Tag Archive | minister Dipuo Peters

SANRAL gets more out of transport budget

SANRAL part of much bigger picture…..

roadsPrior to Deputy President Ramaphosa’s defence in the National Assembly of the-tolling system with its decreased tariffs , Minister of Transport, Dipuo Peters, told Parliament earlier in her budget vote speech that her department had a budget of R53.7bn for 2015/16, of which 12.5bn would go to South Africa Roads National Agency (SANRAL) – the total budget of R53.7bn being 6% more than last year’s budget.

Speaking at a media briefing prior to her budget vote, the Minister said that the projects administered by the department of transport (DoT) are run through thirteen different transport entities, to where 96.7% of the budget was appropriated and which included mainly provinces and municipalities.

Taxis moving major bulk of commuters 

dipou petersMinister Peters said, “Taxis remain moving 68% of the country’s 5.4 million passengers on a daily basis and contribute immensely to our economy, the taxi remaining the most important part of the public transport system.” Consequently it was her intention, she said, to review the taxi recapitalisation programme to bring about more affordability.

The Minister further stated that with the increase of vehicle transport on roads, DoT was altering its programme of expansion of the road network, doubling the capital available for the upgrade and expansion of provincial and local roads. In fact, the number of vehicles on South Africa’s roads had increased from 5-million in 1994 to over 11-million in 2014.

Nothing much since 1986

It was to be noted, the minister said, that the R1.1bn Moloto road to the north of Pretoria was a priority in view of the number of fatal accidents. “Hardly any significant new highways have been built since 1986, except for those that were constructed as part of the toll projects,” she said.

The additional funding for SANRAL was in respect of roads being added to the SANRAL network, especially in the provinces, which had to be upgraded if tolling was to be introduced. “All this work cannot be funded from the fiscus alone in the form of increased appropriations”.

Minister Peters said that more goods had to be transported by rail rather than by road and the number of vehicle accidents in the country brought down. “This move will equally unlock more economic potential and job creation. It will also help decrease congestion by road freight and with them transporting so much in the way of dangerous and heavy goods.”

Good money after bad?

Opposition shadow transport minister, Manny de Freitas, in reply, pointed out that SANRAL was well short of the R250m a month it said it needed in its original targeting – in fact he had heard that SANRAL had only reached R120m per month income, probably resulted from an estimated 23% of users resisting or not paying collections, in Gauteng.

He queried, as had the High Court he said, SANRAL’s tolling model and hoped the R12.5bn was not a subsidy to make up for the Gauteng impasse, especially as SANRAL seem determined to toll part of the Winelands route in Western Province.

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Operation Phakisa to develop merchant shipping

Operation Phakisa: SA needs own merchant ships…

mapafrica&saCurrently, the cabinet is focused on Operation Phakisa, or South Africa’s exploitation of its oceanic resources, bearing in mind it has 6,000kms of coastline. In its budget vote presentation to Parliament, the department of transport (DoT) has indicated that it has every intention of not only building a South African maritime fleet but encouraging “Panama type” registration for vessels around the world.

Dramatically announcing that South Africa had to become “a maritime nation”, minister of transport, Dipuo Peters, said that a maritime delivery unit had been established within DoT to support the NDP’s key growth strategy for the development of the oceanic economy, launched earlier by the President in his SONA address as Operation Phakisa.

Focus on shipping world

MSC-Beatrice-PanamaCurrently she said DoT had introduced a new shipping tax regime for international shipping which exempts qualifying ship owners from paying income tax; capital gains tax; dividend tax; and withholding tax on interest for a number of years.

Minister Peters said, “We believe this tax exemption will undoubtedly encourage the South African ship register to be sought-after internationally and we are further engaging national treasury to consider a special tax regime for coastal and regional shipping.”

In June 2012, a department of DoT led by Tsietsi Mokhele of the SA Maritime Safety Authority, called for a policy framework to enable the establishment of both a coastal and a blue-water merchant fleet, following a meeting with the then NA Speaker, Max Sisulu, who had called for more information on where South Africa stood with regard to maritime affairs internationally.

All foreign vessels

Mokhele told Parliament’s transport portfolio committee that about 98 percent of South Africa’s total import and export trade was currently carried by foreign ships and currently South Africa does not have a single own-flagged commercial vessel on its shipping register.

He said at the time, “South Africa has no ships on its register and paid in 2007 about R37bn in maritimeSAFMARINE_CHAMBAL transport services to foreign owners and operators and had approximately 12,000 vessels visiting the country’s eight commercial ports each year”.

In the previous year (2011), 264 million tons of cargo were moved by sea at an estimated cost of R45bn to the country the committee heard and in the BRICS grouping, South Africa stood alone with no vessels, whilst Brazil operated a fleet of 172 merchant vessels, India 534, China 2044 and Russia 1891.

Not self-reliant

“We are almost 100 percent dependent on foreign shipping to get our goods to market, despite South Africa being a maritime country with over 3,000km of coastline and a vast seaward economic exclusion zone”, he said.

Mokhele told parliamentarians that the country’s sea-borne cargo constituted at that time a “significant” 3.5 % of global sea trade. “Yet all the benefits of shipping cost overheads to export destinations in the case of South Africa accrue to the nation from which the ship transport emanates”, he said.  He claimed that all South Africa’s maritime fleet had been “sold off by the apartheid government”.

Infrastructure is there

oil_tankerDuring this year’s budget vote speech, minister Peters said the facts were extraordinary and she confirmed that SA had a massive coastline positioned on sea trading routes with thee world’s largest bulk coal terminal port in Richards Bay; the busiest port in African Africa with the largest container facility in the Southern Africa; the deepest container terminal in Africa; Cape Town had the biggest refrigerated container facility in Africa and Saldhana Bay was the largest port in Africa by water footprint.

She added that South Africa is among the top fifteen countries that trade by sea with 96% of the country’s imports and exports moving by sea transportation yet the country had no merchant fleet of any kind.

Elements to Operation Phakisa

Minister Peters said that Operation Phakisa focused on three areas, namely, offshore oil and gas exploration; aquaculture; and marine protection services and oceans governance, the last named being run by the aforementioned SAMSA whose new maritime safety programme has a specific focus on ship safety inspection programmes which have resulted in “nil” reported ship losses in SA waters.

Working with treasury, minister Peters said that DoT had been able to increase the mortgage ranking for financial institutions supporting the maritime sector – particularly, those that finance actual vessel purchases. Also the Transnet Port Regulator in Durban had brought greater certainty to port regulations with a new framework on which the 2015/16 tariff would be based.

Plans starting

oil rigIt was now proposed to establish a National Ship Register for registration of vessels worldwide; work with the private sector to develop initiatives and support the local ship building, ship repairs and maritime skills development.

On matters of policy and legislative framework and Operation Phakisa generally, minister Peters said that DoT would finalise a national maritime transport policy; a policy towards the cabotage (the illegal hire of transport for passengers or goods between two destinations in the same country) and coastal and international waters law.

Small  beginnings

The budget of R392m had been set aside for all maritime related programmes and projects, the minister said which was approved.

In the meantime, the minister has tabled the Merchant Shipping Amendment Bill which carries out very necessary amendments to the Merchant Shipping Act of 1951 to bring it line with South Africa’s Constitution.

The Amendment Bill also gives effect to the Maritime Labour Convention and the Work in FishingCoega harbour equip Convention both Conventions being adopted by UN’s ILO. International Labour Organisation.”  This aligns domestic legislation to global instruments ensuring global protection to the rights of seafarers and decent working and living conditions thus enabling South Africa to intervene in cases where foreign ships enter SA ports have contravened the rights of seafarers.”

The adoption of this legislation, its promoters say, will improve the operations and image of SA’s emerging maritime industry and is also an imperative in international trade.
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Long Awaited Strategic Fuel Stocks Policy Is Closer

The long term liquid fuels infrastructure framework or plan as a result of a commonly expressed concern at recent fuel shortages in the inland regions of South Africa is closer to completion, said energy minister, Dipuo Peters, in a  reply to a parliamentary question on the subject.

She wrote in her reply that the plan will spell out the quantities of strategic crude oil and refined products stocks that oil companies will have to maintain by regulation and that studies show that additional storage facilities are required as a matter of urgency and should be part of the energy master plan.

Minister Peters said, “In determining the extent of such a requirement, the full capacity and capability of the current and future supply chain and logistics infrastructure needs to be assessed and quantified so that all viable options are weighed and the best options put forward”.

It was problematic, she said, that oil companies are not obliged to hold commercial stocks and that stocks under government control exist in crude form only. This was bearing in mind that her department holds frequent meetings with oil companies and oil companies submitted planned refinery shutdown schedules and “concomitant contingency plans”. Any plans, she said, at the moment had not overcome the shortage of inland fuel stocks.

“Viable solutions were to be found”, she said.

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Gas Act changes closer to implementation

Following the November 2011 LP Gas conference in Johannesburg, the minister of energy , Dipuo Peters, has revealed in a written reply to a parliamentary question that  the energy department is in the process of finalising a liquefied petroleum gas (LPG) strategy in the form of a new Bill to be introduced shortly.

Cabinet’s approval will be shortly sought and the result opened up for public comment, she said.

The minister indicated that she intended to table the bill in Parliament before the end of the current financial year, saying that the review process at the conference in 2011 had enabled her department to study “some of the challenges experienced by current and prospective players in the gas industry, as well as shifts in the industry landscape”.

At the end of the conference, she told the media that a strategy was being drawn up as part of government’s response to challenges of over-dependence on electricity and greenhouse gas emissions and that she wished to encourage low income households to move from paraffin and “biomass” to LP gas, wanting to see1.5 million households using LPG by 2016.

She also told the National Assembly in her responses that clarity had to be sought on issues involving the importation, storage and distribution of both LNG and CNG and that PetroSA and iGas would consider importing LNG.   Dealing with another question, minister Peters confirmed that her department was drawing up a “road map for the energy sector” on energy and climate change, which plan would be implemented in the next financial year.

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