Hon Chairperson, hon members, Deputy Minister of Transport, chairperson of the portfolio committee, members of the transport family, ladies and gentlemen, transport is a catalyst for economic growth and an engine for job creation in South Africa. Principal modes of transport for people in South Africa are rail and road, with a few people using air transport. Even fewer use the Indian and Atlantic Oceans that surround us and which effectively classify us as a maritime nation.
The provision of reliable, sustainable and safe transportation of people and goods from place to place is critical to the transformation of our country. Typically, an effective, safe public transport system will reduce transport costs, create jobs and income-generating opportunities, and increase the value of real estate. Yes, an effective public transport system will increase the quality of life for all our communities.
One of the questions facing our transport sector in South Africa is that of limited funding for transport development and maintenance. It is by no means a South African problem only. This was indicated by US President Barack Obama in his state of the union address earlier this year when he called for greater private sector investment in the provision of road infrastructure.
Our shared view is that we must develop the methodologies which encourage private sector participation and investment in the provision of key infrastructure. Alternative funding models also need to be developed for consideration, just as alternative construction materials and construction methodologies need to be researched to enhance value for money.
In this regard, the Passenger Rail Agency of South Africa, Prasa, held a market engagement conference on 5 April 2011, where we presented the new rolling stock programme and the business opportunities emanating from that exercise to the numerous participants. Following this, on 13 and 14 June this year the Department of Transport will host the International Investment Conference in Cape Town under the theme "Creating winning partnerships through investment". This will provide an opportunity for dialogue between investors and the department in the pursuit of alternative funding streams.
As I deliver my address this afternoon, over 600 buses are making their daily trip of 160 km from Tshwane to KwaNdebele. In the morning, they will make the return trip back along the Moloto Corridor. They carry commuters who often leave home at 3:00 am and arrive back at 9:00 pm. Government subsidises these commuters to the value of R412 million per annum, which translates into approximately R7 000 per commuter per month. Of interest is that many of these commuters earn less than the subsidised amount per month.
Having noted these challenges, the department is currently investigating an alternative and more cost-effective transport network for the Moloto Corridor, which is safe, which cuts down travelling time, and which will effectively address commuter needs.
Link 1 of the Gautrain Rapid Rail network between Sandton and the O R Tambo International Airport was opened in June 2010. Link 2, from Johannesburg to Pretoria, will be opened this month. The completion of the network ushers in a new era in public transportation, matching world standards in rapid rail transport. Travelling at 180 km/h and taking 38 minutes between Johannesburg and Pretoria, it will set a benchmark for future rail developments in South Africa.
The Gauteng Freeway Improvement Project, e-tolling and the future tolling of roads have been in the media recently and on many discussion platforms on radio and social networks around the country. However, for the debate and discussion to be constructive, it is important that the aspects of this are viewed within the appropriate context.
In 2007 Cabinet approved the project, after which the SA National Roads Agency Ltd, Sanral, was required to follow with a further proposal, that of Intent to Toll the roads which was part of the project. Sanral has been allowed to identify potential investors to raise the funds to implement the state-of-the-art system without resorting to the national fiscus for such a large budget. Sanral did this, and implemented Phase One. Funding for the project implementation was obtained through government bonds and, to repay this debt, the Open Road Toll, or e-tolling system, was introduced.
Noting the consultative process implemented since 2007, and the various decision-makers and role-players in this project currently, numerous concerns have been raised. For those hon members who have travelled on the part of the Gauteng Freeway Improvement Programme that has been completed, we must agree that we now have a state-of-the-art road network system. Notwithstanding all this, the need for further consultation to address the concerns of the public was noted.
In March I suspended the implementation of the e-tolling system and established a task team to engage all stakeholders further, in pursuit of a conducive position, on which there had been consultation, with regard to the e-tolling of the Gauteng Freeway Improvement Programme. The steering committee, chaired by the director-general, is embarking on extensive public consultation to review the concerns raised. A comprehensive report on the work of the steering committee will be submitted in due course, after which we will have a review.
Transformation of the public transport sector is a fundamental objective we are pursuing. Following numerous meetings and interventions since 2009, it is with great pleasure that I can inform the House today of our progress with regard to the Rea Vaya Bus Rapid Transit System. Earlier this year the taxi industry in Johannesburg became a 66% shareholder in the Rea Vaya Bus Rapid Transit System. The implementation and roll-out of the Rea Vaya Bus Rapid Transit System in the four identified cities is progressing well.
We also wish to take this opportunity to recognise the partnership we have established with the taxi industry over the years. We were part of the establishment of the SA National Taxi Council, Santaco, which was to position the industry for growth into the rest of the transport sector. Santaco turns 10 years old in September this year. We wish the organisation well in this, its 10th year of productive existence. We look forward to decades and decades of collaboration with Santaco towards the provision of better public transport for all.
It is generally acknowledged that over the years the underinvestment in our road infrastructure, together with the age of our roads, has resulted in the degradation of our road network. More than 75% of our current road network is 20 years old or older. Based on a road design life span of 20 years and the various report indicators, 40% of the provincial road network has reached crisis point, due to the limited maintenance that has been done.
After noting the state of our roads as highlighted by various study reports, we launched the S'hamba Sonke Programme in Durban on 18 April this year. This programme will see the Department of Transport launching a new road upgrade and maintenance initiative to fix and upgrade the entire secondary road network of South Africa. The programme will create 68 675 new jobs for emerging contractors and jobs across the country.
The ring-fenced conditional grant will be implemented in the following five key areas: rehabilitating key arterial routes in support of the rural economy through labour-intensive projects; prioritising the use of labour- absorptive construction methods; eliminating potholes in our roads; creating access roads to schools and clinics and public social infrastructure; and establishing the Road Asset Management Systems, RAMS, and introducing the Know Your Network Programme. This programme consists of regional engineers in all the provinces monitoring road conditions, including any possible overnight damage, on a daily basis.
The S'hamba Sonke Programme has been allocated R22 billion for the current Medium-Term Expenditure Framework cycle, with the allocation for 2011-12 being R6,4 billion. Business plans supported by all the MECs have been received from all provinces.
For the 2011-12 financial year the allocations to provinces are as follows: KwaZulu-Natal, R1,2 billion; the Eastern Cape, R1 billion; Mpumalanga, R1 billion; Limpopo, R934 million; Gauteng, R566 million; the Free State, R447 million; the Western Cape, R411 million; the Northern Cape, R308 million; and North West, R501 million. All provinces will submit a monthly report, and we in turn will report to Treasury every three months.
Our passenger rail system has come under serious focus and public scrutiny in the recent past due to two train collisions, in Pretoria and Soweto. This public concern about the safety of the rail system is justified, and we need to assure the public, through our actions, that we will be able to deliver safe and reliable services moving forward. These systemic failures are primarily due to a combination of old technology, decades of underinvestment, deferred and poor maintenance, and the loss of critical skills. The international norm is that a train will fail every 822 days, while it stands at an average of every 20 days in our country. This tells its own story and requires our urgent intervention and long-term solutions.
We have a bold plan for the railways. Prasa's strategy over the next three years is informed by the demand for a quality rail service, the current performance of the system, and Prasa's capital investment.
On 11 May 2011 South Africa participated in the launch of the United Nations Decade of Action for Road Safety 2011-2020. We seek to halve road deaths and end the carnage on our roads by 2015. Road deaths affect us all. Worldwide, 1,3 million people are killed annually. Chair, 14 000 people are killed and more than 50 000 are injured annually in South Africa.
Every member of society, especially those who have lost their loved ones in road accidents, will become the natural driving force in this programme. Worldwide, as in South Africa, the Decade of Action commits us to developing and enforcing legislation in regard to key risk factors, like effective managing and monitoring of speed limits, eliminating drinking and driving, and increasing the use of seatbelts.
All provinces, district municipalities and local municipalities will report monthly on road accidents, indicating the causal factors and the plans to address them. All provinces and districts will report on the implementation of the National Rolling Enforcement Plan. It was agreed by all that at least one million drivers would be stopped per month, 250 000 drivers would be stopped every week, and 45 000 motorists would be stopped each day. Where we are not doing it, we do have more than 17 000 local, provincial, and national officers, and something must be done so that the business-as- usual and lackadaisical approach to road safety comes to an end.
These targets will ensure that, within a period of six months, at least 60% of all motorists will have been checked for compliance with road traffic regulations. Also, the first National Traffic Intervention Unit is being deployed in high accident areas and hazardous locations.
With regard to traffic management and according to our Constitution, road safety and traffic management are national, provincial and local government competencies. The shared responsibility creates challenges relating to co- ordination, and results in a lack of uniformity in our law enforcement efforts. It was with this in mind that the Road Traffic Management Corporation Act was passed in 1999. The Act established a legal entity chaired by the Minister of Transport, with provinces and municipalities as shareholders. Putting the Road Traffic Management Corporation in order has been one of the urgent tasks facing the transport sector, and I am happy to say that we are succeeding in this.
With regard to maritime transport, we currently handle 4 million tons of cargo. Our maritime agency has identified that we require a total of 36 000 seafarers for deployment at sea. Currently we have 1 800.
One of the key legacies of the 2010 Fifa World Cup in regard to aviation was an investment of R17 billion in airport infrastructure. We are now expected to start the repayment of this investment. The review and improvement of the tariff determination framework will continue so as to ensure effective service delivery within the aviation sector. Airport infrastructure in the provinces will be supported, with the objective of ensuring the provision of adequate and effective infrastructure to promote air transportation of both passengers and goods. Current bilateral agreements that seek to increase tourism will be reviewed to ensure that the intervention plans being indicated will effectively achieve this.
Noting the importance of the transport sector projects, my department did an organisational review to ensure that we could effectively deliver on our mandate. The Department of Transport's key focus areas are improving our road network, public transport, investment in rail infrastructure and services, road safety, and maritime and air transport projects. To ensure that the department's mandate, as indicated, is achieved, an organisational review of the structure was done.
The approved new organisational structure reflects a departmental structure based on modes that will elevate the functions of the department from being focused on policy development, to being the co-ordinator of implementation of the transport sector programmes. This organisational structure will further ensure effective monitoring and evaluation of programme outcomes, and provide single-point accountability.
I wish to thank the Deputy Minister, Mr Jeremy Cronin, for his ongoing partnership and comradeship as we transform the transport sector. I thank the Director-General, Mr George Mahlalela, and his team for their hard work and dedication. Furthermore, I would like to thank all the agencies, especially the chairpersons and CEOs, for their dedication to the critical role they play in the delivery and implementation of our agenda. I thank the Transport Portfolio Committee Chairperson, Ms Ruth Bhengu, and the committee for the constructive way in which they engage with the department and for the diligent manner in which they conduct oversight over its programmes and projects.
Last but not least, a warm and sincere thank you goes to the transport family for their ongoing, tireless efforts at ensuring that we keep South Africa on the move, contributing to making a better life for all. Together we can do more to move people and goods for economic growth and the development of sustainable communities, at the same time transforming the transport sector.
I hereby request the House to approve the Department of Transport's budget of R36 billion for 2011-12. I thank you. [Applause.]