Importance and Short-comings of Transport in Society

Presented

Dr Meshack Khosa
6 March 2008 National Public Consultation Workshop on Prioritising the Thematic Areas in the Transport R&D Strategy

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On the Move – Keep Clear!

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South African Outlook
• 5% economic growth rate over the past 5 years (projected to 4% in the next 2 years) • Unemployment probably lowest in a decade at 25.5 % • Total annual turnover for all South African industries increased from R 3.0 trillion in 2005 to R3.4 trillion in 2006 (15.1%). • The largest percentage increase (23,3%) was reported in mining and quarrying, followed by construction (+23,2%), trade (+17,8%),
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Social and Political Landscape
• Census 2011 & Local government elections in 2011 • 4th National General Elections in 2009 and landmark 20 year celebration of democracy in 2014 • Increasing inequality in terms of incomes, assets and resources • Real or perceived increase in crime • Scarcity of particular skills resulting in lack of infrastructure delivery • Eskom’s capacity to deliver energy
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National Transport Context
• South Africa has a well-developed and extensive transport industry which is important to the economy of the country and region. • There is a well-developed rail system; several major container terminals; a reasonably welldeveloped national road network; many airports and a number of busy ports.
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Economic Spin-off of 2010 FIFA World Cup South Africa™ • R450 billion infrastructure expenditure (2004 2010) • R 30 billion will flow into South Africa, spurring economic growth to between 4 & 5 % • 790,000 people need to be trained for 2010

Fifa World Cup South Africa™

• 500,000 visitors to South Africa who will contribute at least R10 billion to the economy. • Estimated that 159,000 jobs will be created. • Shortage of 25,000 beds for accommodation
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The Intermodal Challenge in South Africa

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Transport & Communications Sector
• Value added by the transport and communication sector increased by 5.3 per cent in 2007 compared to 2006. • Robust investment and sustained demand for logistics, storage and distribution services have underpinned the sector’s consistent performance, with annual growth ranging between 4 and 6 per cent since 2003. • Transnet spent about R11.7 billion on its capital expenditure programme in 2007 (Budget Statement, 2008)
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Critical Transport Challenges
• A vibrant transport sector is a critical pillar of South Africa's economic growth and development. • The transport sector challenges:

– Until recently Infrastructure expenditure has not historically kept pace with the rate of economic growth, particularly for our exporting industries – Transport Operating models in a number of critical entities (rail, ports etc.) are behind international best practice and exacerbate the lack of investment – Safety - particularly road and rail – is a weak link that creates its own significant economic costs – Limited capacity skills shortage - in the transport sector – Capacity to execute and project manage large scale transport projects
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The Centrality of Transport in our lives

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Contradictions of Transport in South Africa • The role of transport in SA is to enable economic integration, re-distribution and sustainable social development. • Currently the transport system is seen as inhibiting growth in the economy • South Africa is characterised by two economies – one developed and one developing
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Public Transport Facts and Figures (Source NDoT, 2007)
• • About 74% of SA households do not have access to a car High Public transport costs - 18% of all South African households spend more that 20% of their income on public transport and 31% of households spend more than 10%. Transport costs Government as well, with a combined R5 billion going to bus and rail subsidies per annum to serve an estimated total of 2 million daily commuters. Access to Public Transport at a national level is uneven. 76% of all households in SA lack access to a train, 38% lack access to a bus and 8% to a taxi. Minibus taxis carry 64% of the 3.8 million public transport worker travellers and are dominant in all areas. Subsidised train services are fairly significant in metropolitan areas (24% of public transport commuters) and the subsidised bus mode features strongly in rural areas (42.5% of public transport commuters).
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Public Transport: Gender & Disability

• Physical access to transport is a key constraint, especially for disabled men and women travelling with children • Lack of safety, particularly at night is of concern to women • The cost of using transport • The timing and routes of public transport services • The overall lack of consultation with women regarding travel patterns
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Inequality and the transport challenge
• Expenditure on housing, transport and food continues to dominate household consumption in the South African economy (close to 60% of the total). • While 10% of the population continues to earn more that 50% of household income in the country, the poorest 40% of the population accounts for less than 7% of household income, with the poorest 20% accounting for less than 1,5% of income (Income & Expenditure Survey, StatsSA, 2008)
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We have land & animal powered technology
“There is no load-shedding in our village”

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Flying High: Transport is freedom

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What is common among donkeys, horses, buses and taxis?

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State’s Response to Transport Challenges
• Transformational /progressive Transport strategy, policy and project interventions • Establishment of Integrated Transport Plan • Creation of new transport institutional arrangements to foster effective coordination and delivery • Dramatic increase of funding for transport infrastructure in the past 3 years • Initiation of public private partnerships with varying degree of success • Establishment of centres of excellence with tertiary institutions
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Economy, Social, Family & Bonding

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All in One: Walk, Bus, Taxi, Bicycle & Trade

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Leisure Travel & Rural Livelihoods

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Promotion of Public Transport is key to Sustainability

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The Past, Present & The Future

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Sea Travel Throughout the Centuries

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The African Inter-modal solution or just survival?

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State we want to be “In”
• Transport affects us all, the way we lead our lives, and our quality of life. • Vehicle ownership has increased dramatically over the past 2 decades especially among the middle to high income levels • The price we pay is in higher levels of congestion and pollution and real concerns about the future sustainability of our lifestyles. • There is a need for change in the quality of transport provision in the South Africa, with reduced congestion and better quality and more reliable public transport.
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Fresh Approach to Transport Innovation
• Why is there a gap between policy & implementation? • How can strategies R policies be effectively for implemented • How can we expand and Build Capacity in the transport sector (analytical, technical, and managerial) • How can Inter-sectoral collaboration foster better planning & implementation • How to galvanise innovative Funding instruments in the transport sector • How to harness the power of Public Private Partnerships • Developing a Relevant Research Agenda which meets the challenge of our time • How can the participation of women & HDIs be fostered tgrough the Transport Charters / sub charters

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Revisiting the Transport Sector
• Acceleration of Investment and upgrade of transport system • Building robust partnerships between private and public sectors • Re-inserting critical research agenda to meet the current and future transport needs • Expanding expertise in the transport sector (analytical, technical, and managerial) • Fresh programme to ensure successful expansion of the coverage of the public transport, walking and cycling network • Establishing Effective Monitoring and Evaluation Systems
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Workshop Themes
• Optimisation of resources and the promotion of efficiencies within the transport sector • Safety in the transport sector • Investments in transport infrastructure • The role of rail and road within the transport industry • The role and importance of civil aviation in the transport industry • The role of parts in international trade and economic development • Environmental Sustainability of transport • Drivers of the transport sector • Capacity Development • Economic Analysis • Promoting the gender equity in the transport industry

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• “Those who give milk and demand a cow will survive for a day. Those who give a cow and live off the milk will create a legacy and feed generations to come” Fresh Thinking Wisdom

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Is it the Burden of Transport or Transport Burden?

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Contact Details
FRESH THINKING CAPITAL (PTY) LTD Registration: 2006/034661/07 VAT: 4140235641 Dr Meshack Khosa Chief Executive Officer 396 Florida Road Faerie Glen Pretoria East 0043 South Africa Cell: 083-212-7840 Tel: +27 (0) 12-991-4490 Fax: 086-610-7174 meshack@freshthinking.co.za www.sharppencil.co.za “Sharp Ideas through Fresh Eyes”
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