ANNUAL REPORT

1996-1997

1996 was the year of policy formation for the Department of Transport, highlighted by the acceptance and publication of our White Paper on National Transport Policy. The key elements of the policy reflect, firstly, the need for government's role to change from being deeply involved in operations to becoming strategically focussed on policy, planning and the practical regulation required to provide an efficient transport system.

The second major element was to change the institutional arrangements for the provision of transport so as to ensure effective co-ordination between the three levels of government and between government and the private sector. The third major element was to promote integrated planning processes and initiate projects geared towards maximising transport's role in realising South Africa's social and economic development priorities.

We have now reached the next critical phase: the process of creating an effective implementation strategy. Without such a strategy in place our White Paper would be destined to remain mere words on paper. Currently we are giving effect to the short-term strategy in our White Paper, but the larger challenge that faces us is to develop an implementation strategy for the next 20 years.

1997 will be devoted to drawing up such a strategy, making full use of the very best knowledge in transport, both locally and overseas. We have initiated a project, 'Moving South Africa', which will identify the key requirements for the next 20 years and position us to meet both the international challenge of global competition and the domestic challenge of satisfying our people's needs for increased mobility and access to work, services and recreational facilities. A project of this magnitude and significance will shape the direction of transport in South Africa for decades.

In the area of restructuring the department, we are aiming to separate government's policy and regulatory role from its executive functions. We have identified four areas of current departmental activity in which we have a clearly defined set of customers to whom it is possible to provide a dedicated service, funded by user charges and managed at arm's length from government as commercial agencies. The establishment of agencies will have the important effect of relieving the treasury of the subsidy burden which it currently carries for the provision of these services, and allowing for the redirection of fiscal resources to priority areas of social and economic delivery.

The areas in which agencies will be created are: the issuing of cross-border permits for goods and passengers; maritime and aviation safety; and national roads. Their introduction, planned to begin in April 1998, will reduce the staff of the Department of Transport from over 1,000 to about 250 people, which will result in further significant financial savings. Government will retain policy, regulatory and financial control of all four agencies.

I look back at 1996 with pride as the year in which we put in place the major projects which will start changing the face of the transport industry in this country in the coming years.

Delivering change means changing both structures and systems. Through the exhaustive consultation process which underpinned the production of our White Paper we have formulated an integrated passenger transport system for South Africa. We have taken the first step towards changing the decades-old bus subsidy system into a competitive tendering system by awarding interim contracts to bus operators. This will make the bus companies responsible for their operations and remove the padding which carte blanche government subsidies used to provide.

We also made significant progress in the regulation of the minibus-taxi industry, and have begun to put this lucrative and essential business in its correct place in the mainstream of our economy. The report of the National Taxi Task Team was accepted and the process of implementation is under way in the provinces.

In commuter rail services, the groundwork was laid for the repositioning of Metrorail as an independent arm of Transnet, required to meet newly defined output-based criteria for service delivery. With Metrorail's phased movement away from deficit financing and with the imminent commissioning of demonstration concessioning projects on selected services, a new journey is starting for commuter rail transport in this country.

All these projects have clarified our thinking and our commitment to an expanding private-public partnership as the means towards delivering an efficient and effective transport system in this country.

This philosophy is central to our programme to improve the national road infrastructure. One of the highlights of 1996 was the launching of the Maputo Corridor Project through an investors' conference which resulted, one year later, in the signing of a contract to build a R1,1 billion road linking Gauteng with Maputo, and the initiation of a range of exciting investment projects in the region which will benefit the people of South Africa and Mozambique for generations to come.

The Maputo Corridor Project - the first major cross-border Spatial Development Initiative to be launched in Africa - underscores our commitment not only to regional development but also to re-engineering the legacy of apartheid.

The model of infrastructure provision we inherited from the past has left us with two distinctive legacies. Firstly, it was planned in accordance with inward industrialisation and separate development objectives. Secondly, the financing, maintenance and operation of infrastructure was the preserve of the state. The 14 SDI programmes currently in hand are aimed at creating new investment opportunities in areas which were ignored in the past and have substantial economic potential, but which will require government to mobilise institutional support, promote investment and provide key infrastructural inputs like roads and rail links. We consider these projects to be of such importance that we have devoted a special section of this report to them.

The challenge for us is to find solutions to our problems within our means. Some of these we have already found in new partnerships with the private sector and with our neighbouring states. A sound implementation strategy and the appropriate institutional arrangements will give us the means to work towards a transport system which genuinely answers our country's and our people's developmental needs. As this falls into place, we will indeed be ÔMoving South Africa'.

Mac Maharaj
Minister of Transport

A NOTE ON THE TIMING OF THIS PUBLICATION

In the past it was customary for government departments to publish their Annual Reports anything from 6 to 18 months after the close of the financial year to which the Report related. One of the major reasons for this was the statutory requirement to publish audited financial statements annually. For convenience, these would usually be included in the Annual Report, with the result that the Report became hostage to the time taken to complete the auditing process.

We in the Department of Transport have become concerned about the time lag between the end of the financial year and the publication of the Report. We want our stakeholders to receive a reasonably up-to-date - and therefore useful - account of our year's activities. So we have set ourselves the target of releasing our Annual Report within three months of the close of the report year. This year we have not quite met the target, but we have come in under four months.

The consequence of this tighter timetable is that this Report comes to you without any financial statements included. These will be published later this year as a stand-alone supplement. We are aware that the Auditor-General's office is trying hard to streamline the auditing process, so we expect to be able to put the supplement out around September/October 1997.

MANAGEMENT SERVICES

CHIEF DIRECTORATE MANAGEMENT SERVICES

INTRODUCTION

The 1996/97 financial year saw the Chief Directorate: Management Services taking its cue from the White Paper on National Transport Policy and the White Paper on Public Service Transformation as well as the Department's own transformation programme.

The Chief Directorate went through two successive rounds of restructuring. The first round resulted in a more suitable and effective deployment of Human Resource and organisational capacities, while the second effectively down-sized the Chief Directorate by 10,69%. The current organisation now reflects a greater harmony between strategic objectives, resource allocation and organisational structure. We have also transformed our approach to servicing the rest of the department by focussing on client needs and creative problem solving rather than bureaucratic regulation.

Some of the important initiatives which have already been taken and which will be finalised in the coming financial year include:

• A rolling programme of human relations workshops which will see the entire departmental staff going through a planned process to deal with softer human resource issues such as gender, race, management style, motivation, and the fears and anxieties associated with change.
• Further streamlining of corporate services to the Department through effective down-sizing accompanied by re-skilling and training and the deployment of more sophisticated and relevant technology.
• The formation of focussed and multi-skilled task teams which will assist line management in preparing and implementing the transition to agencies.

The Chief Directorate faces many challenges in the coming year, but I am confident that it will emerge from the third phase of our transformation leaner, fitter and more effective still.

Dipak Patel

Chief Director:Management Services

FUNCTIONS

• Optimise the use and development of human resources;
• Optimise administrative processes and deliver a responsive and effective administrative service;
• Design and implement communication strategies aimed at effective internal and external communication;
• Provide efficient and reliable information technology services;
• Provide sound legal services;
• Promote efficient use of government motor transport;
• Ensure streamlined co-ordination of departmental and ministerial activities.

REPORTS FROM THE DIRECTORATES

Directorate Human Resource
Management and Organisational Development

Sub-directorate Human Resource Management

Human Resource Management

During the report year the Sub-directorate formulated 11 sets of policy in the following areas:

• Personnel Procurement Policy;
• Policy on gender matters;
• Policies regarding sound personnel practices;
• Policy regarding recognition for outstanding performance;
• Career planning policy; and
• Policy regarding social responsibility.

The purposes of these policies are:

• to develop and manage available human resources to the full;
• to put in place fair and effective procedures and processes for the selection and deployment of staff to meet organisational needs and promote representativity;
• to attract and retain high quality staff and to enhance their performance and motivation through appropriate remuneration and conditions of service;
• to foster productivity and effectiveness by optimising and sustaining individual and team performance;
• to provide information and advice on human resource matters; and
• to provide proper career planning, staff development and counselling for all members of staff.

Policy and planning

In keeping with a directive from the Department of Public Service and Administration, the Department registered seven special projects:

• Departmental Business Plan
• Draft Affirmative Action Policy
• Career planning
• Basic educational development (Senior Certificate)
• RAU initiative (Postgraduate qualification in Transport)
• Bursaries allocation scheme
• Continuation of training agreements with universities and technikons with regard to the practical training of engineers and industrial technicians.

Future projects:

The Sub-directorate has the following five draft policies in hand and is about to finalise them in the very near future:

• Affirmative action policy;
• Completion of an extensive Management Manual;
• Policy regarding compensation for outstanding achievement;
• Transformation management policy; and
• Policy relating to the establishment of agencies.

Labour Relations:

We successfully carried out the following activities during the 1996/97 report year:

• Training of management and staff in the new Labour Relations Act;
• six disciplinary hearings were held;
• four grievance hearings were held;
• five cases were referred to conciliation boards;
• nine cases were concluded in the Industrial Court; and
• there were three major rounds of negotiation/consultation with organised labour on a range of issues.

Future projects:

• Negotiating the Constitution of the Departmental Bargaining Council;
• Recognition agreements;
• Negotiating accreditation by CCMA in respect of conciliation, mediation and arbitration;
• Training of supervisory and management staff in procedural matters and relevant labour legislation; and
• Developing policy with regard to participatory management.

Training and Development

Approximately 300 members of staff were trained in the procedures required to ensure consistent application of the second and third notch performance-recognition policy. The following projects were carried out successfully during the 1996/97 report year:

• Grade ten and twelve education scheme (23 grade twelve and two grade ten candidates were selected and began their education during 1997);
• ABET training (a staff audit was conducted and 28 members of staff were identified for training; ten have commenced with literacy and numeracy training);
• Competency based training was undertaken;
• Monitoring of extended training (occupation-specific external training with regard to line management, computer competence and other external training);
• Improved bursary administration (85 members of staff are in the process of improving their qualifications, 28 through bursaries and 57 through study aid);
• Development of various internal training courses.

Future projects:

The following projects are receiving attention:

• Retraining of management;
• Multi-skilling;
• Computerisation of bursary administration;
• Establishment of a training database;
• An improved system to monitor occupation-specific training.

Sub-directorate organisational development

The following investigations/projects were completed during the 1996/97 report year:

• Restructuring Phase III of the Department, in which the establishment was decreased from 1 109 to 1 053 posts;
• Participation in a post-evaluation project co-ordinated by the Department of Public Service and Administration;
• Completion of job evaluations on Auxiliary Services Officers;
• Adjustment of Personnel Administration Standards for Ship Surveyor and Avionician;
• A viability study into the outsourcing of departmental aircraft maintenance;
• Review and upgrading of several posts to create a more effective and flatter structure;
• Participation in project teams involved in the planning and implementation of appropriate accommodation for the Department and relocation of the Directorate: Road Traffic Education and Communication into the Forum Building.
• Reorganisation of work flow and procedures of administrative personnel at the Marine Division: Cape Town, together with the compilation of job descriptions.
• Involvement in coordination of the Business Plan of the Chief Directorate: Management Services.
• Implementation of job performance forms for all personnel in the Department.

The Sub-directorate conducted appraisals of 120 labour-saving devices and other ad-hoc investigations.

Future projects:

• Involvement in a human relations transformation project which aims to adapt personnel to the changing environment of the Department.
• Further work on design of model job descriptions and monitoring of their implementation.
• Ongoing departmental restructuring (alignment of functions) in preparation for the impending creation of agencies.

Directorate Administrative Services

Sub-directorate Human Resource Administrative Services

Staffing levels

The total number of vacancies remained at an average level of 21,08% of the approved establishment of 1 053 posts.

• 75 officials were promoted in rank.
• 103 officials were awarded special recognition.
• A total of 64 and 29 officials were nominated for 2nd and 3rd notches respectively during the financial year.
• Long service awards were granted to 8 officials in recognition of 20 years and to 4 officials in recognition of 30 years of loyal service.
• A total of 181 officials applied for the voluntary severance package during the report year. 121 of these applications were approved and 58 turned down.

Representivity

The Department is committed to the Government's policy of Employment Equity and the promotion of representivity in terms of ethnic origin, gender and disability. We are very conscious of the need to maintain a dynamic equilibrium in our staff complement, balancing energetic promotion of representivity with the retention of existing specialist capabilities and the development of a strong new skills base. We support workplace cultural change as a key component of restructuring and right-sizing, and we place great value on taking the transformation process forward through informed consensus and active participation on the part of our staff.

Maintaining this delicate balancing act does not immediately get representivity levels right.

The Department of Transport is particularly dependent on engineering, economic analysis and other specialist and technical skills which were not previously created in any significant numbers in the disadvantaged sectors of our society. This makes it difficult to reach the representivity levels we aim for in a range of occupational classes, and this situation is exacerbated by our inability to compete with private sector salaries in these skills sectors. However, we are making slow but steady progress, as the graphics and tables below illustrate.

Sub-directorate Communication

The Sub-directorate Communication carries the responsibility for the internal and external communication efforts of the Department of Transport. To achieve its main aim, that is, to co-ordinate departmental communication efforts and to develop a more proactive communication approach, the section set itself some targets for 1996/1997. These targets included improving the corporate image of the department, creating more effective information flow, developing better media relations and building an interactive and dynamic internal communication process.

• As a means to achieving these targets, the following activities were initiated during 1996/1997:
• To solve the under-staffing problem, two vacant posts were filled;
• A communication forum was established, creating a mechanism for a freer information flow in the department as well as co-ordinating the different directorates' communication efforts;
• The first in a planned series of Media Days was held, acquainting members of the media with the wide range of functions and responsibilities of the department and stimulating an atmosphere of openness and transparency;
• The internal newsletter became a monthly, instead of a quarterly publication;
• Official business cards were standardised;
• A number of informal internal communication efforts were launched, allowing people from different sections of the department to get better acquainted;
• A project to commemorate certain public holidays among DoT staff was started, with appropriate promotional materials being produced;
• Extensive media coverage for various key DoT projects was arranged, including important road openings, the Maputo Development Corridor and the launch of the White Paper on National Transport Policy;
• A concerted effort was launched to open up communication channels with Provincial Transport Departments.

Future Developments

The Sub-directorate has made some rapid strides towards achieving its goal. During the 1997/1998 year, it intends to focus on even better co-ordination of internal and external communication, to bring about a unified and centred flow of information to the public. From 1 May 1997, the Sub-directorate will be restructured into a full Directorate, combining its own functions more tightly with the communication functions of the Ministry and the Cape Town Parliamentary Office. More vigorous and effective communication methods and channels will be investigated and used to reach a wider range of audiences than before.

Sub-directorate Information Technology

The following projects were successfully carried out in the report year 1996/97:

• Implemented the project management policy within the Sub-directorate Information Technology;
• Finalised the network infrastructure upgrade;
• Developed a financial reporting system for the Chief Directorate: Management Services;
• Developed a draft Intranet solution for the Department;
• Developed a Year 2000 awareness campaign within the Department of Transport;
• Completed Phase I of the Project Information Technology (PIT) document;
• The data capturing section processed 25,322 batches consisting of 120,819 forms.

Future Projects

• Develop an integrated Civil Aviation and Shipping Competence information system.
• Implement the policy documents which have been developed;
• Implement Phase II of the Project Information Technology (PIT) document;
• Fully implement a departmental Intranet to share information and improve internal communication;
• Assist the future agencies to understand their information needs and to create their own Information Technology infrastructure.

Directorate Legal Services

The Directorate Legal Services strives to provide an efficient, professional and dynamic legal service to the Minister, the Department and certain statutory bodies in respect of the rendering of legal opinions, the drafting and checking of legislation, contracts and other agreements, the handling of litigation, administrative enquiries, statutory applications and participation in enquiries and/or investigations in terms of applicable legislation.

Projects successfully attended to during the report year 1996/97:

• Due to the proposed restructuring of the Department, the Directorate has been involved in the drafting of legislation and other matters which have a legal bearing on the restructuring process.
• Members of the Directorate attended the International Diplomatic Conference on Hazardous and Noxious Substances, and the 74th Session of the Legal Committee of the International Maritime Organization in London during the period under review.
• In one matter involving the falsification of an American pilot's licence the Department went to the length of bringing two witnesses from the USA to testify on behalf of the State.
• During the year under review the Directorate furnished 316 legal opinions, of which 126 were oral and 190 written. In addition 32 pieces of legislation, including notices and proclamations, were drafted or scrutinized, while 80 contracts, agreements and international agreements were either drafted or scrutinized. 33 litigation matters, of which 27 originated in the Supreme Court, received attention in addition to a number of matters originating previously which had not been finalised in the previous report year.

The Directorate consists of 7 legal officers who are responsible for the above activities. Its budget for the year under review was approximately R1.6 million.

Sub-directorate Government Motor Transport

Projects attended to during the report year 1996/97:

• Co-ordinated the process of developing policies, guidelines and standards in respect of procurement, management and operation of Government Motor Transport;
• Administered and/or monitored adherence to and the effectiveness of policy;
• Administered the self-funded insurance scheme for subsidised motor vehicles.

Future projects

• Consult and advise provincial departments on the restructuring of motor transport in the provinces;
• Investigate the feasibility of outsourcing Government Motor Transport and run a pilot project for the National Department in this respect;
• Restructure the subsidised motor vehicle scheme;
• Go out on tender and award a contract to a private sector company to provide a managed maintenance function for government vehicles;
• Restructure the method of providing vehicles to political office bearers.

Parliamentary and Ministerial Services

The functions of the Parliamentary Office are to:

• co-ordinate the interface between the Department, Minister and Parliament, in particular further developing relations with Parliamentary standing committees on Transport, party study groups and Parliamentary officials;
• provide the Minister with timely, high quality, factually accurate, politically transparent responses to parliamentary questions and interpellations, liaising continuously with HQ technical staff;
• manage the process of piloting legislation through the National Legislature;
• build a positive public image of the policies and performance of the Department, the Minister and the Director General amongst the Department's customers, the transport industry and the public at large.

REPORT FOR 1996/97

Legislation

A number of Bills and Conventions were steered through Parliament in the report year, resulting in the following ratifications:

• International Air Services Amendment Act - Act No. 10 of 1996
• Road Accident Fund Act - Act No. 56 of 1996
• National Roads Amendment Act - Act No. 24 of 1996
• The International Convention for the Prevention of Pollution from Ships Amendment Act - Act No. 66 of 1996
• National Road Traffic Act - Act No. 93 of 1996
• Wreck and Salvage Act - Act No. 94 of 1996
• Aviation Laws Amendment Act - Act No. 98 of 1996

Questions answered in both Houses:

There was a dramatic (267%) increase in the number of parliamentary responses given during the report year as compared to the same period in 1995/96. (See table below)

Relations with Standing Committees and Study Groups

These continued to be constructive and harmonious. The Parliamentary Office provided input and logistical support to various public hearings of the National Assembly Portfolio Committee and organised some 20 committee briefings, both single and joint, on the following issues:

• The Department's policy and legislative programmes for the year;
• The Green Paper and White Paper on National Transport Policy;
• Specific areas of policy development such as public/private sector national road financing mechanisms (the BOT principle), the prospects for concessioning of commuter rail and bus services and spatial development initiatives (Maputo corridor and metropolitan corridors);
• All items of Departmental legislation as they passed through the Committee stage of the legislative process;
• The National Taxi Task Team process;
• Proposed changes to the operation of the Road Accident Fund (ex-MMF);
• Restructuring of state assets: the NFA framework, and options for strategic equity partnerships and privatisation of various Transnet assets.

The office was requested to maintain a continuous presence and input to the ANC Study Group, and one or more Parliamentary officers were always present at these meetings. The Chief Parliamentary Officer attended various policy conferences and promotional events, including an International Investors' Conference on the Maputo Development Corridor hosted in Maputo from May 6 to May 7, 1996.

Internal developments

The Parliamentary Office made significant advances in its use of information technology. Its links to HQ and to the media were greatly enhanced by access to the Departmental wide area network and the Internet e-mail connections which this opened up. We were able to use e-mail to respond rapidly to media reports and to place keynote articles on policy and strategy in the printed media. We also managed to ensure - through the South African Communication Services (SACS) - that all significant Departmental documents, press releases and Ministerial speeches were posted to the World Wide Web.

However, we discovered that dependence on third party web communications did not give us the flexibility and interactivity that we needed; so, towards the end of the report year, we went out to tender for the provision of a dedicated Web-site of our own. The site was under construction by March 1997, and we were expecting to go live by June 1997.

Storage and processing of internal information also advanced significantly. We created databases to store and process client data, staff leave, media contacts and Parliamentary questions, and we transferred our budgetary information to spreadsheet format.

The future

The 1997/98 report year will see major restructuring of Parliamentary and Ministerial Services. As from 1 May 1997, a new Directorate Communication and Parliamentary Services will be created, which will see the existing Sub-directorate Communication drawn into a unified management structure with Parliamentary and Ministerial Services. This will facilitate a much tighter integration of the communication functions of these three components, as well as more professional co-ordination of the communication programmes of the various line functions within the Department. The first major initiatives of the new Directorate will be the launch of multi-media communication programmes on the minibus-taxi regulation and stabilisation process and the re-shaping of South Africa's road traffic management and safety strategy.

Directorate: Research and Development

The research programme has focussed on the implementation of the goals of the White Paper. As a result, certain of the projects have had a policy and implementation focus rather than being research in the traditional sense. This has meant that some of the monitoring processes previously used - e.g. getting outside researchers to review the research - have not been applied to all projects. Where this has been the case, internal monitoring procedures have been set up to ensure that the quality of the research is acceptable. Some difficulties were experienced in getting the research programme up and running early in the new financial year.

The Post Graduate Diploma in Transport Management appears to have been a successful initiative. 24 students completed the diploma in 1996 - 15 black males, seven black females and two white females. A similar number of students were registered for the beginning of 1997.

The Centres of Development operated relatively successfully in 1996. Over the year, 57 students were funded, while the structure and management of the Centres of Development was reviewed to ensure more effective use of funding. As a result, three regional co-ordinating structures have been set up. There are also clearer guidelines in place for 1997. The Department has set certain employment equity targets for the programme.

Projects undertaken in 1996/97:

Division Research

The following were the main activities which were funded under this programme (although there were several smaller projects):

• Developing a new airports and airspace policy
• An investigation into code-sharing
• An investigation into a Maritime Safety Agency
• Producing the Annual Transport Statistics publication
• A database of heavy vehicles crossing South Africa's borders
• A joint investigation with the Dept. of Mineral and Energy Affairs into diesel midibuses
• The application of the K-Mould to improve pavement design and compactability
• Developing a course for transportation capacity building in the provinces
• GIS based transport costs and accessibility

Division Human Resource Development

• Management and funding of the RAU Postgraduate Diploma in Transport Management for the training of future management for central and provincial government and parastatal institutions.
• Management and funding of the Centres of Development at tertiary educational institutions. (The Centres of Development focus on post-graduate training in all aspects of transport.)
• The Directorate also provided some funding towards the Certificate and the Advanced Certificate in Transport.
• Fostering co-operation on transport between universities, technikons and the Department of Transport.

Division Information

• The provision of a library service for the Department
• The dissemination of research findings through the publications section
• The development of a database for the South African Interchange node
• Investigation into the computerisation of the library and into setting up an information database for sharing information between transport libraries

Policy Work

• Contributing to the White Paper on National Transport Policy
• Starting the Moving South Africa project which aims to provide a long term transport strategy for South Africa.

Future projects:

• The Department has been officially appointed as the South African node for the World Interchange Network. The service has been up and running from mid-March 1997. Although improved linkages have been set up with the other transport libraries, new information staff will only be employed during September 1997.
• The library will be computerised in 1997 which will assist in this process.
• Only one Transport Bulletin was published in 1996/7 but regular publication is intended.
• Moving South Africa will be a major activity for the Directorate in 1997/98. A long term transport strategy will be developed. Moving South Africa will be completed in the first half of 1998.
• With the restructuring of the Department and the formation of agencies, the Directorate has an increasingly important role to play, and will be one of the few sections of the Department which will expand over the next few years. In particular, there is a need to build up internal transport policy research and policy analysis capacity. This will be a major activity for the Directorate over the next two years.

CIVIL AVIATION AUTHORITY

INTRODUCTION:

1996 has again demonstrated the major role that civil aviation plays in the development and growth of South Africa. On all levels and within all activities of the industry growth was evident and there can be no doubt that aviation is driven by the commercial advantages it can gain from, and provide to, an expanding South African economy. While tourism, freight and business travel are the main sources of revenue for airlines and air service providers, the Civil Aviation Authority (CAA) is committed to supporting and encouraging growth across the whole spectrum of operations by air carriers, and constantly seeks new ways to promote aviation as a fast, safe and cost-efficient transport mode.

Safety has been maintained at an acceptable level within the mass airline passenger environment. Unfortunately the same cannot be said for our general aviation and recreational flying activities, where a slight increase in the number of reported accidents was recorded. Nevertheless, aviation still remains the safest mode of transport and the CAA remains committed to reducing the occurrence of accidents to as close to zero as possible.

The general safety of our skies has been ensured by the high standard of services provided by the Air Traffic & Navigational Services Company ( ATNS), whose actions are continuously monitored by the CAA. Increased aircraft movements at the major airports have been accommodated with ease and safety. Appropriate actions were instituted where incidents or accidents identified shortcomings, and work continued on the Regulatory Review Project which is now being finalised and will result in the implementation of a complete new set of aviation regulations in the latter part of 1997.

A joint investigation with SADC member states on the implementation of the future satellite navigation system in the region was initiated. The SADC plan - which is being co-ordinated with efforts being made by the Northern African region - will in the longer term address deficiencies in airspace management over the continent as a whole, while in the short term delivering considerable improvements to aviation safety in the SADC region. The CAA has also implemented a research project to develop a National Policy on Airports and Airspace Management for South Africa.

The process of review and updating of bilateral Air Service Agreements was pursued with vigour and made significant progress - including, amongst other things, a major new agreement with the USA. The result has been an increasing number of flight frequencies and the establishment of services to a wider spread of destinations. On the other hand - though less significantly - we have seen some operators reducing services or withdrawing from the South African market, either as a result of their own internal financial reviews or because of the development of alternative hubs. Overall competitiveness and service levels have improved in the industry.

The research project into the creation of a Civil Aviation Safety Agency has started and I expect to receive its recommendation for my consideration during September this year. Our target date for the creation of the new agency is 1 October 1998.

I am confident that the increased operational autonomy and technical expertise which will derive from the establishment of an industry-driven, professionally managed agency can only bring further benefits to all users and participants in the civil aviation industry.

Rennie van Zyl
Chief Director : Civil Aviation Authority

FUNCTIONS

The following functions are performed by the Chief Directorate Civil Aviation Authority:

• Maintain aviation safety through the establishment and maintenance of standards for airworthiness, flight operations, personnel and airport licensing and general safety administration.
• Control airport infrastructure and airspace through the setting and monitoring of air traffic control service standards and navigation and approach aid equipment in terms of ICAO guidelines, together with the collection, verification and dissemination of aeronautical information.
• Regulate air transport affairs through the negotiation and maintenance of bilateral air transport and bilateral search and rescue agreements and through the management of the RSA's obligations in terms of conventions with multilateral organisations.
• Investigate aviation accidents/incidents to establish their probable causes and take effective preventative measures to prevent their recurrence.
• Administer funding for the training of pilots, air traffic controllers and flight engineers from previously disadvantaged communities.

REPORTS FROM THE DIRECTORATES:

Directorate Aviation Safety

The Sub-directorate Flying Inspectorate's activities have been severely hampered by the worsening, and now serious, shortage of flying inspectors. This has impacted negatively on the inspectorate's ability to meet its goals and objectives for the report year, to the extent that it has had to restrict its activities, in the main, to those of a holding nature only.

The five primary functions of the inspectorate, and comments on the achievements in respect of these functions are as follows:

Establish flying and operational standards.

Departmental inspectors have in the past carried the responsibility of conducting flight tests for the issue of air transport pilot's licences and the issue and renewal of flying instructor ratings. This function has now been privatised, with the Authority appointing designated examiners to conduct these tests on its behalf. The system appears to be working well, although an assessment in respect of the maintenance of standards has yet to be made.

Monitor flight training and operational standards.

The inspectorate has endeavoured to keep up the level and quantity of inspections of licensed operators and training establishments. While this function has been given a high priority rating, the inspections have nonetheless been largely limited to new operators and a sampling of the existing operators.

Manage departmental aircraft.

Departmental aircraft, which are crewed by members of this inspectorate, are used primarily for flight calibration of en-route and terminal navigation equipment (VOR's) and instrument landing systems. We have been able to meet our calibration schedule both internally and outside South Africa's borders. The departmental aircraft have also been used for ministerial flights to internal and external destinations.

Compile and test instrument procedures.

This is an ongoing exercise in which we check the integrity, both of existing procedures and new and revised procedures. In the main, new procedures have been confined to airports made available by the SAAF for civilian use.

Initiate and document aviation regulatory documents.

This inspectorate has made its inspectors available to the various work groups and committees engaged in drawing up the new regulations due to come into force during 1998. The inspectorate has also routinely recommended modification of outdated regulations to the Minister on an as-required basis.

The secondary functions of this inspectorate are many and varied. Where time and human resources have permitted, the inspectorate has contributed to the following functions of the Chief Directorate:

• general public liaison;
• keeping abreast of aviation technology and operational trends;
• advising on Air Service Council licensing and hearings;
• maintaining examination policy in respect of ICAO and international technical requirements;
• managing and maintaining the on-line examination database;
• communicating with ATNS in respect of PANSOPS, work groups, RNP, and R.NAV implementation;
• participating with SADAC, NASCOM and IORRA and in matters relating to WGS84;
• general office administration;
• monitoring incidents and accidents, and dealing with follow-up issues;
• co-ordinating and monitoring the issue of licence validations;
• monitoring special flight operations.

The Sub-directorate Airworthiness was involved in the following inspections and other activities to ensure compliance with requirements:

• 221 mechanical modifications were approved on the following categories of aircraft:

LS/1 28
Fixed Wing Aircraft 134
Rotorcraft 49
Engine + Propellers 5
Balloons 1
Equipment 4

• 75 Manufacturing, Processing and/or Testing (M/P/T) organisations were inspected, including 9 new and 8 closed organisations.
• 196 avionic & electrical modifications were approved.
• A noticeable growth in aircraft numbers was experienced, although smaller than the previous year. The total increase for the year was 247 compared with 266 for 1995/96. 185 Commercial aircraft were imported and 216 new sports aircraft were registered.
• Two new airworthiness directives, one applicable to aircraft with a maximum certified mass of 5,700 kg or less, and one for aircraft above 5,700 kg, were issued.
• There were 199 South African and 9 Namibian licensed AMO's, which represents an increase of 12 facilities. Regular inspections of all AMO's were conducted to ensure compliance with maintenance standards.
• 8 organisations ceased operations, 9 new organisations were approved and 8 organisations applied for approval. There are currently 75 approved organisations.
• 2 134 transactions relating to 6,481 aircraft were conducted, generating income of R539,000. Comparative information on numbers of registrations according to aircraft type is shown in the right-hand table.

Sub-directorate Aviation Personnel Licensing

The Sub-directorate experienced a growth in its activities and, although suffering from staff shortage, was able to meet the increased need for service caused by this growth. A total of 20,558 transactions involving the issuing, renewal and amendment of approximately 9,950 pilot licences was processed during the year. 7,800 pilot examination subjects were written on the online system and at the various outstations, while 100 836 postal documents were dealt with. Further improvements will be made to the existing examination system.

The Sub-directorate is planning to implement a new computer system for licensing which will be in line with the new Regulations to be promulgated in June 1997. We also intend to have completed computerising the Registration section by the end of the coming report year.

The Sub-directorate expects to become part of the new Aviation Safety Agency to be established in 1998 and is in the process of changing its culture to one which is fully geared to servicing customer demand.

Sub-directorate Aviation Security Policy

Personnel from the Sub-directorate visited the nine airports operated by the Airports Company Limited to check that access control and the security of airports and air carriers were within the requirements of the Minimum Aviation Security Standards document. The national Civil Aviation Security Programme was implemented. A position paper addressing all the legislation, regulations, directives and procedures dealing with airport security was composed and will be finalised in the near future. Inspections with regard to the safe carriage of dangerous goods were carried out and a number of prosecutions for transgressions of the regulations were instituted.

The Sub-directorate will continue to fulfil its role of protecting the safety of the general public, whilst ensuring that air-travel remains free from danger, fear or anxiety. Regular inspections of airports will ensure that security systems are fully functional and that operating staff are adequately trained in the various roles they fulfil, whether related to access control, search procedures, surveillance or other security procedures. Inspection of operators and cargo agents to prevent the carriage of dangerous cargoes will be an ongoing priority in terms of the rules and regulations pertaining to the conveyance of dangerous goods by air.

Directorate Aviation Networks

Sub-directorate Standards

During the year the Sub-directorate participated in an ongoing programme of working groups with external consultants Africon to revise and enhance the process of standards enforcement in this sector. This included a review of current legislation and the preparation of draft amendments where necessary.

The Sub-directorate attained its goals in terms of monitoring communication-, navigation- and approach-aids systems, but due to the lack of sufficient skilled personnel, was unable to meet its targets in respect of airport electrical installations. However, we expect to be in a position to recruit a suitably skilled person to carry this work forward in the 1997/98 year.

We carried out surveys at a number of aerodromes to monitor the quality of rescue and fire fighting services, but were unable to proceed with enforcement owing to the absence of empowering legislation. It was found that virtually all airports under the control of the Airports Company Ltd were scaling down, in some cases right down to the recommended ICAO minimum, with no backup equipment for breakages. The main reason for this trend appeared to be cost. However, the situation will not be allowed to continue; as soon as the necessary legislation is in place all necessary steps will be taken to ensure the rectification of standards to a fully satisfactory level.

The issue of guaranteeing acceptable safety standards will require careful consideration in the light of the proposed devolution of CAA functions to an autonomous agency. This section will give careful consideration to the various models proposed for the agency and strive towards a system where financial pressures have the least possible effect on safety standards.

Sub-directorate Air Traffic Control

The Sub-directorate was actively involved in the process of re-drafting the Air Navigation Regulations. This was completed by year end, for promulgation later in 1997. Input was also given to the new National Airspace and Airports policy and this will continue through the 1997/98 financial year.

Extensions to controlled airspace, providing for increased levels of service, were approved by the National Airspace Committee of which the Sub-directorate is a member.

A total of 1,397 aviation incidents was reported during the year, the majority of which were minor. Only 24 were of a more serious nature; these were thoroughly investigated and corrective measures implemented to prevent recurrences.

The number of Air Traffic Service Units inspected during the year was increased to nine. Standards were found to be high.

Two vacant posts were filled during the year, bringing the staff complement up to full strength.

Numerous overseas conferences and work/planning groups were attended by members of the Sub-directorate and progress towards implementation of the new satellite-based communication and surveillance systems continued. Investigation into the transition to this new system is one of our major targets for the 1997/98 financial year.

Sub-directorate Aeronautical Information Service

The new user-friendly A5 Format AIP was released in May 1997 and was received with great enthusiasm by all in the aviation community. Substantial savings in printing costs were achieved by the publication of the monthly Notam Summary and AIC and AIP Supplements in English only.

Over the long term we envisage converting the whole Integrated Aeronautical Information Package into electronic format, as well as the aeronautical overlay for the 1:500,000 and 1:1,000,000 World Aeronautical Charts (WAC).

Sub-directorate Flight Inspection

The Sub-directorate successfully performed routine flight inspections of all radio navigational aids in the RSA during the 1996/97 financial year. Neighbouring countries such as Namibia, Zimbabwe, Lesotho, Swaziland, Mozambique and Seychelles were also serviced during this period.

The following radio navigational aids were flight inspected within the RSA:

20 Instrument Landing Systems (ILS) - Quarterly
26 VHF Omni Range Systems (VOR) - Bi-annually
17 VHF Omni Range Systems (VOR) - Annually

The following radio navigational aids were flight inspected over border:

2 Instrument Landing Systems (ILS) - Quarterly
7 Instrument Landing Systems (ILS) - Bi-annually
22 VHF Omni Range Systems (VOR) - Bi-annually

Sub-directorate Airport and Airspace Development

All our targets for the financial year were achieved as planned, and we were able to meet the target dates set for each activity.

A large portion of the Sub-directorate's work depends on the scope and pace of developments in the industry outside. Our task in this respect is to respond positively and supportively to new initiatives in aerodrome construction, advising developers or owners on the requirements to be met to enable the licensing of new installations or the approval of upgraded facilities. Licensed aerodromes - currently numbering approximately 200 - have generally been found to be kept well up to the prescribed standards and conditions, and are thus not individually inspected every year unless a complaint is received from the aviation industry. Inspections of the former state airports have begun, with George and Port Elizabeth airports having been completed.

The baseline plan for the coming year is to maintain the services delivered to the aviation industry at existing levels. This will allow the necessary attention to be given to working out the structures and funding mechanisms through which the Sub-directorate's activities can be absorbed into the work of the new Aviation Safety Agency.

Directorate Air Transport Regulation

Division Multilateral Air Transport Affairs

This Division oversees South Africa's adherence to the terms of ratified conventions and protocols and manages its obligations to international organisations. To comply fully with international aviation standards, the division ensures that all State Letters received from the International Civil Aviation Organisation (ICAO) are attended to within the time frame set by ICAO. More than 150 State Letters were received during the period under review.

South Africa's active participation in the activities of the African regional organisations and ICAO is vital to ensure that the maximum benefits from these organisations are obtained. Active participation strengthens these organisations, while also helping to ensure a pattern of development in Africa that does not conflict with South African policy. The Department therefore actively promotes international and regional co-operation within the framework of its international aviation policy.

The Civil Aviation Sub-committee was established in July 1995 to co-ordinate South Africa's relationship with African regional organisations. Membership of this committee consists of various civil aviation stakeholders, including the Airlines Association of Southern Africa and SATOUR. South Africa was the Chairperson of a task force which studied the viability of SADC's proposed Southern African Regional Air Transport Authority (SARATA). The task force came to the conclusion that SARATA was no longer acceptable and proposed terms of reference for an advisory body.

South Africa hosted the 27th Meeting of the Joint Directors of Civil Aviation and Chief Executive Officers of Aviation Service Providers in March 1997. All 12 SADC member states attended the meeting.

South Africa became a member of the African Civil Aviation Commission (AFCAC) in 1996. AFCAC is a specialised agency of the Organisation of Africa Unity (OAU). The first meeting attended as a member of AFCAC was the Air Transport Committee Meeting in September 1996. The participation of our delegation was warmly welcomed.

Division Bilateral Transport Affairs

The division is responsible for the negotiation and maintenance of bilateral air transport agreements. These agreements are vital instruments in ensuring proper regulation of scheduled air services between the Republic and various other States. To date, close to 100 air services agreements have been negotiated.

The year under review witnessed the further normalisation of international aviation relationships between the Republic and the international community. A total of 23 bilateral discussions on aviation matters was held, out of which six new air services agreements emerged. 17 sets of bilateral discussions were held to renegotiate technical aspects dealing with aircraft operations including flight frequencies, entry points, 5th freedom traffic rights, route schedules and code-sharing. 54 foreign air carriers operated scheduled air services to the Republic.

The number of non-scheduled flights to the Republic decreased from 166 to 123, thereby either complementing existing scheduled services or providing services where no scheduled services existed. Although the number of applications for non-scheduled services decreased, there was a tendency towards operating flights in series rather than as one-offs, which resulted in 450 flights to and from South Africa during the period under review.

The Sub-directorate will continue to strive towards improving South Africa's current regulatory framework of bilateral air services agreements to ensure sufficient capacity for the expected continued growth in tourism. This objective will be pursued in line with the policy requirements of encouraging competition, safeguarding national interests and stimulating South African participation in the international market.

Division Specialised Administration

The aim of this division is to provide logistical services to the Chief Directorate with regard to provisioning administration. During the period under review 275 orders for goods and services were processed and finalised. The office also provided a support service with regard to the compilation and control of the budget.

The Division contributed towards the training and development of personnel in the Chief Directorate. Through co-ordination by the Division, officials of the Chief Directorate were nominated for and attended courses offered both by SAMDI and the Department's own training officers.

The Division also handled and finalised a further 21 cases relating to incidents/accidents at former State Airports. An amount of R14 748,82 was written off as a loss against the Department as a result.

The South African Search and Rescue Organisation (SASAR) Secretariat facilitated effective co-ordination between all signatory companies/departments within the SASAR organisation, thereby providing South Africa with an effective domestic and international Search and Rescue organisation.

SASAR is awaiting in-principle approval by the Department of Foreign Affairs of the Search and Rescue Agreement which will be negotiated with 14 countries bordering on SASAR's area of responsibility. It is expected that negotiations will begin shortly.

In order to ensure continuity, two SASAR coordinators' training courses were held in Cape Town. 32 people completed these courses, including a number of participants from neighbouring countries.

In September 1996, SASAR organised a very successful conference in Cape Town on behalf of the International Maritime Organisation (IMO). Delegates from 22 countries attended the conference which dealt with Maritime Search and Rescue (SAR) and the Global Maritime Distress and Safety System (GMDSS) in the Western Indian Ocean, Persian Gulf and Red Sea regions.

An ultra-long range aircraft able to conduct searches in SASAR's area of responsibility at the South Pole is now one of the new resources available to SASAR.

At the time of writing, negotiations are nearing completion between the Department of Transport and Telkom regarding the provision of a Local User Terminal (LUT) satellite tracking station to assist SASAR in locating vessels and aircraft in distress.

At the moment there is no LUT in the Southern Hemisphere and an LUT in South Africa will be able to provide a service to the whole of Africa.

During the course of the year SASAR plans to hold a new round of seminars/workshops in all the major centres countrywide in order to promote the organisation and its services.

Sub-directorate Accident Investigation

During the period under review, 182 South African registered aircraft were involved in accidents. Of these 19 involved fatalities. In total 42 lives were lost.

Regrettably this figure represents an increase of 10.9% on the number of recorded accidents last year. Accidents involving fatalities were up by 90% and individual fatalities by 55%. However, it should be noted that there is no accurate information on the total number of aircraft movements per annum, with only major aerodrome traffic being recorded. Unless this can be determined, there is no reliable yardstick for assessing safety levels in relation to international trends.

A total of 232 reports were actioned by the Sub-directorate and the Accident Review Committee, which represents an increase of 62% over 1995.

REPORT OF THE DOMESTIC AIR SERVICES LICENSING COUNCIL

Administration of The Air Services Licensing Act, 1990 (Act No.115 of 1990).

INTRODUCTION

The Air Services Licensing Act, 1990 (Act No. 115 of 1990), came into force on 1 July 1991 and gives effect to the domestic air transport service policy. This policy provides for a free market-orientated system in which a larger measure of open competition is possible. Although operators enjoy a wider measure of freedom, aviation safety and reliability continue to be of utmost importance.

FUNCTIONS OF THE AIR SERVICE LICENSING COUNCIL

The statutory body responsible for the administration of the Act, the Air Service Licensing Council, was appointed by the Minister of Transport on 16 August 1991.

The Council consisted of the following members:

Mr J Lourens (Chairman)
Mrs TM Masipa (Vice-Chairperson)
Mr D Caras (Member)
Mr T Kekana (Member)
Mr J N J van Rensburg (Member)

During this period the chairman passed away.

Issuing and amendment of licences

During the period under review 19 Council meetings were convened, as compared with the 33 meetings convened during the previous period. On average the Council convened for two meetings per month.

The following applications were submitted to the Council:

1. New applications

APPLICATION	APPROVED	PENDING	REFUSED
Class I (Scheduled services)	1	-	0
Class II (non-scheduld services)	16	2	0
Class III (General)	20	2	0

2. Applications for amendments

APPLICATION	APPROVED	PENDING	REFUSED
Class I (Scheduled services)	2	-	0
Class II (non-scheduld services)	29	1	0
Class III (General)	19	-	0

3. Applications to operate foreign-registered aircraft

TYPE OF APPLICATION	NUMBER
Class I (Scheduled services)	1
Class II (non-scheduld services)	2
Class III (General)	4

The operation of foreign-registered aircraft once again received considerable attention during the period under review. These aircraft are now readily available and although there are decided financial and other advantages to domestic operators, it remains a controversial matter. For this reason the Council handled the applications with circumspection. Strict safety measures were set as conditions for the approval of four applications; the most important being that no passengers may be transported.

The following applications were granted:

4. Notices and special requests to the Council

In terms of the Act, the Council must be advised of any curtailment, abandonment or extension of air services, and of any changes in the particulars contained in the applications.

From time to time the Council also considers special requests of a problematic nature.

Monitoring function

The Council's duties in terms of the Act comprise both the licensing of air services and their monitoring to ensure the continuity of safety and reliability.

To perform this monitoring function effectively the Council relies upon the Department's co-operation. Representatives of the Department supply the Council with the following particulars each month:

1. Inspections of operator's facilities by the Department. The number of inspections performed is reported to the Council with details of findings.
2. Accidents and incidents. Accident and incident reports are presented to the Council for information and in order for it to assess whether any further action may be indicated by the circumstances in each case.
3. Infringements of the Act (Act no. 115 of 1990).An integral part of the Council's monitoring function is to ensure that the domestic air transport industry functions within the framework of the Act and its regulations. However, enforcement proceedings cannot currently be instituted effectively as a result of shortages of specialist personnel in the employ of the Department.

REPORT OF THE INTERNATIONAL AIR SERVICES COUNCIL

The International Air Services Council is responsible for the administration of the International Air Services Act, No. 60 of 1993. Its membership during the review period was as follows:

Mr J J (Japie) Smit, Commissioner for Civil Aviation as Chairman
Mr Johan Lourens, Vice-Chairman
Dr D Mullins, Member
Mr D Schreuder, Member
Mr S Danana, Member

It is with great sadness that we have to report that Messrs. Lourens and Schreuder died during the first half of this period. New appointments to the Council will be announced shortly.

The following applications were presented to the Council:

1. New Applications

APPLICATION	APPROVED	PENDING	REFUSED
Class I (Scheduled services)	1	1	1
Class II (non-scheduld services)	8	1	-

2. Applications for Amendments

APPLICATION	APPROVED	PENDING	REFUSED
Class I (Scheduled services)	11	4	-
Class II (non-scheduld services)	11	8	-

3. Temporary International Air Services Licences

During this period 31 applications for temporary licences were also considered. This indicated the need for Council to review the economic criteria used for adjudicating Class II (charter) Licences, and to provide for larger groups of passengers to states served by scheduled services.

Meetings of Council

The Council conducted 14 meetings during the year under review. Several of these extended over two days, and two were conducted by means of Telkom's telephone conference facility to consider matters of immediate importance. Representations (objections) against many of the applications required extended hearings and careful consideration by Council.

The much publicised complaint by Transnet Ltd (SAA) against the BA/Comair franchise agreement was heard and considered at a special three-day hearing during March 1997.

Incidents

Several untoward incidents were investigated by the Secretariat and presented to Council. These included unauthorised use of foreign registered aircraft and illegally conducted flights. Special hearings in terms of section 21(1)(a) of Act 60/93 were conducted in these instances. One such matter is now under investigation by the Commercial Branch of S.A. Police Services.

CHIEF DIRECTORATE SHIPPING

INTRODUCTION

While the purpose of the Chief Directorate Shipping can briefly be described as being to act as the guardian of safe shipping practice and the maintenance of clean seas around the South African coastline, this function has to be viewed in the context of South Africa's dependence on its maritime environment and the important role that international and locally owned shipping plays in this regard.

The dawning of the post-apartheid era for South Africa has more than ever before focussed attention on the importance of maritime trade between South Africa and the rest of the world. The number of ships calling at local ports and the huge increases in cargo volumes landed and shipped have placed enormous strain not only on port facilities, but also on the marine environment around our coastline. This has highlighted the need for effective control of shipping standards in the interests of maritime safety and protection of the marine environment from oil pollution caused by disasters at sea.

The Chief Directorate Shipping endeavours to ensure ship safety by means of internationally recognised surveys of ships calling at South African ports carried out by highly qualified marine surveyors, as well as by the effective management of ship casualties and search and rescue co-ordination when disasters at sea occur. For this reason two very large and powerful sea-going tugs are on permanent charter to the Department to render assistance to ships in trouble off the South African coastline. The quick response of these tugs has on numerous occasions saved ships and lives at sea and protected South Africa's coastline from potentially massive oil spills and ecological disaster.

In support of the physical inspections carried out by the marine surveyors, the Chief Directorate is also South Africa's accredited representative at the International Maritime Organisation in London, where international safety standards and the laws, conventions and protocols supporting these standards are formulated. The Chief Directorate is consequently the responsible authority for the development and maintenance of South Africa's Maritime laws and its accession to international instruments.

In carrying out these responsibilities, the Chief Directorate has to ensure the provision of effective administrative and logistical support services.

Finally, in accordance with international trends and the Government's goal of right-sizing the Civil Service, the Chief Directorate Shipping is in the process of investigating the possibility of commercialising its operations and becoming an independent Maritime Safety Authority (MSA) by 1 April 1998. We expect the new-found financial independence which will come from the establishment of an MSA to enable the new organisation to fulfil its safety regulation functions even more effectively.

Capt. Brian Watt
Chief Director : Shipping

In giving concrete effect to the Mission, the CDS seeks to:

• develop a maritime awareness in South Africa;
• assist in creating and fostering an economic environment for the Maritime Transport Industry which will allow it to compete on at least an equal basis with the maritime carriers of other nations and with South Afican land-based carriers;
• ensure safety of life and property at sea and the prevention of pollution of the sea by ships;
• ensure fair labour practices such as employee rights, job creation and security with acceptable standards of employee health, welfare and safety in the maritime industry; and
• contribute to the release of the full potential of the maritime industry in South Africa and to the modernisation of our shipping administration.

FUNCTIONS

Ensure shipping competence and supply pollution services in a regional context

This entails the promotion of safety of life and property at sea and the prevention of pollution of the sea by substances emanating from ships. It is achieved by laying down quality and safety standards enforced by appropriate legislation and by maintaining an oil pollution contingency plan in conjunction with the Department of Environmental Affairs and Tourism.

Manage shipping support services

This entails the overall administration of shipping safety and the provision of an administrative service in support of maritime matters, including the administration of legislation and international maritime relations.

ACTIVITIES

In order to ensure shipping competence and supply pollution services in a regional context the following activities are carried out:

Surveys, detentions and prosecutions in respect of ship safety and oil pollution prevention, including crew safety and welfare safety surveys

This activity ensures compliance with domestic and international standards pertaining to the prevention of pollution from ships and installations in SA waters and protection of the SA marine environment through mandatory surveys and Port State Control of foreign ships. It also includes crew safety and encompasses the welfare of seafarers at sea.

The basic aim is to achieve safer ships and cleaner seas. Success is measured by the progress made each year in the reduction of life- and environment-threatening incidents along our coastline.

The following tables reflect the number of safety certificates issued and surveys conducted in the Marine Offices at the seven ports.

Table 1: Safety Certificates issued (Excluding Safety Radio Certificates):

Table 2:Safety Radio Certificates:

Table 3: Surveys conducted:

Actions in 1996/97: some examples of incidents, detentions and rescue operations.

The mv "Togs Beauty" suffered a bunker spill (November 1996). Hundreds of penguins were found drenched in oil on Bird and St Croix Islands, probably the aftermath of the sinking of the "Cordigliera". A large number of penguins were transported by air to Cape Town for further treatment (November 1996). The incident was investigated by the Department and a subsequent report was submitted to the flag state.

The Romanian registered vessel "Valea Alba" was detained by marine surveyors as a sub-standard ship and released after 43 days. The Panamanian bulk carrier "Artemis 2" was detained in East London after it was found that neither of her life boats could be lowered. Her emergency fire pump was inoperable, there were holes in the main deck and a dangerously wasted gangway seriously affected her safety at sea and that of her crew.

A ship-to-ship lightening operation took place in St Helena Bay. The Tanker "Leonidis" suffered engine problems and her cargo was sold to Caltex to allow for rapid discharge at Saldanha. To enable her to enter port she had to be lightened by some 10,000 tons. The ship-to-ship operation was overseen by a ships' surveyor from the Department and conducted by the Pentow Marine salvage company using the "Wolraad Woltemade" standby tug and the tanker "Royal Sphere" as the lightening vessel.

Search and rescue operations were conducted in relation to incidents involving casualty on the ski-boats "Naughty 1", "Harvest Tamara" and "Elipzo".

During October 1996 the fishing vessels "Opkyk" and "Loligo IV" capsized in adverse weather conditions off the Kromme River mouth. 13 Fishermen died in these incidents when foul weather and heavy seas prevented even the NSRI station at St Francis from rendering assistance. A marine surveyor subsequently investigated this incident.

During September 1996 a Court Helicopter recovered five survivors from a life-raft of the sunken bulk carrier "Iolcos Victory". The Japanese fishing vessel "Rioun Maru No 18" picked up 16 survivors and one body from a lifeboat. Three crew members, including the Master, were declared missing. The tug "Wolraad Woltemade" searched the area, but only life-jackets and debris were found.

Management of marine incidents, casualties, wrecks and co-ordination of search and rescue

This activity entails hands-on management and supervision by CDS technical personnel of marine casualties, incidents and wrecks, as well as participation in joint co-ordination of search and rescue operations off the SA coast, including the Namibian coast. The activity is performed to save lives at sea and prevent pollution of the sea by ships.

The aim is to achieve a fast, co-ordinated response by specialised resources dedicated to the containment of disaster/incidents at sea, thereby minimising loss of life and damage to the environment.

Actions in 1996/97:

A total of 48 shipping casualties/incidents were investigated and a total of 16 preliminary enquiries were conducted during the year under review. Four vessels were reported as having caused oil pollution and 12 vessels were detained. 186 Port State Inspections were carried out.

During this period a total of R550,000.00 was collected from shipowners and agents in penalties for pollution of the sea by oil. These incidents were mainly in the ports.

In October 1996, the vessel "Star Michalis" suffered a substantial fuel bunker spill. Without a responsible ship's officer checking the procedure, a start was made on pumping fuel into the only "full" tank on board, instead of the empty tanks. The "full " tank overflowed shortly afterwards. The master was charged with negligence and paid a deposit of R80,000.00.

On 22 October 1996, the fishing vessel "Dassenberg" sustained damage above deck, which was probably caused by heavy seas. The life-raft washed overboard and the inflow of water partly flooded the fo'c'sle. A "mayday" distress signal was sent and the NSRI managed, in appalling weather conditions, to transfer 18 persons to safety. Four crewmen, including the skipper, opted to stay on board. The vessel reached port safely the next day and no lives were lost.

In November 1996 the mv "Cordigliera" was lost in adverse weather conditions with all hands (29 persons) off the Transkei coast. The theory is that the vessel encountered a freak wave which probably broke it in two and caused it to sink within minutes. The CDS was involved in the subsequent enquiry into this incident.

Control of standby tugs and pollution stores

In order to fulfil the Department's responsibility in terms of the Prevention and Combating of Pollution of the Sea by Oil Act, 1981, there is an agreement between the Department and the tugboat contractor, Pentow Marine, whereby the contractor undertakes to provide assistance to ships which develop engine or other problems along the SA coast. This includes towing ships which have collided, or have been damaged, to places of safety or where the danger of oil pollution and damage to the marine ecology will be minimised.

The tugboats have on many occasions been involved in salvage operations along the SA coast, particularly during the stormy winter months around the southern and south-eastern coastline.

It is worth noting that some European countries have followed the South African example and are now using tugs on contract to fulfil the same role. These countries include France, Italy and the United Kingdom.

Drafting and control of Marine Qualifications Standards and Manning Criteria

This entails the drafting of regulations which conform to the International Standard of Training and Certification of Seafarers (STCW) Code. Their purpose is to control standards - both for marine qualifications (deck and engineering) and for the manning of vessels - and to ensure that these standards are written into SA municipal law to suit local marine requirements.

Through this activity the Department seeks to set parameters and guidelines for the SA maritime industry in order to achieve uniform international maritime training standards of a high order. We want to produce high quality seafarers capable of performing their duties in a competent and professional manner, thus ensuring improved safety standards at sea and the creation of expanding work opportunities for SA seafarers internationally.

The drafting process for the revised regulations was designed as a three-year work programme. It began in November 1995 and is being carried out by a committee of 10 members representing the maritime industry, training establishments, labour and government. Its purpose is to produce amendments to the Merchant Shipping Act (MSA) and new syllabi for the training of engineers, deck officers and ratings. The Committee is also required to produce new draft manning regulations and to offer guidelines regarding STCW's implementation in industry, schools of commerce and the Maritime Industry Training Board (MITB).

Table 4:

Candidates examined to ensure that crew members with the necessary qualifications are available for service at sea:

Administrative support services

The provision of administrative services ensures that the Chief Directorate Shipping (CDS) and the seven marine offices are provided with an efficient administrative capability to enable line functions to be carried out more effectively.

This activity has a particular bearing on the effective management of logistical and personnel resources. Approximately 50% of the total staff complement of the CDS perform administrative support services to the line function.

This function also involves a wide spread of administrative activities which include the drafting, review and renewal of contracts, and liaison with the industry on policy matters. The more important objectives that have been identified are:

• to initiate bilateral agreements with other countries on behalf of the Government to enhance maritime relations with these countries;
• to review the present administrative organisation's capabilities with a view to providing an improved service to the CDS line function;
• to introduce a cash accrual financial system;
• to improve representivity;
• to improve computer literacy;
• to fill the vacancies in the ship surveyor occupational class; and
• to introduce and maintain a computerised Central Ships' Register.

Legislation and agreements

South African shipping legislation is based on international conventions which originate mainly from the International Maritime Organization (IMO), an agency of the United Nations based in London. It follows that legislation comprising enabling Acts and subordinate statutory instruments must continually be revised and updated as international requirements change. South Africa's relations with the international maritime community are consequently also continually adjusted through a wide range of multilateral and bilateral agreements.

Acts and subordinate statutory instruments

During the year, the Wreck and Salvage Act, 1996 (Act No 94 of 1996) came into operation by Proclamation. This provides for control over wrecks and regulates any salvage carried out on shipwrecks.

The Life-Saving Equipment Regulations, 1968, were amended to provide for the use of more modern life-saving equipment on South African ships. The Construction Regulations, 1968, were also amended to provide for alternative methods to be used in certain types of construction.

The Merchant Shipping (Radio Installations) Regulations, 1996, and the Merchant Shipping (Collision) Regulations were promulgated to bring the existing regulations in line with international standards. The set of the Merchant Shipping Fees Regulations, 1997, was promulgated to bring the existing regulations in line with current inflation.

Bilateral agreements

An agreement with Mozambique was signed early in the year under review and an agreement with Malaysia was signed in March 1997.

Agreements with Gabon, Tunisia and Greece were negotiated during the year under review. Although negotiations with 15 other countries are at more or less advanced stages, various outstanding legal, technical and administrative matters meant that they could not be completed in the report year. Contact has been made with a further 17 countries, and their responses are awaited.

Financial management

Taking into consideration the funds made available for the year under review the CDS is satisfied with its achievements. Most of its expenditure was earmarked to committed activities such as payments in respect for standby tugs, Telkom Radio Services and the Decca Navigation contracts. Four new tenders for ship-to-ship transfer operations were also purchased.

The budget for the year was R60 million. Out of this, the CDS was able to make a saving of R1.9 million via personnel vacancies, deferred account payments and the delivery of ordered equipment after the close of the financial year.

An income amount of R14 616 281 was received mainly from salvage tug revenues, the sale of old tenders and ship surveyor fees. Income was also derived from fines and licence fees paid during the financial year.

Human resources

The restructuring of the Department did not affect the organisational structure of the CDS and therefore, apart from the normal staff turnover, no major changes took place.

The Chief Directorate, apart from its staff complement at head office, consists of two zones, namely the Eastern and Western Zones, with offices located in Durban and Cape Town and sub-offices at Saldanha, Mossel Bay, Port Elizabeth, East London and Richards Bay.

The total staff complement for the year under review was 72. Head Office, situated in Pretoria, consists of 25 officials, while the seven marine divisions have a combined staff total of 47. Out of an establishment of 78 posts, six from the various occupational classes were vacant.

The problem of recruiting and retaining ships surveyors continued due to the uncompetitive salaries being offered in comparison with market rates.

The CDS began implementing actions to align its staff profile more fully with the demographic profile of the country. Unfortunately there are very few affirmative action candidates available in the surveyor occupational class, thereby making representivity extremely difficult to achieve in this class.

We focussed much of our attention this year on staff training to achieve greater efficiency and productivity. This trend will continue through the coming year.

International involvement

Mr David Manley, Senior Ship Surveyor, Cape Town, attended the 22nd Seminar for Port State Control Surveyors in Montreal Canada during the early part of June 1996.

Capt RJ Zanders, Principal Officer, Durban, represented the Department at the 5th Annual Meeting of the Marine Accident Investigators International Forum (MAIIF), held in New York during June 1996, in order to keep South African training methods up to speed with new accident investigating techniques.

Mr ET Beddy, Deputy Director Shipping, attended the 42nd Session of the Sub-Committee on Safety of Navigation held during mid-July 1996 at the International Maritime Organization in London. The main reason for attending was to represent South Africa's proposal for the establishment of traffic separation schemes around the Southern coast of South Africa at the Alphard Banks and the FA (oil rig) platform.

During September 1996 Capt BR Watt, Chief Director Shipping was part of a project team visiting England, Canada and Sweden to evaluate these countries' Maritime Safety Agency (MSA) models and to assess the viability of creating an MSA for South Africa. It was subsequently confirmed that an agency for South Africa would indeed be viable, and a project to prepare for the establishment of a new South African Maritime Safety Agency (or SAMSA) is already under way, with a projected inauguration date of 1 April 1998.

Mr FO Waldeck, Assistant Director, visited Athens during October 1996 to finalise an agreement with the Greek government on merchant shipping and other related maritime matters.

During December 1996, Mr NA van Niekerk, Principal Ship Surveyor, Saldanha, accompanied a SOEKOR representative to Singapore to inspect the vessel "Knock Dee" during her dry-docking.

During December 1996, Capt WR Dernier, Director: Technical, represented South Africa at the 67th Session of the Maritime Safety Committee in London.

Also during December 1996, Mr MR Slabber, Senior Ship Surveyor, Saldanha, visited Walvis Bay, Namibia, to conduct the Motorman Grade Examination at the Walvis Bay Maritime School.

The CDS, at the request of IMO, arranged for the training of eight marine surveyors from various African countries during 1996. This training exercise proved to be so successful that a further eight candidates from Angola, Zambia, Ghana, Sierra Leone, Nigeria, Guinea-Bissau, Ivory Coast and Senegal will be trained in South Africa during the next year.

Future Developments

The big issue for 1997/98 will be the establishment of SAMSA. We are taking this route in accordance with Government policy on decentralisation of operational functions and down-sizing of the Public Service to relieve the fiscus of unnecessary burdens.

But the move to an agency makes excellent sense in its own terms, not least by virtue of the financial freedom it will give us to attract and retain qualified surveyors to perform our statutory functions and to deliver an increasingly efficient and effective service to the shipping industry.

A tender for consultants to carry out the viability investigation was awarded in July 1996 and the report was completed in December 1996. This was followed by a presentation to the Minister of Transport for a decision in principle on the founding of SAMSA. The Minister accepted the proposal and a start was made on drafting enabling legislation for Cabinet approval early in the 1997/98 financial year.

Two committees, namely an Interdepartmental and a Standing Committee on Maritime Affairs came into force during the year under review. These committees will, amongst other things, pay attention to matters like the co-ordination of maritime resources and the possible establishment of a coastal patrol service.

The Chief Directorate Shipping has performed its statutory functions satisfactorily during the report year and has succeeded in keeping pace with its international and local maritime commitments.

CHIEF DIRECTORATE: URBAN TRANSPORT

INTRODUCTION

The 1996/97 financial year was a challenging, but very rewarding year for the Chief Directorate: Urban Transport. It was the year in which new land transport policy took shape, intended to restructure fundamentally the way the transport system is planned, funded and managed and public transport provided. The assignment to the provinces of many of the functions previously managed by the Chief Directorate started in earnest. It was also the last year that many of the functions in the Chief Directorate, such as bus and rail subsidies, were managed in the old, traditional manner.

At the beginning of the year the policy process was well under way. The Green Paper was published for comment in March 1996, in preparation for the drafting of the White Paper on National Transport Policy. During the course of the year under review, the White Paper was approved by Cabinet. This provided new direction and impetus to the work of the Chief Directorate. The Land Transport Policy Framework was drafted, an expansion of the broad policy statements in the White Paper, providing details of the practical implementation of policy, as well as transitional measures required to move from the current situation to the long term vision.

Simultaneously, working documents for drafting new land transport and international cross-border transport legislation were published for comment. These were aimed at providing a legislative framework for implementing the policies in the White Paper. It is intended that this legislation will be promulgated later in 1997.

The 1996/97 report year was marked by continuous restructuring, which affected both our internal organisation and the management of urban transport nationally. Our responsibilities for passenger transport planning and urban transport were devolved to the provinces. Interim contracts were concluded with all bus companies subsidised by the Chief Directorate and preparations made for the devolution of this function. Good progress was made with preparatory work for the future concessioning of rail commuter services.

Urban restructuring projects (spatial development initiatives), geared to support the development of public transport and reduce long-distance commuter travel, were evolving in many of the major metropolitan areas, with the first implementation projects being launched in Cape Town.

The Chief Directorate also prepared itself for restructuring into the Chief Directorate Land Transport on 1 April 1997, through an extensive revision of its organisation and through the redeployment of staff to meet the strategic objectives of the White Paper and the Departmental Business Plan.

I would like to express my appreciation to the personnel of the Chief Directorate for their hard work and commitment, which enabled us to make real progress in 1996/97.

Theo Maeder,
Chief Director:Urban Transport

FUNCTIONS:

The functions of the Chief Directorate are:

• to develop a broad national passenger transport policy;
• to promote and co-ordinate the planning and provision of adequate public transport infrastructure in urban and rural areas;
• to promote the planning of public passenger transport services at local level with a view to ensuring the provision of efficient and safe public transport;
• to promote the use and reduce the cost of public transport by administering subsidy systems for bus and rail commuters;
• to support and facilitate the development of human resources in the public transport sector through the promotion of education, training and access to opportunities; and
• to support Cape Town in its efforts to secure the 2004 Summer Olympics.

ACTIVITIES AND PERFORMANCE

The Chief Directorate: Urban Transport comprises three directorates, namely:

• Directorate Operational Planning;
• Directorate Infrastructure Planning; and
• Directorate Commuter Transport.

A Directorate Olympic Services was approved, but it can only be established once a final decision by the International Olympic Committee (IOC) is taken in September 1997 regarding Cape Town's bid to host the 2004 Olympic Games.

The activities of each directorate are listed below:

Operational Planning

The objectives of the Directorate Operational Planning are to:

• design passenger transport contracts;
• develop a new Land Transport Bill;
• carry out training of small, medium and micro enterprises (SMMEs);
• develop the taxi process; and
• develop and design bus contracts.

Infrastructure Planning

The objectives of the Directorate Infrastructure Planning are to:

• promote the planning and provision of adequate urban transport infrastructure;
• provide for the preparation and implementation of urban transport plans; and
• support Cape town's bid to host the Olympics in 2004.

Commuter Transport

The objectives of the Directorate Commuter Transport are to:

• subsidise road passenger transport;
• subsidise rail passenger transport; and
• manage and monitor passenger transport contracts.

REPORTS FROM THE DIRECTORATES

The Chief Directorate was involved in providing guidance and training to provincial and metropolitan transport officials. The courses were aimed at preparing these authorities for the transfer of the transport function on 1 April 1997. They were presented by all three directorates in the Chief Directorate: Urban Transport and each lasted for two days. The topics covered included the tendering process, evaluation of tenders, contract management, cost accounting and administering the bus subsidy system. At the same time, the transitional process of assuming responsibility for urban transport in each province - including the preparation of transport plans - was explained.

The Chief Directorate also participated in transport conferences convened by some provinces to discuss their public transport policies.

Directorate Operational Planning

Design of new bus tender services

During the year, the following changes were implemented:

• new bus services were designed and commenced in the Mamelodi area (D23/96, D24/96, D25/96 and D26/96);
• the design and tender process for the Atteridgeville/ Saulsville area (D28/96, D29/96 and D30/96) was completed, and the service was expected to commence on 1 April 1997.

Bus services in these areas were previously operated under contract to the Department, but these contracts terminated during the course of the financial year.

The design of bus service tenders for the areas of Ellisras, Durban North, Eshowe, Bloemfontein and Vereeniging was initiated, and it is expected that the new services will commence during the 1997/1998 financial year.

In all the areas where contracts were being designed, both provincial and metropolitan governments were included in the tender process, with a view to preparing them for the devolution of the function in April 1997.

Development of a New Land Transport Bill

The Directorate developed working documents for the proposed Land Transport Bill, published in the Government Gazette (Vol 378, No 17681, 20 December 1997) for comment. The working documents included:

• a draft National Land Transport Bill;
• a draft model Provincial Land Transport Bill; and
• a draft Cross-Border Road Transport Bill.

The working documents for the new Land Transport Bill were developed in line with the positions developed in the White Paper on National Transport, and in close consultation with a wide range of stakeholders. Further consultation will be invited from all interested parties after the Bills have been considered in Cabinet. We hope to receive Cabinet approval for the new draft legislation in May 1997.

Training of Small, Medium and Micro Enterprises (SMMEs)

The Directorate has developed a course for SMME bus operators to empower them to tender for bus service contracts in future. The Directorate presented courses for operators in the bus industry in all but one of the provinces, the remaining course to be presented early in the next financial year. The courses were well attended by small bus operators in each area.

The course was structured to include lectures on the tendering process, tender documents and financial matters such as cost accounting and scheduling. Capacity building for SMMEs will continue and expand in the next financial year.

Stabilising the Minibus-taxi Industry

Against the background of years of anarchy, instability and violence in the minibus-taxi industry, the past year has seen some striking successes for government initiatives to regulate and formalise this volatile, but high-potential sector of emergent economic activity in South Africa. The major success achieved by the National Taxi Task Team (NTTT) during 1996/97 was to carry the process forward from the consultative stage - which brought warring minibus-taxi associations together to chart a rational course for the future development of the industry - to the creation of structures at provincial and local level capable of implementing meaningful change.

The process initiated by the NTTT focussed on three key target areas:

• regulation and control;
• formalisation and training; and
• the provision of economic assistance to the industry.

Amongst the notable achievements have been:

• the establishment in all nine provinces of minibus-taxi offices - of which six were already fully-staffed - with an overall operational status of about 65%; and
• the appointment of eight acting Provincial Registrars and one permanent Provincial Registrar of minibus-taxi associations, together with the establishment of their offices.

The registration and legislation processes have also been embraced by the overwhelming majority of role players in the industry. An estimated 92% (1 123) of a national total of some 1,215 minibus-taxi associations have applied for registration.

The training aspect of the programme has also begun to gather speed via a number of government initiatives, including the compilation of a directory of training service providers and courses, which will prove invaluable in raising financial and managerial skill levels in the industry. The training process commenced with a minibus-taxi training project in Kwazulu-Natal, which has paved the way for other provinces to start their own training initiatives. Further demonstration projects are currently being planned.

The national Department of Transport has monitored these developments closely, and continuously supported the process with seed funding, ideas, and especially continued administrative and co-ordinative support.

Design of Combined Bus and Minibus-taxi Contract Services

At the beginning of the financial year an initiative was started in Atteridgeville to include the minibus-taxi industry in the formal public transport system, by introducing operators to the new contracted public transport services in the area. As the current bus contract services in the area were scheduled to lapse during the financial year, the opportunity to design a service shared by the bus and minibus-taxi industries was seized.

In the Atteridgeville area, only one taxi association exists, namely the Atteridgeville Saulsville Taxi Owners Association (ASTOA). The Directorate formed a Steering Committee, including all the stakeholders affected by the process of developing a joint bus/ minibus-taxi contract. The bus service contracts were to commence on 1 April 1997, and a programme was developed to include a co-operative formed by ASTOA members in the contract. The Steering Committee is preparing a contract document that will be suitable for use by other minibus-taxi co-operatives wishing to move into the formal sector, wherever they may be situated.

Directorate Infrastructure Planning

The Directorate has the following responsibilities:

Administration of Urban Transport Fund

This entails administration of the Urban Transport Fund, co-ordinating the development of urban transport policy in 11 declared metropolitan transport areas - based on the evaluation and approval of urban transport plans - and the transfer of funds to metropolitan transport areas for the planning and implementation of urban transport infrastructure.

In order to assist the core cities of the metropolitan transport areas in achieving these objectives, the Urban Transport Act empowers the SARB to manage the Urban Transport Fund (UTF).

During the 1996/97 financial year, R65,519,000 was made available from the State Revenue Fund to the UTF, the allocation of which is summarised below.

Planning in the metropolitan transport areas

Transport planning in the 11 declared MTAs - Bloemfontein, Cape Town, Durban, East London, East Rand, Johannesburg, Pietermaritzburg, Port Elizabeth, Pretoria, Vaal Triangle and West Rand - continued to focus on the solution of problems by means of one- to five-year implementation programmes. Good progress was made toward integrating the land use, transport infrastructure and operational aspects of transport. Passenger transport plans were developed to pinpoint routes where the issuing of operating permits was feasible.

The Planning Guidelines Subcommittee of the Land Transport Co-ordinating Committee (LTCC) reviewed the existing guidelines for the preparation of transport plans, with a view to fully integrating these plans. The first of a series of new guidelines, reflecting the institutional changes and the strategic objectives of the White Paper on National Transport Policy, was finalised and approved by the Committee of Land Transport Officials (COLTO) for publication.

Planning studies and professional services

Funds were made available from the UTF for a number of initiatives, including the following:

• Preparation of passenger transport plans by Services Councils;
• Planning of demonstration projects and spatial development initiatives (SDIs) in the major metropolitan areas of Johannesburg, Cape Town, Durban and Pretoria. These initiatives are designed to demonstrate visible progress in overcoming the spatial distortions and inequalities in economic access inherited from apartheid, whilst improving mobility and making public transport in our cities more attractive. They also provide continuous feedback into the policy-making process.
• Continuation of the Urban Transport Advisory Unit, which is comprised of three consultants whose brief is to advise the Chief Directorate on research matters and the formulation of policy.

Planning of Infrastructure

National Department activities in this sphere were complicated by their dependence on processes of organisational transformation which were taking place throughout the year in provincial and local government. Capacity at these levels was not in place and, as a result, little progress was made by the provinces towards assuming their assigned functions. This showed up in the slow approval and submission of provincial implementation plans to the South African Roads Board (SARB). As a consequence, the payment of implementation funds was delayed and large amounts will be rolled over to the next financial year. These difficulties also had a negative effect on the Chief Directorate's ability fully to take on its own new functions.

During the year under review, the Minister, on the recommendation of the SARB, approved a revised amount for continued transport planning in the areas shown below.

Implementation of planning in metropolitan transport areas

The amounts budgeted for in the UTF for implementation of projects in the MTAs, in accordance with approved transport plans, are shown below.

Demonstration projects

The following demonstration projects were continued during the year under review:

These projects are aimed at promoting the use of public transport by concentrating residential and employment opportunities in transport corridors and by encouraging higher density developments and clustering of services along transport routes and at transfer stations.

A total of R13,851,000 for planning and implementation of demonstration projects was budgeted for, but owing to delays in commencing the projects only a portion of the funds was spent.

The SDIs are the following:

A total of R8,874 million was approved for the planning of these projects at the end of the 1995/96 financial year, all of which was rolled over to the year under review.

Cape Town's Olympic Bid

During 1996, Cape Town was selected as one of five candidate cities to host the Olympic Games in 2004. In September 1996, the Cabinet decided to provide R250 million over two financial years for transport projects to support Cape Town's Olympic Bid, and

the Urban Transport Fund was used to channel the special Cabinet funding for planning and implementation of these projects.

The responsibility for co-ordinating the preparation of a master transport plan for Cape Town was undertaken by the Directorate Infrastructure Planning. Following on from the Cabinet decision, an amount of R8 million was made available in January 1997, and the remaining R117 million rolled over to the 1997/98 financial year, to be transferred according to a financial programme prepared by the Cape Metropolitan Council.

Educational grants

Educational grants for the maintenance of chairs in transportation were phased out in favour of the Centres of Development at various universities. Grants amounting to R683,000 made during the 1996/97 financial year to universities are shown in the following table.

Directorate Commuter Transport

Administration of Road Passenger Transport Subsidies

A total amount of R967,255,896, of which R871,758,000 came from the Departmental budget, was used to subsidise approximately 20 million passenger trips bought through multi-journey clipcards during 1996/97 in all provinces. Services were provided by 35 bus operators with approximately 8,000 buses.

During the financial year, Metropolitan Councils, Regional Councils and District Councils continued to contribute towards the subsidisation of bus commuter transport through the 1c per litre fuel levy. A number of problems were, however, still experienced in obtaining all the funds from these Councils as determined by the Department of Finance.

The following comparative information on the subsidies paid, based on the purchase of multi-journey tickets, is of interest:

On 1 April 1996 a general fare increase of 8.5% was implemented on all multi-journey subsidy tickets. In certain cases further subsidy increases were awarded as from 1 July1996.

During March 1997, interim contracts were concluded with all the currently subsidised bus operators as proposed in the White Paper on National Transport Policy. The conclusion of these contracts is the first step towards implementing the Department's policy of replacing the current commuter subsidy system with an open tender system in terms of passenger transport plans compiled by provincial and local governments.

To ensure that Provinces would be able to manage and administer the current subsidy system upon its devolution from April 1997, a number of capacity-building sessions were held. Working visits to the provinces were also undertaken, in order to explain the processes in detail and to acquaint provincial officials more fully with the bus operations in their area.

Administration of Rail Passenger Transport

An amount of R1,381,703,000 was spent on subsidising approximately 458 million passenger journeys during the year in the six major metropolitan areas. An increase of approximately 3.5% in passenger journeys was registered during the year.

The main critical issues relating to rail commuter transport remained the low cost recovery rate, fare increases, fare evasion, violence on trains and various criminal activities.

During the year under review, commuter rail fares were increased with effect from 1 September 1996. This increase had the following characteristics:

• a regionalised approach was introduced where different regions were empowered to set different fare rates;
• a weighted increase in fares of between 11,4% and 12,7% was implemented - except for the Durban region, where consultations resulted in higher increases; and
• a new zonal structure was fully implemented.

During the year the Department and the South African Rail Commuter Corporation held a conference on rail concessioning featuring a number of international speakers. A discussion document entitled Concessioning of Rail Commuter Services in South Africa - A Viable Option? was issued during August 1996 to inform and stimulate the debate around the idea of public/private sector co-operation and risk-sharing in the provision of commuter services. The concessioning scenario was eventually included as a policy principle in the White Paper on National Transport Policy.

Administration of Public Transport Contracts

An amount of approximately R92 million was used to provide bus services in terms of tendered contracts.

Services were provided by six contractors with approximately 464 buses.

Contracts for the monitoring of the bus contracts were awarded as follows:

The Directorate continued monitoring these contracts in conjunction with the firms appointed. With a view to the assignment of this function, the provinces were involved in the process.

As numerous problems are being experienced with the current method of monitoring, the Directorate started investigations into alternative monitoring methods. These investigations are expected to continue during the coming financial year.

Future Developments

The Chief Directorate compiled its own business plan, and in terms of the devolution of functions to the provinces and its vision of its future role, the Chief Directorate Urban Transport determined a list of its future functions.

These include the following:

• Developing and implementing national land transport policy;
• Monitoring and analysing land transport policy;
• Promoting and facilitating land transport planning;
• Promoting and facilitating land transport technology;
• Promoting and facilitating the development of road-based transport;
• Promoting and facilitating the development of rail-based transport;
• Providing its own administrative service.

As from 1 April 1997, the structure and staffing of the Chief Directorate will be revised in accordance with the strategic objectives of the White Paper and the Departmental Business Plan.

The new Business Plan, published in January 1997, was prepared within the above framework and reflects the changed responsibilities and budgeting provisions envisaged for the proposed new Chief Directorate Land Transport.

The Directorate Operational Planning will be restructured to transform it into a policy development unit responsible for developing, monitoring and analysing land transport policy.

The Directorate Infrastructure Planning will be restructured to transform it into a planning and technology development unit, responsible for promoting and facilitating land transport planning and technology development.

The planning and implementation portion of the Urban Transport Fund will be transferred to the provinces, whilst the balance will remain with the new Directorate. This will include funds made available for transport infrastructure to support Cape Town's Olympic bid.

The Directorate Commuter Transport will be restructured to transform it into a public transport promotion unit, responsible for promoting road and rail based public transport in both urban and rural areas. The funding of bus and rail commuter subsidies will remain with the new Directorate in the interim, although the management of the function will be devolved to the provinces on 1 April 1997.

CHIEF DIRECTORATE ROAD TRANSPORT AND TRAFFIC

INTRODUCTION

The Chief Directorate is being severely criticised for the high numbers of accidents and fatalities on our roads.

In its facilitating role to enhance road traffic management, the Chief Directorate is dependent on the diligence and efficiency with which other government departments and authorities perform their functions. Only through their support, and with proper co-ordination, can success be achieved in reducing the number of accidents and fatalities.

However, the Chief Directorate is not simply waiting for others to act, but working positively to create the appropriate co-ordinating structures and practical links which will pull all the most important players together to achieve real and lasting change to road traffic quality and safety in our country.

One of our two major priorities for the coming year will be to start making a significant impact on road users' behaviour and road safety enforcement capacity. During the 1996/97 report year intensive effort was put into developing a detailed framework for action. The outcome was a comprehensive Business Plan towards the Implementation of a Road Traffic Management Strategy (RTMS). This was recently distributed to all major stakeholders. An abbreviated version of the RTMS Business Plan will be made available to the general public in May 1997.

In tandem with this, a Road Traffic Safety Board has been established, comprising high level representatives from both private and public sectors. The Board will act as guardian of the Strategy; will assist in the identification, formulation and prioritisation of projects; and will monitor progress and give direction on the implementation of the Strategy. The objective of the Strategy is to reduce fatalities by 10 per cent by the year 2000.

However, as we take the Strategy forward we have to face up to the various serious constraints that will need to be overcome:

1. At present the resources available for road traffic management are insufficient;
2. Not all authorities are giving road traffic management the attention and priority it deserves;
3. We also have a cultural problem. A very significant sector of the public at large do not have values, attitudes or perceptions which support the development of a safer road traffic environment.

Media campaigns appealing to road users' sense of care for their fellow human beings - or indeed to their own self-interest - have not had an appreciable impact. The senseless killing of people on our roads will continue unless we begin now to adopt a more assertive approach both toward changing perceptions of risk and toward policing and prosecution.

The incidence of dangerous road user behaviour can be significantly reduced by a long-term educational campaign. But to effect a substantial improvement in the short term, most available resources should be dedicated to changing perceptions which impact negatively on road traffic safety. This means in the first instance changing people's perceptions of what will happen to them if they transgress.

The available statistics clearly indicate that using roads under the influence of alcohol, speeding and not wearing seat belts are the major causes of fatalities. The initial focus of road traffic management should be on combatting these three categories of offence. This does not mean that we are unaware of the cumulative effect of getting away with smaller and less consequential offences, which can lead progressively to more adventurous and higher risk behaviour until, ultimately, a serious or fatal accident results. But within the limited resources available to us we have to prioritise. Our view is that if you want to make a dent in a "culture of impunity" you do so first of all by cracking down hard and visibly on the most serious offences.

In the next financial year, therefore, there will be a concerted effort to enhance traffic law enforcement. Modern technology will be used. Appropriate communication and advertising campaigns will precede law enforcement. The increasing certainty of detection and prosecution - and the media campaigns which will underpin police and traffic officers' actions on the ground - will begin to change the perceptions (and perhaps attitudes) of road users. The perceptions that we want to see instilled in road users are:

• firstly, that it is too dangerous to drink and use a road, to speed or not to wear seat belts; and
• secondly, that they are likely to be caught, and once caught, can be certain of appropriate punishment.

The planned intensification of law enforcement will increase the detection rate, while the severity of the consequences for those found guilty of offences will increase the risk to offenders to such an extent that it will start reducing the number of serious offences and therefore the number of fatalities.

Our second major focus for the coming year will be the regulation of international road transport and law enforcement in support of this regulation. This is the beginning of a new era. An agency at arm's length from government will be created. The benefits will be a further down-sizing of the Chief Directorate, more efficient concentration of human resources and professional skills, and a saving in cost to government and therefore the taxpayer.

If the agency is approved by Parliament it will begin operating on 1 April 1998.

Hennie van Tonder
Chief Director : Road Transport and Traffic

FUNCTIONS

• To promote road traffic safety through education and communication;
• to develop, promote and implement road transport and traffic management systems so as to enhance quality and safety; and
• to manage cross-border road passenger and freight regulation and provide administrative support to the relevant statutory bodies.

The legislation prescribing the responsibilities and activities of the Chief Directorate is as follows:

• Road Traffic Act, 1989 (Act no 29 of 1989)
• National Road Safety Act, (Act no 9 of 1972)
• Road Transportation Act, 1977 (Act no 74 of 1977)
• Transportation Deregulation Act, 1988 (Act no 80 of 1988)
• Hazardous Substances Act, 1973 (Act no 15 of 1973)

ACTIVITIES

Road Transport and Traffic comprises three directorates, namely:

• Directorate Road Traffic Education and Communication
• Directorate Road Traffic Legislation
• Directorate Road Transport

Road Traffic Education and Communication

• To promote safe usage of the country's roads in order to reduce road traffic accidents. Currently, these activities are mainly focussed on education, communication (advertising, promotion and publicity) and training;
• to standardise learners' and driving licence testing and to monitor testing centres;
• to provide a secretarial and administrative service to the Chief Directorate.

Road Traffic Legislation

• To formulate, co-ordinate and administer road traffic legislation;
• to standardise and co-ordinate road traffic law enforcement;
• to co-ordinate, develop and implement national road transport and traffic information systems.

Road Transport

• To establish and maintain a consultative structure for cross-border road transport management;
• to enhance cross-border road transport operations;
• to regulate operators in the road transport market in accordance with bilateral and multilateral cross-border agreements;
• to standardise, co-ordinate, promote and carry out road transport law enforcement at national level.

Reports From The Directorates

Directorate Road Traffic Education and Communication

Education

The main emphasis is on improving road user knowledge, skills and attitudes in a formal, non-formal and informal educational environment. The two primary focus groups are the junior pedestrian and the prospective driver, who were reached through the following projects:

• Child in Traffic (through which 1 million children were reached);
• Safety in Traffic Education Programme (STEP)
• - where 3,500 packages were printed and distributed to the different provinces for redistribution and implementation. Road traffic safety officials from all nine provinces were trained to implement the programme at school level.
• Scholar Patrols (2.3 million pupils are assisted to cross the roads safely and harmoniously on a daily basis).
• Bridge Programme (Prospective drivers are reached at secondary school level through this initiative, which addresses young/aspirant drivers of all types of vehicles, particularly cars and motor cycles.
• A draft Traffic Safety Education Syllabus has been drawn up in conjunction with the Centre for Traffic Safety Education (CENETS), at Potchefstroom University, to be approved by the Department of Education. This will be finalised in the next financial year.
• A Traffic Safety Activity Workbook, targeted at junior primary schools, has been finalised and printing will begin in the next financial year.

Communication

The primary goal is to expose different target groups to traffic safety related products, services and concepts. Communication and advertising campaigns are launched to inform, educate and influence road users to help bring about a safer road traffic environment.

To use the available resources more effectively, communication campaigns are concentrated on a tight set of themes, each one specifically designed for and adapted to particular media and target audiences.

Advertisements

These included radio and television advertisements in all of the official languages, addressing drinking and driving, drinking and walking, speeding, visibility of drivers and pedestrians, and following distances. 90% of television viewers and 70% of radio listeners were exposed to the advertisement campaigns.

The advertisements were supported by communication campaigns which included launches, testimonials, television and radio talk shows, press releases and publications. The following publication efforts can be mentioned:

• Four issues of the Robot, which is a traffic safety publication, were disseminated to 20,000 stakeholders to keep them abreast of various topical issues relating to road user behaviour.
• A practical guide of 32 pages on road safety in Bona magazine's November 1996 issue. Bona's circulation is 271,230 and its readership more than two (2) million. Among the issues addressed in cartoon format were pedestrian behaviour, seat belts, speed, driver fatigue, the importance of obtaining a legal driving licence, vehicle roadworthiness and drinking and driving.

Other projects include:

• Peak period traffic safety campaigns during the Easter weekend and the summer holidays. The value of the publicity generated by the 1996 campaigns exceeded R16 million. Their main purpose was to encourage road users to comply with traffic rules and regulations and to take responsibility for their own and others' safety.
• An alcohol campaign addressing the dangers of drinking and driving/walking was once again launched and was supported by traffic law enforcement actions.
• Presenting a taxi programme through a joint venture with Lesedi Stereo. The programme continued past its original month-long run and became a regular feature with each one-hour programme reaching 2 million listeners.
• Displaying car wrecks with traffic safety messages alongside the N1 North and the N3 for the duration of the 1997 Easter holidays, exposing thousands of drivers and passengers to this powerful visual message.
• During the 1997 Easter weekend an appeal was made to drivers to show their support for traffic safety by driving with headlights on for the duration of the weekend. In the Western Cape up to 75% of drivers on main routes showed support during the day, though the figure was below 10% in Gauteng and the Northern Province.

Driver training

Certain functions of the National Inspectorate of Driver's Licences, presently carried out by the Department, are being devolved to the provinces. The National Inspectorate will train provincial inspectorates to take over these functions. A training programme has been developed and training will begin in the coming financial year.

Manual for learner drivers

Due to changes in road traffic legislation and the introduction of the K-53 driver's licence testing system, present manuals for learner drivers have become outdated. An updated, more comprehensive manual has been developed in two official languages. The manual is now ready to be printed at an estimated cost of R1.5 million. Printing in the remaining official languages will be undertaken in the next financial year.

It was decided to revise the K-53 driver's licence system to make it more user-friendly. A questionnaire was sent to 200 drivers' licence examiners and instructors at driving schools. This information will be processed during the next financial year.

Manual for driver training instructors

The standards of some driving schools fall seriously short of the desired standards. A manual has been developed for instructors, to assist driving schools to achieve a standard consistent with general requirements for safe driving and with the K-53 driver's licence testing system. It will be available in the next financial year.

National Inspectorate for Driver's Licence Testing Centres

The Road Traffic Act, 1989 (Act no 29 of 1989) provides for an Inspectorate of Driver's Licence Testing Centres to evaluate each driver testing centre at least once a year. The new Road Traffic Act, 1996 (Act no 93 of 1996) makes provision for Provincial Inspectorates to perform this function on provincial level (with national level performing a monitoring function) to ensure that national norms and standards for driver training and testing are met.

There are 350 registered driver's licence testing centres and approximately 2,000 examiners of driver's licences in the RSA. Unfortunately, due to current staff shortages, only 96 of the centres have been inspected. However, the inauguration of provincial inspectorates will go a long way towards solving this problem once the Road Traffic Act 1996 has been implemented.

The Inspectorate has uncovered a number of cases where fraudulent driver's licences have been issued. At present Winkelspruit, George and Uitenhage are under investigation and a number of people have been arrested. These cases are still sub-judice, but convictions are expected.

Directorate Traffic Legislation

The Road Traffic Act, 1989, (RTA) was not amended during the year under review. After consultation with the various provinces and the State Law Advisors it was decided not to assign the RTA to the provinces, but rather to "divide" the Act between national and provincial government levels. This took place in consultation with the nine Provinces, resulting in the promulgation of the National Road Traffic Act and a model provincial Bill which set the framework for the introduction of the nine provincial Road Traffic Bills.

The Road Traffic Regulations were amended on five occasions. These amendments provided for:

• New motor vehicle registration and licence fees which came into operation on 1 July 1996.
• Empowerment of provincial MECs to determine the colour, logo and background of their registration plates by notice in the Official Gazette. This amendment also makes provision for NaTIS to be activated in a specific registration authority by notice in the Government Gazette.
• A provision to implement NaTIS and the new roadworthiness system in nine registration authorities in Mpumalanga and in the three registering authorities in Gauteng.
• The determination of registration plate formats for each province.
• Personalised registration plates in KwaZulu-Natal.
• Standardisation and co-ordination of road traffic law enforcement.
• Construction and development of weigh-bridges. This objective was achieved through the creation of a joint fund between the Department and the nine provinces. Contributions for the financial year under review amounted to R42 million. Construction also began on the first Traffic Control Centre (TCC) and 24-hour weighing station at Mantsole, 70 km north of Pretoria on the N1, at which vehicle and driver fitness issues will also be monitored. This will be opened to traffic early in the next financial year. This TCC will be operated by the Road Traffic Inspectorate of Northern Province.
• Planning and design of TCC's on major routes in the other provinces is progressing well. Construction of three TCC's in Gauteng - at Bronkhorstspruit and Heidelberg on the N3 and Vanderbijlpark on the Golden Highway - will begin early in the new financial year.
• Improving professionalism in traffic law enforcement. To achieve this objective five-month basic courses for the training of traffic officers are being finalised. Training will start in January 1998. New curricula and standardised training manuals for transport and traffic personnel will also be compiled.
• Introduction of Traffic Management Systems to improve the utilisation of law enforcement resources. Implementation took place in three regions of the Lekoa Vaal metropolitan area as well as in the Port Elizabeth Traffic Department, Uitenhage, Despatch, and the Western Regional Services Council in Port Elizabeth.

Road Transport and Traffic Information Systems

At the end of March 1997 the National Traffic Information System (NaTIS ) module for vehicle registration and licensing, motor registration numbers, roadworthiness and manufacturers of vehicles was deployed at 512 sites. Approximately 1,500 users are currently connected to the system, while at least 80% of the total vehicle population is administered by it.

The award of the tender for the supply and personalisation of the driving licence card by the State Tender Board has initiated the final stage of preparations for the introduction of the credit card format licence towards the end of the next financial year.

The Namibian decision to implement the vehicle registration and licensing module of NaTIS was soon followed by Lesotho and may result in other Southern African Development Community (SADC) member states taking advantage of the application software offered by the Department.

An agreement was reached with the provinces that the Land Permit Administration System will remain a countrywide computer system to be used by all the provinces for the administration of the Road Transportation Act. During the next financial year the system will be delivered and if necessary re-engineered to satisfy all the needs of the provinces.

Directorate Road Transport

Local Road Transportation Boards

The Local Road Transportation Boards in Pretoria, Johannesburg, Bloemfontein, Kimberley, Cape Town, Port Elizabeth, East London, Durban, Pietermaritzburg and Potchefstroom were devolved from National Government to Provincial Government on 1 August 1996, after the Road Transportation Act, No. 74 of 1977 was assigned to the provinces on 1 May 1996.

Enhancing Cross-Border Road Transport Operations

The main target has been the formulation and implementation of the Southern African Development Community (SADC) Protocol on Transport, Communications and Meteorology. The purpose of the Protocol is to enhance regional and global trade by laying down guidelines for policy and standards in these three spheres based on current international norms.

The process is then taken further through the establishment and maintenance of consultative structures for road transport management with regard to cross-border operations. It regulates the road transport market in accordance with bilateral and multilateral agreements.

A number of aspects of this process of cross-border transport regulation can be highlighted:

• The Protocol on Transport, Communications and Meteorology was developed in close co-operation with the private sector and was signed by Heads of State at the SADC summit in Lesotho in August 1996. The Protocol was ratified by Parliament in September 1996 and is now part of the domestic law of the Republic of South Africa.
• Bilateral Road Transport Agreements with Zambia, Zimbabwe and Malawi were concluded during the past year. A similar bilateral agreement with Mozambique, which will support the Mozambique Development Corridor, will be signed very early in the next financial year.
• Discussions on second round amendments to the Southern African Customs Union (SACU) Memorandum of Understanding on Road Transport (the multilateral agreement) were finalised during the year and will become operational in the next financial year.
• The partnership between government and transport operators, users and other interest groups was maintained and furthered through participation in forums such as the International Corridor Working Group and the Joint Route Committees. This in itself is already an implementation of the stipulations of the SADC Protocol on Transport, Communications and Meteorology.
• A new legislative process was embarked on for the regulation of cross-border road transport, whose ultimate result will be to minimise government's historic role as a regulator of bureaucratic detail and allow it to concentrate more fully on its core functions of policy development and facilitation. What this will mean in practice is a focus on improving safety, security, reliability, quality and speed in the transportation of goods and people across our borders, and the development of a new competitive edge for the region as a whole.

Regulation of the Road Transport market in accordance with bilateral and multilateral Cross-Border Agreements.

During the financial year a total of 80,770 public road carrier permits, including 37,840 in terms of multilateral agreements and 42,930 in terms of bilateral agreements, have been issued and captured on the computerised Permit Administration System (PAS).

In support of the stipulations of the Protocol on Transport, Communications and Meteorology an extensive computerised information system was maintained and enhanced. To support corridor developments in Southern Africa, the system was adapted to cater for the specific information needs of each international corridor and of all the stakeholders involved in cross-border operations.

Road Transport Inspectors

Regular lectures were held and practical assistance given to officials from Swaziland, Botswana, Namibia and the North West and Gauteng provinces in the course of joint law enforcement actions undertaken during the year.

The Inspectorate undertook 742 law enforcement actions and 78 745 on-road inspections. It instituted 7 533 prosecutions which led to 5 698 convictions, with 290 cases still pending. The total value of fines collected was over R2 million. The success rate of the finalised cases was nearly 90%, which is an indication of the professionalism with which law enforcement actions and subsequent court proceedings were attended to.

Report of the National Transport Commission (NTC)

Appointed under the Transport Deregulation Act, 1988, the NTC considers appeals against decisions of Local Road Transportation Boards, applications for cross-border public carrier permits and advises the Minister of Transport on matters relating to road transportation.

During the year under review 67 meetings were held, 32 appeals were carried forward from 1995/96, 92 new appeals were lodged and 95 appeals were finalised. A total of 981 applications for public road carrier permits was considered and six inspections were carried out.

During 1996/97 the Commission comprised the following persons.

K. Gordhan: Chairperson;
R.G. Meyer: Full time member;

and the following members:

G.R. Arbee
P.P.M.Chetty
A.N. Dupree-Vilakazi
E.J.Jacot-Guillarmod,
S.D.Madlopa,
G.G.Makhathini and
N. Mathloko.

SOUTH AFRICAN ROADS BOARD

INTRODUCTION

"We are built to conquer the environment, solve problems, achieve goals, and we find no real satisfaction or happiness in life without obstacles to conquer and goals to achieve."

- Maxwell Maltz

Yesterday, or so it seemed, I was writing my first introduction to the Annual Report. It is hard to believe that a year has gone by already - and quite an eventful year at that. The Chief Directorate's theme for this year has been T.E.A.M - i.e. Together Everyone Achieves More.

Simply put, it stands for everything that is goal-orientated, stress-free and committed in life. When a Directorate within the Chief Directorate is working in harmony, things go along so much more smoothly. It is a clear indication that everyone is pulling together.

I have no hesitation in stating that our sense of corporate identity, loyalty and consideration for the genuine efforts of other team players has enabled us to achieve the goals we set ourselves. We have emerged from the debilitating and often stressful realms of uncertainty, fear and despondency occasioned by civil service restructuring by focussing on working together as a TEAM. This team and its efforts will launch us into the next phase of our evolution - towards the establishment of an "arm's length" relationship with the Department, through the creation of the Roads Agency.

Turning to the past year, I am proud to report that the Maputo Development Corridor is about to be implemented. This project will create many opportunities for development in South Africa and in Mozambique, and also do much to repair the past and build relationships between our two countries.

We have made the most of the funds available to us, and have both launched and completed a wide variety of new maintenance and rehabilitation projects aimed at providing the best possible service to the road user. A number of projects to improve and upgrade our roads are at an advanced stage of design and implementation, and we are well positioned to make good use of next year's funds.

We have worked hard on many new ideas during the year, including innovative models of contract, new ways of ensuring empowerment to the disadvantaged and new strategies to improve road safety and make the best of road management technology. We have developed our expertise in catalysing spatial development initiatives and identifying alternative funding sources.

The Chief Directorate regards the constraint on acquiring sufficient funds from the Exchequer as a challenge and a powerful stimulus towards looking for alternative resources and alternative organisational models. This, for us, is what 1997/98 is going to be all about.

Nazir Alli
Chief Director : Roads

REPORTS FROM THE DIRECTORATES

DIRECTORATE Materials and Pavement Engineering

Functions

Evaluate and design pavements

Activities:

• New construction
• Periodic/special maintenance
• Rehabilitation/upgrading
• Non-national roads

Goals/targets/indicators:

• The goals and/or targets are to maintain and improve the National Road network. To achieve this, periodic and special maintenance, rehabilitation, upgrading and new projects were assigned to consultants or done in-house. These projects were managed to ensure good quality and cost-effective work.
• 18 periodic and special maintenance projects based on PMS outputs were assigned to consultants for the detail design, documentation, tender and construction supervision stages to an estimated value of R200,5 million. Eight of these projects are in the final design stage and eight in draft documentation or tender stage while two projects have already been completed.
• Four rehabilitation and upgrading projects based on PMS outputs have been assigned to consultants for the detail design, documentation, tender and construction supervision stages, to an estimated value of R137,5 million. On one of these projects the tender stage has been completed while the other projects are still in the detail design stage.
• Two in-house designs have also been undertaken to an estimated value of R82,0 million. One project is in the final design stage while the other has passed the draft documentation stage.
• A number of the maintenance and rehabilitation projects were delayed by up to two months due to the unavailability of the two Falling Weight Deflectometers in the country. The results of the measurements these provide are required to determine the remaining life of pavements, a projection which is essential for any maintenance or rehabilitation project.
• 24 projects for maintenance and rehabilitation actions were assigned where emerging consultants were involved, either as a part of a joint venture or as sole appointees. The estimated total cost of these projects was R424,5 million. The progress of these firms has been carefully monitored and, with the exception of two firms, all have performed exceptionally well, building their capacity and achieving significant growth. Joint venture projects have taken a little longer to get off the ground than sole appointments due to the training element involved.
• Assistance was given to the De Beers Pass project in the compilation of tender documentation.
• In South Africa the quality of the works on road building projects is currently ensured by an End Product Guarantee System (EPGS), where the client accepts all the responsibility for the design and the performance of the product after the maintenance period of 12 months. With projects commissioned under the Product Performance Guarantee System (PPGS), the contractor participates in sharing the risk and guarantees his product for a certain life and/or performance beyond that of the mandatory maintenance period. Although the PPGS principle is new, three projects have been let over the past year. One has already been completed and the other two are in the construction stage. There are another three projects in the pipeline for next year.
• Consultants have already been appointed for 15 periodic and special maintenance projects and five rehabilitation and upgrading projects have been proposed by PMS for the next two years. This was done to prevent delays in the execution of projects on the five-year approved budget.

Develop and operate management systems

Activities:

• Planning and administration
• Routine/safety maintenance
• Periodic/special maintenance
• Rehabilitation/upgrading

Goals/targets/indicators:

• Development of a slope management system: Investigation into the use of Landsat TM images and Radar images for use in the management system was completed.

Provide a materials quality control service

Activities:

• New construction
• Routine/safety maintenance
• Periodic/special maintenance
• Rehabilitation/upgrading
• Non-national roads

Goals/targets/indicators:

• During the year the Sub-directorate has initiated and monitored the implementation of quality control systems on more than 50 projects in order to ensure the fit for proposed utilisation of materials. Included was the evaluation of materials designs in order to reduce the risk of non-conformance due to any sensitivity of mix recipes, and to ensure that the final product conformed to design criteria.
• A cost and sensitivity analysis was also undertaken in each project in order to implement the most cost-effective system for the testing of materials during the construction phase i.e. dedicated on-site testing versus off-site commercial facilities, or a combination of both. For overall control, 500 quality control audits on projects were envisaged as a target. Approximately 400 were conducted on a priority basis owing to limited manpower resources.
• A significant input has been given to emerging consulting engineering firms with respect to appropriate materials specifications and standards, as well as evaluation of materials designs and on-site quality systems.
• The Department has initiated the revision of the TRH3 document, the finalisation of which is imminent. This document should be of major benefit to the industry.

Provide a materials test and evaluation service

Activities:

• New construction
• Routine/safety maintenance
• Periodic/special maintenance
• Rehabilitation/upgrading
• Non-national roads

Goals/targets/indicators:

• Materials investigations and testing were arranged, administered and completed, where applicable, for all those periodic and special maintenance, rehabilitation and upgrading projects that were assigned to consultants as listed under the function: Evaluate and design pavements. Materials reports and contract documentation for these projects were evaluated and reported on.
• A centerline soils survey, borrowpit investigations, materials testing and stabilisation designs were completed for one in-house project.
• A materials information document was set up for the De Beers Toll Road project.
• The additional function of providing a geo-technical investigation service was also carried out.

The following work was performed under this function:

• 14 routine/safety maintenance projects and two new construction projects were initiated/ let, which included unstable cuttings and embankments, sinkhole investigations and performance of rock anchors.
• Two in-house geo-technical contracts were let. One was a geo-technical investigation into the founding conditions for the widening of structures and the other an investigation into the performance of rock anchors.

The laboratory also assisted in the following projects:

• Long term behaviour of bituminous binders (completed).
• Assessment of gyratory compactor (completed).
• Development of techniques for community based maintenance.
• Development of K-Mould.
• Procedures to measure binder film thickness.
• Binder extraction procedures.

Enhance technology and information transfer and exchange

Activities:

• Planning and administration
• New construction
• Routine/safety maintenance
• Periodic/special maintenance
• Rehabilitation/upgrading
• Traffic management
• Non-national roads
• Operate toll roads

Directorate Strategic Planning

Functions

Develop road network management systems

• Develop road and network management systems
• Monitor the road network
• Perform strategic network planning

Related Activities:

• Planning and administration
• routine and safety maintenance
• periodic and special maintenance
• rehabilitation and upgrading
• traffic management

In respect of all the related activities - and particularly planning - the Chief Directorate continued to make the best use of its existing Pavement Management System to identify and prioritise pavement repair and rehabilitation projects. However, after investigation, it was found that both the Pavement and Bridge Management Systems should be replaced with more modern systems offering more informative and accurate financial and economic evaluation and planning features. This was followed by a process of identifying candidate systems and performing a detailed analysis of each. We expect to implement the new systems in the coming report year.

Human Resource Development in the form of a course in Road Infrastructure Management at the University of Pretoria preceded the work done by personnel in more clearly defining the various Road Management Systems' other sub-systems. Work commenced on drawing up functional specifications for sub-systems which would deliver better management of consultants, road signs and markings, as well as the flow of work from design through to construction.

In partnership with the Chief Directorate Road Traffic, the definition of the Traffic Operations Management System (TRAFMAN) was completed, and in the coming year a special committee involving all roads authorities will work on the finalisation of the functional specification, as the system is to be implemented by the National and Provincial Roads Authorities as part of a strategy to improve traffic safety.

The implementation of a Geographical Information System (GIS) was also investigated during the year. Depending on decisions yet to be made, Road Management Systems may well be implemented using GIS as a user interface, as the investigation has indicated that such a system would be a highly effective decision-making tool if this strategy were to be followed.

Traffic Management has been substantially improved during the financial year with the commencement of work on the first seven of 25 new Incident Management Systems, to augment the five previously developed. These systems include the development of co-operation protocols between emergency service providers on National Roads, in order to save lives by ensuring a rapid response using the most appropriate equipment, staff and vehicles, and by clearing incident scenes as quickly as possible.

It should, however, be mentioned here that we are not yet in a position to produce the comprehensive reports required in the Business Plan, as the management systems required to produce these reports have not yet been developed.

Monitor the road network

Related activities:

• Planning and administration
• routine and safety maintenance
• periodic and special maintenance
• rehabilitation and upgrading
• traffic management
• operate toll roads

The monitoring of the road network has centred mainly on traffic counting at over 300 counting stations situated across the country. The traffic figures produced provide important information for planning purposes, the programming of all forms of upkeep and rehabilitation, traffic management and the auditing of toll plaza income.

Following strides made in the improvement of available technology, in which the Chief Directorate made important contributions in a number of ways, the weighing of vehicles in motion by means of specialised equipment has commenced at a number of locations. Armed with both traffic counts and the mass of vehicles on the country's roads, engineers will be far better equipped when determining roads provision and maintenance and rehabilitation strategies. At the same time, strategies to curb the problem of vehicle overloading will be able to be implemented with the support of a weigh-in-motion network.

During the year, a project was launched to upgrade and modernise the traffic observation data system, and to prepare for the incorporation of traffic data into an integrated Road Management System. This project is ongoing and will be completed during the coming financial year.

Substantial progress was made with the development of traffic data formats, intended to serve as the data exchange standard between all Provincial and National Roads Authorities, allowing for the easy sharing of traffic data, and also for the development by private sector suppliers of observation equipment compatible with Roads Authorities' needs.

Perform strategic network planning

Related activities:

• Planning and administration
• new construction
• routine and safety maintenance
• periodic and special maintenance
• rehabilitation and upgrading
• traffic management

Although short-term planning has successfully been undertaken using tools currently at the disposal of the Chief Directorate (e.g. the Pavement Management System), long-term planning has been severely hampered during the financial year by an acute shortage of staff. Nonetheless, considerable thought was given to revising the planning methodologies used in the past.

It has been concluded that our philosophy should change from one of planning for traffic growth to one of using roads as a catalyst for social and economic upliftment. This philosophy has already been applied in the identification and development of a number of significant Spatial Development Initiatives launched and worked on during 1996/97.

In the review of the National Road Network to be undertaken during the next financial year, this focus will be strongly applied and all opportunities sought to stimulate the development of the country through the building and maintenance of roads.

Directorate Construction And Maintenance

Activities

Routine and Safety Related Maintenance

• Pioneered the concept of private sector involvement in Routine and Safety related Maintenance in this country.
• Progressed from conceptual stage through compilation of suitable documentation to appointment of consultants to prepare contract documents to go to tender on eight projects during 1997/98.

Periodic and Special Maintenance

Embarked on Project Performance Guarantee Specifications, namely:

• Bitumen rubber seal on the N1 between Pienaarsrivier and Warmbaths;
• Silicone joint seals on a concrete road on the N12 between Ogies and Witbank, with the contractors accepting responsibility for the final product over an extended defects liability period;
• First overlay with stone mastic asphalt on the N1 at Kroonstad, rendering higher stability and friction than conventional asphalt mixes.

Rehabilitation and Upgrading

• Rehabilitation of the N1 between Winburg and Ventersburg completed three months ahead of schedule.
• Upgrading of the N3 Nchanga to Cato Ridge completed two months ahead of schedule.

New Construction

• Opening to traffic of the N2 North Toll Highway four months ahead of schedule;
• Opening of the N1 Toll Highway between Nylstroom and Pietersburg, six months ahead of schedule;
• N4 Maputo Development Corridor progressed from tender invitation to final stage of concession agreement with the tendering consortium (concessionaire);
• All contracts on the N2 South Coast Toll Highway awarded and in progress.

Budgeted Amount : R261,682 million
Revised Budget : R281,603 million
Actual Expenditure : R283,341 million

The R22 million over-expenditure was due to the fast progress on the Natal North Coast Toll Highway and the Kranskop-Pietersburg Toll Highway, both projects opening to traffic well ahead of time.

On two other projects, namely the N17 between Rosettenville Road and the Elands Interchange and the Huguenot Toll Highway between the East Portal and Florence, the high rainfall of the 1995/96 rainy season and related construction material problems caused delays during the previous financial year. In order to open the projects on time, construction was accelerated during 1996/97 resulting in budget over-expenditure.

On new construction, the targeted 12% of project value to be directed to job creation and the development of emerging entrepreneurs was achieved.

Periodic and Special Maintenance

Budgeted amount : R164,178 million
Expenditure : R92,023 million

Under-expenditure on this schedule was due mainly to project delays arising from the late appointment of consultants.

Routine and Safety-Related Maintenance

Budgeted Amount : R104.213 million
Expenditure : R87.302 million

This under-expenditure arose from the inability of some of the Provincial Authorities to meet with maintenance requirements for National Roads. These Authorities have indicated that they will in future not be able to handle this responsibility.

Private sector involvement in routine maintenance of National Roads has become a necessity and the Chief Directorate Roads is well advanced in facilitating this. Routine Maintenance Contracts open a vast new field for work creation and the development of emerging entrepreneurs, and the contract documentation is specially structured to promote this principle.

Rehabilitation And Upgrading

Budgeted Amount : R248,362 million
Expenditure : R216,554 million

Under-expenditure was mostly due to late appointment of consultants and the fact that the reconstruction of the N4 between Kaapmuiden and Strathmore was postponed in view of the Maputo Development Corridor project.

Directorate Geometric and Structural Design

Activities

Geometric Design

• In-house detailed design for the widening of National Route 1 section 20, between Hans Strydom interchange and Rivonia Road interchange, to the six-lane stage, is approximately 40% complete.
• In-house detailed design for a new section of National Road 8 sections 8 and 9 between Paardeberg and Kimberley is 70% complete.
• Detailed design for the upgrading of National Road 11 section 3 between MR 35 and Newcastle was completed.
• Detailed design for the upgrading of National Road 2 section 29 between Mariedal and Mzundusi was completed.
• Detailed design of the new alignment for National Road 2 section 22 between Mtentweni and Hibberdene was completed.
• After a number of years in the planning stages the Durban Southern Gateway Project on National Road 2 section 25 is currently being implemented as a fast track project.
• Detailed design for the upgrading of National Road 2 section 21 between Harding and Izingolweni is currently 25% complete.
• Detailed design for the New MR 360 Stockville Interchange on National Road 3 section 1 was completed.
• Detailed design for the upgrading of Westville Interchange on National Road 3 Section 1 was completed.
• Preparatory design was completed for the proposed new National Route 3 sections 6 and 7, De Beers Pass Route, to assist prospective concessionaires to bid for a BOT project.
• Preparatory design was completed for the National Route 4 Sections 3 to 8 Maputo Development Corridor, to assist prospective concessionaires to bid for a BOT project.
• A new policy for the processing of Service Area applications was implemented and 70 applications were processed.

Structural Design

• Investigations into a new Bridge Management System were substantially completed.
• A draft was prepared for a revised Code of Procedure for Structural Design and should be finalised in the course of 1997. This draft is currently being used in Structural Design.
• In-house detailed design for Bridges B187 and B189, Jacaranda Avenue and Bryanston Street respectively, on the National Road 1 Section 20 widening project are 50% complete.
• Detailed design for rehabilitation of the JJ Serfontein bridge over the Orange River on the old National Road 1 was completed and construction is currently under way.
• Detailed design for rehabilitation of the Vioolsdrift bridge over the Orange River on National Route 7 Section 8 over the Namibian border was completed.
• Evaluations of software for structural design were carried out and selected packages will be used for future in-house work.

Drawing office

• A draft of the Road Traffic Signs Manual for the Southern African Development Community is well on the way to completion.
• Geometric drawings for the widening of the N1-20 Johannesburg Western Bypass are complete.
• Geometric Drawings for the new section of National Road 8 Sections 8 & 9 between Paardeberg and Kimberley are 50% complete.
• Drawings for the Road Signs on National Route 17 are 90% complete.
• Locality and key plans were compiled for the N3 and N4 Corridor documentations to assist prospective concessionaires to bid for BOT projects.

Survey

• The fieldwork, calculations and proclamation sketches were prepared for a 265 km section of the National Road 4 as part of the Maputo Development Corridor between Wonderfontein and Komatipoort in order to proclaim the road reserve using co-ordinates.
• Expropriation diagrams were prepared for the 99 km section of the proposed new section of National Route 3 between Keeversfontein in Natal and Warden in the Free State.

Directorate Toll Roads

This Directorate is tasked with overall responsibility for the management of toll roads within the National Road Network.

Activities

• Toll road feasibility studies
• Design and construction supervision of toll facilities
• Operation and maintenance of toll facilities
• Promotion of toll roads

During 1995/1996 an additional 200 kilometres of toll road were constructed. These included the N1 between Warmbaths and Pietersburg, the N17 between Gosforth and Rosettenville Road, the N1 between Huguenot Tunnel and Florence as well as the N2 between New Guelderland and Mtunzini. The total toll road network now amounts to some 860 kilometres.

A total of 17 mainline plazas and 7 ramp satellite plazas were in operation during the 1996/1997 financial year. Two new mainline plazas - Nyl on the N1 North and Mtunzini on the N2 North Coast Toll Road - were opened during the year. Three satellite ramp plazas were opened: Sebetiela on the N1 North, Mandini on the N2 North Coast Toll Road and Gosforth West on the N17.

Traffic has, on average, grown by 4.63% during this financial year. The average daily traffic through all the plazas amounted to approximately 165,000 vehicles, compared with 157,000 recorded in the 1995/1996 financial year.

Toll revenues for the year amounted to R339 million, compared with R286 million in 1995/1996, representing an increase of 18.5%. Tariffs were adjusted to the rate of inflation on 1 March 1997.

On the expenditure side, actual interest paid averaged at 47% of the total expenditure, including construction expenditure, whereas operating and routine maintenance expenditure averaged at a reasonable 9% and 6% respectively.

Various promotional exercises were launched during the year, highlighting construction and upgrading events. These included compiling and distributing press releases, arranging media events, conferences and exhibitions and communicating the message that this Directorate is delivering a safe, reliable and well maintained Toll Road Network.

Directorate Financial Programming and Administration

Sub-directorate Land Acquisition and Identification

The function of the Sub-directorate Land Acquisition and Identification is to acquire all land required for the construction of national roads, as well as to identify all SARB-owned land. The activities of the Sub-directorate all relate to the expropriation, valuation, designation and registration of required land, as well as record-keeping on the SARB's land portfolio.

Over and above the general goal of rendering the best service possible, the following specific goals were set for the 1996/1997 financial year:

• To acquire, in good time, all land required for new construction, rehabilitation and upgrading purposes, as well as for contracts relating to non-national roads;
• To establish and staff a new Division known as Identification of Land which will be responsible for the identification of all land that was appropriated by the former Provincial Administrations and for which compensation was paid for from the NRF, as well as to identify all land that was acquired by any Authority for road building purposes, and is now utilised for the road reserve of proclaimed national roads;
• To investigate and/or negotiate the possible appointment of consultants to perform the administrative functions related to Identification of Land;
• To ensure that data regarding all land registered in the name of the SARB is captured in the Land Assets Register;
• Where possible, to transfer all acquired or alienated land which has already been surveyed.

In spite of the fact that certain projects allowed very limited time for land acquisition between the issuing of the contracts and the establishment of contractors on the various sites, the above goals were largely met by the Sub-directorate. During the year no construction project was ever delayed as a result of the non-acquisition of required land.

The Division Identification of Land was also established and by the end of the year negotiations to appoint Intersite to identify all SARB owned land on national route N12 were almost concluded. Not only have the data in respect of all the properties registered in the name of the SARB (approximately 9,000) been captured in the Land Assets Register, but the register has been updated to reflect data on approximately 21,000 portions of SARB owned land. The volume of concluded transactions relating to the transference of acquired or alienated land was also substantially higher than in previous years.

Sub-directorate Estate Control and Support Service

The function of the Sub-directorate Estate Control and Support Service is to manage and control all real estate owned by the SARB and to render a support service to the Chief Directorate.

Division Estate Control

Activities

• maintenance;
• legal administration;
• granting of servitudes;
• leasing or disposal of SARB real estate.

Division Support Services

Activities

• procurement;
• statutory control;
• claims against and by the SARB;
• provision of a secretariat service to the SARB and various committees;
• provision of registry, messenger, graphic design and reproduction services.

Except for the general goal of rendering the best possible service, the specific goals of the Sub-directorate for the 1996/97 financial year were to:

• propagate new policy regarding the alienation and utilisation of SARB-owned land in order to minimise the size of the land portfolio and to maximise the benefits derived from land owned by the SARB;
• establish a computer database to store information on leased land, land on which rates and taxes are payable and details of claims instituted on behalf of the SARB.

The above goals were largely met. The database modules relating to leased land and land on which rates and taxes are payable were fully commissioned, whilst the module relating to SARB claims has been designed but will only be implemented once the required computer hardware has been delivered.

The SARB has also approved a new policy regarding the alienation of land. Its implementation will greatly assist in the task of reducing the existing land portfolio.

The Board also approved the implementation of a policy whereby it will in future be possible to enter into agreements with developers and other companies on joint-venture development of SARB-owned land in order to maximise the potential inherent in the ownership of this land.

The goals of both these Sub-directorates for the 1997/ 1998 financial year are closely linked to the planned establishment of a National Roads Agency and mainly focus on investigating possibilities for out-sourcing their current functions.

SPATIAL DEVELOPMENT INITIATIVES -

DELIVERING GROWTH WITH EQUITY

The SDI Concept

The SDI programme is not just about the Maputo Development Corridor. It includes a growing spread of both regional and urban initiatives in a number of our provinces. The seed capital for the projects comes from a R304 million allocation from RDP funds, administered by the DoT on behalf of the SDI programme. The programme is complex and multi-dimensional, requiring input from a range of government departments. It is coordinated by Trade and Industry and includes the DoT, Tourism and Environment Affairs, Land Affairs and Agriculture, Water Affairs and Forestry, Culture and Technology, Public Works, Constitutional Development and Local Government.

The regional SDIs are projects identified on the basis of their inherent unutilised economic potential. Their developmental objective is to create sustainable jobs in these areas, by identifying and facilitating new investment. The mechanism by which this is achieved is focussed, co-ordinated action by all levels of government and all relevant line functions within the spatially defined area, in order to remove blockages to investment.

The SDIs are part of the GEAR macro-economic strategy, and therefore fit into a broader macro-level strategy of simultaneously growing the economy, stabilising conditions for sustained growth and opening up economic opportunity and employment prospects for previously disadvantaged sectors of our society.

The urban restructuring projects are concerned with the development of transportation and land use planning to ensure that the spatial and economic distortions in our urban areas are overcome.

Metropolitan Urban Restructuring Projects

There are five such projects, which are being undertaken in partnership between the DoT and metropolitan councils. These are briefly discussed in the chapter in this Report on Urban Transport, under the heading Demonstration Projects.

DoT Participation in Regional SDIs

Maputo Development Corridor

The short-term priorities of the MDC are all centred on road, rail and port infrastructure delivery, which will dramatically decrease the time and cost overheads associated with transportation of goods and people between South Africa and Mozambique, and between our two countries and international markets.

The single toll road project from Witbank to Maputo is a Build, Operate and Transfer (BOT) project, which has been concessioned to the TRAC consortium for a period of 30 years. The project has a value of more than R1 billion and is entirely private sector financed. The concession contract was due to be signed on 5 May 1997 in Maputo, and construction is to start after financial closure, by December 1997.

This project is significant in a number of ways. It is the first cross-border, privately financed BOT project in the region, and is one of only a few such projects in the world. The concession contract is between the Joint Implementing Authority, comprising the Government of Mozambique and South Africa, and the concessionaire.

Secondly, capital expenditure on improvements to the road's capacity will be made in accordance with traffic growth during the period of the concession. (Conventional BOT projects normally involve high capital expenditure only at the beginning of the concession.) Thus, the concessionaire will upgrade, rehabilitate and maintain the road during the entire period of the concession, and will transfer the road back to the two governments with a 15 year design life on the road and an asset value of R1 billion in 1996 prices.

Thirdly, the economic reconstruction and environmental requirements of our two countries will be met by the concessionaire. The proven ability of highway construction to generate full-time, part-time and induced jobs is an important element of the concession, as it provides opportunities for small business and local people to benefit directly from the income opportunities arising from the construction process, as well as from the up- and down-stream industries related to construction. The concession also allows for third party equity to be taken up in line with the objective of empowering disadvantaged groups in the private sector. Organised black business groups have been interacting with the concessionaire, both for equity and for accessing contractual work on the road.

The port and rail rehabilitation projects were due to be advertised by the end of May 1997. These will be concessioned to a joint venture company, in which the private sector will have a 51% share. It is expected that the private sector concession partners will be announced by December 1997.

The bilateral agreement for the one-stop border facility planned for Ressano Garcia/Komatipoort is currently being negotiated. It is expected that this facility will enter construction before the end of 1997.

The Maputo Corridor Company is to be launched in July 1997, with its Head office in Mozambique and a branch office in Nelspruit. The company will be mandated by governments of the region and private sector role players to facilitate investment in the corridor area and lobby the relevant governments where there are blockages to investment. Private sector players and neighbouring countries will be invited to subscribe to the articles of association in June 1997.

The Departments of Trade and Industry in SA and Mozambique have established a Working Group which will focus on the private sector anchor projects which are planned for the corridor. This group will ensure that the necessary facilitation from the two governments is forthcoming, to ensure that projects such as the multi-billion rand Alusaf smelter in Maputo go ahead without delay.

Maputo Development Sub-corridor

The sub-corridor is intended to create better access between the port of Maputo, the mining potential in Phalaborwa and the agricultural resources of the Northern Province in the Xenon area.

The DoT, together with the Northern Province and Mpumalanga provincial governments, has established a Technical Steering Committee to ensure that the rehabilitation of the road is undertaken. The committee is also involved in the identification and implementation of new investment opportunities in the tourism, industrial and agricultural sectors. An important focus of the provincial programme is the development of the SMME sector.

To date, four tourism projects are being packaged for investment, two agricultural projects are being dimensioned for packaging, and a steering committee of all interested black business organisations has been established to interact with both the infrastructural and sectoral investment projects.

The upgrading of the road is intended to begin by September 1997, and is being financed out of the RDP allocation for SDI implementation projects.

Lebombo SDI

The Lebombo SDI is a project which includes Swaziland, Mozambique and SA. The project is intended to realise new investments in tourism and agriculture in the northern KwaZulu-Natal, Eastern Swaziland and Southern Mozambique areas. The DoT is involved in the building of a road which will service the tourism industry, from Hluhluwe to Ponta Da Ouro, opening up an area of significant tourism potential.

These areas have been heavily disadvantaged as a result of apartheid and war, and the initiative is intended to deliver sustainable jobs through the agricultural and tourism potential which is waiting to be unlocked. The road on the Mozambique side is already planned; it will link Ponta Da Ouro to Maputo and will be financed jointly by national and provincial government, as the traffic levels at present are insufficient to warrant a BOT project.

This project demonstrates the importance of infrastructure in realising economic and social objectives. Fiscal expenditure on the road is seen as justifiable and necessary, in light of the enormous opportunities which improved access will realise. Construction of the first section of the road will begin in August 1997.

The project also demonstrates the importance of co-operation between governments and within government. National, provincial and local government are all directly involved in the planning and implementation of the project. This co-ordination effort is necessary if investors are to feel comfortable and confident that their investments are not only safe, but also that they will be able to realise sufficient returns.

Local communities are to participate directly, not only in jobs arising from these projects, but also as equity partners in the investment projects. Economic growth in these areas, together with focussed and co-ordinated action by government at all levels, will mean that local people have access to sustainable sources of income, improved services and facilities and a better overall quality of life.

Wild Coast SDI

The Wild Coast SDI is located along the former Transkei Coast in the Eastern Cape. This area, like Lebombo, is characterised by the absence of new investment and sustained growth. The planned road which will open up access to tourism resources between the Kei river and Port St. Johns, is to form part of the national road network, and will link into the existing N2.

The road will be concessioned on a BOT basis, and the concession will include access to tourism concessions. The idea behind this SDI is to enable the private sector simultaneously to finance the building of this road - which will cost approximately R200 million - and gain access to tourism concessions on the coast. Bidding consortia would therefore include both road construction and tourism-based companies, and would be required to bid on the basis of predetermined criteria established for both the road and the tourism development elements. The tender contract is expected to be awarded before the end of 1997.

Rustenberg N4 West

The Rustenberg SDI is being undertaken with the longer term view of creating an East West transportation linkage from Walvis Bay in Namibia, through Botswana and South Africa to the port of Maputo in Mozambique. This SDI includes two phases. The first phase is the linkage by road of the N4 East, across the north of Pretoria to Rustenberg. The new alignment for the N4 west is along the PWV2, and includes the Brits to Rustenberg section. This road is being planned as a BOT project, and construction will begin before the end of 1997.

The second phase involves the upgrading of the existing road between Rustenberg and the border with Botswana, to Lobatse. This phase will be included in the BOT contract, but will only be undertaken once sufficient traffic flows warrant it.

The SDI team, which includes the North West Province, is currently identifying sectoral investment opportunities, which will be finalised by the end of May 1997.

The DoT Approach to Infrastructure: Highlights

The underlying approach we have taken to infrastructure is that it is a strategic sector which enables economic and social objectives to be met. Traditionally this has been approached as a fiscal responsibility. However, our involvement in the SDIs has demonstrated that the strategic economic nature of transportation infrastructure means that it can be financed by the private sector.

Transportation infrastructure is not only strategic in relation to government objectives, but also to the efficiency with which the private sector is able to operate, and therefore to the international competitiveness of our industries. Our role in this context has been clear: to identify and prioritise projects which are of strategic significance.

Where there is an established case for user-based financing mechanisms, such as toll roads, our role has simply been to facilitate access to these projects as investment opportunities for the private sector. Where there is no case for a user-based financing mechanism in the short to medium term, fiscal resources are used.

The over-riding criterion for deciding how to finance which roads, is the importance of a particular section of infrastructure to strategic economic goals. It is often erroneously assumed that economic and social goals are simply two sides of the same coin. This may be so in the abstract, but it does not provide us with a clear view of the route towards these goals and the order in which they are reached. Ongoing investments in competitive industries are the engine for sustained growth and jobs. Infrastructure is therefore a necessary catalyst, both for government and the private sector.

From government's longer-term point of view, the building, operation and maintenance of roads needs to be financed as far as possible from non-fiscal resources. Roads which are necessary, but not necessarily commercially viable, will need to be funded from fiscal resources. It is therefore essential that prioritisation should be targeted at reducing fiscal responsibility wherever possible, by partnering with the private sector to realise common strategic objectives.

A second important point of clarification relates to concessioning as a principle. Concessioning is basically lending an asset to the private sector for a specified period, with specific conditions attached. These can refer to the quality of the asset, employment targets, capital investment requirements and so on. It is not privatisation, as the asset is returned to the state at the end of the concession period. The conditions which government negotiates with the concessionaire are essentially the tools by which government is able to regulate and monitor the performance of the concessionaire for the duration of the concession period.