APPLICATION FOR DAILY ALLOWANCE



TRANSPORT

A TRANSPORT PERSPECTIVE ON THE 2013 STATE OF THE NATION ADDRESS

22 February 2013

The 2013 State of the Nation Address highlighted the following strategic objectives that are pertinent to the transport sector:[1]

• Shifting the transportation of coal from road to rail in Mpumalanga in order to protect the provincial roads.

• Improving the movement of goods and economic integration through a Durban-Free State-Gauteng logistics and industrial corridor.

• Upgrading Mthatha Airport runway and terminal and the construction of the Nkosi Dalibhunga Mandela Legacy Road and Bridge.

• Fast-tracking of roads in the North West.

• Integrating different modes of transport (bus, taxi and train) in Cape Town, Nelson Mandela Bay, Rustenburg eThekwini and Tshwane.

• Improving commuter rail network.

IMPACT ON TRANSPORT

Shifting the Transportation of Coal from Road to Rail in Mpumalanga in order to Protect the Provincial Roads

The transportation of goods may take place by sea, land (road and rail), air, canal or inland waterway or by a combination of these modes. Some of the factors to take into consideration before deciding whether shipment is going to be by air, ocean, rail or road are the following:[2]

• The size and weight of the goods;

• Type of packing required and tools and costs involved (i.e. hazardous goods);

• Urgency associated with the delivery;

• Overall cost involved, including hidden costs, such as insurance premiums, finance charges, storage;

• Any special facilities which the goods may require, refrigeration (frozen food stuffs) or special security measures;

• The location of the overseas buyer in relation to sea ports, railway stations or airports;

• The facilities at the port of destination, e.g. whether there is bulk-handling or container handling equipment (i.e. grain elevators);

• Whether the consignee has the facilities to accommodate containers at his/her premises;

• The terms of the sales contract, for example, the buyer may stipulate that a particular mode of transport be used;

• The characteristics of the goods being transported (fragile, high value etc.); and

• The reliability and regularity of different transport services.

In South Africa, available evidence suggests that road transport has been heavily relied upon, as far as the shipment of goods utilising land transport is concerned, and this modus operandi has had a negative impact on the road infrastructure. Indeed, the survey conducted by the Organisation for Economic Cooperation and Development (OECD) reveals that between 2003 and 2005, 80 per cent of the haulage in the country was by road.[3] The shift to road transport is blamed on the unreliability of the rail system. Frequent train delays and cancellations are said to have prompted customers to switch to road haulage, especially for the transportation of high value goods and when timely delivery is important.[4]

South Africa’s road condition varies widely. High quality national roads, including those that are tolled are generally in reasonable condition, but many provincial roads that were built in the 1950-1960 period are now fifty years old and beyond their design life.[5] Many important arterial routes, such as the section of the R74 between Stanger, Bergville and Harrismith in the Free State and the R56 running from Pietermaritzburg to Kokstad, Matatiele, Maclear, Molteno and Middelburg have been improved in recent years but many other provincial, district and local roads are in poor condition. A good example is the R612 between Bulwer, Ixopo and Park Rynie in KwaZulu-Natal. In Mpumalanga, the section of the N11 between Ermelo and Amersfoot had to be completely rebuilt to the tune of R1.5 billion, after damage from large numbers of coal trucks operating to the Majuba Power Station.[6] The portion of the N2 between Piet Retief and Pongola cost R680 million to rebuild after being heavily used by trucks carrying export timber, chrome ore and coal to Richards Bay.

Research shows that overloaded heavy vehicles are responsible for approximately 60 per cent of the damage to the road network and this costs a country at least R750 million per annum.[7] South Africa runs some of the heaviest trucks in the world, namely, 56 tonnes gross vehicle mass (the combined weight of the truck, trailer and cargo) compared to 36 tonnes in America.[8] As a result of minimum enforcement in many areas, low levels of fines, limited success with prosecution in the courts and varying levels of corruption at weighbridges, many transport operators appear to have adopted a policy of “deliberate overloading”.[9] The low level of overloading enforcement in certain provinces is largely due to a lack of manpower and weighing facilities. To some extent, overloading stems from the (mis)perception that this practice is “not a serious traffic offence”.[10]

In the same vein, the state of the rail infrastructure is a grave cause for concern. It is estimated that about 95 per cent of the rolling stock, currently in operation, dates back to the late 1950s.[11] The systems technology on this fleet is old and inherently obsolete and is therefore costly to maintain or refurbish and upgrade. The average age of the coaches in South Africa is 40 years. The norm around the world is for coaches to be upgraded at 27 years and overhauled every nine years. This is to ensure that the structural and sub-systems integrity is not compromised by mental fatigue, age, wear and tear or environmental condition.

Government has realised the crucial role of the rail sector in the country’s economy and the vital importance of improving the rail infrastructure and the rolling stock. It is for this reason that Government is implementing the biggest rolling stock upgrade programme ever in the country’s history. In this regard, R123 billion has been allocated to create a railway service that forms an integral part of the renewal of the transport system to provide effective and efficient public transport.[12]

The Presidential Infrastructure Coordinating Commission (PICC) has identified Mpumalanga and North West as having “serious challenges” around road safety and infrastructure and this has been attributed to heavy duty trucks.[13] A shift in the transportation of coal from road to rail will go a long way towards addressing the challenges that these provinces face.

Improving the Movement of Goods and Economic Integration through a Durban-Free State-Gauteng Logistics and Industrial Corridor

The proposed development of the Durban-Free State-Gauteng Logistics and Industrial Corridor will result in economic integration and facilitate the movement of goods through harbours and airports.[14] Projects in the Durban-Johannesburg Corridor include:[15]

• Sale of the Durban International Airport to Transnet for the establishment of a dig-out port;

• Development of Cato Ridge as a dry port;

• Planned extension of commuter rail to reach Pietermaritzburg;

• The development of Harrismith as a logistics hub; and

• Gauteng Logistic Hubs, including Tambo-Springs, Central Rand and improvement of City Deep.

In 2012, the then Minister of Transport, S’bu Ndebele, stated that research was being conducted to determine the nature of investment required for the Corridor. He further indicated that an estimated half a trillion was projected for the entire Corridor.[16] The vision for the Durban-Free State-Gauteng Logistics and Industrial Corridor lays a foundation for the establishment of a Southern African Regional Freight Corridor.

Upgrading Mthatha Airport Runway and Terminal and the Construction of the Nkosi Dalibhunga Mandela Legacy Road and Bridge

The upgrading of the Mthatha Airport is one of the mega projects that seek to address backlogs and service delivery challenges in the Eastern Cape. The runway is being extended to accommodate large aircraft. The upgrade is also expected to improve the airport’s capacity. The Eastern Cape Provincial Government intends to have a service between Cape Town and Mthatha, via Port Elizabeth and Bisho.[17] According to the Eastern Cape Premier, Noxolo Kiviet, the project “is meant to address spatial development disparities and repositioning this region as a tourist and investment development hub”.[18]

Fast-tracking of Roads in the North West

In October 2012, the Premier of the North West, Thandi Modise, stated that the South African National Roads Agency Limited (SANRAL) would commence with the reconstruction of 1 351.7 km of the provincial road network. The roll-out of road construction projects is part of implementing the Strategic Infrastructure Project (SIP 4). It is aimed at accelerating investment in infrastructure to unlock the economic potential. It is also intended to support the development of mining, agricultural activities and open up beneficiation opportunities in the province.

SANRAL reported to the Extended Exco lekgotla that the organisation was implementing eight road maintenance projects across the province that involve road repair and resealing.[19] The R970 million road repair projects include the Bloemhof to Rietpan, Delayville to Sannieshof and the Ventersdorp to Krugersdorp roads. In addition, over R1 billion has been budgeted for the SANRAL-Bakwena Toll Projects on the N4 for the construction of an additional carriageway covering 32 km between Brits and Marikana.[20] This also covers the construction of 22 km between Zeerust and Rustenburg, rehabilitation of the N4 between Brits and Marikana, as well as Swartruggens including periodic and routine maintenance.

Integrating Different Modes of Transport (Bus, Taxi and Train) in Cape Town, Nelson Mandela Bay, Rustenburg eThekwini and Tshwane

South Africa strives to move away from the current commuter-based transport provision into an integrated public transport system that meets growing and changing passenger demands in an efficient, effective and sustainable manner. Delivering the Department’s Budget Vote Debate on 25 April 2012, the then Minister of Transport, S’bu Ndebele, maintained that integrated rapid public transport networks (IRPTNs) were being rolled out in twelve cities, namely:[21]

• Johannesburg;

• Cape Town;

• Tshwane;

• Nelson Mandela Bay;

• Buffalo City;

• Mangaung;

• eThekwini;

• Polokwane;

• Mbombela;

• Rustenburg;

• Pietermaritzburg; and

• Ekurhuleni.

He also highlighted that for the 2012/13 financial year, R5 billion had been allocated to these cities to implement their IRPTNs. Finally, the then Minister asserted that for 2013/14 and 2014/15 financial years, R5.55 billion and R5.87 billion respectively had been allocated in the Medium Term Expenditure Framework (MTEF).[22]

The 2007 Public Transport Strategy spells out how the integrated transport system is envisaged to work.[23] The network will consist of a core of road and rail trunk corridors with feeder systems. The aim is to achieve maximum physical and fare integration in the core. Physical integration implies a well designed transfer system with high quality public space and pedestrian and wheelchair friendly movement between corridors and/or modes. Fare integration means a common fare structure that encourages free transfers within the network. This will extend the range of destinations available to a user for a single, affordable network fare. The user will not have to pay twice when travelling.

As the 2003 National Travel Household Survey (NHTS) pointed out, the majority of South Africans do not have access to a private car.[24] It is therefore vital for Government to invest in a more reliable, affordable and safe public transport. The IRPTNs provide such an opportunity. Most importantly, the provision of safe and reliable public transport is identified as one of the core elements of a decent standard of living in the National Development Plan (NDP).

Improving Commuter Rail Network

The existing commuter system is unable to satisfy passenger demands due to many years of neglect. In effect, the current rolling stock is old, with the majority of the trains built in the 1960s and 1970s and still being driven using 1950s technology.[25] In an attempt to respond to this unpalatable state of affairs, the then Minister of Transport, S’bu Ndebele, launched a tender process on 19 April 2012 for the acquisition of new rolling stock for the Passenger Rail Agency of South Africa (PRASA). On 30 September 2012, the tenders closed and seven tenders were received from a variety of international rolling stock manufacturers.

Subsequent to evaluation, the Minister of Transport, Ben Martins, announced on 5 December 2012, that the preferred bidder that had emerged from the evaluation process was Gibela Rail Transport Consortium.[26] Gibela Rail Transport Consortium comprises Alstom, a French rolling stock manufacturer and Actom, a South African supplier of electrical equipment. A process is underway to appoint a Broad-Based Black Economic Empowerment (B-BBEE) equity partner to join forces with Gibela. The B-BBEE partner will obtain 30 per cent of the shares in the consortium.

Gibela will manufacture 3 600 rail vehicles over a ten-year period from 2015/16 to 2025/26 at a cost of R51 billion, plus cost escalation.[27] It will also supply support with maintenance, technical support and spares supply over a period of eighteen years. It is anticipated that 8 088 direct jobs will be created in the course of the contract. Moreover, it is envisaged that by the second year of the contract, a local content of 69 per cent will have been achieved.[28]

At the same time, depots will be upgraded in Pretoria, Johannesburg, Cape Town and Durban to accept the new rolling stock. It is reported that major infrastructure and signalling upgrades are also taking place on the corridors where the new rolling stock will be deployed. The contract will include the spending of R797 million on skills development initiatives. R32 billion will be spent on subcontracting to black empowered entities and R5.3 billion will be spent on subcontracting to qualifying small enterprises and exempted micro enterprises.[29]

The first phase of this investment plan started in February 2012. Delivering his 2012/13 Budget Speech, the Minister of Finance, Pravin Gordhan, announced an initial R5 billion allocation to PRASA.[30] The R4 billion thereof is for the procurement of new trains and R1 billion will be used to upgrade infrastructure such as signalling and depots.

IMPLICATIONS FOR PARLIAMENT FOR 2013

The Department should make a detailed presentation on its plan to shift the transportation of coal from road to rail in Mpumalanga. There is equally an imperative on the part of Parliament to monitor whether the shift does, indeed take place. Perhaps Parliament should consider whether this initiative could be replicated throughout the country. Moreover, the Department should brief Parliament on whether it has an anti-overloading strategy which is aimed at mitigating the effects of the deterioration of road infrastructure.

Parliament should consider enacting legislation that will ensure that goods that are supposed to be transported by rail are transported by rail and that those that should be transported by road are, indeed, transported by road. In this way, the two modes will be evenly used and this will mitigate the deterioration of the road network.

The Department should brief Parliament on the Durban-Free State-Gauteng Logistics and Industrial Corridor. The briefing should cover, inter alia, what this initiative entails, the time frames for its implementation, the stage at which it is and how much has been budgeted for it.

The Department should brief Parliament on the upgrading of the Mthatha Airport runway and terminal, as well as the construction of the Nkosi Dalibhunga Mandela Legacy Road. In addition, Parliament should conduct oversight visits to both Mthatha Airport and the Nkosi Dalibhunga Mandela Legacy Road.

SANRAL should give Parliament an update on its road construction projects in the North West province. There is also a need on the part of Parliament to conduct site visits to the areas where these road construction projects are being implemented.

The Department should brief Parliament on the progress made pertaining to integrating the various modes of transport.

Parliament should monitor the modernisation and rail upgrade by PRASA. In this regard, PRASA should brief Parliament on the progress made, the number of jobs created, as well as the number of beneficiaries of this massive investment. Concomitantly, attention should be paid to the profile of the beneficiaries (rural versus urban dwellers).

Last but not least, Parliament should ascertain whether the rail modernisation programme caters for the youth, women and people with disabilities.

PROGRESS ON ISSUES RAISED IN THE 2012 STATE OF THE NATION ADDRESS

Developing and Integrating Rail and Road around the Two Main Areas in Limpopo: The Waterberg in the Western Part of the Province and Steelport in the Eastern Part

This strategic objective falls under the Strategic Integrated Project (SIP 1) of the Presidential Infrastructure Coordinating Commission. Referred to as “Unlocking the Northern Mineral Belt with Waterberg as the Catalyst”, this SIP is coordinated by Eskom. There are a number of key anchor projects implemented by Eskom and Transnet to support energy production. SANRAL has a number of key projects at various stages that have been identified as critical to ensure that the aims of the SIP are realised. [31] It also supports the initiative of expanding rail transport in Mpumalanga, connecting coalfields to power stations.

Improving the Movement of Goods and Economic Integration through a Durban-Free State-Gauteng Logistics and Industrial Corridor

SANRAL is investigating the capacity expansion for the N3 Corridor route and this is at a basic planning phase. All projects that reduce time and cost for the users and yield economic returns will be prioritised.

The implementation of the 2050 Vision for the Durban-Gauteng Corridor has since been converted into the Durban-Free State-Gauteng Logistics and Industrial Corridor. A Corridor Steering Committee and various work streams (Planning and Infrastructure, Funding and Communications) have been established. The Critical Infrastructure Decisions Matrix, that clearly indicates the list of projects, milestones and the cost together with the Funding Framework, has been completed.[32] Funding remains a key challenge given the current environment and the question of alternative funding resources will need to be clarified.[33]

Upgrading Ten Priority Roads in the North West

The transfer of the eighteen roads was gazetted in the Government Gazette on 28 September 2012. Further five roads will follow as soon as the province has completed its contracts on them prior to this process commencing. The total length of these roads is 1 427 km. The service providers for the routine road maintenance activities were appointed on 8 November 2012. The total anticipated expenditure to improve the state of these roads is R145.7 million. This work should be completed by the end of September 2013, weather and climatic conditions permitting.[34] The expenditure by the end of December 2012 was R17.78 million.

For the asset improvement activities, the road condition surveys/assessments have to be conducted. These have started and will be completed by the end of March 2013. The first tender has been issued for the doubling up of the R24 IN Rustenburg. The value of the project is R200 million. Construction is anticipated to commence in April 2013. Upon receipt of the condition surveys, the extent of the work required will be quantified and a cost estimate prepared. The National Treasury will be approached for funding over the Medium Term Expenditure Framework period. The most critical routine road maintenance will be completed by January 2014, thereafter less intensive routine road maintenance actions will continue on an ongoing basis.

References

Ash, P. (2010). Why Our Roads and Railways will Continue to Die. [Internet]. The Times. Available from: [Accessed 13 April 2011].

Department of Transport (2003). Key Results of the National Household Travel Survey, Pretoria, Department of Transport.

Department of Transport (2007). Public Transport Strategy, Pretoria, Department of Transport.

Department of Transport (2013). Progress Report on Issues Raised in the 2012 State of the Nation Address, Pretoria, Department of Transport.

Eastern Cape Transport (2012). Minister Sisulu and Premier Kiviet to Visit Mthatha Airport. [Internet]. South African Government Information. Available from: [Accessed 20 February 2013].

Goldstone, C. & Bamford, H. (2008). R50 bn Road Shock: Experts Warn the Scale may be the same as Eskom [Internet]. Available from: [Accessed 16 February 2010].

Gordhan, P. (2012). Budget Speech on 22 February, Cape Town, Parliament of South Africa.

Holman, J. (2008). Rail Freight Losing Share to Road Haulage. Engineering News. Available from: [Accessed 10 February 2012].

Jorgensen, A. (2010). Rail Road Association of South Africa Discussion Document. [Internet]. Available from: [Accessed 10 February 2012].

KwaZulu-Natal Department of Transport (n.d). Freight Traffic Management: Overloading Control. [Internet]. Available from: [Accessed 10 February 2012].

Martins, B.D. (2012). Announcement of the Preferred Bidder for the Design, Manufacture and Supply of the PRASA New Rolling Stock Fleet. [Internet]. Passenger Rail Agency of South Africa. Available from: [Accessed 21 February 2013].

Ndebele, S. (2012a). Budget Vote Debate on 25 April, Cape Town, Parliament of South Africa.

Ndebele, S. (2012b). Remarks by the Minister of Transport on the Occasion of the Launch of the Request for Proposals for the Rolling Stock Fleet Renewal Programme on 19 April, Johannesburg, Braamfontein.

Nkosi. B. (2011). Public Rail to Get R97-Billion Revamp. [Internet]. Media Club South Africa. Available from: [Accessed 10 February 2012].

Nordengen, P.A. (n.d). A New Era of Overloading Control in South Africa. [Internet]. Available from: [Accessed 10 February 2012].

Passenger Rail Agency of South Africa (2012). Briefing by the Passenger Rail Agency of South Africa (PRASA) on the Implementation of its Railway Recapitalisation Programme on 1 November, Cape Town, Parliament of South Africa.

South African Broadcasting Corporation (n.d.). Mthatha Airport Gets R340mln Facelift. [Internet]. South African Broadcasting Corporation. Available from: [Accessed 20 February 2013].

South African Press Association (2012). Trucks Damaging Mpumalanga, North West Roads – Cronin. [Internet]. Engineering News. Available from: [Accessed 20 February 2013].

SA Commercial Prop News (n.d.). North West Road Construction Projects Underway. [Internet]. SA Commercial Prop News. Available from: [Accessed 20 February 2013].

Trademate (n.d). Transportation Introduction. [Internet]. Trademate. Available from: [Accessed 10 February 2012].

Veness, M. (2012). Promises of New Infrastructure Are Music to Business Ears. [Internet]. The Witness. Available from: [Accessed 18 February 2013].

Zuma, J. G. (2013). State of the Nation Address on 14 February, Cape Town, Parliament of South Africa.

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[1] Zuma (2013).

[2] Trademate (n.d).

[3] Holman (2008).

[4] Holman, ibid.

[5] Goldstone & Bamford (2008).

[6] Jorgensen (2010).

[7] KZN Department of Transport (n.d).

[8] Ash (2010).

[9] Nordengen (n.d).

[10] Nordegen, ibid.

[11] Nkosi (2011).

[12] Passenger Rail Agency of South Africa (2012).

[13] South African Press Association (2012).

[14] Veness (2012).

[15] Ndebele (2012).

[16] Ndebele, ibid.

[17] Eastern Cape Transport (2012).

[18] South African Broadcasting Corporation (n.d.).

[19] SA Commercial Prop News (n.d.).

[20] SA Commercial Prop News, ibid.

[21] Ndebele (2012a).

[22] Ndebele, ibid.

[23] Department of Transport (2007).

[24] Department of Transport (2003).

[25] Ndebele (2012b).

[26] Martins (2012).

[27] Department of Transport (2013).

[28] Department of Transport, ibid.

[29] Department of Transport, op cit.

[30] Gordhan (2012).

[31] Department of Transport (2013).

[32] Department of Transport (2013).

[33] Department of Transport, ibid.

[34] Department of Transport, op cit.

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