PRESENTATION BY G M NEGOTA (CHAIRMAN: C-BRTA) 2002

PRESENTATION BY G M NEGOTA (CHAIRMAN: C-BRTA) 2002

PRESENTATION BY G M NEGOTA (CHAIRMAN: C-BRTA) 2002 1 CONSTITUTION OF RSA Article 104, Schedule 6 Legislative Powers regarding Transport National Government Provincial Government International Road Transport Regulatory Framework * Domestic Legislation *

Multilateral Agreements * Bilateral Agreements 2 Cross-Border Road Transport Agency is a statutory juristic person established in terms of section 4 of the Cross-Border Road Transport Act no 4 of 1998. It started its operations on the 1 April 1998. MAIN OBJECTIVE The Agencys main objective is to facilitate crossborder road transport into the Southern African region. To fulfill their regulatory function, they issue permits for market entry and undertake law enforcement. 3 INSTITUTIONAL/CONSULTATIVE FRAMEWORK MINISTER

DG(DOT) NTC AGENCY BOARD REGULATORY COMMITTEE CEO & STAFF STAKEHOLDER CONSULTATIVE FORUM SUCH CORRIDOR PLANNING COMMITTEES AND JOINT ROUTE MANAGEMENT GROUPS 4 PRINCIPLES UNDERLYING C-BRTA 5 ADVICE TO MINISTER FOR EXAMPLE:

HOW TO LIBERALISE MARKET ACCESS HOW TO REDUCE OPERATIONAL CONSTRAINTS SUPPORT IN (RE)NEGOTIATING AGREEMENTS & EXECUTIVE ARRANGEMENTS REGULATES ACCESS TO MARKET BOARD FACILITATES Cooperative & consultative relationships Information TRANSPORT LAW ENFORCEMENT Training 6 SOURCES

PERMIT FEES LAW ENFORCEMENT DONATIONS SALE OF INFORMATION THE MAIN OBJECTIVE TO SET UP AN AGENCY THAT IS AT ARMS LENGTH AND WHICH IS FINANCIALLY SELF-SUFFICIENT HAS BEEN ACHIEVED. HOWEVER THE AGENCY IS INVESTIGATING NEW SOURCES OF INCOME. 7 Act 4 of 1998 accountability.

provides for financial Internal financ ial c ontrols CEO to report to Board on an ongoing basis. External Financ ial Controls Annual audits by registered auditor in terms of Public Accountants and Auditors act. CBRTA financial reports to Minister to be tabled in Parliament. 8 REGULATION OF CROSS-BORDER ROAD TRANSPORT IS DONE IN SUPPORT OF NOT ONLY THE RSAS ECONOMY BUT ALSO THAT OF THE REGION. Permit fees can, therefore, not be raised indiscriminately to support the regulatory function in total without taking into account the effect on the already over inflated transport costs in the region.

The income derived from permit fees also depends on many factors totally out of the agencys control. MAIN EXTERNALITIES THAT HAD AN IMPACT ON THE CROSSBORDER ACTIVITIES FOR THE PERIOD IN QUESTION: Stagnation of economies in other SADC countries, resulting in less purchase power, and therefore less need for transport. Fuel shortages and natural disasters such as the droughts experienced in the last season make their mark on the income of the agency. High unemployment rate brought less passenger movement Political instability in other countries with whom we have agreements. The closing down of mines and certain industries which are no longer economically viable and the laying off of large numbers of workers had a major impact on the need for passenger services to other countries (migrant mine workers). Positive economic growth in certain neighbouring countries such as Mozambique brought an increase in movement of goods between South Africa and Mozambique. 9 HEAD COUNT F0R THE YEAR 2000 65%

29% 4% BLACK ASIAN COLOURED WHITE 2% 10 HEAD COUNT FOR JUNE 2001 53% 47% ABC WHITE 11

GENDER EQUITY FOR THE YEAR 2000 37% 63% MALE FEMALE 12 GENDER EQUALITY FOR 2001 35% 65% MALE FEMALE 13 Total number of Employees 135 Ex-NDoT Staff

63 New Appointees 72 14 DOMESTIC LEGISLATION Cross-Border Road Transport Act, no 4 of 1998 provided for the establishment of C-BRTA Multilateral Agreements SADC Protocol on Transport, Communications and Meteorology; SACU Memorandum of Understanding on Road Transport (MoU). Bilateral Agreements

Bilateral Agreements concluded between South Africa and: Malawi Zambia Zimbabwe Mozambique SUPPORT REGIONAL TRADE BY: Facilitation of Cross-Border Road Transport A strategic private-public sector relationship. A strategic alliance between Transport Authorities. Capacity building of private and public sector. Management of information. 15

SADC PROTOCOL ON TRANSPORT, COMMUNICATION AND METEOROLOGY C-BRTA IS ACTIVELY INVOLVED IN PROTOCOL IMPLEMENTATION IN THE ROAD TRANSPORT SECTOR PRIMARY GOALS * Integration of regional transport, communications and meteorology networks * I.r.o. Elimination or reduction of hindrances and impediments movements of persons, goods and services. * Development, preservation and improvement of Transport, communications and meteorology infrastructure * other

Optimal utilization of public and private financial, human and resources * Effective allocation of existing resources * service Regional and global competitiveness of the Communitys providers * Co-operative policy development * private Strategic partnership between government and regional sector *

Regional development fostered by strategic partnership between international co-operatingpartners and regional stakeholders * Customer driven service provision * Improved diversity of services * Provision of services on a competitive basis * Informed decision-making * Focused investment in joint human resource development 16 and

programmes, information management, research technology transfer PRIMARY GOALS * of SADC Regulate the carriage of goods and conveyance passengers by road within the territories of states; * Endeavour to achieve an equal distribution of traffic among territories of member states; * Achieve an equal distribution of permits; *

Achieve and maintain an equitable nondiscriminatory infrastructure cost recovery system. 17 SOUTH AFRICA SWAZILAN D BOTSWANA NAMIBIA LESOTHO 18 MULTILATERAL AGREEMENT BETWEEN RSA, BOSTWANA, LESOTHO, NAMIBIA AND SWAZILAND BOTSWANA The movement by road with regard to the carriage of freight will increase due to the introduction of the

Transkalari-Corridor which will allow freight to transit through Botswana to Namibia. A pilot project on the customs procedure is underway and is intended to be carried out for the next three months. The taxi passenger industry took up a substantial 60% of the market movement, which includes labour migrant worker transport. Tourism movement also takes a portion of the market. SWAZILAND The biggest market portion is the conveyance of freight. Passenger movement comprises of hawkers and migrant mineworkers. Tourism is also active between the countries. LESOTHO Freight conveyance once again is the largest share of the market. 19 There are prospects that passenger conveyance will increase in future due to the fact that negotiations on implementation of the agreement is underway and Lesotho is currently developing cross border ranking facilities which is intended to be in operation by June 2002

NAMIBIA Very strong market shares in freight conveyance comprising of mainly livestock and farming products. The freight conveyance to Namibia has seen a swing to the Trans-Kalahari Corridor through Botswana due to the cost effectiveness of using the corridor. 20 STATI STI CS ON THE MOVEMENT OF VEHI CLES TO THE SOUTHERN AFRI CAN CUSTOMS UNI ON STATES [MULTI LATERAL AGREEMENT] BOTSWANA SWAZILAND LESOTHO NAMIBIA Pass Goods

Pass 694 11 565 745 Goods Pass Goods Pass Goods 9140 714 243 7955 5923 TOTAL of MULTILATERAL PERMITS ISSUED: PASS: 1820 GOODS: 30724

21 Bilateral road transport agreements that are fully operational 22 HIGHLIGHTS OF PAST YEAR: FACILITATION ZIMBABWE During election period major freight operation decreased. Financial crisis impacted on the buying power and this resulted in the decrease in passenger service(taxi and bus) Public and Private forums are in operation on a satisfactory basis MOZAMBIQUE Long stamps for operators and passengers passing the border on regular basis, this process allows quicker movement and less congestion at border posts. Public and Private forums are in operation on regular basis. Use of inter-links now allowed. Maputo Corridor has been upgraded. ZAMBIA Agreement made between SARS, C-BRTA and Ministry of Transport, Zambia to allow SA operators to register with SARS for accreditation scheme

Passenger movement between SA and Zambia is developing. MALAWI Both passenger and goods transportation is very slow in comparison to other SADC countries. 23 STATISTICS O F PERMITS ISSUED ACCO RDING TO BILATERAL AGREEMENTS ZAMBIA M ALAWI MOZAMBIQUE ZIMBABWE Pass Goods Pass Goods Pass Goods Pass Goods

279 6968 5046 5452 169 1757 2750 921 TOTAL OF PERMITS ISSUED TO BILATERAL COUNTRIES: PASS: 2 747 GOODS: 11 397 TOTAL TOURIST PERMITS TO ALL COUNTRIES: 2 339 TOTAL CABOTAGE PERMITS TO ALL COUNTRIES: 454

24 There are certain constraints imposed by Border Road Transport which makes it difficult execute its mandate. obstacles and/or the current CrossAct No 4 of 1998 for the Agency to Currently the C-BRTA and National Department of Transport are in the process of reviewing the legislation. Legislative workshop took place with all role players such as government agencies and provinces to discuss amendments to the Cross-Border Road Transport Act. The process of amending the Act is currently taking place. 25

INITIATIVES FOR THE EXECUTION OF THE TRANSPORT POLICY 26 ? Road Transport Related? TRANSPORT INFORMATION DESK PROVIDES INFORMATION PERTAINING TO: Permit requirements. Vehicle standards. Custom & excise requirements. Visa requirements. Status of infrastructure. Border post control operating hours and contact persons. Current road transport developments in Southern African countries. 27 Multi- and Bilateral Road Transport

Agreements Transport authorities. Infrastructure authorities. Local and Provincial transport authorities. Transport inspectors. Traffic policing authorities. Customs & Excise authorities. Immigration authorities. Trade & industry authorities. Border post authorities and officials. Freight forwarders and clearing agents. Financial- and insurance institutions. All modal transport operators (Bus/Taxi/Freight/Rail/Tourism) 28 Approximately 15% of taxi operators have upgraded to larger 20-30 seating capacity vehicles. 29 *

See headcount of the Agency * 265 Permits issued to SMMEs * Communication from Regulatory Committee is done in any language * Recognition award for the best, well- managed taxi association of the year * Pilot project such as joint venture between the big and small operators under the auspices of the Agency 30

* Seek new opportunities to sustain the Agency - Mentoring program for SMMEs Overloading unit to be established in the Law Enforcement division to control overloading by means of a permit condition. 31 * Through effective Law Enforcement the pirate operations were decreased and as a result, legal permit applications

increased. * The Cross-Border taxi industry was formalised. * The safety of passengers was ensured through the introduction of passenger liability insurance. * Stakeholder participating forums are fully operational. * Customer service was improved by among others the introduction of permit application through Website.

* Compliance with Equity Plan by increasing 32 * To transform the bus and freight industries to be more representative of the demography of South Africa. Two workshops took place with the bus and freight industrys stakeholders. Smaller committees were formed to discuss inter alia: * Policy requirements *

Access to finance * Joint ventures * Transfer of skills, and * Training 33 The C-BRTA and co-operating partners, the European Union and German Agency for Technical Co-operation and development are addressing the crisis in a very robust and

interactive way in the industry. 1. 2. Programmes instituted at five border posts: * for Creating institutional arrangement effectiveness * Aligning policies ie. SADC, CrossBorder stakeholders * Developing programs on preventing, care and support * Researching & baseline of data *

Developing monitoring & evaluation mechanisms * Integrating stakeholder 34 * to To make a meaningful contribution curb the HIV/AIDS pandemic * To complete the transformation process in the Agency * To contribute to the overload control through RESTRICTING OPERATORS to

pay-loads prescribed by legislation, permit conditions and on-going effective law enforcement. * To institute a project on route saturation to provide realtime information to the Board * To UPGRADE all bilateral road transport agreement to a single SADC multilateral agreement 35 Actual 2000/1 8 Months Budget Actual

20002/3 2001/2 R000 R000 R000 Revenue 24 059 16 540 28 524 Operating Expenditure 22 909 16 693 27 098 Net

Income/Loss 1 150 (153) 1 462 36 * Revenue is not comparable with prior year as it was only an eight month period, but it is anticipated that it will increase by 19% compared with the 2001 financial year * Twenty two (22) inspectors were appointed during the current year which will result in an increase in

revenue due to more permits being purchased, or as a result of the law enforcement process * Operating costs increase by 18% compared with the 2001 year as a result of appointing the inspectors. This is however compensated by the increase in revenue. 37

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