SCOPE

The Policy covers all passenger movements from short distance urban transport to long distance inter-city and rural transport.

Passenger transport is a generic term used to describe both public and private modes of travel for all purposes, whether commuting or other business-related travel, shopping, tourism, recreational and casual travel.

The Policy includes principles on institutional, administrative, management, (including law enforcement), financial and planning and regulatory components. It encompasses planning including integrated land use/transport and multi-modal planning as well as transport operations. The Policy is intended to provide guiding principles for all functional levels, from national through provincial to local government authorities. Included in the Policy Framework are related fields including human resource development, energy and the environment, transport business development at all scales, information and the marketing of passenger transport policies and services. The Framework also encompasses the safety and security of passenger transport users.

Many of the interim recommendations of the National Taxi Task Team (NTTT) have been incorporated.

MISSION

In accordance with these guiding principles, the mission of the Department of Transport in respect of land passenger transport is to provide leadership in:

 "The promotion of an efficient and effective, co-ordinated, integrated, affordable, safe, reliable and environmentally friendly land passenger transport system in urban and rural areas, managed in an accountable manner to ensure that people experience improving levels of mobility and accessibility".

STRATEGIC OBJECTIVES

• Funding

To ensure sustainable and dedicated funding for both passenger transport infrastructure and operations
 

• Spatial

To encourage more efficient urban land use structures, correcting spatial imbalances and reducing travel distances and times for commuting to a limit of about 40 km or one hour in each direction

To promote the use of public transport over private car travel, with the goal of achieving a ratio of 80:20 between public transport and private car usage

To promote rural development that will improve access to opportunities by ensuring that rural workers are housed in close proximity to their work locations and services, thereby reducing the need to travel

To encourage, promote and plan for the use of non-motorised transport where appropriate
 

• Customer-based

To ensure that passenger transport services address user needs, including those of commuters, pensioners, the aged, scholars, tourists and the disabled

To improve accessibility and mobility, limiting walking distances to less than about 2 km in urban areas

To provide an appropriate and affordable standard of accessibility to work, commercial and social services in rural areas

To ensure that public transport is affordable, with commuters spending less than about 10 percent of disposable income on transport

To promote safe and secure, reliable and sustainable passenger transport

To provide readily-accessible information for the assistance of passenger transport users
 

• Planning and Regulatory

To provide appropriate institutional structures, which facilitate the effective and efficient planning, implementation, funding, regulation and law enforcement of the passenger transport system, devolved to the lowest competent level

To provide for the registration of all public transport operators as formalised commercial entities, bound by the regulations pertaining to their permission to operate

To replace operator permits with permissions (authorities) issued in terms of approved passenger transport plans

To promote and implement a system of regulated competition for tendered public transport routes or networks
 

• Operational

 
• To empower and assist disadvantaged operators to participate meaningfully in the land passenger transport system
• To ensure that operations become economically viable, requiring the minimum financial support
• To foster a stable investment environment in the public transport industry
• To encourage a professional approach to the management and operation of land passenger transport
• To foster manpower and human resources development
• To ensure that transport modes are integrated in respect of scheduling, routes and ticketing systems
• To promote acceptable and fair labour practices in the transport industry
• To ensure that land passenger transport operations are more environmentally sensitive and sustainable, and are energy efficient

KEY POLICY AREAS

Critical issues
 
Land use and transport development are not integrated owing to a fragmentation of responsibilities for the administration, planning and regulation of the various aspects of land use, infrastructure, operations and regulations. This fragmentation and the legacy of apartheid policies has led to low density development, spatially dislocated settlements and urban sprawl, resulting in inordinately long commuting distances and times, low occupancy levels, high transport costs and low cost recovery. Current housing policy which supports single units on single plots will not achieve the densities required.
 
Key recommendations

The following spatial development principles will support passenger transport policy:
 

• land use development proposals must be subject to a land use/transport policy framework within an agreed development planning process;
• the effective functioning of cities and industrial areas must be enhanced through integrated planning of land use, transport infrastructure, transport operations and bulk services.

Implementation of recommendations
 

Policy actions necessary to provide for urban restructuring (densification) and efficient land use/transport interaction include:
 
• establishment of structures (all tiers of government) which facilitate integrated planning of infrastructure, operations and land use in a co-ordinated manner;
• regulation of land use development at local level so that development approval is subject to conformity with integrated land use/transport plans;
• land use frameworks, guidelines and policies should channel development, particularly employment activities, into public transport corridors and nodes.
• development priority should be given to infilling, densification, mixed land use and the promotion of development corridors and nodes;
• containment of urban sprawl and suburbanisation beyond the urban limits should be addressed through provincial spatial development plans;
• decentralisation which disperses employment activities must be discouraged;
• unrestrained car usage and subsidised car parking should be contained through the application of policy instruments including strict parking policies, access restrictions for private cars, higher licence fees, road pricing and area licensing.
Representation of transport interests on development commissions and tribunals established in terms of development planning legislation will assist in ensuring implementation of these recommendations.

Caution should be exercised by authorities in implementing these recommendations, to avoid unnecessary bureaucracy which may stifle development initiatives.

Critical issues
 
The Constitution of the RSA, 1993, has devolved the functional areas of land passenger transport, road traffic regulation and roads to provincial legislators in terms of Schedule 6. Furthermore, the Local Government Transition Act, 1993, specifies the powers and duties of Transitional Metropolitan and Local Councils and includes the following functions:
 
• metropolitan co-ordination, land usage and transport planning;
• arterial metropolitan roads and stormwater drainage;
• public passenger transport services; and
• traffic matters.

No comprehensive enabling legislation currently exists for land passenger transport. Although the Constitutional Transformation Process (CTP) agreed by MINCOM has clarified the relationships between the various levels of government, and broad agreement has been reached on the division of functions between central and provincial government, further clarification of the exercise of specific powers and functions is required. The CTP agreement governs relationships affected by the assignment of existing legislation to provinces and may be affected by new over-arching land passenger legislation.
 

Key recommendations

Government has agreed on the principle of subsidiarity and devolution of public passenger transport functions, powers and duties to the lowest appropriate level of government.

A single over-arching Land Passenger Transport Act will be compiled at national level, clarifying the relationships between levels of government, and further defining concurrent and exclusive powers.
 

Implementation of recommendations

The Land Passenger Transport Act will specify the allocation and execution of national, provincial and local passenger transport powers and functions.

Central Government

National functions will be as follows:
 

• macro passenger transport policy;
• norms and standards;
• strategic planning;
• transport research and studies;
• funding of some infrastructure projects in the national interest;
• demonstration projects;
• aspects of transport-related training;
• international road passenger transport agreements and regulations in collaboration with the
• relevant provinces;
• some inter-provincial passenger transport matters.
Provincial Government

Broadly speaking, original financial and executive powers will be given to the lower tier transport authorities, and the provinces will be responsible for co-ordination. Outside metropolitan, district and local transport areas, the provincial transport department will be fully responsible for ensuring the provision of rural transport infrastructure, facilities and services. Provincial functions and responsibilities include:
 

• administration of long distance passenger transport in consultation with other provinces;
• developing provincial land passenger transport policy and legislation;
• delimitation and designation of passenger transport areas and transport authorities (MTAs, DTAs or LTAs);
• setting provincial norms and standards;
• co-ordination of passenger transport among lower level authorities;
• implementation, monitoring and revision of provincial passenger transport policy;
• approval of transport plans;
• ensuring and, where appropriate, undertaking the planning, design, construction, maintenance and funding of public transport operations and infrastructure;
• ensuring the provision of public transport services;
• provision of transport funding including subsidisation;
• co-ordination of land use and transport planning at provincial level;
• advising the provincial Development Tribunals to ensure that policies in the provincial and local
• transport and spatial development frameworks are reflected in development decisions; and law enforcement.
A provincial Permit Board will be responsible for the issuing of permits at the request of the provincial passenger transport department or metropolitan passenger transport authorities, services or local councils.

Metropolitan structures

In line with the Constitution of the RSA and the Transitional Local Government Act, land passenger transport powers and functions should be assigned to the lowest competent level of government. This level should take full responsibility for execution and implementation in metropolitan areas. The functions assigned to this level should be executed within the framework of provincial legislation, policy, guidelines, norms and standards and appropriate institutional structures should be established to take responsibility for these functions.

Services, district and local structures

Services, district and local councils will act as transport authorities. They will have the same powers and functions as metropolitan authorities to do planning and implementation of infrastructure and operations. Provincial transport departments will be responsible for co-ordination in respect of services, district and local structures and, in particular, rural bodies which have little or no competence to administer the function.

Critical issues
 
There is no statutory requirement to issue permits in terms of passenger transport plans in some cases leading to unbalanced supply, inefficient, uneconomical and unsafe public transport services.

Insufficient and ineffective transport law enforcement leads to non-compliance with the conditions of permits.

Deficit subsidy systems may lead to inefficient services.
 

Key recommendations
 
The public passenger transport system in South Africa will be based on regulated competition. The regulation will be in the form of a permission, contract or concession awarded in terms of a passenger transport plan and supported by strict law enforcement. Permission is the authority to operate a route or network with no subsidy.

Contract is the authority to operate a route or network at a tendered contract price.

Concession is the authority to operate a rail line or network at an agreed price.

There should be a fundamental shift away from monopolistic situations. There should also be a shift away from systems which target commuters only towards one which benefits all passengers.

Regulated competition is defined as follows:

where public transport services require government funding support, for example for welfare, or traffic management, or strategic reasons, competition will take the form of tendered contracts (competition on routes or networks will then be precluded);

where public transport can be rendered as profitable commercial services, on-the-road competition will be encouraged, with competition being regulated through the issuing of permissions based on capacity management in terms of the supply policies of the provincial or local passenger transport plans (PTPs). (For example, this will apply to inter-city coach services, certain long-distance minibus-taxi services and viable short-distance urban services.);

charter services will be fully competitive with the granting of permissions being based solely on compliance with safety and traffic regulations.
 

Implementation of key recommendations
 
The future regulation of land passenger transport in South Africa will be in the form of a permission, awarded in terms of a passenger transport plan and supported by strict law enforcement. Permission is the authority to operate a route or a combination of routes or a network.

Contracts will only be awarded to privately-owned or corporatised municipal and parastatal bus companies and registered minibus operators to ensure that there is fair competition between competing tenderers. All road-based public transport operators should:
 

• operate as separate legal entities from any level of government;
• have no direct access to finances other than on a commercial basis;
• operate on business principles; and
• be liable for taxation.

Successful tenderers, when awarded a contract, will automatically be awarded a permission to operate. Permissions for unsubsidised services will also be awarded only to registered operators on the basis of a PTP. Contracts shall only be awarded by the transport authority to a recognised route entity, co-operative, association, close corporation, company or a legal person, and should be based on a passenger transport plan.

Rail operations should be based on operating and maintenance concessions, awarded by transport authorities, based on a transport plan with ownership of infrastructure and rolling stock being retained by transport authorities.

The following are the main implications of regulated competition for public transport modes:
 

Minibus taxis:

regulated competition will mean that the minibus taxi industry will have to be formalised and measures introduced to enhance its economic viability. Minibus- taxis could form legally registered businesses, for example, co-operatives or companies, or be registered associations. These will have to operate in terms of permissions to operate on a route or network. Permissions will be granted by the provincial permit board. The number of permissions granted on a route or network will be determined by need (demand) estimated in terms of the PTP. Minibus-taxi businesses may also compete for the awarding of contracts by transport authorities. As far as possible in terms of the transport plan, the determination of routes/networks will be based on existing operations (including both legal and pirate operators). Financial and technical assistance will be offered to minibus-taxis to enable them to obtain permissions and/or contracts and to improve their economic viability. Minibus-taxi businesses may apply for permissions and/or contracts either on their own or in partnership with bus operators.

Bus operations:

all bus operations must either be privately owned legal entities or fully corporatised municipal or parastatal bus companies. They may obtain permission to operate from the provincial permit board. They may also compete for contracts which will be awarded by a transport authority. Existing permits on subsidised routes will have to be translated into interim contracts. Specific efforts should be made to encourage small, medium and micro enterprises (SMMEs) in the bus transport industry.

Rail passenger transport:

the national transport authority will own the rail infrastructure, rolling stock and land associated with rail reserves. Steps will be taken to utilise rail reserves in accordance with transport plans and spatial development frameworks. Operating and maintenance concessions will then be awarded by the transport authorities at provincial or metropolitan level. The current deficit financing system will have to be abolished and replaced with a concession system which will ensure more efficient and effective use of funds. The transport authorities will determine fares based on a common cost structure and taking account of the fares of other modes.

All transport operators

 will be encouraged and empowered to bid for contracts and concessions. Contracts will be partitioned into manageable parcels to encourage bids by co-operatives comprising small, medium and micro enterprises (SMMEs).

Critical issues
 
Urban and particularly public transport have experienced low priority in national funding, apart from the subsidisation of rail and bus services.

Specific funding issues which have arisen include the following:
 

• the absence of dedicated funding sources for passenger transport;
• inadequate funds to ensure the implementation of long-term plans;
• the funding of public transport operations through multiple sources and channels;
• the imbalance between spending on infrastructure and operations.
 
Key recommendations
 
To augment funds transferred from central level, fiscal powers for provincial and local governments in respect of their functional responsibilities will be sought.

The application of funds to transport improvements should be self-sustaining and replicable. To encourage this, the users of urban transport facilities should pay for all or most of the costs incurred within the limits of affordability. Where subsidies are required for welfare considerations or to promote public transport they will be applied through mechanisms which provide incentives for efficiency.

Funding should, however, be channelled through a single authority. This is to ensure that transport operations do not receive funds from more than one authority for offering the same service. A single authority therefore needs to co-ordinate the funds that any one operator receives for rendering passenger services.

Transport authorities, in consultation with communities, must define passenger transport needs at affordable fare levels in order to identify and target recipients of mobility support. Having identified the mobility needs of communities in order to determine the demand for state supported services, transport authorities should define routes and/or networks for tendered contracts to be rendered by competing private, corporatised or co-operatised operators.

Minibus and other SMME transport operators will be encouraged to compete for the award of contracts by transport authorities. Assistance will be offered to disadvantaged operators to enable them to participate in the system.

Transport authorities should apply alternative support mechanisms aimed at cost reduction for current minibus operators.
 

Implementation of recommendations
 
Funds must be allocated to authorities on a rational basis. Incentives, in terms of additional funding, should be offered to authorities for promoting public transport investment.

Operational subsidies should be based on tendered contracts. These should be in terms of a rational and common cost structure, allowing for some flexibility for differences in, for example, operating conditions.

Funding of passenger transport infrastructure and operations should be as follows:
 

• Infrastructure funding for road-based public passenger transport should mainly be the responsibility of metropolitan transport authorities or local authorities with assistance from provincial transport authorities, based on passenger transport plans. The national government could provide incentive or seed funding to such metropolitan transport authorities or local authorities to develop infrastructure in support of public transport over private transport.
• Rail infrastructure may be funded primarily by the national government, but may also be funded by a provincial government, having due regard for the financial implications of the operation of rail services.
• Funding of operations should be the responsibility of metropolitan transport authorities or local authorities, with own funds as well as funds allocated to them by provincial transport authorities in terms of passenger transport plans.

The base mechanism for subsidising road-based public transport is the competitive tender. In the application of funds to support public transport or assist targeted users, transport authorities will be expected to determine the details of the mechanism which suit local conditions. Concessionary fares for different types of user should be considered to target special categories of passengers. Transport authorities have total discretion in deciding whom should be the beneficiaries of targeted subsidy.

The Department of Transport, in collaboration with other government departments, will develop mechanisms to assist, especially the minibus-taxi industry.

SUPPORTING RECOMMENDATIONS

Human resource development
All levels of government must be responsible for identifying needs in establishing priorities and programmes to build expertise on an ongoing basis.

Education and training facilities must be established to promote human resource development in land passenger transport. Initially, existing education and training facilities must be deployed to meeting training needs. All role players should be given the opportunity to gain access to such facilities.
 

Small, medium, and micro enterprises
Empowerment of SMMEs through training courses should receive priority.

Integration of SMMEs into the formal public transport system should be addressed pro-actively and in a structured manner by all levels of government and will be a priority in the transitional restructuring of the passenger transport industry.
 

Special categories of passenger
The approach to passenger transport should shift priority from private to public transport and within the latter sector from the provision of primarily peak period commuter services to a fully fledged public transport system catering for a wide range of passengers.

The needs of special categories of passengers should be identified by the responsible transport authorities, especially at metropolitan and local level, and these should be addressed in their passenger transport plans.
 

Energy efficiency and environment
The use of more energy efficient and less pollutant modes of transport must be promoted.

A greater energy awareness should be fostered in both planners and users of the land passenger through public awareness programmes, differential fuel prices, etc. In this regard, close co- operation between the Department of Mineral and Energy Affairs and the Department of Transport is essential.
 

Rural passenger transport
The need to give attention to rural passenger transport is recognised. Accordingly, a national investigation should be undertaken to develop a guideline and framework of principles for rural passenger transport policy. Different principles should be investigated including "mobile service centres", minimum accessibility standards, rural settlement patterns, integration of urban and rural areas and integrated freight and passenger services. The framework should be developed by central government in collaboration with provincial ministers.
 
Comprehensive integrated planning
It is essential for land passenger transport planning to be carried out in an integrated fashion covering all modes. This planning should be done at as low a level as possible and by the relevant transport authority. Independent planning by modal operators, should be discouraged since the passenger transport plan should be comprehensive and cover all modes and the spatial integration of land use activities.

The planning endeavour should, at the least, address the strategic objectives of the Department of Transport.