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PRESENTATION TO THE
PORTFOLIO COMMITTEE ON
TRANSPORT
Strategic Plan 2015/16 – 2019/20
Annual Performance Plan 2014/15
and 2015/16 – 2017/1814 April 2015
#1700170
2
MANDATE
• Responsible for proclaimed national road network
• Toll and Non-Toll network
• Maintain, upgrade, operate, rehabilitate and fund national roads
• Levy tolls to service toll roads
• Advise the Minister on road related matters
• Create public value
3
South African Road Network - 2014
Un-Proclaimed Roads = Public roads not formally gazetted by any Authority
Authority Paved Gravel Total
SANRAL 21,403 0 21,403
Provinces - 9 47,348 226,273 273,621
Metros - 8 51,682 14,461 66,143
Municipalities 37,691 219,223 256,914
Total 158,124 459,957 618,081
Un-Proclaimed (Estimate) 131,919 131,919
Estimated Total 158,124 591,876 750,000
4
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016
Kilo
me
tre
(C
en
tre
lin
e)
Year
Road Network Length
Future Incorporation
BOT Toll Roads
Agency Toll Roads
Non-Toll Roads
NATIONAL ROAD NETWORK GROWTH (km)
Description Non Toll Agency Toll
BOT Total
Dual
Carriageway
610 520 443 1 573
4-Lane
Undivided
11 299 240 550
2-Lane
Single
17 662 1013 605 19 280
Total 18 283 1 832 1 288 21 403
% of SANRAL Network 85% 9% 6%
NATIONAL ROAD NETWORK (km)
Total RSA Road Network Estimated to be 750,000 km
Pavement Age
Please Note: 75% of Network Older than Original 20 Year Design Life
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Na
tio
na
l R
oa
d N
etw
ork
Le
ng
th (
Ca
rria
ge
wa
y k
m)
Year
Pavement Age Trend
>25 yrs 21-25 yrs 16-20 yrs 11-15 yrs 6-10 yrs 0-5 yrs
0
20
40
60
80
100
2008 2013 2018 2023 2028
Year
Ro
ad
Co
nd
itio
nWhat Is The Price We Pay – Government
Repair Cost = X / km
Good
Fair
Poor
Very Poor
3-5 Years
Repair Cost = 6X / km
5-8 Years
Repair Cost = 18X / km
(Ratio 1:6)
(Ratio 1:18)
Please Note: Typical Costs for 11.4m Wide Road in Flat Terrain
What Is The Price We Pay – Road User
Please Note:
Costs exclude
fuel, travel time,
cargo damage,
etc. components
0
0.5
1
1.5
2
2.5
1 2 3 4 5
Ve
hic
le a
dd
itio
nal
re
pai
r an
d m
ain
ten
ance
co
sts
[R/k
m]
Road Roughness [m/km]
6th Logistics Survey -2009
SANRAL Toll Roads
SANRAL Budget Need vs Allocation
R 0
R 5 000 000
R 10 000 000
R 15 000 000
R 20 000 000
R 25 000 000
R 30 000 000
2014/15 - Need 2014/15 -Allocation
2015/16 - Need 2015/16 -Allocation
2016/17 - Need 2016/17 -Allocation
2017/18 - Need
Ra
nd
s (M
illio
n)
Year
MTEF Basic + Strengthening + Expansion Requirement vs Allocation
Cost Centres Routine Maintenance Periodic Maintenance
Strengthening Strengthening Backlog Expansion
0
10
20
30
40
50
60
70
80
90
100
20
14
20
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32N
on
-To
ll N
ati
on
al
Ro
ad
Ne
two
rk C
on
dit
ion
(%
)
Year
Forcasted Non-Toll National Road Network ConditonR12bn/year Fiscus Funding for 18,283 km - NO New Toll Roads
Very Good
Good
Fair
Poor
Very Poor
Note:
The implication of No New Toll Roads and no additional budget (R11.89bn per year additional over 10years) from national treasury will be far reaching for the national road network and the road users. If thedecision is made that all the required Expansion requirements must be constructed over 10 year period,using the existing non-toll budget, since this approach will generate the best economic returns.The impact of this approach will however be disastrous on the condition of the rest of the non toll roadnetwork, since remaining budget available can only cover routine maintenance needs.
0
10
20
30
40
50
60
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80
90
100
20
14
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32N
on
-To
ll N
ati
on
al
Ro
ad
Ne
two
rk C
on
dit
ion
(%
)
Year
Forcasted Non-Toll National Road Network ConditonR12bn/year Fiscus Funding for 16,283* km - With New Toll Roads
Very Good
Good
Fair
Poor
Very Poor
Note:
The implication of allowing planned Expansions to proceed as Toll Roads or increasing allocation toSANRAL by additional R11.89bn per year over 10 years), will have far reaching positive impact for thenational road network and the road users. If Expansions can be funded through toll or increased non tollallocation to SANRAL, the length of non-toll network to be maintained using existing non-toll budget, willimmediately decrease by 2,000km, resulting in more budget being available to address maintenance andstrengthening requirements.
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National Development Plan (NDP)
By 2030 aims to:
1. Eliminate income povertyi. Community Development Programme
ii. SMME Development
2. Reduce inequality.i. Develop Human Capital
ii. Improve access to national roads
Enabling milestones:
1. Increase employment from 13 m in 2010 to 24
m in 2030
2. Establish a competitive base of infrastructure,
human resources and regulatory frameworks
Blue : SANRAL’s contribution
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NDP: Critical Actions
Public infrastructure investment at 10% of GDP (total 30%
of GDP in 2030), financed through tariffs, PPPs, taxes,
loans and focused on transport, energy and water.
- toll roads
Transport:
- Upgrade the Durban-Gauteng freight corridor -
- (De Beers Pass)
- Expand capacity of coal, iron ore and manganese lines
- Build the N2 through the Eastern Cape
- Wild Coast
- Public transport infrastructure and systems, including
the renewal of commuter rail fleet, supported by
enhanced links with road-based services.
Blue : SANRAL’s contribution
14
MTSF: 14 Outcomes (2014)1. Quality basic education
2. A long and healthy life for all South Africans
3. All people in South Africa are and feel safe
4. Decent employment through inclusive growth
5. Skilled and capable workforce to support an inclusive growth path
6. An efficient, competitive and responsive economic infrastructure
network
7. Vibrant, equitable, sustainable rural communities contributing
towards food security for all
8. Sustainable human settlements and improved quality of household life
9. Responsive, accountable, effective and efficient local government
10. Protect and enhance our environmental assets and natural resources
11. Create a better South Africa, a better Africa and a better world
12. An efficient, effective and development oriented public service
13. A comprehensive, responsive and sustainable social protection system
14. A diverse, socially cohesive society with a common national identity
15
Alignment With Minister’s Performance Agreement
1. Maintenance, Strategic Expansion, Operational Efficiency of
Transport Infrastructure: Through SANRAL’s non-toll and toll
projects on the national road network
2. SIP 2: N3 De Beers Pass - Draft EIR in public comment phase until
20 April 2015 (MTSF: SANRAL commences work in 2015)
3. SIP 3: Mthatha Airport: road infrastructure - roads leading to the
airport will be done by SANRAL (MTSF: Wild Coast - SANRAL
to have commenced construction of bridges in 2014 should funding
have been arranged. Progress held up by ongoing litigation)
4. Integrated National Transport Plan: SANRAL commits to assist in
the development of the Plan
5. Decent employment opportunities: Through SANRAL’s projects
and SMME empowerment
6. Comprehensive rural development: Through SANRAL’s projects in
rural areas and access to national roads through Community
Development Projects
7. Protect and enhance environmental assets and natural resources:
Through SANRAL’s environmental policies on projects
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SANRAL: Strategic Outcomes Oriented Goals Ensure an efficient, competitive and responsive national road
network
(MTSF Outcome 6: An efficient, competitive and responsive economic
infrastructure network)
Ensure improved road safety on the national road network
(MTSF Outcome 3: All people in SA are and feel safe)
Ensure improved rural access to the national road network
(MTSF Outcome 7: Vibrant, equitable and sustainable rural communities)
(MTSF Outcome 8: Sustainable human settlements and improved quality of
household life)
Ensure sound environmental management and sustainable practice
on the national road network
(MTSF Outcome 10: Environmental assets and natural resources that are well
protected and continually enhanced)
Ensure decent employment opportunities, transformation and
empowerment
(MTSF Outcome 4: Decent employment through inclusive economic growth)
(MTSF Outcome 5: Skilled, capable workforce to support inclusive growth path)
An efficient, effective and development oriented national roads
agency
(MTSF Outcome 12: An efficient, effective, development oriented public service)
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STRATEGIC OBJECTIVES
1. Manage the national road network effectively
2. Provide safe roads
3. Carry out Government’s targeted programmes –
Transformation
4. Co-operative working relationships with relevant
Departments, Provinces, Local Authorities and SADC
member countries
5. Achieve and maintain good governance practice
6. Achieve financial sustainability
7. Pursue research, innovation and best practice
8. Safeguard SANRAL’s reputation: stakeholder
communication
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Measures performance against targets linked directly to Strategic Objectives
1. Manage the national road network effectively
• Road condition indices
• Maintenance and capital projects kilometres
• SIP Projects
• Traffic information
• Environmental Management
2. Provide safe roads
• Projects in pedestrian hazardous locations
• Road safety audits in design phase
• Road Safety education programmes
ANNUAL PERFORMANCE PLAN
2015/16 – 2017/18 (Summary)
19
3. Carry out Government’s targeted programmes –Transformation
• Empowerment through award of contracts
• Job creation
• SMME Development
• Development of Human Capital• Internal & External: employment equity,
scholarships, bursaries, internships
• Community Development projects
4. Co-operative working relationships with relevant Departments, Provinces, Local Authorities and SADC member countries
• COTO approvals
• Incident Management System across the country
• Co-operation between neighbouring countries –Botswana
ANNUAL PERFORMANCE PLAN
2015/16 – 2017/18 CONT’D
20
5. Achieve and maintain good governance practice
• Prevention of Fraud and Corruption
6. Achieve financial sustainability
• Private sector investment index
• Expenditure efficiency – overheads
7. Pursue research, innovation and best practice
• Road Design software
• Pedestrian behaviour
8. Safeguard SANRAL’s reputation: stakeholder communication Road Design software
• Positive messaging
• Publications
• Stakeholder engagement
ANNUAL PERFORMANCE PLAN
2015/16 – 2017/18 CONT’D
21
Asset Management Systems for the timely maintenance of national roads
Planned increase of national road network by incorporation of roads as requested by Provinces
Good co-operative relationships with relevant government departments, provincial and municipal authorities –sharing of asset management systems across jurisdictions
Smooth implementation of e-Tolling in Gauteng
Roll out of electronic lanes at current plazas for quicker flow of vehicles
N1-N2 Winelands Toll Road, Western Cape
N2 Wild Coast Toll Road, Eastern Cape (MTSF –Commence 2014)
N3 De Beers Pass, Free State, KZN (MTSF – Commence 2015)
KEY PRIORITIES FOR 2015/16
University of Witwatersrand
WTTP Grade 10-12
2013/14 – 42 learners
TRANSFORMATION:
SUPPORT TERTIARY INSTITUTIONS
Chair in Pavement
Engineering: University
of Stellenbosch
Chair in Transport
Planning: University of
Cape Town
NMMU
ICT weekly sessions 202 Grade 10 – 12 learners
Exposure & school visits to ICT lab 1269 learners
190 Educators
University of the Free State
ICT weekly sessions 403 Grade 10-12
Learners (QwaQwa & Bloemfontein)
ICT 2 hour learning/revision sessions to 3 902 learners
Science education students 16
Family Math & Science Grade R-3&4 learners (6 607), educators (233) student educators (588) parents 1535 from the Eastern Cape. In total 4 547 parents from Free State,
Northern Cape and Eastern Cape
Support material to 11 495 learners
1 Postgraduate Internship
University of the Free State – The SANRAL Chair in
Maths and Science
23
TRANFORMATION
Inclusion Mechanisms:
Conventional Projects
Contract Participation Goals:
Prescribed targets.
Labour Maximisation: 4% - 6% of tender
sum.
SMME/BE Utilisation: 8% - 12% of tender
sum.
90% of 8% – 12% must be black owned.
40% of 8% – 12% must be woman owned.
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TRANSFORMATION:
Inclusion Mechanisms:
Routine Road Maintenance Projects
Enhanced Sub-contractor Methodology
Main contractor typically CIDB grade 6 andupwards.
Main contractor executes 30% to 40 % of thework.
Sub-contractors typically CIDB grade 1 to 4.
Sub-contractors executes 60% to 70% of thework.
90% of SMME’s black owned.
40% of SMME’s woman owned.
25
TRANSFORMATION:
Community Development Contracts
Labour and SMME Based Contracts
SANRAL contracts with Construction Manager (CM).
CM tenders for design, training, mentoring, management.
CM does not tender for construction of the works.
SMME’s construct 90% of the work, 10% large plant.
90% of SMME’s must be black owned.
40% of SMME’s must be woman owned.
40% of SMME’s must be youth owned.
All SMME’s /labour recruited from the local community.
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Non-Toll Budget (Rand ‘000)
Description Budget
2014/15
Budget
2015/16
Budget
2016/17
Budget
2017/18
Treasury Allocations 11 916 947 12 542 488 13 490 485 14 146 662
Adhoc Maintenance 112 533 204 503 115 705 79 240
Routine Maintenance 835 588 1 001 666 933 031 920 797
Periodic Maintenance 2 040 300 2 249 117 752 910 360 541
Special Maintenance 471 841 813 799 1 158 046 1 256 492
Strengthening 3 515 873 2 267 537 2 613 979 3 488 789
Improvements 2 541 411 2 816 492 3 396 123 4 217 714
New Facilities 1 583 667 2 502 731 3 501 553 2 714 100
Land Acquisition 15 000 15 000 15 000 15 000
Community
Development Projects
383 616 358 141 277 483 124 191
27
Toll Budget (Rand ‘000)
Description Budget
2014/15
Budget
2015/16
Budget
2016/17
Budget
2017/18
Total Income 4 102 102 4 044 865 5 518 491 6 197 085
Adhoc Maintenance 2 198 16 566 17 986 27 420
Routine Operations 1 754 362 1 947 029 1 843 655 1 642 766
Periodic
Maintenance
207 075 225 068 365 912 143 179
Special Maintenance 930 111 266 31 850 40 000
Strengthening 190 329 334 252 367 904 215 407
Improvements 879 134 802 581 1 388 102 7 621 848
New Facilities 558 822 1 156 649 1 695 649 1 416 829
Finance Charges 3 315 000 3 401 000 4 047 000 4 647 000
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• Going-concern status of SANRAL due to uncertainty in GFIP e-toll project
• Need firmly communicated message on toll road funding
• Delays in project related approvals from water affairs, provinces, environmental affairs etc.
• Inadequate law enforcement:
• Traffic rules
• Overloading by hauliers
• Compliance in relation to electronic tolling
• Driver and pedestrian behaviour – road safety
CHALLENGES
29
Insufficient funding for timely upgrades and maintenance of the non-toll network
Poor progress on SIP-4 projects in North-West Province
Insufficient high-level planning and co-ordination between inter-modal transport and the three spheres of Government
CHALLENGES CONT’D
30
• Future of private sector investment in funding road infrastructure – toll road projects
• Co-operation with provinces with regard to the use of SANRAL’s asset management systems.
DISCUSSION POINTS
Thank you!
SANRAL
48 Tambotie Avenue
Val de Grace
Pretoria
0184
PO Box 415
Pretoria
0001
Telephone: +27 12 8448 000
Fax: +27 12 8448200
Nazir Alli alli@nra.co.a
Inge Mulder mulderi@nra.co.za
Alice Mathew mathewa@nra.co.za
FRAUD HOTLINE: 0800 204 558Website: www.sanral.co.za
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