The Strategic Plan 2015 2020 and Annual Performance

The Strategic Plan 2015 -2020 and Annual Performance Plan 2015 -16 of the CBRTA Presentation prepared for the Portfolio Committee on Transport By Ms P. Pokane, Chairperson of the Board, C-BRTA Mr S. Khumalo, Chief Executive Officer, C-BRTA 14 April 2015

Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Mandates of the C-BRTA Core functions C-BRTA Organogram C-BRTA Strategic Thrusts Presidential Priorities Key Government Policies and Priorities C-BRTA Strategy Risks to the Strategy Finances

Ø . MANDATES OF THE C-BRTA Improve unimpeded flow of freight and passengers Empower cross border road transport industry Introduce regulated competition Legislated Mandate Enhance and strengthen public sector capacity Reduce operational constraints Liberalise Market access

CORE FUNCTIONAL AREAS Advisory Monitoring and counteracting any restrictive measures that may be implemented by other member states in the SADC region and advising the Minister of Transport on regional transport imperatives and challenges Facilitation Developing partnerships with SADC counterparts and fostering positive relationships aimed improving transport facilitation and development of trade among SADC countries Law Enforcement Monitors the carriers adherence to the law by carrying inspections Regulatory Responsible for the issuing and managing processes pertaining to cross border permits

Ø . ORGANOGRAM

C-BRTA STRATEGIC THRUST NATIONAL DEVELOPMENT PLAN STATE OF THE NATION ADRESS PRESIDENTIAL INAUGURAL ADRESS MEDIUM TERM STRATEGIC FRAMEWORK C-BRT ACT SADC PROTOCOL BILATERAL AGREEMENTS NRTA NLTA. MINISTER’S DELIVERY AGREEMENT WITH THE PRESIDENT

PRESIDENT’s 9 Point Plan • Resolving the energy challenge • Revitalising agriculture and agro-processing value chain • Advancing beneficiation or adding value to our mineral wealth • More effective implementation a higher impact Industrial Policy Action Plan • Encouraging private sector investment

PRESIDENT’s 9 Point Plan • Moderating workplace conflict • Unlocking the potential of SMMEs, cooperatives, township and rural enterprises • State reform and boosting the role of state owned companies • Operation Phakisa aimed growing the ocean economy

OTHER KEY PRIORITIES MINISTER’S DELIVERY AGREEMENT NATIONAL DEVELOPMENT PLAN • DECENT EMPLOYMENT • EFFICIENT, COMPETITIVE AND RESPONSIVE INFRASTRUCTURE • RURAL DEVELOPMENT • PROTECT AND ENHANCE OUR ENVIRONMENTAL ASSETS • IMPLEMENTATION OF A FOCUS REGIONAL INTEGRATION STRATEGY • CAPACITY BUILDING OF STATE OWNED ENTERPRISES • CAPACITY BUILDING OF STAFF AT ALL LEVELS

THE STRATEGY WINDOW Where are we? 2014/15 How will we get there? Where do we want to go? 2015 - 2020 Substantive value add Operational viability CBRTA Strategy Building the foundation and capacitating the Agency Financial viability Legitimacy and political sustainability Operator Centricity Preferred employer Scenarios of the Future Present Time + 3 years

. OPERATING ENVIRONMENT • • Heightened demand for customer centricity Subdued economic growth Fragile global economic recovery Businesses not investing long term growth

Ø . RATIONALE FOR THE STRATEGY • Profound need to keep the wheels of operators turning • Need to improve operator value • Need to broaden Agency’s revenue base • Need for integrated regulatory framework • Regional integration

KEY STRATEGY PILLARS • CROSS BORDER CORRIDOR VALUE CHAIN FOCUS • BEYOND THE BORDER FOCUS • SADC COUNTRY STRATEGIES AND PROFILING • JC’S AND JRMG IMPACT • REVIEW OF THE FUNDING MODEL • OPERATOR VALUE ADD INTERVENTIONS • IMPACT DRIVEN OPERATOR FORUMS • REGULATORY SERVICES • ELEVATION OF THE ROLE OF PROFILING • VEHICLE EXAMINATION • GOVERNMENT WIDE IPDP

Proposed New Initiatives… • Reciprocity • Integrated Regulatory Framework • Levying of cross-border charges • The Beitbridge Border Modernization Initiative (BBMI) • Annual State of Cross-Border Operations Report (ASCBOR)

REGULATORY SERVICES (1) Strategic objective: (1) To introduce and implement regulated competition of cross border movements Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Implemented scientific tool used by the Regulatory Committee Piloted and implemented the scientific tool on 3 main corridors Impact assessment of the scientific tool on the cross border routes Piloted and fully implemented scientific tool - - Developed integrated regulatory framework to reduce passenger transport conflict Board Approved Business Case on Integrated Regulatory framework - -

REGULATORY SERVICES (2) Strategic objective (2) To promote efficiencies in permit issuing to reduce the cost of doing business for operators Key Performance Indicators 2015/16 Targets Percentage of temporary permits issued from front and remoteoffice within predetermined turnaround times 90% Issued front office permits within 1 working days 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets 90% Issued front office permits within 6 hours 90% Issued front office permits within 4 hours 90% Issued front office permits within 3 hours 90% Issued 90% Issued remote office remote office permits permits within 1 within 3 within 2 working days working days

REGULATORY SERVICES (3) Strategic objective: (3) To improve compliance with road transport legislation Key Performance Indicators Developed and Implemented Operator Compliance Accreditation Scheme (OCAS) 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Consultation with key stakeholders Development of OCAS ICT system Draft Regulations Exco approved revised feasibility report Exco signed off test report of OCAS ICT system Piloting of OCAS system and impact assessment report Implementation of the OCAS system Exco approved revised ICT terms of reference for appointment of system developer Pilot implementation plan signed off by Exco

ROAD TRANSPORT INSPECTORATE (1) Strategic Objective: (3) To improve compliance with road transport legislation Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Developed and operationalised smart law enforcement strategy Exco Approved smart law enforceme nt strategy Implement 1 electronic tool and generate intelligence in three (3) regions Roll out the electronic tool and generate intelligence in 2 regions Implemented technology and intelligence driven law enforcement in all regions Piloted smart law enforceme nt tool Acquisition of staff and physical equipment Review and refine the implemented electronic tool

ROAD TRANSPORT INSPECTORATE (2) Strategic Objective: (3) To improve compliance with road transport legislation Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Permanent deployment of Inspectors within 2 km proximity from major borders 4 Borders Deployed inspectors to 1 Border (Skilpadshek) Deployed inspectors to 1 Border (Kopfontein) Deployed inspectors to 1 Border (Golela) Deployed inspectors to 1 Border (Phafuri)

ROAD TRANSPORT INSPECTORATE (3) Strategic Objective: (3) To improve compliance with road transport legislation Key Performance Indicators 2015/16 Targets Percentage increase in number of inspections conducted Number of Key finding reports on inspection and prosecutions as approved by Exco 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets 5% increase in the number of inspections conducted 10% increase in the number of inspections conducted 12% increase in the number of inspections conducted 15% increase in the number of inspections conducted Piloted inspection and prosecution findings tool 4 Quarterly reports on key findings from inspections and prosecutions as signed off by Exco

FACILITATION AND INDUSTRY DEVELOPMENT (1) Strategic Objective: (4) To establish and sustain strategic partnerships with stakeholders so as to enable the Agency to achieve its objectives Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Percentage of operator constraints addressed or escalated and consistently followed-through as recorded in the constraints register 65% resolution of operator constraints, demonstrated escalation and consistent follow-through of registered constraints beyond CBRTA mandate 70% resolution of operator constraints, demonstrated escalation and consistent follow -through of registered constraints beyond CBRTA mandate 70% resolution of operator constraints, demonstrated escalation and consistent followthrough of registered constraints beyond CBRTA mandate Percentage resolution of passenger transport conflicts registered and resolved within 6 months 65% resolution of passenger transport conflicts registered and resolved within 6 months 70% resolution of passenger transport conflicts registered and resolved within 6 months 75% resolution of passenger transport conflicts registered and resolved within 6 months

FACILITATION AND INDUSTRY DEVELOPMENT (2) Strategic Objective: (4) To establish and sustain strategic partnerships with stakeholders so as to enable the Agency to achieve its objectives Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Number of Industry Partnership Development Plan (IPDP) recommendation s implemented Recommendation 1: Development of primary and secondary stakeholder database Recommendation 2: Development and implementation of a 24 -hour corridor support hotline Recommendation 3: Development and implementation of an online complaints register Recommendation 4: 4 Quarterly stakeholder forum reports - 4 Quarterly stakeholder forum reports

FACILITATION AND INDUSTRY DEVELOPMENT (3) Strategic Objective: (4) To establish and sustain strategic partnerships with stakeholders so as to enable the Agency to achieve its objectives Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets Number of 2 opportunities 3 opportunities created in the created for freight industry women/youth/p eople with disabilities within the cross border freight industry 4 opportunities created in the freight industry 2018/19 Targets 2019/20 Targets 5 opportunities created in the freight industry

FACILITATION AND INDUSTRY DEVELOPMENT (4) Strategic Objective: (4) To establish and sustain strategic partnerships with stakeholders so as to enable the Agency to achieve its objectives Key Performance Indicators Number of empowerment initiatives facilitated 2015/16 Targets 2 initiatives: Facilitate the incubation of the established cooperatives 2 rural community outreach on cross-border opportunities 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets 2 initiatives: 2 rural community outreach on cross-border opportunities

OFFICE OF THE CHIEF EXECUTIVE OFFICER (1) Strategic objective: (5) To proactively provide value added advisory services to the Minister of Transport and other relevant stakeholders on cross border matters in the transport sector Key Performance Indicators Number of Annual State of Cross-border Operations Report (ASCBOR) submitted to the Minister and other relevant stakeholders. 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets 2 ASCBOR reports: 3 ASCBOR reports: 2 Annual State of Cross-Border Operations Report ASCBOR to the Minister 2 ASCBOR to the Minister 1 Annual State of Cross-Border operations report to stakeholders

OFFICE OF THE CHIEF EXECUTIVE OFFICER (2) Strategic objective: (5) To proactively provide value added advisory services to the Minister of Transport and other relevant stakeholders on cross border matters in the transport sector Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Number of country profiles developed or updated 2 country (Zimbabwe and Mozambique) profiles developed 2 updated country profiles (Zimbabwe and Mozambique) 3 updated country profiles (Zimbabwe, Malawi and Mozambique) 1 Country (Malawi) profile developed 3 Country (Lesotho, Swaziland Botswana) profiles developed 6 updated country profiles (Zimbabwe, Malawi , Mozambique, Lesotho, Swaziland Botswana) 2 Country (Zambia and Namibia) profiles developed 8 updated country profiles (Zimbabwe, Malawi , Mozambique, Lesotho, Swaziland , Botswana, Zambia and Namibia) 1 Country (DRC) profile developed

OFFICE OF THE CHIEF EXECUTIVE OFFICER (3) Strategic objective: (6) To promote the C-BRTA’s reputation Key Performance Indicators Percentage achieved on client satisfaction survey conducted on freight and passenger (taxis and buses) operators 2015/16 Targets 65% customer satisfaction achieved 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets 65% customer satisfaction achieved 70% customer satisfaction achieved 85% customer satisfaction achieved

OFFICE OF THE CHIEF EXECUTIVE OFFICER (4) Strategic objective: (7) To position the C-BRTA brand to ensure visibility and awareness Key Performance Indicators Number of initiatives to increase C-BRTA’s visibility 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 5 initiatives: 4 Presented papers at transport conferences Hosted Implement Cross-Border 100% of Conference selected resolutions made at the Conference Host Cross Border Road transport conference Implement 100% of selected resolutions made 2019/20 Targets -

OFFICE OF THE CHIEF EXECUTIVE OFFICER(2) Strategic objective: (1) To introduce and implement regulated competition of cross border movements Key Performance Indicators 2015/16 Targets Developed Business Case on Comprehensive Levying of cross border charges Consultation and Development of a business case on Comprehensive Levying of cross border charges 2016/17 Targets Submit a draft legislative proposal on comprehensive levying of cross border charges 2017/18 Targets - 2018/19 Targets - 2019/20 Targets -

HUMAN RESOURCES Strategic objective: (8) To develop, implement and sustain a high performance culture in the organization Key Performance Indicators 2015/16 Targets Percentage Improvement in organizational culture Conduct survey and obtain 70% satisfaction levels 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets 100% Implementati on of the selected culture change recommendations Conduct survey and obtain 75% satisfaction levels 100% Implement ation of the selected culture change recommendations Conduct survey and obtain 80% satisfaction levels

FINANCE (1) Strategic objective: (9) To ensure the financial viability and sustainability of the C-BRTA Key Performance Indicators 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets Developed financial sustainability strategy/mode l Conducted feasibility study on proposed new revenue streams Revised financial strategy - - Number of revenue streams implemented as per financial sustainability strategy - Implementation of 1 new revenue stream 2019/20 Targets - Implementation of 1 new revenue stream

FINANCE (2) Strategic objective: (9) To ensure the financial viability and sustainability of the C-BRTA Key Performance Indicators Percentage increase in revenue baseline Developed business case on Beitbridge Border modernisation project (BBMI) 2015/16 Targets 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets - Increase revenue baseline by 20% Submission of Board approved business case - -

INFORMATION TECHNOLOGY Strategic objectives: (11) Integration of ICT systems Key Performance Indicators 2015/16 Targets Developed and implemented new permit system Uptime percentage on business critical systems 2016/17 Targets 2017/18 Targets 2018/19 Targets 2019/20 Targets Developed and Piloted new permit system at Head Office Full deployment of permit system at all regions Integration of selected C-BRTA ICT systems - - 97% uptime 99% uptime 100% uptime

GOVERNANCE Strategic objective: (12) Prevent fraud and corruption Key Performance Indicators Number of Implemented fraud and corruption prevention initiatives 2015/16 Targets Developed anticorruption strategy Developed integrity management framework 2016/17 Targets Percentage reduction in the prevalence of reported cases 2017/18 Targets 2018/19 Targets 2019/20 Targets - - -

Ø . RISKS – FINANCIAL VIABILITY ON-GOING LITIGATION • Currently in the Constitutional Court; • Potential financial obligations up to R 356 million; • Of the amount above, R 37 million has been provided; • May render the Agency’s financial position technically insolvent; • Request may be made to National Treasury to assist.

Ø . RISKS – FINANCIAL VIABILITY UNSUSTAINABLE BUSINESS MODEL • Agency currently self funded through permit revenue • Need for alternative funding model; • Adjustment of tariffs more annually; • Containment of costs;

MTEF Revenue Budget: 2015/16 – 2017/18 2015/16 R’ 000 TOTAL REVENUE Permit fees Penalties Interest Other income 2016/17 R’ 000 2017/18 R’ 000 240, 735 299, 776 319, 852 199, 205 208, 170 223, 782 35, 761 36, 477 37, 206 5, 768 6, 200 6, 666 - 48, 930 52, 198

MTEF Operating Exp. Budget Per Division 2015/16 R’ 000 2016/17 R’ 000 2017/18 R’ 000 CURRENT EXPENDITURE Facilitation and Industry Development 19, 190 23, 896 25, 496 Road Transport Inspectorate 83, 545 104, 035 111, 002 Regulatory and Legal Services 25, 785 32, 109 34, 260 COO’s Office 22, 533 28, 060 29, 939 Administration (Governance, CEO’s Office, Human Resources and Finance) 89, 681 111, 676 119, 155 240, 735 299, 776 319, 852 TOTAL CURRENT EXPENDITURE

MTEF Expenditure Budget: 2015/16 – 2017/18 CLASSIFICATION 2015/16 R’ 000 2016/17 R’ 000 2017/18 R’ 000 CURRENT PAYMENTS 240, 735 299, 776 319, 852 Compensation for employees 159, 979 199, 336 210, 908 74, 386 93, 497 102, 204 6, 371 6, 944 6, 740 30, 000 25, 000 28, 500 270, 735 324, 776 348, 352 Goods and Services Depreciation & Amortization Capital Assets Capital Expenditure TOTAL EXPENDITURE

Breakdown of Administration Budget 2015/16 Current Expenditure UNIT Staff Costs R’ 000 Operating Costs R’ 000 Capital Expenditure R’ 000 Finance, Supply Chain Management & Information Technology 22, 484 16, 905 10, 894 Human Resources 8, 391 18, 800 5, 161 Office of the Chief Executive Officer (incl. Corporate Governance, Communications) 12, 050 11, 051 1, 750

Divisional Budget per Classification 2015/16 Strategic Objective Driver Facilitation and Industry Development Road Transport Inspectorate Regulatory and Legal Services COO-PMO, Advisory and Research Administration (Governance, CEO’s Office, Corporate Service and Finance) TOTAL CURRENT EXPENDITURE (i) Establish and sustain strategic partnerships (i) Improve compliance with transport legislation (i) Regulated competition (ii) Efficiencies in permit issuance (i) Provide value added advisory services (i) Performance culture, (ii) Financial viability (iii) Brand visibility (iv) Improved internal control (v) Integrated ICT systems (vi) Fraud and corruption Current Expenditure Capital Expenditure Staff Costs R’ 000 Operatin g Costs R’ 000 12, 514 6, 676 99 67, 328 16, 217 8, 730 18, 391 7, 394 66 18, 821 3, 713 3, 300 42, 925 46, 756 17, 805 159, 979 80, 756 30, 000 R’ 000

i thank you