Cross-Border Road Transport Agency CROSS BORDER ROAD TRANSPORT AGENCY (C-BRTA) STRATEGIC AND ANNUAL...
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Transcript of Cross-Border Road Transport Agency CROSS BORDER ROAD TRANSPORT AGENCY (C-BRTA) STRATEGIC AND ANNUAL...
Cross-Border Road Transport Agency
CROSS BORDER ROAD TRANSPORT AGENCY (C-BRTA)
STRATEGIC AND ANNUAL PERFORMANCE PLANS 2014/15
PORTFOLIO COMMITTEE ON TRANSPORT
26TH August 2014by Sipho G. Khumalo
Cross-Border Road Transport AgencyPresentation Outline
1. Strategic Thrust
2. Mandate
3. Vision & Mission
4. Strategic Oriented Goals
5. Financial Performance as at 31 March 2014
5. Progress on Strategic Projects
6. Annual Performance Plan 2014/15
7. Burning Issues and Interventions
8. Strategic Impediments & Initiatives
9. Concluding Remarks
Cross-Border Road Transport AgencyC-BRTA Strategic Thrust
3
Cross-Border Road Transport Agency
March 2013
MTSF 2014/2019: PRIORITY 11: CREATE A BETTER SOUTH AFRICA AND CONTRIBUTE TO A BETTER AFRICA AND A BETTER WORLD
Government Key Strategic Focus Areas
4
Cross-Border Road Transport Agency
MINISTER’S DELIVERY AGREEMENT:
• JOB CREATION.• WOMEN EMPOWERMENT.• YOUTH DEVELOPMENT.• SKILLS DEVELOPMENT.• EMPOWERMENT OF
PEOPLE LIVING WITH DISABILITIES.
NATIONAL DEVELOPMENT PLAN:
• CAPACITY BUILDING OF STAFF AT ALL LEVELS.
• CAPACITY BUILDING OF STATE OWNED ENTERPRISES.
• IMPLEMENTATION OF A FOCUSED REGIONAL INTEGRATION STRATEGY.
Other Strategic Priorities
5
Cross-Border Road Transport AgencyMandate
• To improve the flow of passengers and freight by road transport in the
region
• To introduce regulated competition in cross-border road passenger
transport
• To reduce operational constraints for the cross-border road transport and to
support trade facilitation
• To support the development of the cross-border road transport industry
and to establish meaningful industry partnerships
• To strategically reposition the work of the C-BRTA.
6
Established in terms of the Cross-Border Road Transport Act, No. 4 of 1998
Cross-Border Road Transport AgencyVision and Mission Vision
To be the leading cross-border road transport Agency within the region
MissionTo spearhead social and economic development within the SADC region through
facilitating unimpeded cross border road transport
Strategic Outcome Oriented Goals
Facilitate Unimpeded flow of Cross Border TransportPromote Regional integration
Promote safe and reliable cross-border transport; and Strategically positioning the work of the C-BRTA in order to
enhance organizational Sustainability
7
Cross-Border Road Transport Agency2010/2011 CASH FLOWSFY2009/2010 FY2010/2011
Net cash from operating activities (day-to-day income and expenses)
R4.67m (7.35)
Asset acquisitions (R0.89m) (6.56)
Total cash movement for the year R3.62m (13.94)
Total cash in the bank R16.95m R3.02m
DEPLETION OF CASH RESERVES
Cash Flows: 2010/2011
11
13
Cross-Border Road Transport AgencyReflecting on the 10 Point Plan (as of June 2013)
Item Intervention Progress
1 Recruiting suitably qualified personnel
2 Consensus on the mandate & legitimacy of the C-BRTA
3 Image rebuilding through obtaining an unqualified audit opinion
4 Resolving governance lapses at Board level
5 Developing a funding model responsive to operational imperatives
6 An organisation structure that is consistent with the mandate
7 Developing leadership & managerial cohesion at all levels
8 Developing a responsive organisational culture and values
9 Inculcating performance standards & accountability
10 Developing strategic partnerships with key stakeholders
14
Cross-Border Road Transport AgencyAudit Outcomes
• The Agency attained its first unqualified audit opinion since establishment 15 years ago.
15
2010/11 and 2011/2012 2013/142012/13
QUALIFIED AUDIT
UNQUALIFIED AUDIT
UNQUALIFIED AUDIT
Cross-Border Road Transport Agency
Strategic Partnerships• REGIONAL: SADC Secretariat, JC, JRMG• NATIONAL: BCOCC, NICOC, NATJOINTS, IACF, DEP. Of
Tourism, BRAND SA, DHA, SARS, • PROVINCIAL: Transport MECs and Provincial
transport Depts• LOCAL LEVEL: Metro’s and Municipalities• INTERNAL: Route Committees, Operator Forums,
Stakeholder Forums, Joint law Enforcement Initiatives, SMME development initiatives
Cross-Border Road Transport AgencyEmployment Equity 2013/2014 financial year
17
Employment Equity for 2013/2014
Cross-Border Road Transport Agency
18
Employment Equity …Employment Equity (2)
Cross-Border Road Transport Agency2010/2011 CASH FLOWSINCOME
ACTUAL BUDGET %VARIANCE
TOTAL INCOME 140, 815, 272 185, 768, 921 (24%)
Permit revenue 96, 456, 191 160, 903, 021 (40%)
Penalty revenue 35, 052, 800 20, 865, 900 68%
Interest received 5, 977, 300 4, 000, 000 50%
Other income 3, 328, 981 - 100%
19
Financial Performance as at 31 March 2014
Cross-Border Road Transport Agency2010/2011 CASH FLOWSEXPENDITURE
ACTUAL BUDGET %VARIANCE
TOTAL EXPENDITURE 187, 331, 310 185, 768, 921 (1%)
Staff costs & Directors Remuneration
118, 189, 614 124, 629, 432 6%
Audit Fees (Inter. & External) 3, 329, 012 3, 350, 900 1%
Consultation costs 9, 808, 691 13, 192, 414 26%
Legal fees 1, 161, 063 2, 700, 000 57%
Other operating expenses 50, 128, 172 39, 489, 541 (27%)
Depreciation and amortisation
4, 714, 758 2, 407, 320 (96%)
20
Financial Performance as at 31 March 2014 (2)
Cross-Border Road Transport Agency2010/2011 CASH FLOWSDEFICIT FOR THE YEAR
ACTUAL BUDGET
Total income 140, 815, 272 185, 768, 921
Total Expenditure 187, 331, 310 185, 768, 921
Deficit for the year (46, 516, 038) -
21
Financial Performance as at 31 March 2014 (3)
Cross-Border Road Transport AgencyProgress on Strategic Projects (1)
CHANGING GEARS
STRATEGIC PROJECT
PROJECT OBJECTIVE
PROGRESS TO DATE FUTURE PLANS
Operator
Compliance
Accreditation
Scheme (OCAS)
Accreditation of
cross-border
operators based
on their risk
profiles to reduce
transit delays.
• Identifying the key OCAS
system requirements;
• On-going technical
stakeholder engagements;
• Benchmarking and tailoring
completed;
• Draft Design Framework of
OCAS governance approved
by Regulatory Committee;
and
• Development of business
rules.
• Strategic stakeholder
engagements with the
Shareholder to formally
adopt OCAS at national
level;
• Development of OCAS
scheme standards; and
• Piloting – 2016.
Cross-Border Road Transport AgencyProgress on Strategic Projects (2)
CHANGING GEARS
STRATEGIC
PROJECT
PROJECT
OBJECTIVE
PROGRESS TO DATE FUTURE PLANS
Market Access
Regulation
(MAR)
Scientific
determination
of supply and
demand within
cross-border
corridors.
• Draft Market Access
Regulation Model finalised;
• The MAR Model has been
expanded to cater for six (6)
major cross border routes
and is scheduled has been
completed.
• Pilot and refine the MAR
model in 2014/15; and
• Fully implement the MAR
tool from 2015 onwards.
25
Cross-Border Road Transport AgencyProgress on Strategic Projects (3)
CHANGING GEARS
STRATEGIC
PROJECT
PROJECT
OBJECTIVE
PROGRESS
TO DATE
FUTURE PLANS
Industry
Partnership
Development
Plan (IPDP)
To create
mutually
beneficial
partnerships
with industry
stakeholders
Stakeholder
mapping
Completed
• Build strong stakeholder relationships and
partnerships in the cross border industry
aimed at reducing operational constraints; and
• Drive initiatives on the development of
SMMEs and empowerment of the historically
disadvantaged individuals.
24
Cross-Border Road Transport AgencyProgress on Strategic Projects (4)
CHANGING GEARS
STRATEGIC
PROJECT
PROJECT
OBJECTIVE
PROGRESS
TO DATE
FUTURE PLANS
Business Case
for corridor and
cross- border
management
reforms
To define the
role of the C-
BRTA in border
management
reforms.
Project
Completed
• Engage cross border industry stakeholders
on proposed corridor and border
management reforms and impact, 2014/15;
• Feasibility study on the recommended
corridor and border management reforms.
23
Cross-Border Road Transport AgencyProgress on Strategic Projects (5) CHANGING GEARS
STRATEGIC PROJECT
PROJECT OBJECTIVE
PROGRESS TO DATE FUTURE PLANS
Strategic
Value
Proposition
Plan
To outline the
future strategic
value of the
Agency within
the industry
• Situational analysis
completed
• Industry
environmental
scanning and
stakeholder
engagements on-
going; and
• Integration of all
strategic projects.
• Present a plan to DoT and the
Minister of Transport with defined
roles and strategic value
propositions for the Agency in the
cross border industry;
• Support the DoT in drafting
legislation that may be required to
change the mandate of the C-BRTA;
• Progressive implementation of the
Strategic Value Proposition Plan in
the cross border industry.
22
Cross-Border Road Transport Agency
Regulatory Committee Mandate • Section 23 of the C-BRT Act mandates the Board to regulate access to
the cross-border road transport market.
• Regulatory Committee established in terms of section 13 of the C-BRT
Act to assist the Board in the execution of its regulatory functions.
• Regulates market access through permit administration process
based on provisions of the road transport agreements.
• Liaison with Transport Appeal Tribunal on matters of mutual interest.
Cross-Border Road Transport AgencyAnnual Performance Plan 2014/15
32
Strategic Objectives 2014/19 Key Performance Indicators (APP 2014/15)
To introduce and implement
regulated competition
1. Implement the scientific tool used by the Regulatory
Committee (MAR);
To revise the C-BRTA mandate 2. Initiatives taken to revise the C-BRTA mandate;
To promote efficiencies in permit
issuing.
3. Develop and implement the new permit system;
To generate and deploy strategic
intelligence capabilities to improve
compliance with road transport
legislation
4. Developed and Implemented Operator Compliance
Accreditation Scheme (OCAS);
5. Operationalise smart law enforcement system;
6. Permanent deployment of Inspectors within 2km
proximity from major borders;
7. Number of inspections conducted;
Cross-Border Road Transport AgencyAnnual Performance Plan 2014/15
33
Strategic Objectives Key Performance Indicators
To increase strategic influence with
stakeholders so as to enable the
organisation to achieve its objectives.
8. Implement empowerment initiatives focusing
on historically disadvantaged individuals;
9. Percentage achieved on client satisfaction
survey conducted;
To proactively provide value added
advisory services to the Minister of
Transport and other relevant
stakeholders.
10. Cross-border road transport report submitted
to the Minister and other relevant
stakeholders;
Annual Performance Plan 2014/15 (2)
Cross-Border Road Transport AgencyAnnual Performance Plan 2014/15 (3)
34
Strategic Objectives Key Performance Indicators
To develop and implement a high
performance culture in the organization.
11. Improve organizational culture;
12. Enhance performance standards aligned to
organisational strategic objectives and values;
To ensure the financial viability and
sustainability of the C-BRTA
13. Develop and implement financial
sustainability strategy/model; and
To improve the internal control
environment
14. Maintain an unqualified audit opinion.
Cross-Border Road Transport AgencyMTEF Budget Per Classification
35
2014/15 2015/16 2016/17
Revenue
Permit fees R185m R199m R214m
Penalties R24m R25m R25m
Interest R5m R6m R6m
TOTAL REVENUE R214m R229m R245m
Current Payments
Compensation for employees R142m R152m R164m
Goods and Services R72m R77m R81m
Capital Assets
Capital Expenditure R20m R10m R10m
TOTAL EXPENDITURE R234m R239m R255m
Cross-Border Road Transport AgencyMTEF Budget Per Division
36
2014/15 2015/16 2016/17
CURRENT EXPENDITURE
Facilitation and Industry Development R20m R21m R23m
Road Transport Inspectorate R78m R83m R87m
Regulatory and Legal Services R27m R29m R31m
Strategic Support R24m R26m R28m
Administration (Governance, CEO’s Office, Corporate Service and Finance)
R65m R70m R76m
TOTAL CURRENT EXPENDITURE R214m R229m R245m
Cross-Border Road Transport AgencyCritical Matters and Interventions
29
Key Challenges Interventions
On-going litigation against the C-BRTA on the
increase of permit fees
The Agency’s application for leave to appeal was
unsuccessful. The legal representatives of the Agency
were instructed to petition the Supreme Court of Appeal
for leave. The petition is pending.
Resolution of the Lesotho/Free State
passenger movement resulting in non-
adherence to SACU MOU
Departmental leading role in the amendment of the C-
BRT Act. Consulted: Select Committee on Public Services,
Executive Council: Free State Province, the Regulatory
Committee of the C-BRTA, the Inter Agency Clearing
Forum, National Intelligence Coordinating Committee, JCPS
Cluster, NATJOINTS, Gauteng MEC of Roads and Transport,
Ministry of Transport of the Kingdom of Lesotho,
passenger transport operators affected.
37
Strategic Impediments & Initiatives• Need to focus on the funding model as it is evident that the current model is not
sustainable.
• Need to use JCs and JRMGs as outcome-based meetings through which we add
value to the industry, coupled with structured reporting of outputs of these
meetings, through the Regulatory Committee, with Ministerial and Parliamentary
structures.
• Focus on developing country profiles to empower operators in member state
countries and Focus on beyond the borders, where our operators face major
impediments.
• Need to develop a comprehensive plan for addressing the question of un-
roadworthy cross-border vehicles and to foster a review of SADC vehicle standards.
38
Cross-Border Road Transport AgencyStrategic Impediments & Initiatives (2)
• Focus on Road Safety.
• Need to develop the capability and competency for championing issues
pertaining to “vehicle safety” and introducing the Australian-type accreditation
systems within S.A.
• Need for appreciating the changing dynamics in border towns and the need to
respond to provincial imperatives e.g. Musina. Ficksburg
• Strengthening partnerships with SARS and other players in the Border
environment.
• Need for protection of our S.A. domestic operators in regard to conditions
obtaining in our neighbouring countries – need for review of Bilateral Agreements
& monitoring of implementation of the SADC Protocol.
39
Cross-Border Road Transport Agency
• Need for activation of the entire mandate of the C-BRTA to enable seamless and
efficient passenger and freight logistics in the cross-border space.
• Harmonisation of regulatory frameworks between the C-BRTA system and other
licensing authorities (Provincial)
• Elevation of the Profiling unit to provide intelligence to support the cross-border
transport industry.
• Remote issuance of cross-border permits within two working days to enhance
customer services and reduce cost of doing business.
• Empower cross-border operators to diversify their business models (service
stations, etc)
Strategic Impediments & Initiatives (3)
40
Cross-Border Road Transport AgencyConcluding Remarks
• The C-BRTA is geared to demonstrate its commitment to adding public value
through its strategic interventions.
• This Agency is also poised to support the National Programme of Action of
government of industrialization and job creation.
• The Agency is committed to maintaining an unqualified audit opinion.
• Going forward, the C-BRTA is gearing itself to improve its service offerings by
overhauling its permit administration system.
42
Cross-Border Road Transport Agency
i thank you, sincerely.