Provincial Budgets and Expenditure Review October 2005

1
Provincial Budgets and Expenditure
ReviewOctober 2005
PUBLIC WORKS, ROADS AND TRANSPORT
2
Contents

• Overview
• Free State centrally placed
• History
• Spending capacity
• Development
• Pressures
• Traffic
• Transport

3
Overview

• Transport underpins development and is a catalyst
  for unlocking economical growth and social
  development potential.
• Transport should be geared toward eradicating
  structural and social imbalances that yielded two
  economies and under development in our country.
• It should provide access and improvement of
  mobility thus ensuring that people have access to
  social services, job creation and skills
  development and ensuring that the cost doing
  business is reduced and that the economy of the
  country is transformed.

4
Overview

• Centrality of the Free State
• Infrastructure as an enabler to the economy
• Agricultural Dominance
• Budget Pressures
• EPWP

5
(No Transcript)
6
Allocation on roads since 1990-2005
Flood Funds
Sec. 100
R40m Decrease in Grant
7
Relationship between accidents and roads condition

• The kilometers of poor and very poor roads are
  going to increase dramatically
• Because of the lack proactive maintenance, the
  cost of repairing a road will increase with
  approximately150
• The gravel road system is on verge of total
  collapse.
• A drastic increase of claims is immanent
  considering the conditions of roads.

8
Composition of the Department
9
Required new links in the Free State
10
Comparisons Free State with rest of Provinces
Free State of Total TOTAL for Provinces
Length of Road 49,116 km 14 343,942 km
Registered Vehicles 387 815 6 6 798 696
Roads Budget R322m 5 R6 353m
Budget per km road R6 555 / km R18 471 / km
of budget spent 99.3 98,9
11
Roads Maintenance
Free State of Total TOTAL for Provinces
Length of Road 49 116 km 14 343 942 km
Length maintained 28 455 km 15 193 178 km
Maintenance Expenditure R192m 7 R2 794m
Cost per km of road maintained R6 731/ km R14 465 / km
The estimated expenditure by SANRAL on capital
improvement on National roads in FS (excluding
N1 N3) is R330/vehiclekm traveled. The
budget available to be spend on provincial
roads in the Free State by the Department is
R33/vehiclekm
12
Revenue Collected
Free State of Total TOTAL for Provinces
Registered Vehicles 387 815 5.7 6 798 696
Motor vehicle licenses R150m 5.6 R2 689m

Collection Cost (Own Staff) R42m 28 ???
13
Total Revenue Collected
14
Revenue classifications
15
Vehicle License Tariffs

• Free State Tariffs are on average right in the
  middle of the 9 provinces.
• On average the 3rd most expensive for light
  vehicles
• On average 6th most expensive on trucks and
  busses.
• The Free State has to stimulate industry and
  agriculture.

16
Traffic Management
Free State of Total TOTAL for Provinces
Length of Road 49 116 km 14 343 942 km
Registered Vehicles 387 815 6 6 798 696
Traffic Expenditure R70m 10 R1 139m
Revenue Collection R43m 10 R1 139m
Cost for traffic control per km of road R2 300 / km R3 311 / km
17
Traffic Achievements

• Lowest fatalities in Arrive Alive
• Overloading control at Kroonstad, Bothaville and
  Senekal
• Traffic officials patrolling 183 km of road.
  Impossible to do every day. Appointed another 160
  officers.

18
Weigh Bridge Success
Free State of Total TOTAL for Provinces
No of Weigh Bridges 3 3 90
Vehicles Weighed 77 348 7 1 055 438
Number found Overloaded 13 517 4 303 489
Effectiveness of Scanning process needs attention
Free State 17
SA Average 29
19
Economic classification
Free State of Total TOTAL for Provinces of Total
Compensation R349 m 44 R3 584 m 28
Goods Serv R289 m 36 R3 719 m 29
Transfers R5 m 1 R1 606 m 12
Capital R149 m 19 R3 952 m 31
Non compens R443 m 56 R9 278 m 72
Non Comp Non Cap R294 m 37 R5 325 m 41
20
Budget Distribution 2005/06
21
FS PWRT BUDGET

• MTEF Period (Medium Term Expenditure Framework)

Year-1 Year 0 Year 1 Year 2 Year 3
2004/05 2005/06 2006/07 2007/08 2008/09

• Baseline

R792 m R840 m R890 m R1023 m R1094 m

• Reprioritized Baseline

R840 m R2071 m R2168 m R2319 m
22
(No Transcript)
23
(No Transcript)
24
Personnel vs. Total Expenditure
25
Second quarter expenditure and projections
26
Grant Allocation
27
Free State Own Roads Grant
28
Grants 2004/05 Roads Projects

• Completed projects
• Meqheleng access road
• 87 local construction jobs created
• 13,600 man days 3,766 female days
• Projects still continuing
• Oppermansgronde link road
• 101 local construction job opportunities
• 13,310 man days 5,434 female days

• Provincial Conditional Grant Budget (DORA Roll
  over)
• R 39,978 mil
• Utilised
• R39,978 mil
• Remainder
• R 0 mil

29
Grant 2004/05 Roads Projects

• Completed projects
• Road planning and design
• 8 Planning, design and systems related projects
• Road contracts
• 11 rehabilitation and maintenance projects
  through contractors
• Gravel Road rehabilitation
• 18 rehabilitation of gravel road projects with
  own personnel

• Provincial own conditional grant additional to
  National Grant
• R 91,207 mil
• Utilised
• R91,207 mil
• Remainder
• R 0 mil

30
Roads Projects Continue

• Roll over Flood Funds Plus Provincial Own grant
• R 25,190 mil
• Utilised
• R24,280 mil
• Remainder
• R 0,91 mil

• Completed 55 projects of between R0,15 mil and
  R0,50 mil each.
• Projects still continuing
• Road signs contractor did not supply on time.

31
Development of SMMEs
16 SMMEs trained in 2003 in Smithfield to build
bridge and kerbing
32
TRAINING
Classroom training
On site survey training
Practical training
33
Development of SMMEs
Successful SMMEs continued in 2004 in
Oppermansgronde to build streets.
34
Development of SMMEs
Successful SMMEs continued in 2004/05 in Zastron
to do surfaced road repair.
35
Task Based Contracts
36
Labor intensive alternative to traditional bridge
wing wall.
37
Budget Pressures
38
GROWTH IN BUDGET REQUEST
2 103
2 628
39
3 882
3909
31
39
Budget Pressures

• Total Budget Need R 2 071 million
• MTEF Baseline R 890 million
• IT Needs
• Roads Preventive Maintenance, Gravel Roads,
  Surfaced Roads, GG takeover, RBE expansion,
  Bridge Structures, New accesses.

40
Budget Pressures Continue

• Transport Ranking Facilities, Recapitalization ,
  Inter-modal Facilities, Training, Registration
• Traffic K53 Testing Stations, Registration
  Offices, Computer and Traffic Equipment
• EPWP Community Projects, EPWP Sector
  Co-ordination,

41
Vehicle Operating Cost vs Road Condition (98R)
Articulated Truck
Passenger Car
Good
Poor
42
Situational Analysis

• Deterioration of road network
• Budget
• Traffic Growth
• Overloading
• Backlog

43
Road Condition impact of Preventive actions
since 2001

• The percentage of poor and very poor paved roads
  has increased dramatically since 1991, when only
  25 was in a poor or very poor condition to 67
  in 2001,but decreased slightly to 63 in 2002 and
  further to 57 in 2003 and 51 in 2005.
• The decreased in was only possible due to the
  strategic intervention strategy to do preventive
  maintenance activities

44
(No Transcript)
45
(No Transcript)
46
Road Furniture
47
Gravel Road Network
48
The average damage of a truck that is 30
overloaded, is equivalent to the damage caused by
1800 passenger cars
49
Backlog
50
Summary of Service Delivery Environment
Challenges- Transport Infrastructure
The challenges can be grouped under the following
key performance areas Mobility Accessibility Su
stainability
51
Mobility
Blading of gravel roads Blading of the gravel
road network is extremely important to improve
the riding quality as well as minimising road
users cost The current level of service (34,085
km/yr )provided is far below the desired level of
135,600 km/yr Resealing of surfaced roads The
minimum km of road that need to be resealed
annually, is 526km. The current figure is less
than 60km/year. In order to address the backlog
as well as the annual need, 825km must be
resealed over the next 10 years
52
Mobility
Road signs Road signs play a significant part in
ensuring overall road safety and providing
direction. Currently 23 of the signs on paved
roads and 60 of the signs on gravel roads are in
a very poor to poor condition To address the
backlog, 18,185 signs must be replaced annually,
while only 1100 is replaced annually. Road
Markings Currently approximately 1200 km of road
markings/year while the need is 4,648km must be
repainted/year
53
Accessibility
Accessibility measures the ease at which access
is provided to communities and towns Network
Improvement (Enhanced rural mobility and
accessibility) The total backlog is R949,5
million. Only R45million was spend the last two
years. Access to communities The total backlog
is R151 million, only R25 million will be spend
54
Sustainability

• This is the ability of transportation facilities
  and services to meet travel needs of the present
  without compromising future generations
• Rebuilding of paved roads
• 253 km of road should be either rehabilitated or
  reconstructed annually. Currently less than 40km
  are rehabilitated annually
• Regravelling of gravel roads
• Currently the gravel road network is on the verge
  of collapse. The annual need is 2472km/year. Only
  60km is done annually
• Capacity improvement as well new surfaced road
  links
• Against an annual growth rate of between 4-8
  freight on our roads and 3 cars, will we have to
  double the available road space in the next 20
  years. Currently no improvements are done.

55
Doing the right thing at the right
time-Preventive maintenance
56
(No Transcript)
57
OPTIMUM RESEAL
Cost for timeously reseal R170, 000 / Km Cost
for repair and reseal R500, 000 / Km Cost for
rebuilding R3,000, 000 / Km
Cost of rehab
Cost for repair and reseal
It is sound economical practice to resurface
roads within the 10 year norm before they
deteriorate to such an extent that rehabilitation
is the only option.
Cost for reseal
58
Infrastructure realignment in order to give
effect to the Growth Development Strategy

• To ensure that we provide a transport system
  which can act as an enabler for socio economic
  development as put forward in the Growth and
  Development Strategy, it is important that
• A network that will minimise vehicle operating
  costs and environmental impact, and which will
  accommodate the growth in traffic volumes and in
  particular in heavy volumes, must be
  established
• An appropriate strategic road network for the
  Province, must be identified which will be
  developed and maintained in such a manner that it
  will support road safety, tourism and economic
  development
• Institutional transformation that support
  improved service delivery must be implemented
• Accessibility to rural communities must be
  improved
• Available funding will be targeted on the
  maintenance of the primary or most important
  gravel roads

59
Continue

• Opportunities for possible commercialised
  maintenance actions must be explored
• Preference must be given to preventive
  maintenance instead of routine maintenance
• Repair and reseal actions and the promotion of
  road safety will be concentrated on
• The principle of the expanded public-works
  programme will be applied to all road
  construction and maintenance programmes
• The viability of concentrating road freight
  movements, where possible, on specific corridors
  must be investigated.
• Freight transport movement through the Free State
  must be optimized

60
PUBLIC TRANSPORT IN THE FREE STATE
61

• LEGAL REQUIREMENTS
• RANKING FACILITIES IN THE FREE STATE
• INTERMODALISM
• AMALGAMATION OF ASSOCIATIONS
• TRAVEL PATTERNS/ MOBILITY STUDY
• RECAPITALIZATION

62
TRANSPORT MODES

• BUSES
• MINIBUS- TAXIS
• RAIL SERVICES

63
LEGAL BACKGROUND

• NLTTA (NATIONAL LAND TRANSPORT TRANSITION ACT 22,
  2000)
• BASIS FOR FORMAL TRANSPORT PLANNING
• PLTF
• RATPLANS
• OLS!
• PTPs
• ITPs
• FACILITY PLANNING
• REGULATION CONTROL
• FORMALISATION
• LAW ENFORCEMENT

64
IMPORTANCE OF PUBLIC TRANSPORT

• NATIONAL POLICY
• Promote public transport over private transport
• Achieve 80 20 ratio
• ONLY TRANSPORT AVAILABLE FOR MANY
• BUT, MOTORISTS NORMAL ATTITUDE!

65
INTEGRATED APPROACH

• INVESTIGATED MINIBUS TAXIS,
• BUSES AND RAIL SERVICES CPTRS
• INFRASTRUCTURE INFRASTRUCTURE
• RECORDS AND STRATEGIC
• PLANNING PROCESS (IRSP)
• SMALL BUS SERVICES
• METERED TAXIS

66
RANKING FACILITIES IN THE FREE STATE

• ALL TAXI BUS RANKS/TERMINI
• GPS LOCATIONS
• DETAIL OF RANKS, i.e.
• Location
• Status, formal/informal
• Surface material, types condition
• Dimensions
• Management
• Amenities, number condition
• Toilets Offices, number condition

67
RANK SURVEYS JACARANDA RANK
RANK SURVEYS RUSSELL SQUARE
68
CONDITIONS AT OUR RANKS
69
FACILITIES INTERESTING FACTS

• NUMBER OF TAXI FACILITIES PROVINCE WIDE - 121
• LEJWELEPUTSWA
• Formal 16
• Informal 10
• Off-street 24
• On-street 2
• XHARIEP
• Formal 1
• Informal 13
• Off-street 6
• On-street 7

• FEZILE DABI
• Formal 12
• Informal 9
• Off-street 19
• On-street 2
• THABO MOFUTSANYANE
• Formal 19
• Informal 15
• Off-street 14
• On-street 20

70
FACILITIES CONCLUSIONS

• FEW FORMAL RANKS
• MANY ON-STREET RANKS
• LIMITED FACILITIES AT RANKS
• MOST RANKS IN POOR CONDITIONS

71
INTERMODALISM

• NEED OF INTERGRATED APPROACH
• NEED OF ONE SERVICE CENTRE
• RESTORING THE DIGNITY OF THE COMMUTTERS
• READYING OURSELVES FOR 2010
• DEVELOPMENTS OF BFN FICKSBURG AND LADYBRAND
• E.g. BLOEMFONTEIN INTERMODAL FACILITY

72
Hoffman Bus Terminus
Railway station
Central Park Bus Terminus
Russel Square Taxi Rank
Majakathata Taxi Rank
Bastion Square Taxi Rank
Hanger Street
Sowesto Taxi Tank
Dr. Belcher Road
Harvey Road
73
Architectural Perspectives
Harvey Street - View
Infrastructure Efficiency Commuter Safety and
Convenience Stakeholder Ownership Urban
Regeneration
74
Architectural Perspectives
Hanger Street - View
Infrastructure Efficiency Commuter Safety and
Convenience Stakeholder Ownership Urban
Regeneration
75
PUBLIC TRANSPORT FACILITIES

• MEC TO DESIGNATE RANKS
• ALL PUBLIC TRANSPORT RANKS TO BELONG TO THE
  MUNICIPALITIES
• NO PRIVATE RANKS IN THE FREE STATE
• ONE RANK ONE TOWN PRINCIPLE
• NO PROLIFERATION OF TAXI ASSOCIATIONS
• ONE TOWN ONE TAXI ASSOCIATION PRINCIPLE
• MUNICIPALITIES TO SUPPORT THESE PRINCIPLES

76
PUBLIC TRANPORT ROUTES IN THE FREE STATE
INTERESTING FACTS

• NUMBER OF SEPARATE ROUTES IN THE PROVINCE 968
• ROUTE DISTANCES
• LEJWELEPUTSWA
• 1km 2015km
• XHARIEP
• 26km 323km

• FEZILE DABI
• 1km-346km
• THABO MOFUTSANYANE
• 3km 787km

77
ROUTES CONCLUSIONS

• LIMITED OR NO SERVICES IN CERTAIN AREAS e.g.
  Xhariep
• LONG DISTANCE SERVICES ONLY FROM CERTAIN MAJOR
• CENTRES
• INTERPROVINCIAL TRIPS BETWEEN SMALL TOWNS
• INCLUDE MANY STOPS CAN TAKE DAYS
• NO INFORMATION AVAILABLE FOR CUSTOMERS

78
SERVICE CAPACITY ROUTE UTILISATION

• NUMBER OF TRIPS, VEHICLE CAPACITY, PASSENGERS,
  TRAVEL TIME

79
WAITING TIMES INTERESTING FACTS

• LEJWELEPUTSWA
• Outside taxi 0-10min
• Inside taxi 0-371min
• Fares R2-R130
• XHARIEP
• Outside taxi 3-120min
• Inside taxi 72-193min
• Fares R20-R25

• FEZILE DABI
• Outside taxi 0-10min
• Inside taxi 0-240min
• Fares R2-R45
• THABO MOFUTSANYANE
• Outside taxi 0-8min
• Inside taxi 0-435min
• Fares R2-R110

80
WAITING TIMES CONCLUSIONS

• NORMALLY ALWAYS TAXIS AVAILABLE
• LIMITED WAITING FOR TAXIS
• LONG WAIT IN TAXIS BEFORE DEPARTING
• UP TO 7 HOURS
• DEFINITE IMPLICATIONS FOR RECAP
• RECAP MUST BE BASED ON SUPPLY DEMAND

81
Readiness with regard to Recapitalization
Requirement Progress
Compilation of PLTF Was completed during Nov. 2004
Compilation of CPTR CPTRs for different districts were completed during 2003
Compilation of Public Transport Plans PTPs, OLS and Rat. Plans were completed
Compilation of ITP ITPs for all districts will be completed by end Nov. 2005
Registration of associations All associations provisionally registered. Will be fully registered once all permits converted
82
Readiness with regard to Recapitalization
Requirement Progress
Permit conversion 13,938 permits on our system 8,122 applications were received for conversion 5,144 permits have been converted to operating licenses First operating licenses were issued 13/10/05
83
Bus Transport

• Two subsidised services in the Free State
• Interstate Bus Lines-Operate in the Manguang
  area
• Maluti Bus Services-operating in Thabo
  Mafutsanyane

84
Interstate Bus services

• Interstate Bus Lines (IBL) operates four (4)
  tendered contracts between Thaba Nchu,
  Botshabelo, Bloemfontein and Mangaung
• Subsidy 2004/05R18,396,684
• Contract expired in November 2003
• Contract was renewed on month to month basis
• Negotiations are continuing with operator for the
  inclusion of taxis, small busses PDIs

85
Malulti Bus Services

• Maluti Bus Services operates 2 tendered
  contract services
• The Maluti Bus Services contract is divided into
  two contract areas, I.e. line haul and
  internal (local) services. The internal service
  cover areas within Qwa Qwa
• The external service operate from Qwa Qwa to
  Bethlehem and Harrismith years.
• Bus Subsidy 2004/05R18,764,296
• MBS contract expired 31st August 2005
• Contract renewed for two years, under the
  following conditions
• 50/50 shareholding management of company
• Shares to be immediately transferred to
  appropriate intended beneficiaries
• Implemenetation of Electronic ticketing system

86

• 
  RAIL STUDY
• FEASIBILITY RAIL STUDY CONDUCTED BETWEEN
  BLOEMFONTEIN AND THABA NCHU
• IF FEASIBLE, THE STUDY WILL BE EXTENDED TO
  INCLUDE FREIGHT AND COMMUTER RAIL TRANSPORT
  BETWEEN LESOTHO, BLOEMFONTEIN AND KIMBERLEY
• THE PRELIMINARY STUDY WAS COMPLETED BY THE END
  OF AUGUST 2005

87
THE FINAL PRODUCT

• AN EFFECTIVE PUBLIC TRANSPORT SYSTEM IN THE FREE
  STATE

88
Public Works, Roads and Transport
The Free State Thanks You