NLTTA

1
NLTTA
2
Situational Analysis
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Problems with the NLTTA
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Appropriate Institutional Bodies

• Immediate problem - Clause 10(13) provides for an
  assignment of functions to the TA from Provinces
  without the need for agreement. TA, being a
  separate juristic body does not enjoy the
  constitutional protection that a sphere of
  government has legal opinion.
• Broader problem sustainable funding source.
• eThekwini subsidy bill is approx R450
  million/annum.
• Total cost of TA over R700million/annum
• Deficit or currently unfunded R34.5
  million/annum increased to R80m

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Recommendation

• Amend Clause 10(13) to include the words by
  agreement
• Lobby for appropriate financial legislation as
  well as NLTA to allow TA to raise its own
  funding. In eThekwini eg
• To fund subsidies 16c/l fuel 208 licence fee
• To fund deficit costs 1.2c/l fuel 16 licence
  fee
• Funding to be tied up through founding agreement.

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Planning

• Cost of statutory plans eThekwini R12m/5year
  cycle.
• Frequency of plans is problematic eg CPTR
  resurvey before finishing previous years data
  capture.

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Recommendation

• Provide funding
• Change frequency

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Regulated Competition Appropriate modes

• Durban Transport issue
• Funding humps must be provided for or PPPs and
  required guarantees must be pursued.
• Taxi recap

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Recommendation

• Confirm National Policy galvanise political
  will.
• Provide for funding humps or a framework for
  PPPs and guarantees.

10
Enforcement

• Not addressed adequately in NLTTA.
• Critical Success Factor for an integrated system.

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Recommendation

• Amend RTMC AARTO Acts to provide for Transport
  Law Enforcement.

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Functions

• Mandatory
• prepare transport plans
• develop land transport policy
• Financial planning for land transport
• Manage movement of people and goods
• encourage, promote and facilitate public
  consultation
• Prepare tenders, evaluate and award tenders for
  PT services
• those assigned by Provincial legislation

RAIL EXCLUDED!
13
Functions cont.

• Other functions (optional)
• promote optimum modes
• Integration of modes
• fare levels
• Fare systems and integrated ticketing
• Information systems
• regulation
• enforcement
• Security
• etc

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eThekwini TA functions

• Mandatory
• prepare transport plans
• develop land transport policy
• Financial planning for land transport
• Manage movement of people and goods
• encourage, promote and facilitate public
  consultation
• Prepare tenders, evaluate and award tenders for
  PT services (Subsidy function)

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Key Issue
TAs
Implementation
Great Expectations!
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Danger
Created another institutional structure with no
real resources and mechanisms to IMPLEMENT
Why do we say that?
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However
Vision Objectives
Regulate mini-bus taxi industry?
TAs
Policy
Implementation
NAT /PROV
Legislation
Funding
Recap?
NATIONAL
NLTA? Funding Framework
Strategies
Rail funding?
NATIONAL
NATIONAL
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The issue of devolution
PROS
CONS
In line with National Policy International Best
Practice Consolidation of Transport
functions More responsive to local
passenger needs Intermodalsim
(info, tickets, planning etc)

• Fragmentation of local planning function
  (Land-use / transport integration)

BENEFIT gt DISBENEFIT
If full devolution of bus and rail does not take
place, then lost benefit!
Manage through IDP process, Liaison structures,
joint project teams and Governing Body being EXCO
Councilors.
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TAXIS License rights in perpetuity MUST
compensate, relocate or move into bus industry
How compensate?
- Business some of asset value not
good for PT ops - need to know
income, expenditure, profit etc- no records!
- Negotiate with each single operator all
slightly different
How relocate?
- Large number of operators - Existing
operators in all other areas - violence
Move into Bus industry opportunity, but is
limited!
Re-cap is supposed to help, but where is it??
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RAIL Objective feed people to rail
First need to upgrade VERY POOR rolling stock and
critical infrastructure
- Cost in excess of R 1 bill in eThekwini -
Not under local authority control SARCC /
NDOT - SARCC priority Cape Town and Guateng -
Devolution still far away
WHERE DOES THAT LEAVE ETA
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2B or not 2B a TA?
It seems there is an upfront choice to be made
regarding the organisation

• Vertical integration of transport functions
• Rail
• Bus
• Taxi

Horizontal integration of planning functions at
local level
OR
Agencies to deal with rail, bus and minibus taxi
Integrate planning via some arrangements
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Functions

• Mandatory
• prepare transport plans
• develop land transport policy
• Financial planning for land transport
• Manage movement of people and goods
• encourage, promote and facilitate public
  consultation
• Prepare tenders, evaluate and award tenders for
  PT services
• those assigned by Provincial legislation

RAIL EXCLUDED!
23
Functions cont.

• Other functions (optional)
• promote optimum modes
• Integration of modes
• fare levels
• Fare systems and integrated ticketing
• Information systems
• regulation
• enforcement
• Security
• etc

24
eThekwini TA functions

• Mandatory
• prepare transport plans
• develop land transport policy
• Financial planning for land transport
• Manage movement of people and goods
• encourage, promote and facilitate public
  consultation
• Prepare tenders, evaluate and award tenders for
  PT services (Subsidy function)

25
Some lessons cont.
ETA dependent on National and Provincial
Government

• Waiting for
• Proper National Funding Framework and Strategy
  MONEY-Capital/Operating and PT subsidy
• Rail investment
• Re-cap are we merely replacing old with new
• Provincial legislation
• Buying out Operating licences?
• How is that Sanral is able to be so successful
  Funding?

PT subsidy Special users etc
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Parting Shots

• Cooperative governance on the admin side is at
  an all time low.
• Capacity seriously lacking.
• Policy and strategy is sound but the
  institutional structure to support the policy and
  strategy is found wanting.
• Criminal to have such wonderful policy and
  legislation but such a lack of commitment and
  ability to follow through.
• Reality is it is expensive to provide efficient
  PT services. Benefits are enormous