Blog

Four of eleven key appointments in roads and transport positions after the recent national and provincial elections are new, confirming the trend of continuity and change set in both national and provincial executives.

Top of the list is Mr Fikile Mbalula, who takes over as Minister of Transport from Dr Blade Nzimande. Dr Nzimande returns to his former portfolio of Higher Education which has now merged with Science and Technology.

Mr Mbalula came to politics via the United Democratic Front and the ANC Youth League, of which he was president. He was previously the Minister of Sport and Recreation and later of Police. He headed the ANC’s 2019 election campaign.

His deputy – Ms Dikeledi Magadzi – was previously the chairperson of the parliamentary portfolio committee on transport. She hails from Limpopo where she served as MEC in several portfolios.

Also new is Gauteng’s Mr Jacob Mamabolo, who heads the renamed Department of Public Transport and Roads Infrastructure. He was previously the MEC of Infrastructure Development.

The last of the new appointees is the MEC for Transport and Safety Liaison, Ms Nontobeko Vilakazi, in the Northern Cape. She comes from the provincial ANC Women’s League where she was secretary.

Heading the list of experienced hands, is North West’s MEC for Public Works and Transport, Mr Gaoage Molapisi. Premier Job Mokgoro and his administration has built a close working relationship with SANRAL in recent months.

In the Western Cape the go-to-man is Mr Bonginkosi Madikizela, MEC for Transport and Public Works. He also leads the DA in this province and has served on the Western Cape executive since 2009.

Ms Wesiwe Tikana was re-appointed as the Eastern Cape’s MEC for Transport, Roads and Community Safety. She will be working in an environment where the approach is to turn the province into a massive construction site.

Back in the job in Mpumalanga is Mr Gillion Mashego as MEC for Transport, Roads and Community Safety. His view is that road infrastructure is a critical part of growing the economy, creating jobs and opportunities for businesses.

In a much-changed executive in Limpopo, Ms Sekutu Mochadi, was one of the few who was retained as MEC for Public Works, Roads and Infrastructure. She is full of praise for the sterling work SANRAL is doing in the province.

In the Free State Mr Sam Mashinini was kept on as MEC for Police, Roads and Transport. He also heads the ANC in the province and points out that as a landlocked entity a high-class network of roads is essential.

Retained as MEC for Transport in KwaZulu-Natal is Mr Mxolisi Kaunda whose intent is on building quality roads and highways across the province to stimulate economic growth.

The N2 Wild Coast Road (N2WCR) project is going ahead. The North Gauteng High Court denied an appeal against a decision that had confirmed SANRAL’s commitment to proceed with the construction. Judge Cynthia Pretorius found in the road’s agency’s favour and confirmed the validity of the public participation processes during the environmental assessment.

This enabled the public to engage with the assessment through a range of platforms, including public meetings, imbizos and social media. Judge Pretorius had high praise for the level of engagement, calling it “one of the most comprehensive participation processes undertaken in this country”.

SANRAL recognises that there are a minority of people who are opposed to the project – mostly because of unconfirmed reports about an unconnected mining project. Yet there is overwhelming support for the benefits that N2WCR will bring to communities and local businesses.

According to a survey by the Human Sciences Research Council in 2015 more than 98% of residents interviewed supported the building of the new road between Lusikisiki and Port Edward.

None of the local protests were aimed at the project itself. There were issues concerning the composition of the public liaison committees, employment, sub-contracting and local suppliers. These are being resolved with stakeholders.

The High Court confirmed that the approved route was the best available alternative based on a combination of social, environmental and economic factors. In line with international best practice all the identified potential impacts are avoided, minimised or mitigated.

SANRAL is working closely with relevant agencies in the Eastern Cape to protect sensitive environmental areas. In addition, the social impact of the road is minimised through the construction of pedestrian and vehicle bridges as well as underpasses that will improve access and mobility for local communities.

Affected communities and individuals are compensated for any loss of land and all structures within the road reserve are relocated and rebuilt in line with approval of the owners.

The N2WCR forms part of government’s Strategic Integrated Projects – SIP3 – which is designed to accelerate economic growth in the Eastern Cape and KwaZulu-Natal.

The much shorter N2 route will shorten travel time, reduce carbons emissions and improve road safety on one of the most important national highways. It will provide improved access to the under-developed Pondoland region and boost economic opportunities in agriculture, tourism and the hospitality industry.

What can the country afford and what does it need?

This was one of the main topics at the Transport Forum’s series of discussions held between December 2018 and April this year. Difficult choices on funding lie ahead.

The forum is a platform for all transport stakeholders to meet, mingle and discuss major sector issues. Attendees come from government, civil society, academia and the private sector to discuss policy, technology and regulation.

At a recent meeting on road funding, SANRAL Engineering Executive Louw Kannemeyer said the estimated funding requirement to sustain the road network is R86bn a year. An additional R23.3bn is needed to catch up on the backlog, making the total annual requirement R110bn a year while the total budget for roads in 2017/18 was only R52bn.

He doubted that the fuel levy is a way out. To meet the funding shortfall, the levy would have to go up from R3.37 per litre to R6.21.

The rise of hybrid and electric vehicles will also influence revenue collection through the fuel levy.

Globally, the fuel price in South Africa is ranked 19th. But households spend almost 7% of their daily wages on fuel, which pushes the country down to 56th on the Bloomberg Fuel Price Index’s affordability ranking.

Kannemeyer said South Africa has to decide what length of road network it can sustain and in what condition.

Various experts added their voices:

• Gavin Kelley, acting CEO of the Road Freight Association, predicted the fuel levy is going to decrease dramatically. “The funds from the fuel levy need to be ring-fenced for roads.”
• Economist Mike Schüssler said the reality is that the fuel tax in itself is not enough for roads.
• Dr Paul Nordengen, manager of network asset management at the Council for Scientific and Industrial Research, said that road funding is critical for future development, but the fuel tax is unlikely to exist in future.
• Prof Stephan Krygsman of the Department of Transport Economics at Stellenbosch University said: “We should pay for roads. The question is how much and how to do it.”
• Whity Maphakela, acting chief director of road infrastructure at the Department of Transport, said new revenue sources would have to be found to fund future road development. The government supports the user-pay principle as a primary funding mechanism. There are serious implications if roads aren’t maintained. Delaying maintenance by up to five years can increase costs by up to 18-fold. And warned: the road user carries the cost of poor roads – an additional R20bn a year due to failures in the current road network.

SANRAL has taken one more step to transform the construction industry. In April it signed a memorandum of understanding (MoU) with Pilot Crushtec to give small and medium enterprises access to expertise and machinery required to execute major SANRAL projects.

The CEO of the roads agency, Mr Skhumbuzo Macozoma, said: “It is our intention, through MoUs like these, to open up the industry to new participants and remove many of the barriers that prevent companies owned by black people, women and youth entrepreneurs to compete effectively against entrenched players in the construction sector”.

Pilot Crushtec International was founded in 1990 and has established itself as Southern Africa’s leading supplier of mobile and semi-mobile crushing, screening, recycling, sand wasting, stockpiling, compacting and material handling solutions.

The company is well-placed to equip up-and-coming contractors and quarry owners with the opportunity to be educated by its team of experts on how to get the most out of their operations, said sales and marketing director Francois Marais. It looks forward to promoting its locally produced products, which are world leaders and are exported to many countries.

Mr Macozoma said that the partnership is proof that SANRAL’s efforts to transform the construction sector and promote fair competition are delivering results. “Lack of access to sophisticated machinery and equipment is a major barrier to small contractors and prevents them from participation in large tenders.

“By working with established companies, we can remove these barriers.”