Presented to the Select Committee on 18/09/2012

PRESENTATION OUTLINE1. Purpose2. Regulatory Framework3. Problem Statement4. Implications5. Background (Sequence of events, Pre-March 2012

and Post March 2012)6. Development of a Special Dispensation Model7. Proposed Model/Position taken8. Rules for successful implementation9. Risks Identified10. Consultative Framework11. Way Forward/Action Plan

PURPOSEPURPOSE

• To update the Committee in respect of normalisation of RSA/Lesotho passenger operations,

• To advise the Committee on a proposed model to normalise cross-border passenger operations,

• To solicit support of the Committee prior to implementation of the proposed model.

INTRODUCTION

The C-BRTA was established by the Cross-border

Road Transport Act 4 0f 1998 to provide for co-

operative and co-ordinated provision of advice,

regulation, facilitation and law enforcement in

respect of cross-border road transport by the

public and private sectors.

4

THE REGULATORY FRAMEWORK

DOMESTIC LEGISLATION

Cross-Border Transport Act, 4 of 1998 , as amendedNational Land Transport Act, 5 of 2009

National Road Traffic Act, 93 of 1996, as amendedTourism Act, 72 of 1993

Transport Deregulation Act, 80 of 1988

Facilitation of cross border transport through:

1.A strategic private-public sector relationship2.A strategic alliance between transport authorities3.Capacity building of private and public sector

Multilateral Agreements(International Instruments)

Bilateral Agreements( International Instruments)

•SADC Protocol on Transport, Communications & Meteorology•SACU Memorandum of Understanding on Road Transport (MoU)

Bilateral Agreements concluded between SA and;Malawi,Zambia,ZimbabweMozambique

CBRTA REGULATORY FRAMEWORK (STATUS OF AGREEMENTS)

• Chapter 14 of the Constitution regulates the validity and

implementation of international agreements;

• International agreements become law when enacted into

law by national legislation;

• The Cross Border Transport agreements are attached to the

Transport Deregulation Act, 1988, and remain in force

under the C-BRT Act;

• Cross-border road transport is regulated differently as a

result of these agreements.

BORDER CONTROL OPERATIONAL COORDINATING COMMITTEE (BCOCC)

• A coordinating structure appointed by Cabinet in 2007.

• South African Revenue Authority (SARS) is currently the lead agency.

• Oversees and coordinates all state agencies operating at all ports of entry

(seaports, airports and land ports).

• The BCOCC structure consists of:

– Port Coordination;

– Provincial BCOCC;

– National BCOCC.

• The DoT participates at the National BCOCC.

• The CBRTA , and other DoT agencies (SAMSA, ACSA) participate at Port

and Provincial structures.

PROBLEM STATEMENT• Impeded flow of passenger traffic: cross-border operations terminating at

the ports of entry of the respective jurisdictions and passengers walking through the border posts;

• Contravention of legal instruments: operations conducted contrary to SACU MOU, Cross-Border Road Transport Act and National Land Transport Act;

• Amendment Act: Operators’ failure to convert old order permits and operating licenses that purport to authorize cross-border transport to cross-border permits within window period (before 28 February 2009);

• Existence of illegal taxi ranking facilities located at various ports of entry as a direct outflow of the impeded flow of passenger traffic;

• Compromised border security and integrity: congestion which leads to compromised border control operations; and

• Compromised diplomatic relations: failure to honour SACU MOU.

PROCESS AIMED AT RESOLVING THE SITUATION

• Intervention by Director General, Mr G. Mahlalela ;• Establishment of task team consisting of NDoT, C-BRTA and the Free State

Department of Police, Roads and Transport;• Task team to investigate options for a special dispensation model to

normalise cross-border passenger operations;• Meeting convened with C-BRTA and Free State DPRT on the 15th March

2012 to acquire in-depth understanding of the matter;• Directive to reach a common understanding of the true nature of the

challenge;• There was consensus on a need to present a united front to the industry

and to develop a lasting solution to the challenge.

SPECIAL DISPENSATION PROCESSThe following are some of the options that were considered;-Option 1: Facility Sharing •This option will allow all passenger carriers, cross-border passenger carriers, domestic passenger carriers operating at ports of entry and Lesotho passenger carriers, to operate from one facility at the border, i.e. on the Ladybrand side for all operations to and from Maseru. Option 2: Stringent Compliance•This option envisaged stringent compliance and enforcement to the Southern African Customs Union on Road Transportation (SACU MoU) and the Cross-Border Road Transport Act, as amended, (C-BRT Act). •Needs a concerted and consistent law enforcement effort by all law enforcement agencies (SAPS, C-BRTA and FreeTrans) at the various international ports of entry. •This option was viewed as undesirable given the current state of law enforcement at the different ports of entry.

Option 3: Legislative Amendments•This option would require an amendment to the C-BRT Act to make provision for the “unique” situation being faced in the Free State. •This option was viewed as undesirable as it will set a bad precedent for cross-border passenger operations at other borders with more or less similar dynamics. Option 4: Transition Window•This option involves legislating a special regime to allow for all operators that purport to do cross-border road transport or whose operations may be classified as cross-border road transport to apply for the correct permit authority. •Need clear guidelines and timelines for conformance which should be amplified by stringent compliance and consistent enforcement by law enforcement agencies after the expiration of the window period. •This option has been tested during the implementation of the Cross-Border Road Transport Amendment Act, 2008. •It delivered mixed results as it was not successful at all with the operators in the Free State.

SPECIAL DISPENSATION PROCESS cont./…

Option 5: Special Emergency Measures•Allow for the Minister to declare special emergency measures after consultation with the Regulatory Committee, Free State MEC for Police, Roads and Transport and SAPS with a view to normalising cross-border passenger operations.•Special Regulations will have to be developed setting out the nature of the emergency measures to be implemented. •Regulation may however only be effective for a period of 21 days – section 46A of the Cross-Border Road Transport Act.•Consequential amendment to the Act to allow for declaration of a period in excess of 21 days.

SPECIAL DISPENSATION PROCESS cont./…

• A decision was reached to merge options 1,4 and 5 and that was further presented to the Free State MEC for Transport on the 21st August 2012,

• Feasibility of model is subject to the following;-– clear rules and timelines developed to guide the

implementation of the special dispensation,– the transition and conformance to the SACU MoU. – Any laudable efforts also precipitate consultation with all

stakeholders, i.e. the Ministry of Transport (RSA & Lesotho), relevant transport authorities (C-BRTA & FreeTrans), cross-border passenger carriers and inter- and intra-provincial passenger carriers operating from ports of entry.

PROPOSED MODEL/POSITION TAKEN

RULES TO BE EFFECTED FOR SUCCESS

• All operators to operate from common ranking facility for a defined period.

• Availability of ranking facilities at point of departure and destination.

• Conclusion of joint venture agreements with foreign counterparts.

• Joint ranking facility management.• Operators with requisite authority be allowed to cross

the border to drop-off passengers only.• All other operators to cross borders before 07h00 and

after 17h00.

RULES TO BE EFFECTED FOR SUCCESS cont./…

• Operators to cross borders during peak periods.• Inter- and intra-provincial operators to acquire cross-

border permits. • All operators that fall within definition of cross-border

road transport to apply for cross-border permits. • Rules exclude cross-border bus carriers.• Development of Section 46A Regulations (Special

Emergency Measures).• Development of legislative instrument to provide for

window period and obtaining agreement on the duration of the window period.

RISKS IDENTIFIED The task team has identified some challenges and risks that are likely to jeopardise chances of such a plan to be a success. Some of the challenges identified include;-•Time needed for promulgation of bill;•Possible lack of buy-in by Lesotho authorities and/or operators,•Possible objection by other SA stakeholders.

To mitigate these risks;-•The task team has undertaken to ensure that it puts in place a strategy to engage the Lesotho Government and other stakeholders. •Over and above the identified actions to be taken is the presentation of the proposed model to Select Committee and MinMEC prior implementation.

CONSULTATIVE FRAMEWORK

• Ministry of Transport (RSA).• The Presidency.• MEC for Transport: Free State.• Ministry of Transport and Traffic (Lesotho).• SA High Commission• National Department of Public Works.• Department of International Relations and

Cooperation.

CONSULTATIVE FRAMEWORK cont./…

• Regulatory Committee of the C-BRTA.• SA National Roads Agency Limited.• Free State Department of Transport and Public Safety.• South African Police Services.• Municipal authorities (Mantsopa, Naledi, Setsoto and

Dihlabeng)• RSA cross-border passenger carriers.• Lesotho cross-border passenger carriers.• RSA inter- and intra-provincial operators operating

from border ranking facilities.

WAY-FORWARD• To structure co-operation and meet either quarterly or twice a year to

review progress,• To develop an action plan that will ensure implementation of the

model from December 2012, • To develop programme of action for consultation of stakeholders.

(Free State will champion Provincial Government stakeholder consultation as it has all stakeholders represented at its forum including BCOCC),

• National Consultation will include DoT, CBRTA, DIRCO, Municipal Authorities , The Presidency, Kingdom of Lesotho and Operators.

• To present proposed model to Select Committee, • To address legal compliance process (streamline law enforcement

processes).