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PRESENTATION ON NEW GROWTH PATH, SKILLS DEVELOPMENT & JOB

CREATION IN THE TRANSPORT SECTOR

21 JUNE 2011

DEPARTMENT OF TRANSPORT

PORTFOLIO COMMITTEE ON TRANSPORT

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CONTENTS Background Contribution to New Growth Path & Industrial Policy

Action Plan S’hamba Sonke – Moving Together Shova Kalula Rolling Stock IDC, DTI & DOT Initiative Green Economy

Skills Development SOEs – Skills Development & Job Creation Conclusion

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BACKGROUND NEW GROWTH PATH (NGP) Govt has made commitment in the NGP, which

envisages the creation of 5 million jobs in the next 10 years (by 2020), to:

Identifying areas where job creation is possible on a large scale

Develop policy package to facilitate job creation

INDUSTRIAL POLICY ACTION PLAN (IPAP) The 2010/11– 2012/13 IPAP2, was launched in

February 2010 IPAP2 2011/12-2013/14, released in February 2011 is

the next version of the plan which is an integral component of the New Growth Path

The plan identifies opportunities and constraints in different sectors & sets out key action plans for each identified sector. Transport Sector is one of the important sectors to contribute to IPAP2

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CONTRIBUTION TO NEW GROWTH PATH & IPAP 2

ROLLING

STOCK

SHOVA

KALULA

NEW GROWTH PATH

INDUSTRIAL POLICY ACTION

PLAN

IDC, DTI & DOT

INITIATIVE

GREEN

ECONOMY

KEY ACTION PROGRAMMES

S’HAMBA SONK

E

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S’hamba sonke – movingtogether

BUDGET

Allocated budget for the next 3 years is R22 billion

EMPLOYMENTCREATION

The programme is expected to create 68 675 jobs

EMPLOYMENT CREATION CONTRIBUTION BY PROVINCE

Budget Allocation for 2011/2012 is R6.4billion

Business plans supported by all MEC’s have been received from all provincesJob creation contributions by Province is as follows:

55

KZN

EC Mpumalanga

Gauteng

Limpopo

Free State

WC

NC NW

22 278

20 736

8 346

3 800

4 432

5 693

597

741

2 142

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SHOVA KALULA

OBJECTIVE

Integrate cycling into public transport system

INTERVENTIONS JOBS CREATION

Rollout 15 000 bicycles by 2012/13 and 2013/14

Promote cycling as a low cost mobility solution targeting scholars, women and farm workers

Create job by establishing micro businesses

Finalise NMT policy , standards and regulationsNMT units established & budget at provincial levelPromote cycling by localizing manufacturing plantDevelop NMT infrastructure in municipalities Inclusion of NMT in Road Traffic Act Establish 20 Shova Kalula micro businesses to sustain the projectsEstablish local bicycle manufacturing plantDevelop dedicated NMT infrastructure in 5 metros

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Rolling stock (1)

BACKGROUND

PRASA’s New Rolling Stock Programme is estimated to cost R97 billion over the next 18 yearsDelivery of 1st batch of trains is expected during the 2014/15 financial years

PRASA shall use its investment programme in rolling stock & infrastructure upgrades to contribute to the goal of job creation

Companies that play an active part in creating jobs & training technicians will be given incentives to employ more labour and given more coaches in 2011/12-2013/14 MTEF period

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Rolling stock (2)

JOB CREATION

The 2011 Budget from Govt. allocates R1.4 billion over the baseline for capital projects over the next 3 years. From this budget, R1.4 billion is for Signaling Programme while R350 million is for Rolling Stock

Capital investment allocations to PRASA is R19.5 billion over the 3 year MTEF periodThe capital investment allocations earmarks to create 5000 new jobs over the short term

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Idc, dti & dot initiative

LOCAL CONTENT

IDC, DTI & DOT are working on a project intended at localising the production of buses, trucks and minibuses

INTERVENTIONS

DOT commits to facilitate rollout of the Integrated Public Transport Networks (IPTN) by consolidating the procurement process of metros and municipalities to create sustainable volumes and capacity for local manufacturing IPAP clearly indicates that labour-intensive employment areas like the manufacturing industry are criticalEnhance rollout of BRTs and other subsidised contracts in order to forecast future demandFacilitate buy-in from local bus & taxi operators by advocating for brand diversification

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Green economy (1)

BACKGROUND

The Climate Change imperatives are forcing the Transport Sector to go green. There are significant opportunities to develop new ‘green’ and energy efficient industries in the transport sector, i.e., switch to public transport & rail freight, use more efficient vehicles, build more compact mixed-income, etc.

Less carbon intensive forms of transport and infrastructure and energy efficiency will result to the creation of green jobs

Use of renewable energy such as waste, biofuels, solar and wind energy is encouraged as well as disaster resilient infrastructure that will withstand the impacts of Climate Change and other forms of hazards

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Green economy (2)

STATUS QUO

No Large scale production of biofuels is taking place at the moment

IDC is currently developing companies who produce biogas from crops, animal manure, sewage sludge and municipal waste

Gauteng Province & Taxi Industry launched a green vehicle pilot project which introduced flexible fuel vehicles that can run on both Liquid Petroleum Gas & gasoline. The 1st Phase is running approximately 70 taxis in the provinceOn the whole, the production of biofuels has enormous potential for sustainable job creation upstream and downstream

Transport is the 2nd major culprit after energy for Green House Gas Emissions

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Green economy (3)

INTERVENTIONS

DOT supports the initiatives for sustainable production of alternative fuels. DOT will have further discussions and information exchange with relevant Departments and/or institutions

DOT’s involvement would be on contracted public transport services because it is unfeasible to dictate and regulate the procurement processes of non-subsidised private operators

DOT will ascertain current & future fleet requirements to determine the demand side for establishment of manufacturing plant

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Green economy (4)

INTERVENTIONS

South Africa will host the UN Climate Change Conference (COP17) in November 2011, Durban. DOT is actively involved at the Inter-Ministerial Level in preparing for SA’s negotiating position and in contributing to our own country’s mitigation commitmentsDTI supported by DOT will work on the provision of appropriate support to encourage local manufacturing Electric Vehicles & related components-An estimated 160 000 direct jobs in ten years are expected

RTMC has a target of coordinating testing of 500 000 vehicle for gas emission during the current financial year

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SKILLS DEVELOPMENT

KEY AREAS

OVERVIEW

INTERNAL FOCUS FOCUS

EXTERNAL FOCUS FOCUS

KEY PROGRAMMES

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DOT Skills Development Strategy is aimed at responding to various legislative mandates including but not limited to New Growth Path, IPAP 2, HRDSA, Youth and Rural Development Strategy

DOT & the sector aims to address issues of decent work, job creation and formulate partnerships with High Education Institutions and others

DOT ensures coordination and management of various other staff interventions aimed at improving talent management and organizational performance

DOT Skills Development Strategy is aimed at responding to various legislative mandates including but not limited to New Growth Path, IPAP 2, HRDSA, Youth and Rural Development Strategy

DOT & the sector aims to address issues of decent work, job creation and formulate partnerships with High Education Institutions and others

DOT ensures coordination and management of various other staff interventions aimed at improving talent management and organizational performance

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DOT like all other Government Departments was required to participate in an intensive HR connect/ skills audit process that focused at 8 occupational categories as per gender , disability and age

The process was aimed at identifying personal and organizational competencies required at a strategic, operational as well as at an individual level and the 1st phase was completed during 2011

65% of the total number of 530 staff participated in the audit

The outcome of the assessment served as the basis for the development of the overall Departmental training plan/ workplace skills plan

DOT like all other Government Departments was required to participate in an intensive HR connect/ skills audit process that focused at 8 occupational categories as per gender , disability and age

The process was aimed at identifying personal and organizational competencies required at a strategic, operational as well as at an individual level and the 1st phase was completed during 2011

65% of the total number of 530 staff participated in the audit

The outcome of the assessment served as the basis for the development of the overall Departmental training plan/ workplace skills plan

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Transport technology and infrastructure programmes

Freight logistics Transport Economists (Econometrix), modelling

and Data Analysts Ports Management, Engineering and Maritime

Law Rail and Transport Planning Advanced Project and Programme Management Financial Management Transport Safety and Security Monitoring and Evaluation

Transport technology and infrastructure programmes Freight logistics Transport Economists (Econometrix), modelling and Data Analysts Ports Management, Engineering and Maritime Law Rail and Transport Planning Advanced Project and Programme Management Financial Management Transport Safety and Security Monitoring and Evaluation

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IDENTIFIED SCARCE &CRITICAL SKILLS (1)

Occupations Reasons for scarcity Projected number of staff

required

Transport Economist (Transport econometric and modeling)

Scarcity of the relevant technical skills in the market

10

Civil Engineering and Built Environment (norms and standards)

Managerial capacity required within the environment

10

Project Managers Competition with private sectors 20

Financial Economic Analyst

Competition with private sectors Not identified

Urban and Rural Transport Planner

Lack of qualified professionals 12

Aviation professionals Labour market deficiency in the relevant profession and lack of adequate training institutions

10

IDENTIFIED SCARCE &CRITICAL SKILLS (2)

OCCUPATIONS REASONS FOR SCARCITY Projected number of staff required

Rail and Road accident and incident investigators

Lack of adequate number of professionals

21

Maritime professionals

Labour market deficiency in the relevant profession and lack of adequate training institutions

10

Transport Economic Regulators

Lack of academicprogrammes within thelocal training institution.

Insufficient experiencedprofessionals in the field

10

TOTAL 103

Status on modal specific Training (1)

Mode Training priorities Current status

No trained

Roads Contract document

SADC Road Traffic signs Manual

Environmental Management for Roads

Yes

No

No

1

-

-

Maritime Port Management/shipping management

Port Engineering

Maritime law

Yes

No

Yes

2

-

4

Rail Rail Planning and operations

Transport Modeling

Public Transport and transport economics

Integration of land use and transport economics

Yes

No

Yes

No

4

-

18

-

Status on modal specific Training (2)

Mode Training priorities Current status

No trained

Rail Project assessment

The Management of Continuously Welded Rails Course

Introductory to multi-disciplinary concepts in railway engineering

No

No

No

-

-

-

Generic Transport related programmes

Transport Safety and security programmes

Transversal programmes

Financial management (basic, intermediate & advanced)

Corporate governance

Effective service delivery/improving service delivery

Yes

Yes

Yes

4

16

10

Status on modal specific Training (3)

Mode Training priorities Current status

No trained

Transversal Programmes

Project Management (Basic, Intermediate & Advanced)

Monitoring and Evaluation)

Yes

Yes

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20

Demographical training data up to end February 2011

Race Male Female Disability

African 130 166 N/A

White 1 8 N/A

Coloured 3 2 N/A

Indian 3 5 N/A

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OBSERVATIONS

The skills development environment lacks accurate national labour market information system

Lack of occupational forecasting undertaken by research agencies or Government Departments

Sector Skills Plans have huge gaps in terms of labour market information

Misalignment between Sector Skills Plans, Workplace Skills Plans and Employment Equity Plans

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EXTERNAL FOCUS – STATUSQUO ANALYSIS

According to Transport Sector Skills Plan of 2010-2015, the transport sector has employed 767 000 employees. 35 226 (4.6%) were trained across various modes

The overall employment composition across various sub-sectors is as follows: Railway = 4.5% Roads = 59% Air Transport = 2.5% Maritime = 0.5%

50% of transport employees fall within the Plant and Machinery as well as at elementary occupations

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KEY PROGRAMMES (1)

Some of the Skills Development initiatives are:

DOT in collaboration with the stakeholders is in the process of identifying the number, types and levels of jobs (decent jobs) to be created per sub-sector

16 Previously Disadvantaged Youths have been put through Prague Scholarship Programme (Czech)-The current investment is R2 090 million

DOT is supporting Centers of Development which comprises 13 tertiary institutions to the value of R9.1 million – All these institutions provide transport related courses

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KEY PROGRAMMES (2) Finalise the accreditation processes around

the integration of Transport Curriculum at FET level by October 2011

Put in place E-learning policy by September 2011

Recruit and place 5% of the total establishment as interns and learners to address issues OF unemployment particularly youths. Priority areas will be Rail and Roads sectors

The Integrated Transport Sector B-BBEE Charter sets average of 3% target on skills development investment directed to Black People and & 50% of this target is dedicated to Black Women. The BEE targets are to be achieved in the next 5 years (by 2015)

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KEY PROGRAMMES (3) DOT in collaboration with the Department of

Basic Education will introduce Road Safety Programmes as part of the Life Skills Curriculum which will produce 10 000 new drivers with appropriate skills to become safer drivers

South Africa needs to build its ship register which will provide an opportunity to create sustainable jobs.

According to SAMSA, 36 000 seafarers are required for deployment at sea, currently the Maritime Sector has 1 800 seafarers. This is a scope for sustainable jobs creation

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SOEs - SKILLS DEVELOPMENT &JOB CREATION (1)

Rtmc acsa sanral230 Learners are put through Learnerships Training Programme on the implementation of SANRAL Open Tolling System

16 Drivers trained on professional driver training programme & participated in the International UICR Competition

163 Schools reached on Participatory Education Campaign

B-BBEE is implemented based on targets set by the Board

The earmarked total amount spend on EPWP is R2 555 million

R132 million spent on projects related to rural access & job creation

With respect to expenditure on projects. 77% of total spend of work to be contracted to Black SMMEs on RRM projects

38 interns employed under the Internships Programme

37 bursaries awarded to external students

98 Scholarships awarded to school students

A budget of R2 million for 2011/2012 is set aside for scholarship scheme

CONTRIBUTION OF SOEs ARE AS FOLLOWS:

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SOE’s - SKILLS DEVELOPMENT &JOB CREATION (2)

SAMSA PRASAThe South African Maritime Training Academy (SAMTRA) is administering the CADET Training Programme on behalf of SAMSA. SAMSA’s surveyors are drawn from this pool

A total of 3 439 Seafarers certificates were issued

Discretionary spend as at end of December 2010 stands at 71.5% to B-BBEE suppliers

PRASA has set a target of 5% of Capex spending towards establishing Black and Women-owned enterprises in rail engineering

PRASA will establish a new Centre of Excellence to ensure it trains a large number of artisans in critical technical grades

A new strategy for “Women in Rail” initiative is implemented & sets aside projects to the value of R500 million over 3 years targeted at Black Women-owned enterprises entering the rail engineering industry

CONTRIBUTION OF SOEs ARE AS FOLLOWS:

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CONCLUSION

DOT notes that major programmes on skills development and job creation by both DOT & SOEs are not coordinated uniformly

Reporting on skills development & job creation are not reported in a standard way

In view of this, one of my Division & relevant capacity will be mandated to ensure there is coordination and proper reporting by all

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THANK YOU