REFOCUSING FOR DELIVERY

Repositioning transportas a driver of economic growth

Ms Wrenelle Stander

Director General, Department of Transport

26 May 2004

Department of

Transport

Department of

Transport

Consultation

The strategic team has consulted with and taken on

board the comments where necessary of:

• Senior Management

• Deputy Directors

• All other staff

Obtained approval from:

• Minister of Transport

Department of

Transport

Situation (1)

• The Department of Transport (DOT) is responsible fordeveloping transport policy and providing transport

infrastructure to support Government’s broader socio-economic objectives

• 492 posts of which 321 are filled

• The DOT has delegated its service provision responsibility, as well as its regulatory responsibility to a number of public entities.

Department of

Transport

Public entitiesDepartment of

Transport

PARLIAMENT (Transport Portfolio Committee)

DPE

MINISTER OF TRANSPORT

NATIONAL DEPARTMENT OF TRANSPORT

TRANSNET

SARCC

SANRAL

ACSA

ATNS

RAF

CBRTA

SACAA

SAMSA

Ports Economic Regulator

NPA

Railway Safety Regulator

Int Air Services Committee

Air Services Licencing Council

Regulatory Committee

RTMC

AARTO

REGULATORS

SERVICE PROVIDERS

MINISTER OF PUBLIC ENTERPRISES

Situation (2)

• The 2004/2005 budget is 6.8bn

• Subsidies: • R2.2bn buses (Provinces),

• R2.5bn rail (SARCC),

• R1.44bn roads (SANRA)

• Transfers: R583m

• DOT “discretionary”: R149m

Department of

Transport

Challenges

• Implementation of policies and initiatives has not been as effective as we would like

• Departmental capacity stretched

• Complicated organisation structure- Responsibility for strategic areas fragmented

• Many projects no clear strategic focus

• Lack of emphasis and capacity within DOT in key areas: Logistics,

Agency oversight, Regulation: Rail, Aviation, Maritime, Transport

security

• Weak internal administrative support systems: contract management,

risk management, IT

Department of

Transport

Questions

• How can DOT execute key initiatives successfully and

effectively?

• Could the DOT organisation be refocused to support

successful policy implementation?

Department of

Transport

Options for Change

• Initiate a process to realign levers for delivery

• Build measures and enforcement process to get provinces and public entities to perform

• Cut back on policy writing and refocus on key 3-4 initiatives

• Strategically align and urgently build capacity within the Department of Transport

Department of

Transport

Mission

Lead the development of transport by creating a framework of

sustainable policies, regulations and implementable models to

support government strategies for economic, social and

international development

Department of

Transport

DOT ValuesDepartment of

Transport

Continue Start Stop

• Communication

• Knowledge-sharing

• Think and act as one team and one goal

• Take responsibility

• Best practice sharing

• Improve communication

• Take ownership

• Clarify roles and responsibility

• Be constructive

• Back to basics

• Improve data quality

• Silo thinking

• Finger-pointing

• Passing on responsibility

• Duplicate tasks

• Fire-fighting

• Highlighting problems, not solutions

• Endless discussions

• Procrastination

Critical success factors for deliveryDepartment of

Transport

CLEAR POLITICAL LEADERSHIP

EFFECTIVEINTER-SPHERE

IMPLEMENTATION

LEVERS

CLIENTS

DOT CAPACITY ROLE

AGENCIES

COMMUNICATION!COMMUNICATION!

Context

The DOT strategies will as far as possible be implemented to support government priorities regarding:

• Economic growth

• Poverty alleviation

• Job creation: expanded public works programme

• Rural development

• Black economic empowerment

• Gender equity

• Access for people with disabilities

• Technical innovation

Department of

Transport

Performance Measures

1. Competitive costs

2. Safety improvement

3. Reduce infrastructure backlog

4. Improved access

5. Reduce time to transit

Department of

Transport

Strategic Imperatives

Three year imperatives:

1. Lead the process to eliminate significant bottlenecks and costs in Freight logistics

2. Facilitate the improvement of the delivery of public transport services to the rural and urban poor

3. Lead and accelerate the process to improve land transport safety

4. Overhaul the capacity of DOT to execute on the agreed strategy

Department of

Transport

1. Freight Logistics and Development Corridors(1)

• Develop 2014 scenario for logistics• Economic modelling• Freight Survey (2014)

• Accelerate completion of an inter-governmental integrated strategy with stakeholders for Cabinet approval • November 2004• Strategy development in progress

Department of

Transport

1. Freight Logistics and Development Corridors (2)

• Target a critical corridor to test the strategy model (for example Gauteng-KZN)• Develop action plan for pilot• Motivate infrastructure investment plan to Cabinet• Implement

• Codify results and replicate model to other corridors

• Review of marginal railway lines: pilot for example the kei Project - Umtata-AmaBele/East London

Department of

Transport

Addressing the land freight bottleneck

Potential cargo/ commodity/ product/ goods throughput of the SA economy

Reduction in through- put due to road in-efficiency

Reduction in through put due to rail in-efficiency

Reduction in through put due to port in-efficiency

Enhance supply chain efficiency

Enhance supply chain efficiency

Ports represent the most severe backlog to international trade, as there is no alternative to export/import. The bottleneck is particularly acute at the Port of Durban and, more particularly, at the container terminal. This bottleneck is expected to cost the SA economy in the region of 0.43% of GDP.

The rail delivery bottleneck is less severe. For most high-value commodities, road provides an alternative (although more costly). A bottleneck does exist for lower value break-bulk or bulk where road is not a feasible alternative and where there are rolling stock shortages.

Road inefficiencies are low but externalities remain high, particularly in an environment where road carries goods more suited to rail transport.

2. Public Transport (1)

• Facilitate the improvement of the provision of public transport services through:

• a better understanding of user needs and the realignment of public transport services: analysis of the National Transport Survey, as well as

the establishment of a Public Transport Task Team);

• the initiation and codification of suitable rural and urban public transport implementation models;

• Pilot for design of non motorised transport in rural areas

• Appropriate institutional arrangements for delivery including the integration of Metrorail, ShosholozaMeyl

• Public Transport infrastructure investment plan

• Increasing safety: infrastructure upgrades: taxi restructuring, competitive tendering in bus industry, as well as upgrades in rail infrastructure; enforcement: see land transport safety; institutional reform: see land transport safety; reduce fraud and corruption: see land transport safety

Department of

Transport

2. Public Transport (2)

• Review and assess the whole public transport sector, including a revision of subsidy investment

• September 04

• Internal transport forum to consider the transport requirements for the Soccer World Cup 2010 already established, which we will extend to a multi stakeholder forum

Department of

Transport

3. Land Transport Safety (1)

• Coordinate road traffic management functions- RTMC implementation to be fast tracked under the leadership of

its Chief Executive Officer

• Relocate road traffic offences away from the courts and introduce the points penalty system

• Enhance the national traffic information system- Resolve NATIS / e-NATIS migration- Resolve funding issues – Trading Account- RTMC

Department of

Transport

3. Land Transport Safety (2)

• Reduce fraud and corruption and efficiency in vehicle licensing inspection (40% of stations owned by state)- Periodic inspection regulations for older vehicles

- Evaluate Loveday model and revise- Build implementation capacity across nation- Roll out to those areas where 80% of fraud and corruption

takes place

Department of

Transport

3. Land Transport Safety (3)

• Improve enforcement- Complete feasibility study for National Highway Patrol

- Develop and implement strategy for vehicle overloading on national highways

- RTMC

• Review Arrive Alive strategy and enhance for 2004/05- December 03 (2.3% improvement over December 02)

- April 04 (15% improvement over April 03)

- Co-responsibility

Department of

Transport

3. Land Transport Safety (4)

• Develop implementation plan for restructuring the Road Accident Fund- Inter-departmental Committee has resumed its work

- Expert committee to be appointed – advert closed

• Accelerate the implementation of the railway safety regulator

Department of

Transport

4. Enhancing the Capacity of DOT (1)

• Align the organisation model around the strategy• Alignment complete, implement new structure

• Identify and fill competency gaps • Correct appointments, on-the-job training, secondments, contract appointments

• Develop decision matrices to accelerate delivery

• Build technical capacity in the following areas:• Logistics

• Agency oversight

• Regulatory capacity: rail, aviation, sea

• Communication

• Analysis: Scenario planning and economic analysis

Department of

Transport

4. Enhancing the Capacity of DOT (2)

• Develop Leadership: leadership development programme

• Build a more effective performance management culture

• Develop staff and create a satisfying and happy workplace

• Develop and recruit African women to occupy senior positions in the organisation

• Develop effective partnerships with other institutions to create leverage

• Develop effective partnerships to build the capacity of the DOT

Department of

Transport

5. Regulation (1)

• Economic Regulation

• Develop an economic regulatory framework to support the development of an effective delivery system for logistics and public transport: transport economic regulator

• Establish economic regulatory capacity within the DOT

• Oversee existing economic regulators: Regulating Committee, ASLC, IASC,

• Safety Regulation • Oversee existing safety regulators: SACAA, SAMSA, RSR, RTMC

• Legislation, institutional capacity, good corporate governance

•

Department of

Transport

5. Regulation (2)

Security oversight

• Aviation Security Plan,

• ISPS Code (Maritime Security)

• Develop a response to transport security

Search and Rescue

• Facilitate the provision of a Search and Rescue service for Southern Africa – launch of MRCC June 04

Accident and Incident Investigation

• Investigate the feasibility of establishing a transport accident and incident investigation unit – responsibility currently lies with safety regulators – referee and player

Department of

Transport

6. Policy and Planning (1)

• Analysis and Policy development

• Strategic leadership

• ITS, Research and Innovation

• Transport Roundtable: September / October 04

• Analytical and research support to strategic flagship initiatives: Logistics and Public Transport

• Policy development

• Aviation Policy Review (October 04)

• Maritime Policy (March 05)

• Custodian of all DOT data

• Databases

Department of

Transport

6. Policy and Planning (2)

• Transport planning and Coordination

• Input into development of infrastructure investment plans:

public transport and logistics

• Implement the NLTTA,

• Co-ordinate and drive DOT interdepartmental inputs: EPWP and MITT

• Co-ordinate all DOT interactions with other spheres of government

• Provide secretariat support to COTO and MINMEC

Department of

Transport

6. Policy and Planning(3)

• Impact and Process Monitoring:

Monitor the extent to which transport policies have

• improved or weakened the transport system

• given adequate guidance and direction to provinces and public

entities

• contributed to improved efficiency, cost, travel times and delays

• contributed to other government strategic initiatives: EPWP,

BEE, poverty alleviation etc

Department of

Transport

7. Governance and oversight of public entities

• Public entity oversight

• confirm and clearly define the role of the minister and department in relation to transport agencies

• expand the range of current regulating monitoring instruments

• expand monitoring to include impact reporting

• redefining DOT’s role and expanding capacity

• defining concurrency between the transport economic regulators and the competition commission

Department of

Transport

8. Regional Transport Integration

• Increase South Africa’s participation on international

transport fora

• Co-ordinate the implementation of the SADC Protocol

• Co-ordinate South Africa’s transport contribution to the NEPAD implementation programme

• Co-ordinate South Africa’s transport contribution to the India South Africa Brazil implementation programme

• Co-ordinate South Africa’s transport contribution to strengthening South –South relationships

•

Department of

Transport

Department

of Transport Budget Breakdown 2004/05

R million 2004/2005 budget

Rail 2 528

Bus 2 158

Roads 1 441

NATiS 109

Maritime Safety 74

Arrive Alive 55

Urban Transport Fund 44

NLTTA / Transport Planning 30

Other transfers (Transport agencies, taxi, capacity development, memberships)

67

Total of all other expenditure 253

Total 6 759

Percentages

37,4

31,9

21,3

1,6

1,1

0,8

0,7

0,4

1,0

3,8

100,0

96,3%

Other 3,8%

Other Transfers 1,0%Transport Planning 0,4%Urban Transport Fund 0,7%

Arrive Alive 0,8%

Maritime Safety 1,1%

NaTIS 1,6%

Department

of Transport

Rail 37,4%

Bus 31,9%Roads 21,3%

Other 9,4%

Budget Breakdown 2004/05

Department

of Transport Breakdown Other Transfers 2004/05

10%

16%

22%

9%

10%

6%

1%

6%

5%

15%

Capacity Dev.

RTMC

RSR

SACAA

SAMSA

MRCC

NSRI

Memberships

Non-motorised

Taxi process

Department

of Transport Breakdown All Other Expenditure 2004/05

Research & Dev. R 7,5m

Ports Authority R 7,5m

Safety Promotions& Education R 11,3m

Policy Development R 18,2m

Inspectorates R 22,6m

Discretionary R 86,3m

Personnel R 99,6m

Thank youDepartment

of Transport