulties in implementation, in that

integrated transport planning is subservient to prioritised public transport and associated

planning, and land-use/transport integration is missing from current practices. The Multi-modal

Transport Planning and Coordination Draft Bill is to be finalised, so as to ensure both vertical

and horizontal integrated transport planning within government, including an institutional and a

funding mechanism for both integrated planning and implementation across all levels of

government.

Universal access transport: There is a need for a continuous accessible path of travel for

persons with disabilities to connect public transport with local services and accessible housing.

There are currently no policies or regulations to promote universal access. The DoT is

currently seeking to develop regulations on Universal Access in Public Transport, and the

Department of Social Development has produced a Draft White Paper on the Rights of

Persons with Disabilities (2015). Key considerations in universal access involve linking

passenger transport licenses and permits to integrating universal access requirements in the

design and operation of all modes of transport.

Rural transport: Rural transport in South Africa is characterised by relatively poor connecting

infrastructure in some provinces, large distances, sparsely populated regions, self-sustaining

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communities, dispersed demand and relatively low incomes. Two key gap areas include

recognising, proclaiming or registering all transport-related rural infrastructure, and recognising

and enabling the potential of the full range of rural transport services.

Transport economic regulation: Currently, economic regulation in the South African

transport sector is fragmented, inconsistent and non-existent in some cases. To address these

problems in a coherent and effective way, the DoT has proposed the establishment of a Single

Transport Economic Regulator (STER). A draft Bill has been produced, and the Department of

Transport is in the process of gazetting the Bill for public comment.

Environmentally sustainable transport: There is currently little consideration given to

environmentally sustainable transport practices within transport policy. Key areas requiring

attention, in terms of the design of measures, including incentives and penalties, include

promoting:

fuel efficiency and the adoption of fuel-efficient modes of transport;

a compact urban form in land use planning;

less polluting modes of transport in the design of transportation systems;

environmental considerations in the construction of transport related infrastructure

Non-motorised transport (NMT): No specific policy statement is made on NMT in the White

Paper. Since the White Paper, the National Non-Motorised Transport Policy of 2008 has been

published. It is recommended that the aspirations and objectives of the NMT are reflected in an

updated White Paper. Key elements of this policy include the integration of NMT into the

transport system, especially through transport and spatial planning, where such integration is

manifested in the development of appropriate infrastructure for the various NMT modes, the

practical positioning of NMT relative to other modes of transport, and the provision of

sustainable funding for the promotion and development of NMT.

STAKEHOLDER CONSULTATION

Stakeholders were consulted to understand their views on the state of South Africa’s transport

sector and to test and receive input on current challenges and possible solutions. This

consultation took the form of two workshops and individual “one-on-one” interviews.

Stakeholders consisted of representatives from national, provincial and local government,

state-owned companies and government agencies, regulators, industry bodies and academia.

The input was wide ranging. The following represents a summary view of key and recurring

themes:

Land Passenger Transport

The provincial operating license system for minibus taxis is dysfunctional, with the

issuing of licenses being slow, opaque and often appearing to be issued on the basis

of patronage and corrupt relationships and not on objective, market-based criteria.

Furthermore, there exists a structural problem in the issuing of operating licenses,

where established Taxi Associations need to support taxi service provider license

applications, thereby introducing opportunities for rent-seeking and conflict of interest

in decision-making.

19

Provincial bus contracting activities are problematic on two levels: a) competitive

tendering not taking place as expected; and b) the administration of the subsidy

regime creates commercially unviable routes in some instances. With the former

negatively impacting on the value of public money spent, and the latter negatively

affecting commuter choice.

Significant financial commitments are being made by the public sector to various

transport modes in the absence of a modal choice framework. Without an objective

means to prefer investment in certain modes on particular corridors, uneconomic

decisions are being made, resulting in commuters being inadequately served and

cannibalising the limited public financial resources available for public transport.

The minibus taxi industry is aggrieved that it does not receive an operating subsidy

from government, despite transporting the majority of commuters on a daily basis.

In the absence of a clear and consensus vision on the objective of a subsidy in public

transport, subsidies are being misdirected to the detriment of South African residents,

and government is failing to maximise the value it extracts from the money it spends.

There is limited progress on integrated ticketing for public transport.

Land Freight Transport

Until the rail system is improved, it is counterproductive to charge road freight hauliers

more to use the road system, as they are unlikely to switch modes and will rather pass

on the additional cost to their customers.

Rail (freight and passenger) suffers from a lack of economic regulation.

Civil Aviation

The Regulating Committee of ACSA and ATNS need to be reviewed. In particular, the

appeals process has been found by industry to be problematic.

Requiring ACSA to manage secondary, less commercially viable airports necessitates

a degree of cross-subsidisation, which negatively affects ACSA airport tariffs i.e. if

ACSA was restricted to managing commercially viable airports the tariffs would be

lower, which would have a greater economic benefit to the country.

SACAA has acknowledged criticism around the process of the interpretation of

licensing applications and the refusal thereof.

There is a skills deficit within civil aviation, in particular, in technical

maintenance/engineering. Furthermore, there has been slow progress in changing the

racial composition of the cadre of pilots.

There is insufficient oversight over municipal and provincial airports, allowing for the

mismanagement of these categories of airports.

The liberalisation of civil aviation routes in the region has been severely hampered by

political and nationalist considerations.

20

Maritime Transport

There is an urgent need for creating integrated maritime governance. As it stands,

there appear to be instances of inefficient delineation of responsibilities and allocation

of resources (e.g. between SAMSA and DEA around combating and preventing

marine pollution from ships; and SAMSA and DoT around the usage of tug boats to

respond to marine incidents). Furthermore, there are questions around the best

institutional home for executing certain functions e.g. navigational aid and

hydrographic mapping services.

SAMSA is responsible for extensive national and international obligations; however, its

funding model does not empower the institution to effectively deliver on these

obligations. It is unclear whether SAMSA’s obligations need to be rationalised, or the

funding model should be revised.

There is a lack of effective competition in ports services, especially as it relates to

container and vehicle handling.

Clarity is needed around what the State is doing with smaller harbours, which may not

be commercially viable.

There is significant tension between the TNPA and the relevant spheres of

government (municipal/provincial) as it relates to port expansion space, with limited

avenues for resolving conflict.

General/ Cross-cutting issues

Effectively regulating and managing monopolistic entities: Much of the transport sector is

owned and managed by SOCs. Some of these SOCs, despite their achievements, have taken

actions which a) increase the cost of doing business or the cost of travel for South African

residents; and b) stifle the economic development plans of parts of government.

Vertical and horizontal integration: There needs to be better integration (planning and

implementation) between transport and non-transport related government entities (such as

land use and housing) and different levels of government and state-owned companies.

Funding: It is critical to establish effective funding mechanisms to support the successful

implementation of transport plans and policies, especially for public transport.

Developmental agenda: Transport infrastructure needs to be able to reconcile the

developmental agenda: infrastructure and transport services provision must be better balanced

between needing to be demand-responsive (responding to population density, passenger

numbers, traffic / freight volume or commercial demand) and being catalytic (being able to

“crowd-in” investment and unlock economic growth). Furthermore, more empowerment is

needed in the transport sector – in terms of black, women-owned businesses and SMEs.

Re-allocation of road responsibility: Expansions to the “urban edge” of some urban areas

and increased traffic volumes on certain provincial roads warrants a reallocation of these roads

to the relevant municipalities and to SANRAL, respectively, in order to improve coherence in

the management of those roads. However, provincial MECs have sometimes shown

themselves to be unwilling to transfer responsibilities for the roads in question.

21

Road maintenance: Spending on roads maintenance is not adequately efficient, with

municipalities and provinces sometimes: a) not sufficiently prioritising high volume roads; and

b) taking reactive and not preventative measures. Spending efficiency is further constrained by

poor capacity of government entities to effectively procure and manage road

building/maintenance contracts.

Data management: The collection of data across all modes of transport is patchy (e.g.

collected intermittently, not collected at all, or collected but not shared), and therefore

constrains evidence-based planning and effective performance management.

Devolution of powers and functions: Assignment of transportation planning, contracting and

regulating functions to lower levels of government is desirable. However, a “one size fits all”

approach should be avoided, given the different circumstances of municipalities, in terms of

the pre-existing transportation landscape and the extent of cross-municipal travel.

Skills: Shortages exist in various parts of the transport ecosystem (e.g. there is a significant

skills deficit to fulfil the aspirations of Operation Phakisa’s Ocean Economy plan). Furthermore,

the large number of agencies/entities of the DoT has, in some instances, resulted in a

hollowing out of skills in the DoT.

Economic regulation and public enterprise management: There are ongoing concerns

around: a) the independence of economic regulation functions (e.g. Regulating Committee of

ACSA and ATNS); b) the absence of economic regulation in rail; c) the inconsistent approach

to the role of the State and the private sector in the various transport modes; d) the limited

ability of the DoT to influence the role and strategic direction of Transnet and SAA; and e) the

drain on the fiscus represented by the likes of SAA and PRASA (especially Shosholoza Meyl).

22

3. POLICY RECOMMENDATIONS

In light of the aforegoing findings and analysis, the following recommendations can be made,

grouped according to these themes:

Transport infrastructure

Land passenger transport

Land freight transport

Civil aviation

Maritime transport

Road and traffic safety

Emerging policy themes

TRANSPORT INFRASTRUCTURE

Road Network

It is recommended that:

a) A Transport Demand Management Plan should be developed for each national road.

Traffic demand measures should be introduced to reduce freight volumes on the road

network (e.g. bulk minerals and agriculture products). Specifically, consideration should be

given to the introduction of heavy vehicle fees, where the latter is premised and dependent

on the following: a) the completion of Transnet Freight Rail’s infrastructure investment

programme; b) a fee calculation that does not exceed the true cost of the negative

externalities associated with road haulage; and c) accurate and correct pricing of rail

freight charges.

b) The Road Transport Quality System (RTQS) should be revisited and extended in order to

ensure full and proper implementation of the system.

c) Overloading Control Centres should be improved and the network should be expanded.

d) Uniformity in the establishment of Roads Agencies on all levels of government must be

investigated, in order to ensure standardisation of road requirements and quality.

e) The Minister of Transport should be given powers to re-allocate road responsibility to

different spheres of Government, based on changes in traffic volumes and urbanisation.

Border Posts


a) The Cross Border Road Transport Agency (CBRTA) should be supported with the

Operator Compliance Accreditation Scheme (OCAS), the regional scheme of CBRTA in

development of regional integration; and One Stop Border Posts (OSBP) should be fully

rolled out beyond concept phase.

23

Road-Based Public Transport Infrastructure


a) The quality of infrastructure for the public transport industry should be addressed, to

ensure uniformity in terms of standards and quality across all modes.

Rail Network


a) The existing Cape Gauge lines should not be converted to Standard Gauge lines.

However, in the case of greenfield or new line expansion proposals, a case by case

approach should be adopted, informed by appropriate feasibility work and business case

analysis. Such line extensions should not be merged with existing Cape Gauge

infrastructure. However, interchange facilities (associated with passenger rail) at

intersecting nodes and different gauge networks must be implemented to support

customer journey reliability.

b) The National DoT should support the revitalisation of branch lines and participation of the

private sector.

c) The implementation of new railway lines should be considered wherever it is possible to

serve both freight and passenger demand.

Aviation Infrastructure


a) International airports in metropolitan areas should be linked with a scheduled rapid transit

system, or a medium speed local or regional rail system, with consideration of check-in

services.

b) The concept of an 'Aerotropolis'1 at international airports should be supported, based on

robust feasibility assessments that demonstrate the net economic benefit.

Pipeline Infrastructure


a) The practical conflict between the Petroleum Pipelines Act (2003), the Gas Act (2001) and

the National Ports Act (2015) should be resolved, as it relates to the licensing of facilities

at the ports and the issuing of relevant gas/petroleum licenses.

LAND PASSENGER TRANSPORT


a) The provision of Passenger Public Transport should be supported in order to enable a

modal shift across all income groups from private to public transport modes.

1 The creation of a city in which the layout, infrastructure, and economy are centred on a major airport.

24

b) Provision is made in the White Paper for the formation of Transport Authorities, or

equivalent coordinated and accountable structures, at a Municipal, Provincial, or Mega-

City/ City Region level.

c) The White Paper should enable the devolvement of Land Passenger Transport functions

including the Contracting Authority and Regulating Entity functions, to the lowest sphere of

government, in accordance with the formation of Transport Authorities, where capacity

exists.

d) The Contracting Authority and Regulating Entity functions should be assigned to Transport

Authorities or an equivalent structure in order to facilitate the integration of all passenger

transport services, through tendered contracts, and in order to ensure the most efficient

application of subsidies to the benefit of passengers and not operators. Furthermore,

consideration should be given to ascribing legal status to the plans of the Transport

Authority.

e) Categories should be introduced for passenger rail services, ranging from metropolitan,

suburban low speed commuter and inter-city medium and low speed systems, to inter-city

high speed systems. These passenger rail categories have to be classified in terms of

service distance, speed, station spacing, and target markets.

f) The establishment and proper functioning of the Inter-Modal Planning Committee and

Land Transport Advisory Boards should be completed in order to ensure proper integration

between modes and with land use planning.

g) A dedicated funding source should be identified, established and implemented for the

provision of passenger transport, identifying the correct sources of funding such as road

pricing, user charging or fuel tax.

h) Institutional changes are required in all levels of government to align land use and

transport planning and provision in order to limit long travel distances and support the

provision of passenger public transport services within high density corridors.

i) Future Passenger Transport service provision should be based on the principle of an

integrated network of relevant modes through the application of an approved modal choice

framework.

j) Where passenger rail services are provided, the role of rail as the back bone of passenger

transport services must be re-established and supported.

k) All operators should be encouraged and empowered to bid for contracts, including the

encouragement of the minibus taxi and small bus operators by various means, to become

part of initiatives such as the BRT systems or other Integrated Public Transport Networks.

l) Reliable Passenger Transport data should be developed in order to ensure informed and

effective passenger transport planning and provision.

m) The roles and responsibilities of the Departments of Transport and Education with respect

to scholar transport as an important facet of passenger transport should be clarified and

the appropriate socio-economic solution should be identified.

n) The Transport SETA should be enabled and supported to provide capacity building to

Municipalities and Operators with regards to passenger public transport functions.

o) Planning for new or existing passenger rail services should be carried out on a local level

(as included in the NLTA 2009) and provision should be made for co-ordinating bodies.

However, rail infrastructure planning and executive decision making remains a national

competency.

25

p) Per the National Rail Policy: Green Paper 2015, the State will retain ownership of all State-

owned infrastructure (i.e. railway network) and right-of-way in State ownership, but where

appropriate it will facilitate private sector participation on mutually agreed terms.

Furthermore, the State will allow third party access to necessary portions of the national

railway network, where appropriate, subject to regulation by the Single Transport

Economic Regulator.

q) The Transport Appeals Tribunal becomes operational to deal with a major backlog in

cases and be able to assist the Industry with problems being experienced at provincial

level.

r) A public transport subsidy policy should be developed, which establishes the objectives of

such a policy, appropriate models of its implementation, and a costing methodology.

s) The development of an integrated land passenger transport ticketing platform/system

should be driven and funded by the National DoT. This is due to the common good nature

of integrated ticketing and the free rider problems associated with a single passenger

transport provider bearing the cost of developing such a platform/system.

LAND FREIGHT TRANSPORT


a) The Road Transport Quality System (RTQS) should be properly implemented in order to

regulate the road freight operators contributing to overloading and accidents.

b) The implementation and practice of regulation and licensing as per the Road Traffic Act

(1996) should be emphasised, including the powers for impounding vehicles etc.

c) The Single Transport Economic Regulator (STER) should be finalised and formally

established via its own legislation. The STER must consist of a substantive technical,

adjudicatory and investigative authority, complemented by a separate and dedicated

appeal mechanism, the Transport Economic Council (TEC). The review of process-related

disputes can be handled by a high court.

d) Strategies promoting the costing of negative externalities and the allocation of

responsibility to vehicle types must be emphasised and implemented, premised and

dependent on the following: a) the completion of Transnet Freight Rail’s infrastructure

investment programme; b) an accurate costing of the negative externalities associated

with road freight; and c) accurate and correct pricing of rail freight charges.

e) A central freight data base should be developed and kept up to date in order to inform

“inter-modal services”, which is a demand driven concept.

f) The establishment of consultative forums and working groups with a clear directive and co-

ordination between the different groups must be established and assisted to function

effectively in order to ensure regular stakeholder engagement.

g) The One-Stop-Border-Post (OSBP) concept should be fully rolled out.

h) Axle-load limits for trucks should remain unchanged.

i) Government should re-invigorate SMME development and empowerment in the transport

sector, particularly within the Maritime and Aviation sub-sectors. Furthermore, specific

attention should be given to formalising informal freight transport providers.

26

j) Private sector participation should be encouraged in building and operating freight

transshipment/ inter-modal interchange facilities, to facilitate the shifting of freight from

road to rail.

k) Investigate the implications and develop a sustainable strategy where closures of branch

lines are objectively justified. The investigation should further develop a strategy

considering how to maximise the potential use of branch lines in rural areas to facilitate

both passenger and freight transport.

l) The strategies and policy intent of the National Rail Policy Green Paper (May 2015) should

be considered in the update of the Transport White Paper.

CIVIL AVIATION


a) Remotely Piloted Aircraft Systems should be regulated.

b) The establishment of the STER should be supported, with Civil Aviation within its ambit,

and structured such that it is independent of undue political influence and conflict of

interest.

c) The mitigation of noise pollution and aircraft emissions should be emphasised and a policy

be developed.

d) The national planning and integration of airports into the broader transport network, in

respect of modal integration as well as in the context of the total air transport system, need

to be co-ordinated with the other spheres of government.

e) Airport development and planning should be incorporated into the planning initiatives of

relevant provincial and municipal governments, as an airport may influence provincial and

municipal socio-economic development. Specifically, the planning for airports should be

included in a Provincial Land Transport Framework (PLTF) which, in turn, would form part

of the economic development plan for the province.

f) The policy principle outlined in the 1996 White Paper that public sector investment in the

aviation industry would be related to market returns should be expanded to include

broader socio-economic value, when making decisions around the development of new or

upgrading and extension of existing airports and the designation of additional, or the

reduction of the number of, international airports or the allocation of public funding in the

determination of socio-economic value. Positive externalities must be clearly identified,

followed by a cost-benefit analysis that objectively demonstrates that the socio-economic

benefits exceed the costs.

g) Airport development should be planned holistically in accordance with a structured

National Airports Development Plan, which would support national, provincial and local

community objectives. Such development needs to complement the airport system, and in

some cases may even allow for competition within the system, to the benefit of the user.

h) National Government should not provide direct operational funding for any airport.

i) The State should maintain its commitment to reducing its direct involvement in the

provision of air services.

27

MARITIME TRANSPORT


a) Key elements of Operation Phakisa’s “Ocean Economy” (e.g. the integrated ocean

governance institutional framework) and principles from the Green Paper on Maritime

Transport Policy should be reflected in national policy.

b) The National Navigation Authority as proposed in the 1996 White Paper as an institution

that would provide maritime navigational aids in South African waters up to the

international boundary 200 km off shore should be established.

c) Maritime governance should be improved, such that there is a logical division and clear

delineation of responsibilities between public sector role players, accompanied by

appropriate financial resources and tools to execute mandates. Specific consideration

should be given to maritime safety, marine pollution, navigation and hydrographic

mapping.

ROAD AND TRAFFIC SAFETY


a) Increased funding should be made available for road safety campaigns and the improved

utilisation of existing resources, including road safety as component within road

infrastructure projects.

b) The Department of Transport should prioritise the development of safer road infrastructure

for all users.

c) Compulsory road safety audits should be undertaken, in collaboration with the Road

Transport Management Corporation (RTMC) and reviewed every 5 years in accordance

with the policy intent of the Draft NMT Policy.

d) The Department of Transport should create a forum in order to facilitate an integrated

approach with respect to road safety management and undertaking data collection,

monitoring and reporting on road crashes via the RTMC developing National Traffic

Accident Databank.

e) The highest design standards on SA roads should be maintained to ensure road safety.

f) The Department of Transport, via the RTMC, should educate professionals in undertaking

road safety audits.

g) The Departments of Education, Health and Justice should become involved in road safety

management, as road safety is a co-responsibility and multi-disciplinary, multi-dimensional

problem.

h) The relevant training and support in road safety management should be provided to

Provinces, Metros and other local authorities to maintain a minimum level of skilled

personnel.

i) Aggressive and effective enforcement, education, engineering interventions, and

evaluation at all levels of government and from all relevant transport agencies, is required.

j) The RTMC should complete the roll out of the driver de-merit system.

28

k) The Government-run insurance scheme for road accidents should be structured such that

legitimate claimants derive due benefit and efficiency in the scheme’s operation is

assured.

EMERGING POLICY THEMES IN THE TRANSPORT SECTOR

Transport Demand Management


a) A National Road Transport Demand Management Policy should be developed considering

the following principles:

i. Adopt the “user pay” principle;

ii. Reduce the need for travel by single occupancy vehicles;

iii. Diversify transportation options;

iv. Integrate land use and transport planning;

v. Integrate Non-Motorised Transport (NMT) philosophy in spatial development

strategies; and

vi. Encourage more efficient Heavy Goods Vehicle (HGV) movements.

b) A Traffic Congestion Management Plan should be developed in all Metropolitan

Municipalities.

Integrated Transport Planning


a) Mechanisms to assure multi-modalism are required. For example, legislation to enable

integrated transport planning that comprehensively takes into account the multi-modalism

of transport infrastructure and operations. Such mechanisms must establish a transport

planning framework that integrates infrastructure modes across both freight and passenger

transport, integrates the transport system with other sectors, fosters integrated transport

planning across and within the three spheres of government using shared data and

information.

b) Transport investments are demand responsive to national growth strategies and are based

on a coordinated implementation schedule.

Universal Accessible Transport


a) The Draft White Paper on the Rights of Persons with Disabilities, 2015 should be finalised.

b) A continuous accessible path of travel should be provided for persons with disabilities to

connect to public transport with places such as social services and accessible housing.

c) All transport-related licenses and permits for all modes of transport should include

universal access and design requirements.

29

d) The undertaking of Transport Access audits should be made compulsory as part of the

Integrated Transport Plan process.

e) All public and private transport operators should conduct audits of existing infrastructure,

fleet composition and operations against legislated minimum norms and standards. A

costed plan must be developed to implement the outcomes of the audit, for which budget

is set aside to implement.

Rural Transport


a) Rural Transport Infrastructure (RTI) should include all transport-related infrastructure,

ranging from proclaimed district or feeder roads, to village-level roads and non-motorised

infrastructure such as tracks, trails, paths and footbridges, most of which are often not

proclaimed or registered.

b) Rural Transport Services (RTS) should include services provided by operators of all

modes of motorised and non-motorised transport and private users (e.g. head loading,

private vehicular transport).

c) Integrated Public Transport Networks (IPTN) should relate to the provision of improved

accessibility and mobility by integrating public transport services between modes. Rural

IPTNs should also aim to promote integration of transport infrastructure among modes.

Economic Regulation and the role of the State in Transport


a) The implementation of the Single Transport Economic Regulator (STER) should be

supported in order to ensure an efficient and cost-effective transport system supporting

economic growth and meeting the social goals of reducing poverty, unemployment and

inequality.

b) The STER should be independent of the DoT (for as long as the DoT is a shareholder in

the SOCs of PRASA, ACSA and ATNS) and consists of a substantive technical,

adjudicatory and investigative authority, as well as a separate and dedicated appeal

mechanism, the Transport Economic Council (TEC).

c) The STER regulation indicates common principles across all transport modes, with

objective, evidence-based justification required in instances of differential treatment.

d) Principles should be established around the role of the State vs. the private sector, and

these should be applied to all transport modes. For example:

i. The State should be the supplier of last resort i.e. when the private sector cannot

reasonably be expected to provide the infrastructure/service;

ii. Reduce the fiscal burden to the State and crowd in private sector investment;

iii. Maximise private sector participation in the provision of transport services;

iv. Stimulate competition in the market, wherever possible e.g. intermodal

competition, spatial competition, contestability;

v. Create competition for the market, wherever possible e.g. tendering, competitive

contracting, Demsetz competition - where in the latter two cases, the rights to

30

serve the market are re-auctioned at appropriate intervals to incentivise the

provision of a high-quality service and control over cost increases;

vi. Institute economic regulation only when necessary i.e. when there are aspects of

natural monopoly or time-bound operating concessions;

vii. Secure cost-reflective tariffs, in the case of natural monopolies;

viii. Ensure that subsidies are targeted, transparent and preferably output-based;

ix. Retain State ownership in the instance of public goods, with indirect pricing or

taxation;

x. Permit public sector investment/participation in transport infrastructure and

services that are traditionally capable of direct cost recovery from users, but due to

socio-economic considerations are not able to do so, only when positive

externalities are clearly identified, followed by a cost-benefit analysis that

objectively demonstrate that the socio-economic benefits exceed the costs.

xi. Assure non-discriminatory access to transport infrastructure/ networks;

xii. Separate public enterprise management from government policy functions.

Environmentally Sustainable Transport


a) Fuel efficiency measures should be promoted and the use of fuel-efficient modes of

transport, including BRT systems and trains (where practical) in urban areas should be

adopted.

b) New long-distance transportation infrastructure should be planned (e.g. long-distance

trains) with lower energy intensity than road transport, provided that the proposed

interventions meet the minimum distance threshold for the proposed transport

infrastructure to be cost-effective and to compete with other forms of transport.

c) The measures identified in the Transportation Energy Reduction Strategy and in the Green

Transport Strategy should be implemented.

d) Less polluting and lower impact modes of transportation should be prioritised in the design

of transportation systems in urban areas;

e) Land use planning processes should emphasise compact urban form (reduce urban

sprawl) to reduce habitat destruction and loss of agricultural and recreational lands around

urban areas.

f) Land use planning processes ensure that the development of mixed use developments are

encouraged in order to provide places of work close to home and the designation of high

density development areas along transport corridors to make public transport feasible.

g) The negative impact on wildlife should be reduced, when design, construction or operation

of inter-city transportation systems and infrastructure, including highways, pipelines, and

railways.

h) The environmental impact and sustainability of airports should be emphasised, especially

since overall network planning currently does not take into account minimising

environmental impacts.

31

Non-Motorised Transport


a) The NMT should be integrated into the formal transport system through transport and

spatial planning.

b) NMT modes should be endorsed and the use thereof facilitated.

c) Infrastructure and maintenance standards should be developed and should recognise

NMT as an essential mode of transport

d) Traffic legislation should be developed, recognising NMT as an alternative mode of

transport including as a feeder to other modes of transport.

e) Marginalised groups should be empowered including the promotion of Small Medium and

Micro Enterprises through NMT.

f) Adequate and sustainable funding for the promotion and development of NMT should be

made available.

g) Measures should be developed and implemented in order to reduce the number of traffic

fatalities of vulnerable non-motorised road users.

Transport Data and Research


a) A protocol and system should be established for data collection and sharing, where

transport-related stakeholders (government, government-funded entities or government-

owned entities) are obligated to participate.

b) Data collection should be designed to monitor progress against measurable targets and

performance indicators, which are based on transport policy objectives, where such

indicators are primarily user-focused.

c) The national DoT should re-establish a meaningful research budget and financially

supports non-governmental “centres of excellence”, in order to stimulate transport sector

innovations.

32

4. APPENDIX

Department of Transport to supply a list of organisations/government entities represented at

the workshops on 21/22 May 2015 and 5 November 2015.

The list of stakeholders that were contacted for “one-on-one interviews” are as follows, roughly

grouped by mode/theme:

PUBLIC TRANSPORT AND GENERAL TRANSPORTATION

Category Individual Institution Status

Metropolitan/

local

government

Ms Melissa

Whitehead Transport for Cape Town

Initial email contact was

followed-up by

additional email

correspondence. Still

awaiting confirmation of

availability.

Ms Lisa Seftel and

Ms Daisy Dwango

City of Johannesburg Metropolitan,

Department of Transport Planning Meeting took place

Ms Yolisa

Mashilwane

Ekurhuleni metro, Department of

Transport

Referred to Relebohile

Mokoqo. Meeting was

cancelled by

interviewee

Mr Logan Moodley eThekwini Municipality, Transport

Planning Department


followed-up by

additional email

correspondence. Still

awaiting confirmation of

availability.

Mr Sibulele Dyodo SALGA Meeting took place

Provincial

government

Mr Sbusiso Gumbi Department of Transport: KZN


attempted. Follow-up

telephonic contact was

attempted. No

response.

Mr Ismail Vadi Department of Roads and

Transport: Gauteng Meeting took place

Ms Jacqui Gooch Department of Transport and Public

Works : Western Province Meeting took place

National

government

Ms Samantha

Naidu National Treasury

Referred to Michael

Kihato. Meeting

cancelled by

interviewee. Follow-up

received no response.

Ms Marissa Moore National Treasury Meeting took place

Mr Andries Carl

Nel COGTA

Acknowledged:

Awaiting feedback

33


Industry

Associations

Prof Jackie

Walters (UJ public transport / SABOA) Meeting took place

Mrs. Maphefo

Anno-Frempong

Transport Education and Training

Authority (TETA)

Meeting was cancelled

by interviewee.

Academics Prof Callie

Schoeman

NWU Academia (land use and

transport) No response

ROADS


DOT entities

Ms Thato Mosena Road Traffic Management

Corporation (RTMC) No Response

Nazir Alli South African National Roads

Agency (SANRAL) SOC Limited No Response

Other

government

Mr Msondezi

Futshane Roads Coordinating Body (RCB) No Response

Research

bodies Benoit Verhaeghe

Council for Scientific and Industrial

Research (CSIR)

Referred to Mathetha

Mkonyama. No

Response

MARITIME


DoT entities

Mr Collins Makhado South African Maritime Safety

Authority (SAMSA) Meeting took place

Mr Mahesh Fakir The Ports Regulator of South Africa Meeting took place

DPE entities Mr Pieter Smit

Transnet National Ports Authority

(TNPA)

Referred to Nico

Walters. Meeting took

place

Mr Elvin Harris Transnet Port Terminals (TPT) No Response

34

CIVIL AVIATION


DOT entities

Mr Riaan Myburgh South African Civil Aviation

Authority (SACAA) Meeting took place

Mr Bongani Maseka Airports Company South Africa

(ACSA) No Response

Air Traffic and Navigation services

(ATNS) No Response

Industry

bodies

Mr Chris

Zweigenthal

Airline Association of Southern

Africa (AASA) Meeting took place

Ms Carla Da Silva Board of Airline Representatives of

South Africa (BARSA) Meeting took place

RAIL


DoT entities Mr Nathi Khena

Passenger Rail Association of

South Africa (PRASA) No Response

Rail Safety Regulator (RSR) No Response

Provincial

agency

Mr. Jack van der

Merwe/ Ms Ingrid

Jensen

Gautrain Management Agency No Response

DPE entities Mr Elvin Harris Transnet Freight Rail No Response

Documents

Phase II Recommendations DRAFT - Amazon Web …surveygizmolibrary.s3.amazonaws.com/library/166736/Draft... · Phase II Recommendations Report DRAFT 23 December 2015 Prepared by Genesis