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

2. 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

3. 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

4. Breakdown of Budget up to Quarter 2%
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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Expenditure on Transfer Payments
Major Transfer Payments 13

14. 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

15. Expenditure on Transfer Payments (Continued)
Other Transfer Payments 15

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

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

27. 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

28. 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.

29. 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 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).

30. 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

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

32. 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.

33. 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

34. 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

35. 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.

36. 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.

37. 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

38. 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

39. 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

40. Thank you 40