Cross-Border Road Transport Agency The Parliamentary Portfolio Committee on Transport 20 April 2010 1

Presentation Outline 1. Introduction 2. Legislative Mandate 3. Implementation of Strategic Plan 3.1 Priorities for 2010/11 3.2 Resources (Capacity) Constraints 3.3 Budget Implications 4. FIFA 2010 Plans 4.1 Assumptions and Statistical information 4.2 Law Enforcement 4.3 Regulatory Administration 5. Support by the Shareholder 6. Conclusion 2

1. Introduction Preamble to improve the unimpeded flow by road of freight and passengers in the region; to liberalise market access progressively in respect of cross- border freight road transport; to introduce regulated competition in respect of cross-border passenger road transport; to reduce operational constraints for the cross-border road transport industry as a whole; to enhance and strengthen the capacity of the public sector in support of its strategic planning, enabling and monitoring functions; to empower the cross-border road transport industry to maximise business opportunities and to regulate themselves incrementally to improve safety, security, reliability, quality and efficiency of services. 3

2. Legislative Mandate “To provide for co-operative and coordinated provision of ADVICE, REGULATION, FACILITATION and LAW ENFORCEMENT in respect of cross-border road transport by the public and private sectors; …Cross-Border Road Transport Act, 1998 (Act No. 4 of 1998).” 4

3. Implementation of Strategic Plans 3. 1 Priorities for 2010/11 Administration ( Compliance and Governance) Increase tariffs for permit income Change management, transformation and conflict management program Performance Management Systems for whole organisation Implemented monitoring and reporting procedures and protocols based on Government objectives Clean Audit Operation include regulations and compliance ( ERM, SCM, Archives Act, NT, etc). 5

3. Implementation of Strategic Plans 3. 1 Priorities for 2010/11 (Cont Formalise all operations by developing Operational Manuals and create financial models for each function which will allow the agency to fund its mandate. Furnish the Minister and other C-BRTA Stakeholders with timeous and relevant advice, information and intelligence concerning SADC cross border road transport. Conduct feasibility on the law enforcement function and regulatory function in order to provide an accessible service to all commercially viable border posts. Establish representative offices at SADC and SACU and regional offices within SADC to improve on CBRTA’s impact, presence and relevancy within SADC. 6

Implementation of Strategic Plans 3. 1 Priorities for 2010/11 (Cont.) Source suitable cross border road transport partners within the SADC Private and Public Sectors to co-fund, magnify and multiply C-BRTA’s impact, presence and relevancy within SADC. Execute research and gather information to improve on information on business opportunities, community development, crime, job creation, law enforcement, poverty alleviation, road conditions, trade activities and traffic flow within SADC. Facilitate the conclusion of the outstanding bilateral agreements with Angola, Democratic Republic of Congo and Tanzania. Establish advocacy and consultative forums with key Stakeholders and SADC Counterparts. 7

3. Implementation of Strategic Plan 3.2 Resources Constraints Funding Model for C-BRTA Agency has been self funding entity however only it can cover is operational expenditure not capital expenditure While self- funding key challenges Tariffs has not increase annually to cover such costs since 2004 Penalties not consistent and also at discretional Magistrate Courts Law enforcement function add financial strain on the Agency finances in ability to generate revenues that cover its costs. 8

3. Implementation of Strategic Plan 3.2 Resources Constraints Human Capital Due to an absence of leadership, staff development, performance management and career development was not implemented, as a result the Agency lacks critical skills; High turnover at senior management level to provide stability; Lack of performance management systems including senior management; Large number of outstanding industrial relations and labour law cases that increase the risk of contingency liabilities not being recognised. 9

3. Implementation of Strategic Plan 3 3. Implementation of Strategic Plan 3.2 Resources /Capacity Constraints Resources and Tools The status on tools of work are basically obsolete as confirmed on our financial statements, the accounting policies useful lives was extended on assets as follows: Computer equipment (9 years) Furniture and fittings (12 years) Office equipment (12 years). 10

3. Implementation of Strategic Plan 3.2 Resources Constraints Resources and Tools Visibility of inspectors, i.e. uniform and branded vehicles; No dedicated roadside checkpoints at border posts and on major corridors; Lack of capacity on major corridors and border posts; Inadequate facilities at terminals and ranks to cater for increased number of passengers; 11

3. Implementation of Strategic Plan 3.2 Budget Implications Expenditure per Economic Classification 2010/11 % Repres Current payments 72,509 Compensation of employees 38,201 50% Goods and services 33,268 43% Depreciation/Amortisation 1,040 1%   Payment for Capital Assets 4,618 Computers and Office Furniture 6% Total 77,127 100% 12

3. Implementation of Strategic Plan 3.2 Budget Implications Revenue Collection per programme 2010/11 % Repres Permit and application Income 47,200 61% Fines, penalties and forfeits 17,760 23% Interest 950 1% Sundry Income 1,100 Accumulation of surplus 10,117 13% Total receipts 77,127 100% The above revenue is based on tariffs increase of 2004. 13

4. FIFA 2010 Plans DoT estimates close to 400 000 international visitors, 300 000 intercontinental and 100 000 African visitors; African visitors to travel mostly by road; Permits currently issued: 31 849 for passenger vehicles and more than 74 970 for freight vehicles across different cross-border routes. In addition to the estimates, the above vehicles currently on the routes and corridors would also be on the roads during the 2010 Soccer period. Increased traffic flows along major national, inter-provincial and inter-city arterial corridors. 14

4. FIFA 2010 Plans Taxi Passengers Historical Permit Statistics Information COUNTRY 2008/2009 2009/2010 PERCENTAGE Botswana 495 584 18% Lesotho 1 688 3 336 98% Malawi 5 17 240% Mozambique 3 052 5 195 70% Namibia 33 32 -3% Swaziland 485 484 0% Zambia 3 10 233% Zimbabwe 1 046 2 118 102% Total 6 807 11 766 73% 15

4. FIFA 2010 Plans Freight Historical Permit Statistics Information COUNTRY 2008/2009 2009/2010 PERCENTAGE Botswana 11 517 11 355 -1% DRC 19 3 835 20084% Lesotho 5 554 6 263 13% Malawi 1 445 1 599 11% Mozambique 7 685 8 810 15% Namibia 8 699 8 928 3% Swaziland 8 259 8 904 8% Zambia 13 913 9 870 -29% Zimbabwe 12 195 12 317 1% Cabotage 1 982 3 089 56% Total 71 268 74 970 5% B

4. FIFA 2010 Plans Buses Historical Permit Statistics Information COUNTRY 2008/2009 2009/2010 PERCENTAGE Botswana 859 992 15% Lesotho 2 995 3 958 32% Malawi 506 328 -35% Mozambique 5 088 6612 30% Namibia 190 201 6% Swaziland 924 943 2% Zambia 288 227 -21% Zimbabwe 3 145 4 267 36% Total 7 188 17 528 144% B

4. FIFA 2010 Plans Regional Tourist Historical Permit Statistics Information COUNTRY 2008/2009 2008/2010 PERCENTAGE Regional 2 989 2 555 14% B

4. FIFA 2010 Plans 4.2 Law Enforcement Inspectorate has six regional offices across the country: Bloemfontein/Durban Belville/Upington; Kempton Park; Musina/Mokopane Nelspruit; and Zeerust. Staff complement of 74 inspectors and 5 Chief Transport Inspectors. 19

4. FIFA 2010 Plans Priority Ports and Deployment for Law Enforcement COUNTRY PORTS INSPECTORS Botswana Groblersbridge Kopfontein Ramatlbama Skilpadshek 20 inspectors Namibia Vioolsdrif Nakop 3 inspectors Lesotho Maseru 10 inspectors Mozambique Lebombo 13 inspectors Swaziland Oshoek Jeppes Reef Mahamba Golela 8 inspectors Zimbabwe Beitbridge 24 inspectors.

4. FIFA 2010 Plans 4.2 Law Enforcement High visibility enforcement patrols; Roadside check points; Multi-disciplinary roadblocks; Assist in overload control management; Assist in Accident Management; and Escort duties at ports of entry 21

4. FIFA 2010 Plans 4.2 Law Enforcement – Joint Operations Stakeholders Road Traffic Management Corporation; Provincial Traffic Authorities; Metro Traffic Authorities; Municipal Traffic Authorities; South African Police Services; and SADC Member States – law enforcement authorities. 22

4. FIFA 2010 Plans 4.2 Law Enforcement – Operational Key Challenges The roadworthiness of public transport vehicles could become a problem (how to deal with passengers left stranded if vehicle is not allowed to continue with trip); Resting facilities along major routes into South Africa are already inadequate for operators and passengers which would make the situation even more critical during 2010. 23

4. FIFA 2010 Plans 4. 3 Regulatory Function Extended operational hours for issuance of permits.  Disseminate permit and border operational information to stakeholders; Permit information to be made available on website; and Dedicated 2010 FIFA Helpdesk. 24

Support by Shareholder Governance Matters Filling of vacancies on the Board which allow the Board to have adequate subcommittees to run effectively. Speedily process of Board rotation. Operational Matters Approval of increase in permit tariffs; Approval of financial grant to fund law enforcement function Normalization of cross-border passenger transport between RSA and Lesotho; Closing of all illegal ranking facilities located at border posts; Support in facilitating the conclusion of bilateral agreements with Angola, Democratic Republic of Congo and Tanzania. 25

Website: www.cbrta.co.za Thank You Telephone: + 27 12 362 1864 Facsimile: + 27 12 362 1882 Website: www.cbrta.co.za 26