Department of Transport

1

Portfolio Committee on Transport

Second Quarter Expenditure 2013/14

11 February 2014

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Contents

Expenditure to 30 September 2013:

Under / (Over) Expenditure

Transfer Payments

Expenditure per Programme

Expenditure per Standard Item

Conditional Grants - Provinces

Conditional Grants - Municipalities

Phasing of Budgets

Breakdown of Budget to Quarter 2

Abbreviations2

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 Linearly throughout the year

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 Linearly throughout the year

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

0

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

R’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%

R’000 %

4

5

Expenditure per Programme

Programme R'000 R'000 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

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6

Expenditure per Standard Item

Standard Item R'000 R'000 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  0 ( 3)

Transfers:

Provincial & Local Governments 8194 779 8219 779 25 000

Public Corporations 4600 829 4600 829  0

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 1 922  0

International Organisations 7 900 8 276  376

Total 18692 956 18936 492 243 5366

7

Under / (Over) Expenditure to Quarter 2Main 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.

25.0

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 243.57

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Under / (Over) Expenditure: Goods and ServicesDetails 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 0.6

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

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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

0.7

Programme 3: Rail Transport: 0.3

Late invoicing for the feasibility study on the Moloto Corridor 0.3

Programme 4: Road Transport 1.3

Delays in starting the Decade of Action for Road Safety campaign and with regional, multilateral and bilateral coordination

1.3

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

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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

(2.9)

Total 52.0

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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

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

Goods and Services: Amounts spent on projects

12

Expenditure on Transfer Payments

13

0

1000000

2000000

3000000

4000000

5000000

6000000

S.A. National RoadsAgency (SANRAL)

Provincial RoadsMaintenance

Passenger Rail Agency ofS.A. (PRASA)

Public TransportOperations

Public TransportInfrastructure & Network

Other

Taxi Recapitalisation

Major Transfer PaymentsR’000

13

Expenditure on Transfer Payments (Continued)

14

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%

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Expenditure on Transfer Payments (Continued)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Road Traffic Management Corporation

Rural Road Asset Management

Railway Safety Regulator

Road Traffic Infringements Agency

S.A. Civil Aviation Authority

Ports Regulator of South Africa

International Organisations

Non Profit Institutions

Maritime Rescue Co-ordination Centre

S.A. Maritime Safety Authority

Universities & Technicons

Households

Other Transfer PaymentsR’000

15

Expenditure on Transfer Payments (Continued)

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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 3.4%

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

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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 4 630 889 0 100.0%

Public Transport Operations 2 357 082 2 357 082 0 100.0%

Public Transport Infrastructure and Systems 1 036 241 1 061 241 25 000 97.6%

Public Transport Network Operations 118 362 118 362 0 100.0%

Rural Road Asset Management 52 205 52 205 0 100.0%

Public Corporations - Payment schedules are revised each month according to capital expenditure:

Passenger Rail Agency of S.A. 4 600 829 4 600 829 0 100.0%

Departmental Agencies & Accounts – Normally paid quarterly in advance:

S.A. National Roads Agency 5 248 590 5 248 590 0 100.0%

Road Traffic Management Corporation 83 473 83 473 0 100.0%

Railway Safety Regulator 46 513 46 513 0 100.0%

Road Traffic Infringements Agency 12 500 12 500 0 100.0%

S.A. Civil Aviation Authority 9 078 9 078 0 100.0%

Ports Regulator of South Africa 7 950 7 950 0 100.0%

Maritime Rescue Co-ordination Centre 3 442 3 249 (193) 105.9%

S.A. Maritime Safety Authority 3 202 3 202 0 100.0%17

Details of Transfer Payments up to Quarter 2 (Continued)

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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 1 922 0 100.0%

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%

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Conditional Grants: Provincial Roads Maintenance Grant

Province R’000 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%

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0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

EC FS GT KZN LP MP NC NW WC

Transferred Spent

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Conditional Grants: Provincial Roads Maintenance Grant

49.2% 98.1% 92.3% 91.3% 25.3% 65.5% 106.5% 86.6% 52.4%

R’000 % Spent:

20

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Conditional Grants: Public Transport Operations Grant

Province R’000 R’000

Transferred Spent by Province

% Spent

Eastern Cape 95 796 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%

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0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

EC FS GT KZN LP MP NC NW WC

Transferred Spent

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100.0% 99.2% 95.7% 103.1% 102.3% 94.8% 95.1% 88.5% 85.5%R’000

Conditional Grants: Public Transport Operations Grant

% Spent:

22

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Conditional Grants: Public Transport Infrastructure Grant and Network Operations Grant

Municipality R’000 R’000

Transferred Spent by Municipality

% Spent

EC: Buffalo City 10 000 40 0.4%

EC: Nelson Mandela Bay 0 295 968 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 25 000 28 670 114.7%

LP: Polokwane 25 000 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

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Conditional Grants: Rural Road Asset Management Grant

Municipality R’000 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 8.9%

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

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Conditional Grants: Rural Road Asset Management Grant (Continued)

Municipality R’000 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 0.0%

LP: Waterberg 1 571 236 15.0%

MP: Ehlanzeni 1 710 227 13.3%

MP: Gert Sibande 1 822 0 0.0%

MP: Nkangala 1 602 0 0.0%

NC: John Taolo Gaetswewe 1 465 0 0.0%

NW: Dr Ruth Segomotsi Mompati 1 914 318 16.6%

NW: Ngaka Modiri Molema 1 985 0 0.0%

Total 52 205 22 187 42.5%25

PERFOMANCE Apr - Sep 2013 (Q2)

26

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

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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.

28

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).

29

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

30

ROAD TRANSPORT

• S’hamba Sonke Programme

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;

31

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.

32

CIVIL AVIATION

• Airlift Strategy

- 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

33

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

34

MARITIME TRANSPORT

• Amendment of National Ports Act

- 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.

35

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.

36

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

37

PUBLIC TRANSPORT

• NLTA Amendment Bill

- 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

38

Abbreviations

39

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

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