The Minister of Transport, Fikile Mbalula, recently addressed the media on the status of the transport sector in the country.

According to Mbalula, the Covid-19 pandemic had a major disruptive effect, which severely affected the transport sector.

“No mode of transport was spared and all our entities were affected. We worked hard to put measures in place to cushion this impact and ensure that our public entities continue to render the critical services they are mandated to provide.”

He said the department’s budget for the current financial year, as announced in February, is R66.7-billion, of which R65.3-b constitutes transfers and subsidies. This translates to 98% of the department’s budget channelled through entities, provinces, private enterprises and other entities to advance the implementation of the department’s mandate.

Private enterprises funded by the department are bus companies that benefit from public transport subsidies. Other entities include organisations such as the National Sea Rescue, Institute (NSRI), the Mountain Club of South Africa and the South African National Taxi Council (Santaco).

“The Auditor-General (AG) has also noted improvement in governance across our entities, while raising concerns about emerging risks in entities, such as RTIA and the concern issue in respect of Sanral as a consequence of delays in making the final decision on e-tolls. The AD has observed entities that are doing well to create stability and drive clean administration, including C-BRTA, SACAA, DLCA, RSR and Ports Regulator. Incurring irregular expenditure remains a source for concern. The AG noted that Prasa, Acsa and Sanral were the main contributors to irregular expenditure. Prasa’s irregular expenditure amounts to R742-million while Sanral and Acsa have incurred R175-m and R282- m in irregular expenditure respectively.”

Meanwhile, in regards to fruitless and wasteful expenditure, Acsa was the largest contributor to the tune of R76.9-m, followed by Prasa at R15.3-m and RTMC at R7.4-m.

Maritime sector Inefficiencies in container freight rail and port services raise the cost of South Africa’s imports and it make the country’s exports less competitive. Mbalula said to address this, they are working closely with the Minister of Public Enterprises in implementing several structural reforms.

“Most notable is the establishment of the National Ports Authority as an independent subsidiary of Transnet, which will undoubtedly improve the competitiveness of our ports and boost investor confidence.”

The South African Maritime Safety Authority (Samsa) is expected to increase its expenditure at an average annual rate of 3.6%, from R531.2-m in 2020/21 to R590.8-m in 2023/24. Revenue is generated by levies, fees and user charges, which are expected to increase at an average annual rate of 3.7%, from R538.5-m in 2020/21 to R600.4-m in 2023/24.

Ports regulator of South Africa The Ports Regulator improved its audit outcome from an unqualified audit with findings to a clean audit.

Roads sector With an allocation of R104.3-b over the period ahead, the department’s road transport programme facilitates activities that are related to the maintenance of South Africa’s national and provincial road network.

“The South African National Roads Agency plays a crucial role in programmes related to upgrading, maintaining and strengthening national toll and non–toll roads. Transfers to Sanral account for 31% of the department’s budget and 62.2% of the department’s budget for the road transport programme. “

A core focus over the MTEF period is the R573, better known as Moloto Road, which is allocated R2.7-b. Transfers to fund reduced tariffs for the Gauteng freeway improvement project amount to R2-b over the medium term, while 53.6% or R34.8-b of allocations to Sanral are to maintain the national network of non–toll roads.

Sanral According to Mbalula, the 22 253 kilometres of the national road network that Sanral is responsible for plays a critical role as a primary network in enabling economic activity, linking the economic hubs of our provinces with regional and international markets.

“This is complemented by the secondary and tertiary road networks that enable access to centres of economic activity and social infrastructure and amenities for our communities. Our target to achieve a 25% reduction of fatalities on our roads by 2024 requires closer collaboration and creative solutions. It is, therefore, imperative for Sanral to play an active role in conceptualising solutions in arresting this carnage on our roads.”

Mbalula added that Sanral is, therefore, working towards developing and strengthening partnerships with countries in the Southern African Development Community (SADC) region and across the continent to advance sustainable road infrastructure development.

C-BRTA The Cross–Border Road Transport Agency was established to improve the cross border flow of passenger and freight transport operators and regulate market access. “As a self–funded entity, the agency’s primary source of revenue is permit fees. Revenue is expected to increase at an average annual rate of 12.4%, from R217-m in 2021/22 to R307.9-m in 2023/24.”

DLCA The Driving Licence Card Account is a trading account responsible for manufacturing driving licence cards based on orders received from driving licence testing centres across South Africa. Expenditure is expected to increase at an average annual rate of 3.7%, from R201.3-m in 2020/21 to R224.5-m in 2023/24. Spending on production and infrastructure accounts for 72.8% or R486-m of its total expenditure. The entity generates revenue through the sale of driving licence cards. Revenue is expected to increase at an average annual rate of 11.5%, from R202.2-m in 2020/21 to R280.1-m in 2023/24.

Road Accident Fund The Road Accident Fund is mandated to compensate South African road users for losses or damages caused by motor vehicle accidents within the borders of South Africa. The fund derives its revenue from the fuel levy. Revenue from the levy is expected to increase at an average annual rate of 5.8%, from R38.1-b in 2020/21 to R45.2-b in 2023/24.

RTIA The Road Traffic Infringement Agency was established to administer procedures that discourage the contravention of road traffic laws by enforcing penalties and providing community awareness programmes. Expenditure is expected to increase at an average annual rate of 11.7%, from R1.1-b in 2020/21 to R1.6-b in 2023/24, mainly due to operational expansions relating to the electronic national traffic information system and road traffic law-enforcement training. As a result, spending on operations and law enforcement is expected to account for 42.6% or R2-b of expenditure over the period ahead.

Rail sector Transfers to the Passenger Rail Agency of South Africa in the rail transport programme account for an estimated 27.2% or R57-b of the department’s budget over the period ahead.

However, the agency has struggled for many years to roll out its modernisation programme, which is meant to improve the reliability of services and increase the number of passengers.

Mbalula said the delays in the rolling stock fleet renewal programme, along with poor spending on rail infrastructure and the effects of the Covid–19 pandemic, specifically lockdown restrictions, necessitated the reprioritisation of funds to support other entities in the transport sector.

“Following a prolonged period of instability, we have recently appointed a permanent board of control, which is leading the intensified implementation of Prasa’s modernisation programme,” said Mbalula.

Aviation sector (ATNS) The Air Traffic and Navigation Services Company expenditure is expected to increase at an average annual rate of 3.6%, from R1.5-b in 2020/21 to R1.7-b in 2023/24.

The Airports Company South Africa company Although passenger numbers fell to 10.6 million in 2020/21 due to the decrease in air travel because of Covid–19 travel restrictions, a recovery is expected to translate to an increase to 13.9 million in 2023/24. Expenditure is expected to increase at an average annual rate of 3.3%, from R6-b in 2020/21 to R6.6-b in 2023/24.

The South African Civil Aviation Authority (SACAA) Expenditure is expected to increase at an average annual rate of 9%, from R632.9-m in 2020/21 to R820.3-m in 2023/24. The authority is expected to spend R205-m over the period ahead on the replacement of the flight inspection aircraft and flight calibration equipment. Meanwhile, the revenue is expected to increase at an average annual rate of 23.3%, from R437.3-m in 2020/21 to R820.3-m in 2023/24.

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