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 ye