1. Portfolio Committee on Transport 9 th March 2005 SANRAL 2005/2006 BUDGET DOCS_NRA-#174695

2. 2 NAMIBIA BOTSWANA ZIMBABWE MOZAMBIQUE SWAZI- LAND LESOTHO National Roads – NonToll – 8 340km National Roads – Toll – 2 540km (10 880) Strategic Network – 7 480km (18 360) Primary Network – 18 000km (36 360) Other Surfaced Roads – ±30 000km (±66 360)

3. 3 NATIONAL ROAD NETWORK Description Non TollState TollBOTTotal Dual Carriageway 7653363971498 4-Lane Undivided 0130256386 2-Lane Single 75797986198996 Total 83441264127310880

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6. 6 PAVEMENT DESIGN PHILOSOPHY Good Fair Poor Very Poor Maintenance Actions No Maintenance Moisture Ingress (Typically Designed for Traffic Expected over 20 Years)

7. 7 COST OF MAINTENANCE DELAY Repair Cost = R 0,1mill / km Good Fair Poor Very Poor 3-5 Years Repair Cost = R 0,6mill / km 5-8 Years Repair Cost = R 1,8mill / km (Ratio 1:6) Ratio 1:18

8. 8 VEHICLES OPERATING COSTS u Up to 90 % of Total Transportation Costs u Vehicle Operating Costs (Fuel, Tires, etc) u Standard Vehicles (i.e. HDM-4 √ ) u Congestion (i.e. HDM-4 √ ) u Accident Costs u Value of Time (Congestion) u And Then !!!

9. IMPACT OF MAINTENANCE DELAY ON ROAD USER COST (2004R) GoodPoor Articulated Truck Passenger Car Very Poor ConditionPoor Condition Good Condition More than 100 % Increase in Road User Costs

10. SANRAL BUDGETING PROCEDURE Visual Instrumental Data CBA Priority List PMS RDME RUE Bridge Inspections BMS BDME RUE CBA Priority List Traffic Super Project List Budget Optimisation Eastern SouthernNorthernWestern Programming Pavement Management SystemBridge Management System

11. 11 OPTIMISATION FUNCTION Minimization of Total Transportation Costs (High Traffic)

12. 12 PRINCIPLE KEY OBJECTIVES u The management of a primary road network ensuring best value for money. u Continuously improving the efficiency of business practices. u Maintain market confidence. u Carry out Governments targeted programmes to better the life of all citizens. u Safe roads for all. u To work in partnership with road users, transport providers relevant authorities and the private sector.

13. 13 PRINCIPLE KEY OBJECTIVES …Cont. u To be a good employer managing the SANRAL’s business efficiently and effectively and seeking a continuous improvement. u Achieving international best practices. u Encouraging innovation in knowledge and practice. u Research, discover and excel. u Marketing of our solutions to road users.

14. 14 PERFORMANCE INDICATORS Road Network SMOOTH TRAVEL EXPOSURE (STE) u Purpose: To monitor whether roads are providing acceptable travel conditions. u Target: 95% of travel on less than 4,2m/km roughness.

15. 15 PERFORMANCE INDICATORS Road Network …Cont. LOW RUT EXPOSURE (LRE) u Purpose: To monitor whether roads are providing acceptable travel conditions. u Target: 95% of travel on less than 20mm rut depth.

16. 16 PERFORMANCE INDICATORS Road Network …Cont. HIGH TEXTURE EXPOSURE (HTE) u Purpose: To monitor whether roads are providing acceptable travel conditions. u Target: 95% of travel on higher than 0,4 mm texture.

17. 17 PERFORMANCE INDICATORS Road Network …Cont. BRIDGE CONDITION EXPOSURE (BCE) u Purpose: To monitor whether bridges are providing acceptable travel conditions. u Target: 90% of travel over and under bridges with OCI higher than 80.

18. 18 PERFORMANCE INDICATORS Financial RETURN ON CONSTRUCTION EXPENDITURE (ACE) u Purpose: To monitor the predicted economic benefits to the community from SANRAL capital programmes. u Target: IRR > 15%.

19. 19 PERFORMANCE INDICATORS Financial …Cont. EXPENDITURE EFFICIENCY INDEX (EEI) u Purpose: To monitor the efficiency of the SANRAL. u Target: ≤ 5%

20. 20 PERFORMANCE INDICATORS Financial …Cont. PRIVATE SECTOR INVESTMENT INDEX (PSII) u Purpose: To monitor the attraction of private sector investment. u Target: 0,85

21. 21 OUTCOMES AREAOUTCOMES Tourism/ Long Distance i. Road institutional policy and capacity management ii. Cost structure of public transport operators Ruraliii. Long term road investment sustainability

22. 22 OUTCOMES …Cont. AREAOUTCOMES Urbaniv. Attractive public transport system by making road public transport “friendly” v. High system cost public transport Freightvi. Seamless movement vii. Inter-modal systems Safety and Environment viii. Safe roads ix. Reduce incidents Capacityx.Address basic skills gap

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26. 26 MTEF Budget Request vs Allocation Non-Toll

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34. 34 TOLL : SUMMARY

35. 35 TOLL : OPERATING EXPENDITURE

36. 36 TOLL: CAPITAL EXPENDITURE

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38. 38 PRIVATE SECTOR INVESTMENT Maputo Development CorridorR3,0 billion TRAC N3: Heidelberg to CedaraR3,5 billion N3TC Platinum HighwayR3,2 billion Bakwena

39. 39 ANNUAL EXPENDITURE (R million - 2004) DESCRIPTIONTRACN3TCBAKWENA TOTAL Plaza Operations & Maintenance 44,623,333,9101,8 Routine Road Maintenance 45,627,331,6104,5 Repairs & Rehabilitation 85,574,25,1164,8

40. 40 POTENTIAL EMPLOYMENT LabourR364, 31 million Person Hours40 390 000 Equivalent Jobs20 200 Managerial800 SMMEsR192 million

41. 41 EMPOWERMENT HISTORICAL Value of Works R2 682 365 046 Value of Works to Black owned companies R 564 756 210 Value of Works to SMMEs R 630 605 158 Empowerment percentage 44,6% Nov 2002 to August 2004

42. Thank You DOCS_NRA-#174695