National Land Transport Bill

Presentation to Portfolio Committee

29 July 2008

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Table of contents

1. National Land Transport Strategy document1. Introduction2. Overview3. Institutional issues4. Funding5. Transport planning6. Contracting for PT services7. Regulation8. Registration9. Rail10. Freight11. Appeals

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1 Strategy document:Introduction Drafting of the Bill was based on National

Land Transport Strategy Document (NLTS) presented on 23 August 2007

NLTS was based on interviews and policy docs since 2000, e.g Public Transport Strategy & Action Plan approved by Cabinet in 2007, National Rail Plan, 2005 etc.

Basic policy in 1996 White Paper stays the same

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2 Strategy document:Overview More uniform laws and procedures needed across

the country Functions should be consolidated with the same

entity where possible to avoid fragmentation, within limits of Constitution

Interprovincial and tourist transport should be regulated nationally

Integrated rapid PT networks (IRPTNs) should be established in larger cities, incorporating all modes, with through-ticketing etc.

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2.2 Strategy document:Overview cont. Dedicated funds should be established in each

sphere with new funding sources Planning authority should do contracting for services

and issue operating licences (OLs) Registration can be dealt with by entities responsible

for OLs: Bill does not need to control registration Will be a separate Rail Act later, e.g. to establish Rail

Economic Regulator and deal with infrastructure issues

Freight should not be regulated by the Bill, but there should be other measures: e.g. to attract freight to the rail mode

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3 Institutional issues

White Paper, 1996 supports principle of subsidiarity i.e. devolve functions to lowest appropriate sphere

Concerns/impediments in NLTTA: Lack of sustainable funding Conflict with local government legislation Limitation in range of functions assigned to TAs Problem of unfunded mandates Problem: transport authorities (TAs) not

autonomous from their municipality/ies

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3 Institutional issues cont. 6.1 Underlying problems:

Fragmentation of functions is a problem: Rail function is national (SARCC does planning) Bus subsidies, OL Boards & Registrars at provincial level Municipalities required to do ITPs

The following functions should be performed by the same entity:

Planning – ITP: all PT services Service delivery: operations and subsidies Regulation – OLB functions Monitoring: compliance/operations

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3 Institutional issues cont. Recommendations:

4 essential elements need to be placed at a single sphere of government:

Planning and co-ordination Service delivery Regulation and market entry Monitoring

All these should be placed at the municipal sphere Consolidate the following at municipal sphere:

Road based subsidy function Monitoring of subsidised service contracts Regulation (operating licence) function

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3 Institutional issues cont. 6.3 Recommendations cont.:

Funding for subsidised service contracts should be transferred directly to metropolitan municipalities

Metros should have more responsibility for service level planning for commuter rail – establish a statutory committee

Treat “aspirant metros” the same as metros Transport authorities: where there is more than one

municipality in a functional area, a TA should be established Where a TA is established, it should have the full range of

transport functions Resolve conflict with Municipal Systems Act and MFMA Provide dedicated funding sources

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4. Funding

NLTTA provides no dedicated funding sources (Min. or MEC may give funds)

Bus subsidies “frozen”: i.e. only increased for inflation Bus subsidies voted on DoT budget and distributed

by provinces: system largely not integrated with ITPs – leads to lack of accountability

Cities and TAs responsible for ITPs, but have no control over rail services and limited control over bus and taxi operations – leads to lack of accountablility

Deficit funding by central government discourages the search for more efficient supply mechanisms

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4. Funding cont.

Recommendations: Empower TAs and certain municipalities to

raise user charges Establish funds in all three spheres of govt. Transform subsidies into a metro-managed

integrated system Substantially increase subsidies to promote

PT – educate public about need for PT Consolidate functions in the local sphere Clarify role of TAs re capital expenditure

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5. Transport planning

Planning requirements too onerous: NLTTA amended by Act 26 of 2000

Essential planning approach should remain the same New Minimum ITP Requirements published on 30 November

2007: NLTSF remains, and will incorporate National Transport

Master Plan, National Rail Plan, Freight Logistics Strategy etc.

PLTFs remain Comprehensive ITP for metros and larger cities District ITP for district municipalities Local ITP for local municipalities – much simpler plan

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6. Contracting for PT services Many interim contracts still exist on old multi-journey

ticket subsidy system – contrary to NLTTA Old subsidy system not integrated with ITPs – not

acceptable to reduce or remove routes Subsidy amount generally only increased for inflation Model tender & contract docs too restrictive: only allow

for net-based contracts Negotiated contracts are supposed to be an exception,

but many implemented NLTTA requires TAs to take over the subsidy function

– eThekwini TA has not yet done so System managed by provinces, who are not the

planning authorities

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6. Contracting forPT services cont. Recommendations:

Subsidy money should be transferred to authorities responsible for land use & transport planning

Roles of 3 spheres should be established more clearly Should be a one-off phasing in process to convert existing

contracts to negotiated contracts on a gross basis in urban areas to accommodate IRPTNs

Bill should promote more flexibility in contracting Review definition of contracting authority to include aspirant

metros and/or designated municipalities No restrictions if authority uses own funds Deadlines for interim contracts to be converted Integrate municipal bus services Expand maximum period of OLs in the case of contracts Integrate bus and minibus services into IRPTNs

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7. Regulation

OL system is not plan managed: PA control over OLBs is weak

OLBs not functioning properly: backlogs with conversion of permits etc.

The regulatory system should reside with the same body that does planning

Need to streamline regulatory process Uniform, national system and standards needed Concurrencies by provinces for interprovincial

services are a problem Different system needed for tourist transport: initiative

of DEAT, DoT and tourist industry

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7. Regulation cont.

Establish national regulatory entity, responsible for: Interprovincial services Tourist transport services Oversight, setting standards etc.

Dissolve 9 OLBs and set up a new regulatory entity in each province that is primarily administrative

OL applications must first go to planning authorities for a decision based on plans (ITPs)

Where municipalities do not have capacity, provinces should prepare ITPs on their behalf

Where a PA issues a contract, the regulatory entity must issue an OL accordingly

OLAS must be on line to eNATIS and to PAs etc.

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7. Regulation cont.

Recommendations cont.: Regulatory functions must be fully assigned to a

regulatory entity in the municipal sphere in selected municipalities designated by the Minister, and to TAs. These municipalities must demonstrate willingness, capacity and readiness

A municipal regulatory entity should be able to give notice that it will not accept unsolicited applications if its ITP does not show a need

Degree of regulation will differ according to type of service

OLs should be linked to vehicles and routes (with certain exceptions in the case of routes)

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7. Regulation cont.

Develop a system for OLs in electronic format PT facilities should be publicly owned &

managed PAs need more powers over fare systems OLs for routes that terminate within a

specified distance of an int. border should be dealt with by the Cross-Border Agency

Passenger liability insurance issues need to be resolved

Taxi Recap should not be explicit in the Bill

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8. Registration

Registration of associations and operators was a transitional measure for minibus taxis

Registration of other modes could be provided in provincial laws: process not started yet

Registrars’ functions should now be covered by NPTR, PREs and DPAs/APAs

RAS and OLAS systems should be combined Bill should not require compulsory registration

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9. Rail

Changes in the rail sector since the 1996 White Paper indicate that a change in the regulatory regime is required

National Rail Plan: is a priority corridor strategy Rail planning done in national sphere and not always

integrated with ITPs Recommendations:

A new Rail Act should deal with the proposed Rail Economic Regulator, and infrastructure issues

NLTB should provide a formalised structure for consultation between rail & road PAs

Need tighter provisions to integrate the rail mode

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10. Freight

Freight was deregulated in 1988 Establish principle to move freight by

appropriate mode Include basic, strategic freight network in

ITPs Include route networks for dangerous goods

and abnormal loads Disallow freight movement in some areas,

e.g. environmentally sensitive ones

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11. Appeals

National Transport Appeal Tribunal (TAT) should be retained for all OL appeals

Provincial appeal bodies should no longer be provided for