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11 February 2008

Introduction
The President’s State of the Nation has set the tone for the pace with which we must work this year. As the Economic Cluster we certainly have our work cut out for us. The efficient and timeous rollout of all infrastructure programmes is crucial to the economic growth and poverty alleviation goals we have set for ourselves as government.

We have made great strides in the implementation of projects in the transport and logistics infrastructure.

Taxi Recapitalisation Programme (TRP)

TRP aims to improve safety in the taxi industry, and has provided an opportunity to formalise the industry. Government has allocated R7,7 billion for the TRP rollout. The target is to scrap 80% of the old taxi fleet by 2010.

The scrapping of taxis commenced on 28 October 2006 and to date more than 13 261 old taxi vehicles have been scrapped amounting to payments of over R663 million.

Roads Infrastructure

Rehabilitation, maintenance and reservation of roads infrastructure: Government has worked on more than 600 000km of new roads since 1994. The budget allocation has been raised from R600 million to R2,2 billion. R63 billion has been committed for roads in the current medium tern economic framework (MTEF) period. Cabinet approved the Gauteng Freeway Improvement Scheme at a cost of R23 billion.

Rail infrastructure

The South African Rail Commuter Corporation is working closely with metros and some municipalities to ensure that rail services are delivered in a manner that supports the integrated transport plans (ITPs) developed by Government. Metrorail Express Services will be deployed effectively as part of our transport operation plans for both the Confederations Cup in 2009 and ultimately the World Cup games in 2010. By 2010 there should be a train available every five minutes. We will need to ensure that train services are available at least 14-18 hours a day. We have committed almost R10 billion to upgrade both rolling stock and infrastructure over the next three years. This will also be coupled by investment worth more than R6 billion, rising to R16 billion.

Passenger rail safety

Implementation of the Rail Safety Management System and construction of security contact points for South African Police Service (SAPS):
* Over 1 700 SAPS rail police have been deployed countrywide
* 5 000 SAPS rail police to be deployed by 2010 and
* investments of R16 billion for refurbishment and overhaul of coaches.

The South African Rail Commuter Corporation (SARCC) is calling on all law enforcement agencies to be tough and have no mercy on those burning trains. The SARCC has drafted an ambitious plan of action, pronouncing on key interventions:

* customer focused improvements
* accelerated rolling stock programme
* development of a safety management system
* roll-out of the National Rail Safety Ambassador Programme with special focus on train surfing and staff riding and
* a new business philosophy on a planned programme of preventative maintenance to eliminate the backlog.

Public Transport Strategy

Cabinet approved the Public Transport Strategy with key projects aimed at achieving the goal of mass transit public transport networks. An essential feature of our Public Transport Strategy (2007 – 2020) deals with phased extension of the mode-based vehicle recapitalisation into Integrated Rapid Public Transport Networks. These networks comprise an integrated package of Rapid Rail and Bus Rapid Transit priority corridors especially in major cities.

Public Transport Infrastructure and 2010 Action Agenda

Public Transport Infrastructure and System Fund has been allocated an amount of R9,2 billion for 2010.

Projects include:
* Khulani Corridor  - Eastern Cape – R321 million
* The N1 and N2 Toll Highway – R5 billion (3 200 jobs)
* Rea Vaya BRT – Johannesburg – R1,3 billion
* Public Transport Interchange – Ethekwini – R309 million
* Sani Pass Road between SA and Lesotho Border – R200 million
* Expanded Public Works Porgramme (EPWP) – countrywide – R3 billion
* Gauteng Freeway Improvement Scheme- R23 billion
* BRT Networks in Tshwane – R107 million
* Gautrain Rapid Rail – R27 billion

Freight logistics and corridor development

In line with the National Freight Logistics Strategy, the first draft of the Branchline Strategy was developed to articulate a vision and strategic approach to revitalising non-core rail lines to ensure economic sustainability of small towns and rural communities. Our plans take into account the efficiency of the branch line strategy, the Nkwalini in KwaZulu-Natal, Belmont – Douglas in the Northern Cape and Kei Rail in the Eastern Cape branch line revitalisation projects.

Aviation

* Implementation of the Airports Development Plan;
* Implementation of the Airlift Strategy;
* The Airports Company of South Africa (ACSA) is developing airport infrastructure in line with passenger growth through its R19,3 billion
* Passenger numbers expected at 31 million by 2012 and
* Provincial airports are being upgraded to meet growth demands.

Energy

Energy supply is an area where great effort has been concentrated recently. We have begun to implement the National Electricity Emergency Plan, and the impact of some of the interventions being made will have an impact in the immediate term, while some will start having an impact in the medium to long term.

The Department of Minerals and Energy recently launched the national Energy Efficiency campaign as part of government’s response to the current national energy emergency.

Energy efficiency is central to the government response’s plan, announced last month, to reduce energy demand and electricity consumption. Government is embarking on the public awareness campaign in order to ensure that all energy consumers save energy. Promotion of energy efficient consumption patterns proved successful when the Western Cape recently experienced unprecedented power outages.

The roll-out of the energy efficient light bulbs (CFLs) will be done on a national level with the indigent and the poor either receiving them free or at a subsidised price. The campaign will commence with an exchange programme for CFLs for all government buildings and followed by the replacement of energy inefficient light bulbs in all households. One of the recommendations in the new electricity regulations that have been published for comment by the DME is, amongst other things, a ban of incandescent light bulbs. The deadline for the public to submit comments is 25 February.

Government wants to add other energy sources to take the pressure off the electricity sector through the introduction of the solar water heating system and solar lighting traffic lights. Government envisages one million solar water heating installations in the next three years. 

To enhance the successes of the energy efficiency, a smart metering programme will be introduced to manage energy through remote connection and disconnection of customers who exceed threshold levels set by Eskom.

Increasing uptake and usage of information and communications technologies (ICTs) by government and individuals

The Apex priority related to increasing access to, usage and uptake of ICTs relates to initially connecting health centres, libraries, district office and post offices in the coverage area of, and including, 500 Dinaledi schools - schools designed to significantly contribute to a number of learners passing high grade maths and science in grade 12. In this regard R500 million has been allocated for Sentech to rollout of the wireless broadband infrastructure which will also prioritise government connectivity to under-serviced areas.

Broadcasting digital migration

Sentech is also on track to replace old analogue transmitters and have digital terrestrial television (DTT) coverage to reach 50% of the country’s population by the end of the year. 

DTT is the first step in achieving the Broadcasting Digital Migration aimed at replacing the current analogue broadcasting infrastructure thus enabling allocation of broader spectrum to deliver broadcasting channels as well as more government services.

Broadcasting Digital Migration is a result of the resolution taken at the Regional Radio Communications Conference held in Geneva where member states committed to migrate from the current analogue to digital broadcasting by June 2015. However, South Africa will start switch-on of the digital signal in November this year and have switch-off of the analogue signal by November 2011. This allows for a three year dual illumination period thus facilitating a smooth transition.

Set-Top Boxes (STB) will be required to enable the public to view digital transmission on their analogue TV sets. An added advantage is that STBs will be manufactured in South Africa, thus revitalising the set top box manufacturing sector and thus creating jobs and other opportunities for SMMEs as well as increase South Africa’s competitiveness in this sector. Work has already begun by the Department of Communications, Trade and Industry and the manufacturing sector.

The Department of Communications will undertake an extensive broadcasting digital migration awareness campaign to inform the consumers about the migrations and the benefits thereof.

Local content

Local and digital content strategy is being developed in conjunction with other stakeholders such as the Department of Arts and Culture. The strategy will ensure that digital content is being created, preserved, accessed, and understood thereby contributing to building national identity and social cohesion. In addition, it is expected that the strategy will map out the mechanism to unlock the potential of the South African production industry thus, creating jobs, particularly for SMMEs.

Reducing the cost of telecommunication
The construction of the undersea submarine fibre optic cable is expected to commence in the first half of 2008. This private-public partnership between governments of the region, telecom operators and private sector investors is expected to provide accessible, affordable and reliable telecommunications to South Africa and the continent. Part of the cable is expected to be operational by end of 2009 so it could provide additional capacity for the 2010 FIFA World Cup.
 
Benchmark telecommunications costs and usage

As part of sharpening Governments efforts of reducing the cost to communicate, a programme of action to not only telecommunication cost but also with respect of quality, availability, accessibility and usage of ICTs in South Africa will be developed and implemented.   

Rollout of the National Address System

The lack of addresses particularly in informal settlements poses a challenge to government to meet its social obligations and protect and serve its citizens. The roll out of the National Address System will for example, not only enable postal, but also emergency services and the ability of the police to respond effectively and efficiently to life threatening situations and help combat crime.

Although significant progress has been made in the work of the Cluster, we cannot afford to be more complacent. Much more can and should be done. Following the July Cabinet Lekgotla later this year, we will be able to give an update on some of the programmes and interventions outlined above.

Contact person:
Vimla Maistry
Department of Public Enterprises
Cell: 082 372 0207

Issued by: Department of Public Enterprises for the Economic Cluster
11 February 2008