• National Government
• Provincial Government

• Domestic Legislation
• Multilateral Agreements
• Bilateral Agreements

WHAT PRINCIPLES UNDERLIE C-BRTA

CROSR-BORDER ROAD TRANSPORT AGENCY

• Cross-Border Road Transport Agency is a statutory juristic person established in terms of section 4 of the Cross-Border Road Transport Act no 4 of 1998

• It started its operations on the 1 April 1998.

MAIN OBJECTIVE

• The Agency was created, primarily, to regulate cross-border road transport into the region by means of issuing permits regulating the conveyance of both freight and passengers.

FINANCIAL CONTROL

The bill provides for financial accountability.

Internal financial controls

• CEO to report to Board on ongoing basis.

External Financial Controls

• Annual audits by registered auditor in terms of public accountants' and auditors act.
• CBRTA financial reports to Minister to be tabled in Parliament

SAD PROTOCOL ON TRANSPORT, COMUNICATION AND METEOROLOGY

• Integration of regional transport, communications and meteorology networks
• Elimination or reduction of hindrances and impediments I.r.o. movements of persons, goods and services.
• Development, preservation and improvement of Transport, communications meteorology infrastructure
• Optimal utilization of public and private financial, human and other resources
• Effective allocation of existing resources
• Regional and global competitiveness of the Community's service providers
• Co-operative policy development
• Strategic partnership between government and regional private sector
• Regional development fostered by strategic partnership between international co operating partners and regional stakeholders
• Custmer driven service provision
• Improved diversity of services
• Provision of services on a competitive basis
• Informed decision-making
• Focused investment in joint human resource development programmes, information management, research and technology transfer
• Effective environmental management

• South Africa
• Swaziland
• Namibia
• Lesotho
• Botswana

Bilateral road transport agreements that were concluded and implemented since the inception of the Cross-Border Road Transport Agency

• South Africa
• Malawi
• Mozambique
• Zambia
• Zimbabwe

Fostering a transport partnership between the C-BRTA and Transport Industry

INITIATIVES FOR THE EXECUTION OF THE TRANSPORT POLICY

• Information Desk
• Joint Route Management Groups (JRMGs)

Cross-Border Road Transport Agreements

• Regulate the carriage of goods and conveyance of passengers by road within the territories of SADC states;
• Achieve an equal distribution of traffic among territories of member states;
• Achieve an equal distribution of permits;
• Achieve and maintain an equitable non-discriminatory infrastructure cost recovery system.

REGULATORY FRAMEWORK: STATUS QUO

Cross-Border Road Transport Act, no 4 of 1998 which provided for the establishment of C-BRTA

Bilateral Agreements

Multilateral Agreements

• SADC Protocol on Transport, Communications and Meteorology

• SACU Memorandum of Understanding on Road Transport (MoU)

Bilateral Agreements concluded between South Africa and:

• Malawi
• Zambia
• Zimbabwe
• Mozambique

SUPPORT REGIONAL TRADE BY:

• Facilitation of Cross-Border Road Transport

• A strategic private-public sector relationship.
• A strategic alliance between Transport Authorities.
• Capacity building of private and public sector
• Management of information.

ROAD TRANSPORT INFORMATION DESK

• Permit requirements
• Vehicle standards
• Custom & excise requirements
• Visa requirements
• Status of infrastructure.
• Border post control operating hours and contact persons
• Current road transport developments in Southern African countries.

JOINT ROUTE MANAGEMENT GROUPS

• Multi- and Bilateral Road Transport Agreements
• Transport authorities.
• Infrastructure authorities.
• Local and Provincial transport authorities.
• Transport inspectors.
• Traffic policing authorities.
• Customs & Excise authorities.
• Immigration authorities.
• Trade & industry authorities.
• Border post authorities and officials.
• Freight forwarders and clearing agents
• Financial- and insurance institutions.

• ¦A II modal transport operators (Bus/Taxi/Freight /Rail/Tourism)

BORDERPOST DELAYS

• In the past, up to 7 DAY DELAYS at the land borders e1g1 Belt Bridge and Lebombo were not an unusual.
• Joint Route Management Groups the C-BRTA's public/private sector participatory forums exposed Customs and Immigration Officials directly to the operators, their needs and the problems that causes delays.
• JRMG's also brings the role players from the border posts of two countries e.g. SA/Mozambique's officials together, resulting in harmonisation of operating hours and documentation.

TREMENDOUS PROGRESS MADE IN PAST FOUR YEARS

30 Minute commercial clearance at the old Komatipoort airport and 30 minutes at the border post

All vehicles with correct documentation and bond facilities are cleared the same day resulting in NO BORDER DELAYS

All vehicles with the correct documentation and bond facilities are commercially cleared on the same day basis, resulting in NO BORDER DELAYS.

CABOTAGE

Cabotage is prohibited by most countries in the region, except if a country does not have suitable vehicles required for special conveyance e.g. hazardous chemicals or extra heavy loads or where another country afford our operators the same opportunities.

SADC Protocol on Transport and Communications envisages a gradual deregulation towards an pen regional market for freight operations.

THIRD COUNTRY RULE

Conveyance by foreign operators from points within South-Africa to a third member or non-member state

The second phase of deregulation as stipulated in the Protocol.

Zimbabwe and Zambia has opened up third country conveyance for the RSA operators

The way forward to support to DTI's free trade initiative.

C -BRTA must, therefore, through its regulation function assure safe, speedy, affordable and reliable transport for these workers.

Over saturation also brings the tendency resort to violence in the volatile passenger market.

Meticulous route profilling and route statistics therefore become a crucial management tool.

FOREIGN OPERATORS WITH FOREIGN REGISTERED VEHICLES OPERATING IN RSA

C- BRTA is increasingly faced with applications for Cross-Border Permits from operators with vehicles registered as far afield as Britain

These vehicles convey mainly backpacker tourists and spend 14 days out of a three month scheduled tour of the African continent in the RSA

Vehicles are bought and licensed in their country of origin but carry the necessary passenger liability.

Passengers conveyed are all overseas tourists carrying foreign passports.

The movement by road is mostly freight conveyance, As far as movement is concerned tourism up quite a portion of the market.

The taxi industry up a substantial 20% of the market movement and labour migrant worker transports

SWAZILAND

The biggest market portion is the conveyance of freight. Passenger movement comprises of hawkers and migrant mineworkers. Tourism is also active between the countries,

LESOTHO

Freight conveyance once again is the larger share of the market. Passenger conveyance is currently very small due to domestic conveyance ending and starting at the RSA side of the borders. This movement should see a substantial increase in future due to negotiations between RSA and Lesotho with regards to the full implementation of the agreement

Very strong in shares in freight conveyance comprising of mainly livestock and farming products Passenger movement smaller, however, the tourist market is very strong.

BILATERALAGREEMENTS ON ROAD TRANSPORT

Major freight movement Is taking place. Passenger movement comprises of tourists, labour movement for the formal and informal as well as the transportation of hawkers and their goods.

The freight conveyance between the countries is not quite as busy as with the other countries but conveyance of mining goods and copper are taking place. The passenger movement between our countries is small due to the distance and tourism takes place as circular tours through many of the countries.

Very large passenger movement comprising mainly of migrant mineworkers. Buses have 70% of the market share with taxis taking up the rest* The freight market is mainly one sided from the RSA to Mozambique*

The market is much smaller and very little passenger movement except for only one bus service and tourist operations

• Contribute to the AFRICAN RENAISANCE through transfer of skills to enhance the road transport sector in the region and thus contributing to the revival of economies in the SADC region.

• Give effect to the EMPLOYMENT EQUITY BILL to reflect the demographics of South Africa
• CHANGE THE ROAD TRANSPORT INDUSTRY to become more representative of the South African society.

C-BRTA is financially self sufficient for the time being, other sources of income must be developed. The C-BRTA can not depend on cross- border road transport permit income alone.

REGULATION OF CROSS-BORDER ROAD TRANSPORT IS DONE IN SUPPORT OF NOT ONLY THE RSA'S ECONOMY BUT ALSO THAT OF THE REGION. Permit fees can, therefore, not be raised indiscriminately to support the regulatory function in total without taking into account the effect on the already over inflated transport costs in the region.

The income derived from permit fees also depends on many factors totally out of the agency's control.

MAIN EXTERNALITIES THAT HAS A NEGATIVE IMPACT ARE:

• Stagnation of economies in other SADC countries, resulting in less purchase power, and therefore less need for transport.
• Fuel shortages and natural disasters such as the floods experienced in the last rain season make their mark on the income of the agency.
• High unemployment rate brings less passenger movement
• Political instability in other countries with whom we have agreements.
• The closing down of mines that is no longer economically viable and the laying off of large numbers of migrant mineworkers have a major impact on the need for passenger services to other countries.
• Saturation of the market will have a negative effect on the request for permits.

HUMAN RESOURCES: DESIRED SITUATION: 2006

· Currently 700_ of the total income of the Agency is spent on the remuneration of 136 employees.

· The number of employees increased from 102, when the Agency was established in 1998 to 136 without an increase in the function to be delivered.

· The desired situation therefore would be to reduce the number of employees back to 102, which is the desired number to ensure that the Agency renders its function effectively and efficiently.

· The Agency wants to use its natural migratory process such as retirement and resignations to reduce the staff component. Should the reduced number of staff not be achieved, the Agency will have to consider restructuring and retrenchments to enable the Agency to reduce its remuneration budget to fulfill its regulatory function within its current income.

STRATEGIC OBJECTIVES: REVIEW OF THE LEGISLATION

• There are certain obstacles and/or constraints imposed by the current Cross-Border Road Transport Act No 4 of 1 99~ which makes it difficult for the Agency to execute its mandate.
• Therefore there is a need for the amendment of cei4ain definitions and sections in the Act No 4 of 1998.

• To establish a central rank for international bus and taxi operators in Johannesburg
• Sponsors offered to build facilities but property should be obtained from the Municipality of Johannesburg.
• To provide safe facilities for all taxi and bus operators from SADC countries.

STRATEGIC OBJECTIVES

REVIEW OF THE LEGISLATION

• There are certain obstacles and/or constraints imposed by the current Cross-Border Road Transport Act No 4 of 1998which makes it difficult for the Agency to execute its mandate.

• Therefore there is a need for the amendment of certain definitions and sections in the Act No 4 of 1998.

To establish a central rank for international bus and taxi operators in Johannesburg

• Sponsors offered to build facilities but property should be obtained from the Municipality of Johannesburg.

To provide safe facilities for all taxi and bus operators from SADC countries.

• The backlog of applications, caused by the absence of a Board from January 2004 - September 2004 should be eliminated before putting procedures in place to prevent a similar occurrence.
• Proposal: That the period from date of receipt to date of hearing should not exceed 8 weeks.
• Proposal: That 14-day permits be issued and dispatched within 48 hours.
• Proposal: Via electronic media money can be paid into the Agency's bank account. Applications forwarded by fax and permits issued within 24 hours. This makes it safer for the Agency as the money is paid directly into their bank account and not over the counter.

DISPUTE BETWEEN C-BRTA AND FREE STATE PROVINCE AND GAUTENG PROVINCE

• To solve the dispute between the C-BRTA , the Free State Province and Gauteng Province by requesting the \4inister's intervention in the issuing of permits by these provincial boards.

• During the past financial year, 20 operators conveying cobalt from the DRC were fined for overloading (exceeding the CVM of 56 tons) by 20 tons and more.
• Operators to be summoned to appear before the Regulatory Committee providing reasons not to have their permits cancelled.

• C-BRTA has entered into an agreement with with Bakwena Tollgates and Northwest Province to do joint law enforcement on overloading at Zeerust.
• C-BRTA has entered into an agreement with Limpopo Province and Customs and Fxcise to do joint law enforcement at Groblersbrug weighbridge.

FINANCIAL STATUS REPORT

INCOME

The major source of revenue for the Agency is permit fees, However over the five years that the Agency has been in existence there has been no significant growth in revenues except for the nineteen (19%) percent increase between the years ending 30 June 2001 and 30 June 2000. To resolve the insignificant growth in revenue a number of law enforcement inspectors have been employed.

EXPENDITURE

Expenditure has always been a thorny issue with the Agency with the year 2001 being the only year where it did not exceed our revenues. The major expenditure of the Agency relates to human resource costs of which these normally comprise about seventy (70%) of the operating expenditure In order to combat the reduction in the permit and penalty fees a number of law enforcement inspectors have been recently employed.

The Agency has been undergoing a transforming process in order to comply with Employment Equity policies. This has resulted in some people being taking early retirements with the resultant benefits having to be paid.