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Green Paper on National Transport Policy

Department of Transport, Pretoria
March 1996

FOREWORD

The Department of Transport has committed itself to a process of reviewing national transport policy to ensure that this policy meets the needs of all our people, within the constraints of our resources and within the changed environment in South Africa.

It is part of the public policy formulation process to consult with all transport stakeholders in South Africa and to address the burning issues which concern you. It is therefore my pleasant duty to place this Green Paper on National Transport Policy before the South African public and to invite you all to respond to its contents. Your responses will enable my Ministry and the Department to formulate broad transport policy for the foreseeable future.

I stress the word "broad" transport policy since the transport function is, in terms of the Interim Constitution, carried out at all three levels of government. Public policy is hierarchical in nature and the policy proposals formulated in this document are intended therefore to provide the overarching framework within which it is hoped other levels of government will develop their specific and more detailed policies. The proposals in this document have been developed in consultation with all three levels of government.

Transport is an extremely important function in the daily lives of all our citizens and is also of economic significance. The Government of National Unity has recognised transport as one of its five major priority areas for socio-economic development and it is therefore of exceeding importance that you, the public, play a major role in its policy formulation. We are ready to listen to you. It is your democratic right, and indeed duty, to become involved in this policy-making process.

Our new transport policy has to meet the challenges facing transport with dynamic solutions and help unlock the social and economic potential of the country and its citizens. I therefore appeal to you to play your full role in this crucial policy making process.

Mac Maharaj
Minister of Transport

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TABLE OF CONTENTS

Introduction

Overarching framework for transport policy

Policy options

• Transport infrastructure
• Land passenger transport
• Land freight transport
• Civil aviation
• Maritime transport
• Road traffic

Conclusion - The way ahead

List of Abbreviations

Explanations of Terminology

Opportunities for Input

 

INTRODUCTIO N

What is a Green Paper?

A Green Paper is a consultative document. It is designed to offer options and to pose questions that need be answered in order for government to formulate policy. A Green Paper is not in itself stated government policy. A White Paper sets out government policy.

A Green Paper is designed to stimulate responses from the public and interested parties. It needs to provide a framework of focused policy issues for discussion which can form an important basis for policy proposals and formulation.

Green Paper on National Transport Policy

Transport plays a significant role in the social and economic development of any country. In fact, after education it is regarded as the most important catalyst for development. The effectiveness of the role played by transport is to a large extent dictated by the soundness of transport policy and the strategy utilised in implementing the policy.

Public policy cannot be static but must be dynamic in nature . It must at all times be perceptive to the environment within which it operates. Policy therefore needs to be reconsidered and if necessary revised on a continuing basis.

The last major analysis and formulation of transport policy in South Africa took place in the mid 80's. Since then there have been many profound and far reaching changes in the country and the time is opportune for a review of transport policy.

Early in 1995 the Department of Transport embarked on a project to review and revisit transport policy and formulate new policy where it has become necessary to adjust to a changed environment. This policy making process embraces and encourages an approach which, as far as possible, involves all role players and the public at large in determining issues, generating policy options and discussing and accepting policy proposals.

The first phase of the policy process was to set up a steering committee to guide the policy review study but not necessarily to make policy recommendations. The steering committee that was established is fairly inclusive without pretending to be fully representative. It includes people from all key sectors of transport and as far as possible was constituted to involve all interest groups involved in the process.

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A working group was established to develop an overarching framework for national transport policy. It formulated a long-term vision and a mission for transport in South Africa.

Six sectoral working groups involving a cross section of the role players in the transport industry were established to analyse issues within specific transport sectors. These working groups each dealt with separate elements of the total transport policy process.

The reports of these separate working groups were submitted to a plenary meeting which involved more than 300 people from across the entire spectrum of transport, and which was held during July 1995. Various public seminars were also held on the specific elements covered by particular working groups and an opportunity was provided for the community as a whole to make their input into the proposals of the working groups and the subsequent reports they produced. The working group addressing the public passenger transport function carried out its activities cognisant of the work of the National Taxi Task Team and their final report has been extensively discussed by, and with, representatives of the Taxi Task Team.

Following the first plenary meeting and the various public seminars the working groups, taking cognisance of the input received and the issues and problems identified, produced revised reports with policy proposals to address the issues perceived as being problematic. Their contents were summarised into a draft Green Paper, which was discussed at a second plenary meeting in February 1996, and the Green Paper then finalised.

The proposals contained in this Green Paper are thus the result of a broad public policy making process. After any further comments have been received from the public at large, policy will be drawn up and published in a White Paper.

Since transport is a multi-faceted function the policy review process has been addressed through a multi- faceted functional process.

Transport Infrastructure which is common to all the functions and which influences the performance, and is in turn influenced by the requirements of the separate elements of transport, has been identified as a facet for which policy is required.

Land, air, and sea transport operations have been addressed separately:

• Land passenger transport
• Land freight transport
• Air transport
• Maritime transport

In addition to these separate functions, there is a necessity to formulate policy for Road Traffic management or control, including road safety, and a separate chapter in this Green Paper has been devoted to this issue.

Whilst the transport policy review process has been subdivided into these separate elements for convenience of analysis, there is a degree of overlap and mutual interaction between them and for this reason this document should be regarded as an holistic entity. The importance of the intermodal relationship between the separate elements of transport is strongly stressed.

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Institutional Issues

The structural arrangement of transport bodies is an essential element of transport policy and in turn can significantly affect transport policy proposals. As such institutional integration has been identified as one of the key thrusts to be addressed in a review of transport policy. Furthermore the proposals for the institutional framework for transport are also related to, and influence, the proposals for the restructuring of government transport assets.

Public policy making is carried out at various levels of government. The hierarchial nature of public policy leads to central government policy generally being broad in nature and providing the reference framework within which more detailed policy is made at provincial and local authority level. Because of this, transport institutional policy needs to address arrangements for the relationships between various levels of government, as well as the structure for non government, or statutory transport bodies.

• Government Bodies

  In so far as transport authorities are concerned, the Transport function, in its various horizontal and vertical subdivisions is, in terms of the Interim Constitution, carried out at all three levels of government. For this reason transport policy, in different degrees of detail, will need to be formulated at all these levels. To promote integration and co-ordination of policy and activities between the central and provincial authorities a co-ordinating structure termed "Ministers Committee on Transport" (MINCOM), with its executive arm as the "Committee of Land Transport Officials (COLTO) has been put in place. COLTO has four co-ordinating sub-committees dealing with road matters, land transport, road traffic management and traffic control, respectively.

  The task of effecting co-ordination and integration of policy and activities between provincial and local government is a provincial responsibility which should be taken up within each specific Province's transport policy formulation process.

  This Green Paper therefore only addresses broad National Transport Policy. It however provides a framework within which it is trusted the other two levels of government will frame their specific detailed Transport Policies.

• Non Government and Statutory Bodies

  Regarding the structure for non government authorities, and particularly in the light of the current arrangement wherein Transnet and other parastatals through its subsidiary groups plays a major role in the provision of services (as well as infrastructure in certain instances), proposals for structural institutional and ownership arrangements for Transport have been recommended to Cabinet by a task team on restructuring of State Owned Enterprises. A National Framework Agreement has been developed between Government and Labour which will inform the restructuring process.

• Regulating and Advisory Bodies

  Within the transport sector there exist various regulatory and advisory bodies, for example the Transport Advisory Council (TAC), the National Transport Commission (NTC), an independent Regulating Committee for the Airports Company and the ATNS Company, and Road Transportation Boards. Further to this there is a move being considered for the establishment of a Maritime Safety Agency, an Aviation Safety Agency, and a Roads Agency for primary roads, to allow for more professional focused service provision in these three areas. Policy proposals in respect of some of these are dealt with in the specific function areas in this Green Paper.

  It is proposed that the TAC should be disbanded. Experience with the functioning of the TAC during the past few years has been that its cumbersome size has tended to dilute specific interest groups' representations. It is felt that the very important input to the Minister of Transport from private sector interest groups would best be effected through direct representations from the specific groups.

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Illustrative Statistics

In order to provide the reader with a grasp of the extent of the South African transport system, a few illustrative statistics are provided in each section. These have been derived from a variety of sources, including the Central Statistical Services, the Department of Transport, Transnet, the Airports Company, and CSIR. Some more detailed statistics are available from the Department of Transport, although there is a dearth of reliable transport statistics and indicators relating to some elements of the South African transport system.

THE OVERARCHING FRAMEWORK FOR TRANSPORT POLIC

Transport is seldom an end in itself, but usually it is a means to an end. That end is the smooth and efficient interaction that allows society and the economy to assume their preferred form. Because of this derived nature of transport, policies in the transport sector must be outward looking, shaped by the needs of society in general, of passenger and goods customers in particular, and of the economy that transport has to satisfy. It follows from this that the priorities in providing and using the transport system should be consistent with those that have been set for the country as a whole.

South Africa's present transport system reflects the goals, decisions, and investments of the past. These have fashioned the system as it now exists. The country's priorities have changed, and the transport system needs to adapt accordingly. Most succinctly, the new priorities are summed up in the four elements of the Reconstruction and Development Programme, namely meeting basic needs, growing the economy, developing human resources, and democratising the state and society. Accelerated economic growth and international competitiveness are now regarded as high priorities. Transport has a role to play in each of these areas.

Against this background, the challenge for South African transport is to formulate a transport policy and strategy that will build an environment within which the transport industry can be as competitive as possible, and to develop a process which can integrate the different needs of passenger and freight customers, the transport industry, and national objectives.

Vision

The vision for South African transport is of a system which will:

"Provide safe, reliable, effective, efficient, and fully integrated transport operations and infrastructure which will best meet the needs of freight and passenger customers at improving levels of service and cost in a fashion which supports government strategies for economic and social development whilst being environmentally and economically sustainable".

This transport vision integrates the needs of policy makers and the needs of transport customers, while meeting return on investment criteria. Trade- offs between these needs may have to be made. The three pillars on which the vision is based are:

National policy imperatives

South Africa's transport strategy aims to positively impact on our economic and social development, and will do so by:

• supporting the goals of the RDP for sustainable economic growth, economic transformation, meeting basic needs, human resource development, and creating jobs
• aiming to broaden economic participation in transport service provision, and improve competition within the sector
• helping build southern Africa's competitiveness by ensuring the region's competitive advantages can be accessed and marketed
• participating with other sectors in broader policy- making and decisions which affect the demand for transport, and
• ensuring the safety of all transport participants.

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More specifically, transport planning will support appropriate strategies, such as development corridors, land-use densification and efficiency, and an integrated regional economy through, amongst others, establishing transport infrastructure and services linking industrial centres and current and future centres of socio-economic activity and growth.

South Africa's export focus will be supported by developing the seamless integration of goods transport into regional global transport patterns.

• Customer imperatives

  The goal is to move towards a situation where any customers requiring transport for people or goods should be able to access the transport system in ways which satisfy their choice criteria.

  The transport system will be developed to serve the needs of different customer groups.

  The goal is to improve the competitiveness of South Africa's transport infrastructure and operators to better meet the measured needs of these different customer groups, both locally and globally, by either decreasing transport costs for a given level of service, or increasing service for a given level of cost, or where possible, both increasing service and decreasing cost. For passengers this means the cost of transport should represent a declining, and low, percentage of disposable income; while for goods transport costs should represent a declining percentage of total cost of goods sold (for the same level of service).

  Overall, the quality, reliability, safety, security and speed of transporting goods and people will be improved.

  It is recognised that not all customers needs can be met at the same level of service. Scarce resources will be mobilised to best meet the needs of those passengers and industries who need them most, and which are in the best interests of society. For example, in line with the RDP, greater emphasis in passenger transport will be put on developing integrated mass transit passenger systems and non-motorised transport, rather than on travel by private cars which are already well served.

  Customer needs are not static. They evolve in ways driven, in the case of goods transport, by their end customers, by competition, and general economic development. As a builder of infrastructure and a provider of services we understand that responding to customer needs, or planning ahead of customer needs will ensure that the transport system facilitates economic growth, as well as meeting market requirements.

  A goal of the transport system is to create a fully integrated transport and information system which permits seamless, efficient, and transparent passenger and freight logistics in South Africa, regionally, and globally. The transport system aims to minimise the constraints to the mobility of passengers and goods, maximising speed and service, while allowing customers the choice of transport mode or combination of transport modes. This demands a flexible transport system and transport planning process which can respond to customer requirements, while providing on-line information to the user to allow choices to be made. It also requires infrastructure to be tailored to the needs of the transport operators and end customers.

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  A key driver of reducing costs of transport is capacity utilisation. As such, a goal of infrastructure and modal planning will be to maximise capacity utilisation in a development corridor in each mode, and to achieve a level of integration between modes.

• Meeting investment criteria

  Investment in infrastructure or transport modes should satisfy social, economic, or strategic investment criteria.

  Given the long-term nature of investments in transport infrastructure and systems, South Africa must build a strong financial base for the creation, maintenance and upgrading of transport infrastructure. There will be targeted investment to build infrastructure in the right places and of the right kind which serves the needs of the society.

  Long-term investment decisions will be based on sound and explicit criteria aimed at maximising the use of scarce resources. These resources are not only financial, but also human and material resources. Investment decisions will be taken against a set of criteria which include lifetime cost, economic, social, and other returns to the country of the investment; returns to the transport system itself; and returns to the customer of the investment decision. Environmental sustainability will also be a key measure in investment decisions. Investments in infrastructure which will not build economic efficiency or where infrastructure is unsustainable will be discouraged. Investments in infrastructure which promote energy efficiency, the least consumption of resources, and the greatest benefit/cost return will be favoured.

  Information systems must be developed to provide quality information to aid decisions. For example, the full costs of transport will be determined and benchmarking data will reveal the competitiveness of the transport system.

  Integration

  The transport vision will be achieved through the sum of the actions of key players. A key ingredient to future success will be a vision for transport shared by all the key role players, backed by co-ordinated and integrated planning and decision making.

  A strong, focused, professional Department of Transport will play a role in co-ordinating transport policy, and developing and implementing strategies. This it will do in close co- operation with other government departments, other levels of government, and other stakeholders. In particular, there will be closer co- operation between transport and land- use planning.

  Inter-modal co-ordination, co-operation and sharing of information will be encouraged in both infrastructure provision and operations to maximise customer service, decrease costs, and maximise social and economic return on investment.

  Based on the decision to be made the appropriate government departments, private sector, and consumers will be integrated in the decision-making process through appropriate fora.

  The roles and responsibilities of the key stakeholders and service providers will be clearly agreed. This will enable government regulation to be kept to a minimum, while the private sector will be able to build and operate within a competitive environment, be socially and environmentally responsible and self- regulating, and will be world-class transporters and transport service providers.

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  Key Thrusts

  To provide direction in the context of vision and provide criteria against which to assess current and future recommendations, ten key thrusts have been identified and should be met when addressing strategic issues:

  • Focus on Customer Needs

    Key customer groups should be defined along with an assessment of their individual needs and how these will be met. This should include the degree to which the various needs will be met and reasoning behind the decisions.

  • Meeting Basic Needs

    In accordance with the objectives of the Reconstruction and Development Programme, policy proposals should identify which needs will be addressed and how.

  • Finance Sources & Return on Investment (ROI)

    Investment can be financial and non-financial (e.g. human resources). Financial, legislative, organisational and other investment criteria should be met. Specific measurements should be associated with each, as well as information on who will make the investment, what the expected time horizon is, and sources of finance.

  • Low Cost for a Given Level of Service

    Proposals should identify appropriate levels of service for defined customer groups and minimise the costs associated with meeting those requirements.

  • Safety, Security & Consumer Protection

    Proposals should identify appropriate safety and consumer protection levels demanded by key customers (in context) and how these levels will be met. Additionally, institutions should be identified that will be responsible for ensuring the levels of safety discussed.

  • Integration

    Assurance of modal, spatial, institutional and planning integration is critical to transportation policy. Each of these should be defined with identification of methods to achieve such integration.

  • Human Resource Development

    Needed skills and technologies should be identified, including defining current levels and methods for achieving those needed in the future, such as training and education through industry training boards.

    Fair and acceptable labour practices, workers' rights, job creation and security, health and safety, and welfare benefits of employees in the industry should be promoted.

  • Ensuring Competition

    Current levels of competition, the platforms on which such competition occurs, the sufficiency or insufficiency of competition, the presence of any monopolies, and policies necessary to regulate monopolies or optimise competition without prejudice to the parties involved should be identified.

  • Broaden Participation in the Economy

    Proposals should identify how ownership and participation, including jobs, organization, and bidding processes, influence participation in the various transportation sectors and how these will be enhanced through the proposed policies.

  • Environmental Impact

    Potential environmental issues should be outlined and addressed. This should include definition and reasons behind attention or inattention to these concerns, as well as a discussion of the costs and benefits associated with these recommendations.

  These represent a set of higher level imperatives which form the basis of the transport policy, although not all are relevant to every sphere of transport policy. Wherever appropriate, the policy proposals in this Green Paper have been evaluated to ensure that they address these thrusts. The thrusts also provide common themes against which any new proposals should be tested.

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POLICY OPTIONS AND PROPOSALS

The policy options and proposals formulated by working groups and plenary meetings are set out on the following pages. They are grouped into the following six areas:

Infrastructure

Transport infrastructure (all modes)

Operation and Control

Land passenger transport

Land freight transport

Civil aviation

Maritime transport

Road traffic

In each of these areas, its scope is defined, the mission and strategic objectives for the function are set out, the critical issues are identified, and the key policy proposals, and suggestions for their implementation, are put forward.

TRANSPORT INFRASTRUCTURE

SCOPE

Transport infrastructure comprises all physical elements upon which transport operations take place. It covers all modes of transport and represents a significant portion of government's total financial investment in fixed assets. The total replacement value of current transport infrastructure in South Africa is of the order of R300 billion (see Table).

There is currently no consensus on methods for determining replacement values (e.g. current balance sheet value versus potential market value versus real replacement value, including land values).

The responsibility for different transport modes is fragmented between different government departments and levels of government, making coordination very difficult.

Very broadly, three quarters of South Africa s internal freight and passenger movements are undertaken on roads with the remainder being mainly undertaken on rail, and only a small part being carried by air and coastal transport.

There is no clear categorisation of local authority aerodromes. The DoT classifies them only into public and private aerodromes.

Three quarters of the total tonnages at ports is bulk cargo, one eight is breakbulk, one eight is containerised.

Transshipment cargo statistics indicate that only three national ports can be classified as hub ports, i.e. Durban, Cape Town and Port Elizabeth.

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MISSION

The proposed mission for transport infrastructure is:

"To provide an integrated, well- managed, viable and sustainable transport infrastructure meeting national and regional goals into the 21st century, in order to establish a coherent base to promote accessibility and the safe, affordable, reliable movement of people, goods and services"

The vision is that the transport infrastructure will

• be in place for South Africa to be the hub for transport in Southern Africa
• be promoting sustainable economic development by removing constraints on latent demand in development corridors at local, provincial, national and regional level and be providing the catalyst for private investment
• be structured to encourage public passenger transport and to discourage excessive private passenger transport
• allow for seamless intermodalism
• be financed through a combination of user charges and private/public sector investments
• provide adequate accessibility together with safety and security within the constraints of social affordability
• incorporate technological advances which promote and enhance the role of transport in the economy and development
• be structured to ensure environmental sustainability and internationally accepted standards

STRATEGIC OBJECTIVES

The strategic objectives for transport infrastructure to achieve this vision are to:

• Establish sound intermodal co- ordinating structures
• Maintain and develop the transportation infrastructure system, and prioritise its development in terms of sustainable economic and development needs
• Foster a sound financial base for transportation infrastructure
• Aid the promotion of a strong, diverse, efficient and competitive transportation industry within the limits of sustainable transport infrastructure
• Promote environmental protection and resource conservation
• Enhance the competitiveness of South African industry and the quality of life of its citizens by providing protection of consumers, safety and security, and meeting accessibility, reliability and mobility needs by providing transport infrastructure to serve the purpose
• Advance human resource development in the provision of transportation infrastructure

KEY POLICY AREAS

Establish intermodal co-ordinating structures

Critical issue

The responsibility for infrastructure used by different transport modes is fragmented between different government departments and levels of government, making co-ordination very difficult.

Key recommendation

The establishment of intermodal co-ordinating structures is considered to be essential for the creation of sustainable, integrated, well-managed transport infrastructure, in order to ensure integrated vertical and horizontal planning and information sharing.

Implementation of recommendation

It is proposed that:

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The national Department of Transport (DoT) assume the role of co-ordinator of transport infrastructure for all modes of transport, including:

rail
road
ports
airports

The policy regarding the role of the DoT in respect of pipelines needs to be considered in conjunction with the policy on the gas and petrochemical industry.

The DoT should address intermodal integration issues. In this regard, a clear co-ordinating, information- sharing and integrated planning function should be added to the department.

The MINCOM structure should ensure co-ordination across national and provincial functions, and be tasked to address intermodal issues. Structures should be developed to provide for co-ordination between DoT and Transnet, with links to the MINCOM structure. The role of the DoT will primarily be that of strategic planning, and possibly facilitation.

Barriers to improved co-ordination between road and rail should be removed. The situation could be improved by

benchmarking (locally, internationally)
information sharing
integrated planning
creation of a single co-ordinating body

Maintain and develop the transportation infrastructure system, and prioritise its development in terms of needs

Critical issues

A fundamental consideration in reviewing the policy on transport infrastructure is its appropriate "size". This requires an answer to the question of how much infrastructure, and what type of infrastructure, the country needs.

There is a need for the redefinition of national networks, linked to local economic activity and demographics, and also southern African networks.

There is a lack of long-term infrastructure planning.

It is generally agreed that cost-benefit analysis - which has traditionally been used for this purpose - is no longer sufficient for infrastructure project prioritisation under present South African socioeconomic conditions. In addition, there is the broader issue of fund allocation between geographic areas and between elements of transport (eg infrastructure vs. public transport).

A policy is needed for the development and maintenance of more appropriate decision support systems, which may include multiple criteria decision making techniques. There is a need to integrate transport planning with more general economic planning, e.g. through the establishment of activity corridors.

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Past laws relating to Group Areas, Influx Control and Homelands had a marked impact on the pattern of land uses in South Africa's towns and cities, and indeed the whole process and pattern of urbanisation, imposing particularly high demands on the following:

• the provision of road infrastructure along the main routes of oscillating migration
• the provision of road infrastructure and subsidised public transport along long- distance commuter routes.

In response to the above demands, transport planning has in the past been highly accommodative or "reactive", leading to the reinforcement of dispersed settlement and land use patterns. A similar accommodative approach had been followed in relation to past growth in the use of cars and the demand for car mobility. Dispersed settlement patterns, together with high levels of car use have highly adverse effects on environmental quality and sustainability.

Worldwide, there is a growing adoption of advanced technologies in order to enhance efficiency (improve capacity) and safety in transport and to decrease pollution. Such systems will eventually have major impacts on the functioning and administration of transport.

Key recommendations

A comprehensive management information system, based on indicators and models that enable demand to be quantified, and which will make requisite data available to planners, must be developed, in order to promote an integrated transport management approach.

National transportation infrastructure networks should be established, in conjunction with provincial and local government, as well as southern African countries. The primary roads network should be defined. Certain ports and airports should be elevated to the status of "hubs" in keeping with international trends.

There is a need for the recognition and acceptance of the co-ordinating role of the South African Department of Transport on regional transport infrastructure matters.

A strategy on long term and integrated planning consistent with the needs of the country should be developed.

A multi-criteria decision-making system should be developed to maximise economic efficiency as well as social and developmental impacts of infrastructure.

A more sustainable approach to the provision of transport infrastructure is required, shifting from accommodative, supply-focused transport approaches to a more balanced approach including pro-active land use and transport demand management as part of the policy package.

The Department of Transport must play a more prominent role in relevant decision-making processes and forums on urban and rural development and land use.

The international development of advanced technologies must be monitored and those technologies deemed to be appropriate should be incorporated into the transport infrastructure and operational system.

Implementation of recommendations

Regional and national networks will be identified in such a way that network data and operational data (eg freight ton-km or passenger-km) are available to planners, government and private investors at all levels (this should also include planned future extensions).

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Data will be computerised in a form that will make GIS-based decision support and sharing of data between different modes and government levels possible.

Linked to the above, there is a need to quantify demand and capacity directly through the normal transport planning methods, but also indirectly through the development of transport models and indicators. These indicators will assist decision-makers in the determination of priorities. Previous needs studies should be expanded upon.

Capacity constraining links and nodes (including intermodal facilities) should be identified.

In some cases, where transport is able to act as a leading sector in the stimulation of economic development, the government should take the lead in establishing necessary transport infrastructure and promoting the participation of other public and private sector institutions in order to facilitate and accelerate the development process.

Hub ports and airports require to be properly equipped to maximise South Africa's participation in the global economy.

The data requirements for long-term planning of transport infrastructure should be established.

The topics and concerns to be covered in long-term infrastructure plans should be established, e.g. for 5/10/25 year planning.

Long-term infrastructure plans should be made to be compatible between transportation modes.

The development corridor approach, which involves national, provincial and local activities, should be adopted wherever possible, but in a rational manner to ensure efficient and sustainable agglomeration of activities.

Foster a sound financial base for transportation infrastructure

Critical issues

It will not be possible to achieve the mission for transport infrastructure without appropriate funding sources. In general, current funding levels are inadequate for:

• new infrastructure, covering the whole spectrum of infrastructure from a national level to a local level
• the maintenance of the existing infrastructure
• the upgrading of the existing infrastructure where there are capacity constraints or unacceptable service levels
• intermodal facilities

Key recommendations

As far as possible, infrastructure should be funded through user charges and/or investments by the private sector. The value of indirect infrastructure related returns should be considered.

Subject to market discipline, the necessary funding for the establishment and maintenance of transport infrastructure should be arranged through a variety of institutional models:

• Public ownership and operation by state departments
• Public ownership and operation by a state enterprise or department (e.g. Airports Company or Roads Agency)
• Public ownership with private operation
• Private ownership and private operation.
• Joint ventures between the public and private sectors.

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Innovative ways of raising funds should be considered.

A climate that encourages private participation in the ownership, planning, financing, construction, maintenance and management of transportation infrastructure must be created. Consideration should be given to the creation of a new forum between the private sector and the Department of Transport, which will allow pro-active participation of the private sector. This should promote truly shared profit opportunities and risk-taking between the government and the private sector, whenever this is possible and appropriate.

Implementation of recommendations

Each type of infrastructure (road, rail, public transport facilities, etc) should be analysed and classified into sub-categories according to their suitability for cost recovery through user charging and/or investments by the private sector. The criteria that determine this suitability are: technical suitability and economic viability.

Possible sub-categories of infrastructure are:

• social access, requiring government funding or "subsidy"
• infrastructure suitable for indirect user charging, e.g. fuel levies, license fees, tax on fares
• infrastructure suitable for private sector investment, e.g. toll roads

Barriers to private involvement should be eliminated. These include:

• legislation
• attitudes within transport authorities
• financial rules
• perceptions about government commitment

In order to ensure efficient functioning of the proposed forum, principles and guidelines for private sector involvement should be established. Progress should be reviewed regularly.

A framework for joint-venture projects should be established and major joint- venture projects should be identified.

The government's ability to enforce current laws, and the private sector's willingness and ability to impose self- regulation, should be enhanced, in order to create a more stable environment for investment.

Future policies must encourage provincial governments to adopt similar approaches.

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Promote a strong, diverse, efficient and competitive industry

Critical issue

Diversity and keen intermodal competition which are essential to an effective transportation system are not features of the South African transport system.

Key recommendations

Government policy should promote equal competitive opportunities among the transportation modes and encourage co-operation among modes to enable each mode to realise its inherent advantages.

The strategic value of state ownership of infrastructure should be re- assessed. Ownership and regulation of transport infrastructure should be separated, whether state owned or privatised.

Implementation of recommendations

A cabinet task team is currently investigating ownership and institutional structures in respect of transport assets and the recommendations of this task team should be expeditiously implemented.

Regulatory structures should be established, where they are appropriate but do not exist.

Environmental protection and resource conservation relating to transport infrastructure

Critical issues

It is generally agreed that the South African economy, in line with the developed world, will have to adapt her economic growth policies to the requirements of environmentally sustainable development in future. Apart from any other considerations, this will be necessary to assure continued survival in the global economy. From the relationship "economic growth depends on transport operations depends on transport infrastructure", it follows that infrastructure should be provided and used in a way that is consistent with sustainability.

Key recommendation

Infrastructure itself must be environmentally acceptable, which means that planning for the provision of infrastructure should include the performance of environmental impact assessments (EIAs). Issues to be considered are environmental impacts, energy conservation and the transport of hazardous materials. These should be expanded to also cover aspects such as the conservation of infrastructure building materials.

Implementation of recommendation

As and when it becomes clearer, through international debate, what implications sustainability has for the provision and use of transport infrastructure, that the co- ordinating structures proposed earlier take these implications firmly and explicitly into account in their activities. Environmental issues should explicitly form part of multiple criteria decision-making systems.

Current guidelines on environmental issues should be expanded upon. Linkages with other relevant government departments are necessary.

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Enhance the quality of life of all citizens of South Africa

Critical issues

Accessibility and mobility
Reliability
Affordability
Level of service and performance measurements
Safety and security
Access to information
Protection of consumers
Public involvement

Key recommendation

It is proposed that performance indicators must be developed for different types of infrastructure and levels of service to measure the extent to which "quality of life" issues are being met in the provision of transport infrastructure and to adapt where necessary.

Implementation of recommendation

Inventories of requirements and indicators should be compiled to allow progress to be monitored on a regular basis.

All other institutions involved in transport infrastructure provision should be encouraged to follow the same course.

Clear guidelines on acceptable, equitable and efficient public involvement processes should be established and followed by planners as well as public interest groups.

Infrastructure to provide access to information should be considered, including the compatibility of information system architectures.

Advance human resource development in the provision of transportation infrastructure

Critical issues

Throughout the transport sector, the current situation is that there is a lack of demographic representation in senior positions; there is a lack of gender equality; line departments and parastatals do not seem to be adequately engaged in training; there is a lack of competency recognition and lack of clear career paths. In addition, although money has been made available for training, more direction in its application is required.

Key recommendations

Affirmative Action in the transport infrastructure provision sphere should be accelerated and monitored.

An holistic framework for human resource development, specifically focused on the transport sector should be developed and should include the accreditation of all processes.

Training needs for provision, maintenance and operation in transport should be identified and quantified, (e.g. skills inventory, new skills required) and matched where applicable with skills provision through avenues such as Centres of Development, universities, technikons and technology transfer centres and formal construction contracts (e.g. technical, managerial and business skills).

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The establishment of small enterprises addressing infrastructure provision and maintenance should be encouraged. Potential barriers to entry, such as contract documentation and specifications should be removed by the establishment of documentation and conditions appropriate to small enterprises (where applicable, labour intensive construction methods). Large contracts should be managed from a human resource development point of view, i.e. skills transfer conditions for the establishment and advancement of small enterprises as an entry into the formal contracting sector.

Implementation of recommendations

Line departments and parastatals involved in transport should be encouraged to set targets for gender and racial balance.

As part of the holistic framework for human resource development in the transport sector, the DoT should engage the Department of Education and the Foundation for Research Development in order to specifically highlight human resource development needs in the transportation sector. Mechanisms should be established for accredited career pathing.

SOUTH AFRICAN TRANSPORT INFRASTRUCTURE

ILLUSTRATIVE STATISTICS

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SCOPE

The Land Passenger Transport Policy encompasses all forms of public and private passenger movement on land, including the travel modes rail, bus, minibus-taxi, metered taxi, light delivery vehicles, private motor cars, motor cycles and bicycles as well as pedestrian movement.

The Policy covers all passenger movements from short distance urban transport to long distance inter-city and rural transport.

Passenger transport is a generic term used to describe both public and private modes of travel for all purposes, whether commuting or other business-related travel, shopping, tourism, recreational and casual travel.

The Policy includes principles on institutional, administrative, management, (including law enforcement), financial and planning and regulatory components. It encompasses planning including integrated land use/transport and multi-modal planning as well as transport operations. The Policy is intended to provide guiding principles for all functional levels, from national through provincial to local government authorities. Included in the Policy Framework are related fields including human resource development, energy and the environment, transport business development at all scales, information and the marketing of passenger transport policies and services. The Framework also encompasses the safety and security of passenger transport users.

Many of the interim recommendations of the National Taxi Task Team (NTTT) have been incorporated.

MISSION

The mission for land passenger transport is guided by the Constitution, the objectives of the RDP and the development policies of the Government of National Unity (GNU). In observing national development principles, the Policy is mindful of the principle of subsidiarity. Subsidiarity is the exercising of devolved power at the lowest competent level of government. Devolved transport powers and functions may either be exercised exclusively or concurrently with a higher level of government.

In accordance with these guiding principles, the mission of the Department of Transport in respect of land passenger transport is to provide leadership in:

"The promotion of an efficient and effective, co-ordinated, integrated, affordable, safe, reliable and environmentally friendly land passenger transport system in urban and rural areas, managed in an accountable manner to ensure that people experience improving levels of mobility and accessibility".

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STRATEGIC OBJECTIVES

The strategic objectives for land passenger transport are:

• Funding

  To ensure sustainable and dedicated funding for both passenger transport infrastructure and operations

• Spatial

  To encourage more efficient urban land use structures, correcting spatial imbalances and reducing travel distances and times for commuting to a limit of about 40 km or one hour in each direction

  To promote the use of public transport over private car travel, with the goal of achieving a ratio of 80:20 between public transport and private car usage

  To promote rural development that will improve access to opportunities by ensuring that rural workers are housed in close proximity to their work locations and services, thereby reducing the need to travel

  To encourage, promote and plan for the use of non-motorised transport where appropriate

• Customer-based

  To ensure that passenger transport services address user needs, including those of commuters, pensioners, the aged, scholars, tourists and the disabled

  To improve accessibility and mobility, limiting walking distances to less than about 2 km in urban areas

  To provide an appropriate and affordable standard of accessibility to work, commercial and social services in rural areas

  To ensure that public transport is affordable, with commuters spending less than about 10 percent of disposable income on transport

  To promote safe and secure, reliable and sustainable passenger transport

  To provide readily-accessible information for the assistance of passenger transport users

• Planning and Regulatory

  To provide appropriate institutional structures, which facilitate the effective and efficient planning, implementation, funding, regulation and law enforcement of the passenger transport system, devolved to the lowest competent level

  To provide for the registration of all public transport operators as formalised commercial entities, bound by the regulations pertaining to their permission to operate

  To replace operator permits with permissions (authorities) issued in terms of approved passenger transport plans

  To promote and implement a system of regulated competition for tendered public transport routes or networks

• Operational

  To empower and assist disadvantaged operators to participate meaningfully in the land passenger transport system

  To ensure that operations become economically viable, requiring the minimum financial support

  To foster a stable investment environment in the public transport industry

  To encourage a professional approach to the management and operation of land passenger transport

  To foster manpower and human resources development

  To ensure that transport modes are integrated in respect of scheduling, routes and ticketing systems

  To promote acceptable and fair labour practices in the transport industry

  To ensure that land passenger transport operations are more environmentally sensitive and sustainable, and are energy efficient

Central government will specify key performance indicators (KPIs) in respect of the strategic objectives. The KPIs will facilitate monitoring of the progress of provinces and local authorities in implementing the vision for land passenger transport.

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KEY POLICY AREAS

Land use and spatial development in support of land passenger transport

Critical issues

Land use and transport development are not integrated owing to a fragmentation of responsibilities for the administration, planning and regulation of the various aspects of land use, infrastructure, operations and regulations. This fragmentation and the legacy of apartheid policies has led to low density development, spatially dislocated settlements and urban sprawl, resulting in inordinately long commuting distances and times, low occupancy levels, high transport costs and low cost recovery. Current housing policy which supports single units on single plots will not achieve the densities required.

Key recommendations

The following spatial development principles will support passenger transport policy:

• land use development proposals must be subject to a land use/transport policy framework within an agreed development planning process;
• the effective functioning of cities and industrial areas must be enhanced through integrated planning of land use, transport infrastructure, transport operations and bulk services.

Implementation of recommendations

Policy actions necessary to provide for urban restructuring (densification) and efficient land use/transport interaction include:

• establishment of structures (all tiers of government) which facilitate integrated planning of infrastructure, operations and land use in a co-ordinated manner;
• regulation of land use development at local level so that development approval is subject to conformity with integrated land use/transport plans;
• land use frameworks, guidelines and policies should channel development, particularly employment activities, into public transport corridors and nodes.
• development priority should be given to infilling, densification, mixed land use and the promotion of development corridors and nodes;
• containment of urban sprawl and suburbanisation beyond the urban limits should be addressed through provincial spatial development plans;
• decentralisation which disperses employment activities must be discouraged;
• unrestrained car usage and subsidised car parking should be contained through the application of policy instruments including strict parking policies, access restrictions for private cars, higher licence fees, road pricing and area licensing.

Representation of transport interests on development commissions and tribunals established in terms of development planning legislation will assist in ensuring implementation of these recommendations.

Caution should be exercised by authorities in implementing these recommendations, to avoid unnecessary bureaucracy which may stifle development initiatives.

Institutional structures

Critical issues

The Constitution of the RSA, 1993, has devolved the functional areas of land passenger transport, road traffic regulation and roads to provincial legislators in terms of Schedule 6. Furthermore, the Local Government Transition Act, 1993, specifies the powers and duties of Transitional Metropolitan and Local Councils and includes the following functions:

• metropolitan co-ordination, land usage and transport planning;
• arterial metropolitan roads and stormwater drainage;
• public passenger transport services; and
• traffic matters.

No comprehensive enabling legislation currently exists for land passenger transport. Although the Constitutional Transformation Process (CTP) agreed by MINCOM has clarified the relationships between the various levels of government, and broad agreement has been reached on the division of functions between central and provincial government, further clarification of the exercise of specific powers and functions is required. The CTP agreement governs relationships affected by the assignment of existing legislation to provinces and may be affected by new over-arching land passenger legislation.

Key recommendations

Government has agreed on the principle of subsidiarity and devolution of public passenger transport functions, powers and duties to the lowest appropriate level of government.

A single over-arching Land Passenger Transport Act will be compiled at national level, clarifying the relationships between levels of government, and further defining concurrent and exclusive powers.

Implementation of recommendations

The Land Passenger Transport Act will specify the allocation and execution of national, provincial and local passenger transport powers and functions.

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Central Government

National functions will be as follows:

• macro passenger transport policy;
• norms and standards;
• strategic planning;
• transport research and studies;
• funding of some infrastructure projects in the national interest;
• demonstration projects;
• aspects of transport-related training;
• international road passenger transport agreements and regulations in collaboration with the
• relevant provinces;
• some inter-provincial passenger transport matters.

Provincial Government

Broadly speaking, original financial and executive powers will be given to the lower tier transport authorities, and the provinces will be responsible for co-ordination. Outside metropolitan, district and local transport areas, the provincial transport department will be fully responsible for ensuring the provision of rural transport infrastructure, facilities and services. Provincial functions and responsibilities include:

• administration of long distance passenger transport in consultation with other provinces;
• developing provincial land passenger transport policy and legislation;
• delimitation and designation of passenger transport areas and transport authorities (MTAs, DTAs or LTAs);
• setting provincial norms and standards;
• co-ordination of passenger transport among lower level authorities;
• implementation, monitoring and revision of provincial passenger transport policy;
• approval of transport plans;
• ensuring and, where appropriate, undertaking the planning, design, construction, maintenance and funding of public transport operations and infrastructure;
• ensuring the provision of public transport services;
• provision of transport funding including subsidisation;
• co-ordination of land use and transport planning at provincial level;
• advising the provincial Development Tribunals to ensure that policies in the provincial and local
• transport and spatial development frameworks are reflected in development decisions; and law enforcement.

A provincial Permit Board will be responsible for the issuing of permits at the request of the provincial passenger transport department or metropolitan passenger transport authorities, services or local councils.

Metropolitan structures

In line with the Constitution of the RSA and the Transitional Local Government Act, land passenger transport powers and functions should be assigned to the lowest competent level of government. This level should take full responsibility for execution and implementation in metropolitan areas. The functions assigned to this level should be executed within the framework of provincial legislation, policy, guidelines, norms and standards and appropriate institutional structures should be established to take responsibility for these functions.

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Services, district and local structures

Services, district and local councils will act as transport authorities. They will have the same powers and functions as metropolitan authorities to do planning and implementation of infrastructure and operations. Provincial transport departments will be responsible for co-ordination in respect of services, district and local structures and, in particular, rural bodies which have little or no competence to administer the function.

Framework for provision of services

Critical issues

There is no statutory requirement to issue permits in terms of passenger transport plans in some cases leading to unbalanced supply, inefficient, uneconomical and unsafe public transport services.

Insufficient and ineffective transport law enforcement leads to non-compliance with the conditions of permits.

Deficit subsidy systems may lead to inefficient services.

Key recommendations

The public passenger transport system in South Africa will be based on regulated competition. The regulation will be in the form of a permission, contract or concession awarded in terms of a passenger transport plan and supported by strict law enforcement. Permission is the authority to operate a route or network with no subsidy.

Contract is the authority to operate a route or network at a tendered contract price.

Concession is the authority to operate a rail line or network at an agreed price.

There should be a fundamental shift away from monopolistic situations. There should also be a shift away from systems which target commuters only towards one which benefits all passengers.

Regulated competition is defined as follows:

where public transport services require government funding support, for example for welfare, or traffic management, or strategic reasons, competition will take the form of tendered contracts (competition on routes or networks will then be precluded);

where public transport can be rendered as profitable commercial services, on-the-road competition will be encouraged, with competition being regulated through the issuing of permissions based on capacity management in terms of the supply policies of the provincial or local passenger transport plans (PTPs). (For example, this will apply to inter-city coach services, certain long-distance minibus-taxi services and viable short-distance urban services.);

charter services will be fully competitive with the granting of permissions being based solely on compliance with safety and traffic regulations.

Implementation of key recommendations

The future regulation of land passenger transport in South Africa will be in the form of a permission, awarded in terms of a passenger transport plan and supported by strict law enforcement. Permission is the authority to operate a route or a combination of routes or a network.

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Contracts will only be awarded to privately-owned or corporatised municipal and parastatal bus companies and registered minibus operators to ensure that there is fair competition between competing tenderers. All road-based public transport operators should:

• operate as separate legal entities from any level of government;
• have no direct access to finances other than on a commercial basis;
• operate on business principles; and
• be liable for taxation.

Successful tenderers, when awarded a contract, will automatically be awarded a permission to operate. Permissions for unsubsidised services will also be awarded only to registered operators on the basis of a PTP. Contracts shall only be awarded by the transport authority to a recognised route entity, co-operative, association, close corporation, company or a legal person, and should be based on a passenger transport plan.

Rail operations should be based on operating and maintenance concessions, awarded by transport authorities, based on a transport plan with ownership of infrastructure and rolling stock being retained by transport authorities.

The following are the main implications of regulated competition for public transport modes:

Minibus taxis:

regulated competition will mean that the minibus taxi industry will have to be formalised and measures introduced to enhance its economic viability. Minibus- taxis could form legally registered businesses, for example, co-operatives or companies, or be registered associations. These will have to operate in terms of permissions to operate on a route or network. Permissions will be granted by the provincial permit board. The number of permissions granted on a route or network will be determined by need (demand) estimated in terms of the PTP. Minibus-taxi businesses may also compete for the awarding of contracts by transport authorities. As far as possible in terms of the transport plan, the determination of routes/networks will be based on existing operations (including both legal and pirate operators). Financial and technical assistance will be offered to minibus-taxis to enable them to obtain permissions and/or contracts and to improve their economic viability. Minibus-taxi businesses may apply for permissions and/or contracts either on their own or in partnership with bus operators.

Bus operations:

all bus operations must either be privately owned legal entities or fully corporatised municipal or parastatal bus companies. They may obtain permission to operate from the provincial permit board. They may also compete for contracts which will be awarded by a transport authority. Existing permits on subsidised routes will have to be translated into interim contracts. Specific efforts should be made to encourage small, medium and micro enterprises (SMMEs) in the bus transport industry.

Rail passenger transport:

the national transport authority will own the rail infrastructure, rolling stock and land associated with rail reserves. Steps will be taken to utilise rail reserves in accordance with transport plans and spatial development frameworks. Operating and maintenance concessions will then be awarded by the transport authorities at provincial or metropolitan level. The current deficit financing system will have to be abolished and replaced with a concession system which will ensure more efficient and effective use of funds. The transport authorities will determine fares based on a common cost structure and taking account of the fares of other modes.

All transport operators

will be encouraged and empowered to bid for contracts and concessions. Contracts will be partitioned into manageable parcels to encourage bids by co-operatives comprising small, medium and micro enterprises (SMMEs).

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Funding

Critical issues

Urban and particularly public transport have experienced low priority in national funding, apart from the subsidisation of rail and bus services.

Specific funding issues which have arisen include the following:

• the absence of dedicated funding sources for passenger transport;
• inadequate funds to ensure the implementation of long-term plans;
• the funding of public transport operations through multiple sources and channels;
• the imbalance between spending on infrastructure and operations.

Key recommendations

To augment funds transferred from central level, fiscal powers for provincial and local governments in respect of their functional responsibilities will be sought.

The application of funds to transport improvements should be self-sustaining and replicable. To encourage this, the users of urban transport facilities should pay for all or most of the costs incurred within the limits of affordability. Where subsidies are required for welfare considerations or to promote public transport they will be applied through mechanisms which provide incentives for efficiency.

Funding should, however, be channelled through a single authority. This is to ensure that transport operations do not receive funds from more than one authority for offering the same service. A single authority therefore needs to co-ordinate the funds that any one operator receives for rendering passenger services.

Transport authorities, in consultation with communities, must define passenger transport needs at affordable fare levels in order to identify and target recipients of mobility support. Having identified the mobility needs of communities in order to determine the demand for state supported services, transport authorities should define routes and/or networks for tendered contracts to be rendered by competing private, corporatised or co-operatised operators.

Minibus and other SMME transport operators will be encouraged to compete for the award of contracts by transport authorities. Assistance will be offered to disadvantaged operators to enable them to participate in the system.

Transport authorities should apply alternative support mechanisms aimed at cost reduction for current minibus operators.

Implementation of recommendations

Funds must be allocated to authorities on a rational basis. Incentives, in terms of additional funding, should be offered to authorities for promoting public transport investment.

Operational subsidies should be based on tendered contracts. These should be in terms of a rational and common cost structure, allowing for some flexibility for differences in, for example, operating conditions.

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Funding of passenger transport infrastructure and operations should be as follows:

• Infrastructure funding for road-based public passenger transport should mainly be the responsibility of metropolitan transport authorities or local authorities with assistance from provincial transport authorities, based on passenger transport plans. The national government could provide incentive or seed funding to such metropolitan transport authorities or local authorities to develop infrastructure in support of public transport over private transport.
• Rail infrastructure may be funded primarily by the national government, but may also be funded by a provincial government, having due regard for the financial implications of the operation of rail services.
• Funding of operations should be the responsibility of metropolitan transport authorities or local authorities, with own funds as well as funds allocated to them by provincial transport authorities in terms of passenger transport plans.

The base mechanism for subsidising road-based public transport is the competitive tender. In the application of funds to support public transport or assist targeted users, transport authorities will be expected to determine the details of the mechanism which suit local conditions. Concessionary fares for different types of user should be considered to target special categories of passengers. Transport authorities have total discretion in deciding whom should be the beneficiaries of targeted subsidy.

The Department of Transport, in collaboration with other government departments, will develop mechanisms to assist, especially the minibus-taxi industry.

SUPPORTING RECOMMENDATIONS

Human resource development

All levels of government must be responsible for identifying needs in establishing priorities and programmes to build expertise on an ongoing basis.

Education and training facilities must be established to promote human resource development in land passenger transport. Initially, existing education and training facilities must be deployed to meeting training needs. All role players should be given the opportunity to gain access to such facilities.

Small, medium, and micro enterprises

Empowerment of SMMEs through training courses should receive priority.

Integration of SMMEs into the formal public transport system should be addressed pro-actively and in a structured manner by all levels of government and will be a priority in the transitional restructuring of the passenger transport industry.

Special categories of passenger

The approach to passenger transport should shift priority from private to public transport and within the latter sector from the provision of primarily peak period commuter services to a fully fledged public transport system catering for a wide range of passengers.

The needs of special categories of passengers should be identified by the responsible transport authorities, especially at metropolitan and local level, and these should be addressed in their passenger transport plans.

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Energy efficiency and environment

The use of more energy efficient and less pollutant modes of transport must be promoted.

A greater energy awareness should be fostered in both planners and users of the land passenger through public awareness programmes, differential fuel prices, etc. In this regard, close co- operation between the Department of Mineral and Energy Affairs and the Department of Transport is essential.

Rural passenger transport

The need to give attention to rural passenger transport is recognised. Accordingly, a national investigation should be undertaken to develop a guideline and framework of principles for rural passenger transport policy. Different principles should be investigated including "mobile service centres", minimum accessibility standards, rural settlement patterns, integration of urban and rural areas and integrated freight and passenger services. The framework should be developed by central government in collaboration with provincial ministers.

Comprehensive integrated planning

It is essential for land passenger transport planning to be carried out in an integrated fashion covering all modes. This planning should be done at as low a level as possible and by the relevant transport authority. Independent planning by modal operators, should be discouraged since the passenger transport plan should be comprehensive and cover all modes and the spatial integration of land use activities.

The planning endeavour should, at the least, address the strategic objectives of the Department of Transport.

SCOPE

"Land Freight Transport" as a focus area of transport policy embraces both domestic and international conveyance of goods by road and rail and is concerned with: the quality of service to the satisfaction of customers and users (including cost, reliability and timeous delivery); seamless, intermodal operations; optimised use of capacity and management of operations; protection of its infrastructure; and minimized impact on the environment and natural resources.

"Intermodal transportation" is the concept of transporting freight in such a way that all the parts and facets of the transportation process, including information exchange, are efficiently linked and coordinated, offering flexibility. It is not just the infrastructure, vehicles, rolling stock or equipment involved, but the management and operation processes. The true advantage of intermodalism is the ability to logistically and effectively link two or more modes of transportation for the benefit of customers and users.

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The principal "Functional Areas" of Land Freight Transportation are: Management of operations; maximising modal capacity; equitable infrastructure cost recovery; administration and institutional aspects; harmonisation of technical standards; and the interface with all related stakeholders, organisations, governments and groups of governments.

More detailed issues concerning these principal areas include the following:

• Land freight transport management and operations: the collection and interpretation of transport information, (including freight inventories; origin-destination studies; and forecast); the promotion of seamless services; effective interaction between modes and logistical services; and communications between government, mode owners, operators and logistical services.
• Modal capacity: the optimum use of existing capacities; cost benefit studies; infrastructure ownership, maintenance and operational alternatives; social services; and the need for a national forum to promote, harmonise and optimise modal capacity.
• Equitable distribution of infrastructure costs: promotion of a user pay concept; impact of infrastructure pricing on modal mix and tariff distortions; and effective modal co-operation and interaction.
• Administration and institutional aspects: harmonisation of respective responsibilities of authorities at the different levels of government; standard policies to cover safety, security and technical aspects; sub-division of certain rail networks within provincial boundaries; improved interactive relationship between the Ministries of Transport and of Public Enterprises; regulation and intervention; and dispute resolution.
• Cross-border operations: participate as an active member of multilateral organizations and conduct bilateral relations on the basis of a results-focused strategy; apply regulatory policies to cross-border road freight services with due regard to the need for a complementary intermodal relationship; manage cross-border routes effectively to promote optimal utilization through appropriate information collection and management support systems to facilitate road transportation regulation and provide accessible information to both authorities and operators; facilitate and expedite procedures at border posts; contribute to the reduction of the constraints imposed on the transport industry resulting from procedures and practices applied by other government agencies which impact negatively on transport efficiency; and promote specific routes or corridors to optimise transport management.
• International relationships: promote South Africa as a control hub for Southern Africa regional rail systems; support and development of rail systems in different countries; harmonisation of the Sub- Saharan road transport system; a participative relationship with international organisations, other governments and groups of governments; and the promotion of a primary road and rail network for the Southern Africa Region.
• Road traffic and transport law enforcement on the road network: compliance with vehicle and driver requirements; reduction in road damage with specific emphasis on vehicle overloading control; compliance with permit requirements; unauthorised motor transport; failure to comply with vehicle marking requirements; false permits; and a uniform approach to enforcement.

(Some of the above areas overlap with other policy areas addressed in this document and, where relevant, for example road traffic law-enforcement, are being dealt with more comprehensively in such sections).

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LAND FREIGHT TRANSPORT IN SOUTH AFRICA

SUMMARY STATISTICS

MISSION

The mission for Land Freight Transport is:

"To provide safe, reliable, effective, efficient and fully integrated land freight transport operations and infrastructure which best meets the needs of customers at improving levels of service at an equitable cost in a fashion which supports government strategies for economic and social development while being environmentally and economically sustainable".

The land freight quality-related and other needs of the community and customers are to be determined and provided for by a transparent, consultative, coordinated and accountable process, based on comprehensive information.

STRATEGIC OBJECTIVES

The strategic objectives for Land Freight Transport in order to fulfil this mission are to:

• Develop a comprehensive land freight transport information system
• Establish encompassing stakeholder consultative forums
• Promote the provision of seamless intermodal services
• Optimise current capacity and maintain and develop the land freight transportation system, and prioritise issues in terms of sustainable economic and development needs
• Find a practical and reasonable solution that leads to an equitable distribution of infrastructure capital, management, operating and maintenance costs
• Promote a strong, diverse, efficient and competitive transport industry within the limits of sustainable transport infrastructure
• Promote environmental protection and resource conservation, with specific reference to all aspects of transporting hazardous substances and goods
• Enhance the quality of freight transport services by providing transport customers with a safe, secure, reliable and cost-competitive system
• Advance human resource development and expand participation in the freight industry through the creation and growth of entrepreneurial opportunities, training and skills development
• Optimisation of road transport law enforcement

KEY POLICY AREAS

The existing domestic policy of economic deregulation of land freight transport is reaffirmed, with continued regulation in respect of safety matters.

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Infrastructure capital, operating and maintenance costs

Critical Issues

Disputes exist between the modes regarding equity in the recovery of infrastructure provision, management, operation, and maintenance costs.

A more equitable distribution of infrastructure cost recovery (capital, management, operating and maintenance) will make a positive contribution to reducing artificial modal shifts and distorted tariff structures created by cross-subsidisation. In addition, resolution of the present dispute between rail and road operators will make a major contribution to creating a more positive climate for co-operation and interaction between modes.

Key Recommendations

Specific and regular cost recovery studies should be undertaken to equitably allocate costs for the provision, management, operation, and maintenance of all freight transport infrastructure (including road, rail, port, and airport)

Implementation of Recommendations

Cost recovery studies should be carried out by Central Government, and should be transparent. Stakeholders and operators should agree to the terms of reference and be committed to accepting the findings as a basis of determining a more equitable distribution of infrastructure costs if this becomes evident.

Road traffic law enforcement

This critical issue is comprehensively dealt with in the section on Road Traffic Policy

Seamless intermodal services

Critical Issue

Importers, exporters and the local business community need seamless intermodal services if the key thrusts of the national transport policy are to be met.

Seamless services are seen as a vital element to achieve a customer focused freight transport system. This is especially so when seen against the background of the overall vision for the national transport system.

Key Recommendations

Modal, spatial and institutional integration must be encouraged, with special reference to corridor development strategies, modal and capacity utilisation.

There should be a national approach to a total freight transportation system, involving government, customers and users, owners and operators working together.

Cost-competitive, reliable, on-time and safe freight transport must be encouraged.

To remain customer focused, the freight transport system must be responsive to changes in customer demands, logistical developments and market forces.

Niche markets should be developed.

Implementation of Recommendations

A national forum to promote modal, regional and institutional integration in the freight transport industry should be created.

Policy options should be supportive of small and medium business, and should ensure operators without control over all elements in the logistic chain, are not disadvantaged.

Fair competition within and between modes must be ensured and where possible, increased.

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SUPPORTING RECOMMENDATIONS

The establishment of a close, interactive and formal working relationship between the Department of Transport, the Department of Public Enterprises and Transnet in order to promote coordinated