Transport Minister Dipuo Peters on Tuesday said her department had a budget of R53.7-billion for 2015/16 to meet the transport needs of the country.

Speaking at a media briefing prior to her budget vote, she added that the department’s budget would increase to R59.3-billion in 2017/18.

“The programmes of the Department of Transport (DoT) are mainly implemented through the 13 transport public entities, as well as provinces and municipalities, hence transfers and subsidies are the largest expense in the budget,” she said, adding that, of the R47.8-billion in 2014/15, transfers and subsidies constituted 96.7% of the adjusted appropriation allocation.

“[We] have increased the transport funding to record levels, with R25-billion over the last five years, and R5-billion in the 2014 financial year. This is unprecedented and, through this use of funding, we have recorded serious breakthroughs,” she added.

“Therefore, the importance of the department’s capacity to provide thorough oversight over these entities cannot be overemphasised. The DoT’s contribution to the National Development Plan (NDP) is underpinned by the National Transport Master Plan 2050 Vision. . . to provide a sustainable transportation system, which is demand responsive.”

Peters said the taxi industry remained the most important part of the public transport system. “Taxis move 68% of the country’s 5.4-million passengers on a daily basis and contribute immensely to our economy.”

She added that the department would review the taxi recapitalisation model to improve its effectiveness and affordability.

The Minister further stated that, with the increase of cars on the roads, the department was prioritising the expansion of the road network, doubling the capital available for the upgrade and expansion of provincial and local roads.

“Until the late 90s, our road network was characterised by gradual decline and stagnation that bedevilled road users and our economy. Many of our roads were built many years ago and we know that hardly any significant new highways have been built since 1986, except for those that were constructed as part of the toll projects,” she said.

Peters added that the number of vehicles on South Africa’s roads had increased from 5-million in 1994 to over 11-million in 2014.

She reiterated her department’s plans to invest R1.1-billion in the “notorious” Moloto road, outside Pretoria, where fatal bus accidents occur regularly. “The process of proclaiming this road as a national road is currently under way.”

“Transport is a mover of people, goods and services. It is the heartbeat of the economy, the fabric of our socioeconomic development agenda. The commitment that we make as a department is to implement the NDP, the key priorities on the maintenance of road infrastructure, upgrading rail infrastructure and services, as well as building and operating our public transportation.

“Today…I want to make it clear that my personal priority will be to advance the debate about the national system of infrastructure funding and pricing for infrastructure and services,” she said.

TOLLING ROADS
Peters added that the DoT would announce additional funding for the South African National Roads Agency Limited (Sanral) to help it deal with the challenges it was facing.

“We do so mindful of the fact that the transport sector is facing significant funding needs that cannot be made from the fiscus alone. We need to develop a long-term funding framework and strategy together with the private sector for transport funding.

She added that more provincial roads were being added to Sanral’s networks, which justified the increase in funding made available to the agency. “The Sanral network is not only the tolled roads, but [also includes] nontolled roads.”

Also speaking during the briefing, Sanral CEO Nazir Alli said the roads agency was not facing financial difficulties. 

“We have been very prudent in how we have managed our business, so we are not running into bankruptcy. But like any business, we need to earn an income for the investment that we have made and to repay the loans we have made and the bonds we have issued,” he added.

“We do see a light at the end of the tunnel,” Alli said.

Meanwhile, Peters said the process to make a final determination on e-tolls in Gauteng, was nearing completion. “When done, President Jacob Zuma, as the key driver of this process, would make an announcement on where we are with the consultation.”

RAIL EXPANSION
Peters noted that the DoT’s commitment to ensuring the transport of more goods by rail, rather than by road, would ensure that the number of crashes and fatalities on the country’s roads were reduced.

“This move will equally unlock more economic potential and job creation. It will also help decrease congestion by freight transporting dangerous and heavy goods, [while guaranteeing] the durability of our roads,” she said.

OPPOSITON RESPONSE
The opposition Democratic Alliance shadow Transport Minister Manny de Freitas on Tuesday responded to the Minister’s budget, stating that the DoT was not taking the issues facing the country’s transport sector seriously.

He focused on the e-tolling system in particular, stating that despite Sanral’s “massive” multimillion-rand marketing spend throughout 2014, the scheme’s compliance levels peaked at around only 45% in June 2014.

“This is confirmed by statements made by the Minister in Parliament. This translates to R120-million a month, confirmed by Sanral in a media statement. This was well short of [its] original target of R250-million a month,” said De Freitas.

He added that the absence of Sanral’s ability to enforce the e-toll policy and the growing public resistance has reduced the scheme’s monthly e-toll revenue collections to around R60-million by the end of February, estimated to be less than 23% of users paying for the use of the freeways.

“The other is regarding the Western Cape’s Winelands freeway toll plan. The Supreme Court’s ruling on March 30 asks serious questions around Sanral’s lack of transparency relating to their tolling model, the costs of the project and tenders awarded to the preferred bidder or appointed concessionaire.

“When one considers all this, there must surely be enough evidence to suggest that something is amiss with the leadership and performance of this State-owned entity,” noted De Freitas.