Policy Agencies Privatization and Restructuring Transnet Ltd. Road Transport National Roads Provincial Road Spatial Development Initiatives Municipal Roads  Toll Roads Road Expenditure Road Traffic Signs Public Transport  Urban Transport Cross-border Transport Goods Transport Road Traffic Safety Road Traffic Control   Accident Insurance  Rail Transport Spoornet  SARCC  Civil Aviation  Airports Major Airlines Ports Pipelines Maritime Affairs Maritime Administration, Legislation and Shipping Training Search and Rescue Services
South Africa’s extensive transport system plays an important role in the national economy as well as in the economies of several other African states. A number of countries in southern Africa use the South African transport infrastructure to move their imports and exports. The main functions of the Department of Transport include policy formulation, strategic planning, which facilitates growth and development, and regulation, which promotes fair competition, upholds safety standards and protects the environment.    Policy The national road system links all major centers in the country and neighboring countries. The network covers some 7 000 km while toll-roads, which are serviced by 21 toll-plazas, cover about 1 000 km. Several new projects are in the pipeline. The Department of Transport is in the process of reviewing the national transport policy to ensure that it meets the needs of all citizens. The National Land Transport Transition Bill was tabled in Parliament in February 2000. It provides for a completely new system of ‘permissions’ to replace permits for taxi and bus transport and will lay the foundation for a fully integrated, long-term user-orientated land transport system. The Bill rests on five pillars, namely the creation of appropriate institutional bodies, planning, regulated competition and the restructuring of modes, sustainable funding and effective transport law enforcement. The Department launched the Moving South Africa Strategy in 1998.  A report entitled Moving South Africa Strategy and based on an intensive 14-month research process was released in May 1999. It contains a unique strategic framework for the improvement of passenger and freight transport over a 20-year period, based, for the first time, on the needs of the consumer. The project focuses mainly on the improvement of infrastructure and the encouragement of private investment, particularly in the minibus-taxi, bus and rail sectors. Investments in the public transport system will be redirected to historically disadvantaged people such as the disabled and senior citizens. The Strategy also aims to concentrate residential and industrial developments around transport corridors. This will increase the number of people using public transport and bring down costs, allowing the Government and operators to focus investment in the corridors.    Agencies The Department of Transport has established four bodies to move certain elements of the Government’s operational activities to commercial agencies. They are the South African National Roads Agency (NRA), the South African Maritime Safety Authority (SAMSA), the Cross-border Road Transport Agency (CBRTA) and the South African Civil Aviation Authority (SACAA). The agencies perform functions and services previously provided by the national Department of Transport in a fully commercial environment. They have been assigned clearly-defined responsibilities and functions and each agency has entered into a formal performance agreement and memorandum of understanding with the Government as shareholder. NRA The NRA, a company registered in terms of the Companies Act, 1973 (Act 61 of 1973), replaced the old South African Roads Board. Its mission is to provide and manage an adequate and sustainable primary road network in South Africa, at optimum cost and efficiency, in order to stimulate economic growth and improve quality of life. Its purpose is to maintain and develop the national road network and to manage assets with an estimated value of more than R135 billion. The NRA’s responsibilities are to strategically plan, design, construct, operate, rehabilitate and maintain South Africa’s national roads deliver and maintain a world-class primary road network generate revenue from the development and management of its assets undertake research and development to enhance the quality of the country’s roads upon request from the Minister and in agreement with a foreign country, provide, operate and maintain roads in that country. The budget of the NRA derives from various sources, including levies on petrol and distillate fuels, loans granted to or raised by the Agency, income from tolls charged, income earned in terms of joint ventures, fines and penalties. SAMSA The Authority is a statutory body that reports to the Minister of Transport through a board of directors. Its responsibilities include the promotion of safety of life and property at sea, the prevention of sea pollution by pollutants emanating from ships and the co-ordination of overall technical operations. It also develops policy in respect of legal issues, foreign relations, marine pollution and certain specific safety matters. SAMSA’s main functions are to provide shipping competence and pollution services in a regional context manage marine incidents, casualties, wrecks and participation in search and rescue control standby tugs and pollution stores maintain seafarers according to standards of training and staffing criteria provide a shipping administration support service manage the registration of ships develop a national port authority manage a coastal patrol service manage vessel traffic including navigation aids provide lighthouse services. Funding comes from levies on ships calling at South African ports, direct user charges and government service fees among other sources. CBRTA The Agency regulates and controls access to the cross-border road transport market by the road transport industry. It also aims to facilitate the establishment of co-operative and consultative relationships and structures between public and private-sector institutions with an interest in cross-border transport. The CBRTA is furthermore involved in the collection, processing and dissemination of relevant information, the provision of training and capacity-building and the promotion of entrepreneurship, with the focus on small, medium and micro-enterprises (SMMEs) with an interest in cross-border road transport. The functions of the Agency include advising the Minister of Transport on crossborder transport matters and assisting in the process of negotiating and renegotiating cross-border road transport agreements if requested to do so regulating the road transport industry’s access to the cross-border road transport market facilitating ongoing co-operative and consultative relationships and structures between the public and private sector in support of cross-border road transport operations undertaking road transport law-enforcement. The main source of income for the CBRTA is fees charged for cross-border permits. SACAA SACAA became operational after the passing of the South African Civil Aviation Authority Act, 1998 (Act 40 of 1998). The Authority is responsible for promoting civil aviation, regulating the industry and enforcing safety standards. It is funded by a combination of user charges, a levy paid by all users of aviation fuel, including the military, and government funding for services performed by the SACAA on its behalf.    Privatization and restructuring In April 1998, the Department of Transport oversaw the highly successful sale of 20% of the Airports Company of South Africa (ACSA) to an international consortium, led by Aeroporti di Roma, for R819 million. July saw the further sale of 21 million shares or 4,2% of ACSA’s issued share capital to six South African empowerment groups for R172 million. In addition, the Department offered 9% of ACSA’s shares to ACSA management and employees and set aside 10% for the National Empowerment Fund (NEF). In June 1999, Swissair became South African Airways’ (SAA) strategic partner, acquiring a 20% share of the national carrier for R1,4 billion. Swissair paid an additional R48 million for an option to buy a further 10%. The acquisition agreement was formally signed on 19 November 1999, following approval by the European Union because SAirGroup, the holding company of Swissair, is a European company operating in the competitive international industry. A potential beneficiary is the NEF. During 1999, Transnet’s travel subsidiary, Connex Travel, was sold to a consortium for R13,5 million. Concessions or joint venture partners will be introduced to strategic businesses such as Spoornet, Metrorail and Portnet, while an equity or joint venture partner will be found for Petronet. The business unit of Autonet has been earmarked for full privatization. Discussions are taking place within the National Framework Agreement the consultative forum between labor and the Government on the restructuring of State assets on how this process should proceed. In October 1999, Transnet announced that Autonet would privatize its commuter service during 2000. By December 1999, the two commuter brands, City to City and Translux, had been corporatized in preparation of the sale.    Transnet Limited The public company Transnet Limited was founded on 1 April 1990. Transnet handles 180 Mt of rail freight per year, 2,6 Mt road freight, 2,4 million passengers by road, 185 Mt through the harbors, while 16 000 Ml are pumped through its petrol pipelines annually. The company flies 5,3 million domestic, regional and international passengers per year. In total, Transnet is worth R49,5 billion in fixed assets and has a workforce of some 95 000 employees. Transnet consists of seven transport businesses Spoornet (rail transport), Portnet (harbors), Autonet (road transport), Petronet (liquid petroleum transport), SAA (air transport), Fast Forward (container shipments) and Metrorail (commuter rail services)   and a number of related and support businesses. In February 1998, Transnet launched independent boards for its seven divisions as part of its transformation process. Petronet, SAA, Autonet, Portnet, Metrorail, Fast Forward and Spoornet have to drive the business operations of each division. For the financial year ended 31 March 1999, Transnet reported a net loss of R426 million. The loss was ascribed to the need to right size the business for the new millennium, retrenchment costs and post-retirement benefits for South African Transport Services pensioners. Continued focus on cost controls and operating efficiencies as well as a R350-million SAA turn-around enabled Transnet to post a reasonable profit of R779 million on 31 March 2000.    Road transport National roads In terms of the National Roads Act, 1998 (Act 7 of 1998), the Government is responsible for overall policy, while road-building and maintenance is the responsibility of the NRA. The Agency will initially only manage the construction and maintenance of South Africa’s 8 000-km national road network, but it is expected that this will be extended to 20 000 km of primary roads in the future. The national road system links all the major centers in the country to one another as well as to neighboring countries. These roads include some 1 440 km of dual-carriage freeway, 292 km of single-carriage freeway and 4 401 km of single-carriage main road with unlimited access. The Department of Transport has embarked on 20 major road projects (including toll-roads), worth more than R5 billion over two years many of which have brought substantial benefits to local communities.    Provincial roads The planning, construction and maintenance of roads and bridges, other than those falling under the NRA or local governments, is the responsibility of the provincial governments.    Spatial Development Initiatives The Spatial Development Initiatives (SDIs) program uses public resources particularly project planning, scoping and logistical coordination skills to leverage private sector involvement. SDIs are recognized as an effective means of stimulating economic growth by exploiting the existing economic potential within an area. The Department’s involvement in this project is focused on hard infrastructure provision, black economic empowerment, skills transfer and the creation of sustainable jobs. The SDIs are Lubombo, West Coast, Fish River, Maputo Development Corridor, Wild Coast, Platinum, Phalaborwa and Richards Bay.    Municipal roads Construction and maintenance of most roads and streets falling within the municipal boundaries of cities and towns is the responsibility of the municipality concerned.    Toll-roads Toll-roads cover some 1 000 km and are serviced by 21 toll-plazas. The viability of every toll-road is determined over a 30-year period in order to assess the private-sector funding which can be sustained and served. The performance of all toll-roads is within the forecast and in many cases roads perform better than forecast. It is envisaged that all major new toll-road projects will be financed through a mechanism commonly known as Build, Operate and Transfer. This allows greater private-sector involvement in the financing, building, operation and maintenance of toll projects. When the concession period expires, the facility is transferred back to the State at no cost. Construction of the N4 Maputo Corridor Toll-road has begun and will include 70 km of new road, 112 km of rehabilitation and 240 km of road-widening. The new road, to be completed in two years, will be one of the few privately-financed crossborder toll-roads in the world. The third of five N4 toll-plazas, the N4 Nkomazi Toll-Plaza, was opened in August 1999. Ownership of the N4 Maputo Corridor Toll-road, for which Trans African Concessions is the concessionaire for 30 years, will revert to the South African and Mozambican governments after the concession agreement expires. The contract for the second phase of the country’s largest single project as a public-private partnership was confirmed in November 1999. It involves the N3 national route between Heidelberg in Gauteng and Cedara in KwaZulu-Natal.  The concessionaire is N3 Toll-road Concession (Pty) Limited. The consortium will, at an estimated cost of R3,5 billion, upgrade and build new sections and operate the route for 30 years, after which it will hand back control to the Government free of debt. Construction was expected to start in the first half of 2000. The project will create more than 25 000 jobs and benefit more than 500 SMMEs. The Platinum Toll-road will eventually link Maputo Harbour in Mozambique with Walvis Bay in Namibia. South Africa’s contribution will involve the construction of the road from Pretoria in Gauteng to Rustenburg in North-West and Lobatse in Botswana. It was announced in December 1999 that Bakwena Platinum Corridor Consortium was the preferred bidder for the R2,6-billion contract.    Road expenditure The Minister of Transport, Mr. Dullah Omar, announced in October 1999 that it would cost about R23 billion to upgrade and build new roads in the rural areas. During 1998, damage to mainly major roads amounting to R600 million was caused by overloaded vehicles. As a result, the NRA had embarked on a R100-million strategy to combat overloading on the N4 toll-road between Witbank and Maputo, with trucking companies facing heavy fines for offences. The strategy also involves the building of five new weighing stations.    Expenditure on national roads falls into the following categories: routine, periodic and special maintenance and provision of support to increase road safety improvement of the network, rehabilitation and reconstruction, upgrading and provision of new facilities.    Road traffic signs A revised road traffic-sign system, which closely conforms to international standards, has been phased in since November 1993. Signs under the previous system may be displayed until 31 December 2000. The revised system involves changes to the colors of some of the regulatory and all of the warning signs, changes in design parameters, the modernization of text and symbols, and the addition of new signs, signals and markings. Many of the new signs make use of symbols rather than text to eliminate language problems and to reduce observation time. South Africa is preparing a road-signs manual for the Southern African Development Community (SADC) in terms of the 1998 Protocol on Transport, Communications and Meteorology.    Public transport In terms of the Constitution of South Africa, 1996 (Act 108 of 1996), legislative and executive powers in respect of public transport are a provincial competency.    Urban transport Metropolitan transport advisory boards govern urban areas which have been declared metropolitan transport areas. Both short and long-term programs for adequate transportation development are drawn up by the core city of each area and are revised and adjusted annually. Nine such core areas exist, namely Johannesburg, Cape Town, Pretoria, Durban, Pietermaritzburg, Port Elizabeth, the East Rand, Bloemfontein and East London. The planning of transport for metropolitan and major urban areas must be in accordance with a growth management plan and travel modes should not compete with each other. In urban areas, passenger road transport services are provided by local governments and private bus companies, which operate scheduled bus services between peripheral areas and city centers, and by minibus-taxis. The taxi industry has shown phenomenal growth during the last few years, leading to a decrease in the market share of the bus and train as modes of transport. Currently, government subsidies for public transport amount to R2,5 billion a year. Operators may now tender for contracts to operate their services according to specifications. The Government will monitor the quantity, quality and price of the service offered by each bus company. In terms of the scheme set out in the White Paper on National Transport Policy, transport costs will be kept below 10% of disposable income. Motor cars On 28 February 1998, there were some 6,55 million registered motor vehicles in South Africa, more than 3,8 million of which were motor cars. Minibus-taxis Minibus-taxis provide 65% of the 2,5 billion annual passenger trips in urban areas and a high percentage of rural and intercity transport. More than 480 taxi associations are operating throughout the country. The South African Taxi Council (SATACO) is the umbrella body for all provincial taxi organizations and strives to regulate, formalize and stabilize the industry. The Council acts as a mediator in disputes between taxi organizations and plays a role in eliminating the causes of taxi violence. In May 1999, the Government signed a memorandum of understanding with SATACO, paving the way for the replacement of the industry’s aging fleet and its absorption into South Africa’s formal economy. The memorandum commits SATACO to, among other things, act against violent elements in the industry, to participate in the regulation of the industry by ensuring its members have legal operations and to implement a program of acceptable labor practices. The Government, in turn, is bound by the memorandum to find an acceptable solution to the industry’s recapitalization crisis, to legalize illegal operations within agreed parameters and to provide taxi operators with extensive training. Taxi Recapitalization Program The Government is in the process of developing a R3-billion strategy to deal with the economic challenges facing the aged 126 000-strong taxi fleet. Most of these vehicles are more than nine years old. The aim of the Taxi Recapitalization Program is to replace, over a five-year period, the current aging taxi fleet with new, locally assembled 18 and 35 seater vehicles specifically designed to meet high quality and safety standards required for public passenger transport. Key to the project will be a strong empowerment element involving the establishment of taxi co-operatives to liaise with financiers, distribute the new vehicles and to provide the facilities for a compulsory maintenance program. The co-operatives will be established after extensive consultation with local taxi organizations. The aim is to ensure that the new vehicles are manufactured locally and to tap into South Africa’s highly diversified components-manufacturing sector. The vehicles will use diesel, which is cheaper than petrol and which will be distributed by the co-operatives. Diesel will also cut back on noxious exhaust emissions. The taxis will contain unique features such as a stalling device to prevent overloading and so-called smart-card payment systems. This innovative scheme, developed by a task team representing the departments of Transport, Trade and Industry, Minerals and Energy and the National Treasury in partnership with the taxi industry, will be facilitated via a permit swap system (old for new) and a scrapping allowance which will be available to legal owners of existing vehicles to offset the price of the new vehicles. The scheme has built-in regulatory levers in the form of compulsory registration of new vehicles on a national permits database and forced maintenance contracts linked to the residual (scrapping) value of the vehicle at the end of its effective life. The first interim vehicles were expected to be on sale by October 2000, with local assembly to begin before October 2002. Bus transport A network of public and privately-owned passenger bus services links the major centers of South Africa and also serves commuters in the deep rural areas. A spate of serious bus accidents in the latter half of 1999 led the Cabinet to approve far-reaching measures intended to improve public transport safety. These included the immediate intensification of law enforcement, lowering of the maximum speed limit for buses and minibus-taxis to 100km/h and a program of vehicle fitness-testing for buses.    Cross-border transport Multilateral The SADC Protocol on Transport, Communications and Meteorology provides a comprehensive framework for regional integration across the entire spectrum of the transport, communications and meteorology sectors. The general objective is to promote the provision of efficient, cost-effective and fully integrated infrastructure and operations in these fields. The Protocol also specifically addresses road transport and aims at facilitating the unimpeded flow of goods and passengers between and across the territories of SADC member states and at promoting the adoption of a harmonized policy which lays down general operational conditions for carriers. Cross-border transport within the Southern African Customs Union (SACU) is undertaken in terms of the SACU Memorandum of Understanding. The Memorandum facilitates transport between member countries through, among other things, the use of the single permit system. The Memorandum provides the framework for co-operation between the signatory countries which has resulted in the establishment of various technical working groups for such things as traffic standards, road-user charges and passenger transport. The activities of the passenger transport working group led to the establishment of Joint Route Management Committees (JRMCs) for certain cross-border passenger routes within SACU. The JRMCs comprise representatives from the public and private sectors of the countries concerned and are aimed at jointly managing the routes in consultation with all stakeholders. Bilateral The main thrust of bilateral agreements is to facilitate and encourage cross-border road transport in support of regional trade. This is promoted through, among other things, the entrenchment of the principle of extraterritorial jurisdiction, the entrenchment of a strategic public-private sector relationship and the establishment of consultative mechanisms which are sufficiently flexible to promote the joint management of implementation. The Maputo Development Corridor between South Africa and Mozambique is a good example. The two governments also signed agreements dealing with road freight and passenger transport between the two countries which will facilitate the movement of goods and people by road and eliminate bureaucratic proceedings at the borders of the two countries. The project will also include the upgrading and modernization of the railway line between the two countries and of Maputo Harbor at a cost of about R150 million. Domestic The CBRTA fosters investment in the cross-border road transport industry and provides high-quality cross-border freight and passenger road transport services at reasonable prices. The Agency works on a cost-recovery basis and any profits from cross-border permit fees are ploughed back into the system through a price reduction on permits in the following financial year. It also encourages small business development in the industry.    Goods transport Since the mid-eighties, the southern African road transport industry has grown considerably, with the number of road operators increasing from less than 400 in 1988 to nearly 4 000.  Approximately 80% of all freight carried in South Africa is conveyed by road, while nearly 7% of the gross national product is spent on freight transport.    Road traffic safety South Africa’s road vehicle collision and fatality rates compare poorly with those of most other countries. Every year about 10 000 people are killed and 150 000 injured in approximately 500 000 accidents. The cost of road traffic accidents is estimated at more than R11,9 billion a year. The Constitution authorizes provinces to exercise legislative and executive powers pertaining to road traffic safety, while the promotion thereof is primarily the responsibility of the Department of Transport. The Road Traffic Safety Board (RTSB) endorses and acts as guardian of the Road Traffic Management Strategy (RTMS), assists in the identification, formulation and prioritization of projects, monitors progress, and gives direction in the implementation of the RTMS. The RTMB is made up of members of all three spheres of government as well as traffic stakeholders in the private sector. The Ministers of Education, Health, Justice and Constitutional Development, Provincial and Local Government, Safety and Security, and Transport serve on the Board. During 1999, three Acts were passed to provide for national coordination of regulation and law enforcement, the registration and licensing of motor vehicles and the training and appointment of traffic officers. These are the Road Traffic Management Corporation (RTMC) Act, 1999 (Act 20 of 1999), the National Road Traffic Amendment Act, 1999 (Act 21 of 1999), and the Administrative Adjudication of Road Traffic Offences Amendment Act, 1999 (Act 22 of 1999). The Administrative Adjudication of Road Traffic Offences Amendment Act, 1999 provides for a more efficient system of collecting traffic fines and for the introduction of a points demerit system, linked to the new credit card-format (CCF) driver’s license. In terms of the Act, a motorist’s driver’s license will be suspended when he or she has 12 penalty points against his or her name. For every point over and above 12, the motorist’s license will be suspended for three months. Points can easily be accumulated, for example four points each for exceeding the speed limit by 50%, driving an unregistered vehicle, refusing to undergo a blood or breathalyser test or driving a vehicle without registration plates. The use of hand-held cellular phones in vehicles was banned in August 2000; non-compliance could cost a motorist two points. When a license is suspended for a third time, it will be cancelled and the motorist will again have to undergo a driver’s test. In even more serious cases, a court may forbid a motorist ever to drive on a public road again. However, the system in no way detracts from the accused’s constitutional right to a fair trial. The points demerit system is to be implemented in phases. A working group, drawn from the national and provincial departments of Transport, was established to evaluate the success of the Arrive Alive Campaign. From this flowed the RTMC model, which, in turn, gave rise to the RTMC Act, 1999. The establishment of the RTMC is specifically intended to redefine and strengthen the structures and mechanisms for co-operation between the national, provincial and local spheres of government in support of their responsibilities for road traffic strategic planning, regulation, facilitation and enforcement and to ensure uniformity in law enforcement and road traffic management country-wide. The main focus of the new system will be on road traffic law enforcement and the improvement of income streams. The objectives will be to curb fraud and corruption, increase private-sector involvement in road traffic management and improve the quality of service to the public. The RTMC will create a single umbrella structure which will address functions such as vehicle and driver testing and licensing, standards monitoring, centralized statistical research and professional career development of traffic officers. It will also set up a Traffic Academy. Final implementation is expected by early 2001. Arrive Alive The Government’s Arrive Alive road safety campaign was launched in October 1997 and swings into action every year over peak holiday periods. The main objectives of the campaign are to reduce the number of road traffic accidents in general, and fatalities in particular, by 5% compared with the same period the previous year improve road user compliance with traffic laws forge an improved working relationship between traffic authorities in the various spheres of government. The campaign entered its fourth phase at the start of the December 1999 holiday period. This phase focused specifically on the dangers of drinking and driving, speeding and tough law enforcement. At the launch of the phase in November, the Minister of Transport, Mr. Dullah Omar, announced that the names of persons who were found guilty of drunken driving would be published in the media. He also announced that as from 26 November 1999, the speed limit for minibus-taxis and buses would be reduced to 100 km/h in all 120 km/h zones. The speed limit for trucks remained unchanged at 80 km/h.    Road traffic control The Department of Transport is responsible for coordinating and harmonizing traffic control (law enforcement) in South Africa. This is done in liaison with the provinces, which have legislative and executive powers in this regard. The aim is to enhance traffic quality, promote voluntary compliance by road users with rules and regulations, reduce the incidence of traffic offences, prevent accidents, ensure effective adjudication and implement improved management. An important facet of the Department’s work is the development of a standardized management system for traffic control at micro level, to assist traffic authorities in managing their internal and external environments optimally and to achieve the highest levels of traffic quality, subject to the limited availability of resources. The traffic management model has been implemented at approximately 100 provincial and local traffic authorities. Other functions undertaken by the Department include the following: the development of a standardized training system for traffic personnel the development of a proactive traffic control system, with special emphasis on community involvement in the improvement of traffic quality facilitating the national overloading control program for the protection of roads on rural, metropolitan and urban routes, and several other coordinated programs regarding critical road traffic offences or modes, e.g. alcohol, speeding, following distance, tire condition and pedestrians. The National Traffic Information System (NaTIS) is an online system, allowing traffic authorities to key in and verify the particulars of a transaction while the applicant is still in the office. The conversion to the CCF licenses will improve the operation of the System, which is expected to save the country millions of rands by making traffic administration more efficient and reducing traffic accidents, forged licenses and vehicle theft.  The NaTIS provides for vehicle registration and licensing driver and professional driver registration registration of authorized officers and vehicle and driver-testing facilities recording of traffic offences recording of collisions.    Accident insurance The White Paper on the Road Accident Fund (RAF), released in 1998, envisaged, through interim measures, the stabilization of the Fund by cutting costs and reducing its R12-billion deficit within ten years. The document proposed the removal of the right to sue negligent, drunken or reckless drivers for damages and the introduction of a limit on benefits. It also envisaged the scrapping of claims under R5 000. The White Paper drew complaints from the legal profession, the South African Chamber of Business and disability groups, who all felt they would be prejudiced by the new legislation. Subsequently, in June 1999, the Government appointed the Commission of Inquiry into the RAF led by High Court Judge Kathleen Satchwell to review the entire system of compensation paid by the Fund to road accident victims, thereby shelving other plans to restructure the troubled Fund. The Commission will also make recommendations on a reasonable, equitable, affordable and sustainable system for the payment by the RAF of compensation or benefits, or both, to accident victims. The Commission’s work is one leg of a multi-pronged strategy, and includes cleaning up fraudulent practices by legal firms and limiting the amount attorneys may charge victims for their services on an attorney-client basis. Under the present system, motor accident victims are able to claim up to R1 million for damages and loss of income.    Rail transport The rail network in South Africa falls under the control of Spoornet and the South African Rail Commuter Corporation (SARCC). Spoornet provides rail transport mainly for goods and containers, but also operates a long-distance passenger service between major cities. Metrorail, in turn, is responsible for providing commuter services in the six major urban centers in the country.    Spoornet Spoornet focuses on the transportation of freight and containers and main line passenger transport by rail, and continues to pursue its vision of being the leader in profitable freight logistics solutions (FLS). Of equal importance is the process of transformation, which must be accelerated for Spoornet to play a role in the economy of South Africa and to contribute to a sustainable South African freight transport industry. General Freight Business (GFB) Although transformation of every facet of the business will be pursued, specific attention will be placed on transforming GFB into a rationalized, streamlined, market-driven and customer-focused division. GFB has successfully implemented FLS for a number of its sectors. This entails logistics service products created by Spoornet to serve market requirements. A suite of logistics options have been developed which range from the total supply chain compilation (for example, from mine to shipping vessel) to a single aspect of the supply chain such as the best location and operation of a distribution center. COALlink COALlink is responsible for the haulage of export coal from the Mpumalanga coal fields to the coal terminal at Richards Bay. In 1999, COALlink achieved a record turnover and set a new record for quantity delivered  64,75 Mt. Orex Orex is a specialist unit of Spoornet dealing with the haulage of iron ore from Sishen to Saldanha Bay as well as providing a diverse range of heavy-haul logistics solutions for growing local and international markets. The 861-km Sishen Saldanha line carries 22 Mt of iron ore per annum. Orex will increase its capacity to 25 Mt per annum. Main Line Passenger Services Main Line Passenger Services continues Spoornet’s strategy of focusing the business on customer needs. There are several inter-city passenger trains in operation in South Africa. Blue Train The Blue Train was nominated for and won the award as ‘the world’s leading luxury train’ at the World Travel Awards held in the Bahamas in 1998 and 1999. The Blue Train which actually comprise two trains and four separate routes has become an important part of tourism packages to South Africa. Africa The establishment of the Southern African Railway Association resulted in the consolidation of rail development plans for the SADC region. The emphasis on rail corridors means the synergistic development of rail infrastructure and operations will optimize efficiencies and improve the flow of goods. To date, 10 international rail corridors have been identified. The challenge, however, is to create effective management and operational structures for these corridors that will be recognized by the transport industry and its users as the best way to move goods within the SADC. The aim of these corridors must be to retain current international rail traffic and attract new traffic to rail from road, and in some cases from sea. Successes include the operations redesign and the implementation of the coal export project on the rail link along the Maputo Corridor. Spoornet’s achievement in working with its four railway partners (Botswana Railways, Zambia Railways Limited, National Railways of Zimbabwe and Tanzania-Zambia Railway Authority) to create a competitive, predictable and relatively fast international rail service to Tanzania is also noteworthy. The line links with rail services on the TransAfrica Railway Corporation/Tanzania Railway Corporation network and the Uganda Railways ferry service to Kampala. This South-East Africa service is expected to be the model for other international rail corridor services. Traffic using this service has never moved by rail before. Spoornet contracted British Buluwayo Railway to operate the line built between Beit Bridge and Buluwayo via West Nicholson in Zimbabwe. The new route is shorter than the old (via Gweru), which should enable rail services to compete more effectively and provide greatly improved customer service. Spoornet also operates the actual rail service on behalf of the owner company. Social investment activities Spoornet contributes to the social fabric of South Africa and notable social investment activities include the following: Legal i Train This is a joint venture between Spoornet and Legal i (a Section 21 company) to bring free legal advice to rural communities, towns and townships. AIDS awareness train Spoornet was approached by the Department of Social Development  to be part of the Acquired Immune Deficiency Syndrome (AIDS) project On The Right Track.  The AIDS train operates as a moving conference. Mr. Choo Choo Safety Education Campaign With the high incidence of accidents on and around railway tracks and trains, this Campaign is aimed at educating children, their parents and the general public about rail safety. Spoornet Rugby Excellence Program Spoornet signed a five-year agreement (1998 to 2002) with the South African Rugby Football Union for the sponsorship to help previously disadvantaged elite rugby players attain national status. Four players were capped for the Rugby World Cup Tournament in 1999.    The SARCC The SARCC is a State corporation, established in 1990 to provide commuter rail services for the people of South Africa. It falls directly under the Department of Transport, but has its own autonomous board of control. It owns the rail assets and acts as an agency of the Department.  The Corporation’s role as concessionaire is to establish and monitor service standards, safety and security levels and operating efficiencies. The White Paper on National Transport Policy will lead to far-reaching changes in the way commuter rail services are structured in future. According to the White Paper, public and private operators will in future be able to bid competitively for the right to operate a rail line, a service or a network concession. This has meant a change in the mission of the SARCC to one that ensures the ‘provision of effective, efficient and sustainable rail commuter services under concessioning agreements’. Metrorail Metrorail, a business unit of Transnet, is tasked with the operation of SARCC assets to provide an efficient commuter service. Metrorail only services urban areas. It operates in the Witwatersrand area, Pretoria, the Western Cape, Durban, Port Elizabeth and East London. It is currently operating on a negotiated agreement with the SARCC for a duration of four years. The new agreement came into effect in April 2000. A tender process to privatize commuter rail will commence in 2003. The Government, through the SARCC, is developing a blue print. Metrorail is in the process of restructuring itself in line with the Government’s call for a reduced subsidy and privatization of commuter rail. The focus over the next few years will be on operating the system on sound business principles and becoming more effective through focusing on commuter needs. However, the company faces huge challenges such as age and the rapid deterioration of the rail infrastructure. Since January 1998, Metrorail has been supporting the Department of Transport’s Arrive Alive campaign by launching its own rail safety campaign.  In November 1999, Metrorail launched an additional passenger-safety campaign aimed specifically at children. The emphasis is largely on educating commuters about the dangers of crossing railway lines and riding between coaches and on the outside of instead of inside trains. Intersite Faced with managing a property portfolio of more than 373 stations worth some R2 billion, the SARCC formed a property management company in 1992, called Intersite Property Management Services, to perform this task on its behalf. Intersite aims to develop railway stations into transport nodes that link taxi, bus and rail services in an integrated public transport system. Money earned from the commercial aspects of Intersite’s developments is ploughed back to reduce the subsidy provided by the Government.   Operations Metrorail is responsible for some 19% of all public transport in South Africa, which amounts to transporting approximately two million people to and from work daily. It serves 473 stations with 2 400 train services. Operating assets to the value of R69 million are managed on behalf of the State. Metrorail has set aside R2,8 billion to upgrade its coaches over the next 15 years. These include mobile ticket-selling points, customer care programs for all front-line staff, station upgrades and a zone fare structure. In June 1999, Metrorail did away with first and third class travel, replacing them with Metroplus and Metro respectively. In 1999, the Black Management Forum voted Metrorail the most progressive company of the year.    Civil aviation South Africa’s aviation policy is being reviewed to move away from protection, introducing greater openness and competition. South Africa is party to the Yamoussoukro Declaration, which provides for the opening up of the African skies over the next few years.    Airports The Cabinet approved the Green Paper on National Policy on Airports and Airspace Management in February 1998. The document lays down principles for the development of airports and also calls for the sustainability of public-owned airports to be assessed and for action to be taken where necessary. The Green Paper establishes criteria, ranging from economic activity to the implementation of air traffic control, that should be used to determine which airports could be named as possible international airports. Civil aviation is controlled by the SACAA. Airport and air traffic and navigation services were commercialized in 1993. International airports are those airports where the necessary facilities and services exist to accommodate international flights. They vary from small airports used for cross-border flights to and from neighboring countries, to larger airports for flights to and from other African countries, to large airports for intercontinental flights. At present, there are over 30 such designated international airports in South Africa, but the intention is to reduce this number to eight in order to control imports and exports better and to combat criminal activities. Gateway airports are those designated by the Department of Transport to handle scheduled international flights. Currently, there are three such airports, namely Cape Town, Johannesburg and Durban. ACSA owns and has responsibility for the planning, construction and operation of the nine previously State-operated airports. The assets and operations of these airports were transferred to the Airports Company in 1993.  The airports are Johannesburg, Cape Town and Durban international airports and the airports at Kimberley, Port Elizabeth, Bloemfontein, George, East London and Upington. These airports serve about 15 million passengers every year. The Air Traffic and Navigational Services Company is responsible for air traffic control. In the interest of safety, routine daily runway inspections are carried out at all ACSA’s airports. A joint operations center at Johannesburg International Airport is the nerve center of all airport communications and operations. From here, all activities related to maintenance and building management are coordinated. The center serves as a control office, crisis control center for emergencies and information technology center. The Airports Company is undertaking major capital developments totaling R1,7 billion at the Johannesburg, Cape Town and Durban international airports. Half this sum is allocated for Johannesburg International Airport, the busiest in Africa. In September 1999, the United Kingdom-based Transport Research Laboratories ranked Johannesburg International the most profitable in the world, followed by Cape Town International. The Airport at Johannesburg is expected to deal with 18 million passengers a year by 2005. The first two phases of the upgrading of the international section of the Airport cost R259 million and were completed in April 1999. President Thabo Mbeki officially opened the new international terminal on 27 August 1999. A new state-of-the-art parkade was opened in October. The electronically-linked facility, costing R170 million, can accommodate  8 000 cars. An important feature of the parkade is a specially managed, controlled area for the physically disabled. The first phase of a world-class duty-free retail mall in the international departure hall was launched in November 1999. In a bid to further secure a safe airspace over Africa, the Department of Transport in collaboration with the CAA, for the first time presented a flight safety seminar in South Africa in February 1999. The course, which was previously only presented abroad, was organized under the auspices of the Convention for International Civil Aviation and was attended by 120 aviation representatives. Construction of a new domestic terminal at a cost of R350 million is expected to be completed by 2003. Cape Town International Airport is to spend about R2,8 billion on developments over the next five years. A new baggage scanning system capable of detecting hazardous chemical compounds has been installed at the Airport. It is part of a R27-million baggage security upgrade at the country’s three international airports. The Government had prescribed that such scanners be installed at all the international airports. ACSA is to spend R20 million on the runway at the Pilanesberg Airport in North-West to cater for larger aircraft.    Major airlines SAA, Comair, SA Express and SA Airlink operate scheduled international air services within Africa and to Europe, Latin America and the Middle and Far East. Thirteen independent operators provide internal flights, which link up with the internal network of SAA, Comair and SA Express. The largest airline in Africa, SAA serves 503 cities alone or with a partner. A record number of top global airlines have entrusted highly complex maintenance tasks to SAA. It performs third-party work on 47 major airlines, including Swissair, British Airways, Lufthansa, Air France, Austrian Airlines, Cathay Pacific and Quantas Airways. Air services are also provided by Aero Zambia, Aeroflot, Arolineas Argentinas, Air Afrique, Air Austral, Air Botswana, Air France, Air Gabon, Air Madagascar, Air Malawi, Air Mauritius, Air Namibia, Air Seychelles, Air Tanzania, Air Zimbabwe, Airlink, Alitalia, American Airlines, Austrian Airlines, Balkan, British Airways, Cameroon Airways, Care Airlines, Cathay Pacific, Commercial Airways, Egyptair, El Al, Emirates, Ethiopian Airlines, Ghana Airways, Gulf Air, Iberia, Kenya Airways, LAM, Lesotho Airways, LTU, Lufthansa, Malaysia Airlines, Martin Air, Metavia Airlines, Northwest Airlines, Olympic Airways, Quantas, Royal Air Maroc, Royal Swazi Airways, Sabena, SAS, Singapore Airlines, Swissair, TAAG, TAP, Uganda Airlines, United and Virgin Atlantic.    Ports By far the largest, best-equipped and most efficient network of ports on the African continent, South Africa’s seven commercial ports have a significant role to play. They are not only conduits for the imports and exports of South Africa and neighboring countries, but also serve as hubs for traffic emanating from and destined for the East and West African coasts. Portnet, a division of Transnet Limited, is the largest port authority in greater southern Africa, controlling seven of the 16 biggest ports in this region. These are Richards Bay, Durban, East London, Port Elizabeth, Mossel Bay, Cape Town and Saldanha. First-class facilities and services at reasonable tariffs are comprehensive and include navigational aids along the coast. There are 45 lighthouses, 29 of which are automatic. Portnet offers all port services, except for stevedoring and cartage of break bulk cargo at Durban. The services provided include pilotage, tugs, berthing, shore labor for shipping and discharging, tally clerks and checkers. All large tugs are fitted with salvage and fire-fighting equipment. Portnet also operates port grain elevators at Durban and East London. In May 1998, Portnet embarked on a transformation program to put South African ports on a fast track to operational efficiency and commercial competitiveness. The main aim of the transformation process is to instill greater focus, which will enhance the operational efficiency and economic viability of specifically the port operations. In July 1999, Transnet announced the upgrading of operations, support and business services at Portnet. Several terminals were expanded and modernized as new boats, navigation systems and docks were being commissioned. The program followed the decision to separate the port operations and port authority functions of the parastatal. This forms part of a big reform initiative that is likely to include concessioning certain port activities to the private sector. The ports of Durban, Port Elizabeth and Cape Town provide large container terminals for deep-sea and coastal container traffic. East London has a small terminal to handle conventional and coaster feeder vessels carrying containers. Durban is Africa’s busiest port and the largest conduit for containerized cargo in southern Africa. It is responsible for more than 70% of South Africa’s containerized traffic, with the daily handling capacity of 3 500 containers. The bay covers an area of 893 ha and the port entrance channel is 12,8 m deep at low-water ordinary springtide. Quayage available for commercial shipping is 15 196 m. Durban can accommodate deep ro-ro vessels and has five deep-sea and two container berths, as well as repair facilities. Privately-owned bulk storage and handling facilities for various products are provided in the port. The Ben Schoeman Dock in Cape Town has a water area of 112,7 ha with five berths for container handling as well as a pier for coastal ro-ro traffic. The Dock has comprehensive ship-repair facilities. The bulk of South Africa’s fruit exports is handled here. Port Elizabeth has an enclosed water area of about 115 ha, and more than 3 400 m of quayage alongside for commercial shipping with depths of up to 12,2 m at chart datum. In addition, anchorage is available for vessels of any draught in a partly sheltered roadstead. East London, the only river port in South Africa, has nearly 2 600 m of commercial quayage with low-water depths alongside varying from 8,5 m to 10,7 m. Tankers with an overall length of 204,2 m and a maximum loaded draught of 9,9 m can be accommodated at the tanker berth, which is 259 m long. Saldanha, 110 km north-west of Cape Town, is in water mass the largest harbor facility on the South African coast. It was developed primarily for the export of high-grade iron ore from Sishen in the Northern Cape. A railway line of 861 km was built from Sishen to the ore terminal. Saldanha Bay is the largest port on the west coast of Africa. The port area, nearly 5 200 ha, is about four times larger than the combined areas of the ports of Durban, Cape Town, Port Elizabeth and East London. It is one of the best natural ports in the world and the only breakwater, which had to be constructed, was a 1 700-m spending beach type. Anchorage is provided in the lee of the breakwater, where the minimum water depth is 14,6 m at chart datum. Other facilities include a general-purpose quay with a depth alongside of 12 m at chart datum, a tug port and many navigational aids. Richards Bay Port was developed primarily to handle bulk cargoes such as bituminous coal and anthracite. This deepwater port, 193 km north of Durban, is the biggest port in South Africa and the world’s largest bulk-coal terminal. It handles 53% of the country’s total tonnage of cargo.    Pipelines Petronet owns, maintains and operates a network of 3 000 km of high-pressure petroleum and gas pipelines. During the 1998/99 financial year, Petronet transported 16 billion l of fuel from coastal and inland refineries to the main business centers in Gauteng and surrounding areas, and some 200 million m3 of gas from Secunda to KwaZulu-Natal. Petronet’s customers are the major oil companies in South Africa.    Maritime affairs Maritime administration, legislation and shipping South Africa’s maritime administration and legislation is the responsibility of the Department of Transport and is controlled on its behalf by SAMSA in terms of the South African Maritime Safety Authority Act, 1998 (Act 5 of 1998). The broad aim of SAMSA is to maintain the safety of life and property at sea within South Africa’s area of maritime jurisdiction and to ensure the prevention of sea pollution by oil and other substances emanating from ships. The Department of Environmental Affairs and Tourism is responsible for the combating of pollution and has specific means at its disposal such as the Kuswag vessels with which to perform this function. The Authority is responsible for the introduction and maintenance of international standards set by the International Maritime Organization (IMO) in London, with respect to ship construction maritime training and training curricula watch-keeping certification of seafarers manning and operation of local and foreign ships maritime search and rescue marine communication and radio navigation aids pollution prevention. SAMSA has an operations unit, a policy unit and a corporate support division to handle all financial, human resources and information technology issues. Other functions include the registration of ships,  the establishment of a coastal patrol service and the management of marine casualties and wrecks. The South African Ships Registration Office will be established in 2000 in accordance with the Ship Registration Act, 1998 (Act 58 of 1998). The South African Marine Corporation (Safmarine), Unicorn Lines and Griffin Shipping are South Africa’s predominant shipping lines. Their fleets of container, oil tanker, general cargo and bulk cargo vessels not only operate between South African ports, but also as cross-traders to other parts of the world.    Training The South African Merchant Navy Academy, ‘General Botha’, established at Granger Bay, is integrated into the Cape Technikon, with a similar training facility at the Natal Technikon. Deck and engineering students and officers complete their academic training at the Cape and Natal technikons, while lower classes of certificates are offered at the Training Center for Seamen, situated in the Duncan Dock area in Cape Town. This training institution also caters for deck, engine-room and catering department ratings. SAMSA is responsible for setting all standards of training certification and watch-keeping on behalf of the Department of Transport, while the Maritime Education and Training Board is responsible for the accreditation of all maritime courses. There are other maritime training organizations, offering a wide range of courses, that have been developed within the South African maritime industry and Portnet and are situated mainly in the ports of Cape Town and Durban and to a lesser degree in Port Elizabeth.    Search and rescue services The South African Search and Rescue Organization (SASAR) comprises the executive committee, chaired by the head of the South African Search and Rescue Services, the Maritime Subcommittee and the Aeronautical Subcommittee. Its main function is to search for, assist and, if necessary, rescue survivors of aircraft accidents or forced landings, vessels in distress and survivors of accidents at sea.  It is also charged with coordinating the various government departments, voluntary organizations, private aircraft and shipping companies in the field of search and rescue and with formulating policy and procedures. SASAR’s area of responsibility corresponds with that laid down by both the International Civil Aviation Organization and the IMO. The Department of Transport, South African National Defense Force, Telkom, Portnet, SAA, South African Police Service, Department of Communications, Safair Freighters (Pty) Ltd and National Sea Rescue Institute are members of SASAR and contribute services and/or facilities for use by SASAR.     Last Revised: Tuesday, October 09, 2007