Department of Transport Portfolio Committee on Transport Second Quarter Expenditure 2013/14 11 February 2014 1

Contents Expenditure to 30 September 2013: Phasing of Budgets Breakdown of Budget to Quarter 2 Expenditure per Programme Expenditure per Standard Item Under / (Over) Expenditure Transfer Payments Conditional Grants - Provinces Conditional Grants - Municipalities Abbreviations 2

Phasing of Budgets Standard Item Phasing applied Compensation of Employees Linearly throughout the year Goods And Services Linearly throughout the year adjusted for specific projects where applicable Machinery And Equipment Transfer Payments: Departmental Agencies & Accounts SANRAL: Paid per month; RSR paid in advance for the year; Other public entities are paid quarterly in advance, and the payment to the Transport SETA is not yet due Households Non Profit Institutions Search and Rescue organisations: Phased according to planned payments. SANTACO: Phased linearly throughout the year Provincial & Local Governments Payment schedules agreed to by the recipients and National Treasury Public Corporations & Private Enterprises Payment schedule is amended on a monthly basis for the capital portion Universities & Technicons Phased according to planned payments. 3

Breakdown of Budget up to Quarter 2 % 1 000 000 2 000 000 3 000 000 4 000 000 5 000 000 6 000 000 7 000 000 8 000 000 9 000 000 Provincial & Local Governments 8 219 779 43.4% Departmental Agencies & Accounts 5 414 555 28.6% Public Corporations 4 600 829 24.3% Goods and Services 257 268 1.4% Households 247 055 1.3% Compensation of Employees 172 268 0.9% Other 24 738 0.1% Total 18 936 492 100.0% 4

Expenditure to Quarter 2 Expenditure per Programme Programme R'000 Expenditure to Quarter 2 Budget to Quarter 2 Under Spent Administration 136 339 165 543 29 204 Integrated Transport Planning 32 769 34 569 1 800 Rail Transport 4 657 604 4 660 666 3 062 Road Transport 10 070 115 10 081 233 11 118 Civil Aviation 49 884 69 250 19 366 Maritime Transport 44 561 49 654 5 093 Public Transport 3 701 684 3 875 577 173 893 Total 18 692 956 18 936 492 243 536 5

Expenditure to Quarter 2 Under Spent / (Over Spent) Expenditure per Standard Item Standard Item R'000 Expenditure to Quarter 2 Budget to Quarter 2 Under Spent / (Over Spent) Compensation of Employees 147 303 172 268 24 965 Goods and Services 205 257 257 268 52 011 Machinery and Equipment 5 191 5 712  521 Buildings and Fixed Structures 8 197  0 (8 197) Thefts and Losses  3 ( 3) Transfers: Provincial & Local Governments 8194 779 8219 779 25 000 Public Corporations 4600 829 Departmental Agencies & Accounts 5414 748 5414 555 ( 193) Households 103 181 247 055 143 874 Non Profit Institutions 3 646 8 828 5 182 Universities 1 922 International Organisations 7 900 8 276  376 Total 18692 956 18936 492 243 536 6

Under / (Over) Expenditure to Quarter 2 Main under / (over) expenditure R’ Millions Compensation of Employees - vacant posts could not be filled. 25.0 Goods and Services - late invoicing and delay in planned projects. 52.0 Transfers to Households - slow rate of taxis being scrapped. 143.9 Transfers to Non Profit Institutions - payments were withheld from SANTACO. 5.2 Transfers to Provincial and Local Government - a payment from the Public Transport Network Operations Grant was withheld from Nelson Mandela Bay for consistent under expenditure. The Department spent R8.2 million on a construction project, for which there was no budget at the end of September, although rollovers were already approved, which would be voted in the Adjusted Budget during October / November 2013. (8.2) Other net under expenditure 0.6 Total 243.5 7

Under / (Over) Expenditure: Goods and Services Details R’ Millions Programme 1: Administration: 23.4 Communications under spent due to late planning 5.3 Human Resources under spent on recruitment advertising, which is expected to increase. 1.4 Legal Services under spent against expected legal costs 0.6 Security Services spent less than expected to date Expenditure for the transaction advisor for new PPP Fleet Services was delayed 0.7 Office Accommodation was under spent due to late invoicing 7.9 Under spent on development of RAF legislation and restructuring 1.3 International Relations spent less than expected to date 1.8 The Ministry spent less than expected to date 3.3 Other net under expenditure 0.4 8

Under / (Over) Expenditure: Goods and Services (Continued) Details R’ Millions Programme 2: Integrated Transport Planning: 0.7 Projects were delayed (Feasibility study on rail manufacturing, Energy Consumption Framework, Transport Sector Economic Regulator) and operational costs was over spent Programme 3: Rail Transport: 0.3 Late invoicing for the feasibility study on the Moloto Corridor Programme 4: Road Transport 1.3 Delays in starting the Decade of Action for Road Safety campaign and with regional, multilateral and bilateral coordination Programme 5: Civil Aviation: 26.9 Late invoicing for Watchkeeping Services 25.5 Under expenditure on operational costs, mainly traveling 1.0 Delays with developing the National Airports Development Plan 0.4 9

Under / (Over) Expenditure: Goods and Services (Continued) Details R’ Millions Programme 6: Maritime Transport: 2.4 Under expenditure on operational costs, mainly traveling 1.7 Delays with projects, including a business case for patrol vessels, salvage vessels and developing a ship clearance system 0.7 Programme 7: Public Transport: (2.9) A number of projects were delayed, and the Taxi Scrapping Administrator was paid for equipment replacement and refurbishment Total 52.0 10

Goods and Services: Amounts spent on projects Amounts spent on Projects by line functions R’000 Integrated Transport Planning Cross Border Optimization Plan 1,070 Durban Free State Gauteng Corridor 1,895 Road Freight Strategy 499 National Transport Planning Forum and Database 1,254 Energy Consumption Framework 151 Bee Charter Council 1,085 National Household Travel Survey Project Support 1,445 Study On Global Competitiveness 65 Transport Sector Economic Regulator 1,923 Rail Transport Service Level Agreement For Institutional Reform 1,133 Rail Policy And Act 403 Feasibility Study Rail Manufacturing In South Africa 1,261 Rail Industry Development 5 11

Goods and Services: Amounts spent on projects Amounts spent on Projects by line functions (Continued) R’000 Road Transport Investigate Driving Licence & Road Worthy Certificates 4,192 Devolvement Of Road Engineering Standards 175 Programme Development For S'Hamba Sonke 15,877 Civil Aviation Regulating Committee 1,866 Establish Appeals Committee 114 Maritime Transport Oil Pollution Prevention 21,378 Public Transport National Land Transport Act 290 Assist Provinces to implement Public Transport 2,311 Taxi Scrapping Administrator 58,309 Study on alternatives to regulate Public Transport 208 Taxi Recapitalisation 2020 583 Total 117,492 12

Expenditure on Transfer Payments Major Transfer Payments 13

Expenditure on Transfer Payments (Continued) Major Transfer Payments ExpenditureR'000 % of Total S.A. National Roads Agency (SANRAL) 5 248 590 28.6% Provincial Roads Maintenance 4 630 889 25.3% Passenger Rail Agency of S.A. (PRASA) 4 600 829 25.1% Public Transport Operations 2 357 082 12.9% Public Transport Infrastructure & Network 1 154 603 6.3% Other 232 567 1.3% Taxi Recapitalisation 102 445 0.6% Total 18 327 005 100.0% 14

Expenditure on Transfer Payments (Continued) Other Transfer Payments 15

Expenditure on Transfer Payments (Continued) Other Transfer Payments (Departmental Agencies highlighted) Expenditure R'000 % of Other Transfers Road Traffic Management Corporation 83 473 35.9% Rural Road Asset Management 52 205 22.4% Railway Safety Regulator 46 513 20.0% Road Traffic Infringements Agency 12 500 5.4% S.A. Civil Aviation Authority 9 078 3.9% Ports Regulator of South Africa 7 950 3.4% International Organisations 7 900 Non Profit Institutions 3 646 1.6% Maritime Rescue Co-ordination Centre 3 442 1.5% S.A. Maritime Safety Authority 3 202 1.4% Universities & Technicons 1 922 0.8% Households 736 0.3% Total 232 567 100.0% 16

Details of Transfer Payments up to Quarter 2 Transfer Payments (R'000) Expenditure Budget for the Quarter Under / (over) spent % Spent Conditional Grants – Paid per Payment Schedules according to Division of Revenue Act: Provincial Roads Maintenance 4 630 889 100.0% Public Transport Operations 2 357 082 Public Transport Infrastructure and Systems 1 036 241 1 061 241 25 000 97.6% Public Transport Network Operations 118 362 Rural Road Asset Management 52 205 Public Corporations - Payment schedules are revised each month according to capital expenditure: Passenger Rail Agency of S.A. 4 600 829 Departmental Agencies & Accounts – Normally paid quarterly in advance: S.A. National Roads Agency 5 248 590 Road Traffic Management Corporation 83 473 Railway Safety Regulator 46 513 Road Traffic Infringements Agency 12 500 S.A. Civil Aviation Authority 9 078 Ports Regulator of South Africa 7 950 Maritime Rescue Co-ordination Centre 3 442 3 249 (193) 105.9% S.A. Maritime Safety Authority 3 202 17

Details of Transfer Payments up to Quarter 2 (Continued) Transfer Payments (R'000) Expenditure Budget for the Quarter Under / (Over) spent % Spent Other Taxi scrapping – Paid as taxis are scrapped 102 445 246 979 144 534 41.5% Non Profit Institutions: SANTACO: Paid quarterly Others: Paid for the year when Annual Reports are submitted 3 646 8 828 5 182 41.3% Universities & Technicons – Paid in tranches according to the academic year 1 922 100.0% International Organisations – Paid when membership fees are levied 7 900 8 276 376 95.5% Leave pay and donations – Paid when the event occurs 736 76 (660) 968.4% Total 18 327 005 18 501 244 174 239 99.1% 18

Conditional Grants: Provincial Roads Maintenance Grant Province R’000 Transferred Spent by Province % Spent Eastern Cape 662 704 325 726 49.2% Free State 388 087 380 590 98.1% Gauteng 239 227 220 796 92.3% Kwazulu Natal 943 914 861 373 91.3% Limpopo 572 344 145 013 25.3% Mpumalanga 818 248 536 141 65.5% Northern Cape 346 763 369 330 106.5% North West 355 599 308 065 86.6% Western Cape 304 003 159 312 52.4% Total 4 630 889 3 306 346 71.4% 19

Conditional Grants: Provincial Roads Maintenance Grant % Spent: 49.2% 98.1% 92.3% 91.3% 25.3% 65.5% 106.5% 86.6% 52.4% 20

Conditional Grants: Public Transport Operations Grant Province R’000 Transferred Spent by Province % Spent Eastern Cape 95 796 100.0% Free State 100 964 100 143 99.2% Gauteng 898 160 859 299 95.7% Kwazulu Natal 441 547 455 223 103.1% Limpopo 135 897 138 980 102.3% Mpumalanga 237 354 225 067 94.8% Northern Cape 20 333 19 338 95.1% North West 42 125 37 268 88.5% Western Cape 384 906 329 218 85.5% Total 2 357 082 2 260 332 95.9% 21

Conditional Grants: Public Transport Operations Grant % Spent: R’000 100.0% 99.2% 95.7% 103.1% 102.3% 94.8% 95.1% 88.5% 85.5% 22

Conditional Grants: Public Transport Infrastructure Grant and Network Operations Grant Municipality R’000 Transferred Spent by Municipality % Spent EC: Buffalo City 10 000 40 0.4% EC: Nelson Mandela Bay 295 968 0.0% FS: Mangaung 5 000 11 345 226.9% GT: Ekurhuleni Metro 25 000 13 780 55.1% GT: Johannesburg 228 362 717 579 314.2% GT: Tshwane 150 000 569 398 379.6% KZN: Ethekwini 170 000 118 723 69.8% KZN: Msunduzi 28 670 114.7% LP: Polokwane 36 025 144.1% MP: Mbombela 30 000 58 742 195.8% NW: Rustenburg 200 000 258 283 129.1% WC: Cape Town 246 241 524 259 212.9% WC: George 40 000 266 0.7% Total 1 154 603 2 633 078 228.1% 23

Conditional Grants: Rural Road Asset Management Grant Municipality R’000 Transferred Spent by Municipality % Spent EC: Alfred Nzo 1 795 393 21.9% EC: Amatole 2 347 1 712 72.9% EC: Cacadu 1 902 169 8.9% EC: Chris Hani 2 589 1 649 63.7% EC: Joe Gqabi 1 778 1 102 62.0% EC: OR Tambo 2 290 203 FS: Xhariep 1 269 183 14.4% KZN: Amajuba 1 706 1 250 73.3% KZN: Ilembe 1 807 1 239 68.6% KZN: Sisonke 1 814 860 47.4% KZN: Ugu 2 089 1 067 51.1% KZN: Umgungundlovu 2 018 1 411 69.9% KZN: Umkhanyakude 2 101 75 3.6% KZN: Umzinyathi 1 966 1 027 52.2% 24

Conditional Grants: Rural Road Asset Management Grant (Continued) Municipality R’000 Transferred Spent by Municipality % Spent KZN: Uthukela 1 999 1 963 98.2% KZN: Uthungulu 1 746 1 107 63.4% KZN: Zululand 1 866 1 082 58.0% LP: Capricorn 1 880 2 676 142.3% LP: Greater Sekhukhune 1 781 717 40.3% LP: Mopani 1 726 1 521 88.1% LP: Vhembe 1 667 0.0% LP: Waterberg 1 571 236 15.0% MP: Ehlanzeni 1 710 227 13.3% MP: Gert Sibande 1 822 MP: Nkangala 1 602 NC: John Taolo Gaetswewe 1 465 NW: Dr Ruth Segomotsi Mompati 1 914 318 16.6% NW: Ngaka Modiri Molema 1 985 Total 52 205 22 187 42.5% 25

Integrated Transport Planning PERFOMANCE Apr - Sep 2013 (Q2) Integrated Transport Planning Rail Transport Road Transport Civil Aviation Maritime Transport Public Transport 26

INTEGRATED TRANSPORT PLANNING Approval of NATMAP 2050 NATMAP presented to Cabinet Committee (11 Sept 2013). Resolved that NATMAP be further reviewed in consultation with PICC through inter-Ministerial Committee. Establishment of STER First draft Position Paper on STER produced after extensive consultations with sector role players and ANC Economic Transformation Committee Women Empowerment SANWIT National Executive meeting held (August 2013) and preparations are underway to launch Women Awards

INTEGRATED TRANSPORT PLANNING Study on the Status of Regional Infrastructure in SA Project completed and final report to be completed. An approved rural accessibility / multi-deprivation index Rural accessibility framework completed and pilot process initiated. KSD Municipality Integrated Rural Transport Plan Plan adopted by mayoral infrastructure committee and mayoral council Mthatha Bridge completed and Viegiesville Interchange under way.

RAIL TRANSPORT Rail Rolling Stock Acquisition 159 coaches completed at end of Q2. Coaches are only handed over when they complete a train set. Continuous engagement between DoT, PRASA and NT to discuss funding options. The introduction of world class passenger trains will bring safety and comfort to commuters and the programme will create over 33 000 direct and indirect jobs over the next 10 years. Station Improvement and Upgrade Programme Site establishment and approval of detailed designs for the Gauteng Train Control Nerve Centre completed. The Greenview – Pienaarspoort Rail Extension project in progress with construction of stations and perways. The Bridge City Rail Extension project approaching completion (98%) with commissioning scheduled for October 2013. 134 stations will be modernised, upgraded and branded, in preparation for the new rolling stock, over the medium term (2014 – 2020).

RAIL TRANSPORT Moloto Development Corridor A feasibility study conducted has recommended that a railway line be constructed. The political Oversight committee has endorsed the establishment of a Project Implementation Management Office (PIMO) The successful implementation of this project will minimise fatalities on the Moloto Road as well as alleviate high traffic volumes. National Rail Transport Policy Consultations on the Green Paper have been completed and submission drafted for gazetting the Green Paper for public comments

ROAD TRANSPORT S’hamba Sonke Programme Driving License Cards As at end of Q1: 216 033 square metres of surfaced roads were resealed; 167 km of gravel roads were re-gravelled; 38 723 square metres of blacktop were patched; 15 678 km of roads were bladed; and 3334 full time equivalents (FTEs) were created. Driving License Cards 1 201 510 license cards manufactured and delivered to provinces in the period under review;

ROAD TRANSPORT Road Safety Road Infrastructure Framework developed Microdot technology in motor vehicles implemented – microdot standards developed and finalised. Draft regulations on the implementation of periodic motor vehicle testing published for comments. Regulation of the Driving School industry – consultations with driving schools.

CIVIL AVIATION Airlift Strategy National Airports Development Plan Draft Airlift document finalised and ready for further engagements with stakeholders National Airports Development Plan Consultations with agencies and provinces were conducted however, extensive research and consultations still required

CIVIL AVIATION Aviation Safety and Security Safety regulations updated and approved by the Minister 1st draft of the SACAA Act Amendment (statutory framework for implementation of aviation safety audits) being consulted between the Dot and SACAA legal units One-Stop Aviation Security System – Negotiations with stakeholders continuing to establish the system

MARITIME TRANSPORT Amendment of National Ports Act Salvage Strategy Process awaiting study on ports efficiencies and benchmarking of cost of doing business at SA ports (study conducted by Ports Regulator and update in November 2013); Salvage Strategy Process of development of strategy underway.

MARITIME TRANSPORT Maritime Safety and Security Five (5) commercial ports facilities audited in the period under review. Three (3) outstanding ports to be audited before financial year end. Djibouti Code of Conduct – draft national framework being developed for implementation of the code of conduct. National maritime Security Interventions being developed.

PUBLIC TRANSPORT Integrated Public Transport Networks Ekurhuleni: Plans completed and commenced with preliminary designs Msunduzi: operational plan and preliminary designs completed Polokwane: project launched and technical design plans under way Mbombela: Planning in progress Mangaung: Operational planning team appointed George: Vehicle procurement adjudication underway, Urban bus stop construction commenced, full branding almost completed Nelson Mandela Bay: Pilot services in operation Cape Town (MyCiTi): Phase 1 launched Johannesburg (Rea Vaya): City to commence with operations of Phase 1B

PUBLIC TRANSPORT NLTA Amendment Bill Taxi Recapitalisation Programme Consultations completed and Bill submitted to State Law Advisor for preliminary approval Taxi Recapitalisation Programme 1 181 vehicles scrapped during the period under review Empowerment of Small Business Operators (SBOs) Cooperative Model for SBOs being developed

Abbreviations Abbreviation Meaning PRASA Passenger Rail Agency of South Africa Ltd. SANRAL South African National Roads Agency SOC Ltd. RAF Road Accident Fund SANTACO South African National Taxi Association PPP Public – Private Partnership EC Eastern Cape Province FS Free State Province GT Gauteng Province KZN Kwazulu Natal Province LP Limpopo Province MP Mpumalanga Province NC Northern Cape Province NW North West Province WC Western Cape Province 39

Thank you 40