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HRD PLAN AND JOB CREATION WITHIN THE TRANSPORT SECTOR
Transport’s contribution to the New Growth Path
Prsentation to the Transport Portfolio Committee, 16 August 2011
Contents
Purpose Integrated Skills Development Strategy Critical skills in the sector (needs & interventions) Major Transport Sector Job Creation Initiatives
S’hamba Sonke Programme Shova Kalula Bicycle Programme Rail Rolling Stock Acquisition Programme
Other Transport Sector Job Creation Initiatives Conclusion
Purpose
To provide an overview of the manner in which the Department of Transport and the Transport Sector responds to the New Growth Path, Job Creation, Service Delivery and Transformation through skills development.
To provide appropriate interventions to address identified scarce and critical skills needed in the transport sector.
To report on major Transport Sector Job creation initiatives that respond to the New Growth Path, namely, S’hamba Sonke, Shova Kalula, the Rail Rolling Stock Programme, etc.
JOB CREATION EDUCATION, TRAINING, SKILS DEV
CAPACITY BUILDING
INITIATIVESME
NT
OR
IN
G &
CO
AC
HIN
G SE
MIN
AR
S,
WO
RK
SH
OP
SC
ON
FE
RE
NC
ES
INTEGRATED SKILLS DEVELOPMENT
LEGISLATIVE FRAMEWORK and MOUs
INTERGRATED SKILLS DEVELOPMENT STRATEGY
S A F E , S E C U R E , E F FI C I E N T, A F F O R D A B L E , R E LI A B L E , A C C E S S I B L E
T R A N S P O R T
S Y S T E M
IMP
RO
VE
D
PU
BL
IC
T
RA
NS
PO
RT
S
YS
TE
M
TH
RO
UG
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SK
ILL
S
DE
VE
LO
PM
EN
T I
N
PA
RT
NE
RS
HI
P W
ITH
PR
IVA
TE
; P
UB
LI
C A
ND
IN
TE
RN
AT
ION
AL
IN
ST
ITU
TIO
NS
I M P R O V E D
R U R A L
A C C E S S , I N F R A S T R U C T U R E
A N D
M O B I L I T Y
A N
E F F I C I E N T , C O M P E T I T I V E , R E S P O N S I V E
S O C I O - E C O N O M I C I N F R A S T R U C T U R E
ROAD
RAIL
AIR
MARITIME
SKILLS
I NTEGRATIONPLANNINGPROJECT MANAGEMENTIMPLEMENTATIONPUBLIC TRANSPORT
VIS
ION
OU
TP
UT
Road critical skills needs
Engineers: Civil; Mechanical, ElectricalArtisansApprenticesRoads Maintenance OfficersInfrastructure network planning and
managementRoad Traffic ManagementRoad and Vehicle InspectorsTraffic officers, Road Incident Managers
Rail skills needs
Engineers: Mechanical; Electrical, Civil, Information Technologists and Signaling Experts
Rail Infrastructure DevelopersRail Safety InspectorsEconomistsLogisticiansMonitors, Operators, Yard masters
Aviation skills needs
PilotsAircraft Maintenance EngineersAir Traffic ControllersAviation Safety and Security ExpertsAir Transport Managers Aviation Infrastructure ManagersAviation Compliance Managers
Maritime skills needs
PilotsSeaferersShip Designers, Builders, Naval ArchitectsSkippersMaritime Safety OfficersMaritime Environment Protection SpecialistsMarine EngineersPorts engineersInternational Compliance
Our approach to skills requirements
Policy Making, Regulations,Integrated Planning
SKILLS
NEEDS
MENTORING
LEANERSHIP
INTERNSHIP
TECHNICAL
R PE RT OI FR EE SD S I O N A L
Integrated, coordinated skills development, Implementation, Monitoring and Evaluation
BURSARIES
SCHOLARSHIP
PROFESSIONAL
COACHING
MANGT
DEV
SUSTAINABLE DEVELOPMENT AND POVERTY ALLEVIATION
Specific functions related to the job
Technical skills
Competencies associated with the effective
execution of the job
The overall training strategy to develop the
human resource potential for sustainable development
TECHNICAL/ DIFFERENTIATINGCOMPETENCIES
STRATEGIC-GENERICCOMPETENCIES
CORECOMPETENCIES
WHOLISTIC APPROACH TO SKILLS DEVELOPMENT
Interventions
Establishment of Skills Coordinating Bodies for each mode of transport, e.g CAPCO.
Centres of Development (COD), partnership with 13 Universities. Engineering :Civil, Mechnical , Industrial, Marine etc ( TUT,
UP ) Transport Economics ( provided through UJ, UNW,UNISA etc) Transport and Freight Logistics( UJ, UNISA,UNW, Unizulu ) Maritime studies ( DUT, UKZN) Transport Management ( UJ, Unizulu ) Transport Planning ( UCT )
Transport Research Activity Centre (TRAC)- support for learners and educators on Maths, Science and Technology- 33 Mobile laboratories.
Transport FET Curriculum and Programme has been approved for introduction in FET Colleges for 2012.
Educational Outreach Programmes Learnerships and Apprentices (Driven by Teta) Internships across the transport sector (with rotational
options) - Integrate job rotation as part of the job description on the part of the targeted mentors.
Utilization of retired professionals for mentoring and coaching (still to be properly coordinated)
Khaedu and Accelerated Development Programme for Managers is running according to the national programme.
Transport FET Curriculum and Programme has been approved for introduction in FET Colleges for 2012. Educational Outreach Programmes Learnerships and Apprentices (Driven by Teta) Internships across the transport sector (with rotational options) - Integrate job rotation as part of the job description on the part of the targeted
mentors. Utilization of retired professionals for mentoring and coaching (still to be properly coordinated) Khaedu and Accelerated Development Programme for Managers is running according to the national programme.
Major Transport Sector Job Creation Initiatives
S’hamba Sonke Roads Maintenance Programme
Why focus on roads?
Roads are part of the country’s Gross Capital Stock which contributes to economic development with infrastructure investment
influencing GDP levels.....Infrastructure Investment
0
5000
10000
15000
20000
25000
Value
Research shows that there is a correlation (measure of association) between investment in economic infrastructure and economic growth with the effects of investment in economic infrastructure lasting up to 20 years and beyond (with well maintained infrastructure). The latter partly explains S.A’s economic growth irrespective of inadequate investment in infrastructure during the 1980’s.
GDP growth
3.12
4.31
2.65
0.52
2.36
4.15
2.74
3.673.12
4.845.09 4.98
0
1
2
3
4
5
6
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: South African Reserve Bank 2007
1616
South Africa’s investment in infrastructure since the 60’s peaking during the mid-70 and 80’s and then a gradual decline since then. Fixed capital stock has generally been supported by growth in GDP and in turn supports subsequent GDP growth (with adequate maintenance of the infrastructure). In general the decline in investment on infrastructure during the eighties until the upswing at the start of this decade has thus contributed in slowing of economic growth…
1717
What is the state of the road network currently?
Overall network condition
1919
Very Poor (km)
Poor (km)
Fair (km) Good (km)
Very Good (km)
SANRAL - Paved 16,170 233 1,199 6,391 7,750 597
Provinces - Paved 48,176 3,532 7,200 15,179 16,470 4,706Metros - Paved 51,682 421 1,256 6,707 20,104 12,250Municipalities - Paved 37,691 121 272 1,579 5,271 3,623Provinces - Gravel 136,640 19,327 33,219 35,344 13,863 1,981Metros - Gravel 14,461 2 7 55 1,722 3Municipalities - Gravel 302,158 123 485 849 557 117
Totals km 606,978 23,759 43,639 66,103 65,737 23,276Totals % 10.68 19.61 29.71 29.54 10.46
Authority Total Network Visual Condition Data (km)2
Visual Condition Index - SUMMARY
0% 20% 40% 60% 80% 100%
SANRAL - Paved
Provinces - Paved
Metros - Paved
Municipalities - Paved
Provinces - Gravel
Metros - Gravel
Municipalities -Gravel
Percentage of Network
Au
tho
rity Very Poor
(km)Poor (km)
Fair (km)
Good (km)
How much do we know about our network: availability of data*
Authority Paved Gravel Total
Length Data Length Data Length Data % Data Received
SANRAL 16,170 16,170 0 0 16,170 16,170 100
Provinces - 9 48,176 47,088 136,640 103,733 184,816 150,820 82
Metros - 9 51,682 40,737 14,461 1,789 66,143 42,527 64
Municipalities 37,691 10,866 302,158 2,124 339,849 12,990 4
Total 153,719 114,861 453,259 107,646 606,978 222,507
% Data Received 75 24 37
2020
* Based on information collected from pavement management systems of roads authorities by SANRAL on behalf of DOT: 2009
and funding?
Paved
Gravel
5 yearsSustain Backlog Total
EASTERN CAPE 5,878 R 3,174,082,200 R 3,766,613,760 R 6,940,695,960FREESTATE 6,313 R 3,409,224,120 R 0 R 3,409,224,120GAUTENG 3,449 R 1,862,271,000 R 0 R 1,862,271,000KWAZULU NATAL 6,749 R 3,644,514,000 R 3,847,219,200 R 7,491,733,200LIMPOPO 6,639 R 3,584,854,800 R 0 R 3,584,854,800MPUMALANGA 4,952 R 2,674,252,800 R 1,540,907,520 R 4,215,160,320NORTH WEST 5,551 R 2,997,567,000 R 923,769,600 R 3,921,336,600NORTHERN CAPE 2,539 R 1,370,881,800 R 0 R 1,370,881,800WESTERN CAPE 6,106 R 3,297,207,600 R 0 R 3,297,207,600
Totals km 48,176 R 26,014,855,320 R 10,078,510,080 R 36,093,365,400
Maintenance Budget Per Year forAuthorityTotal Network
Paved1
Estimated Paved Road Maintenance Budget Requirement Per (2009 R)
10 yearsSustain Backlog Total
EASTERN CAPE 26,340 R 678,266,845 R 379,302,624 R 1,057,569,469FREESTATE 21,325 R 549,110,768 R 307,075,536 R 856,186,304GAUTENG 1,895 R 48,807,323 R 27,294,192 R 76,101,515KWAZULU NATAL 14,437 R 371,752,750 R 207,892,800 R 579,645,550LIMPOPO 15,396 R 396,449,060 R 221,703,552 R 618,152,612MPUMALANGA 8,887 R 228,846,688 R 127,976,400 R 356,823,088NORTH WEST 14,961 R 385,236,995 R 215,433,504 R 600,670,499NORTHERN CAPE 23,205 R 597,518,193 R 334,146,096 R 931,664,289WESTERN CAPE 10,194 R 262,497,818 R 146,794,896 R 409,292,714
Totals km 136,640 R 3,518,486,438 R 1,967,619,600 R 5,486,106,038
Estimated Gravel Road Maintenance Budget Requirement Per Year (2009 R)Maintenance Budget Per Year forAuthority
Total Network Gravel1
Paved
Gravel
Grand totals 184,816 R 29,533,341,758 R 12,046,129,680 R 41,579,471,438
2323
What is allocated and spent on maintenance?
2004/05 (%)
R’000
2005/06 (%)
R’000
2006/07 (%)
R’000
2007/08 (%)
2008/2009(%)R’000
2009/10 (%)R’000
2010/2011(%)R’000
Pre-audited R’000
(Maintencance)
(Maintencance)
(Maintencance)
(Maintencance)
(Maintencance)
(Maintencance)
(Maintencance)
Eastern Cape
1 282 406 (32) 1 396 424 (30) 1 492 566 (38) 1 615 668 (41) 1566 670 (43) 1 605 701 (44) 1 648 735 (45)
Free State
322 198 (61) 333 192 (56) 801 347 (43) 743 166 (22) 962 194 (20) 1242 291 (23) 1376 379 (28)
Gauteng 473 160 (34) 550 363 (66) 577 171 (30) 1078 246 (23)
1401 666 (48) 1513 747 (49) 1418 761 (54)
Kwazulu-Natal
1 333 550 (41) 1 682 656 (35) 1 856 821 (44) 2360 962 (41) 2964 1221 (41) 3696 1483 (40)
3870 1574 (41)
Limpopo 952 302 (32) 1152 321 (28) 1139 328 (29) 1445 331 (23) 1426 346 (24) 1554 384 (25) 1 802 433 (24)
Mpumalanga
607 191 (31) 723 197 (27) 688 246 (36) 993 443 (45 1014 443 (44) 1137 490 (44) 1185 505 (43)
Northern Cape
187 87 (47) 177 80 (45) 236 83 (35) 365 113 (31) 419 150 (36) 485 170 (35) 569 174 (31)
North West
393 210 (53) 605 253 (42) 689 267 (39) 691 218 (32) 715 251 (35) 904 380 (42) 835 251 (30)
Western Cape
676 405 (60) 962 573 (60) 1285 657 (51) 1346 656 (49) 1380 554 (40) 1538 615 (40) 1 632 728 (45)
Total Province
6 190 2 508 7553 3058 8763 3485 10 638 3803 11 888 4495 13 673 5260 14 334 5540(40%) (40%) (40%) (36%) (38%) (38%) (39%)
Click to edit Master subtitle style
Key sector response
S’hamba Sonke Programme
Implementation focus areas for S’hamba Sonke
Key Programme Components Key Actions
Increase investment in maintenance of key arterial routes to support the rural economy
• Provincial authorities to identify roads for approval by DoT
• Outline methods of implementation that unbundle contracts to create opportunities for Emerging Contractors and local labor
• Collect key condition data on such roads
Increased focus in the cost efficient use of labor absorptive methodologies in road construction and maintenance;
• Best practice labor intensive programmes to be rolled out nationally
• Cost-efficiency is key in the rollout of programmes• Pothole patching programme to be rolled out • Co-operatives to be introduced on road maintenance
Improving Access to Schools and Clinics and other public facilities
• Provinces to itemise backlogs and progress • Business plans that respond to job creation to be
submitted
Know your network: A focused attention on deployment of local resources to support road network asset management
• Roads authorities are to retain information on network conditions on a regular basis
• Collected information must be fed into the asset management system
• collected condition information must be used to inform investment decisions
Delivering a safe Road Environment
How these are/have been addressed
2626
Key Programme Components
S’hamba Sonke Business Plan Framework
Reporting Framework
Increase investment in maintenance of key arterial routes to support the rural economy
Provinces developed and submitted business plans prioritising key arterial roads with rehabilitation of high volume roads (where commitments were made through IGP); maitenance of high trafficked roads in poor to very poor condition, upgrading and construction of access roads (where commitments were made through IGP), maintenance of access roads, give details of pothole repair programme.
Details of Road Asset Management System (Pavement Management systems incl. Extent of roads in various condition category, vehicle operating costs)
Contractor development strategy and S3 engineer development strategy/programme.
Measure to ensure safe road environmentJob creation targetsFinancial data
Part 1: Financial Related Data (ES&PRMG allocations)
Part 2: Network Management Data• Visual condition assessment
information• Traffic counting data• reclassificationPart 3: Law Enforcement/Safety
Related DataPart 4 Maintenance and Upgrading
Related Data• Length or volume of roads in
various condition addressed (including pothole patching)
• Number of drainage and related structures constructed or maintained
• Routine road maintenance activityPart 5: Job Creation Data• Total number of jobs created • Breakdown for women, youth and
people with disabilitiesPart 6: Procurement Related Data• Value of contracts awarded at
different levels of CIDB grading
Increased focus in the cost efficient use of labor absorptive methodologies in road construction and maintenance;
Improving Access to Schools and Clinics and other public facilities
Know your network: A focused attention on deployment of local resources to support road network asset management
Delivering a safe Road Environment
Contribution to government prioritiesKey Programme Components
Direct or indirect contribution
Increase investment in maintenance of key arterial routes to support the rural economy
• The African Renaissance Road Upgrading Programme (ARRUP) in KZN shows that targeting development of key arterial routes accelerates development of road construction industry and renewal of rural communities. This goal will be accellerated when additional funding materialises in the roads sector to enable targeting of the most vulnerable sectors and put rural economy on a sustainable labor absorptive path.
Increased focus in the cost efficient use of labor absorptive methodologies in road construction and maintenance;
• Labor absorptive programmes provides poverty relief as opposed to alleviating poverty completely. Focusing on cost effective use of such methodologies coupled with linkages with other productive enterprises in communities (e.g LED projects) may in the long term assist in tackling the problem of poverty and create sustainable livelihoods. E.g. in both KZN and EC programmes savings of R12m and R20m have been realised by participants. Proper deployment of such resources may enable participants to graduate from programme into sustainable enterprises.
Improving Access to Schools and Clinics and other public facilities
• Contributes to sustainable livelihoods and allevition of poverty by facilitating access to key government services and interventions and mobility of goods and people in the local productive space as well as linkages with available economic activities 2727
allocations….
Provincial roads Maintenance GrantAllocations to provinces
Vote Name of allocation
Province 2011/12 2012/13 2013/14
Transport (Vote 36)
R'000 R'000 R'000Provincial Roads Maintenance Grant
Eastern Cape 1 034 086 1 215 920 1 312 210
Free State 447 165 525 794 567 433
Gauteng,
Includes Coal Haulage
566 917 583 226 625 542
74 4.4 0.9
KwaZulu-Natal 1 236 648 1 454 099 1 569 251
Limpopo 934 208 1 098 478 1 185 468
Mpumalanga
Includes Coal Haulage
1 016 603 1 253 564 1 449 002
511 659 808
308 760 363 053 391 803
501 826 590 067 636 795
411 141 483 437 521 720
- - -
6 457 939 7 568 301 8 260 032 2929
Targets
3030
Targets for job creation per province
3131
Recorded progress to date on PRMG
Prov PRMG Allocation 2011/12
Amount Transferred
Spent to date
Job Creation Data
13-May-11Work opportunities
Full time equivalent Women Youth REMARKS
EC R 1 034 086 R 155 113 R 193 677
1 239 512 660 520
FS R 447 165 R 75 029 R 81 926 1 273 79 630 584
GP R 566 917 R 55 017 R -
- - - - All projects on tender stage
KN R 1 236 648 R 309 162 R 168 225 39 574 5 124 30 400 9 700
LM R 934 208 R 191 016 R 97 817
19 187 No figures 13 927 7 544 some data missing
MP R 1 016 603 R 150 138 R 220 769
518 No figures No figures No figures some data missing
NC R 308 760 R 86 085 R 88 472 3 299 323 2 233 959
NW R 501 826 R 57 642 R 21 962
198 56 No figures No figures some data missing
WC R 411 141 R 61 191 No figures 2 056 No figures No figures No figuresno official feedback/response as yet
TOT R 6 457 354 R 1 140 393 R 872 848 67 344 6 094 47 850 19 307
3232
3333
with inadequate capacity at DOT to
manage all these, the plan is to source
capacity as follows….
Key areas for support by DOT- PMU for S’hamba Sonke
3434
3535
Key Provincial Interventions
3636
Free State
Free State
3737
The Free State was allocated a total amount of R447,165 under the maintenance fund which has been allocated as follows:
Engaging contractors
CONTRACTOR DEVELOPMENT PROGRAMME (CDP). The budget allocation for the Contractor
Development Programme for the 2011/2012 financial year is R80 million. It is estimated that the Department will train 64 Contractors and create an estimated 768 jobs.
3838
3939
Gauteng
Job creation
Planned job creation projections is a total of 6000.
42 emerging contractors to be engaged They employ 121 workers Create approximately 5091 jobs in the 2011/12 financial
year Addressing road reserve, reactive and routine road
maintenance activities.
The balance between the 6000 and 5091 Preventative road maintenance programmes i.e., reseals,
light rehabilitation, etc. for the balance of 909
4040
Contractor development
Aim to develop contractors over a 3 year period Contractors at various CIBD levels responsible for:
Road reserve maintenance, Reactive maintenance wherein work is allocated on a call-
out basis. Routine maintenance wherein work is planned, Preventative (Medium) maintenance wherein medium
scale rehabilitation projects are conducted, and Preventative (Large) maintenance wherein large scale
rehabilitation projects are conducted. Developmental Feeder system
Developing of contractors from Level 1 through to Level 5. Level 5+ contractors will be used to provide entrance for
Level 1-2.
4141
4242
Reactive Work based on requests
Level 2 contractors.
Routine Work based on planned routine activities.
Level 3-4 contractors.
Preventative(Large)
Large scale work based on a preventative plan.
Level 6+
Road Reserve Road Reserve maintenance
Level 1 contractors.
Preventative (Medium)
Medium scale work based on a preventative plan.
Level 5
Bridge Maintenance Bridge Maintenance Level 6
Level 3-4Traffic Lights & Street Lights Maintenance
Traffic Lights & Street Lights Maintenance
CO
NT
RA
CT
OR
D
EV
EL
OP
ME
NT
Contractor development…
Contracts allocation per region
4343
4444
KwaZulu- Natal
In support of S’hamba Sonke Programme KZN have identified the following anchor projects
Nongoma – Dabhazi – Hlambanyathi - Hlabisa Corridor
Eshowe – Ntumeni – Kranskop – Vryheid corridor Vukuzakhe and Zibambele Programmes Pothole eradication
4545
Maintenance
Maintenance is undertaken over whole road network:
Conserving the higher order roads Rehabilitation and reseals
Preventative MaintenanceRoutine MaintenanceSafety MaintenanceSpecial Maintenance
4646
4747
Pothole Programme Strategy
The Department has implemented a 2 year Pothole Repair Contract commencing in the 2011/2012 financial year to address the backlog of pothole repairs.
A database comprising of 134 contractors ranging from Grade 1 to Grade 7, has been created per the following regions. EMPANGENI LADYSMITH PIETERMARITZBURG DURBAN
4848
Pothole Programme Strategy…
This programme will the following benefits of : A safe road network for the road user; Reducing road accidents; Reducing and minimizing the road maintenance backlog; Maintaining and improving the average road network condition; Reducing pressure on routine maintenance resources due to
improved road conditions; Considerable savings on vehicle operating costs for road users; Temporarily reducing overall costs for maintaining the road
network; Reducing claims against the Department of Transport.
4949
Limpopo
R693,306m PRMG 29 x Preventative Maintenance Projects to the value
of R375,111m are at Award, Contract and SLA stages
Routine Maintenance roads works material, plant and equipment repair amount to R109,627m
Procurement of plant and equipment to the value of R70,834m
R33 (Lephalale) has been allocated R170m and is already at construction stage.
5050
R693,306m PRMG 29 x Preventative Maintenance Projects to the value of R375,111m are at Award, Contract and SLA
stages Routine Maintenance roads works material, plant and equipment repair amount to R109,627m Procurement of plant and equipment to the value of R70,834m R33 (Lephalale) has been allocated R170m and is already at construction stage.
R242,148m PRMG & R74,141m ES) 25 X Household Projects are already at various stages of construction
to the value of R203,636m 7 X Access roads are already at various stages of construction to the
value of R60,560m 20 X learner contractors to be appointed by September 2011 to the
value of R45m Householder contractor development
25xHouseholds projects were implemented in 2010/11 FY and are continued in 2011/12 FY. Additional 2 projects to be awarded.
Financially struggling families are indentified and the bread winners are appointed, provided with tools to do maintenance works on road reserves as well as cleaning of drainage structures.
600 job opportunities are created per project and a total of 15 000 people are currently engaged in this programme.
Beneficiaries work 3 days per week (12 days per month), R70 per day, R840 per month
5151
To improve access roads to public amenities, 7 access road upgrading projects will be implemented during 2011/12 where in 24km will be paved.
Access roads will be maintained through a combined effort of the Department and Municipalities
Pothole patching 11 Routine maintenance and Pothole patching projects are
being evaluated and Contractors are to be on site by end April 2011.
The province aims to respond to potholes within 72 hours after being reported.
5252
5353
Mpumalanga
Area of focus
5454
The 2011/12 Maintenance Grant shall be utilized by the Department under the following programmes in all four (4) regions.
1. Comprehensive Rural Development Programme (CRDP)
2. Emergency Maintenance i.e. Flood damage3. Periodic Maintenance i.e. light reseal and patch
works.4. Routine Maintenance to include Siyatentela5. Rehabilitation of coal haulage routes
5555
Programme Capacity and Effectiveness
Appointment of District Maintenance Consultants to provide technical assistance, supervision and quality control.
Appointment of sixty-six (66) term contractors from CIDB level 1-3 (majority), 4-5 and 6 and above.
Appointment of a Coal Haulage Implementation Manager to manage the rehabilitation of the coal haulage network
Tracking, monitoring and monthly reporting of programme performance by the Department’s PMU.
An effective and operational Roads Asset Management System (RAMS).
Empowerment
General road maintenance has been targeted for Siyatentela with the consideration for up-scaling.
Patch works, crack seal and edge break repairs have been identified for the lower CIDB levels 1-3.
CIDB level 6 and above contractors, also provide technical support to the lower levels.
Maintenance consultants offer induction and training programmes for the contractors.
5858
North West
5959
TARGET km
Number of jobs to be created
Number of contractors to be developed
Number of S3 engineers to be trained towards registration
Improved access to schools, clinics & other public amenities
Rehab of high vol. roads
75
503
65
4 26
Maintenance of high vol. poor to very poor roads
23
41
15
1 6
Upgrade/ construction of access roads
103
1,131
44
7 22
Maintenance of access roads
72
449
16
3 8
Pothole repairsProvince
wide (250km)
126
8
- -
6161
Northern Cape
The Northern Cape Province is allocated R308 760 m with a top up of R 51 090 of equitable share.
Value of Projects
Value of Projects
PRMG Eq. Share
R’ 000 R’ 000 Northern
Cape 31 359 850 31 308 760 51 090 1 568 741.1
Province No of Existing Projects
Value of Existing Projects
No of Projects
Submitted
No of Jobs to
be Created
No of FTE Jobs
F
All the projects are aimed to alleviate poverty in the Northern Cape through S’hamba Sonke program.
Click to edit the outline text format Second Outline
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Outline Level
Fifth Outline Level
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Eighth Outline Level
Ninth Outline LevelClick to edit Master text styles Second level
Third level Fourth level
Fifth level
Northern Cape Projects
Job creation projects Hotazel – Vanzylsrus Jooste Eiland Karakoel
Routine maintenance - Uap Road phase 2
Re-gravelling RM Regravelling DR3300 Witsand RM Regravelling MR950 Dithakong RM Ashkam - Van Zylsrus
Reseal Upington - Ashkam Reseal of Williston - Calvinia
Routine maintenance projects on tender Kuruman D310 - Dithakong Kuruman D325 - Mapiniki Colesberg- Norvalspond Phillipstown - Hanover R 600 (Richmond - EC border) Postmasburg - Kathu Prieska - Spitskop Steinkopf Base repair Williston - Fraserburg Louisvale - Kanoneiland
To further enhance The S’HAMBA SONKE PROGRAMME, Northern Cape will embark on the intensive programme of contractor development which will includes pothole repair programme.
7 – 9 Contractors of CIDB grade 2 - 6 will be appointed for three years programme for routine roads maintenance for 864 km’s. The total kilometers will run through 28 towns with local employment of more than 300 people.
6464
Western Cape
Where Monies are invested
Location Expenditure 2011/12 (R’000)
Cape Winelands 86,000
Eden 85,438
Central Karoo 26,500
Overberg 56,952
Cape Metro 10,124
West Coast 146,712
Grand Total 411,726
How Monies are Invested
Deliverable Total
Blacktop Patching : Pothole Repairs (m2) 22,500
Condition Improvement : Gravel road (km) 271
Condition Improvement : Surfaced road (km) 37
Job Opportunities (100 Person Day) 1109
Regravelling (km) 357
Reseal : Surfaced road (km) 181
Reseal : Surfaced road (m2) 1,545,143
Routine Road Maintenance (km) 32,000
Phase 1 Contractor development : Contractors at CIDB Level 1 – 3 are upgraded to CIDB
level 4 Phase 2: CIDB Contractor Development
Contractors at CIDB Level 4 are upgraded to CIDB level 6
CIDB Documentation and COLTO Specifications are used for both Phase 1 and 2 contracts
The appointment of sub-contactors (Level 1 to 4) are part main contractor’s obligations
Unemployed locals are placed on NQF level 2 learnerships
Procurement from local black businesses
Phase 1 Contractor development : Contractors at CIDB Level 1 – 3 are upgraded to CIDB level 4
Phase 2: CIDB Contractor Development Contractors at CIDB Level 4 are upgraded to CIDB level 6 CIDB Documentation and COLTO Specifications are used for both Phase 1 and 2 contracts The appointment of sub-contactors (Level 1 to 4) are part main contractor’s obligations Unemployed locals are placed on NQF level 2 learnerships Procurement from local black businesses
Training providers identified/ funded by Construction CETA Projects are EPWP compliant.
Department of Public Works pay stipends to learners Regional Offices manage, finance and supervises
the contracts Steering Committee represented by CETA, EPWP,
DRE, SAFCEC, Training Providers and Contractors representatives
Area Managers/Route Managers/Graduates – Provide Supervision and Quality Control, Measuring, Certification of Payment Certificates
Training providers identified/ funded by Construction CETA Projects are EPWP compliant.
Department of Public Works pay stipends to learners Regional Offices manage, finance and supervises the contracts
Steering Committee represented by CETA, EPWP, DRE, SAFCEC, Training Providers and Contractors representatives Area Managers/Route Managers/Graduates – Provide Supervision and Quality Control, Measuring, Certification of Payment Certificates
Roll-out Plans for Zimbambele
Creating employment through Capital and Maintenance Contracts
3 to 12 FTE’s per million spent Contractor Development Contracts
12 FTE’s per million spent Emergency Works/ Tradeworld
4 FTE’s per million spentGenerally good access to these facilities in the Western Cape
Adequate vehicular access, even in rural areas. Access Roads are maintained as part of normal routine maintenance
programme Access roads are provided as part of regional development programmes.
Pothole Repairs Plans
Pothole repairs are done as part of routine Road Maintenance Programs
Reactive Maintenance Policy is that all potholes are repaired within 24 hours of reporting
Preventative Maintenance Program Dedicated Route Patrols to identify defects and do on the spot
emergency repairs Crack Seal Program Edge Break Repairs Program Rutting Repair Program Accident Damage
Pothole repairs are undertaken by District Municipalities as Implementing Agents Departmental Maintenance Teams Periodic Maintenance Contracts Routine Maintenance Contracts
Performance Measurement Blacktop patching performance measured on an annual basis.
Shova Kalula Bicycle Programme
Click to edit the outline text format Second Outline
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Fifth Outline Level
Sixth Outline Level
Seventh Outline Level
Eighth Outline Level
Ninth Outline LevelClick to edit Master text styles Second level
Third level Fourth level
Fifth level
Approach to demand determination
Demand estimation Nationwide surveys Interviews Secondary data
Sample unit: households (all segments included)
Sampling method: Probability-proportional-to-size
Sample size Sample size: 1 067 households 30 clusters 35 surveys per cluster
7272
Spatial distribution of clusters
7373
Demand estimation
7474
Households in South Africa (2010): 13 million
Propensity to buy a bicycle: Rural: 55.0% Urban: 55.3%
Bicycle ownership per household: Rural: 1.36 Urban: 1.35
Current Market Gap: 7.9 million bicycles
Annual Increase: 200 000
Market size over 10 years (potential demand): 9.5 million
Market penetration rate: 16.7%, i.e. about 1.6 million over 10 years (real demand)
Annual production required: 162 000 bicycles Monthly production: 13 500 bicycles
Industry overview
Interviews conducted with local bicycle industry, local manufacturing industry and foreign equipment manufacturers Bicycle industry:
Bicycle manufacturing industry is not established in SA, but is possible to set up
Possible to manufacture : frame, handle bar, seat post, pedal arms, saddle, mud guard
Before manufacturing, need to establish assembly and distribution channels
Manufacturing industry:
Possible to manufacture: almost everything but tires,
chains and bolts
The price would not be as low as imported parts, but
would still be competitive
Cost-efficiency could be achieved through small re-
design of component
Concept investigated: Setting up assembly plant/s using
imported components and distribution networks
Manufacturing of selected components locally
7575
Assembly plant development concept
Three assembly plants:
Location determinants: Availability of industrial space land and costs (rental) Access to basic services and infrastructure Proximity to labour
Set up costs:
7676
Plant Throughout Size of the facility Total spaceKZN plant 4 500 bicycles pm 3 400 m2 4 500 m2Eastern Cape plant 3 000 bicycles pm 3 000 m2 4 000 m2Gauteng plant 6 000 bicycles pm 3 800 m2 5 000 m2
Options Gauteng KwaZulu-Natal Eastern Cape TOTAL
Build option R 15 437 377 R 13 437 889 R 11 986 343 R 40 861 609
Rent option R 1 549 104 R 949 578 R 898 051 R 3 396 733
Financial feasibility – Gauteng plant example
Ownership
Grant for CAPEX Loan for CAPEX
IRR at NPV≥0
NPV at 12% discount rate
IRR at NPV≥0 NPV at 12% discount rate
10-year period
PPP 34% R 20.7 ml 48% R 37.9 ml
Private 24% R10.7 ml 40% R 24.7 ml
5-year period
PPP ≤0% - R 4.3 ml 14% R 0.9 ml
Private ≤0% - R7.3 ml ≤0 - R 2.9 ml
7777
Assembly plant – good business venture if it is a long-term activity
Most profitable – PPP using a loan
Manufacturing industry overview
Project-related industries : Fabricated metal products manufacturing
5.7% of the manufacturing industry Utilisation capacity – 73.8% and declining due
to insufficient demand Plastic products manufacturing
2.7% of the manufacturing industry Utilisation capacity – 81.7% and declining due
to insufficient demand
7878
Local manufacturing companies have the capacity and capabilities to manufacturer selected components for bicycles
Bicycle manufacturing potential
7979
Manufacturing: Estimated Start-Up Costs and Employment Benefits
8080
Benefits: New industry development Establishment of new SMMEs Skills development Poverty alleviation
Groups Clusters Estimated set-up costs
Job creation potential
Expansion of existing facilities
Non-tubular steel comp. manufacturing R3 ml – R15 ml Up to 15
Fabricated tubular comp. manufacturing R5 ml Up to 4
Plastic components manufacturing R3 ml – R10 ml Up to 10
Creation of new businessesFrame and weldingPowder coatingReflector assemblyRims manufacturing
R12 ml- R14 ml Up to 18
R2 ml – R8 ml Up to 10
R0.1 ml Up to 12
R0.7 ml Up to 4
R25 ml – R53 ml Up to 73
Synthesis
8181
Demand: Real demand – 1.6 ml bicycles over 10 years Latent demand – below 8 ml bicycles over 10 years
Development concept (to satisfy real demand only): Establish assembly and distribution channels
Three assembly plants Manufacture components locally
Establish new companies for frame manufacturing and powder coating
Use existing companies for components that require machining, pressing or moulding
Synthesis cont.
Estimated costs and benefits
In future, capacity could be expanded to: Target latent demand Target other types of bicycles (sport and recreation)
8282
Facility Costs Job creation benefits
Assembly plants R3.4 ml - R41 ml Up to 280 jobs
Manufacturing processes
R25 ml – R53 ml Up to 73 jobs
Rail Rolling Stock Acquisition Programme
Forecast commuter rail volumes & Market engagement indicate:
New Fleet requirement 7224 procurement at ~ 360 coaches per year for two x 10 year contracts
Creating~65 000 direct and indirect jobs
Total NPV R100bn including maintenance, depots and risk for the 20 year period
Medium term procurement will allow local capability to evolve to 65% of the value of a coach produced locally
8484
The Programmatic procurement will result in:
Context
65 % local content prescribed in the medium term for Opex and Capex expenditure.
Contribute positively towards job creation within the South African economy, amounting to an estimated 65 992 new employment opportunities, over the entire project lifecycle of 20 years
13 226 employment opportunities being created during the Opex phase of the project and 52 766 employment opportunities during the Capex phase of the project
Total Job Creation
Total economy wide impact of capex and opex on employment
Opex Capex Total
Total employment created (no. of jobs) 13 226 52 766 65 992
Direct impact 6 217 21 675 27 892
Indirect effect 2 701 18 083 20 784
Induced impact 4 308 13 007 17 316
Skilled and Unskilled Categories
Total economy wide impact of capex and opex on employment
Opex Capex Total
Total employment created (no. of jobs) 13 226 52 766 65 992
High Skilled 1 154 4 312 5 466
Skilled 3 893 17 321 21 214
Unskilled 4 970 19 543 24 563
Informal 3209 11 540 14 749
OPEX Phase
During the Opex phase more than 40% of employment opportunities are expected to be created within the “Transport” sector. This is closely followed by: Wholesale and Retail trade “sector (15.8%) Business services” (11.8%) and Community, Social and Personal services”
(9.6%).
Employment sector break-down: Top 20 sectors -OPEX
0.7% 0.8% 0.8% 0.9% 0.9% 1.1% 1.2% 1.3% 1.3% 1.3% 1.5% 2.0% 2.0% 2.2% 2.2%4.1%
5.8% 6.4% 7.3%
49.3%
0%
10%
20%
30%
40%
50%
60%
Bevera
ges
& tobacco
Cate
ring &
accom
modatio
n
serv
ices
Basi
c c
hem
icals
Oth
er tr
ansp
ort
equip
ment
Paper &
paper
pro
ducts
Oth
er chem
icals
& m
an
-m
ade fib
res
Medic
al,
denta
l &
oth
er
health
& v
ete
rinary
serv
ices
Build
ing c
onst
ructio
n
Ele
ctr
icity
, gas
& s
team
Agricultu
re, f
ore
stry
& f
ishin
g
Com
munity
, socia
l &
pers
onal s
erv
ices
Moto
r vehic
les,
part
s &
access
ories F
ood
Com
munic
atio
n
Oth
er m
inin
g
Coke &
refined p
etr
ole
um
pro
ducts
Fin
ance &
insu
rance
Whole
sale
& reta
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ade
Busi
ness
serv
ices
Tra
nsp
ort
& s
tora
ge
Pecenta
ge s
plit
of
tota
l em
plo
ym
ent
CAPEX Phase
During the capex phase the project majority of the 52 766 total employment opportunities are expected to be created within the “Wholesale and Retail trade “sector (21.1%).
Other sectors also largely contributing to these employment opportunities includes the following: Catering and accommodation services (20.6%) Community, Social and Personal services
(13.8%). Business services (10.4%) and Building and construction (8.6%
Employment sector break-down: Top 20 sectors -CAPEX
1.4% 1.5% 1.5% 1.6% 1.7% 1.9% 2.0%2.2% 2.3% 2.5%
3.0%
3.8%
5.4%5.9%
6.4% 6.6%
7.5%7.9%
9.1%
11.4%
0%
2%
4%
6%
8%
10%
12%
Oth
er
ind
ustr
ies
Ele
ctr
icity, g
as &
ste
am
Oth
er
ch
em
icals
& m
an
-mad
e
fib
res
Co
ke
& r
efi
ne
d p
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ole
um
pro
du
cts
Wate
r su
pp
ly
Co
mm
un
icatio
n
Ele
ctr
ical m
ach
ine
ry
Oth
er
min
ing
Wo
od
& w
oo
d p
rod
ucts
Ag
ricu
ltu
re, fo
restr
y &
fis
hin
g
Fo
od
Co
mm
un
ity,
so
cia
l &
pe
rso
nal
se
rvic
es
Mo
tor
ve
hic
les, p
art
s &
acce
sso
rie
s
Tra
nsp
ort
& s
tora
ge
Fin
an
ce
& in
su
ran
ce
Fu
rnitu
re
Bu
ildin
g c
on
str
uctio
n
Wh
ole
sale
& r
eta
il tr
ad
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Bu
sin
ess s
erv
ice
s
Cate
rin
g &
acco
mm
od
atio
n
se
rvic
es
Pe
rce
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ge
sp
lit o
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tal e
mp
loym
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t
Other Transport Sector Job Creation Initiatives
SANRAL Gauteng improvement project to create 20 000 jobs N1/N2 Wine lands project to create 6000 jobsCBRTA Law enforcement ,31 Senior Road Transport Officers
& 160 Road Transport Inspectors to be recruited.SAMSAS Partnered with industry to place 36 cadets in 4 small
vessels, the project is funded by TETA Students coming from the SAMSA Centres of
excellence are absorbed by Transnet and International organisations that has their own fleet.
Other Transport Sector Job Creation Initiatives
Limpopo 2276 people are on the Road sections project, 16200 households conducting bush clearing, PWP project 24 people are trained on public administration programme
KZN Province New Venture Creation – 63 people are trained in the Vukuzakhe
Association contractors in all KZN regions, service provider by RMA consulting.
Training 600 unemployed on road traffic transportation forums
Eastern Cape Repair of portholes, road pavement rehab and road markings 126 unemployed graduates with appropriate/ relevant National
Diplomas and Degrees are absorbed for period 12 months
Other Transport Sector Job Creation Initiatives…
Conclusion
Conclusion
In view of the foregoing, it is hereby recommended that the Portfolio Committee: note the presentation,note and the skills development plan of the
Department,support job creation initiatives of the
Department and the sector as part of the implementation of Government’s New Growth Path, and
note progress made in the implementation of these initiatives.