1. Estimates of National Expenditure
Department of Transport
Portfolio Committee
Strategic Plan and
Estimates of National Expenditure
2005/06 to 2007/08
4 March 2005

2. Content of presentation
Department of Transport
Content of presentation
Strategic Plan
Estimates of National Expenditure
Medium Term Budgets

3. Strategic Plan Context Key functions Mandate and Aim Key challenges
Department of Transport
Strategic Plan
Context
Key functions
Mandate and Aim
Key challenges
Key performance measures
Strategic imperatives
Key deliverables
New structure

4. Department of Transport
Context
(drivers of growth)
Transport is a key enabler of social and economic growth and development
Investment in our people
Investment in our physical infrastructure
Enhanced industrial capacity
Role of Transport:
Skills development and training
Establishment of strategic transport links (lower cost of production, shorter trade links, enhanced mobility and tourism)

5. Department of Transport
Context
(Continued)
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

6. Key functions Policy and Strategy Formulation: Substantive Regulation
Department of Transport
Key functions
Policy and Strategy Formulation:
The Department of Transport (DOT) is responsible for developing transport policy and providing transport infrastructure to support Government’s broader socio-economic objectives
Substantive Regulation
Leading implementation in other spheres of Government
Monitoring implementation by Transport Public Entities and other spheres of Government:
The DOT has delegated its service provision responsibility, as well as its regulatory responsibility to a number of public entities.

7. Mandate and Aim Mandate: Aim:
Department of Transport
Mandate and Aim
Mandate:
To facilitate the provision of an affordable, safe and sustainable transport system; which is responsive to the needs of transport users.
Aim:
The aim of the Department of Transport is to establish a national transport system that enables national, provincial and local provision of efficient, affordable and fully integrated infrastructure and services that best meet the needs of transport users and promote economic and social development while being environmentally and economically sustainable.

8. Key challenges An efficient public transport system:
Department of Transport
Key challenges
An efficient public transport system:
Reorganisation and review of the subsidy system
Service levels and infrastructure requirements supportive to public transport - including renewal of rail rolling stock
Unblocking freight flows:
Speedy and seamless movement of goods
Improving the levels of investment in the freight logistics systems to sustain the required levels of service - including investment in ports
The need to increase investment in transport infrastructure across all modes.
The need to establish a stronger regulatory regime and to strengthen oversight over transport public entities
Improved support of regional transport integration under the NEPAD framework
Road and rail safety

9. Key performance measures
Department of Transport
Key performance measures
Competitive transportation costs
The development of targeted infrastructure together with appropriate regulation will ensure that various modes of transport can be competitive and can provide an optimal modal mix for transportation in South Africa. Currently, certain commodities are transported by road, while being more suited to rail transport, because of inefficiencies in the rail system
Safety improvements
Safety improvements across all modes of transport will improve transport efficiencies while reducing the cost of externalities
Reduce infrastructure backlog
Backlogs in road and rail infrastructure needs to be addressed to create sustainable infrastructure as well as to improve safety on these modes of transport

10. Key performance measures
Department of Transport
Key performance measures
(Continued)
Improved access
Access to and the affordability of particularly public transport is essential to facilitate access to economic opportunities and social inclusion
Reduce time to transit
The reduction in transit times in particularly the freight logistics system will both reduce costs and facilitate a migration to more appropriate modes of transport for the commodities that are transported

11. Strategic imperatives
Department of Transport
Strategic imperatives
Lead the process to eliminate significant bottlenecks and costs in Freight Logistics
Develop and pilot appropriate Public Transport models for the rural and urban poor
Lead and accelerate the process to improve Land Transport Safety
Overhaul the capacity of the Department to execute on the agreed strategy

12. Key deliverables Freight Logistics (Competitive movement of goods)
Department of Transport
Key deliverables
Freight Logistics (Competitive movement of goods)
National Freight Logistics Strategy
Corridor Development
Backlog on infrastructure funding (rail and roads)
Strategic Road network / Road infrastructure strategic framework
Branch line strategy
Freight line upgrade
Border posts
Maritime Strategy
Ports Regulator and National Ports Authority
Regional integration
Overloading control

13. Key deliverables (Continued) Public Transport service provision
Department of Transport
Key deliverables
(Continued)
Public Transport service provision
National Travel Survey
Local transport plans
Simplifying the planning process
Supporting local authorities
Improving public transport services
Public transport infrastructure
Safety promotion
Transformation of public transport subsidies
Taxi recapitalisation
Institutional arrangements of passenger rail services

14. Key deliverables (Continued) Land transport safety
Department of Transport
Key deliverables
(Continued)
Land transport safety
Road to Safety strategy
Rail safety and security – Railway Safety Regulator
Operationalise the Road Traffic Management Corporation
Implementation of the Administrative Adjudication of Road Traffic Offences Act

15. Department of Transport
Other key priorities
Migration to new NaTIS system and creation of a Trading Entity for NaTIS (National Traffic Information System)
Road Accident Fund (Satchwell Report)
Transport Planning (Integrated Transport Plans)
Aviation and Maritime policy review
Rural roads
Intergovernmental relations
An effective regulatory framework for transport public entities
King Shaka airport / Dube tradeport
Expanded Public Works Programme
Developing a broad based BEE strategy
Economic regulation across all modes

16. Estimates of National Expenditure
Department of Transport
Estimates of National Expenditure
Programme purpose and key functions
Strategic overview and key policy developments
Programme outputs and budgets

17. Transport Policy and Regional Integration
Department of Transport
Transport Policy and Regional Integration
Purpose: Develop strategic, outcome-focused and innovative policies; monitor the outcomes and impacts of policies; provide economic advice, analysis and intelligence across all transport modes; manage a national innovative research and development programme for all modes; and lead the regional and international transport integration activities in partnership with other African countries and the rest of the world.
Key functions:
Develop policies and co-ordinate integrated inter modal policies;
Monitor the outcome, effectiveness and impact of policies on the performance of the transport system;
Provide a research and information support service;
Generate economic analysis capability;
Facilitate support for regional integration and NEPAD programmes, provide leadership to the Department and the transport sector with regard to international relations, and build and maintain strategic relations between South Africa and the rest of the world.

18. Transport Regulation and Public Entity Oversight
Department of Transport
Transport Regulation and Public Entity Oversight
Purpose: Create an enabling environment for regulating all transport modes, and develop appropriate mandates and monitoring mechanisms for public entities reporting to the Minister of Transport.
Key functions:
Strengthen the regulatory and public entity oversight capacity within the Department;
Develop an effective performance monitoring framework and put in place effective measures to ensure legal compliance;
Improve the current regulatory regimes;
Consolidation of all regulators in the medium to long-term;
Effective economic, safety, security and environmental regulation of the maritime, aviation, rail and road transport sectors;
Strengthen the Department’s capacity with respect to road, rail, aviation and maritime transport regulation;
Provide a search and rescue service in the event of air or maritime related disasters .

19. Integrated Planning and Inter- sphere Coordination
Department of Transport
Integrated Planning and Inter- sphere Coordination
Purpose: Provide leadership in transport planning and in the provision of transport infrastructure that supports equitable economic, social and regional development in line with national strategic objectives.
Key functions:
Develop a national strategic transport infrastructure framework for all modes of transport;
Develop and implement an integrated infrastructure investment plan;
Develop transport planning requirements, guidelines and standards for alignment of transport plans with other sector plans;
Facilitate the establishment of institutional structures;
Develop and roll-out capacity development programmes for transport planning focussing on local authorities;
Implementation of the National Land Transport Transition Act and other land transport legislation and policies;
Develop and facilitate an inter sphere strategic implementation framework for national programmes.

20. Freight Logistics and Corridor Development
Department of Transport
Freight Logistics and Corridor Development
Purpose: Develop and implement an integrated freight logistics strategy for South Africa and the Southern African region.
Key functions:
To unlock the bottlenecks within the Freight Logistics System thus providing customers with a more cost efficient inter-modal transport system.
Develop an effective overall supply chain model to increase the efficiency of the freight logistics system.
Corridor Implementation Units shall map selected corridors and develop a range of implementation projects that are based on seed funding by the DOT as well as the active involvement of the DOT in infrastructure planning and integration, in order to raise the efficiency of these transport corridors and integrating secondary and tertiary corridors into a seamless logistics system that is targeted at supporting the geographic expansion of economic activity in the country.

21. Department of Transport
Public Transport
Purpose: Develop practices and norms that will increase access to appropriate and quality public transport to meet the socio-economic needs of both rural and urban passengers.
Key functions:
Develop a public transport strategy that will ensure the provision of a safe, reliable, affordable and accessible public transport system in the country;
Develop a more equitable system of funding public transport to ensure affordability of public transport, with a particular emphasis on the poor;
Pilot public transport delivery models;
Manage the taxi recapitalisation programme;
Manage the passenger rail integration process;
Drive programmes aimed at improving the provision of public transport infrastructure;
Manage service provision of public transport through regulating competition amongst service providers.

22. Strategic overview and key policy developments
Department of Transport
Strategic overview and key policy developments
Overarching objectives
The sustainable and efficient movement of people and goods, enabling economic growth, social inclusion, poverty alleviation and the efficient and cost-effective movement of goods
Public Transport
The chief objectives for a sustainable public transport system are to improve the public transport system, broaden access to affordable transport, and stimulate economic activities
Key challenges include:
Transforming the minibus taxi industry through the taxi recapitalisation project
Investing in passenger rail infrastructure and restructuring passenger rail services
Appropriately targeting public transport subsidies
Freight
The freight logistics strategy will be developed to inform investment in infrastructure and to identify operational improvements to eliminate bottlenecks in the freight logistics system

23. Strategic overview and key policy developments (continued)
Department of Transport
Strategic overview and key policy developments (continued)
Transport infrastructure (road and rail)
The Department will ensure that road development planning and investment is conducted in a strategic and integrated manner through the road infrastructure strategic framework and the roads coordinating body
A number of strategic rail branch lines will be revitalised in partnership with Provinces
Transport Regulation
Continued implementation of the Road to Safety Strategy
The regulation of security will be introduced and security strategies will be promoted across all modes of transport
The Department plans to expand economic regulation across the transport sector
Job creation and BEE
Promoting infrastructure investment will include a strong focus on job creation and labour intensive construction methods through:
The road infrastructure strategic framework
National overload control strategy
Rural transport development strategy

24. Outputs: Administration
Department of Transport
Outputs: Administration
Sub Programme
Output
R Million
2005/06
Minister
Ministerial duties
0,8
Management
(Ministry, Office of Director-General, Communications, Internal Audit, )
Conduct overall management of the Department
54,0
Corporate Support Services
Human Resources; Information Technology; Procurement; Finance; Legal; Capacity Development; Government Motor Transport
Sound Human Resource management
Sound Procurement and Financial management
Information Technology systems in place
Effective Legal services
Cost effective management of Government’s motor fleet
Capacity Development projects
65,7
Total
120,5

25. Outputs: Transport Policy and Regional Integration
Department of Transport
Outputs: Transport Policy and Regional Integration
Sub Programme
Output
R Million
2005/06
Transport Policy and Impact Monitoring
White Paper on National Maritime Transport Policy
New aviation policy and Aviation Bill
13,2
Transport Economic Analysis
Economic performance indicators framework
Baseline studies on the competitiveness of transport systems domestically
4,9
Regional and International Integration
Transport infrastructure network joint venture projects
Regional spatial development initiatives in support of NEPAD and South Africa's foreign policy
4,4
Administration Support
Administration: projects, contracts and budgets
4,3
Total
26,8

26. Outputs: Transport Regulation and Public Entity Oversight
Department of Transport
Outputs: Transport Regulation and Public Entity Oversight
Sub Programme
Output
R Million
2005/06
Land Transport Regulation
Establish National Accident Bureau
Annual road traffic offence surveys
National traffic information system (e-NaTIS)
176,2
Civil Aviation Transport Regulation
Air transport liberalisation in Africa
Ratification and implementation of International conventions and protocols
14,0
Maritime Transport Regulation
Safety and security at sea, protection from pollution and marine search and rescue capability
Maritime Industry development and promotion
17,3
Public Entity Oversight
Service level agreements for public entities
Financial and risk management and internal control systems for public entities
104,4
Administration Support
Administration: projects, contracts and budgets
5,0
Total
316,9

27. Outputs: Integrated Planning and Inter-Sphere Coordination
Department of Transport
Outputs: Integrated Planning and Inter-Sphere Coordination
Sub Programme
Output
R Million
2005/06
Transport Planning
Transport services and infrastructure based on approved local transport plans
Implementation of the National Land Transport Transition Act
24,3
Integrated Delivery Programme
Improved public transport facilities
Promotion of non-motorised transport
18,1
Integrated Infrastructure and Network Development
Road infrastructure strategic framework
National overload control strategy
1 786,2
Administration Support
Administration: projects, contracts and budgets
4,7
Total
1 833,3

28. Outputs: Freight Logistics and Corridor Development
Department of Transport
Outputs: Freight Logistics and Corridor Development
Sub Programme
Output
R Million
2005/06
National Logistics Strategy
National freight logistics strategy and scenarios for 2014
7,8
Eastern and Western Corridors
Corridor mapping
Corridor optimisation strategies
9,3
Administration Support
Administration: projects, contracts and budgets
1,9
Total
19,0

29. Outputs: Public Transport
Department of Transport
Outputs: Public Transport
Sub Programme
Output
R Million
2005/06
Public Transport Strategy and Projects
Public transport strategy and implementation plan
Pilot strategic public transport Projects
4,1
Public Transport Subsidy Management
Restructured bus operations
Safer and more sustainable taxi services
Restructured and safer commuter rail service
Restructured and consolidated passenger rail services
5 277,1
Administration Support
Administration: projects, contracts and budgets
4,4
Total
5 285,6

30. Medium Term Budgets Overview of medium term budget (allocations)
Department of Transport
Medium Term Budgets
Overview of medium term budget (allocations)
Expenditure trends
Budgets per programme
Breakdown of budgets

31. Recent allocation history
Department of Transport
Recent allocation history
MTEF Cycle
Details
R’ /04
R’ /05
R’ /06
R’000
2006/07
2007/08
2003:
Bus
Baseline adjusted
Rail ^
Rolling stock
Inflation & Other
85 144
Baselines adjusted by
2004:
Roads
Arrive Alive
50 000
Other
7 872
7 905
7 927
NaTIS (once-off) -

32. Additional allocations in 2005 MTEF(included in budgets)
Department of Transport
Additional allocations in 2005 MTEF(included in budgets)
Details
R’000
2005/06
2006/07
2007/08
Taxi recapitalisation
Passenger Rail infrastructure
Roads infrastructure
Public transport policy
10 000
Overload Control Unit
15 000
Freight Logistics
5 000
Public Entity Oversight
6 000
8 000
VAT adjustments – SANRAL and SARCC
Total

33. Expenditure trends Details R’000 Actual 2001/02 2002/03 2003/04 Budget
Department of Transport
Expenditure trends
Details
R’000
Actual
2001/02
2002/03
2003/04
Budget
2004/05
2005/06
2006/07
2007/08
Rail
1,856,415
2,227,419
2,360,148
2,498,550
2,718,056
2,981,140
3,275,197
Bus
1,714,796
1,846,724
2,068,500
2,172,740
2,278,523
2,415,235
2,535,997
Roads
1,067,612
1,203,064
1,290,556
1,440,789
1,752,720
1,897,075
2,491,929
Taxi
8,097
6,497
9,898
13,184
260,600
326,236
331,798
Other
290,008
426,321
494,228
643,908
592,260
623,542
630,168
Total
4,936,928
5,710,025
6,223,330
6,769,171
7,602,159
8,243,228
9,265,089
Growth
20.43%
15.66%
8.99%
8.77%
12.31%
8.43%
12.40%

34. Expenditure trends: Growth patterns
Department of Transport
Expenditure trends: Growth patterns
Other: Initial strong growth flattening over medium term
Taxi: Major introduction from 2005/06
Roads: Consistent strong growth pattern, particularly in 2007/08
Bus: Initial strong growth flattening over medium term
Rail: Consistent growth

35. Expenditure trends: Relative Growth
Department of Transport
Expenditure trends: Relative Growth
Other: relatively stable over the period
Taxi: Major introduction with effect from 2005/06
Roads: Relative higher growth over the period
Bus: Relative decline over the period
Rail: Slight relative decline over the period

36. Expenditure trends: Relative Growth
Department of Transport
Expenditure trends: Relative Growth
Other: relatively stable over the period
Roads: Relative increase over the period
Public Transport (PT – Bus, Rail and Taxi): Relative
decline despite additional allocations for passenger rail
infrastructure and taxi recapitalisation

37. Budgets per Programme (2005/06)
Department of Transport
Budgets per Programme (2005/06)
Admini-
stration
R 120,5m
1,58%
Transport
Policy and
Regional
Integration
R 26,8m
0,35%
Regulation
and Public
Entity
Oversight
R 316,9m
4,17%
0,25%
Freight
Logistics
and Corridor
Development
R 19,0m
Integrated
Planning
and Inter-
sphere
Coordination
R 1833,3m
24,12%
Roads
23,06%
Public
R 5285,6m
69,53%
Rail
35,75%
Bus
29,97%
Taxi 3,43%
Public Transport (rail, bus, taxi)
and Road infrastructure = R 7009,9m (92,21%)
Other = R 592,3m ( 7,79%)
Total R 7602,2m

38. Budgets excluding Public Transport and Roads (2005/06)
Department of Transport
Budgets excluding Public Transport and Roads (2005/06)
Details
R million %
Compensation of Employees
111,3
1.46%
Road Traffic Management Corporation (incl. NaTIS R 56,261m)
93,6
1.23%
Arrive Alive
50,0
0.66%
Oil Pollution prevention services
38,4
0.51%
Watch Keeping services (Search and Rescue)
23,6
0.31%
RSR, SAMSA, SACAA, NSRI and Memberships
42,9
0.56%
Special Investigating Unit
16,6
0.22%
Administration
74,3
0.98%
Transport Policy and Regional Integration
12,8
0.17%
Transport Regulation and Public Entity Oversight
33,8
0.44%
Integrated Planning and Inter Sphere Coordination
63,1
0.83%
Freight Logistics and Corridor Development
12,6
Public Transport
19,3
0.25%
Total
592,3
7,79%

39. Budgets excluding Public Transport and Roads (2005/06)
Department of Transport
Budgets excluding Public Transport and Roads (2005/06)
1,46%
1,23%
0,66%
0,51%
0,31%
0,56%
0,22%
0,98%
0,17%
0,44%
0,83%
0,25%
Personnel
RTMC
Arrive Alive
Oil Pollution
Watchkeeping
Agencies
SIU
Administration
TPRI
TRPEO
IPIC
FLCD PT
R 592,3m
R 19,3m
R 12,6m
R 63,1m
R 33,8m
R 12,8m
R 74,3m
R 16,6m
R 42,9m
R 23,6m
R 38,4m
R 50,0m
R 93,6m
R 111,3m
Total

40. Flagship Projects informed by Strategic planning
Department of Transport
Flagship Projects informed by Strategic planning
Aviation and Maritime Policies
Restructuring the Road Accident Fund
Migration to new NaTIS
Establishment of Rail Economic Regulator
Restructuring of Airports Company of South Africa Limited
Establishment of Ports Economic Regulator
National Transport Plan
Integrated Rural Mobility Access project
Freight Logistics Strategy
Dube Trade Port
Branch Rail Line Strategy
Passenger Rail Integration
Public Transport review

41. Department of Transport
Thank you

42. Abbreviations Department of Transport DOT Department of Transport
NEPAD
New Partnership for African Development
BEE
Black Economic Empowerment
NaTIS
National Traffic Information System
VAT
Value Added Tax
SANRAL
South African National Roads Agency Limited
SARCC
South African Rail Commuter Corporation Limited
RSR
Railway Safety Regulator
SAMSA
South African Maritime Safety Authority
SACAA
South African Civil Aviation Authority
NSRI
National Sea Rescue Institute
RTMC
Road Traffic Management Corporation
SIU
Special Investigating Unit
TPRI
Transport Policy and Regional Integration
TRPEO
Transport Regulation and Public Entity Oversight
IPIC
Integrated Planning and Inter-sphere Coordination
FLCD
Freight Logistics and Corridor Development PT
Public Transport