Hon Chairperson, hon members, members of the Transport family, ladies and gentlemen, there is no doubt that infrastructure in general, and specifically transport infrastructure, plays a major role in the economic and social development of a country.
Furthermore, as Ferreira and Khatami, 1966, argue: investment in social and economic infrastructure will play an important role in increasing the productivity of labour and business, equally providing a platform for job creation.
President Jacob Zuma, in his 2011 state of the nation address, highlighted that despite the economic growth in the past 10 years, poverty and unemployment still persist. I quote him: "To address these concerns, we have declared 2011 a year of job creation through meaningful economic transformation and inclusive growth."
Transport, and its related infrastructure, is a catalyst for economic growth and for direct and indirect job creation in South Africa. The provision of reliable, sustainable and safe transportation of people and goods from place to place is critical to the transformation of our country.
After decades of established urban planning and development, with rural communities being marginalised and left on the peripheries, the current changing human settlement patterns and economic challenges call on us to reconnect communities with each other, and with economic opportunities and social amenities to ensure that we develop sustainable communities. To address this challenge will require an integrated and collective effort by all spheres of government: national, provincial and local.
An effective and safe public transport system will reduce costs and create job opportunities. At the same time, it will increase the quality of life of our communities, a priority of government.
The tasks before all spheres of government responsible for the various transport modes are numerous, ranging from budget constraints to ageing transport infrastructure and commuter demands. Notwithstanding these challenges, government continues to aggressively address the transport sector's needs.
Let me reflect on a few flagship projects and programmes that have been implemented and that will have a positive impact on the transport sector modes.
The completion of the ultramodern, state-of-the-art Gautrain rapid rail network - Link 1 between Sandton and O R Tambo International Airport opened in June 2010 and Link 2 from Johannesburg to Pretoria to be opened in June 2011 - ushers in a new era in public transportation, matching world standards for rapid rail transport. By travelling at 180 kilometres per hour, taking 38 minutes from Johannesburg to Pretoria, the Gautrain will set a benchmark for such future developments in South Africa.
The question one now asks is: Where do we go from here? The SA National Roads Agency Limited, Sanral, will continue to implement its mandate to improve, manage and maintain the national road network to ensure that the roads function properly.
Prasa, the Passenger Rail Agency of SA, having identified the current state of the ageing rolling stock, have embarked on an 18-year new rolling stock acquisition programme. Valued at R86 billion over 18 years, a total of 718 new train sets will be procured over this period.
Of importance is the local content requirement target of 65%, the up- skilling of local engineers and the creation of both direct and indirect jobs. This programme will create 100 000 jobs and develop skilled and semi- skilled people, within the fields related to the manufacturing and maintenance of the rolling stock. The modernisation of our network, with particular interventions in addressing the signalling systems and the rolling stock, is a priority.
In addition to this allocation, an additional R32 billion is allocated over the next three years, with R19,5 billion ring-fenced for capital spending to upgrade existing infrastructure, signalling systems and rolling stock. This will have a direct, positive impact on community safety and comfort.
Other key strategic projects of importance have been identified. These include the Durban-to-Johannesburg Corridor. This is a multi-agency structure comprising Gauteng, the Free State and KwaZulu-Natal provincial governments, the eThekwini Municipality, the Johannesburg Municipality, the Department of Trade and Industry, and the Department of Public Enterprises.
The structure will drive the development of passenger and freight services on the Durban-to-Johannesburg Corridor. It will also consider improvements to the Durban Port, the future use of the old Durban international airport site, and the Harrismith, Cato Ridge and Johannesburg City Deep logistical hubs.
Our vision is of an Africa that has a transport infrastructure that facilitates the movement of goods and people by road and rail, effectively connecting with our neighbours in the Southern African region.
The successful implementation of the Rea Vaya Bus Rapid Transit System, currently transporting 30 000 people per day, was awarded the "Encouragement Award" by the International Association of Public Transport in Dubai in May 2011.
Another achievement of the Rea Vaya Bus Rapid Transit System relates to the empowerment of the taxi industry. Earlier this year, the taxi industry in Johannesburg became a 66% shareholder of the Rea Vaya Bus Rapid Transit System Company. This constitutes one of the most significant broad-based black economic empowerment transactions that our country has seen in the transport sector.
The importance of the "just in time road maintenance" system in terms of which efficiency is increased and waste decreased by procurement of materials only as they are needed requires effective monitoring of the road conditions. This will be achieved by establishing the Road Asset Management System, Rams, and introducing the "Know your network" programme, which consists of regional engineers in all provinces daily monitoring road conditions including any possible overnight damage. This is so that we do not have a regional engineer who does not know the road network in his or her own region.
The Department of Transport's flagship project, "S'hamba Sonke - "Moving Together", will see the Department of Transport launching a new roads upgrade and maintenance initiative to fix and upgrade the entire secondary road network of South Africa. The programme will create new opportunities for emerging contractors and jobs across the country. In addition, 68 675 jobs, skilled and semi-skilled, will be created through this programme.
The ring-fenced conditional grant will be implemented in the following five key areas: the rehabilitation of key arterial routes in support of the rural economy through labour-intensive projects; prioritising the use of labour-absorptive construction methods; fixing potholes on our roads; creating access roads to schools and clinics; and public social infrastructure.
The S'hamba Sonke programme has been allocated R22 billion for the current MTEF cycle, with the allocation for 2011-12 being R6,4 billion. Business plans have been received from all provinces supported by all the MECs. We have agreed further with the MECs that to ensure implementation and monitoring of this programme, by June this year project management units will be in place in all provinces to effectively manage the S'hamba Sonke programme.
For the 2011-12 financial year, the allocations to provinces are as follows: KwaZulu-Natal R1,2 billion, creating 22 278 jobs; the Eastern Cape R1 billion, creating 20 000 jobs; Mpumalanga R1 billion, creating 8 346 jobs; Limpopo R934 million, creating 4 432 jobs; Gauteng R566 million, creating 3 800 jobs; the Free State R447 million, creating 5 693 jobs; the Western Cape R411 million, creating 597 jobs; the Northern Cape R308 million, creating 741 jobs; and the North West R501 million, creating 2 142 jobs. The total is R6,4 billion, creating 68 675 jobs.
The Minister will report quarterly to Treasury, while the provinces will report to the Department of Transport monthly. Some of the key projects provinces have targeted in response to the S'hamba Sonke programme framework are as follows. Regarding Mpumalanga: maintenance of the R33 Road between Stoffberg and Belfast at a cost of R24 million; and the upgrade of the 40-kilometre road project from White River to Ntsikazi at a cost of approximately R16 million.
Projects that have been highlighted in Limpopo include: household routine maintenance, engaging 27 contractors at R237 million and attending to 8 100 kilometres; fixing access roads at a cost of R60 million; and a pothole patching project on 220 kilometres of roads at a cost of R174 million.
Gauteng projects include: the reseal on the N14 from Krugersdorp to Klieveskraal at a cost of R55,8 million; the reseal of the Ben Schoeman from Pretoria to the N1 for R10 million; and the upgrade on the P126 - M1 - on 8,54 kilometres for R11 million.
With regard to the Northern Cape, there are the following projects: household road maintenance - Bak-klor-us to ...